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Table of Contents
ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — Continued
9. Commitments and Contingencies
Commitments
Future maturities of our contractual obligations are summarized as follows:
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.
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.”
F-37
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
• 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.
• 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.