- Sep 9, 2003
- 12,308
- 2,007
I think that there isa lot of misinformation here about SEC Reports like 8Ks, 10 Ks, and 10Qs. Don't read too much into this. But the summary paragraph of this one is intereting. It spells out expected writeoffs due to the VOOM situation.
"Also as previously reported in their Form 8-K dated January 20, 2005, the Companies disclosed an expectation that they would be required to record material charges for impairment of the value of Rainbow DBS's assets under generally accepted accounting principles. The Companies were unable at that time in good faith to make a determination of the amount or range of amounts of the impairment charges or of the amount or range of amounts of the impairment charges that will result in future cash expenditures. On February 23, 2005, the Companies reported that they will record in the fourth quarter of 2004 a total pretax impairment charge of approximately $355 million (of which approximately $109 million will be recorded in Technical and Operating Expense and approximately $246 million will be recorded in Depreciation and Amortization). The Companies believe that no significant portion of the 2004 impairment charge will result in future cash expenditures. The estimates assume that the Companies will enter into a definitive agreement reflecting the terms of the Letter of Intent (a "Definitive Agreement"). If the Companies do not do so or if the terms of a Definitive Agreement vary from the terms of the Letter of Intent, changes to the impairment charge set forth above could be required to be reflected in the Companies' audited financial statements as of and for the year ended December 31, 2004, to be included in their Annual Report on Form 10-K for the year ended December 31, 2004. There may be additional impairment charges recorded in 2005, particularly if the transactions contemplated by the Rainbow 1 Agreement or a Definitive Agreement are not consummated or if they are consummated on terms different from those currently contemplated."
"Also as previously reported in their Form 8-K dated January 20, 2005, the Companies disclosed an expectation that they would be required to record material charges for impairment of the value of Rainbow DBS's assets under generally accepted accounting principles. The Companies were unable at that time in good faith to make a determination of the amount or range of amounts of the impairment charges or of the amount or range of amounts of the impairment charges that will result in future cash expenditures. On February 23, 2005, the Companies reported that they will record in the fourth quarter of 2004 a total pretax impairment charge of approximately $355 million (of which approximately $109 million will be recorded in Technical and Operating Expense and approximately $246 million will be recorded in Depreciation and Amortization). The Companies believe that no significant portion of the 2004 impairment charge will result in future cash expenditures. The estimates assume that the Companies will enter into a definitive agreement reflecting the terms of the Letter of Intent (a "Definitive Agreement"). If the Companies do not do so or if the terms of a Definitive Agreement vary from the terms of the Letter of Intent, changes to the impairment charge set forth above could be required to be reflected in the Companies' audited financial statements as of and for the year ended December 31, 2004, to be included in their Annual Report on Form 10-K for the year ended December 31, 2004. There may be additional impairment charges recorded in 2005, particularly if the transactions contemplated by the Rainbow 1 Agreement or a Definitive Agreement are not consummated or if they are consummated on terms different from those currently contemplated."
