DIRECTV 2012 Annual Report Download - page 121

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
that the ultimate outcome will not have a material effect on our consolidated orbital slots to mitigate the impact a satellite failure could have on our ability to
financial position and result of operations. provide service. At December 31, 2012, the net book value of in-orbit satellites was
$1,664 million all of which was uninsured.
Satellites
Other
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 We are contingently liable under standby letters of credit and bonds in the
considered economic relative to the risk of satellite failure. The insurance generally aggregate amount of $167 million at December 31, 2012 primarily related to a
covers the unamortized book value of covered satellites. We do not insure against judicial deposit in Brazil for the ECAD matter discussed above, and insurance
lost revenues in the event of a total or partial loss of the capacity of a satellite. We deductibles.
generally rely on in-orbit spare satellites and excess transponder capacity at key
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