DIRECTV 2009 Annual Report Download - page 114

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
classified as an operating lease. The extension of the lease term to December 2020 required a
reassessment of the lease classification and we determined that we should change the classification of
the amended agreement to a capital lease. The present value of the lease payments at the inception of
the lease renewal was $333 million. The capitalized value of the satellite is included in ‘‘Satellites, net’’
and the capitalized lease obligation is included in ‘‘Accounts payable and accrued liabilities’’ and ‘‘Other
liabilities and deferred credits’’ in the Consolidated Balance Sheets.
The following table sets forth total minimum lease payments under capital leases along with the
present value of the net minimum lease payments as of December 31, 2009:
(Dollars in Millions)
2010 .......................................................... $ 89
2011 .......................................................... 87
2012 .......................................................... 84
2013 .......................................................... 82
2014 .......................................................... 77
Thereafter ...................................................... 511
Total minimum lease payments ....................................... 930
Less: Amount representing interest .................................... 344
Present value of net minimum lease payments ............................ $586
Assets held under capitalized leases are included in Satellites, net and Property and Equipment,
net in our Consolidated Balance Sheets. We had the following assets held under capital leases as of
December 31:
2009 2008
(Dollars in Millions)
Satellites under capital leases ........................................ $543 $533
Less: Accumulated amortization ...................................... (63) (20)
Satellites, net under capital leases .................................... $480 $513
Property and equipment under capital leases ............................. $ 63 $ 27
Less: Accumulated amortization ...................................... (14) (4)
Property and equipment, net under capital leases ......................... $ 49 $ 23
We paid interest for capital leases of $56 million in 2009, $27 million in 2008 and $4 million in
2007.
Note 12: Pension and Other Postretirement Benefit Plans
Most of our employees are eligible to participate in our funded non-contributory defined benefit
pension plan, which provides defined benefits based on either years of service and final average salary,
or eligible compensation while employed by the company. Additionally, we maintain a funded
contributory defined benefit plan for employees who elected to participate prior to 1991, and an
unfunded, nonqualified pension plan for certain eligible employees. For participants in the contributory
pension plan, we also maintain a postretirement benefit plan for those eligible retirees to participate in
health care and life insurance benefits generally until they reach age 65. Participants may become
eligible for these health care and life insurance benefits if they retire from our company between the
102