Dish Network 1999 Annual Report Download - page 57

ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–9
Statements of Cash Flows Data
The following presents EchoStar’s supplemental cash flow statement disclosure (in thousands):
Year Ended December 31,
1997 1998 1999
Cash paid for interest................................................................................................... $ 5,073 $52,293 $128,553
Cash paid for income taxes.......................................................................................... 209 83 119
Capitalized interest...................................................................................................... 43,169 21,678 –
8% Series A Cumulative Preferred Stock dividends....................................................... 1,204 1,204 124
12 1/8% Series B Senior Redeemable Exchangeable Preferred Stock dividends
payable in-kind ....................................................................................................... 6,164 26,874 241
Accretion of 6 3/4% Series C Cumulative Convertible Preferred Stock ............................ 1,074 7,137 6,335
6 3/4% Series C Cumulative Convertible Preferred Stock dividends................................. – – 553
Class A Common Stock cancelled to foreclose on convertible subordinated debentures
from DBSI.............................................................................................................. 4,479 – –
Satellite vendor financing............................................................................................. 14,400 12,950 –
Other notes payable..................................................................................................... 5,322 – –
Assets acquired from News Corporation and MCI:
FCC licenses and other............................................................................................ – – 626,120
Satellites................................................................................................................. – – 451,200
Digital broadcast operations center ........................................................................... – – 47,000
Common Stock issued to News Corporation and MCI ...................................................... – – 1,124,320
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) – –
Cash and Cash Equivalents
EchoStar considers all liquid investments purchased with an original maturity of 90 days or less to be cash
equivalents. Cash equivalents as of December 31, 1998 and 1999 consist of money market funds, corporate notes
and commercial paper; such balances are stated at cost which equates to market value.
Marketable Investment Securities and Restricted Cash and Marketable Investment Securities
As of December 31, 1998 and 1999, 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 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, as reflected in the accompanying consolidated
balance sheets, include cash restricted by the indenture related to the 1997 Notes, plus investment earnings thereon
and restricted cash placed in trust for the purpose of repaying a note payable, as of December 31, 1998 and 1999,
respectively.