Dish Network 2013 Annual Report Download - page 159

DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-49
16. Commitments and Contingencies
Commitments
As of December 31, 2013, future maturities of our long-term debt, capital lease and contractual obligations are
summarized as follows:
Total 2014 2015 2016 2017 2018 Thereafter
Long-term debt obligations....................................................... 13,430,769$ 1,007,851$ 758,232$ 1,506,742$ 906,975$ 1,207,269$ 8,043,700$
Capital lease obligations........................................................... 220,115 27,042 27,372 30,058 32,993 36,175 66,475
Interest expense on long-term
debt and capital lease obligations.......................................... 4,740,541 839,650 742,084 656,798 600,634 530,523 1,370,852
Satellite-related obligations...................................................... 1,957,898 386,086 335,625 230,138 225,464 225,246 555,339
Operating lease obligations from continuing operations........... 179,355 45,868 36,205 31,792 15,150 8,438 41,902
Purchase obligations ................................................................ 3,051,767 1,858,654 444,657 322,254 165,059 136,059 125,084
Total.......................................................................................... 23,580,445$ 4,165,151$ 2,344,175$ 2,777,782$ 1,946,275$ 2,143,710$ 10,203,352$
Payments due by period
(In thousands)
In certain circumstances the dates on which we are obligated to make these payments could be delayed. These
amounts will increase to the extent we procure insurance for our satellites or contract for the construction, launch or
lease of additional satellites.
On February 20, 2014, we entered into agreements with EchoStar to implement a transaction pursuant to which,
among other things: (i) on March 1, 2014, we will transfer to EchoStar and Hughes Satellite Systems Corporation
(“HSSC”), a wholly-owned subsidiary of EchoStar, five satellites (EchoStar I, EchoStar VII, EchoStar X, EchoStar
XI and EchoStar XIV, including related in-orbit incentive obligations and interest payments of approximately $59
million) and approximately $11 million in cash in exchange for shares of a series of preferred tracking stock issued
by EchoStar and shares of a series of preferred tracking stock issued by HSSC; and (ii) beginning on March 1,
2014, we will lease back certain satellite capacity on these five satellites (collectively, the “Satellite and Tracking
Stock Transaction”). The Satellite and Tracking Stock Transaction with EchoStar for EchoStar I, EchoStar VII,
EchoStar X, EchoStar XI and EchoStar XIV will result in operating lease obligations of $148 million due 2014,
$175 million due 2015, $123 million due 2016, $102 million due 2017, $102 million due 2018 and $329 million due
thereafter. These obligations are not included in the table above. The Satellite and Tracking Stock Transaction with
EchoStar for EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV will also result in a reduction of
our long-term debt obligations associated with our in-orbit incentive payments of $5 million due 2014, $5 million
due 2015, $4 million due 2016, $4 million due 2017, $4 million due 2018 and $22 million due thereafter and a
reduction in our interest expense associated with our in-orbit incentive payments of $3 million due 2014, $2 million
due 2015, $2 million due 2016, $2 million due 2017, $1 million due 2018 and $5 million due thereafter. See Note
21 for further discussion of our Subsequent Events.
In addition, the table above does not include $151 million of liabilities associated with unrecognized tax benefits
that were accrued, as discussed in Note 12 and are included on our Consolidated Balance Sheets as of December 31,
2013. We do not expect any portion of this amount to be paid or settled within the next twelve months.
Wireless Spectrum
On March 2, 2012, the FCC approved the transfer of 40 MHz of AWS-4 wireless spectrum licenses held by DBSD
North America and TerreStar to us. On March 9, 2012, we completed the DBSD Transaction and the TerreStar
Transaction, pursuant to which we acquired, among other things, certain satellite assets and wireless spectrum
licenses held by DBSD North America and TerreStar. The total consideration to acquire the DBSD North America
and TerreStar assets was approximately $2.860 billion.