Dish Network 2012 Annual Report Download - page 58

DISH NETWORK CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)
(In thousands)
The accompanying notes are an integral part of these consolidated financial statements.
Accumulated
Class A and B Additional Other Accumulated
Common Paid-In Comprehensive Earnings Treasury Noncontrolling
Stock Capital Income (Loss) (Deficit) Stock Interest Total
Balance, December 31, 2009............................................................. 4,973$ 2,120,211$ 5,614$ (2,760,589)$ (1,462,380)$ 483$ (2,091,688)$
Investment securities - fair value election (Note 6)............................. - - 49,656 (49,656) - - -
Issuance of Class A common stock:
Exercise of stock options................................................................ 5 4,134 - - - - 4,139
Employee benefits........................................................................... 14 29,113 - - - - 29,127
Employee Stock Purchase Plan....................................................... 1 2,379 - - - - 2,380
Class A common stock repurchases, at cost......................................... - - - - (107,079) - (107,079)
Non-cash, stock-based compensation.................................................. - 15,387 - - - - 15,387
Income tax (expense) benefit related to stock awards and other.......... - 575 - - - - 575
Change in unrealized holding gains (losses)
on available-for-sale securities, net................................................. - - 46,496 - - - 46,496
Foreign currency translation................................................................ - - (13,476) - - - (13,476)
Deferred income tax (expense) benefit attributable to
foreign currency translation............................................................. - - 5,067 - - - 5,067
Capital transaction with EchoStar in connection with purchases
of strategic investments, net of tax of $2,895 (Note 20).................. - - - (9,103) - - (9,103)
Net income (loss) attributable to noncontrolling interest..................... - - - - - 3 3
Net income (loss) attributable to DISH Network................................. - - - 984,729 - - 984,729
Balance, December 31, 2010............................................................. 4,993 2,171,799 93,357 (1,834,619) (1,569,459) 486 (1,133,443)
Issuance of Class A common stock:
Exercise of stock options................................................................ 24 36,892 - - - - 36,916
Employee benefits........................................................................... 13 24,791 - - - - 24,804
Employee Stock Purchase Plan ...................................................... 1 3,078 - - - - 3,079
Non-cash, stock-based compensation.................................................. - 31,511 - - - 10 31,521
Income tax (expense) benefit related to stock awards and other.......... - 5,934 - - - - 5,934
Change in unrealized holding gains (losses)
on available-for-sale securities, net................................................. - - (2,175) - - - (2,175)
Foreign currency translation................................................................ - - (9,139) - - - (9,139)
Cash dividend on Class A and Class B
common stock ($2.00 per share)...................................................... - - - (893,278) - - (893,278)
Acquisition of noncontrolling interest in subsidiary............................ - - - - - 1,200 1,200
Net income (loss) attributable to noncontrolling interest..................... - - - - - (329) (329)
Net income (loss) attributable to DISH Network................................. - - - 1,515,907 - - 1,515,907
Balance, December 31, 2011............................................................. 5,031 2,274,005 82,043 (1,211,990) (1,569,459) 1,367 (419,003)
Issuance of Class A common stock:
Exercise of stock options ............................................................... 50 91,146 - - - 46 91,242
Employee benefits........................................................................... 8 22,272 - - - - 22,280
Employee Stock Purchase Plan....................................................... 1 3,609 - - - - 3,610
Non-cash, stock-based compensation.................................................. - 40,719 - - - 251 40,970
Income tax (expense) benefit related to stock awards and other.......... - 8,875 - - - - 8,875
Change in unrealized holding gains (losses)
on available-for-sale securities, net................................................. - - 115,546 - - - 115,546
Foreign currency translation................................................................ - - 4,106 - - - 4,106
Deferred income tax (expense) benefit attributable to
unrealized gains (losses) on available-for-sale securities................. - - (12,892) - - - (12,892)
Cash dividend on Class A and Class B
common stock ($1.00 per share)...................................................... - - - (452,890) - - (452,890)
Disposition of noncontrolling interest in subsidiary............................ - - - - - (668) (668)
Assets contributed by EchoStar to DISH Digital Holding L.L.C......... - - - - - 44,712 44,712
Net income (loss) attributable to noncontrolling interest..................... - - - - - (10,947) (10,947)
Net income (loss) attributable to DISH Network................................. - - - 636,687 - - 636,687
Balance, December 31, 2012............................................................. 5,090$ 2,440,626$ 188,803$ (1,028,193)$ (1,569,459)$ 34,761$ 71,628$
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DISH NETWORK CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
The accompanying notes are an integral part of these consolidated financial statements.
