Dish Network 2000 Annual Report Download - page 77

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ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–26
401(k) Employee Savings Plan
EchoStar sponsors a 401(k) Employee Savings Plan (the “401(k) Plan”) for eligible employees. Voluntary
employee contributions to the 401(k) Plan may be matched 50% by EchoStar, subject to a maximum annual
contribution by EchoStar of $1,000 per employee. EchoStar also may make an annual discretionary contribution to
the plan with approval by EchoStar’s Board of Directors, subject to the maximum deductible limit provided by the
Internal Revenue Code of 1986, as amended. EchoStar’s cash contributions to the 401(k) Plan totaled $314,000 in
1998 and 1999, and $1.6 million in 2000. Additionally, during 1998, EchoStar contributed 640,000 shares of its
Class A common stock (fair value of approximately $2 million) to the 401(k) Plan related to its 1997 discretionary
contribution. During 1999, EchoStar contributed 520,000 shares of its Class A common stock (fair value of
approximately $3 million) to the 401(k) Plan related to its 1998 discretionary contribution. During 2000, EchoStar
contributed 120,000 shares of its Class A common stock (fair value of approximately $6 million) to the 401(k) Plan
related to its 1999 discretionary contribution. EchoStar has not yet determined the amount to be contributed during
2001 relating to its 2000 discretionary contribution.
9. Other Commitments and Contingencies
Leases
Future minimum lease payments under noncancelable operating leases as of December 31, 2000, are as
follows (in thousands):
Year ending December 31,
2001 ............................................................................................. $ 10,627
2002 ............................................................................................. 10,407
2003 ............................................................................................. 9,369
2004 ............................................................................................. 4,032
2005 ............................................................................................. 2,245
Thereafter ..................................................................................... 4,505
Total minimum lease payments............................................... $ 41,185
Total rental expense for operating leases approximated $1 million in 1998, $3 million in 1999 and $5
million in 2000.
Purchase Commitments
As of December 31, 2000, EchoStar’s purchase commitments totaled approximately $204 million. The
majority of these commitments relate to EchoStar receiver systems and related components. All of the purchases
related to these commitments are expected to be made during 2001. EchoStar expects to finance these purchases
from existing unrestricted cash balances and future cash flows generated from operations, if any.