1. Intangible Assets

Use the note below from DirecTVs 2012 annual report to answer the questions.

1. Why does DirecTV not amortize its orbital slots?
2. Did DirectTV record any impairment of their intangibles for the period ending 12/31/2012 and 12/31/2011? If yes, how much was the impairment and what types of the intangibles were impaired? If no, why not?
3. Assume that DirectTV recognized $20 million impairment charge for its intangibles for the period ending 12/31/2012 (Ignore the actual footnote for this question). How does the impairment charge affect DirectTVs operating cash flows for the period?
4. Based on the value of Trade names and other, did DirecTV acquire another company during 2012? Justify your answer.

A. Intangible Assets Use the note below from DirecTV's 2012 annual report to answer the questions. The following table sets forth the components for "Intangible assets, net in the Consolidated Balance Sheets as of: December 31, 2012 December 31, 2011 Estimated Useful Lives years) $ Gross Accumulated Net Gross Accumulated Net Amount Amortization Amount Amount Amortization Amount (Dollars in Millions $ 432 $- 5432 $ 432 $432 19 82 110 12 383 371 130 117 - Indefinite 15 -10 15 101 98 Orbital slots ...... Satellite rights .... Subscriber related ... Dealer network....... Trade name and other ... Distribution agreements.. Total intangible assets ... 402 353 108 208 $1,428 $1,441 5532 Amortization expense of intangible assets was $95 million in 2012, $136 million in 2011 and $190 million in 2010. Estimated amortization expense for intangible assets in each of the next five years and thereafter is as follows: $58 million in 2013, $50 million in 2014, $45 million in 2015, $24 million in 2016, $24 million in 2017 and $199 million thereafter. We performed our annual impairment tests for goodwill and orbital slots in the fourth quarters of 2012, 2011 and 2010. The estimated fair values for each reporting unit and the orbital slots exceeded our carrying values, and accordingly, no impairment losses were recorded during 2012, 2011 or 2010. Additionally, there are no accumulated impairment losses as of December 31, 2012 and 2011. a. Why does DirecTV not amortize its orbital slots? b. Did DirectTV record any impairment of their intangibles for the period ending 12/31/2012 and 12/31/2011? If yes, how much was the impairment and what types of the intangibles were impaired? If no, why not? Assume that DirectTV recognized $20 million impairment charge for its intangibles for the period ending 12/31/2012 (Ignore the actual footnote for this question). How does the impairment charge affect DirectTV's operating cash flows for the period? Based on the value of Trade names and other, did DirecTV acquire another company during 2012? Justify your