Dish Network 2010 Annual Report Download - page 108

Download and view the complete annual report

Please find page 108 of the 2010 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 148

  • 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
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-23
Depreciation and amortization expense consists of the following:
2010 2009 2008
Equipment leased to customers............................................ $ 822,442 $ 799,169 $ 827,599
Satellites .............................................................................. 110,510 86,430 89,435
Buildings, furniture, fixtures, equipment and other.............. 51,013 54,434 83,196
Total depreciation and amortization................................ 983,965$ 940,033$ 1,000,230$
For the Years Ended December 31,
(In thousands)
Cost of sales and operating expense categories included in our accompanying Consolidated Statements of
Operations and Comprehensive Income (Loss) do not include depreciation expense related to satellites or
equipment leased to customers.
The cost of our satellites includes capitalized interest of $17 million, $20 million, and $17 million during
the years ended December 31, 2010, 2009 and 2008, respectively.
Satellites
We currently utilize 13 satellites in geostationary orbit approximately 22,300 miles above the equator, six
of which we own. We currently utilize capacity on five satellites from EchoStar, which are accounted for
as operating leases. We also lease two satellites from third parties, which are accounted for as capital
leases and are depreciated over the shorter of the economic life or the term of the satellite agreement.
Original
Degree Useful
Launch Orbital Life Lease Ter
m
Satellites Date Location (Years) (Years)
Owned:
EchoStar I (1).................................. December 1995 77 12
EchoStar VII .................................. February 2002 119 12
EchoStar X...................................... February 2006 110 12
EchoStar XI.................................... July 2008 110 12
EchoStar XIV.................................. March 2010 119 15
EchoStar XV................................... July 2010 61.5 15
Leased from EchoStar:
EchoStar VI (1)............................... July 2000 77 12
EchoStar VIII (1)(2)....................... August 2002 77 12
EchoStar IX (1)(2)(3)..................... August 2003 121 12
EchoStar XII (1)............................. July 2003 61.5 10
Nimiq 5 (1)(2)................................. September 2009 72.7 10 10
Leased from Other Third Party:
Anik F3 .......................................... April 2007 118.7 15 15
Ciel II.............................................. December 2008 129 10 10
Under Construction:
Leased from EchoStar:
QuetzSat-1 ..................................... Late 2011 77 10 10
EchoStar XVI.................................. 2012 61.5 10 10
(1) See Note 17 for further discussion of our Related Party Agreements.
(2) We lease a portion of the capacity on these satellites.
(3) Leased on a month to month basis.