Dish Network 1998 Annual Report Download - page 62

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–15
Accrued Expenses
Accrued expenses consist of the following (in thousands):
December 31,
1997 1998
Royalties and copyright fees........................................................... $ 21,573 $ 53,746
Programming ................................................................................ 20,018 35,472
Marketing..................................................................................... 4,660 33,463
Interest ......................................................................................... 24,621 24,918
Other............................................................................................ 30,606 36,871
$ 101,478 $ 184,470
Advertising Costs
Advertising costs, exclusive of subscriber promotion subsidies, are expensed as incurred and totaled $18 million, $35 million and
$48 million for the years ended December 31, 1996, 1997 and 1998, respectively.
Comprehensive Loss
In June 1997, the Financial Accounting Standards Board issued Financial Accounting Standard No. 130,
“Reporting Comprehensive Income” (“FAS No. 130”), which establishes standards for reporting and display of
comprehensive income and its components (revenues, expenses, gains and losses) in a full set of general-purpose
financial statements. EchoStar adopted FAS No. 130 effective as of the first quarter of 1998. FAS No. 130 establishes
new rules for the reporting and display of comprehensive loss and its components, however it has no impact on
EchoStar’s net loss or stockholders’ equity. The change in unrealized gain (loss) on available-for-sale securities is the
only component of EchoStar’s other comprehensive loss. Accumulated other comprehensive loss presented on the
accompanying consolidated balance sheets consists of the accumulated net unrealized loss on available-for-sale
securities, net of deferred taxes.
Basic and Diluted Loss Per Share
Earnings per share amounts for all periods are presented below in accordance with the requirements of FAS
No. 128.
Year Ended December 31,
1996 1997 1998
(In thousands, except per share data)
Numerator:
Net loss........................................................................................ $ (100,986) $ (312,825) $ (260,882)
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)
Numerator for basic and diluted loss per share – loss attributable to
common shareholders ................................................................... (102,190) (321,267) (296,097)
Denominator:
Denominator for basic and diluted loss per share – weighted-average
common shares outstanding ....................................................... 40,548 41,918 44,982
Basic and diluted loss per share.......................................................... $ (2.52) $ (7.66) $ (6.58)
Shares of Class A Common Stock issuable upon conversion of:
8% Series A Cumulative Preferred Stock........................................ 1,617 1,617 1,617