DTV » Topics » Equity Method Investments

This excerpt taken from the DTV 8-K filed Jun 1, 2009.

Equity Method Investments

        We have investments in companies that we account for under the equity method of accounting totaling $667 million as of December 31, 2008 and $551 million as of December 31, 2007.

        We paid cash of $96 million in 2008, $13 million in 2007 and $381 million in 2006 to acquire interests in companies we account for under the equity method of accounting. As discussed in Note 17, we acquired a 41% interest in Sky Mexico in 2006. The book value of our investment in Sky Mexico was $537 million at December 31, 2008 and $505 million at December 31, 2007.

        The following table sets forth equity in earnings of our 41% interest in Sky Mexico for the periods presented:

 
 
Years Ended December 31,
 
 
 
2008
 
2007
 
2006
 
 
  (Dollars in Millions)
 

Equity in earnings of Sky Mexico

  $ 63   $ 41   $ 18  

        We received cash dividends of $35 million in 2008 from companies that we account for under the equity method.

16



THE DIRECTV GROUP, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)

        In January 2006, we completed the sale of our 50% interest in HNS LLC to SkyTerra Communications, Inc. and resolved a working capital adjustment from a prior transaction with SkyTerra in exchange for $110 million in cash, which resulted in our recording a gain of $14 million related to the sale, in addition to equity earnings of HNS LLC of $11 million in "Other, net" in the Consolidated Statements of Operations.

These excerpts taken from the DTV 10-K filed Feb 27, 2009.

Equity Method Investments

        We have investments in companies that we account for under the equity method of accounting totaling $667 million as of December 31, 2008 and $551 million as of December 31, 2007.

78



THE DIRECTV GROUP, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)

        We paid cash of $96 million in 2008, $13 million in 2007 and $381 million in 2006 to acquire interests in companies we account for under the equity method of accounting. As discussed in Note 17, we acquired a 41% interest in Sky Mexico in 2006. The book value of our investment in Sky Mexico was $537 million at December 31, 2008 and $505 million at December 31, 2007.

        The following table sets forth equity in earnings of our 41% interest in Sky Mexico for the periods presented:

 
 
Years Ended December 31,
 
 
 
2008
 
2007
 
2006
 
 
  (Dollars in Millions)
 

Equity in earnings of Sky Mexico

  $ 63   $ 41   $ 18  

        We received cash dividends of $35 million in 2008 from companies that we account for under the equity method.

        In January 2006, we completed the sale of our 50% interest in HNS LLC to SkyTerra Communications, Inc. and resolved a working capital adjustment from a prior transaction with SkyTerra in exchange for $110 million in cash, which resulted in our recording a gain of $14 million related to the sale, in addition to equity earnings of HNS LLC of $11 million in "Other, net" in the Consolidated Statements of Operations.

Equity Method Investments

        We have investments in companies that we account for under the equity method of accounting totaling $667 million as of December 31, 2008 and $551 million as of December 31, 2007.

78



THE DIRECTV GROUP, INC.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)

        We paid cash of $96 million in 2008, $13 million in 2007 and $381 million in 2006 to acquire interests in companies we account for under the equity method of accounting. As discussed in Note 17, we acquired a 41% interest in Sky Mexico in 2006. The book value of our investment in Sky Mexico was $537 million at December 31, 2008 and $505 million at December 31, 2007.

        The following table sets forth equity in earnings of our 41% interest in Sky Mexico for the periods presented:

 
 
Years Ended December 31,
 
 
 
2008
 
2007
 
2006
 
 
  (Dollars in Millions)
 

Equity in earnings of Sky Mexico

  $ 63   $ 41   $ 18  

        We received cash dividends of $35 million in 2008 from companies that we account for under the equity method.

        In January 2006, we completed the sale of our 50% interest in HNS LLC to SkyTerra Communications, Inc. and resolved a working capital adjustment from a prior transaction with SkyTerra in exchange for $110 million in cash, which resulted in our recording a gain of $14 million related to the sale, in addition to equity earnings of HNS LLC of $11 million in "Other, net" in the Consolidated Statements of Operations.

Equity Method Investments




        We have investments in companies that we account for under the equity method of accounting totaling $667 million as of
December 31, 2008 and $551 million as of December 31, 2007.



78









THE DIRECTV GROUP, INC.



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)




        We
paid cash of $96 million in 2008, $13 million in 2007 and $381 million in 2006 to acquire interests in companies we account for under the equity method of
accounting. As discussed in Note 17, we acquired a 41% interest in Sky Mexico in 2006. The book value of our investment in Sky Mexico was $537 million at December 31, 2008 and
$505 million at December 31, 2007.



        The
following table sets forth equity in earnings of our 41% interest in Sky Mexico for the periods presented:






















































 
 
Years Ended December 31,



 
 
 
2008



 
2007



 
2006



 
 
 (Dollars in Millions)
 

Equity in earnings of Sky Mexico

 $63 $41 $18 




        We
received cash dividends of $35 million in 2008 from companies that we account for under the equity method.



