Dish Network 2007 Annual Report Download - page 102

Table of Contents
ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued
The following table summarizes the book and fair values of our debt facilities at December 31, 2006 and 2005:
As of December 31, 2006 and 2005, the book value approximates fair value for cash and cash equivalents, trade accounts receivable, net of
allowance for doubtful accounts, and current liabilities due to their short-term nature. Also, the book value is equal to fair value for marketable
securities as of December 31, 2006 and 2005.
Deferred Debt Issuance Costs
Costs of issuing debt are generally deferred and amortized to interest expense over the terms of the respective notes (Note 5).
Revenue Recognition
We recognize revenue when an arrangement exists, prices are determinable, collectibility is reasonably assured and the goods or services have
been delivered. Revenue from our subscription television services is recognized when programming is broadcast to subscribers. Programming
payments received from subscribers in advance of the broadcast or service period are recorded as “Deferred revenue” in the Consolidated
Balance Sheets until earned. For certain of our promotions relating to EchoStar receiver systems, subscribers are charged an upfront fee. A
portion of this fee may be deferred and recognized over 48 to 60 months, depending on whether the fee is received from existing or new
subscribers. Revenue from advertising sales is recognized when the related services are performed.
Subscriber fees for receivers with multiple tuners, high definition (“HD”) receivers, digital video recorders (“DVRs”), and HD DVRs, our
DishHOME Protection Plan and other services are recognized as revenue, monthly as earned. Revenue from equipment sales is recognized
upon shipment to customers.
Revenue from equipment sales to AT&T pursuant to our original agreement with AT&T is deferred and recognized over the estimated average
co-branded subscriber life. Revenue from installation and certain other services performed at the request of AT&T is recognized upon
completion of the services. Further, development and
F-15
As of December 31, 2006 As of December 31, 2005
Book Value
Fair Value
Book Value
Fair Value
(In thousands)
5 3/4% Convertible Subordinated Notes due 2008 (1)
$
—
$
—
$
1,000,000
$
973,750
9 1/8% Senior Notes due 2009 (2)
—
—
441,964
462,405
3% Convertible Subordinated Note due 2010
500,000
472,400
500,000
451,500
Floating Rate Senior Notes due 2008 (2)
—
—
500,000
510,000
5 3/4% Senior Notes due 2008
1,000,000
993,750
1,000,000
980,000
6 3/8% Senior Notes due 2011
1,000,000
993,750
1,000,000
968,650
3% Convertible Subordinated Note due 2011
25,000
22,780
25,000
21,725
6 5/8% Senior Notes due 2014
1,000,000
971,250
1,000,000
958,750
7 1/8% Senior Notes due 2016
1,500,000
1,494,375
—
—
7 % Senior Notes due 2013
500,000
497,500
—
—
Mortgages and other notes payable
37,379
37,379
30,275
30,275
Subtotal
$
5,562,379
$
5,483,184
$
5,497,239
$
5,357,055
Capital lease obligations (3)
404,942
N/A
438,062
N/A
Total
$
5,967,321
$
5,483,184
$
5,935,301
$
5,357,055
(1)
The 5 3/4% Convertible Subordinated Notes due 2008 were redeemed on February 15, 2007 (see Note 5).
(2) The 9 1/8% Senior Notes due 2009 and the Floating Rate Senior Notes due 2008 were redeemed on February 17, 2006 and October 2,
2006, respectively.
(3) Pursuant to SFAS No. 107 “Disclosures about Fair Value of Financial Instruments,” disclosures regarding fair value of capital leases is
not required.