Subsequent Events

6 Months Ended

Jun. 30, 2015

Note 12: Subsequent Events

On July 24, 2015, we were acquired by AT&T. Under the merger agreement, each share of DIRECTV stock was exchanged for $28.50 cash plus 1.892 shares of AT&T common stock. DIRECTV shareholders hold an approximate 16% stake in the combined company, based on AT&T's common shares outstanding. Based on AT&T's $34.29 per share closing stock price on July 24, 2015, total consideration paid to DIRECTV shareholders was $47,110 million.

Our assets and liabilities are being appraised, based on third-party valuations and will be recorded in AT&T's financial statements at their respective fair values as of the date of the acquisition, July 24, 2015.


	•	Long-lived assets such as property, plant and equipment valuations will reflect changes in technology, usage, and relative obsolescence and depreciation of the assets.
	•	Debt instruments and investments are valued in relation to current market conditions.
	•	Foreign holdings and operations will be valued using exchange rates as determined by current practice in the countries in which we operate, such as Argentina, Brazil, Venezuela and other countries in Latin America. These valuations could result in significant changes to our historical account balances. For example, our Venezuela subsidiary had bolivar denominated net monetary assets of $595 million, including cash of $629 million, as of June 30, 2015, based on the SICAD exchange rate of 12.8 Venezuelan bolivars per U.S. dollar. When valuing these operations, AT&T may elect an alternative government approved mechanism to exchange Venezuelan bolivars into U.S. dollars, including the SIMADI exchange rate, or other new exchange mechanisms that may emerge. See Note 6 of the Notes to the Consolidated Financial Statements.
	•	Assets and liabilities will also be recorded for other identifiable intangible assets, including customer lists, trade name, and orbital slots. The value of these intangibles will be determined using AT&T's estimates of future cash flows from the existing business.
	•	Other assets and liabilities will be valued based on AT&T's estimates.

After all values have been assigned to assets and liabilities, the remainder of the purchase price is recorded as goodwill.

DIRECTV 10-Q