2012 2011 2010
Cash Flows From Operating Activities:
Net income (loss)....................................................................................................................................................... 625,740$ 1,515,578$ 984,732$
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization.............................................................................................................................. 983,049 922,073 983,965
Realized and unrealized losses (gains) on investments......................................................................................... (172,314) (8,019) (33,703)
Non-cash, stock-based compensation.................................................................................................................... 40,970 31,521 15,387
Deferred tax expense (benefit) (Note 12).............................................................................................................. 350,324 627,927 201,400
Other, net............................................................................................................................................................... 31,343 16,150 17,721
Change in noncurrent assets.................................................................................................................................. (65,543) 16,976 401
Change in long-term deferred revenue, distribution and carriage payments and other long-term liabilities......... 33,554 21,604 (124,759)
Changes in current assets and current liabilities:
Trade accounts receivable - other...................................................................................................................... (66,076) 34,266 (41,652)
Allowance for doubtful accounts....................................................................................................................... 1,172 (17,300) 13,278
Prepaid income taxes......................................................................................................................................... (110,608) 72,638 (37,532)
Trade accounts receivable - EchoStar............................................................................................................... (2,242) (2,109) 24,192
Inventory........................................................................................................................................................... 124,032 (139,225) (229,154)
Other current assets........................................................................................................................................... 28,280 (15,054) 2,461
Trade accounts payable..................................................................................................................................... 67,675 32,592 20,218
Trade accounts payable - EchoStar................................................................................................................... 48,901 (9,145) (32,544)
Deferred revenue and other............................................................................................................................... 17,679 10,568 (11,896)
Litigation expense accrual (Note 16 and Note 20)............................................................................................ 5,419 (316,949) 225,456
Litigation settlement payments (Note 20)......................................................................................................... - (350,000) -
Accrued programming and other accrued expenses.......................................................................................... 70,520 129,786 161,831
Net cash flows from operating activities................................................................................................... 2,011,875 2,573,878 2,139,802
Cash Flows From Investing Activities:
Purchases of marketable investment securities........................................................................................................... (3,971,451) (5,407,328) (5,359,284)
Sales and maturities of marketable investment securities........................................................................................... 2,046,648 6,210,191 5,090,462
Purchases of property and equipment......................................................................................................................... (957,566) (778,905) (1,113,219)
Launch service assigned from EchoStar (Note 20).................................................................................................... - - (102,913)
Change in restricted cash and marketable investment securities................................................................................ (1,973) 12,361 (2,921)
DBSD North America Transaction, less cash acquired of $5,230 (Note 10)............................................................. (40,015) (1,139,201) -
TerreStar Transaction (Note 10)................................................................................................................................ (36,942) (1,345,000) -
Purchase of Blockbuster assets, net of cash acquired of $107,061 (Note 10)............................................................ - (126,523) -
Sprint Settlement Agreement (Note 10)..................................................................................................................... - (114,150) -
Purchase of FCC Licenses ......................................................................................................................................... (24,000) - -
Purchase of other strategic investments...................................................................................................................... (10,000) (9,275) (11,742)
Proceeds from sale of strategic investments............................................................................................................... - 11,327 22,002
Other.......................................................................................................................................................................... (23,915) (8,825) 94
Net cash flows from investing activities..................................................................................................... (3,019,214) (2,695,328) (1,477,521)
Cash Flows From Financin
g
Activities:
Proceeds from issuance of long-term debt................................................................................................................. 4,400,000 2,000,000 -
Debt issuance costs.................................................................................................................................................... (13,246) (27,261) -
Repayment of long-term debt and capital lease obligations....................................................................................... (37,539) (32,236) (26,910)
Repurchases and redemption of 6 3/8% Senior Notes due 2011................................................................................ - (1,000,000) -
Class A common stock repurchases (Note 13)........................................................................................................... - - (107,079)
Net proceeds from Class A common stock options exercised
and stock issued under the Employee Stock Purchase Plan.................................................................................... 94,852 39,995 6,520
Cash dividend on Class A and Class B common stock.............................................................................................. (452,890) (893,278) -
Other.......................................................................................................................................................................... 11,307 6,777 16
Net cash flows from financing activities.................................................................................................... 4,002,484 93,997 (127,453)
Effect of exchange rates on cash and cash equivalents............................................................................. 1,887 (4,111) -
Net increase (decrease) in cash and cash equivalents................................................................................................. 2,997,032 (31,564) 534,828
Cash and cash equivalents, beginning of period......................................................................................................... 609,108 640,672 105,844
Cash and cash equivalents, end of period................................................................................................................... 3,606,140$ 609,108$ 640,672$
For the Years Ended December 31,
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