DIRECTV 2012 Annual Report Download - page 92

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Note 4: Acquisition Note 6: Satellites, Net and Property and Equipment, Net
Globo Transaction The following table sets forth the amounts recorded for ‘‘Satellites, net’’ and
‘‘Property and equipment, net’’ in our Consolidated Balance Sheets as of
In connection with our acquisition of Sky Brasil in 2006, our partner who December 31:
holds the remaining 7% interest, Globo Comunica¸c˜
oes e Participa¸c˜
oes S.A., or
Globo, was granted the right, until January 2014, to require us to purchase all or a Estimated
Useful Lives
portion (but not less than half) of its 25.9% interest in Sky Brasil. Upon the (years) 2012 2011
exercise of this right in the fourth quarter of 2010, we paid $605 million in cash, (Dollars in Millions)
which was the fair value of the approximate 19% interest purchased, and recorded a Satellites ........................... 10-16 $ 3,188 $ 3,206
reduction to ‘‘Redeemable noncontrolling interest’’ in the Consolidated Balance Satellites under construction .............. — 693 302
Sheets. In addition, we recorded $79 million of net deferred tax assets related to the
Total ............................. 3,881 3,508
acquisition of this interest as an offset to ‘‘Common stock and additional paid-in
Less: Accumulated depreciation ............ (1,524) (1,293)
capital’’ in the Consolidated Balance Sheets. We and our subsidiaries now own 93%
of Sky Brasil and Globo owns the remaining 7%. Satellites, net ...................... $ 2,357 $ 2,215
In accordance with our agreement, Globo will have the right to exchange all Land and improvements ................ 9-30 $ 44 $ 44
(but not less than all) of its remaining equity interest in Sky Brasil until January Buildings and leasehold improvements ....... 2-40 441 406
2014. Machinery and equipment ............... 2-23 1,988 1,947
Capitalized software ................... 3 2,392 2,198
Note 5: Accounts Receivable, Net Subscriber leased set-top equipment ......... 3-7 9,053 8,105
Construction in-progress ................ — 750 418
The following table sets forth the amounts recorded for ‘‘Accounts receivable,
Total ............................. 14,668 13,118
net’’ in our Consolidated Balance Sheets as of December 31:
Less: Accumulated depreciation ............ (8,630) (7,895)
2012 2011 Property and equipment, net ........... $ 6,038 $ 5,223
(Dollars in Millions)
Subscriber .................................. $1,804 $1,639 We capitalized interest costs of $24 million in 2012, $13 million in 2011 and
Telco ..................................... 459 512 $6 million in 2010 as part of the cost of our property and satellites under
Trade and other .............................. 514 402 construction. Depreciation expense, including amortization of property and
Total ..................................... 2,777 2,553 equipment and satellites held under capital leases, was $2,342 million in 2012,
Less: Allowance for doubtful accounts ............... (81) (79) $2,213 million in 2011 and $2,292 million in 2010.
Accounts receivable, net ....................... $2,696 $2,474
72