DIRECTV 2004 Annual Report Download - page 51

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THE DIRECTV GROUP, INC.
higher pre-tax losses in 2003. This increase was partially offset by losses in foreign jurisdictions where we do not currently
recognize the tax benefit associated with such losses and favorable audit resolutions and refund claim settlements with various
tax authorities in 2002.
Income (Loss) from Discontinued Operations. Income (loss) from discontinued operations, net of taxes, which includes the
results of operations of discontinued businesses and the loss recorded for the disposition of those operations, is as follows:
2003
2002
Change
(Dollars in Millions)
Income (loss) from discontinued operations, net of taxes
$
82.8
$
(4.8
)
$
87.6
Loss on sale of discontinued operations, net of taxes
(4.7
)
(92.8
)
88.1
Income (loss) from discontinued operations, net of taxes
$
78.1
$
(97.6
)
$
175.7
Included in income (loss) from discontinued operations, net of taxes for 2003 and 2002 are income from discontinued
operations of PanAmSat, net of taxes, of $74.4 million and $79.5 million in 2003 and 2002, respectively. Also included in 2002
is loss from discontinued operations of DIRECTV Broadband, net of taxes, of $88.9 million.
The $92.8 million loss on sale of discontinued operations, net of taxes, in 2002 is related to a charge recorded for the shutdown
of DIRECTV Broadband.
Cumulative Effect of Accounting Changes. As a result of our adoption of FIN 46, we began consolidating the Venezuelan and
Puerto Rican LOCs on July 1, 2003. The adoption of this standard resulted in an after-tax charge of $64.6 million in the third
quarter of 2003, which was recorded as a cumulative effect of accounting change in the Consolidated Statements of Operations.
We adopted Statement of Financial Accounting Standards, or SFAS, No. 142, “Goodwill and Other Intangible Assets,” on
January 1, 2002. The adoption of this standard resulted in the discontinuation of amortization of goodwill and intangible assets
with indefinite lives. In accordance with the transition provisions of SFAS No. 142, on January 1, 2002, we recorded a one-time
after-tax charge of $681.3 million related to the initial impairment test as a cumulative effect of accounting change in the
Consolidated Statements of Operations.
42