Dish Network 2010 Annual Report Download - page 116

Download and view the complete annual report

Please find page 116 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-31
Other Long-Term Debt and Capital Lease Obligations
Other long-term debt and capital lease obligations consist of the following:
2010 2009
Satellites and other capital lease obligations............................................................................................. 286,971$ 304,457$
8% note payable for EchoStar VII satellite vendor financing, payable over 13 years from launch.......... 7,577 8,773
6% note payable for EchoStar X satellite vendor financing, payable over 15 years from launch............. 10,862 11,704
6% note payable for EchoStar XI satellite vendor financing, payable over 15 years from launch............ 15,951 16,748
6% note payable for EchoStar XIV satellite vendor financing, payable over 15 years from launch......... 22,000 -
6% note payable for EchoStar XV satellite vendor financing, payable over 15 years from launch.......... 18,000 -
Mortgages and other unsecured notes payable due in installments through 2017
with interest rates ranging from approximately 2% to 13% ................................................................ 3,575 4,882
Total ......................................................................................................................................................... 364,936 346,564
Less current portion ............................................................................................................................ (30,895) (26,518)
Other long-term debt and capital lease obligations, net of current portion .............................................. $ 334,041 $ 320,046
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 and depreciated over the term of the satellite service
agreement. We have leased 100% of the Ku-band capacity on Anik F3 for a period of 15 years.
Ciel II. Ciel II, a Canadian DBS satellite, was launched in December 2008 and commenced commercial
operation during February 2009. This satellite is accounted for as a capital lease and depreciated over the
term of the satellite service agreement. We have leased 100% of the capacity on Ciel II for an initial ten-
year term.
As of December 31, 2010 and 2009, we had $500 million capitalized for the estimated fair value of
satellites acquired under capital leases included in “Property and equipment, net,” with related accumulated
depreciation of $109 million and $66 million, respectively. In our Consolidated Statements of Operations
and Comprehensive Income (Loss), we recognized $43 million, $40 million and $15 million in
depreciation expense on satellites acquired under capital lease agreements during the years ended
December 31, 2010, 2009 and 2008, respectively.