Dish Network 2000 Annual Report Download - page 60

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,
1998 1999 2000
Cash paid for interest .................................................................................................. $ 52,293 $128,553 $ 211,064
Cash paid for income taxes.......................................................................................... 83 119 641
Capitalized interest ..................................................................................................... 21,678 –5,343
8% Series A Cumulative Preferred Stock dividends ...................................................... 1,204 124 –
12 1/8% Series B Senior Redeemable Exchangeable Preferred Stock dividends
payable in-kind....................................................................................................... 26,874 241 –
Accretion of 6 3/4% Series C Cumulative Convertible Preferred Stock .......................... 7,137 6,335 –
6 3/4% Series C Cumulative Convertible Preferred Stock dividends............................... –553 1,146
Satellite vendor financing............................................................................................ 12,950 – –
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 –
Class A common stock issued related to acquisition of Kelly Broadcasting Systems ........ – – 31,556
Conversion of 6 ¾% Series C Cumulative Convertible Preferred Stock to Class A
common stock ........................................................................................................ – – 34,373
Forfeitures of deferred non-cash, stock-based compensation .......................................... – – 8,072
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, 1999 and 2000 consist of money market funds, corporate notes
and commercial paper; such balances are stated at cost which approximates market value.
Marketable Investment Securities and Restricted Cash and Marketable Investment Securities
As of December 31, 1999 and 2000, 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’ deficit, net of related deferred income taxes, if applicable. The specific
identification method is used to determine cost in computing realized gains and losses. Such unrealized losses
totaled $60,580 as of December 31, 2000. Approximately $17 million of these unrealized losses relate to a decline
in the value of OpenTV. EchoStar acquired that stock in connection with the establishment of a strategic
relationship with OpenTV which did not involve an investment of cash by EchoStar. In accordance with generally
accepted accounting principles, unrealized losses which represent an “other than temporary impairment” must be
recognized in the statement of operations, establishing a new cost basis for such investment. No such “other than
temporary impairment” was recognized as of December 31, 2000. However, an “other than temporary impairment”
could be recognized in 2001 if the fair value of such investments do not increase to their original cost basis.
Restricted cash and marketable investment securities, as reflected in the accompanying consolidated
balance sheets, include restricted cash placed in trust for the purpose of repaying a note payable as of December 31,
1999 and 2000.