Dish Network 2001 Annual Report Download - page 82

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–17
Long-Term Deferred Distribution and Carriage Revenue
Long-term deferred distribution and carriage revenue consists of advance payments from certain content
providers for carriage of their signal on the DISH Network. Such amounts are deferred and recognized as revenue
on a straight-line basis over the related contract terms (up to ten years).
Accrued Expenses
Accrued expenses consist of the following (in thousands):
December 31,
2000 2001
Programming ................................................................................ $ 176,566 $ 250,795
Royalties and copyright fees........................................................... 111,228 145,140
Interest ......................................................................................... 131,999 142,789
Marketing..................................................................................... 86,861 53,279
Other............................................................................................ 184,828 267,290
$ 691,482 $ 859,293
Research and Development Costs
Research and development costs are expensed as incurred. Research and development costs totaled
$10 million, $17 million and $19 million for the years ended December 31, 1999, 2000, and 2001, 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 income (loss) presented on the accompanying consolidated
balance sheets consists of the accumulated net unrealized income (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. EchoStar had net losses for the years ending December 31, 1999,
2000 and 2001. 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.