DIRECTV 2005 Annual Report Download - page 93

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS —(continued)
operating profit (loss) excluding the HNS operations that were contributed as part of the SkyTerra
transaction and HNS’ set-top receiver manufacturing operations that were sold in June 2004:
Years Ended
December 31,
2005 2004
(Dollars in Millions)
Revenues ............................................. $12,956.7 $10,437.9
Operating Profit (Loss) ................................... 693.4 (340.9)
PanAmSat
In 2004, we sold our approximately 80.4% interest in PanAmSat to an affiliate of Kohlberg Kravis
Roberts & Co. L.P. for approximately $2.64 billion in cash. The total loss on the sale of PanAmSat of
$723.7 million, net of taxes, for the year ended December 31, 2004 includes direct costs associated with
the transaction and our retention of certain tax liabilities of PanAmSat.
Operating results of the discontinued operations of PanAmSat were as follows:
Years Ended
December 31,
2004 2003
(Dollars in Millions)
Revenues .............................................. $518.9 $831.0
Income before income taxes ................................ $ 65.3 $134.5
Income tax expense ....................................... (3.6) (30.4)
Minority interests and other ................................ (13.6) (29.7)
Net income from discontinued operations, net of taxes ............. $ 48.1 $ 74.4
Hughes Software Systems
In the second quarter of 2004, HNS agreed to sell its approximate 55% ownership interest in HSS
for $226.5 million in cash, which we received in June 2004. We recognized an after-tax gain of
approximately $90.7 million ($176.1 million pre-tax) during 2004, included in ‘‘Income (loss) from
discontinued operations, net of taxes’’ in our Consolidated Statements of Operations.
Operating results of the discontinued operations of HSS are as follows:
Years Ended
December 31,
2004 2003
(Dollars in Millions)
Revenues .............................................. $26.0 $51.0
Income before income taxes ................................ $ 5.4 $17.2
Income tax expense ....................................... (0.6) (2.0)
Minority interests and other ................................ (2.1) (6.8)
Net income from discontinued operations, net of taxes ............. $ 2.7 $ 8.4
80