Dish Network 1999 Annual Report Download - page 62

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–14
As of December 31, 1997, 1998 and 1999, options to purchase approximately 6,100,000, 5,788,000 and
13,922,000 shares of Class A common stock were outstanding, respectively. Common stock equivalents (employee
stock options and warrants) are excluded from the calculation of diluted loss per share as they are antidilutive.
Securities that are convertible into shares of Class A common stock also are excluded from the calculation of diluted
loss per share as they are antidilutive.
Reclassifications
Certain prior year balances in the consolidated financial statements have been reclassified to conform with
the 1999 presentation.
3. Property and Equipment
Property and equipment consist of the following (in thousands):
Life December 31,
(In Years) 1998 1999
EchoStar I................................................................... 12 $ 201,607 $ 201,607
EchoStar II ................................................................. 12 228,694 228,694
EchoStar III ................................................................ 12 234,083 234,083
EchoStar IV................................................................ 10 105,005 89,505
EchoStar V ................................................................. 12 –208,578
Furniture, fixtures and equipment ................................. 2-12 182,747 243,042
Buildings and improvements........................................ 7-40 60,867 68,338
Land........................................................................... –6,563 6,780
Tooling and other........................................................ 25,552 5,812
Vehicles...................................................................... 71,288 1,119
Construction in progress .............................................. –18,329 319,328
Total property and equipment................................. 1,044,735 1,606,886
Accumulated depreciation............................................ (167,821) (266,947)
Property and equipment, net................................... $ 876,914 $ 1,339,939
Construction in progress consists of the following (in thousands):
December 31,
1998 1999
Progress amounts for satellite construction, launch, and launch
insurance:
EchoStar VI................................................................................. $ – $ 243,633
Digital broadcast operations center.................................................... –47,000
Other ................................................................................................... 18,329 28,695
$ 18,329 $ 319,328
EchoStar IV Impairment
As a result of the failure of EchoStar IV solar arrays to fully deploy and the unrelated failure of 20
transponders to date, a maximum of approximately 16 of the 44 transponders on EchoStar IV are currently available
for use at this time. Due to the normal degradation of the solar arrays, the number of available transponders may
further decrease over time. Based on current data from Lockheed Martin, we expect that at least 10 high power
transponders or 5 extra-high power transponders will probably be available over the remaining useful life of the
satellite, absent significant additional transponder problems or other failures.