DIRECTV 2008 Annual Report Download - page 92

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
We paid cash of $96 million in 2008, $13 million in 2007 and $381 million in 2006 to acquire
interests in companies we account for under the equity method of accounting. As discussed in Note 17,
we acquired a 41% interest in Sky Mexico in 2006. The book value of our investment in Sky Mexico
was $537 million at December 31, 2008 and $505 million at December 31, 2007.
The following table sets forth equity in earnings of our 41% interest in Sky Mexico for the periods
presented:
Years Ended
December 31,
2008 2007 2006
(Dollars in
Millions)
Equity in earnings of Sky Mexico ............................... $63 $41 $18
We received cash dividends of $35 million in 2008 from companies that we account for under the
equity method.
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 with SkyTerra
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 $23 million as of December 31, 2008 and
$56 million as of December 31, 2007, 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 $1 million in 2008, $21 million in 2007 and $9 million in 2006.
Note 7: Accounts Payable and Accrued Liabilities; Other Liabilities and Deferred Credits
The following represent significant components of ‘‘Accounts payable and accrued liabilities’’ in our
Consolidated Balance Sheets as of December 31:
2008 2007
(Dollars in
Millions)
Programming costs ................................................. $1,640 $1,506
Accounts payable .................................................. 433 447
Property and income taxes ........................................... 161 154
Payroll and employee benefits ......................................... 165 139
Interest payable ................................................... 45 26
Other .......................................................... 671 760
Total accounts payable and accrued liabilities .......................... $3,115 $3,032
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