Dish Network 1997 Annual Report Download - page 61

Download and view the complete annual report

Please find page 61 of the 1997 Dish Network annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 87

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87

ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
2. Summary of Significant Accounting Policies – Continued
F–14
Deferred Revenue
Deferred revenue principally consists of prepayments received from subscribers for DISH Network programming. Such
amounts are recognized as revenue in the period the programming is provided to the subscriber.
Long-Term Deferred Satellite Services Revenue
Long-term deferred satellite services revenue consists of advance payments from certain content providers
for carriage of their signal on the DISH Network . Such amounts are deferred and recognized as revenue on a
straight-line basis over the related contract terms (up to ten years).
Accrued Expenses
Accrued expenses consist of the following (in thousands):
December 31,
1996 1997
Accrued expenses ................................ ................................ ............... $12,173 $ 39,901
Accrued interest ................................ ................................ .................. 166 24,621
Accrued programming ................................ ................................ ......... 9,468 20,018
Accrued royalties ................................ ................................ ................ 7,693 17,747
Deferred tax liabilities ................................ ................................ ......... 12,563 –
$42,063 $102,287
Advertising Costs
Advertising costs, exclusive of subscriber promotion subsidies, are expensed as incurred and totaled
$2 million, $18 million and $35 million for the years ended December 31, 1995, 1996 and 1997, respectively.
Net Loss Attributable to Common Shares
In 1997, the Financial Accounting Standards Board (“ FASB” ) issued Statement of Financial Accounting
Standards (“ FAS” ) No. 128, “ Earnings Per Share” (“ FAS No. 128”). FAS No. 128 replaced the calculation of primary
and fully diluted earnings per share with basic and diluted earnings per share. Unlike primary earnings per share, basic
earnings per share excludes any dilutive effects of options, warrants and convertible securities. Diluted earnings per
share is very similar to the previously reported fully diluted earnings per share.