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1
Contents
1 Financial Highlights
2 A Message to Shareholders
9 HUGHES’ 2002 Form 10-K
Financial Highlights
For The Years Ended December 31, 2002 2001 2000(1)
(Dollars in Millions)
Total revenues $ 8,935 $ 8,264 $7,288
EBITDA (2) 668 390 594
Operating loss (399) (758) (354)
Loss from continuing operations
before cumulative effect of
accounting changes (213) (614) (355)
Income from discontinued operations,
net of taxes – – 36
Gain on sale of discontinued operations,
net of taxes – – 1,132
Cumulative effect of accounting
changes, net of taxes (681) (8) –
Net income (loss) (894) (622) 813
Average Class H dividend base
(in millions)(denominator) 1,343 1,300 1,297
Capital expenditures $ 1,298 $ 1,744 $ 1,716
At Year-End
Cash and cash equivalents $ 1,129 $ 700 $1,508
Total current assets 3,656 3,341 4,154
Total assets 17,885 19,210 19,279
Total current liabilities 3,203 4,407 2,691
Total debt 3,118 2,647 1,317
Total stockholder’s equity 9,977 11,072 12,326
Number of employees (in thousands) 12 14 12
(1) Results reported reflect Hughes’ satellite systems manufacturing businesses as discontinued operations due to the sale of
such businesses to The Boeing Company on October 6, 2000.
(2) EBITDA is defined as operating profit (loss), plus depreciation and amortization. EBITDA is not presented as an alter-
native measure of operating results or cash flow from operations, as determined in accordance with accounting princi-
ples generally accepted in the United States of America. Hughes management uses EBITDA to evaluate the
operating performance of Hughes and its business segments, to allocate resources and capital to its business segments
and as a measure of performance for incentive compensation purposes. Hughes believes EBITDA is a measure of
performance used by some investors, equity analysts and others to make informed investment decisions. EBITDA is
used as an analytical indicator of income generated to service debt and fund capital expenditures. In addition, multi-
ples of current or projected EBITDA are used to estimate current or prospective enterprise value. Hughes manage-
ment believes that EBITDA is a common measure used to compare Hughes' operating performance and enterprise
value to other communications, entertainment and media service providers. EBITDA does not give effect to cash
used for debt service requirements. As a result, EBITDA does not reflect funds available for investment in the busi-
ness of Hughes, dividends or other discretionary uses. EBITDA as presented herein may not be comparable to simi-
larly titled measures reported by other companies.
DIRECTV
U.S.
DIRECTV
Latin
America
PanAmSat
Hughes
Network
Systems
Eliminations
and Other
Total
$6.4
$0.7
$0.8
$1.2
($0.2)
$8.9
2002
Revenue
($B)
$564
($202)
$592
($87)
($199)
$668
2002
EBITDA
($M)