DIRECTV 2012 Annual Report Download - page 67

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DIRECTV
Operating profit. Operating profit increased in 2012 as compared to 2011, Income tax expense. We recognized income tax expense of $1,465 million in
primarily due to higher operating profit before depreciation and amortization, 2012 and $1,348 million in 2011. The effective tax rate for 2012 was 33.0%
discussed above, partially offset by higher depreciation and amortization expense compared to 33.8% for 2011. The lower effective tax rate was primarily attributable
resulting from an increase in basic and advanced product receivers capitalized due to to a benefit recorded for the recognition of uncertain tax benefits due to the
the higher gross subscriber additions attained in 2012. expiration of the statute of limitations in federal and foreign tax jurisdictions.
Operating profit margin decreased in 2012 as compared to 2011 due to the Net income attributable to noncontrolling interest. Net income attributable to
lower operating profit before depreciation and amortization margin and higher noncontrolling interest was $28 million in 2012 and $27 million in 2011.
depreciation and amortization expense.
Earnings Per Share
DIRECTV Other Income, Income Taxes and Net Income Attributable to Noncontrolling Earnings per share and weighted shares outstanding were as follows for the
Interest years ended December 31:
Interest income. Interest income was $59 million in 2012 and $34 million in
2012 2011
2011.
(Shares in
Millions)
Interest expense. The increase in interest expense to $842 million in 2012
Basic earnings attributable to DIRECTV common stockholders
from $763 million in 2011 was due to an increase in the average debt balances
per common share .............................. $4.62 $3.49
compared to 2011, partially offset by a decrease in weighted average interest rates.
Diluted earnings attributable to DIRECTV common stockholders
We capitalized interest costs of $24 million in 2012 and $13 million in 2011.
per common share .............................. $4.58 $3.47
Other, net. The significant components of ‘‘Other, net’’ were as follows: Weighted average number of common shares outstanding (in
millions):
2012 2011 Change Basic ....................................... 638 747
(Dollars in Millions) Diluted ...................................... 644 752
Equity in earnings of unconsolidated subsidiaries ....... $131 $109 $ 22
Net foreign currency transaction loss ............... (34) (50) 16 The increases in basic and diluted earnings per share were due a reduction in
Fair value adjustment loss on non-employee stock options . (4) (4) — weighted average shares outstanding resulting from our share repurchase program
Loss on early extinguishment of debt .............. (64) (25) (39) and higher net income attributable to DIRECTV.
Net gain from sale of investments ................. 122 63 59
Other ................................... (11) (9) (2)
Total .................................. $140 $ 84 $ 56
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