Dish Network 2013 Annual Report Download - page 148

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-38
Other Long-Term Debt and Capital Lease Obligations
Other long-term debt and capital lease obligations consist of the following:
2013 2012
Satellites and other capital lease obligations............................................................................................. 220,115$ 248,729$
Notes payabl e related to satellite vendor financing and other debt payable in installments
through 2025 with interest rates ranging from approximately 6% to 13%........................................... 80,769 88,955
Total.......................................................................................................................................................... 300,884 337,684
Less current portion............................................................................................................................. (34,893) (37,285)
Other long-term debt and capital lease obligations, net of current portion............................................... $ 265,991 $ 300,399
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 10 year term.
As of December 31, 2013 and 2012, we had $500 million capitalized for the estimated fair value of satellites
acquired under capital leases included in “Property and equipment, net,” with related accumulated depreciation of
$236 million and $194 million, respectively. In our Consolidated Statements of Operations and Comprehensive
Income (Loss), we recognized $43 million, $43 million and $43 million in depreciation expense on satellites
acquired under capital lease agreements during the years ended December 31, 2013, 2012 and 2011, respectively.
Future minimum lease payments under the capital lease obligations, together with the present value of the net
minimum lease payments as of December 31, 2013 are as follows (in thousands):
For the Years Ended December 31,
2014.............................................................................................................................................................. 78,158$
2015.............................................................................................................................................................. 76,007
2016.............................................................................................................................................................. 76,007
2017.............................................................................................................................................................. 76,007
2018.............................................................................................................................................................. 75,982
Thereafter..................................................................................................................................................... 162,331
Total minimum lease payments.................................................................................................................... 544,492
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............. (254,832)
Net minimum lease payments....................................................................................................................... 289,660
Less: Amount representing interest.............................................................................................................. (69,545)
Present value of net minimum lease payments.............................................................................................. 220,115
Less: Current portion................................................................................................................................... (27,042)
Long-term portion of capital lease obligations............................................................................................. 193,073$
The summary of future maturities of our outstanding long-term debt as of December 31, 2013 is included in the
commitments table in Note 16. In addition, see Note 21 for further discussion of our Subsequent Events.