Dish Network 1997 Annual Report Download

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(b) OF THE SECURITIES EXCHANGE ACT OF
1934
For the transition period from _______________ to ________________.
Commission file number: 0-26176
EchoStar Communications Corporation
(Exact name of registrant as specified in its charter)
Nevada 88-0336997
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
5701 S. Santa Fe
Littleton, Colorado 80120
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code: (303) 723-1000
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: Class A Common Stock, $0.01 par value
6 ¾% Series C Cumulative Convertible Preferred Stock
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of Registrants knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]
As of March 13, 1998, the aggregate market value of Class A Common Stock held by non-affiliates* of the
Registrant approximated $166 million based upon the closing price of the Class A Common Stock as reported on the
Nasdaq National Market as of the close of business on that date.
As of March 13, 1998, the Registrants outstanding Common stock consisted of 15,009,629 shares of Class A
Common Stock and 29,804,401 shares of Class B Common Stock, each $0.01 par value.
DOCUMENTS INCORPORATED BY REFERENCE
The following documents are incorporated into this Form 10-K by reference:
Portions of the Registrants definitive Proxy Statement to be filed in connection with the Annual Meeting of
Shareholders of Registrant to be held May 22, 1998 are incorporated by reference in Part III herein.
*Without acknowledging that any individual director or executive officer of the Company is an affiliate, the shares
over which they have voting control have been included as owned by affiliates solely for purposes of this
computation.

Table of contents

  • Page 1
    .... Commission file number: 0-26176 EchoStar Communications Corporation (Exact name of registrant as specified in its charter) Nevada (State or other jurisdiction of incorporation or organization) 5701 S. Santa Fe Littleton, Colorado (Address of principal executive offices) 88-0336997 (I.R.S. Employer...

  • Page 2
    ...Certain Relationships and Related Transactions ...PART IV Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K...39 38 38 38 38 27 28 29 37 37 1 25 25 26 Signatures...45 Index to Financial Statements ...F-1 DISH NetworkSM is a service mark of EchoStar Communications Corporation...

  • Page 3
    ...three interrelated business units: • The DISH Network - a DBS subscription television service in the United States. As of December 31, 1997, EchoStar had approximately 1,040,000 DISH Network subscribers. Technology - the design, manufacture, distribution and sale of DBS set-top boxes, antennae and...

  • Page 4
    ..." strategy with respect to programming packages available on the DISH Network. For example, the DISH Network' s entry level " America' s Top 40" programming package is priced at $19.99 per month, compared to, on average, over $30 per month for comparable cable television service. The DISH Network...

  • Page 5
    ... the DISH Network' s authorization center by telephone to report the purchase of pay-per-view movies and events. The EchoStar DBS System integrates digital video and audio compression. Authorization information for subscription programming is stored on microchips placed on a credit card-sized access...

  • Page 6
    ...set-top antenna), by subscribing to basic cable or, in certain areas of the United States, directly from the DISH Network. EchoStar Receiver Systems are available in a variety of models. The standard EchoStar Receiver System incorporates infrared remote control technology, an on-screen program guide...

  • Page 7
    ... a direct sales channel. Customers can call a single telephone number (1-800-333-DISH) 24 hours a day, seven days a week, to order EchoStar Receiver Systems, activate programming services, schedule installation and obtain technical support. EchoStar believes it is the only DBS provider to offer...

  • Page 8
    ... services and promotions periodically offered by the DISH Network. That channel is geared towards educating retailers, satellite dealers, and current and potential subscribers. EchoStar' s marketing programs and pricing strategies have significantly increased the affordability of EchoStar Receiver...

  • Page 9
    ...and the proximity of the request to the launch date. EchoStar has the right, in its sole discretion, to terminate the LKE Contract at any time, subject to the forfeiture of certain amounts paid to LKE. In addition, EchoStar has the right to terminate the LKE Contract and receive a full refund of all...

  • Page 10
    ... as DBS and other satellite programming, and companies developing new technologies. Many of EchoStar' s competitors have substantially greater financial and marketing resources than EchoStar. EchoStar expects that quality and variety of programming, quality of picture and service, and cost will be...

  • Page 11
    ... service offerings by leasing certain Ku-band frequencies at the 95° WL orbital location from a third party. If DirecTv successfully implements this business plan, it is expected that DirecTv' s subscribers could utilize one 30 to 36 inch satellite dish to receive both the DBS programming currently...