        In
January 2006, we completed the sale of our 50% interest in HNS LLC to SkyTerra Communications, Inc. and resolved a working capital adjustment from a prior transaction
with SkyTerra in exchange for $110 million in cash, which resulted in our recording a gain of $14 million related to the sale, in addition to equity earnings of HNS LLC of
$11 million in "Other, net" in the Consolidated Statements of Operations.




Equity Method Investments




        We have investments in companies that we account for under the equity method of accounting totaling $667 million as of
December 31, 2008 and $551 million as of December 31, 2007.



78









THE DIRECTV GROUP, INC.



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)




        We
paid cash of $96 million in 2008, $13 million in 2007 and $381 million in 2006 to acquire interests in companies we account for under the equity method of
accounting. As discussed in Note 17, we acquired a 41% interest in Sky Mexico in 2006. The book value of our investment in Sky Mexico was $537 million at December 31, 2008 and
$505 million at December 31, 2007.



        The
following table sets forth equity in earnings of our 41% interest in Sky Mexico for the periods presented:






















































 
 
Years Ended December 31,



 
 
 
2008



 
2007



 
2006



 
 
 (Dollars in Millions)
 

Equity in earnings of Sky Mexico

 $63 $41 $18 




        We
received cash dividends of $35 million in 2008 from companies that we account for under the equity method.



        In
January 2006, we completed the sale of our 50% interest in HNS LLC to SkyTerra Communications, Inc. and resolved a working capital adjustment from a prior transaction
with SkyTerra in exchange for $110 million in cash, which resulted in our recording a gain of $14 million related to the sale, in addition to equity earnings of HNS LLC of
$11 million in "Other, net" in the Consolidated Statements of Operations.




These excerpts taken from the DTV 10-K filed Feb 25, 2008.

Equity Method Investments

        We have investments in companies that we accounted for under the equity method of accounting totaling $551 million as of December 31, 2007 and $510 million as of December 31, 2006.

        As discussed in Note 3, we acquired a 41% interest in Sky Mexico in 2006. The book value of our investment in Sky Mexico was $505 million at December 31, 2007 and $464 million at December 31, 2006.

        The following table sets forth equity in earnings of our 41% interest in Sky Mexico for the periods presented:

 
  Years Ended
December 31,

 
  2007
  2006
 
  (Dollars in Millions)

Equity in earnings of Sky Mexico   $ 41   $ 18

        In January 2006, we completed the sale of our 50% interest in HNS LLC to SkyTerra Communications, Inc. and resolved a working capital adjustment from a prior transaction in exchange for $110 million in cash, which resulted in our recording a gain of $14 million related to the sale, in addition to equity earnings of HNS LLC of $11 million in "Other, net" in the Consolidated Statements of Operations.

Equity Method Investments





        We have investments in companies that we accounted for under the equity method of accounting totaling $551 million as of December 31, 2007 and
$510 million as of December 31, 2006.



        As
discussed in Note 3, we acquired a 41% interest in Sky Mexico in 2006. The book value of our investment in Sky Mexico was $505 million at December 31, 2007 and
$464 million at December 31, 2006.



        The
following table sets forth equity in earnings of our 41% interest in Sky Mexico for the periods presented:































 
 Years Ended

December 31,

 
 2007
 2006
 
 (Dollars in Millions)

Equity in earnings of Sky Mexico $41 $18




        In
January 2006, we completed the sale of our 50% interest in HNS LLC to SkyTerra Communications, Inc. and resolved a working capital adjustment from a prior transaction in
exchange for $110 million in cash, which resulted in our recording a gain of $14 million related to the sale, in addition to equity earnings of HNS LLC of $11 million in
"Other, net" in the Consolidated Statements of Operations.





This excerpt taken from the DTV 10-Q filed Nov 7, 2007.

Note 6: Equity Method Investments

        As discussed in Note 3 we acquired a minority equity interest in Sky Mexico in February 2006. The following table sets forth equity in earnings of our 41% interest in Sky Mexico for the periods presented:

 
  Three Months
Ended September 30,

  Nine Months
Ended September 30,

 
  2007
  2006
  2007
  2006
 
  (Dollars in Millions)

Equity in earnings of Sky Mexico   $ 13   $ 13   $ 31   $ 9

        In January 2006, we completed the sale of our 50% interest in HNS LLC to SkyTerra Communications, Inc. and resolved a working capital adjustment from a prior transaction in exchange for $110 million in cash, which resulted in our recording a gain of $14 million related to the sale, in addition to equity earnings of HNS LLC of $11 million in "Other, net" in the Consolidated Statements of Operations.

This excerpt taken from the DTV 10-Q filed Aug 9, 2007.

