DIRECTV 2007 Annual Report Download - page 87

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Amortization expense of intangible assets was $419 million in 2007 and $369 million in 2006 and
$351 million in 2005.
Estimated amortization expense for intangible assets in each of the next five years and thereafter is
as follows: $412 million in 2008; $350 million in 2009; $152 million in 2010; $97 million in 2011;
$55 million in 2012 and $79 million thereafter.
Note 6: Investments
Equity Method Investments
We have investments in companies that we accounted for under the equity method of accounting
totaling $551 million as of December 31, 2007 and $510 million as of December 31, 2006.
As discussed in Note 3, we acquired a 41% interest in Sky Mexico in 2006. The book value of our
investment in Sky Mexico was $505 million at December 31, 2007 and $464 million at December 31,
2006.
The following table sets forth equity in earnings of our 41% interest in Sky Mexico for the periods
presented:
Years Ended
December 31,
2007 2006
(Dollars in
Millions)
Equity in earnings of Sky Mexico ................................... $41 $18
In January 2006, we completed the sale of our 50% interest in HNS LLC to SkyTerra
Communications, Inc. and resolved a working capital adjustment from a prior transaction in exchange
for $110 million in cash, which resulted in our recording a gain of $14 million related to the sale, in
addition to equity earnings of HNS LLC of $11 million in ‘‘Other, net’’ in the Consolidated Statements
of Operations.
Other Investments
We had investments in marketable equity securities of $56 million as of December 31, 2007 and
$37 million as of December 31, 2006, which were stated at current fair value and classified as
available-for-sale.
Accumulated unrealized gains, net of taxes, included as part of accumulated other comprehensive
income were $21 million in 2007, $9 million in 2006 and $23 million in 2005.
During 2005, we sold an equity investment for $113 million in cash and recorded a net pre-tax loss
of $1 million.
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