DIRECTV 2003 Annual Report Download - page 86

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (continued)
Note 3: Property and Satellites, Net
The following table sets forth the amounts recorded for property and satellites, net, at December 31:
Estimated
Useful Lives
(years) 2003 2002
(Dollars in Millions)
Landandimprovements ........................................... 10-30 $ 57.0 $ 55.1
Buildings and leasehold improvements ............................... 1-40 347.9 338.5
Machineryandequipment ......................................... 3-23 2,145.4 1,968.1
Customer leased set-top receivers ................................... 4- 7 1,172.2 867.5
Furniture, fixtures and office machines ............................... 3-15 176.3 154.9
Construction in progress ........................................... — 506.0 399.3
Total .......................................................... 4,404.8 3,783.4
Less accumulated depreciation ...................................... 2,388.0 1,766.0
Property, net ................................................ $2,016.8 $2,017.4
Satellites ....................................................... 12-16 $4,469.7 $4,733.4
Satellites under construction ....................................... — 1,888.9 1,686.4
Total .......................................................... 6,358.6 6,419.8
Less accumulated depreciation ...................................... 1,763.9 1,497.2
Satellites, net ................................................ $4,594.7 $4,922.6
The Company capitalized interest costs of $133.9 million, $116.8 million and $76.3 million during 2003,
2002 and 2001, respectively, as part of the cost of its property and satellites under construction.
Note 4: 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, 2003 are as follows:
Sales-Type Leases
Operating
Leases
Minimum
Lease
Payments
Service
Agreement
Payments
(Dollars in Millions)
2004 ........................................................... $ 39.2 $3.1 $ 576.5
2005 ........................................................... 39.2 3.1 498.0
2006 ........................................................... 24.5 0.8 476.9
2007 ........................................................... 21.2 0.4 392.0
2008 ........................................................... 21.2 0.3 313.3
Thereafter ....................................................... 92.9 1.5 1,296.9
Total ....................................................... $238.2 $9.2 $3,553.6
Included in the above table are future minimum lease payments due from customers of approximately $1.0
billion related to satellites not yet launched and future lease payments of $177.8 million, which may be
terminated by the customers pursuant to certain contractual termination rights. Also included in the above table is
approximately $545.7 million of minimum payments due from News Corporation and its affiliates.
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