Dish Network 2007 Annual Report Download - page 96

Table of Contents
ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued
Statements of Cash Flows Data
The following presents our supplemental cash flow statement disclosure:
Cash and Cash Equivalents
We consider all liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents as of
December 31, 2006 and 2005 consist of money market funds, government bonds, corporate notes and commercial paper. The cost of these
investments approximates their fair value.
Marketable and Non
-Marketable Investment Securities and Restricted Cash
We currently classify all marketable investment securities as available-for-sale. We adjust the carrying value of our available-for-
sale securities
to fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive
income (loss)” within “Total stockholders’ equity (deficit),” net of related deferred income tax. Declines in the fair value of a marketable
investment security which are estimated to be “other than temporary” are recognized in the Consolidated Statements of Operations and
Comprehensive Income (Loss), thus establishing a new cost basis for such investment. We evaluate our marketable investment securities
portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other than temporary. This quarterly
evaluation consists of reviewing, among other things, the fair value of our marketable investment securities compared to the carrying amount,
the historical volatility of the price of each security and any market and company specific factors related to each security. Generally, absent
specific factors to the contrary, declines in the fair value of investments below cost basis for a continuous period of less than six months are
considered to be temporary. Declines in the fair value of investments for a continuous period of six to nine months are evaluated on a case by
case basis to determine whether any company or market-
specific factors exist which would indicate that such declines are other than temporary.
Declines in the fair value of investments below cost basis for a continuous period greater than nine months are considered other than temporary
and are recorded as charges to earnings, absent specific factors to the contrary.
As of December 31, 2006 and 2005, we had unrealized gains net of related tax effect of $41.8 million and $3.3 million, respectively, as a part
of “Accumulated other comprehensive income (loss)” within “Total stockholders’ equity (deficit).” During the year ended December 31, 2005,
we recorded aggregate charges to earnings for other than temporary declines in the fair value of certain of our marketable investment securities
of $25.4 million, and established a new cost basis for these securities. During the years ended December 31, 2006 and 2004, we did not record
any charge to earnings for other than temporary declines in the fair value of our marketable investment securities. In addition, during the years
ended December 31, 2006, 2005 and 2004, we recognized realized and unrealized net gains (losses) on marketable investment securities and
conversion of bond instruments into common stock of $88.6 million, $34.3 million and ($9.0) million, respectively.
F-9
For the Years Ended December 31,
2006 2005 2004
(In thousands)
Cash paid for interest
$
418,587
$
372,403
$
431,785
Capitalized interest
20,091
7,597
3,105
Cash received for interest
73,337
34,623
56,317
Cash paid for income taxes
37,742
34,295
3,302
Assumption of net operating liabilities in asset acquisition
—
—
25,685
Assumption of liabilities and long
-
term deferred revenue
—
—
69,357
Employee benefits paid in Class A common stock
22,102
13,055
16,255
Satellites financed under capital lease obligations
—
191,950
286,605
Reduction in satellite vendor financing
—
—
13,712
Satellite and other vendor financing
15,000
1,940
6,519