2013 DIRECTV Corporate Social Responsibility Report SHARE OUR VISION



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Transcription:

SHARE OUR VISION

LEADERSHIP 3 3 MESSAGE FROM THE CEO CSR APPROACH 5 6 ABOUT DIRECTV 7 CSR STRATEGY 9 REPORTING PRACTICES 11 CORPORATE GOVERNANCE & ETHICS ISSUES 13 14 EDUCATION Strategy 14 U.S. STEM Programs 15 DIRECTV GOES TO SCHOOL 19 ESCUELA+ 20 22 ENVIRONMENTAL STEWARDSHIP Strategy 22 Energy and Greenhouse Gas (GHG) Emissions 26 Product Efficiency 30 Product Materials and Packaging 33 e-waste and Recycling 34 Operational Waste Management 36 Supplier Sustainability 38 39 CUSTOMER EXPERIENCE 41 DIVERSITY AND INCLUSION Overview 41 Workforce 42 Workplace 44 Marketplace 46 47 TALENT MANAGEMENT Overview 47 Recruitment 48 Development 49 Health and Wellness 52 53 LOCAL COMMUNITY IMPACT Overview 53 DIRECTV Latin America Volunteerism 54 U.S. Volunteerism 56 Skills-based and Pro Bono Volunteerism 59 Contributions 63 Disaster Relief 65 66 ECONOMIC IMPACT COUNTRY PROFILES 67 68 UNITED STATES 74 LATIN AMERICA Argentina 75 Sky Brasil 79 Caribbean 83 Chile 85 Colombia 89 Ecuador 93 Perú 97 Puerto Rico 101 Uruguay 105 Venezuela 109 GLOBAL REPORTING INITIATIVE (GRI) 113 FAQ 121

MESSAGE FROM THE CEO Each day, DIRECTV delivers on our commitment to provide a premium entertainment experience through cutting-edge technology, the best programming and responsive customer service for our 38 million subscribers in the U.S. and Latin America*. As a leading corporate citizen, our commitment extends beyond the entertainment and customer experience because we have a responsibility to the communities we serve, the environment in which we live and the people who put their talent to work for us every day. When these thrive, so does our business. In 2013 we published our first public Corporate Social Responsibility report that outlined our progress for 2011 and 2012 against our strategy to be a socially and environmentally responsible Mike White company. I m pleased to now share this report, Chairman, President and CEO which covers our corporate social responsibility DIRECTV efforts in 2013 and discusses our plans to build on our accomplishments. In 2013 we not only saw record profits and revenues for our company, but we also saw meaningful corporate social responsibility accomplishments, particularly in our target areas of corporate citizenship, environmental stewardship, and diversity and inclusion. We have a responsibility to help improve the communities we serve. Education is key to the future growth of our economy and the success of society at large. DIRECTV contributes knowledge and resources that can be leveraged to enhance education across the Americas, with an emphasis on Science, Technology, Engineering and Math (STEM) in the U.S. In this report, you ll read about the strides we re making to support education through the use of DIRECTV technology to support schools via our DIRECTV GOES TO SCHOOL and ESCUELA+ programs, our sponsorship of online math technology to enhance student learning, professional development for teachers, improved facilities and technology, and more. We ve also focused on volunteerism, and while supporting education initiatives and other communityfocused projects, our employees dedicated more than 32,000 hours on volunteer projects across the Americas in 2013. Another exciting accomplishment in 2013 was our recognition on Bloomberg s Civic 50 list as one of America s most community-minded companies. We have a responsibility to conduct business in a way that respects and supports our environment. In this report, you ll learn how we have reached or exceeded many of the environmental efficiency goals we set in 2011, often ahead of schedule. For example, we surpassed our five-year emissions reduction goal within the first year. Fueled by our successes against our 2011 goals, we ve set ambitious new operating, product and engagement sustainability goals. And we ve coordinated our efforts by realigning our organizational structure and strategy under an enterprise-wide initiative. The result will better equip us to collaborate, test, implement and track our progress against objectives. *Includes approximately 6 million subscribers of SKY Mexico, which is 41 percent owned by DIRECTV LEADERSHIP 3

