Dish Network 2000 Annual Report Download - page 44

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42
In addition to the $1.464 billion, we have made strategic equity investments in Wildblue Communications,
StarBand Communications, VisionStar, Inc. and Replay TV totaling approximately $110 million. The securities of
these companies are not publicly traded. StarBand recently announced that it was canceling its planned initial public
stock offering. Our ability to create realizable value for our strategic investments in companies that are not public is
dependent on the success of their business plans. Among other things, there is relatively greater risk that those
companies may not be able to raise sufficient capital to fully finance their business plans. Since private markets are
not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that
when we desire to sell them that we will be able to obtain full value for them.
We currently have accumulated net unrealized losses on certain of our investments as disclosed on our
accompanying balance sheets. There can be no assurance that the accumulated net unrealized losses will not
increase or that some or all of these losses will not have to be recorded as charges to earnings in future periods. We
have not used derivative financial instruments for speculative purposes. We have not hedged or otherwise protected
against the risks associated with any of our investing or financing activities.
As of December 31, 2000, we estimated the fair value of our fixed-rate debt and mortgages and other notes
payable to be approximately $3.7 billion using quoted market prices where available, or discounted cash flow analyses.
The fair value of our fixed rate debt and mortgages is affected by fluctuations in interest rates. A hypothetical 10%
decrease in assumed interest rates would increase the fair value of our debt by approximately $196 million. To the
extent interest rates increase, our costs of financing would increase at such time as we are required to refinance our
debt.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Our Consolidated Financial Statements are included in this report beginning on page F-1.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.