  • Page 12
    ..., EchoStar may incur a competitive disadvantage in marketing its DISH Network service to existing SBC and Bell Atlantic customers. PrimeStar currently offers medium power Ku-band programming service to customers using dishes approximately three feet in diameter. PrimeStar is owned by a group of...

  • Page 13
    ..., earlier market entry, greater number of channels, manufacturing alliances with low-cost, high-volume manufacturers with established retail distribution, possible volume discounts for programming offerings, and, in the case of PrimeStar, relationship with cable programmers, EchoStar is currently at...

  • Page 14
    ... broadcast affiliates begin transmission of local digital signals, consumer demand for EchoStar' s Network Affiliates programming may be adversely affected. Private Cable. Private cable is a multi-channel subscription television service where the programming is received by a satellite receiver and...

  • Page 15
    ... may increase in the future. Further, the technology business is expected to continue to support and create revenue opportunities for the DISH Network. For example, the design of digital set-top equipment for international DTH customers is performed by the same employees who design EchoStar Receiver...

  • Page 16
    ..., audio and data, primarily from EchoStar satellites, to customers for business television, educational and other applications. Satellite Services was initially established to address the markets that fall outside of the typical DISH Network residential market. Included within Satellite Services are...

  • Page 17
    ...by the U.S. Department of Commerce for the delivery of its manufactured products to overseas destinations. Finally, because EchoStar has engaged a Russian launch provider for EchoStar IV, U.S. export regulations apply to the delivery of the satellite and to providing related technical information to...

  • Page 18
    ... 1998, EchoStar began using 11 transponders on EchoStar III to broadcast DISH Network and Satellite Services programming using its 11 frequencies at 61.5° WL. Certain of EchoStar' s frequencies at 61.5° are being used to provide local broadcast network signals to consumers, subject to existing...

  • Page 19
    ... ten of the 16 transponders on EchoStar II to transmit DISH Network and Satellite Services programming to the continental U.S. from the 119° WL orbital slot. In July 1997, EchoStar filed a request for an STA to use the 11 channels assigned to Tempo at the 119° WL orbital location, on the grounds...

  • Page 20
    ... requirements. There can be no assurance that these new rules will not adversely affect EchoStar' s plans with respect to its licensed Ka-band system. In November 1996, EchoStar was granted conditional authorization for two Ku-band FSS satellites to be located at 83° WL and 121° WL, subject, among...

  • Page 21
    ... were to rule against EchoStar, a potential future business opportunity would be lost. In August 1997, GE Americom filed an application requesting modification of its license for a C-band/Ku-band satellite currently located at 89° WL, to allow relocation of that satellite to 83° WL. In support of...

  • Page 22
    ... to regulating pricing practices and competition within the cable television industry, the Cable Act was intended to establish and support existing and new providers of subscription television services, such as wireless cable and DBS. EchoStar has benefited from the programming access provisions of...

  • Page 23
    ... of Fox Sports programming than the terms currently available to EchoStar. The inability of EchoStar to secure better terms may adversely affect EchoStar' s relationship with Fox Sports. In November 1997, EchoStar filed a program access complaint against Fox/Liberty Networks LLC and fX Networks LLC...

  • Page 24
    ... in certain metropolitan areas. In addition, in its August 1997 report, the CARP recommended that the royalty rate for satellite retransmissions of distant network-affiliated station and distant superstation signals be set at 27 cents per subscriber per month, a substantial increase compared to the...

  • Page 25
    ...prior to the launch of EchoStar IV, significantly delaying and increasing the cost to launch EchoStar IV. Patents and Trademarks EchoStar uses a number of trademarks for its products and services, including "EchoStar®," "DISH Network™," "DISH NetworkSM," "America' s Top 40," "America' s Top 50 CD...

  • Page 26
    ... Chief Executive Officer Executive Vice President and Director President, DISH Network President, EchoStar Technologies Corporation Chief Operating and Financial Officer Senior Vice President, General Counsel and Secretary Senior Vice President, Satellite Services Treasurer and Controller Charles...

  • Page 27
    ...EchoStar Technologies Corporation office and distribution center...Office and distribution center ...Digital Broadcast Operations Center...Customer Service Center...European headquarters and warehouse...Warehouse facility...Item 3. Legal Proceedings Location Littleton, Colorado Englewood, Colorado...