MESSAGE FROM THE CEO continued We have a responsibility to create and maintain a world-class workplace that attracts diverse top talent and helps them thrive professionally and personally. Engaging a broad spectrum of experience and perspectives is a business imperative in a diverse marketplace. We strive to foster an environment where employees can bring their whole selves to work. So it s encouraging to see our employee engagement increase for the third consecutive year to reach 87 percent. Our diversity and inclusion policies also inform our relationships with our suppliers and millions of customers in the markets we serve. While the results of our efforts thus far have often surpassed our own expectations, there is always room for improvement. We are continually searching for ways to set the bar higher, provide an enhanced entertainment and customer experience, and deliver on our commitment to being a good corporate citizen. We look forward to continuing to update you on our progress. Mike White Chairman, President and CEO DIRECTV LEADERSHIP 4

CSR SHARE OUR VISION That hundreds of volunteers can transform an empty space into a state-of-the-art playground in just six hours. APPROACH

ABOUT DIRECTV DIRECTV is one of the world s leading providers of digital television entertainment services, delivering a premium video experience through state-of-the-art technology, unmatched programming and industry-leading customer service to 38 million customers in the U.S. and Latin America. 37.8 MILLION * CUMULATIVE SUBSCRIBERS Our Footprint (DIRECTV Operations) 28,000+ FULL-TIME EMPLOYEES GLOBALLY 11 U.S. AND LATIN AMERICAN MARKETS 195+ U.S. HD PROGRAMMING CHANNELS HEADQUARTERS El Segundo, Calif. CORPORATE OFFICES United States Denver, Colo. El Segundo, Calif. New York, N.Y. Latin America Buenos Aires, Argentina São Paulo, Brazil Santiago, Chile Bogotá, Colombia Quito, Ecuador Lima, Perú San Juan, Puerto Rico Chaguanas, Trinidad and Tobago Montevideo, Uruguay Caracas, Venezuela BROADCAST CENTERS United States Castle Rock, Colo. Long Beach, Calif. Los Angeles, Calif. Latin America Buenos Aires, Argentina Caracas, Venezuela São Paulo, Brazil CUSTOMER CARE CENTERS United States Boise, Idaho Denver, Colo. Huntington, W. Va. Huntsville, Ala. Missoula, Mont. Tulsa, Okla. * Includes SKY Mexico, which had approximately 6 million subscribers as of 12/31/13 in Mexico, Central America and the Dominican Republic. DIRECTV owns 41 percent of SKY Mexico. All data as of Dec. 31, 2013. Latin America Buenos Aires, Argentina Bogotá, Colombia Cali, Colombia Caracas, Venezuela Santiago, Chile São Paulo, Brazil CSR APPROACH 6

CSR STRATEGY Our vision is to provide customers with the best video entertainment experience inside and outside the home by offering them unique, differentiated and compelling programming through leadership in content, technology and customer service. Corporate citizenship and environmental sustainability are an inherent part of this vision. Responsible, ethical business practices, as well as charitable corporate investments of time and money, contribute to thriving societies, which are necessary to ensure that our business thrives. To this end, we approach corporate social responsibility through our efforts to be a good corporate citizen, a responsible environmental steward and a company with a diverse and inclusive culture that supports the success of our talented workforce. Corporate citizenship means being a good corporate citizen and championing socially responsible business practices to ensure that we are the kind of organization our communities welcome as a neighbor. In particular, we look for ways that our core capabilities in technological innovation can benefit society. Increasingly, these efforts focus on enhancing education across the Americas, with an emphasis on Science, Technology, Engineering and Math (STEM) education in the U.S. DIRECTV volunteers worked with nonprofit KaBOOM! to build a new playground for the Down Syndrome Organization of Southern Nevada. Environmental stewardship is an important aspect of our business. The actions we take to conserve energy and reduce waste not only reduce our footprint, but also enable us to operate a more efficient, cost-effective business both of which positively impact our stakeholders. Our Televisionary * program is charged with driving organizational performance against a robust set of sustainability goals that encompass operations, products and stakeholder engagement. Diversity and inclusion is a cornerstone of our talent management strategy. We seek to foster an inclusive workplace by attracting and retaining top talent who have a broad spectrum of experiences and perspectives and who feel comfortable bringing their whole selves and their ideas to work. *Televisionary is a trademark of Ericsson Television, Inc., and is used with permission. CSR APPROACH 7

