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GMHE ADOPTS NEW RETIREMENT BENEFITS ACCOUNTING STANDARD

 LOS ANGELES, Feb. 1 /PRNewswire/ -- GM Hughes Electronics (GMHE) today announced it will adopt, retroactive to Jan. 1, 1992, a new accounting standard governing the reporting of retiree benefits other than pensions -- primarily health care benefits.
 The adoption of the Statement of Financial Accounting Standards No. 106 (SFAS 106) -- also known as "Employers' Accounting for Postretirement Benefits Other Than Pensions" -- will result in a one- time charge affecting 1992 earnings, as well as ongoing charges that will affect earnings in 1992 and future years. The adoption of the standard will not affect GMHE's cash flow nor its ability to support GM's payment of dividends on GM Class H common stock.
 The one-time non-cash charge, known as the transition obligation, totals $832 million after tax, or $2.08 per share of GM Class H common stock. It is a catch-up accrual to recognize the total cumulative expense for retiree health care benefits that GMHE would have recorded during the working years of its active and retired employees had the accounting standard been in effect during those years. The incremental ongoing annual non-cash expense in 1992 associated with the accounting standard amounts to $48 million after tax, or $0.11 per share of GM Class H common stock.
 The accounting charge does not affect GMHE's current cash flow. In the past, the cost for retiree health care benefits was recognized as a current expense at the time retirees received the benefits. The actual cash expenditures for retiree health care and life insurance benefits will continue to be made as retirees receive the benefits.
 GMHE's SFAS 106 liability reflects health care and life insurance benefits for employees, retirees and their dependents at both Delco Electronics Corp. and Hughes Aircraft Co. Depending on date of employment and other factors, employees of Delco Electronics and Hughes receive these benefits in accordance with the respective benefit plans of each company.
 -0- 2/1/93
 /CONTACT: Richard Dore of GM Hughes Electronics, 310-568-6324/


CO: GM Hughes Electronics ST: California IN: ARO SU:

KJ-LS -- LA045 -- 1609 02/01/93 19:42 EST
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Publication:PR Newswire
Date:Feb 1, 1993
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