  • Page 28
    ... the News Agreement. In May 1997, EchoStar filed a Complaint requesting that the Court confirm EchoStar' s position and declare that News is obligated pursuant to the News Agreement to lend $200 million to EchoStar without interest and upon such other terms as the Court orders. EchoStar also filed...

  • Page 29
    ..., all 29,804,401 outstanding shares of the Company' s Class B Common Stock were held by Charles W. Ergen, EchoStar' s Chief Executive Officer. There is currently no trading market for EchoStar' s Class B Common Stock. EchoStar has never declared or paid any cash dividends on any class of its common...

  • Page 30
    ... Revenue: DISH Network...DTH equipment sales and integration services ...Satellite services...C-band and other...Total revenue ...Costs and Expenses: DISH Network operating expenses ...Cost of sales - DTH equipment and integration services ...Cost of sales - C-band and other ...Marketing expenses...

  • Page 31
    ... interrelated business units: (i) the DISH Network; (ii) Technology; and (iii) Satellite Services. EchoStar' s principal business strategy is to continue developing its subscription television service in the U.S. to provide consumers with a fully viable alternative to cable television service. Key...

  • Page 32
    ... to continue as the number of DISH Network subscribers increases, and as EchoStar develops its Technology and Satellite Services businesses. Consistent with the increases in total revenue during 1997, EchoStar experienced a corresponding increase in trade accounts receivable at December 31, 1997...

  • Page 33
    ... million as compared to 1996. The increase in customer service center and other operating expenses was directly attributable to the operation of the DISH Network during the entirety of 1997, combined with the increase in the number of DISH Network subscribers. EchoStar expects DISH Network operating...

  • Page 34
    ... introduction of the DISH Network and was partially offset by decreased sales of domestic and international C-band equipment and decreased C-band programming revenues. The DISH Network commenced operation in March 1996. During 1996, DISH Network subscription television services revenues totaled $50...

  • Page 35
    ...and from cash generated from operations. EchoStar' s ability to generate positive future operating and net cash flows is dependent upon its ability to continue to rapidly expand its DISH Network subscriber base and its ability to grow its Technology and Satellite Services businesses. There can be no...

  • Page 36
    ... future working capital, capital expenditure and debt service requirements. EchoStar currently intends to use the majority of the net proceeds from the 1997 Offerings for the acquisition of DISH Network subscribers, the construction, launch and insurance of EchoStar IV, and other general corporate...

  • Page 37
    ... Common Stock Offering resulted in net proceeds to EchoStar of $63 million. In addition to its DBS business plan, EchoStar has applications pending with the FCC for a two satellite FSS Ku-band satellite system, a two satellite FSS Ka-band satellite system, a two satellite extended Ku-band satellite...

  • Page 38
    ... dividend and other payment restrictions with respect to Dish, Ltd.' s subsidiaries; (vi) merge, consolidate or sell substantially all of its assets; and (vii) enter into transactions with affiliates. In addition, Dish, Ltd. may pay dividends on its equity securities only if (1) no default exists...

  • Page 39
    ... to existing software and conversions to new software, the Year 2000 Issue can be mitigated. EchoStar is utilizing both internal and external resources to identify, correct or reprogram, and test all affected systems for Year 2000 compliance. The Company has also initiated formal communications with...

  • Page 40
    ... Item with respect to the identity and business experience of EchoStar' s executive officers is set forth on page 24 of this Report under the caption "Executive Officers." Item 11. EXECUTIVE COMPENSATION The information required by this Item is set forth in EchoStar' s Proxy Statement for the Annual...

  • Page 41
    ...1993) (" Dish" ) (incorporated by reference to Exhibit 2.2 to the Registration Statement on Form S-1 of EchoStar, Registration No. 33-91276). Plan and Agreement of Merger made as of December 21, 1995 by and among EchoStar, Direct Broadcasting Satellite Corporation, a Colorado Corporation (" MergerCo...

  • Page 42
    ... Indenture of Trust between ESBC and First Trust, as Trustee (incorporated by reference to Exhibit 4.9 to the Annual Report on Form 10-K of EchoStar for the year ended December 31, 1995, Commission File No. 0-26176). Security Agreement of ESBC in favor of First Trust, as Trustee under the Indenture...

