DIRECTV | 2013 | FY | 3


Note 7: Goodwill and Intangible Assets, Net

        The following table sets forth the changes in the carrying amounts of "Goodwill" in the Consolidated Balance Sheets by segment for the years ended December 31, 2013 and 2012:

 
   
 
DIRECTV Latin America
 
Sports
Networks,
Eliminations
and Other
   
 
 
 
DIRECTV
U.S.
 
Sky Brasil
 
PanAmericana and Other
 
Total
 
 
  (Dollars in Millions)
 

Balance as of January 1, 2012

  $ 3,177   $ 414   $ 211   $ 295   $ 4,097  

Sky Brasil foreign currency translation adjustment

        (34 )           (34 )
                       

Balance as of December 31, 2012

    3,177     380     211     295     4,063  

Sky Brasil foreign currency translation adjustment

        (49 )           (49 )

DSN Northwest Transaction

                (73 )   (73 )

Acquisitions

    14     15             29  
                       

Balance as of December 31, 2013

  $ 3,191   $ 346   $ 211   $ 222   $ 3,970  
                       
                       

        The following table sets forth the components for "Intangible assets, net" in the Consolidated Balance Sheets as of:

 
   
 
December 31, 2013
 
December 31, 2012
 
 
 
Estimated
Useful
Lives
(years)
 
Gross
Amount
 
Accumulated
Amortization
 
Net
Amount
 
Gross
Amount
 
Accumulated
Amortization
 
Net
Amount
 
 
   
  (Dollars in Millions)
 

Orbital slots

    Indefinite   $ 432   $   $ 432   $ 432   $   $ 432  

Satellite rights

    15     88     22     66     101     19     82  

Subscriber related

    5-10     363     336     27     383     371     12  

Dealer network

    15     130     127     3     130     117     13  

Trade name, spectrum licenses and other

    4-20     350     61     289     174     46     128  

Distribution agreements

    6-20     123     20     103     208     43     165  
                                 

Total intangible assets

        $ 1,486   $ 566   $ 920   $ 1,428   $ 596   $ 832  
                                 

        Amortization expense of intangible assets was $48 million in 2013, $95 million in 2012 and $136 million in 2011.

        Estimated amortization expense for intangible assets in each of the next five years and thereafter is as follows: $50 million in 2014, $45 million in 2015, $44 million in 2016, $44 million in 2017, $41 million in 2018 and $264 million thereafter.

        We performed our annual impairment tests for goodwill and orbital slots in the fourth quarters of 2013, 2012 and 2011. The estimated fair values for each reporting unit and the orbital slots exceeded our carrying values, and accordingly, no impairment losses were recorded during 2013, 2012 or 2011. Additionally, there are no accumulated impairment losses as of December 31, 2013 and 2012.


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