DIRECTV 2009 Annual Report Download - page 105

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
The following table sets forth equity in earnings and losses of our investments accounted for under
the equity method of accounting for the periods presented:
Years Ended
December 31,
2009 2008 2007
(Dollars in Millions)
Sky Mexico .............................................. $32 $63 $41
Other .................................................. 19 (8) (6)
Total equity earnings for investments accounted for under the equity
method of accounting ..................................... $51 $55 $35
Game Show Network. As result of the Liberty Transaction, DIRECTV and Sony Pictures
Entertainment, or Sony, a division of Sony Corporation of America, which is a subsidiary of Sony
Corporation, own 65% and 35% of GSN, respectively as of December 31, 2009. GSN owns and
operates a basic cable network dedicated to game-related programming and Internet interactive game
playing. Due to certain governance arrangements which limit DIRECTV’s ability to control GSN, we
account for GSN as an equity method investment.
DIRECTV accounts for the excess of the carrying value for its investment in GSN over
DIRECTV’s share of GSN’s equity in memo accounts allocated to goodwill and definite lived
intangibles attributable to affiliate and advertising relationships. For 2009 we recognized $1 million of
amortization on definite lived intangibles in equity earnings.
We received cash dividends of $94 million in 2009 and $35 million in 2008 from companies that we
account for under the equity method.
Other Investments
We had investments in marketable equity securities of $31 million as of December 31, 2009 and
$23 million as of December 31, 2008, which were stated at current fair value and classified as
available-for-sale. We calculated the fair values based on quoted market prices of our investments,
which is a Level 1 input under the accounting guidance.
Accumulated unrealized gains, net of taxes, included as part of accumulated other comprehensive
income were $8 million in 2009, $1 million in 2008 and $21 million in 2007.
In 2009, we recognized a $45 million charge for the other than temporary impairment of certain of
our investments.
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