  • Page 43
    ... 31, 1995, Commission File No. 026176). Registration Rights Agreement, dated as of June 25, 1997, by and among DBS Corp., EchoStar Communications Corporation, a Nevada corporation formed in April 1995 ("EchoStar"), EchoStar Satellite Broadcasting Corporation, a Colorado corporation, Dish, Ltd...

  • Page 44
    ... Report on Form 10-Q of EchoStar for the quarter ended June 30, 1996, Commission File No. 0-26176). Master Purchase and License Agreement, dated as of August 12, 1986, between Houston Tracker Systems, Inc. (" HTS" ) and Cable/Home Communications Corp. (a subsidiary of General Instruments Corporation...

  • Page 45
    ...18 to the Annual Report on Form 10-K of EchoStar for the year ended December 31, 1996, as amended, Commission File No. 0-26176). Amendment No. 9 to Satellite Construction Contract, effective as of July 18, 1996, between Direct Satellite Broadcasting Corporation, a Delaware corporation (" DBSC" ) and...

  • Page 46
    ... 10.2 to the Quarterly Report on Form 10-Q of EchoStar for the quarterly period ended June 30, 1997, Commission File No. 026176). Contract for Launch Services, dated April 5, 1996, between Lockheed Martin Commercial Launch Services, Inc. and EchoStar Space Corporation (incorporated by reference to...

  • Page 47
    ... Exchange Act of 1934, EchoStar has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ECHOSTAR COMMUNICATIONS CORPORATION By: /s/ Steven B. Schaver Steven B. Schaver Chief Operating Officer and Chief Financial Officer Date: March 20, 1998 Pursuant...

  • Page 48
    ... Page Consolidated Financial Statements: Report of Independent Public Accountants ...Consolidated Balance Sheets at December 31, 1996 and 1997 ...Consolidated Statements of Operations for the years ended December 31, 1995, 1996 and 1997 ...Consolidated Statements of Changes in Stockholders' Equity...

  • Page 49
    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To EchoStar Communications Corporation: We have audited the accompanying consolidated balance sheets of EchoStar Communications Corporation (a Nevada corporation) and subsidiaries, as described in Note 1, as of December 31, 1996 and 1997, and the related ...

  • Page 50
    ... B Senior Redeemable Exchangeable Preferred Stock, $.01 par value, none and 900,000 shares authorized, respectively; none and 200,000 shares issued and outstanding, respectively; subject to mandatory redemption on July 1, 2004 at a price of $1,000 per share plus all accumulated and unpaid dividends...

  • Page 51
    ECHOSTAR COMMUNICATIONS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) 1995 Revenue: DISH Network: Subscription television services ...Other...Total DISH Network ...DTH equipment sales and integration services ...Satellite services ...C-band and other ......

  • Page 52
    ... Preferred Stock dividends payable in-kind ...Issuance of Class A Common Stock: Acquisition of DBSC...Exercise of Class A Common stock options and warrants ...Secondary public offering, net of stock issuance costs of $2,648 ...Employee benefits ...Employee Stock Purchase Plan ...Cancellation...

  • Page 53
    ...Employee benefits funded by issuance of Class A Common Stock ...Change in reserve for excess and obsolete inventory ...Change in long-term deferred satellite services revenue and other long-term liabilities ...Other, net...Changes in current assets and current liabilities: Trade accounts receivable...

  • Page 54
    ...three interrelated business units: • The DISH Network - a DBS subscription television service in the United States. As of December 31, 1997, EchoStar had approximately 1,040,000 DISH Network subscribers. Technology - the design, manufacture, distribution and sale of DBS set-top boxes, antennae and...

  • Page 55
    ..."), a high-volume contract electronics manufacturer. During February 1998, EchoStar executed two separate agreements for the manufacture of digital set-top boxes in accordance with EchoStar' s specifications. Phillips Electronics of North America Corporation ("Phillips") and Vtech Communications Ltd...

  • Page 56
    ECHOSTAR COMMUNICATIONS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued 1. Organization and Business Activities - Continued sufficient cash flows to pay its obligations, including its obligations on its long-term debt, or to pay cash dividends on any of its preferred stock. 2. ...

  • Page 57
    ......Satellite launch payment for EchoStar II applied to EchoStar I launch ...Satellite vendor financing ...Other notes payable ...The purchase price of DBSC was allocated as follows in the related purchase accounting: EchoStar III satellite under construction ...FCC authorizations ...Notes receivable...

