Dish Network 2015 Annual Report Download - page 153

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-49
15. Commitments and Contingencies
Commitments
As of December 31, 2015, future maturities of our long-term debt, capital lease and contractual obligations are
summarized as follows:
Payments due by period
Total 2016 2017 2018 2019 2020 Thereafter
(In thousands)
Long-term debt obligations $ 13,630,996 $ 1,503,151 $ 903,170 $ 1,203,235 $ 1,403,305 $ 1,103,379 $ 7,514,756
Capital lease obligations 166,492 30,849 32,994 36,175 19,503 19,137 27,834
Interest expense on long-term debt
and capital lease obligations 4,206,125 772,289 716,328 646,445 618,716 479,170 973,177
Satellite-related obligations 1,960,083 411,734 336,526 327,197 301,102 241,371 342,153
Operating lease obligations 178,918 52,305 32,960 22,563 15,623 10,040 45,427
Purchase obligations 2,325,567 1,768,934 248,443 165,584 115,814 11,892 14,900
Total $ 22,468,181 $ 4,539,262 $ 2,270,421 $ 2,401,199 $ 2,474,063 $ 1,864,989 $ 8,918,247
In certain circumstances the dates on which we are obligated to make these payments could be delayed. These
amounts will increase to the extent that we procure launch and/or in-orbit insurance on our satellites or contract for
the construction, launch or lease of additional satellites.
The table above does not include $336 million of liabilities associated with unrecognized tax benefits that were
accrued, as discussed in Note 11 and are included on our Consolidated Balance Sheets as of December 31, 2015.
We do not expect any portion of this amount to be paid or settled within the next twelve months.
Wireless
DISH Network Spectrum
We have invested over $5.0 billion since 2008 to acquire certain wireless spectrum licenses and related assets.
700 MHz Licenses. In 2008, we paid $712 million to acquire certain 700 MHz E Block (“700 MHz”) wireless
spectrum licenses, which were granted to us by the FCC in February 2009. At the time they were granted, these
licenses were subject to certain interim and final build-out requirements. On October 29, 2013, the FCC issued an
order approving a voluntary industry solution to resolve certain interoperability issues affecting the lower 700 MHz
spectrum band (the “Interoperability Solution Order”), which requires us to reduce power emissions on our 700
MHz licenses. As part of the Interoperability Solution Order, the FCC, among other things, approved our request to
modify the original interim and final build-out requirements associated with our 700 MHz licenses so that by March
2017, we must provide signal coverage and offer service to at least 40% of our total E Block population (the
“Modified 700 MHz Interim Build-Out Requirement”). The FCC also approved our request to modify the 700 MHz
Final Build-Out Requirement so that by March 2021, we must provide signal coverage and offer service to at least
70% of the population in each of our E Block license areas (the “Modified 700 MHz Final Build-Out
Requirement”). While the modifications to our 700 MHz licenses provide us additional time to complete the build-
out requirements, the reduction in power emissions could have an adverse impact on our ability to fully utilize our
700 MHz licenses. If we fail to meet the Modified 700 MHz Interim Build-Out Requirement, the Modified 700
MHz Final Build-Out Requirement may be accelerated by one year, from March 2021 to March 2020, and we could
face the reduction of license area(s). If we fail to meet the Modified 700 MHz Final Build-Out Requirement, our
authorization may terminate for the geographic portion of each license in which we are not providing service.