DIRECTV 2002 Annual Report Download - page 93

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HUGHES ELECTRONICS CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (continued)
Future minimum lease payments due from customers, included in the above table, related to
satellites to be launched totaled approximately $0.8 billion. Included in the amounts above are
$151.6 million of future lease payments, which may be terminated by the customers pursuant to certain
contractual termination rights.
The components of the net investment in sales-type leases are as follows:
2002 2001
(Dollars in Millions)
Total minimum lease payments ............................................ $277.6 $380.7
Less unearned interest income and allowance for doubtful accounts .............. 92.8 128.8
Total net investment in sales-type leases .................................... 184.8 251.9
Less current portion ...................................................... 22.9 24.9
Total long-term net investment in sales-type leases ........................ $161.9 $227.0
Note 6: Intangible Assets
Hughes had $5,775.2 million and $6,496.6 million of goodwill at December 31, 2002 and
December 31, 2001, respectively, net of accumulated amortization of $606.9 million and $700.0 million
at December 31, 2002 and December 31, 2001, respectively. Net goodwill of $140.6 million and
$505.0 million related to the Direct-To-Home Broadcast and Satellite Services segments, respectively,
which was carried at Corporate as of December 31, 2002 and 2001, has been allocated to the
respective reporting unit in the presentation below. The changes in the carrying amounts of goodwill by
reporting unit for the year ended December 31, 2002 were as follows:
Direct-To-
Home
Broadcast
Satellite
Services
Network
Systems Total
(Dollars in Millions)
Balance as of December 31, 2001 ..................... $3,734.0 $2,743.7 $ 18.9 $6,496.6
Impairmentloss .................................... (739.7) — (16.0) (755.7)
Other ............................................. 34.8 — (0.5) 34.3
Balance as of December 31, 2002 ..................... $3,029.1 $2,743.7 $ 2.4 $5,775.2
Hughes had $644.7 million and $660.2 million of intangible assets, net at December 31, 2002 and
December 31, 2001, respectively. Accumulated amortization for intangible assets was $195.1 million
and $182.2 million at December 31, 2002 and December 31, 2001, respectively. Intangible assets at
December 31, 2002 primarily consisted of $432.3 million, net of $30.6 million of accumulated
amortization, of Orbital Slots which have indefinite useful lives, and $191.3 million, net of $164.5 million
of accumulated amortization, of dealer network and subscriber base intangible assets which are being
amortized over their estimated remaining useful lives of 2 and 12 years, respectively. See Note 3 for
further discussion.
Amortization expense for intangible assets was $25.4 million, $70.8 million and $68.7 million for
the years ended December 31, 2002, 2001 and 2000, respectively. Estimated amortization expense in
each of the next five years is as follows: $74.0 million in 2003; $31.1 million in 2004; $9.2 million in
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