DIRECTV 2002 Annual Report Download - page 106

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HUGHES ELECTRONICS CORPORATION
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (continued)
2002 equity losses from unconsolidated affiliates are primarily comprised of losses at the DLA
local operating companies. 2001 equity losses from unconsolidated affiliates are primarily comprised of
losses at the DLA LOC’s and Hughes Tele.com (India) Limited (“HTIL”), and in 2000, DIRECTV Japan.
Note 15: Related-Party Transactions
In the ordinary course of its operations, Hughes sells products and services to related parties,
which include GM and equity method investees. During the years ended December 31, 2002, 2001
and 2000, Hughes sold telecommunications services and equipment to GM and HTIL, and sold
broadcast programming and other services to DLA LOC’s located in Puerto Rico, Venezuela and
Argentina. As a result of the HTIL and Galaxy Entertainment Argentina S.A. (“GEA”) transactions
described in Note 18, HTIL and GEA are not considered related parties subsequent to the completion
of those transactions on December 6, 2002 and May 1, 2001, respectively.
The following table summarizes significant related-party transactions for the years ended
December 31:
2002 2001 2000
(Dollars in Millions)
Revenues ............................................... $211.1 $238.8 $243.3
Costs and expenses ...................................... 117.9 126.2 149.9
The following table sets forth the amounts of accounts receivable from related parties as of
December 31:
2002 2001
(Dollars in Millions)
Accounts receivable from related parties ............................ $317.4 $237.7
Long-term accounts receivable from related parties ................... — 75.8
The December 31, 2002 accounts receivable balance is primarily from DLA LOC’s.
Note 16: Available Separate Consolidated Net Income (Loss)
GM Class H common stock is a “tracking stock” of GM designed to provide holders with financial
returns based on the financial performance of Hughes. Holders of GM Class H common stock have no
direct rights in the equity or assets of Hughes, but rather have rights in the equity and assets of GM
(which includes 100% of the stock of Hughes).
Amounts available for the payment of dividends on GM Class H common stock are based on the
Available Separate Consolidated Net Income (Loss) (“ASCNI”) of Hughes. The ASCNI of Hughes is
determined quarterly and is equal to the net income (loss) of Hughes, excluding the effects of the GM
purchase accounting adjustment arising from GM’s acquisition of Hughes and reduced by the effects of
preferred stock dividends paid and/or payable to GM (earnings (loss) used for computation of ASCNI),
multiplied by a fraction, the numerator of which is equal to the weighted-average number of shares of
GM Class H common stock outstanding during the period and the denominator of which is a number
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