CSR STRATEGY continued CORPORATE CITIZENSHIP AND SUSTAINABILITY OVERSIGHT DIRECTV s Corporate Social Responsibility (CSR) Steering Committee is a decision-making body with oversight of our corporate citizenship and sustainability activities in the U.S. and Latin America. Committee membership consists of members of our senior leadership team and key internal stakeholders. The Steering Committee meets twice each calendar year and provides an annual report to the Nominating and Corporate Governance Committee of the Board of Directors on Corporate Social Responsibility at DIRECTV. For corporate citizenship, the Committee is charged with reviewing goals against our business strategy; revalidating focus areas annually and modifying as needed; guiding the development of new signature programs and improving existing ones; and supporting employee engagement and increased CSR transparency. In the area of sustainability, the Committee s responsibilities include reviewing goals against our overall business strategy; integrating sustainability into each business unit; overseeing the development of environmental policies and positions; and evaluating strategic opportunities to reduce our environmental impact. STAKEHOLDER ENGAGEMENT DIRECTV has conducted a comprehensive stakeholder analysis through the lens of corporate social responsibility. The analysis encompassed all stakeholders who are, or can potentially be, involved in furthering our sustainability and CSR initiatives. This analysis also included identifying current means of engagement with each group. We are building upon this work by identifying additional means of engagement for future implementation. Major stakeholder groups include stockholders, employees, customers, dealers, nonprofits and community organizations. We engage these groups through a wide variety of communications. Our participation in CDP reporting, for example, directly targets stockholder engagement. We interact with customers through satisfaction surveys and our customer care centers, as well as through our monthly billing function. Community engagement encompasses surveys, audits of major community programming and direct discussions with organizations with whom we work. CSR APPROACH 8

REPORTING PRACTICES DIRECTV is committed to the regular and transparent reporting of our corporate social responsibility initiatives. This marks our second Corporate Social Responsibility report and follows our inaugural report for 2011-2012, which was published in November 2013. Unless otherwise noted, the data in this report covers the calendar year that ended Dec. 31, 2013, and is limited to wholly or majority-owned DIRECTV operations. All financial data and references are in U.S. dollars unless otherwise noted. Editorial content generally covers subject matter for 2013. We have prepared this report in accordance with the Global Reporting Initiative (GRI) 4.0 core guidelines. Learn more about GRI at www.globalreporting.org. In addition to the GRI framework, report content was determined further through a materiality assessment. An external party conducted this assessment by working with an internal, cross-functional team to compile, review and validate a wide range of issues. These issues were evaluated on their impact to DIRECTV s business and its stakeholders. The following table summarizes the material issues that are included in this report. ISSUE REPORT LOCATION (BY SECTION) Community Development Compliance Customer Experience Diversity & Equal Opportunity Economic Performance Education Electronic Waste Employee Engagement Energy & Greenhouse Gas Emissions Ethical Business Practices Government Relations & Public Policy Advocacy Health & Safety Labor/Management Relations Product Impacts Waste Management Workforce Development Community Impact Corporate Governance & Ethics Customer Experience Diversity & Inclusion Economic Impact Education Environmental Stewardship Talent Management Environmental Stewardship Corporate Governance & Ethics Corporate Governance & Ethics Talent Management Talent Management/GRI Environmental Stewardship Environmental Stewardship Talent Management CSR APPROACH 9

