DIRECTV 2002 Annual Report Download - page 92

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HUGHES ELECTRONICS CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (continued)
In April 2002, the FASB issued SFAS No. 145, “Rescission of FASB Statements No. 4, 44 and 64,
Amendment of FASB Statement No. 13 and Technical Corrections.” SFAS No. 145 eliminates the
requirement to present gains and losses on the early extinguishment of debt as an extraordinary item,
and resolves accounting inconsistencies for certain lease modifications. Hughes’ adoption of this
standard on January 1, 2003 is not expected to have an impact on Hughes’ consolidated results of
operations or financial position.
Note 4: Property and Satellites, Net
Estimated
Useful Lives
(years) 2002 2001
(Dollars in Millions)
Land and improvements .................................... 10–30 $ 55.1 $ 54.4
Buildings and leasehold improvements ........................ 2–40 338.5 323.9
Machinery and equipment ................................... 2–23 1,968.1 1,627.2
Customer leased set-top boxes .............................. 4–7 867.5 969.5
Furniture, fixtures and office machines ........................ 2–15 154.9 128.6
Constructioninprogress .................................... — 399.3 450.8
Total .................................................... 3,783.4 3,554.4
Less accumulated depreciation .............................. 1,766.0 1,356.6
Property,net.............................................. $2,017.4 $2,197.8
Satellites ................................................. 12–16 $6,419.8 $6,215.4
Less accumulated depreciation .............................. 1,497.2 1,408.8
Satellites, net ............................................. $4,922.6 $4,806.6
Hughes capitalized interest costs of $116.8 million, $76.3 million and $82.4 million during 2002,
2001 and 2000, respectively, as part of the cost of its property and satellites under construction.
Note 5: Leasing Activities
Future minimum payments due from customers under sales-type leases and related service
agreements, and noncancelable satellite transponder operating leases as of December 31, 2002 are
as follows:
Sales-Type Leases
Minimum
Lease
Payments
Service
Agreement
Payments
Operating
Leases
(Dollars in Millions)
2003 ..................................................... $ 39.3 $ 3.1 $ 568.1
2004 ..................................................... 39.2 3.0 526.3
2005 ..................................................... 39.2 3.0 502.3
2006 ..................................................... 24.5 0.8 502.6
2007 ..................................................... 21.2 0.4 408.9
Thereafter ................................................. 114.2 1.9 1,915.5
Total.................................................. $277.6 $12.2 $4,423.7
82