  • Page 58
    ... Stock (as defined, see Note 7) are based on quoted market prices. The fair values of EchoStar' s mortgages and other notes payable are estimated using discounted cash flow analyses. The interest rates assumed in such discounted cash flow analyses reflect interest rates currently being offered...

  • Page 59
    ... extent of insurance proceeds received as a result of the launch or in-orbit failure. Depreciation is recorded on a straight-line basis for financial reporting purposes. Repair and maintenance costs are charged to expense when incurred. Renewals and betterments are capitalized. EchoStar reviews its...

  • Page 60
    ... by independent retailers for a standard EchoStar Receiver System to $199 (as compared to the original average retail price prior to August 1996 of approximately $499), conditioned upon the consumer' s one-year prepaid subscription to the DISH Network' s America' s Top 50 CD programming package for...

  • Page 61
    ECHOSTAR COMMUNICATIONS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued 2. Summary of Significant Accounting Policies - Continued Deferred Revenue Deferred revenue principally consists of prepayments received from subscribers for DISH Network programming. Such amounts are ...

  • Page 62
    ... loss...8% Series A Cumulative Preferred Stock dividends ...12 1/8% Series B Senior Redeemable Exchangeable Preferred Stock dividends payable in-kind ...Accretion of 6 ¾% Series C Cumulative Convertible Preferred Stock...Numerator for basic and diluted loss per share âˆ' loss attributable to common...

  • Page 63
    ECHOSTAR COMMUNICATIONS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued 3. Property and Equipment Property and equipment consist of the following (in thousands): Life (In Years) EchoStar I ...EchoStar II ...Furniture, fixtures and equipment ...Buildings and improvements ...Land ...

  • Page 64
    ... COMMUNICATIONS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued 4. Other Noncurrent Assets - Continued Acquisition of Direct Broadcasting Satellite Corporation During 1994, EchoStar acquired approximately 40% of the outstanding common stock of Direct Broadcasting Satellite...

  • Page 65
    ...passu in right of payment with all senior indebtedness of ESBC. The 1996 Notes are guaranteed on a subordinated basis by ECC, and are secured by liens on certain assets of ESBC, ECC and certain of ECC' s subsidiaries, including all of the outstanding capital stock of Dish, Ltd., which currently owns...

  • Page 66
    ... 1997 Notes Offering were placed in the Satellite Escrow to fund the construction, launch and insurance of EchoStar IV. The 1997 Notes mature on July 1, 2002. The 1997 Notes rank pari passu in right of payment with all senior indebtedness of DBS Corp. The 1997 Notes are guaranteed on a subordinated...

  • Page 67
    ... received by DBS Corp and its subsidiaries from the issuance or sale of certain equity interests of DBS Corp or EchoStar. In the event of a change of control, as defined in the 1997 Notes Indenture, DBS Corp will be required to make an offer to repurchase all of the 1997 Notes at a purchase price...

  • Page 68
    ... all assets of Dish, Ltd. and its subsidiaries (subject to certain restrictions) and a corporate guarantee of ECC. The satellite vendor financing for EchoStar III is secured by an ECC corporate guarantee. EchoStar also expects to use $13 million of satellite vendor financing, at a rate of 8.25%, for...

  • Page 69
    ... million. The NOLs expire beginning in the year 2011. The use of the NOLs is subject to statutory and regulatory limitations regarding changes in ownership. FAS No. 109, " Accounting for Income Taxes," requires that the potential future tax benefit of NOLs be recorded as an asset. FAS No. 109 also...

  • Page 70
    ...a price, payable in cash equal to the liquidation preference, plus all accumulated and unpaid dividends up to the date of redemption. Early redemption may be made at the option of EchoStar. On or before July 1, 2000, the Series B Preferred Stock is redeemable in cash, in whole or in part, at a price...

  • Page 71
    ... A Common Stock or rights, warrants or options to purchase Class A Common Stock at a price per share less than the liquidation preference per share. In the event of the liquidation, dissolution or winding up of EchoStar, the holders of Series A Preferred Stock would be entitled to receive an amount...

