Dish Network 1998 Annual Report Download - page 59

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–12
Statements of Cash Flows Data
The following presents EchoStar’s supplemental cash flow statement disclosure (in thousands):
Year Ended December 31,
1996 1997 1998
Cash paid for interest................................................................................................... $ 3,007 $ 5,073 $52,293
Cash paid for income taxes .......................................................................................... 383 209 83
Capitalized interest...................................................................................................... 31,818 43,169 21,678
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 26,874
Accretion of 6 3/4% Series C Cumulative Convertible Preferred Stock ............................ –1,074 7,137
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 ............................................................................................ 31,167 14,400 12,950
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, 1997 and 1998, EchoStar has classified all marketable investment securities as available-for-sale. The fair
market value of marketable investment securities approximates the carrying value and represents the quoted market prices at the
balance sheet dates. Related unrealized gains and losses, if material, are reported as a separate component of stockholders’ equity,
net of related deferred income taxes, if applicable. The specific identification method is used to determine cost in computing realized
gains and losses.
Restricted cash and marketable investment securities held in escrow accounts, as reflected in the
accompanying consolidated balance sheets, include cash restricted as of December 1997 and 1998 by the indenture
related to the 1997 Notes, plus investment earnings thereon. Restricted cash and marketable investment securities
are invested in certain permitted debt and other marketable investment securities until disbursed for the express
purposes identified in the applicable indenture. The major components of marketable investment securities and
restricted cash and marketable investment securities are as follows (in thousands):
Marketable Investment Securities
Restricted Cash and Marketable
Investment Securities
December 31, December 31,
1997 1998 1997 1998
Commercial paper...................................... $ 166,779 $ 87,099 $ 128,734 $ 8,424
Corporate notes.......................................... 78,238 84,520 38,093 54,360
Government bonds..................................... 30,290 45,934 16,695 14,517
Certificates of deposit................................. - - 2,245 –
Accrued interest......................................... - - 1,995 356
$ 275,307 $ 217,553 $ 187,762 $ 77,657