Dish Network 2015 Annual Report Download - page 159

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-55
Guarantees
During the third quarter 2009, EchoStar entered into a satellite transponder service agreement for Nimiq 5 through
2024. We sublease this capacity from EchoStar and also guarantee a certain portion of EchoStar’s obligation under
its satellite transponder service agreement through 2019.
As of December 31, 2015, the remaining obligation of our
guarantee was $248 million.
As of December 31, 2015, we have not recorded a liability on the balance sheet for this guarantee.
Purchase Obligations
Our 2016 purchase obligations primarily consist of binding purchase orders for receiver systems and related
equipment, broadband equipment, digital broadcast operations, transmission costs, engineering services, and other
products and services related to the operation of our Pay-TV services and broadband service. Our purchase
obligations also include certain fixed contractual commitments to purchase programming content. Our purchase
obligations can fluctuate significantly from period to period due to, among other things, management’s timing of
payments and inventory purchases, and can materially impact our future operating asset and liability balances, and
our future working capital requirements.
Programming Contracts
In the normal course of business, we enter into contracts to purchase programming content in which our payment
obligations are generally contingent on the number of Pay-TV subscribers to whom we provide the respective
content. These programming commitments are not included in the “Commitments” table above. The terms of our
contracts typically range from one to ten years with annual rate increases. Our programming expenses will continue
to increase to the extent we are successful in growing our Pay-TV subscriber base. In addition, programming costs
continue to increase due to contractual price increases and the renewal of long-term programming contracts on less
favorable pricing terms.
Rent Expense
Total rent expense for operating leases related to our continuing operations was $477 million, $469 million and $307
million in 2015, 2014 and 2013, respectively. Rent expense in 2014 increased as a result of the Satellite and
Tracking Stock Transaction. See Note 6 and Note 19 for further information.