REPORTING PRACTICES continued METHODOLOGY AND ASSURANCE DIRECTV measures its greenhouse gas (GHG) emissions utilizing the guidelines of the Greenhouse Gas Protocol (GHG Protocol), a partnership effort of the World Resources Institute and the World Business Council for Sustainable Development. The GHG Protocol is the most widely recognized international accounting tool to calculate, report and manage GHG emissions. Our inventory of GHG emissions comprises five types of gases. By far the largest component of our emissions is carbon dioxide (CO2), which in 2013 constituted 98 percent of our total GHG emissions. The sources of our CO2 emissions are primarily fossil fuel combustion in boilers and generators, from purchased electricity and from on- and off-road mobile sources. To review the accuracy of our carbon footprint calculations, we retained Deloitte & Touche to perform an independent review of our statement of GHG Emissions. According to their Independent Accountants Review Report: Based on our review, nothing came to our attention that caused us to believe that the Statement of GHG Emissions of the Companies for the years ended December 31, 2013, December 31, 2012, and December 31, 2011 is not presented, in all material respects, in conformity with The Greenhouse Gas Protocol Corporate Accounting and Reporting Standard and the Corporate Value Chain (Scope 3) Accounting and Reporting Standard published by the World Business Council for Sustainable Development and the World Resources Institute. The report can be read in its entirety at http://www.directv.com/cms2/support/directv_statement_of_ Greenhouse_Gas_Emissions_with_Deloitte_and_Touche_R.pdf. CDP REPORTING Transparency and public engagement play a primary role in our CSR strategy. In 2012, DIRECTV became the first U.S. satellite or cable television company to participate in the CDP, which evaluates and grades performance for actions that contribute to climate change mitigation, adaptation and transparency. In 2013, our second year of reporting to the CDP, DIRECTV received a disclosure score of 91 out of 100 and a B performance score on our U.S. emissions performance, placing us significantly ahead of the average CDP score for our industry group. DIRECTV takes pride in its reporting transparency, and in 2013 we received special recognition from CDP as a leader in our industry classification for the breadth of our Scope 3 reporting. You may see our CDP responses here. Previously known as the Carbon Disclosure Project, CDP is an international, not-for-profit organization providing a global system for companies and cities to measure, disclose, manage and share vital environmental information. Investors assessing risk through CDP hold $92 trillion in assets. CSR APPROACH 10

CORPORATE GOVERNANCE & ETHICS As a publicly traded company (NASDAQ: DTV), DIRECTV is committed to the highest levels of transparent and ethical business conduct. The Board of Directors governs the company and is comprised of 12 directors, 11 of whom are considered independent according to company and NASDAQ listing standards. The one executive director serves as Chairman of the Board, as well as the President and Chief Executive Officer of the company. Working closely with the Chairman is the lead director, who chairs the executive sessions of the independent directors. The Board of Directors has three committees. The following table summarizes the membership of these committees and their areas of responsibility. COMMITTEE MEMBERSHIP RESPONSIBILITIES Audit 5 non-executive directors Audit, accounting, risk management, financial reporting, ethics compliance Nominating & Corporate Governance 11 non-executive directors Selection and nomination of Board members, corporate governance guidelines, code of ethics, corporate social responsibility, corporate citizenship, sustainable development including environmental compliance Compensation 6 non-executive directors Oversight of compensation plans We make the following documents available to the public through our Investor Relations website at http://investor.directv.com/corporate-governance/documents-and-charters/default.aspx: Third Amended and Restated Certificate of Incorporation Amended and Restated By-Laws Code of Ethics and Business Conduct Procedure for Handling Ethics Complaints Corporate Governance Guidelines Inspector of Elections Report Related Party Transactions Policy Securities Transaction Insider Trading Policy Committee Charters CSR APPROACH 11

