Property and Equipment and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Property and Equipment and Intangible Assets

	Depreciable
	Life	As of December 31,
	(In Years)	2013			2012
		(In thousands)
Equipment leased to customers	2-5	$	3,596,310		$	3,467,037
EchoStar I	12	201,607			201,607
EchoStar VII	15	177,000			177,000
EchoStar X	15	177,192			177,192
EchoStar XI	15	200,198			200,198
EchoStar XIV	15	316,541			316,541
EchoStar XV	15	277,658			277,658
D1	15	150,000			358,141
T1	15	401,721			401,721
Satellites acquired under capital lease agreements	10-15	499,819			499,819
Furniture, fixtures, equipment and other	1-10	720,570			714,734
Buildings and improvements	1-40	83,531			79,868
Land	—	5,692			5,395
Construction in progress	—	515,447			514,234
Total property and equipment		7,323,286			7,391,145
Accumulated depreciation		(3,225,575		)	(3,024,516		)
Property and equipment, net		$	4,097,711		$	4,366,629

Schedule of Construction in progress

	As of December 31,
	2013		2012
	(In thousands)
DBS Satellites	$	143,839	$	37,263
T2	40,000		269,434
Wireless ground equipment, including capitalized interest	284,902		184,663
Software related projects	15,049		6,332
Other	31,657		16,542
Construction in progress	$	515,447	$	514,234

Schedule of depreciation and amortization expense

	For the Years Ended December 31,
	2013		2012		2011
	(In thousands)
Equipment leased to customers	$	763,796	$	652,327	$	725,904
Satellites	135,464		145,749		128,352
Buildings, furniture, fixtures, equipment and other (1)	154,766		98,632		57,947
148 degree orbital location (2)	—		67,776		—
Total depreciation and amortization	$	1,054,026	$	964,484	$	912,203

(1) During the second quarter 2013, we ceased operations of our TerreStar Mobile Satellite Service (“MSS”) business, which had less than 2,000 customers and had less than $1 million in revenue. As a result, we accelerated the depreciable lives of certain assets designed to support this business and the remaining net book value of $53 million was fully depreciated in the second quarter 2013.

(2) See “FCC Authorizations” below.

Schedule of DBS Satellites

		Degree	Estimated
	Launch	Orbital	Useful Life
Satellites	Date	Location	(Years)
Owned:
EchoStar I (1)(5)	December 1995	77	12
EchoStar VII (2)(5)	February 2002	119	15
EchoStar X (2)(5)	February 2006	110	15
EchoStar XI (2)(5)	July 2008	110	15
EchoStar XIV (5)	March 2010	119	15
EchoStar XV	July 2010	45	15

Leased from EchoStar:
EchoStar VIII (1)(3)(4)	August 2002	77	NA
EchoStar IX (1)(3)	August 2003	121	NA
EchoStar XII (1)(4)	July 2003	61.5	NA
Nimiq 5 (1)(3)	September 2009	72.7	NA
EchoStar XVI (1)	November 2012	61.5	NA
QuetzSat-1 (1)(3)	September 2011	77	NA

Leased from Other Third Party:
Anik F3	April 2007	118.7	NA
Ciel II	December 2008	129	NA

Under Construction:
EchoStar XVIII	2015	110	15

(1) See Note 20 for further discussion of our Related Party Transactions with EchoStar.

(2) During the fourth quarter 2012, the estimated useful life of these satellites was extended from 12 years to 15 years on a prospective basis based on management’s assessment of, among other things, these satellites’ useful lives, technological obsolescence risk, estimated remaining fuel life and estimated useful lives of our other DBS satellites. This increase in the estimated useful life of these satellites had an immaterial effect on our results of operations.

(3) We lease a portion of the capacity on these satellites.

(4) We generally have the option to renew each lease on a year-to-year basis through the end of the respective satellite’s useful life.

(5) On February 20, 2014, we entered into agreements with EchoStar pursuant to which, among other things, we will transfer these satellites to EchoStar and lease back certain satellite capacity on these satellites. See Note 21 for further discussion of our Subsequent Events.

Schedule of AWS-4 Satellites

		Degree	Estimated
	Launch	Orbital	Useful Life
Satellites	Date	Location	(Years)
Owned:
T1	July 2009	111.1	15
D1	April 2008	92.85	15

Under Construction:
T2 (1)	—	—	—

(1) Launch date and operational requirements have not yet been determined.

Schedule of FCC authorizations

	As of December 31,
	2013		2012
	(In thousands)
DBS Licenses	$	611,794	$	611,794
MVDDS	24,000		24,000
700 MHz Licenses	711,871		711,871
AWS Licenses	1,949,000		1,949,000
Total	$	3,296,665	$	3,296,665

Schedule of identifiable intangibles subject to amortization

	As of
	December 31, 2013					December 31, 2012
	Intangible		Accumulated			Intangible		Accumulated
	Assets		Amortization			Assets		Amortization
	(In thousands)
Technology-based	$	34,078	$	(12,222	)	$	38,066	$	(8,178	)
Trademarks	20,424		(6,432		)	18,236		(3,907		)
Contract-based	8,650		(8,650		)	8,650		(8,650		)
Customer relationships	4,294		(4,294		)	4,294		(3,503		)
Total	$	67,446	$	(31,598	)	$	69,246	$	(24,238	)

Schedule of estimated future amortization of identifiable intangible assets

Estimated future amortization of our identifiable intangible assets as of December 31, 2013 is as follows (in thousands):

For the Years Ended December 31,
2014	$	9,202
2015	9,091
2016	8,469
2017	3,248
2018	1,362
Thereafter	4,476
Total	$	35,848