Dish Network 1999 Annual Report Download - page 76

ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
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permanent prohibition on its broadcast of ABC, NBC, CBS and Fox network channels by satellite. The litigation and
the new legislation discussed above, among other things, could also require EchoStar to terminate delivery of
network signals to a material portion of our subscriber base, which could cause many of these subscribers to cancel
their subscription to EchoStar’s other services. While the networks have not sought monetary damages, they have
sought to recover attorney fees if they prevail. EchoStar has sent letters to some of its subscribers warning that their
access to distant broadcast network channels might be terminated soon and have terminated ABC, NBC, CBS and
Fox programming to many customers.
In November 1999, Congress passed new legislation regarding the satellite delivery of network
programming and it was signed into law by President Clinton. This new law has the potential of reducing the
number of customers whose network channels EchoStar may otherwise be required to terminate as the law
“grandfathers” in many subscribers.
Meteoroid Events
In November 1998 and 1999, certain meteoroid events occurred as the Earth's orbit passed through the
particulate trail of Comet 55P (Tempel-Tuttle). Similar meteoroid events are expected to occur again in November
2000. These meteoroid events pose a potential threat to all in orbit geosynchronous satellites including our DBS
satellites. While the probability that our satellites will be damaged by space debris is very small, that probability will
increase by several orders of magnitude during these meteoroid events.
11. Summary Financial Information for Subsidiary Guarantors
With the exception of certain de minimis domestic and foreign subsidiaries (collectively, the “Non-
Guarantors”), the Seven and Ten Year Notes are fully, unconditionally and jointly and severally guaranteed by all
subsidiaries of DBS Corp.
The combined assets, stockholders’ equity, net loss and operating cash flows of the Non-Guarantors
represent less than 1% of the combined and consolidated assets, stockholders’ equity, net loss and operating cash
flows of DBS Corp, including the non-guarantors during both 1998 and 1999. Summarized combined and
consolidated financial information for DBS Corp is as follows (in thousands):
Year Ended December 31,
1997 1998 1999
Statement of Operations Data:
Revenue $ 475,877 $ 985,909 $ 1,606,291
Expenses 700,104 1,116,764 1,959,860
Operating loss (224,227) (130,855) (353,569)
Other income (expense) (98,941) (163,449) (208,716)
Net loss before taxes (323,168) (294,304) (562,285)
Income tax benefit (provision), net (146) (72) (131)
Net loss before extraordinary charges (323,314) (294,376) (562,416)
Extraordinary charge for early retirement of debt, net of tax – – (228,733)
Net loss $ (323,314) $ (294,376) $ (791,149)
December 31,
1998 1999
Balance Sheets Data:
Current assets ................................................................................................................. $ 241,582 $ 591,939
Property and equipment, net.......................................................................................... 853,818 1,579,636
Other noncurrent assets ................................................................................................. 374,773 558,632
Total assets ..................................................................................................................... $ 1,470,173 $ 2,730,207
Current liabilities ........................................................................................................... $ 477,062 $ 1,206,889
Long-term liabilities ...................................................................................................... 1,581,249 2,046,872
Stockholder’s equity (deficit) ........................................................................................ (588,138) (523,554)
Total liabilities and stockholder’s equity (deficit) ....................................................... $ 1,470,173 $2,730,207