CORPORATE GOVERNANCE & ETHICS continued ETHICS All DIRECTV employees, officers and directors are expected to adhere to our Code of Ethics and Business Conduct, which sets forth our standards for business practices that reflect honesty, integrity and transparency. Specific areas covered by the Code of Conduct include: Corporate assets and information Conflicts of interest Equal employment opportunity and unlawful harassment Safety of the workplace and environmental protection Relationships with competitors and other trade practices Export/import laws and regulations Code of ethics for the Chief Executive Officer and senior financial officers We work to ensure that there is no disconnect between our policies and how we conduct our business, and we reinforce this mindset through periodic reporting to the Board, annual ethics training for employees, monitoring trends, taking appropriate discipline, conducting employee surveys and issuing periodic and topical communications to employees. CSR APPROACH 12

SHARE OUR VISION That innovative technology can transform math education. ISSUES

ISSUES EDUCATION STRATEGY FUELING THE FUTURE ONE YOUNG MIND AT A TIME The kind of world we enjoy tomorrow will be determined in large part by the teaching and learning that occurs in school classrooms today. At DIRECTV, innovative technology is fundamental to everything we do as a company. Our continued success will be fueled to a significant degree by advances in science and engineering that make products and services smarter, faster, more capable and useful, and by the future talent that will help us continue to innovate and stay on the cutting edge. This makes us keenly aware of how important it is for tomorrow s workforce and today s students to develop a sound academic foundation in Science, Technology, Engineering and Math (STEM). For millions of young people across the U.S. and Latin America, education will be the essential enabler of opportunity. Today s youth will pursue careers in a world that is increasingly digital and defined by technological innovation. Young people without strong STEM competencies will find their career path to be much more limited. Building STEM skills requires a rigorous curriculum, well-trained teachers, adequate facilities and robust technology that facilitates learning. At DIRECTV, we are working to support each of these requirements and partnering with nonprofit organizations that are at the forefront of strengthening STEM education in the U.S. Survey data demonstrates that not enough students today possess the competencies necessary for tomorrow s economy. According to the U.S. Department of Education, only 16 percent of U.S. high school seniors are proficient in mathematics and interested in a STEM career.* That s why we are allocating a majority of our community investments to strengthen K-12 education, with a particular emphasis on STEM instruction. We recognize that sustainable progress can only be achieved one school, one classroom, one teacher and one student at a time. In the U.S., our DIRECTV GOES TO SCHOOL education program provides the DIRECTV SCHOOL CHOICE educational programming package free of charge to any accredited K-12 school in the U.S. In Latin America, we offer what we believe to be the premier television education project in the region ESCUELA+. This rapidly expanding, high-impact program now reaches thousands of schools and hundreds of thousands of students throughout the region. Across all markets we serve, our investments in educational programming, teacher training, internships, mentoring, technology and facilities are having a positive impact on student performance and we are just getting started. Moving forward we will continue to invest in ways that expand young minds and build brighter futures for us all. *Source: U.S. Dept. of Education, http://www.ed.gov/stem. ISSUES EDUCATION 14

