Dish Network 2008 Annual Report Download - page 116

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-34
Capital Lease Obligations, Mortgages and Other Notes Payable
Capital lease obligations, mortgages and other notes payable consist of the following:
2008 2007
Satellites and other capital lease obligations............................................................................................. 186,545$ 563,547$
8% note payable for EchoStar VII satellite vendor financing, payable over 13 years from launch........... 9,881 10,906
8% note payable for EchoStar IX satellite vendor financing, payable over 14 years from launch............ - 8,139
6% note payable for EchoStar X satellite vendor financing, payable over 15 years from launch............. 12,498 13,248
6% note payable for EchoStar XI satellite vendor financing, payable over 15 years from launch............ 17,500 -
Mortgages and other unsecured notes payable due in installments through 2017
with interest rates ranging from approximately 2% to 13% ................................................................ 6,332 4,864
Total ......................................................................................................................................................... $ 232,756 $ 600,704
Less current portion ............................................................................................................................. (13,333) (50,454)
Capital lease obligations, mortgages and other notes payable, net of current portion .............................. $ 219,423 $ 550,250
As of December 31,
(In thousands)
Capital Lease Obligations
Anik F3. Anik F3, an FSS satellite, was launched and commenced commercial operation during April
2007. This satellite is accounted for as a capital lease pursuant to SFAS 13 and depreciated over the term
of the satellite service agreement. We have leased all of the 32 Ku-band transponders on Anik F3 for a
period of 15 years.
As of December 31, 2008 and 2007, we had $223 million and $775 million capitalized for the estimated
fair value of satellites acquired under capital leases included in “Property and equipment, net,” with related
accumulated depreciation of $26 million and $175 million, respectively. This decrease during 2008 related
to the contribution of the AMC-15 and AMC-16 satellite lease agreements to EchoStar in connection with
the Spin-off. In our Consolidated Statements of Operations and Comprehensive Income (Loss), we
recognized $15 million, $66 million and $55 million in depreciation expense on satellites acquired under
capital lease agreements during the years ended December 31, 2008, 2007 and 2006, respectively.
Future minimum lease payments under the capital lease obligation, together with the present value of the
net minimum lease payments as of December 31, 2008 are as follows (in thousands):
For the Year Ending December 31,
2009.............................................................................................................................................................. 48,799$
2010.............................................................................................................................................................. 48,297
2011.............................................................................................................................................................. 48,000
2012.............................................................................................................................................................. 48,000
2013.............................................................................................................................................................. 48,000
Thereafter...................................................................................................................................................... 400,000
Total minimum lease payments..................................................................................................................... 641,096
Less: Amount representing lease of the orbital location and estimated executory costs (primarily
insurance and maintenance) including profit thereon, included in total minimum lease payments............. (346,719)
Net minimum lease payments....................................................................................................................... 294,377
Less: Amount representing interest.............................................................................................................. (107,832)
Present value of net minimum lease payments.............................................................................................. 186,545
Less: Current portion................................................................................................................................... (9,229)
Long-term portion of capital lease obligations.............................................................................................. 177,316$