DIRECTV 2010 Annual Report Download - page 96

DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Note 7: Investments accounts allocated to goodwill and definite lived intangibles attributable to affiliate
and advertising relationships. We recognized $25 million in 2010, 2009 and 2008
Equity Method Investments of amortization on definite lived intangibles in equity earnings of Sky Mexico.
The following table sets forth the book value of our investments which we Game Show Network. As result of the Liberty Transaction on November 19,
account for under the equity method of accounting: 2009, DIRECTV and Sony Pictures Entertainment, or Sony, a division of Sony
As of December 31, Corporation of America, which is a subsidiary of Sony Corporation, own 65% and
2010 2009 35% of GSN, respectively. GSN owns and operates a basic cable network dedicated
(Dollars in Millions) to game-related programming and Internet interactive game playing. Due to certain
Sky Mexico ................................. $ 501 $ 484 governance arrangements which limit DIRECTV’s ability to control GSN, we
GSN ..................................... 446 462 account for GSN as an equity method investment.
Other equity method investments .................. 139 130 DIRECTV accounts for the excess of the carrying value for its investment in
Total investments accounted for the equity method of GSN over DIRECTV’s share of GSN’s equity in memo accounts allocated to
accounting ................................ $1,086 $1,076 goodwill and definite lived intangibles attributable to affiliate and advertising
relationships. We recognized $12 million in 2010 and $1 million in 2009 of
We paid cash of $11 million in 2009 and $96 million in 2008 to acquire amortization on definite lived intangibles in equity earnings of GSN.
interests in companies we account for under the equity method of accounting. We received cash dividends of $78 million in 2010, $94 million in 2009 and
The following table sets forth equity in earnings and losses of our investments $35 million in 2008 from companies that we account for under the equity method.
accounted for under the equity method of accounting for the periods presented:
Other Investments
Years Ended
December 31, We had investments in marketable equity securities of $29 million as of
2010 2009 2008 December 31, 2010 and $31 million as of December 31, 2009, which were stated
(Dollars in Millions) at current fair value and classified as available-for-sale. We calculated the fair values
Sky Mexico ................................ $33 $32 $63 based on quoted market prices of our investments, which is a Level 1 input under
GSN..................................... 33 — — accounting standards for fair value measurement.
Other .................................... 24 19 (8)
Accumulated unrealized gains, net of taxes, included as part of accumulated
Total equity earnings for investments accounted for under other comprehensive income were $9 million as of December 31, 2010, $8 million
the equity method of accounting ................. $90 $51 $55 as of December 31, 2009 and $1 million as of December 31, 2008.
In 2009, we recognized a $45 million charge for the other than temporary
Sky Mexico. DIRECTV accounts for the excess of the carrying value for its
impairment of certain of our investments.
investment in Sky Mexico over DIRECTV’s share of Sky Mexico’s equity in memo
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