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.