Dish Network 2005 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2005 Dish Network annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F–7
1. Organization and Business Activities
Principal Business
EchoStar Communications Corporation (“ECC”) is a holding company. Its subsidiaries (which together with ECC
are referred to as “EchoStar,” the “Company,” “we,” “us” and/or “our”) operate two interrelated business units:
• The DISH Network – which provides a direct broadcast satellite (“DBS”) subscription television service in
the United States; and
• EchoStar Technologies Corporation (“ETC”) – which designs and develops DBS receivers, antennae and
other digital equipment for the DISH Network. We refer to this equipment collectively as “EchoStar
receiver systems.” ETC also designs, develops and distributes similar equipment for international
customers.
We have deployed substantial resources to develop the “EchoStar DBS System.” The EchoStar DBS System
consists of our Federal Communications Commission (“FCC”) authorized DBS and Fixed Satellite Service (“FSS”)
spectrum, our owned and leased satellites, EchoStar receiver systems, digital broadcast operations centers, customer
service facilities, in-home service and call center operations and certain other assets utilized in our operations. Our
principal business strategy is to continue developing our subscription television service in the United States to
provide consumers with a fully competitive alternative to others in the multi-channel video programming
distribution (“MVPD”) industry.
Organization and Legal Structure
The following table summarizes our organizational structure and our principal subsidiaries as of December 31,
2006:
Referred to
Legal Entity Herein As Parent
EchoStar Communications Corporation............................................ ECC Publicly owned
EchoStar Orbital Corporation .......................................................... EOC ECC
EchoStar Orbital Corporation II ...................................................... EOC II EOC
EchoStar DBS Corporation............................................................... EDBS EOC
EchoStar Satellite L.L.C................................................................... ESLLC EDBS
EchoStar Satellite Operating Corporation......................................... SATCO ESLLC
Echosphere L.L.C............................................................................. Echosphere EDBS
EchoStar Technologies Corporation ................................................ ETC EDBS
DISH Network Service L.L.C........................................................... DNSLLC EDBS
As of December 31, 2006, all of our DBS FCC licenses and 11 of our in-orbit satellites were owned by a subsidiary
of EDBS. EchoStar XI and our Ka-band satellites are held in EOC II, a sister company to EDBS. Our satellite lease
contracts are also held by a subsidiary of EDBS. Substantially all of our operations are conducted by subsidiaries of
EDBS.
2. Summary of Significant Accounting Policies
Principles of Consolidation and Basis of Presentation
We consolidate all majority owned subsidiaries and investments in entities in which we have controlling influence.
Non-majority owned investments are accounted for using the equity method when we have the ability to
significantly influence the operating decisions of the issuer. When we do not have the ability to significantly