Dish Network 2002 Annual Report Download - page 77

ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-17
The following table summarizes the book and fair values of EchoStar’s debt facilities at December 31, 2001
and 2002 (in thousands):
December 31, 2001 December 31, 2002
Book Value Fair Value Book Value Fair Value
9 1/4% Seven Year Notes*............................... $ 375,000 $ 382,500 $ 375,000 $ 386,250
9 3/8% Ten Year Notes .................................... 1,625,000 1,673,750 1,625,000 1,706,250
10 3/8% Seven Year Notes............................... 1,000,000 1,040,000 1,000,000 1,070,000
9 1/8% Seven Year Notes................................. 700,000 701,750 700,000 717,500
4 7/8% Convertible Notes ................................ 1,000,000 891,300 1,000,000 897,960
5 3/4% Convertible Notes ................................ 1,000,000 896,300 1,000,000 910,420
Mortgages and other notes payable .................. 21,262 21,262 47,053 47,053
*Effective February 1, 2003, these notes were redeemed. See Note 14 – Subsequent Events for further
discussion.
Due to their short-term nature, book value approximates fair value for cash and cash equivalents, trade
accounts receivable, net of allowance and current liabilities for the periods ending December 31, 2001 and 2002.
Deferred Debt Issuance Costs and Debt Discount
Costs of issuing debt are generally deferred and amortized to interest expense over the terms of the respective
notes (see Notes 4 and 14).
Revenue Recognition
Revenue from the provision of DISH Network subscription television services and other satellite services is
recognized as revenue in the period such services are provided. Revenue from international sales of digital set-top boxes
and related accessories is recognized upon shipment to customers. Specific revenue and subscriber acquisition cost
recognition policies relating to the significant marketing promotions for the period are discussed below.
I Like 9 – During August 2001, we commenced our I Like 9 promotion. Under this promotion, subscribers
who purchased an EchoStar receiver system for $199 or higher received free installation and either our America’s Top
100 CD or our DISH Latino Dos programming package for $9 a month for the first year. Subscriber acquisition costs
are materially lower under this plan compared to historical promotions. This promotion expired January 31, 2002.
Free Dish – Our Free Dish promotion, under which subscribers receive a free base-level EchoStar receiver
system, commenced during August 2001. To be eligible, subscribers must provide a valid major credit card and make a
one-year commitment to subscribe to a qualified programming package. Effective July 13, 2002, eligible subscribers are
able to purchase a second receiver for $49.99.
1-2-3 Great TV – During January 2002, we commenced our 1-2-3 Great TV promotion. Under this promotion,
subscribers who purchased one or more receivers, provided a valid major credit card and made a one-year commitment,
received the first three months of qualified programming and installation of up to two receivers for free. This promotion
expired on July 31, 2002.
Free for All – Effective August 1, 2002, we commenced our Free for All promotion. Under this promotion,
subscribers who purchase up to two receivers for $149 or more, depending on the models chosen, and subscribe to a
qualifying programming package, receive free installation, together with credits of $12.50 or $17.00 applied to their
programming bill each month for a year.