Dish Network 2013 Annual Report Download - page 134

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-24
Satellites
DBS Satellites. As of December 31, 2013, we utilized 14 satellites in geostationary orbit approximately 22,300
miles above the equator, six of which we owned and depreciated over the useful life of each satellite. As of
December 31, 2013, we utilized capacity on six satellites from EchoStar, which were accounted for as operating
leases. As of December 31, 2013, we also leased two satellites from third parties, which were accounted for as
capital leases and were depreciated over the shorter of the economic life or the term of the satellite agreement.
Degree Estimated
Launch Orbital Useful Life
Satellites Date Location (Years)
Owned:
EchoStar I (1)(5)............................. December 1995 77 12
EchoStar VII (2)(5)......................... February 2002 119 15
EchoStar X (2)(5)........................... February 2006 110 15
EchoStar XI (2)(5).......................... July 2008 110 15
EchoStar XIV (5)............................ March 2010 119 15
EchoStar XV................................... July 2010 45 15
Leased from EchoStar:
EchoStar VIII (1)(3)(4)................... August 2002 77 NA
EchoStar IX (1)(3).......................... August 2003 121 NA
EchoStar XII (1)(4)......................... July 2003 61.5 NA
Nimiq 5 (1)(3)................................. September 2009 72.7 NA
EchoStar XVI (1)............................ November 2012 61.5 NA
QuetzSat-1 (1)(3)............................ September 2011 77 NA
Leased from Other Third Party:
Anik F3........................................... April 2007 118.7 NA
Ciel II.............................................. December 2008 129 NA
Under Construction:
EchoStar XVIII............................... 2015 110 15
(1) See Note 20 for further discussion of our Related Party Transactions with EchoStar.
(2) During the fourth quarter 2012, the estimated useful life of these satellites was extended from 12 years to
15 years on a prospective basis based on management’s assessment of, among other things, these satellites’
useful lives, technological obsolescence risk, estimated remaining fuel life and estimated useful lives of our
other DBS satellites. This increase in the estimated useful life of these satellites had an immaterial effect
on our results of operations.
(3) We lease a portion of the capacity on these satellites.
(4) We generally have the option to renew each lease on a year-to-year basis through the end of the respective
satellite’s useful life.
(5) On February 20, 2014, we entered into agreements with EchoStar pursuant to which, among other things, we
will transfer these satellites to EchoStar and lease back certain satellite capacity on these satellites. See Note
21 for further discussion of our Subsequent Events.