DIRECTV 2009 Annual Report Download - page 102

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
our operations had 180 Connect operated as part of us for each of the periods presented, nor are they
necessarily indicative of the results of future operations. The pro forma information excludes the effect
of non-recurring charges.
Years Ended
December 31, 2008
(Dollars in Millions,)
Revenues ................................................ $19,693
Net income .............................................. 1,479
Darlene Transaction
On January 30, 2007, we acquired Darlene’s 14% equity interest in DLA LLC for $325 million in
cash. We accounted for the acquisition of this interest using the purchase method of accounting.
Note 4: Accounts Receivable, Net
The following table sets forth the amounts recorded for ‘‘Accounts receivable, net’’ in our
Consolidated Balance Sheets as of December 31:
2009 2008
(Dollars in Millions)
Subscriber ............................................... $1,036 $ 918
Trade and other ........................................... 645 555
Subtotal ................................................. 1,681 1,473
Less: Allowance for doubtful accounts ........................... (56) (50)
Accounts receivable, net ................................... $1,625 $1,423
Note 5: Satellites, Net and Property and Equipment, Net
The following table sets forth the amounts recorded for ‘‘Satellites, net’’ and ‘‘Property and
equipment, net’’ in our Consolidated Balance Sheets at December 31:
Estimated
Useful Lives
(years) 2009 2008
(Dollars in Millions)
Satellites .............................................. 10-16 $ 2,839 $ 2,956
Satellites under construction ............................... — 354 292
Total ................................................. 3,193 3,248
Less: Accumulated depreciation ............................. (855) (772)
Satellites, net ......................................... $2,338 $ 2,476
Land and improvements .................................. 9-30 $ 37 $ 37
Buildings and leasehold improvements ........................ 2-40 361 342
Machinery and equipment ................................. 2-23 3,337 3,211
Subscriber leased set-top receivers ........................... 3-7 5,636 4,853
Construction in-progress .................................. — 360 271
Total ................................................. 9,731 8,714
Less: Accumulated depreciation ............................. (5,593) (4,543)
Property and equipment, net .............................. $4,138 $ 4,171
90