Dish Network 2003 Annual Report Download - page 61

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56
not remain above cost basis or if we become aware of any market or company specific factors that indicate that the
carrying value of certain of our securities is impaired, we may be required to record charges to earnings in future
periods equal to the amount of the decline in fair market value.
We also have made strategic equity investments in certain non-marketable investment securities. These securities
are not publicly traded. Our ability to realize value from our strategic investments in companies that are not public is
dependent on the success of their business and their ability to obtain sufficient capital to execute their business
plans. Since private markets are not as liquid as public markets, there is also increased risk that we will not be able
to sell these investments, or that when we desire to sell them that we will not be able to obtain full value for them.
We evaluate our non-marketable investment securities on a quarterly basis to determine whether the carrying value
of each investment is impaired. This quarterly evaluation consists of reviewing, among other things, company
business plans and current financial statements, if available, for factors which may indicate an impairment in our
investment. Such factors may include, but are not limited to, cash flow concerns, material litigation, violations of
debt covenants and changes in business strategy. During the year ended December 31, 2003, we did not record any
impairment charges with respect to these instruments.
As of December 31, 2003, we estimated the fair market value of our fixed-rate debt and mortgages and other notes
payable to be approximately $7.258 billion using quoted market prices where available, or discounted cash flow
analyses. The interest rates assumed in such discounted cash flow analyses reflect interest rates currently being offered
for loans with similar terms to borrowers of similar credit quality. The fair market value of our fixed-rate debt and
mortgages is affected by fluctuations in interest rates. A hypothetical 10.0% decrease in assumed interest rates would
increase the fair market value of our debt by approximately $186.4 million. To the extent interest rates increase, our
costs of financing would increase at such time as we are required to refinance our debt. As of December 31, 2003, a
hypothetical 10.0% increase in assumed interest rates would increase our annual interest expense by approximately
$49.9 million.
We have not used derivative financial instruments for hedging or speculative purposes.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Our Consolidated Financial Statements are included in this report beginning on page F-1.
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
Not applicable.
Item 9A. CONTROLS AND PROCEDURES
As of December 31, 2003, an evaluation was performed under the supervision and with the participation of our
management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design
and operation of our disclosure controls and procedures. Based on that evaluation, our management, including the
Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were
effective as of December 31, 2003. There have been no significant changes during the period covered by this report
in our internal control over financial reporting or in other factors that could significantly affect internal control over
financial reporting.
PART III
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The information required by this Item with respect to the identity and business experience of our directors will be set
forth in our Proxy Statement for the Annual Meeting of Shareholders to be held on May 6, 2004, under the caption
“Election of Directors,” which information is hereby incorporated herein by reference.
The information required by this Item with respect to the identity and business experience of our executive officers is
set forth on page 21 of this report under the caption “Executive Officers.”