Dish Network 2003 Annual Report Download - page 110

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–43
Enron Commercial Paper Investment Complaint
On November 6, 2003, an action was commenced in the United States Bankruptcy Court for the Southern District of
New York, against approximately 100 defendants, including us, who invested in Enron’s commercial paper. The
complaint alleges that Enron’s October 2001 prepayment of its commercial paper is a voidable preference under the
bankruptcy laws and constitutes a fraudulent conveyance. The complaint alleges that we received voidable or
fraudulent prepayments of approximately $40.0 million. We typically invest in commercial paper and notes which are
rated in one of the four highest rating categories by at least two nationally recognized statistical rating organizations. At
the time of our investment in Enron commercial paper, it was considered to be high quality and considered to be a very
low risk. It is too early to make an assessment of the probable outcome of the litigation or to determine the extent of
any potential liability or damages.
In addition to the above actions, we are subject to various other legal proceedings and claims which arise in the
ordinary course of business. In our opinion, the amount of ultimate liability with respect to any of these actions is
unlikely to materially affect our financial position, results of operations or liquidity.
11. Segment Reporting
Financial Data by Business Unit
Statement of Financial Accounting Standards No. 131, “Disclosures About Segments of an Enterprise and Related
Information” (“FAS 131”) establishes standards for reporting information about operating segments in annual
financial statements of public business enterprises and requires that those enterprises report selected information
about operating segments in interim financial reports issued to shareholders. Operating segments are components of
an enterprise about which separate financial information is available and regularly evaluated by the chief operating
decision maker(s) of an enterprise. Under this definition we currently operate as two business units. The All Other
column consists of revenue from other satellite services and expenses from other operating segments for which the
disclosure requirements of FAS 131 do not apply.