DIRECTV 2009 Annual Report Download - page 104
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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
The following table sets forth the components for ‘‘Intangible assets, net’’ in the Consolidated
Balance Sheets at:
December 31, 2009 December 31, 2008
Estimated
Useful Lives Gross Accumulated Net Gross Accumulated Net
(years) Amount Amortization Amount Amount Amortization Amount
(Dollars in Millions)
Orbital slots ................... Indefinite $ 432 $ 432 $ 432 $ 432
72.5⍭ WL Orbital license .......... 5 208 $ 208 — 208 $ 171 37
Subscriber related ............... 5-10 1,787 1,526 261 1,697 1,255 442
Dealer network ................. 15 130 90 40 130 79 51
Trade name and other ............ 5-20 344 17 327 102 9 93
Distribution rights ............... 7 334 263 71 334 217 117
Total intangible assets ............ $3,235 $2,104 $1,131 $2,903 $1,731 $1,172
Amortization expense of intangible assets was $352 million in 2009, $412 million in 2008 and
$419 million in 2007.
Estimated amortization expense for intangible assets in each of the next five years and thereafter is
as follows: $188 million in 2010; $132 million in 2011; $85 million in 2012; $38 million in 2013;
$31 million in 2014 and $225 million thereafter.
We performed our annual impairment tests for goodwill and orbital slots in the fourth quarters of
2009, 2008, and 2007. The estimated fair values for each reporting unit and the orbital slots exceeded
our carrying values, and accordingly, no impairment losses were recorded during 2009, 2008, or 2007.
Note 7: Investments
Equity Method Investments
The following table sets forth the book value of our investments which we account for under the
equity method of accounting:
As of
December 31,
2009 2008
(Dollars in Millions)
Sky Mexico .............................................. $ 484 $537
GSN ................................................... 462 —
Other equity method investments .............................. 130 130
Total investments accounted for the equity method of accounting ....... $1,076 $667
We paid cash of $11 million in 2009, $96 million in 2008 and $13 million in 2007 to acquire
interests in companies we account for under the equity method of accounting.
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