Search the web
Welcome, Guest
[Sign Out, My Account]
EDGAR_Online

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
DTV > SEC Filings for DTV > Form 10-Q on 8-May-2013All Recent SEC Filings

Show all filings for DIRECTV | Request a Trial to NEW EDGAR Online Pro

Form 10-Q for DIRECTV


8-May-2013

Quarterly Report


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following management's discussion and analysis should be read in conjunction with our management's discussion and analysis of financial condition and results of operations included in our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on February 21, 2013, and all of our other filings, including Current Reports on Form 8-K, filed with the SEC after such date and through the date of this report.

This Quarterly Report on Form 10-Q may contain certain statements that we believe are, or may be considered to be, "forward-looking statements" within the meaning of various provisions of the Securities Act of 1933 and of the Securities Exchange Act of 1934. These forward-looking statements generally can be identified by the use of statements that include phrases such as we "believe", "expect", "anticipate", "intend", "plan", "foresee", "project" or other similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make regarding our outlook for 2013 financial results, liquidity and capital resources.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include economic, business, competitive, national or global political, market and regulatory conditions and the following, each of which is described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2012 or in Part II, Item 1A of this Quarterly Report on Form 10-Q:


Levels of competition are increasing.


We depend on others to produce programming and programming costs are increasing.


Increased subscriber churn or subscriber upgrade and retention costs could materially adversely affect our financial performance.


Our subscriber acquisition costs could materially increase.


DIRECTV Latin America is subject to various additional risks associated with doing business internationally, which include political and economic instability and foreign currency exchange rate volatility and controls.


Our ability to keep pace with technological developments is uncertain.


Our business relies on intellectual property, some of which is owned by third parties, and we may inadvertently infringe patents and proprietary rights of others.


Construction or launch delays on satellites could materially adversely affect our revenues and earnings.


Our satellites are subject to significant launch and operational risks.


The loss of one or more satellites, none of which is currently insured, could materially adversely affect our business and earnings.


Table of Contents

DIRECTV


Satellite programming signals have been stolen and may be stolen in the future, which could result in lost revenues and would cause us to incur incremental operating costs that do not result in subscriber acquisition.


The ability to maintain FCC licenses and other regulatory approvals is critical to our business.


We may have an indemnity obligation to Liberty Media, which is not limited in amount or subject to any cap, that could be triggered if parts of the 2009 transaction between us and Liberty Media or Liberty Media's 2008 Transaction with News Corporation are treated as a taxable transaction.


We rely on network and information systems and other technology and a disruption or failure of such networks, systems or technology as a result of misappropriation of data or other malfeasance, as well as outages, natural disasters, accidental releases of information or similar events, may disrupt our business.


We face risks arising from the outcome of various legal proceedings.


Our strategic initiatives may not be successfully implemented, may not elicit the expected customer response in the market and may result in competitive reactions.


Those and the other factors that are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2012.

Any forward-looking statement made by us in this Quarterly Report on Form 10-Q speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may occur and it is not possible for us to predict them all. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future development or otherwise, except as required by law.

CONTENTS

The following is a discussion of our results of operations and financial condition. This discussion should be read in conjunction with the consolidated financial statements and related notes included elsewhere in this Quarterly Report. Information in this section is organized as follows:


Summary Data


Business Overview


Significant Events Affecting the Comparability of the Results of Operations


Key Terminology


Executive Outlook


Results of Operations


Liquidity and Capital Resources


Contractual Obligations


Contingencies


Certain Relationships and Related-Party Transactions


Critical Accounting Estimates


Table of Contents

                                    DIRECTV

                                  SUMMARY DATA

                                  (Unaudited)

                                                                 Three Months
                                                                    Ended
                                                                  March 31,
                                                             2013            2012
                                                            (Dollars in Millions,
                                                                  Except Per
                                                                Share Amounts)
Consolidated Statements of Operations Data:
Revenues                                                  $     7,580     $     7,046
Total operating costs and expenses                              6,338           5,738

Operating profit                                                1,242           1,308
Interest income                                                    22              12
Interest expense                                                 (217 )          (204 )
Other, net                                                         38              41

Income before income taxes                                      1,085           1,157
Income tax expense                                               (387 )          (416 )

Net income                                                        698             741
Less: Net income attributable to noncontrolling
interest                                                           (8 )           (10 )

Net income attributable to DIRECTV                        $       690     $       731

Basic earnings attributable to DIRECTV per common
share                                                     $      1.21     $      1.08
Diluted earnings attributable to DIRECTV per common
share                                                     $      1.20     $      1.07
Weighted average number of total common shares
outstanding (in millions):
Basic                                                             572             678
Diluted                                                           577             681


Table of Contents

  Add DTV to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for DTV - All Recent SEC Filings
Sign Up for a Free Trial to the NEW EDGAR Online Pro
Detailed SEC, Financial, Ownership and Offering Data on over 12,000 U.S. Public Companies.
Actionable and easy-to-use with searching, alerting, downloading and more.
Request a Trial Sign Up Now


Copyright © 2014 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.