Dish Network 2002 Annual Report Download - page 103

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-43
12. Valuation and Qualifying Accounts
EchoStar’s valuation and qualifying accounts as of December 31, 2000, 2001 and 2002 are as follows (in
thousands):
Balance at
Beginning of
Year
Charged to
Costs and
Expenses Deductions
Balance at
End of Year
Year ended December 31, 2000:
Assets:
Allowance for doubtful accounts ................. $ 13,109 $ 45,985 $ (27,853) $ 31,241
Loan loss reserve .......................................... 1,839 66 (346) 1,559
Reserve for inventory ................................... 3,947 6,357 (398) 9,906
Year ended December 31, 2001:
Assets:
Allowance for doubtful accounts ................. $ 31,241 $ 59,725 $ (68,196) $ 22,770
Loan loss reserve .......................................... 1,559 67 (35) 1,591
Reserve for inventory ................................... 9,906 12,204 (8,863) 13,247
Year ended December 31, 2002:
Assets:
Allowance for doubtful accounts ................. $ 22,770 53,967 (49,088) $ 27,649
Loan loss reserve .......................................... 1,591 109 (1,700) –
Reserve for inventory ................................... 13,247 7,420 (10,700) 9,967
13. Quarterly Financial Data (Unaudited)
EchoStar’s quarterly unaudited results of operations are summarized as follows (in thousands, except per share
amounts):
Three Months Ended
March 31 June 30 September 30 December 31
(Unaudited)
Year Ended December 31, 2001:
Total revenue ...................................... $ 861,930 $ 966,272 $ 1,022,506 $ 1,150,430
Operating income (loss) ...................... (15,183) 63,913 75,472 88,100
Net income (loss)................................. (169,867) (5,855) 3,095 (42,871)
Basic and diluted loss per share .......... $ (0.36) $ (0.01) $ 0.01 $ (0.09)
Year Ended December 31, 2002:
Total revenue ...................................... $ 1,104,468 $ 1,168,684 $ 1,222,849 $ 1,324,824
Operating income ............................... 95,279 146,428 95,869 83,772
Net income (loss)................................. (35,147) 37,001 (167,949) (715,555)
Basic income (loss) per share.............. $ (0.20) $ 0.08 $ (0.35) $ (0.45)
Diluted income (loss) per share........... $ (0.20) $ 0.07 $ (0.35) $ (0.45)
14. Subsequent Events
Effective February 1, 2003, EDBS redeemed all of its outstanding 9 1/4 % Senior Notes due 2006. In
accordance with the terms of the indenture governing the notes, the $375 million principal amount of the notes was
repurchased at 104.625 percent, for a total of approximately $392 million. The premium paid of approximately $17
million, along with unamortized debt issuance costs of approximately $3 million, have been recorded as charges to
earnings as of February 1, 2003.