U.S. STEM PROGRAMS RISING TO THE CHALLENGE TO IMPROVE MATH PERFORMANCE In 2013, DIRECTV announced a new initiative to support math achievement, the DIRECTV Math Challenge. Piloted with the Partnership for Los Angeles Schools, the Math Challenge included a $200,000 charitable investment to fund its implementation. Because research reveals that students math skills are fundamental to other learning and underpin all STEM competencies, our Math Challenge pursues the goal of improved math achievement in two ways. Half of the 2013 grant underwrote the Partnership s use of ST (Spatial-Temporal) Math, an online math instruction platform that combines face-to-face and technology-based instruction. The support of ST Math included professional development for teachers at all 11 Partnership middle and elementary schools so that instructors can make the most effective use of ST Math. Our support also included laptop computers for student use in the classroom. ST Math is a component of the Partnership's technology-connected learning strategy that uses online learning programs to support teachers who need to reach students of varying performance levels within the same classroom. Performance data confirms the value of this approach. After one year of using ST Math in elementary schools, the Partnership achieved a meaningful 6 percent increase in math scores on 2011-2012 state tests compared to a flat average overall by the Los Angeles Unified School District. DIRECTV Chairman, President and CEO Mike White visits an elementary school classroom that is using ST Math. The second component of our DIRECTV Math Challenge grant funded a multi-tiered incentive program to recognize students, teachers, principals and parents for their role in driving student math achievement. Prizes, such as free DIRECTV service for a year, student celebrations and tablets, were awarded based on student progress using ST Math, aggregate classroom and school math results, and use of the online learning tool outside of the school day. In May, DIRECTV brought exclusive end-of-year events to the campuses of the grand prize-winning elementary and middle schools to celebrate math achievement. Nearly 1,300 students at Gompers Middle School and Ritter Elementary in Watts, Calif., had the opportunity to practice their math skills through a variety of hands-on experiences beyond the classroom. These activities included an outdoor activity course, a cooking demonstration sponsored by the Food Network, and a weather meteorology lesson reporting simulation sponsored by The Weather Channel. We are excited to witness improvement in students STEM proficiency as we leverage DIRECTV s unique resources to support student achievement. Based on our ongoing assessment of the Math Challenge results, we plan to expand to an increasing number of schools in the future. The Math Challenge is the latest initiative in our multi-year effort to support the Partnership for L.A. Schools and its work. Since 2007, DIRECTV s involvement has funded a variety of programs, including underwriting the cost of Parent Centers at each Partnership school. In aggregate, our support in both cash and in-kind services now totals more than a half-million dollars. ISSUES EDUCATION 15

U.S. STEM PROGRAMS continued SHARING AND GIVING TO HUNDREDS OF CLASSROOMS IN NEED There are unmet needs at nearly every school in the U.S., and our investment in tools and resources to enhance teaching and learning extends beyond our corporate home in Southern California, to encompass all 50 states. We are excited to leverage the power of social media to engage our employees, customers and online community in this effort. 2013 marked the third year of our partnership with DonorsChoose.org, an online charity that makes it possible for generous citizen philanthropists to help students in need. Through DonorsChoose.org, public school teachers from across the country post requests for classroom resources, and individuals can give directly to the ones that inspire them. With DIRECTV s October 2013 You Share, We Give campaign, each time one of our Facebook followers shared one of the campaign images, DIRECTV donated $1 to STEM-related projects on DonorsChoose.org, up to $100,000. Teachers were invited to share links to their projects on DonorsChoose.org using the hashtag #DIRECTVgives for an increased chance of being funded as part of this campaign. The positive impact of You Share, We Give in 2013 reached schools and K-12 classrooms in all 50 states. The initiative funded 289 projects at 225 schools, benefiting nearly 23,000 students. The funds were allocated where most needed 82 percent of the funded projects went to schools that serve communities with high levels of poverty. In addition to our corporate contributions, the campaign generated 27.6 million online impressions and activated more than 2,000 individual donors, raising significant awareness of DonorsChoose.org. TEACHERS SAY IT BEST Without your singular donation, these resources would not be available to my students. My eighth-grade scientists have a range of reading levels, but these books will help support them in their science research and experimentation. These books will be the first off the shelves on any day! Ms. Harris, Washington, D.C. STEM Project: Bubbling Scientists Need Sources! What a delightful surprise to get a donation from your company! The students are excited about getting STEMified. Who knows, maybe one of them will be your next great DIRECTV inventor! Mrs. Wight, Missouri STEM Project: Gears and Engineering for Kids I made it my personal mission this year to obtain a class set of ipads. When I told my students this project had been funded, they were so excited they were jumping up and down! We use the ipads daily in our classroom, and my students have benefited educationally from them on so many levels. Ms. Cuellar-VanAken, Texas STEM Project: Technology Today Impacting Tomorrow: Take Two ISSUES EDUCATION 16

