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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS —(continued)
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. As a result of this sale, we recognized a
$90.7 million gain, net of taxes, 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
(Dollars in
Millions)
Revenues .................................................... $26.0
Income before income taxes ....................................... $ 5.4
Income tax expense ............................................. (0.6)
Minority interests and other ....................................... (2.1)
Net income from discontinued operations, net of taxes ................... $ 2.7
Other Discontinued Operations
As discussed in more detail in Note 20, during 2005, we recorded a $31.3 million gain in ‘‘Income
(loss) from discontinued operations, net of taxes’’ in our Consolidated Statements of Operations that
resulted from a favorable tax settlement related to a previously discontinued operation.
‘‘Income (loss) from discontinued operations, net of taxes,’’ as reported in the Consolidated
Statements of Operations, is comprised of the following:
Years Ended December 31,
2005 2004
(Dollars in Millions, Except
Per Share Amounts)
Income from discontinued operations, net of taxes ............ $ — $ 50.8
Gain (loss) on sale of discontinued operations, net of taxes ...... 31.3 (633.1)
Income (loss) from discontinued operations, net of taxes ...... $31.3 $(582.3)
Basic and Diluted Earnings (Loss) Per Common Share:
Income from discontinued operations, net of taxes ............ $ — $ 0.04
Gain (loss) on sale of discontinued operations, net of taxes ...... 0.02 (0.46)
Income (loss) from discontinued operations, net of taxes .... $0.02 $ (0.42)
Severance and Related Costs
As a result of the transactions above, as well as our split-off from General Motors on
December 22, 2003, during 2004 we recognized $169.5 million in charges for retention benefits,
severance and related costs under our pension benefit plans in ‘‘General and administrative expenses’’
in the Consolidated Statements of Operations. We recorded $113.0 million of charges at Corporate and
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