Dish Network 2009 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2009 Dish Network annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
63
Other
We are also vulnerable to fraud, particularly in the acquisition of new subscribers. While we are addressing the
impact of subscriber fraud through a number of actions, including eliminating certain payment options for
subscribers, there can be no assurance that we will not continue to experience fraud which could impact our
subscriber growth and churn. The weak economic conditions may create greater incentive for signal theft and
subscriber fraud, which could lead to higher subscriber churn and reduced revenue.
Obligations and Future Capital Requirements
Contractual Obligations and Off-Balance Sheet Arrangements
As of December 31, 2009, future maturities of our debt and contractual obligations are summarized as follows:
Total 2010 2011 2012 2013 2014 Thereafter
Long-term debt obligations.................. 6,192,107$ 4,143$ 1,004,375$ 4,622$ 504,183$ 1,003,732$ 3,671,052$
Capital lease obligations...................... 304,457 22,375 21,043 20,569 22,630 25,943 191,897
Interest expense on long-term
debt and capital lease obligations..... 2,892,646 471,415 465,280 399,589 397,485 360,202 798,675
Satellite-related obligations................. 1,901,944 275,418 207,882 219,022 173,805 153,788 872,029
Operating lease obligations................. 135,510 54,562 31,386 24,975 13,567 5,049 5,971
Purchase obligations ........................... 1,395,012 1,331,031 22,460 18,750 18,941 3,830 -
Total.................................................... 12,821,676$ 2,158,944$ 1,752,426$ 687,527$ 1,130,611$ 1,552,544$ 5,539,624$
Payments due by period
(In thousands)
The table above does not include $240 million of liabilities associated with unrecognized tax benefits which were
accrued, as discussed in Note 10 in the Notes to the Consolidated Financial Statements in Item 15 of this Annual
Report on Form 10-K, and are included on our Consolidated Balance Sheets as of December 31, 2009. We do not
expect any portion of this amount to be paid or settled within the next twelve months.
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.
We have semi-annual cash interest requirements for our outstanding long-term debt securities, which are included in
the table above. See Note 9 in the Notes to the Consolidated Financial Statements in Item 15 of this Annual Report on
Form 10-K for details.
Other than the “Guarantees” disclosed in Note 14 to our Consolidated Financial Statements in Item 15 of this
Annual Report on Form 10-K., we generally do not engage in off-balance sheet financing activities.
Satellite-Related Obligations
Satellites Under Construction. As of December 31, 2009, we had entered into the following contracts to construct
new satellites which are contractually scheduled to be completed within the next year. Future commitments related
to these satellites are included in the table above under “Satellite-related obligations” except where noted below.
x EchoStar XIV. During 2007, we entered into a contract for the construction of EchoStar XIV, a DBS
satellite, which was shipped from the manufacturer to the launch site and is scheduled for launch in early
2010.
x EchoStar XV. During 2008, we entered into a contract for the construction of EchoStar XV, a DBS
satellite, which is expected to be completed in mid-2010.