Dish Network 2004 Annual Report Download - page 91

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
cost method. During the year ended December 31, 2004, we did not record any impairment charges with respect to
these investments.
Restricted cash and marketable investment securities, as reflected in the accompanying consolidated balance sheets,
includes, among other things, cash and marketable investment securities set aside as collateral for our letters of
credit.
The major components of marketable investment securities and restricted cash are as follows:
Retricted Cash and Marketable
Marketable Investment Securities Investment Securities
As of December 31, As of December 31,
2004 2003 2004 2003
(In thousands)
Government bonds ........................ $ 214,683 $ 1,258,366 $ 46,111 $ 18,431
Corporate notes and bonds ............ 84,093 620,782 8,969 -
Corporate equity securities ........... 149,496 111,687 - -
Commercial paper ......................... - 499,086 - -
Asset backed obligations................ 2,801 192,194 - -
Restricted cash .............................. - - 2,472 1,543
451,073$ 2,682,115$ 57,552$ 19,974$
As of December 31, 2004, marketable investment securities and restricted cash include debt securities of $228.5
million with contractual maturities of one year or less and $128.2 million with contractual maturities between one
and three years. Actual maturities may differ from contractual maturities as a result of our ability to sell these
securities prior to maturity.
Inventories
Inventories are stated at the lower of cost or market value. Cost is determined using the first-in, first-out method.
Proprietary products are built by contract manufacturers to our specifications. We depend on a few manufacturers, and
in some cases a single manufacturer, for the production of our receivers and many components of our EchoStar receiver
systems. Manufactured inventories include materials, labor, freight-in, royalties and manufacturing overhead.
Inventories consist of the following:
As of December 31,
2004 2003
(In thousands)
Finished goods - DBS ............................................. $ 159,350 $ 103,274
Raw materials ......................................................... 68,144 32,693
Work-in-process - service repair............................. 40,720 15,000
Work-in-process...................................................... 11,112 9,577
Consignment ........................................................... 2,644 1,373
Inventory allowance................................................
(
10,389
)
(
6,770
)
Inventories, net........................................................ 271,581$ 155,147$
Property and Equipment
Property and equipment are stated at cost. Cost includes capitalized interest of approximately $3.1 million, $8.4 million
and $23.9 million during the years ended December 31, 2004, 2003 and 2002, respectively. The costs of satellites
under construction, including certain amounts prepaid under our satellite service agreements (Note 9), are capitalized
during the construction phase, assuming the eventual successful launch and in-orbit operation of the satellite. If a
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