Note 6: Equity Method Investments

        As discussed in Note 3 we acquired a minority equity interest in Sky Mexico in February 2006. The following table sets forth equity in earnings (losses) of Sky Mexico for the periods presented:

 
  Three Months Ended
June 30,

  Six Months Ended
June 30,

 
 
  2007
  2006
  2007
  2006
 
 
  (Dollars in Millions)

 
Equity in earnings (losses) of Sky Mexico   $ 7   $ (1 ) $ 18   $ (4 )

        In January 2006, we completed the sale of our 50% interest in HNS LLC to SkyTerra Communications, Inc. and resolved a working capital adjustment from a prior transaction in exchange for $110 million in cash, which resulted in our recording a gain of $14 million related to the sale, in addition to equity earnings of HNS LLC of $11 million in "Other, net" in the Consolidated Statements of Operations.

9



This excerpt taken from the DTV 10-Q filed May 10, 2007.

Note 6: Equity Method Investments

        As discussed in Note 3 we acquired a minority equity interest in Sky Mexico in February 2006. During the three months ended March 31, 2007, we recorded equity earnings from our investment in Sky Mexico of $10.8 million. During the three months ended March 31, 2006, we recorded equity losses from our investment in Sky Mexico of $2.7 million.

        In January 2006, we completed the sale of our 50% interest in HNS LLC to SkyTerra Communications, Inc and resolved a working capital adjustment from a prior transaction in exchange for $110.0 million in cash, which resulted in our recording a gain of $13.5 million related to the sale, in addition to equity earnings of HNS LLC of $11.3 million in "Other, net" in the Consolidated Statements of Operations.

This excerpt taken from the DTV 10-K filed Mar 1, 2007.

Equity Method Investments

        We have investments in companies that we accounted for under the equity method of accounting totaling $509.6 million as of December 31, 2006 and $110.6 million as of December 31, 2005.

        As discussed in Note 3, we acquired a 41% interest in Sky Mexico in February 2006. The purchase price of our investment in Sky Mexico exceeded our proportionate share of Sky Mexico's underlying net assets by approximately $445.6 million on the date of acquisition. We have allocated the excess purchase price to amortizable intangibles of $242.0 million, deferred tax liabilities of $70.2 million and

84



to goodwill of $273.8 million. During the year ended December 31, 2006, we recorded equity in earnings of $18.1 million from our investment in Sky Mexico, which is net of amortization of $22.3 million.

This excerpt taken from the DTV 10-Q filed Nov 9, 2006.

Equity Method Investments

        As discussed in Note 5, we acquired a 41% interest in Sky Mexico in February 2006. The purchase price of our investment in Sky Mexico exceeded our proportionate share of Sky Mexico's underlying net assets by approximately $450 million on the date of acquisition. We have allocated the excess purchase price to both amortized intangible assets and to goodwill based upon a preliminary valuation. We expect to complete our final valuation and allocation later in 2006. During the three months ended September 30, 2006, we recorded equity income from our investment in Sky Mexico of $12.5 million, including amortization expense of $3.5 million. During the nine months ended September 30, 2006, we

11



recorded equity income of $8.6 million from our investment in Sky Mexico, including amortization expense of $15.4 million.

        See Note 5 regarding the sale of our investment in HNS LLC during the first quarter of 2006.

This excerpt taken from the DTV 10-Q filed Aug 8, 2006.

Equity Method Investments

        As discussed in Note 4, we acquired an equity interest in Sky Mexico in February 2006. The purchase price of our investment in Sky Mexico exceeded our proportionate share of Sky Mexico's underlying net assets by approximately $450 million on the date of acquisition. We have allocated the excess purchase price to both amortized intangible assets and to goodwill based upon a preliminary valuation. We expect to complete our final valuation and allocation later in 2006. During the three months ended June 30, 2006, we recorded equity losses from our investment in Sky Mexico of $1.2 million, including amortization expense of $7.9 million. During the six months ended June 30, 2006, we recorded equity losses from our investment in Sky Mexico of $3.9 million, including amortization expense of $11.9 million.

        See Note 4 regarding the sale of our investment in HNS LLC during the first quarter of 2006.

This excerpt taken from the DTV 10-Q filed May 8, 2006.

Equity Method Investments

        As discussed in Note 4, we acquired an equity interest in Sky Mexico in February 2006. The purchase price of our investment in Sky Mexico exceeded our proportionate share of Sky Mexico's underlying net assets by approximately $450 million on the date of acquisition. We have allocated the excess purchase price to both amortized intangible assets and to indefinite-lived intangible assets and goodwill based upon a preliminary valuation. We expect to complete our final valuation and allocation later in 2006. During the first quarter of 2006, we recorded equity losses from our investment in Sky Mexico of $2.7 million, including amortization expense of $4.0 million.

        See Note 4 regarding the sale of our investment in HNS LLC during the first quarter of 2006.

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