Dish Network 2006 Annual Report Download - page 122

Download and view the complete annual report

Please find page 122 of the 2006 Dish Network annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
F–37
9. Commitments and Contingencies
Commitments
Future maturities of our contractual obligations are summarized as follows:
Payments due by period
Total 2007 2008-2009 2010-2011 Thereafter
(In thousands)
Satellite-related obligations................. 2,758,699$ 658,047$ 711,128$ 268,930$ 1,120,594$
Operating lease obligations................. 91,849 32,462 39,637 16,187 3,563
Purchase obligations ........................... 1,258,289 934,780 294,219 29,290 -
Total.................................................... 4,108,837$ 1,625,289$ 1,044,984$ 314,407$ 1,124,157$
Satellite-Related Obligations
Satellites under Construction. We have entered into contracts to construct new satellites which are contractually
scheduled to be completed within the next three years. Future commitments related to these satellites are included in
the table above under “Satellite-related obligations” except where noted below.
• During 2004, we entered into a contract for the construction of EchoStar XI which is expected to be
completed in 2007. However, the launch could be delayed until the second half of 2008 as a result of
problems currently being experienced by the launch provider, Sea Launch.
• During 2004 and 2005, we entered into contracts for the construction of four additional SSL Ka and/or Ku
extended band satellites which are expected to be completed during 2008 and 2009.
• CMBStar, an S-band satellite, is scheduled to be completed during the second quarter of 2008. Provided
required regulatory approvals are obtained and contractual conditions are satisfied, the transponder capacity
of that satellite will be leased to an affiliate of a Chinese regulatory entity to support the development of
satellite-delivered mobile video services in China.
• During January 2007, we entered into a contract for the construction of EchoStar XIV which is expected to
be completed during 2009. Future commitments related to this satellite are not included in the table above.
Leased Satellites. In addition to our lease of the AMC-15 and AMC-16 satellites (Note 5), we have also entered
into satellite service agreements to lease capacity on other satellites discussed below. Future commitments related to
these satellites are included in the table above under “Satellite-related obligations.”
• We are currently leasing all of the capacity on an existing in-orbit FSS satellite, AMC-2, at the 85 degree
orbital location. Our lease of this satellite is expected to continue through 2007 and has been accounted for
as an operating lease.
• An SES Americom DBS satellite (“AMC-14”) which is currently expected to launch during late 2007 and
commence commercial operation at an orbital location to be determined at a future date. The initial ten-
year lease for all of the capacity on the satellite will be accounted for as a capital lease. The satellite is
being equipped with transmit antennas optimized for multiple orbital locations, providing greater backup
flexibility in the event certain other in-orbit satellites fail.
• A Telesat FSS satellite (“Anik F3”) which is currently expected to launch during the second quarter of
2007. We are required to make monthly payments for the 15-year period following commencement of
commercial operation. We will account for the Telesat Anik F3 satellite agreement as a capital lease.