Dish Network 2011 Annual Report Download - page 119

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-25
Satellites
We currently utilize 13 satellites in geostationary orbit approximately 22,300 miles above the equator, six of which we
own and depreciate over the useful life of each satellite. 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:
EchoStar XVI.................................. 2012 61.5 10 10
(1) See Note 20 for further discussion of our Related Party Transactions with EchoStar.
(2) We lease a portion of the capacity on these satellites.
(3) Leased on a month to month basis.
Recent Developments
Recent developments with respect to certain of our satellites are discussed below.
QuetzSat-1. During 2008, we entered into a transponder service agreement with EchoStar expiring in November 2021,
which will be accounted for as an operating lease. We will lease 24 DBS transponders on QuetzSat-1 when the satellite
is placed into commercial operation at the 77 degree orbital location. QuetzSat-1 was launched on September 29, 2011
and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location while we and EchoStar
explore alternative uses for the QuetzSat-1 satellite. In the interim, EchoStar is providing us with alternate capacity at
the 77 degree orbital location. See Note 20 for further discussion.