Dish Network 2009 Annual Report Download - page 120

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-30
Other Long-Term Debt and Capital Lease Obligations
Other long-term debt and capital lease obligations consist of the following:
2009 2008
Satellites and other capital lease obligations............................................................................................. 304,457$ 186,545$
8% note payable for EchoStar VII satellite vendor financing, payable over 13 years from launch........... 8,773 9,881
6% note payable for EchoStar X satellite vendor financing, payable over 15 years from launch............. 11,704 12,498
6% note payable for EchoStar XI satellite vendor financing, payable over 15 years from launch............ 16,748 17,500
Mortgages and other unsecured notes payable due in installments through 2017
with interest rates ranging from approximately 2% to 13% ................................................................ 4,8 8 2 6,332
Total ......................................................................................................................................................... 346,564 232,756
Less current portion ............................................................................................................................. (26,518) (13,333)
Other long-term debt and capital lease obligations, net of current portion ............................................... $ 320,046 $ 219,423
As of December 31,
(In thousands)
Capital Lease Obligations
Anik F3. Anik F3, an FSS satellite, was launched and commenced commercial operation during April 2007. This
satellite is accounted for as a capital lease and depreciated over the term of the satellite service agreement. We have
leased 100% of the Ku-band capacity on Anik F3 for a period of 15 years.
Ciel II. Ciel II, a Canadian DBS satellite, was launched in December 2008 and commenced commercial operation
during February 2009. This satellite is accounted for as a capital lease and depreciated over the term of the satellite
service agreement. We have leased 100% of the capacity on Ciel II for an initial ten-year term.
As of December 31, 2009 and 2008, we had $500 million and $223 million capitalized for the estimated fair value
of satellites acquired under capital leases included in “Property and equipment, net,” with related accumulated
depreciation of $66 million and $26 million, respectively. In our Consolidated Statements of Operations and
Comprehensive Income (Loss), we recognized $40 million, $15 million and $66 million in depreciation expense on
satellites acquired under capital lease agreements during the years ended December 31, 2009, 2008 and 2007,
respectively.
Future minimum lease payments under the capital lease obligation, together with the present value of the net
minimum lease payments as of December 31, 2009 are as follows (in thousands):
For the Years Ended December 31,
2010.............................................................................................................................................................. 81,263$
2011.............................................................................................................................................................. 78,353
2012.............................................................................................................................................................. 75,970
2013.............................................................................................................................................................. 75,970
2014.............................................................................................................................................................. 75,970
Thereafter...................................................................................................................................................... 466,209
Total minimum lease payments..................................................................................................................... 853,735
Less: Amount representing lease of the orbital location and estimated executory costs (primarily
insurance and maintenance) including profit thereon, included in total minimum lease payments............. (392,544)
Net minimum lease payments....................................................................................................................... 461,191
Less: Amount representing interest.............................................................................................................. (156,734)
Present value of net minimum lease payments.............................................................................................. 304,457
Less: Current portion................................................................................................................................... (22,375)
Long-term portion of capital lease obligations.............................................................................................. 282,082$
The summary of future maturities of our outstanding long-term debt as of December 31, 2009 is included in the
commitments table in Note 14.