Dish Network 2008 Annual Report Download - page 136

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-54
17. Valuation and Qualifying Accounts
Our valuation and qualifying accounts as of December 31, 2008, 2007 and 2006 are as follows:
Balance at
Beginning
of Year
Charged to
Costs and
Expenses Deductions
Balance at
End of
Year
Allowance for doubtful accounts
For the years ended:
December 31, 2008............................ 14,019$ 98,629$ (97,441)$ 15,207$
December 31, 2007............................ 15,006$ 101,256$ (102,243)$ 14,019$
December 31, 2006............................ 11,523$ 68,911$ (65,428)$ 15,006$
Allowance for inventory
For the years ended:
December 31, 2008............................ 14,739$ 15,046$ (7,683)$ 22,102$
December 31, 2007............................ 12,878$ 2,642$ (781)$ 14,739$
December 31, 2006............................ 10,185$ 10,123$ (7,430)$ 12,878$
(In thousands)
18. Quarterly Financial Data (Unaudited)
Our quarterly results of operations are summarized as follows:
March 31 June 30 September 30 December 31
Year ended December 31, 2008:
Total revenue............................................... 2,844,394$ 2,914,990$ 2,936,781$ 2,921,022$
Operating income (loss)............................... 505,168 620,708 417,840 512,464
Net income (loss)......................................... 258,583 335,885 91,895 216,584
Basic income per share ............................... 0.58$ 0.75$ 0.20$ 0.48$
Diluted income per share ............................ 0.57$ 0.73$ 0.20$ 0.48$
Year ended December 31, 2007:
Total revenue .............................................. 2,644,985$ 2,760,008$ 2,794,327$ 2,891,055$
Operating income (loss)............................... 340,198 441,654 396,514 395,038
Net income (loss)......................................... 157,140 224,199 199,680 175,035
Basic income per share ............................... 0.35$ 0.50$ 0.45$ 0.39$
Diluted income per share ............................ 0.35$ 0.50$ 0.44$ 0.39$
(In thousands, except per share data)
For the Three Months Ended
19. Related Party Transactions with EchoStar
Following the Spin-off, EchoStar has operated as a separate public company and we have no continued
ownership interest in EchoStar. However, a substantial majority of the voting power of the shares of both
companies is owned beneficially by our Chief Executive Officer and Chairman, Charles W. Ergen.
EchoStar is our primary supplier of set-top boxes and digital broadcast operations and our key supplier of
transponder leasing. Generally all agreements entered into in connection with the Spin-off are based on
pricing equal to EchoStar’s cost plus a fixed margin (unless noted differently below), which will vary
depending on the nature of the products and services provided. Prior to the Spin-off, these products were
provided and services were performed internally at cost. The terms of our agreements with EchoStar
provide for an arbitration mechanism in the event we are unable to reach agreement with EchoStar as to the
additional amounts payable for products and services, under which the arbitrator will determine the
additional amounts payable by reference to the fair market value of the products and services supplied.