DIRECTV 2003 Annual Report Download - page 113

Download and view the complete annual report

Please find page 113 of the 2003 DIRECTV annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 137

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137

THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (continued)
The following table presents revenues earned from customers located in different geographic areas. Property
is grouped by its physical location. All satellites are reported as U.S. assets.
2003 2002 2001
Total
Revenues
Net Property
& Satellites
Total
Revenues
Net Property
& Satellites
Total
Revenues
Net Property
& Satellites
(Dollars in Millions)
North America
United States ............... $ 8,843.8 $6,085.1 $7,476.7 $6,401.0 $6,661.9 $6,331.2
CanadaandMexico .......... 207.8 92.7 208.5 196.7 206.8 207.4
Total North America ..... 9,051.6 6,177.8 7,685.2 6,597.7 6,868.7 6,538.6
Europe
United Kingdom ............ 73.2 5.7 167.9 7.3 143.2 8.3
Other ..................... 63.4 0.1 21.4 0.3 64.3 0.4
TotalEurope ........... 136.6 5.8 189.3 7.6 207.5 8.7
South America and the Caribbean
Brazil ..................... 166.0 117.7 207.9 149.9 247.0 220.0
Argentina .................. 82.9 102.2 88.8 126.5 156.2 171.2
Other ..................... 305.7 177.6 340.1 28.3 321.3 34.2
Total South America and
theCaribbean ......... 554.6 397.5 636.8 304.7 724.5 425.4
Asia
Japan ..................... 13.3 — 13.7 — 21.1 0.5
India ...................... 33.1 27.9 76.5 27.3 93.5 29.3
China ..................... 18.0 1.1 21.2 1.2 32.7 0.5
Other ..................... 144.0 1.3 140.6 1.4 141.4 0.9
TotalAsia.............. 208.4 30.3 252.0 29.9 288.7 31.2
TotalMiddleEast ............... 59.8 — 21.2 — 24.0 0.1
Total Africa .................... 110.2 0.1 78.0 0.1 123.8 0.4
Total.................. $10,121.2 $6,611.5 $8,862.5 $6,940.0 $8,237.2 $7,004.4
Note 20: Commitments and Contingencies
Litigation
In connection with the 2000 sale by the Company of its satellite systems manufacturing businesses to
Boeing, the stock purchase agreement provided for a potential adjustment to the purchase price based upon the
financial statements of the satellite systems manufacturing businesses as of the closing date of the sale. Based
upon the final closing date financial statements, the Company calculated that Boeing was owed a purchase price
adjustment of $164 million plus interest accruing at a rate of 9.5% from the date of sale pursuant to the stock
purchase agreement. Boeing subsequently submitted additional proposed adjustments which became the subject
of a dispute resolution process. Pursuant to a settlement agreement executed on July 15, 2003, the Company and
Boeing settled all outstanding purchase price adjustment disputes and the Company paid an aggregate of $360
million in cash on July 18, 2003 in satisfaction of both the disputed and undisputed portions of the purchase price
adjustment, including interest. Boeing also was released from its commitment to pay the Company $4.4 million
over the next seven years in connection with Boeing’s participation in the settlement with the U.S. Department of
106