Dish Network 2013 Annual Report Download - page 47

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We may need additional capital, which may not be available on acceptable terms or at all, to continue investing
in our businesses and to finance acquisitions and other strategic transactions.
We may need to raise additional capital in the future, which may not be available on acceptable terms or at all, to
among other things, continue investing in our businesses, construct and launch new satellites, and to pursue
acquisitions and other strategic transactions.
Furthermore, weakness in the equity markets could make it difficult for us to raise equity financing without
incurring substantial dilution to our existing shareholders. In addition, sustained economic weakness or weak results
of operations may limit our ability to generate sufficient internal cash to fund these investments, capital
expenditures, acquisitions and other strategic transactions. As a result, these conditions make it difficult for us to
accurately forecast and plan future business activities because we may not have access to funding sources necessary
for us to pursue organic and strategic business development opportunities.
A portion of our investment portfolio is invested in securities that have experienced limited or no liquidity and
may not be immediately accessible to support our financing needs, including investments in public companies
that are highly speculative and have experienced and continue to experience volatility.
A portion of our investment portfolio is invested in auction rate securities and strategic investments, and as a result,
a portion of our portfolio has restricted liquidity. Liquidity in the markets for these investments has been adversely
impacted. If the credit ratings of these securities deteriorate or the lack of liquidity in the marketplace continues, we
may be required to record further impairment charges. Moreover, the sustained uncertainty of domestic and global
financial markets has greatly affected the volatility and value of our marketable investment securities. In addition, a
portion of our investment portfolio includes strategic and financial investments in debt and equity securities of
public companies that are highly speculative and have experienced and continue to experience volatility. Typically,
these investments are concentrated in a small number of companies. The fair value of these investments can be
significantly impacted by the risk of adverse changes in securities markets generally, as well as risks related to the
performance of the companies whose securities we have invested in, risks associated with specific industries, and
other factors. These investments are subject to significant fluctuations in fair value due to the volatility of the
securities markets and of the underlying businesses. The concentration of these investments as a percentage of our
overall investment portfolio fluctuates from time to time based on, among other things, the size of our investment
portfolio and our ability to liquidate these investments. In addition, because our portfolio may be concentrated in a
limited number of companies, we may experience a significant loss if any of these companies, among other things,
defaults on its obligations, performs poorly, does not generate adequate cash flow to fund its operations, is unable to
obtain necessary financing on acceptable terms, or at all, or files for bankruptcy, or if the sectors in which these
companies operate experience a market downturn. To the extent we require access to funds, we may need to sell
these securities under unfavorable market conditions, record further impairment charges and fall short of our
financing needs.
We have substantial debt outstanding and may incur additional debt.
As of December 31, 2013, our total debt, including the debt of our subsidiaries, was $13.651 billion. Our debt levels
could have significant consequences, including:
x requiring us to devote a substantial portion of our cash to make interest and principal payments on our debt,
thereby reducing the amount of cash available for other purposes. As a result, we would have limited
financial and operating flexibility in responding to changing economic and competitive conditions;
x limiting our ability to raise additional debt because it may be more difficult for us to obtain debt financing
on attractive terms; and
x placing us at a disadvantage compared to our competitors that are less leveraged.
In addition, we may incur substantial additional debt in the future. The terms of the indentures relating to our senior
notes permit us to incur additional debt. If new debt is added to our current debt levels, the risks we now face could
intensify.