Dish Network 1997 Annual Report Download - page 57

ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
2. Summary of Significant Accounting Policies – Continued
F–10
Statements of Cash Flows Data
The following presents EchoStar’s supplemental cash flow statement disclosure (in thousands):
Years Ended December 31,
1995 1996 1997
Cash paid for interest ................................ ................................ ................................ ... $ 461 $ 3,007 $ 5,073
Cash paid for income taxes ................................ ................................ .......................... 3,203 383 209
Capitalized interest ................................ ................................ ................................ ...... 25,763 31,818 43,169
8% Series A Cumulative Preferred Stock dividends ................................ ....................... 1,204 1,204 1,204
12 1/8% Series B Senior Redeemable Exchangeable Preferred Stock dividends
payable in-kind ................................ ................................ ................................ ....... – – 6,164
Accretion of 6 3/4% Series C Cumulative Convertible Preferred Stock ............................ – – 1,074
Accrued satellite contract costs ................................ ................................ ..................... 15,000 – –
Class A Common Stock cancelled to foreclose on convertible subordinated debentures
from DBSI ................................ ................................ ................................ .............. – – 4,479
Satellite launch payment for EchoStar II applied to EchoStar I launch ............................. –15,000 –
Satellite vendor financing ................................ ................................ ............................ 32,833 31,167 14,400
Other notes payable ................................ ................................ ................................ ..... – – 5,322
The purchase price of DBSC was allocated as follows in the related purchase accounting:
EchoStar III satellite under construction ................................ ................................ .... – – 51,241
FCC authorizations ................................ ................................ ................................ .. – – 16,243
Notes receivable from DBSC, including accrued interest of $3,382 ............................. – – ( 49,369)
Investment in DBSC ................................ ................................ ................................ – – ( 4,044)
Accounts payable and accrued expenses ................................ ................................ .... – – ( 1,540)
Other notes payable ................................ ................................ ................................ . – – ( 500)
Common stock and additional paid–in capital ................................ ............................ – – ( 12,031)
Marketable Investment Securities and Restricted Cash and Marketable Investment Securities
As of December 31, 1996 and 1997, EchoStar has classified all marketable investment securities as available-
for-sale. Accordingly, these investments are reflected at market value based on quoted market prices. Related
unrealized gains and losses are reported as a separate component of stockholders’ equity, net of related deferred income
taxes. The specific identification method is used to determine cost in computing realized gains and losses. The major
components of marketable investment securities as of December 31, 1996 and 1997 are as follows (in thousands):
December 31, 1996 December 31, 1997
Amortized
Cost
Unrealized
Holding
Loss
Market
Value
Amortized
Cost
Unrealized
Holding
Loss
Market
Value
Commercial paper ........ $16,065 $ – $16,065 $166,789 $ (10) $166,779
Corporate notes ............ – – – 78,238 –78,238
Government bonds ....... 2,540 –2,540 30,290 –30,290
Mutual funds ............... 219 ( 17) 202 – – –
$18,824 $( 17) $18,807 $275,317 $ (10) $275,307