Dish Network 2000 Annual Report Download - page 64

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–13
Accrued Expenses
Accrued expenses consist of the following (in thousands):
December 31,
1999 2000
Programming ................................................................................ $ 59,769 $ 176,566
Interest ......................................................................................... 81,574 131,999
Royalties and copyright fees........................................................... 91,387 111,228
Marketing..................................................................................... 88,204 86,861
Advances from News Corporation and MCI for satellite payments.... 67,804 18,910
Other............................................................................................ 110,527 165,918
$ 499,265 $ 691,482
Research and Development Costs
Research and development costs are expensed as incurred. Research and development costs totaled
$8 million, $10 million and $17 million for the years ended December 31, 1998, 1999, and 2000, respectively.
Comprehensive Loss
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
Statement of Financial Accounting Standards No. 128, “Earnings Per Share” (“FAS No. 128”) requires
entities to present both basic earnings per share (“EPS”) and diluted EPS. Basic EPS excludes dilution and is
computed by dividing income (loss) available to common shareholders by the weighted-average number of common
shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options or
warrants were exercised or convertible securities were converted to common stock, resulting in the issuance of
common stock that then would share in any earnings of the Company. We had net losses for the years ending
December 31, 1998, 1999 and 2000. Therefore, the effect of the common stock equivalents and convertible
securities is excluded from the computation of diluted earnings (loss) per share since the effect is anti-dilutive.