U.S. STEM PROGRAMS continued DEVELOPING EXCELLENT MATH TEACHERS Motivated by the belief that great teaching is critical to student success especially in STEM subjects DIRECTV began investing in professional development for STEM teachers in the El Segundo Unified School District, adjacent to our corporate headquarters. Our grant to the El Segundo Education Foundation for the 2012-2013 school year supports a development program for high school math teachers through Loyola Marymount University s Center for Math and Science Teaching (CMAST). Through the program, teacher cohorts learn how to deeply engage their students in learning and ensure that strong foundations are built in mathematics and engineering practices through the Common Core State Standards (CCSS) and Next Generation of Science Standards (NGSS). As Teacher Leaders, participants also provide demonstration classrooms for their colleagues, administrators and the community. Overall, students experienced greater academic success in classrooms where teachers were implementing the new instructional practices. For example, Algebra 2 grades increased by 14 percent and average passing scores on the Advanced Placement Physics exam also increased by 10 percent. On an independent college Calculus assessment, A grades increased 25 percent. For the 2013-2014 school year, DIRECTV s professional development grant to El Segundo schools supported math instruction at the elementary school level via Cognitively Guided Instruction (CGI), a professional development program offered through the Graduate School of Education & Information Studies at the University of California, Los Angeles. CGI is an approach to teaching mathematics that emphasizes the practice of listening to children's mathematical thinking and using it as a basis for instruction. Through both of these programs, DIRECTV seeks to foster student development as problem-solvers who are empowered to bring skill and confidence to mathematical situations. We are proud to invest in teacher success because we know that when one teacher s skills are strengthened, hundreds, or even thousands, of their students will benefit during the course of their careers. ISSUES EDUCATION 17

U.S. STEM PROGRAMS continued BUILDING TOMORROW S SOLUTIONS TODAY Combining STEM education and student creativity with commitment to innovate and act locally is the idea behind the Samsung Solve for Tomorrow education contest. DIRECTV is proud to be a partner in this important initiative, which gives schools across the U.S. the opportunity to raise interest in STEM subjects among students by awarding winning schools a share of more than $2 million in technology products. During the 2012-2013 and 2013-2014 school years, teachers of sixth- through twelfth-grade classes were invited to create videos with their students to answer the challenge, How can STEM help improve the environment in your community? Each year, DIRECTV provided $35,000 in cash prizes for winning schools, along with complimentary DIRECTV installation for the DIRECTV GOES TO SCHOOL program. The students who participate in Solve for Tomorrow develop stronger skills in science, engineering and other disciplines, while devising solutions to real-world problems that affect their communities. They learn that technical and scientific knowledge, when combined with volunteerism and community activism, can be a powerful force for good. To learn more, visit: www.samsung.com/us/solve. ISSUES EDUCATION 18

