DIRECTV 2009 Annual Report Download - page 133

Download and view the complete annual report

Please find page 133 of the 2009 DIRECTV annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
January 6, 2010. On January 8, 2010, the Court of Appeals affirmed per curiam the grant of summary
judgment on all claims. This case is now resolved and there will be no further proceedings in this
matter.
Income Tax Matters
We have received tax assessments from certain foreign jurisdictions and have agreed to indemnify
previously divested businesses for certain tax assessments relating to periods prior to their respective
divestitures. These assessments are in various stages of the administrative process or litigation, and we
believe we have adequately provided for any related liability.
While the outcome of these assessments and other tax issues cannot be predicted with certainty,
we believe that the ultimate outcome will not have a material effect on our consolidated financial
statements.
Satellites
We may purchase in-orbit and launch insurance to mitigate the potential financial impact of
satellite launch and in-orbit failures if the premium costs are considered economic relative to the risk
of satellite failure. The insurance generally covers the unamortized book value of covered satellites. We
do not insure against lost revenues in the event of a total or partial loss of the capacity of a satellite.
We generally rely on in-orbit spare satellites and excess transponder capacity at key orbital slots to
mitigate the impact a satellite failure could have on our ability to provide service. At December 31,
2009, the net book value of in-orbit satellites was $1,984 million, all of which was uninsured.
Other
We are contingently liable under standby letters of credit and bonds in the aggregate amount of
$35 million at December 31, 2009.
121