DIRECTV 

interest (50) (109) (360) (348)
Interest income 1 -- 1 --
Income taxes paid (502) (310) (502) (311)
---------------------- ------ ------ ------ ------
Subtotal - Free Cash
Flow 576 527 1,258 1,498
Add Cash Paid For:
Property and
equipment 154 131 265 240
Subscriber leased
equipment -
subscriber
acquisitions 151 118 325 278
Subscriber leased
equipment -
upgrade and
retention 119 45 230 130
Satellites 55 82 108 116
------ ------ ------ ------
Net Cash Provided by
Operating Activities $1,055 $ 903 $2,186 $2,262
===== ===== ===== =====

(2) and (3) - See footnotes above
----------------------------------------------------------------------
* Pre-SAC Margin, which is a financial measure that is not determined
in accordance with accounting principles generally accepted in the
United States of America, or GAAP, is calculated for DIRECTV U.S. by
adding amounts under the captions "Subscriber acquisition costs" and
"Depreciation and amortization expense" to "Operating Profit" from the
Consolidated Statements of Operations and subtracting "Cash paid for
subscriber leased equipment - upgrade and retention" from the
Consolidated Statements of Cash Flows. This financial measure should
be used in conjunction with GAAP financial measures and is not
presented as an alternative measure of operating results, as
determined in accordance with GAAP. DIRECTV management use Pre-SAC
Margin to evaluate the profitability of DIRECTV U.S.' current
subscriber base for the purpose of allocating resources to
discretionary activities such as adding new subscribers, upgrading and
retaining existing subscribers and for capital expenditures. To
compensate for the exclusion of "Subscriber acquisition costs,"
management also uses operating profit and operating profit before
depreciation and amortization expense to measure profitability.

DIRECTV believes this measure is useful to investors, along with GAAP
measures (such as revenues, operating profit and net income), to
compare DIRECTV U.S.' operating performance to other communications,
entertainment and media companies. DIRECTV believes that investors
also use current and projected Pre-SAC Margin to determine the ability
of DIRECTV U.S.' current and projected subscriber base to fund
discretionary spending and to determine the financial returns for
subscriber additions.
----------------------------------------------------------------------



DIRECTV U.S. Non-GAAP Financial Measure SAC Calculations
(Dollars in Millions, Except
Per Subscriber Amounts)
(Unaudited)
DIRECTV HOLDINGS LLC (DIRECTV U.S.)
----------------------------------------------------------------------------
SAC Calculation
----------------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ --------------------
2013 2012 2013 2012
------------ ---------- ----------- -------
Subscriber acquisition costs
(expensed) $ 594 $ 614 $ 1,223 $ 1,260
Cash paid for subscriber
leased equipment -
subscriber acquisitions 151 118 325 278
------------ ---------- ----------- -------
Total acquisition costs $ 745 $ 732 $ 1,548 $ 1,538
=== ======= ====== ======= ======
Gross subscriber additions
(000's) 839 863 1,732 1,804
Average subscriber
acquisition costs - per
subscriber (SAC) $ 888 $ 848 $ 894 $ 853
---------------------------- --- ------- ------ ------- ------


CONTACT: DIRECTV
Media Contact:
Darris Gringeri, 212-205-0882
or
Investor Relations:
310-964-0808

SOURCE: DIRECTV
Copyright Business Wire 2013

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(END) Dow Jones Newswires
August 01, 2013 07:00 ET (11:00 GMT)