DIRECTV GOES TO SCHOOL BIG IDEAS, POWERFUL CONNECTIONS: DIRECTV GOES TO SCHOOL Through DIRECTV GOES TO SCHOOL, we offer the finest educational television experience in the U.S. at no cost to any qualifying, state-accredited school, grades K-12. Our SCHOOL CHOICE programming package gives schools access to current events coverage and breaking news, as well as educational programming to enhance their students classroom experience. SCHOOL CHOICE is specifically designed for classroom viewing, offering a high concentration of educational programming, news, weather and other current events channels. The package comprises nearly 100 channels and includes channels such as A&E, Animal Planet, Biography, CNN, CSPAN, Discovery Channel, History Channel, NASA TV, The Science Channel and Univision. After schools complete a simple online application process, DIRECTV sends qualifying institutions a free DIRECTV System for up to four rooms, including four HD receivers and remotes, one of which may be a DIRECTV HD DVR. Educators can use their free DIRECTV System to record shows and programming that enhance their classroom instruction. In addition, channels such as NASA TV and History Channel provide additional teacher resources such as lesson plans to help connect programming content to meaningful classroom instruction. In 2013, DIRECTV contributed more than $5.6 million in in-kind services and equipment through the program. DIRECTV GOES TO SCHOOL SPECIAL ASSEMBLY WITH OPRAH WINFREY The campus of Jordan High School in the Watts neighborhood of Los Angeles came alive on Feb. 20 when Oprah Winfrey surprised students and DIRECTV employees during an on-campus assembly. It was part of a DIRECTV Day of Service, where 225 employees painted inspirational murals and mentored students at Jordan. As the group was wrapping up their day, Oprah came by to offer some inspirational words of advice. DIRECTV and Oprah chose Jordan High School to shine a light on the significant turnaround work taking place on campus. In 2012, its Academic Performance Index (API) score increased 93 points, which was not only the highest improvement for a school in the Los Angeles Unified School District, but also in the state of California. We believe that bringing inspirational and history-making figures into schools for live events is an effective way to make the classroom learning experience come alive for students. Oprah s visit built off of similar successful events hosted by DIRECTV at high schools in 2011. Featured speakers included Archbishop Desmond Tutu in Los Angeles and a panel of musical talent and public officials in Washington, D.C. We continue to look for unique opportunities like these that we can provide as part of DIRECTV s commitment to K-12 education. ISSUES EDUCATION 19

ESCUELA+ MAKING TV AN ALLY IN THE CLASSROOM Since 2007, when its first pilot programs were launched, ESCUELA+ has served as a catalyst for positive change in a growing number of schools throughout Latin America. Through ESCUELA+, DIRECTV Latin America works in partnership with private companies, government departments of education and other stakeholders to positively transform the classroom experience of Latin American teachers and students. In the span of just six years, ESCUELA+ has earned recognition as the premier and most complete TV education platform in Latin America. Four primary pillars support the program s successful formula: State-of-the-art technology: DIRECTV s satellite technology allows educational programming to reach any school in Latin America, from the heart of the Amazon to the southernmost reaches of Argentina near Antarctica. Because our service has no geographical limits, it can serve educational 300,000+ STUDENTS PARTICIPATING 10,000+ TEACHERS TRAINED 50% GROWTH IN PARTICIPATING SCHOOLS IN 2013 communities that do not have access to other technologies a school simply needs a TV and electrical power. DIRECTV Plus SD DVR recording lets teachers control content and record up to 100 hours of educational programming to use at their convenience. More than 200 operators have been trained at the call center in Cali, Colombia in order to support teachers using ESCUELA+. Exceptional partner education content and support materials: Programming from ESCUELA+ partners is indexed in a core curriculum specifically designed for Latin America and the Caribbean. Partners providing content include Discovery, Nat Geo, Microsoft, Fundación Torneos, as well as local Ministries of Education. Innovative methodology: Teachers in participating schools are trained to use the program based on the Discovery en la Escuela methodology and also learn to effectively use DIRECTV s ESCUELA+ audio/visual technology. Ongoing communication and engagement: Classroom technology is only effective where there is the training and support that maximizes its effectiveness. Our teacher training and engagement strategy helps schools maximize the benefits of ESCUELA+ and its programming. An ESCUELA+ teacher with her students in Buenos Aires, Argentina. By every measure, 2013 was a record-breaking year for ESCUELA+. The number of participating schools grew by more than 50 percent from 2012 to nearly 1,600 schools. The initiative was introduced in Perú, and teacher training also began for 2014 deployment in Uruguay. More than 10,000 teachers were trained in ESCUELA+ methodology, and the total number of students impacted across the region rose rapidly to 300,000. ISSUES EDUCATION 20