DIRECTV 2012 Annual Report Download - page 93

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
The following table sets forth property and equipment leased to our Note 7: Goodwill and Intangible Assets, Net
subscribers as of December 31: The following table sets forth the changes in the carrying amounts of
‘‘Goodwill’’ in the Consolidated Balance Sheets by segment for the years ended
2012 2011
December 31, 2012 and 2011:
(Dollars in Millions)
Subscriber leased set-top equipment ................. $9,053 $ 8,105 Sports
Less: Accumulated depreciation of subscriber leased Networks,
DIRECTV Latin America
DIRECTV Eliminations
equipment ................................ (5,040) (4,618) U.S. Sky Brasil PanAmericana and Other Total
Subscriber leased set-top equipment, net .............. $4,013 $ 3,487 (Dollars in Millions)
Balance as of January 1,
As discussed above in Note 3, effective July 1, 2011, we began depreciating 2011 ........... $3,176 $466 $211 $295 $4,148
capitalized HD set-top receivers at DIRECTV U.S. over a four-year estimated Foreign currency
useful life. Previously, we depreciated HD set-top receivers at DIRECTV U.S. over translation
a three-year estimated useful life. We continue to depreciate SD set-top receivers at adjustment ....... — (52) — — (52)
Acquisition accounting
DIRECTV U.S. over a three-year useful life. At DIRECTV Latin America, we
adjustments ...... 1 — — — 1
depreciate capitalized subscriber leased equipment, which includes the cost of the
set-top receiver, installation and the dish. HD set-top-receivers have a three-year Balance as of
estimated useful life and SD set-top receivers have a seven-year estimated useful life. December 31, 2011 . 3,177 414 211 295 4,097
The useful life used to depreciate capitalized set-top receivers is based on, among Foreign currency
other things, management’s judgment of the risk of technological obsolescence. translation
Changes in the estimated useful lives of set-top receivers capitalized could result in adjustment ....... — (34) — — (34)
significant changes to the amounts recorded as depreciation expense. We regularly Balance as of
evaluate the estimate useful life of our capitalized set-top receivers. December 31, 2012 . $3,177 $380 $211 $295 $4,063
73