Dish Network 2004 Annual Report Download - page 116

ECHOSTAR COMMUNICATIONS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – Continued
8. Employee Benefit Plans
Employee Stock Purchase Plan
During 1997, the Board of Directors and shareholders approved an employee stock purchase plan (the “ESPP”),
effective beginning October 1, 1997. Under the ESPP, we are authorized to issue a total of 800,000 shares of Class
A common stock. Substantially all full-time employees who have been employed by us for at least one calendar
quarter are eligible to participate in the ESPP. Employee stock purchases are made through payroll deductions.
Under the terms of the ESPP, employees may not deduct an amount which would permit such employee to purchase
our capital stock under all of our stock purchase plans at a rate which would exceed $25,000 in fair market value of
capital stock in any one year. The purchase price of the stock is 85% of the closing price of the Class A common
stock on the last business day of each calendar quarter in which such shares of Class A common stock are deemed
sold to an employee under the ESPP. The ESPP shall terminate upon the first to occur of (i) October 1, 2007 or (ii)
the date on which the ESPP is terminated by the Board of Directors. During 2004, 2003 and 2002 employees
purchased approximately 78,000, 66,000 and 107,000 shares of Class A common stock through the ESPP,
respectively.
401(k) Employee Savings Plan
We sponsor a 401(k) Employee Savings Plan (the “401(k) Plan”) for eligible employees. Voluntary employee
contributions to the 401(k) Plan may be matched 50% by us, subject to a maximum annual contribution by us of
$1,000 per employee. Forfeitures of unvested participant balances which are retained by the 401(k) Plan may be
used to fund matching and discretionary contributions. We did not recognize any expense related to matching
401(k) contributions during the year ended December 31, 2004 as 401(k) Plan forfeitures were sufficient to fund all
of the company matching contributions. Expense recognized related to matching 401(k) contributions, net of
forfeitures, totaled approximately $632 thousand and $993 thousand during the years ended December 31, 2003 and
2002, respectively. We also may make an annual discretionary contribution to the plan with approval by our Board
of Directors, subject to the maximum deductible limit provided by the Internal Revenue Code of 1986, as amended.
These contributions may be made in cash or in our stock. Discretionary contributions, net of forfeitures, were
approximately $12.8 million, $15.4 million and $16.9 million relating to the 401(k) Plan years ended December 31,
2004, 2003 and 2002, respectively.
9. Commitments and Contingencies
Commitments
Future maturities of our contractual obligations are summarized as follows:
Payments due by period
Total 2005 2006-2007 2008-2009 Thereafter
(In thousands)
Satellite-related obligations........................... 2,117,673$ 177,126$ 519,632$ 407,175$ 1,013,740$
Operating lease obligations............................ 84,000 24,873 40,822 15,746 2,559
Purchase obligations ..................................... 1,449,183 1,233,437 91,729 98,060 25,957
Total............................................................... 3,650,856$ 1,435,436$ 652,183$ 520,981$ 1,042,256$
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