  • Page 72
    ..., used to purchase from EchoStar for delivery to each holder of Series C Preferred Stock that number of whole shares of Class A Common Stock determined by dividing the balance remaining in the Deposit Account by 95% of the market value of the shares of Class A Common Stock as of the date of EchoStar...

  • Page 73
    ... and retain officers, directors and key employees. EchoStar has reserved up to 10 million shares of its Class A Common Stock for granting awards under the Stock Incentive Plan. All stock options granted through December 31, 1997 have included exercise prices not less than the fair market value of...

  • Page 74
    ... the date of the repricing. Options to purchase approximately 256,000 shares of Class A Common Stock were affected by this repricing. Accounting for Stock-Based Compensation EchoStar has elected to follow Accounting Principles Board Opinion No. 25, " Accounting for Stock Issued to Employees," ("APB...

  • Page 75
    ... under all stock purchase plans of EchoStar at a rate which would exceed $25,000 in fair market value of capital stock in any one year. The purchase price of the stock is 85% of the closing price of the Class A Common Stock on the last business day of each calendar quarter in which such shares of...

  • Page 76
    ... launch and insurance of EchoStar IV. These expenditures will be funded from the Satellite Escrow. EchoStar has filed applications with the Federal Communications Commission ("FCC" ) for authorization to construct, launch and operate a two satellite FSS (fixed satellite service) Ku-band system and...

  • Page 77
    ...Amended Complaint and asserts numerous defenses, including bad faith, misconduct and failure to disclose material information on the part of EchoStar and its Chairman and Chief Executive Officer, Charles W. Ergen. The counterclaims, in which News is joined by its subsidiary American Sky Broadcasting...

  • Page 78
    ......Trade accounts receivable, net ...Inventories ...Subscriber acquisition costs, net ...Other current assets ...Total current assets ...Investment in subsidiary...Advances to affiliates, net ...Restricted cash and marketable investment securities ...Property and equipment, net ...FCC authorizations...

  • Page 79
    ... Trade accounts receivable, net ...66 Inventories ...23 Subscriber acquisition costs, net ...19 Other current assets ...8 Total current assets ...152 Advances to affiliates, net ...- Restricted cash and marketable investment securities ...2 Property and equipment, net ...505 FCC authorizations, net...

  • Page 80
    ECHOSTAR COMMUNICATIONS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued 13. Parent Company Only and Consolidation of Subsidiary Guarantors âˆ' Continued Consolidating Statements of Operations âˆ' Year Ended December 31, 1995 (in millions) Dis h Revenue: DTH equipment sales and ...

  • Page 81
    ...-related expenses ...Customer service center and other ...Satellite and transmission ...Total DISH Network operating expenses ...Cost of sales âˆ' DTH equipment and integration services ...Cost of sales - C-band and other ...Marketing: Subscriber promotion subsidies ...Advertising and other...

  • Page 82
    ...-related expenses ...Customer service center and other ...Satellite and transmission ...Total DISH Network operating expenses . Cost of sales âˆ' DTH equipment and integration services ...Cost of sales - C-band and other ...Marketing: Subscriber promotion subsidies...Advertising and other ...Total...

  • Page 83
    ...: Purchases of marketable investment securities ...Sales of marketable investment securities ...Purchases of restricted marketable investment securities ...Purchases of property and equipment ...Offering proceeds and investment earnings placed in escrow ...Funds released from escrow accounts...

  • Page 84
    ... investment securities ...Funds released from escrow and restricted cash and marketable investment securities ...Purchases of property and equipment ...Offering proceeds and investment earnings placed in escrow ...Payments received on convertible subordinated debentures from SSET ...Long-term notes...

  • Page 85
    ... securities ...Sales of marketable investment securities ...Purchases of restricted marketable investment securities ...Funds released from escrow and restricted cash and marketable investment securities ...Purchases of property and equipment ...Offering proceeds and investment earnings placed in...

  • Page 86
    ECHOSTAR COMMUNICATIONS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued 14. Operations in Geographic Areas EchoStar sells certain of its products on a worldwide basis and has operations in Europe and the Pacific Rim. Information about EchoStar' s operations in different geographic...

  • Page 87
    ECHOSTAR COMMUNICATIONS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued 15. Valuation and Qualifying Accounts EchoStar' s valuation and qualifying accounts as of December 31, 1995, 1996 and 1997 are as follows (in thousands): Balance at Beginning of Year Year ended December 31, ...