DIRECTV 2010 Annual Report Download - page 95

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Note 6: Goodwill and Intangible Assets accrual of which is considered a non-cash investing activity for purposes of the
Consolidated Statements of Cash Flows for the year ended December 31, 2010.
The following table sets forth the changes in the carrying amounts of The intangible asset is being amortized on a straight line basis over the 15 year
‘‘Goodwill’’ in the Consolidated Balance Sheets by segment for the years ended period of the agreement.
December 31, 2010 and 2009:
The following table sets forth the components for ‘‘Intangible assets, net’’ in
Sports the Consolidated Balance Sheets at:
DIRECTV Networks,
DIRECTV Latin Eliminations December 31, 2010 December 31, 2009
U.S. America and Other Total
Estimated
(Dollars in Millions) Useful Lives Gross Accumulated Net Gross Accumulated Net
Balance as of January 1, 2009 ...... $3,189 $564 $ — $3,753 (years) Amount Amortization Amount Amount Amortization Amount
Liberty Transaction ............. — — 341 341 (Dollars in Millions)
Foreign currency translation Orbital slots .......... Indefinite $ 432 $ 432 $ 432 $ 432
72.5⬚ WL Orbital license . . . 5 — $ — — 208 $ 208 —
adjustment ................. — 92 — 92
Satellite rights ......... 15 124 6 118 — — —
Purchase or acquisition accounting Subscriber related ....... 5-10 443 317 126 1,761 1,526 235
adjustments: Dealer network . . . . . . . . 15 130 99 31 130 90 40
New acquisitions ............. 24 — — 24 Trade name and other .... 5-20 384 41 343 370 17 353
Finalization of prior acquisitions . . . (46) — — (46) Distribution rights . . . . . . 7 334 310 24 334 263 71
Balance as of December 31, 2009 . . . 3,167 656 341 4,164 Total intangible assets ..... $1,847 $773 $1,074 $3,235 $2,104 $1,131
Foreign currency translation
adjustment ................. — 21 — 21 Amortization expense of intangible assets was $190 million in 2010,
Acquisition accounting adjustments . . . 9 — (46) (37) $352 million in 2009 and $412 million in 2008.
Balance as of December 31, 2010 . . . $3,176 $677 $295 $4,148 Estimated amortization expense for intangible assets in each of the next five
years and thereafter is as follows: $138 million in 2011; $91 million in 2012;
$46 million in 2013; $38 million in 2014, $30 million in 2015 and $299 million
Satellite Rights
thereafter.
Sky Brazil has entered into an agreement for the right to use a replacement
We performed our annual impairment tests for goodwill and orbital slots in
satellite in the event its existing leased satellite suffers a significant failure. The
the fourth quarters of 2010, 2009 and 2008. The estimated fair values for each
satellite was launched in March 2010 and we recorded the total obligations for the
reporting unit and the orbital slots exceeded our carrying values, and accordingly,
right to use the satellite of $116 million in ‘‘Intangible Assets’’ in the Consolidated
no impairment losses were recorded during 2010, 2009 or 2008. Additionally, there
Balance Sheets, including payments made to date of $29 million. As of
are no accumulated impairment losses as of December 31, 2010 and 2009.
December 31, 2010, the remaining $87 million of required payments is recorded in
‘‘Accounts payable and accrued liabilities’’ in the Consolidated Balance Sheets, the
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