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Property and Equipment (Tables)
3 Months Ended
Mar. 31, 2014
Property and Equipment  
Schedule of property and equipment

 

 

 

 

Depreciable

 

As of

 

 

 

Life

 

March 31,

 

December 31,

 

 

 

(In Years)

 

2014

 

2013

 

 

 

 

 

(In thousands)

 

Equipment leased to customers

 

2-5

 

$

3,634,781

 

$

3,596,310

 

EchoStar I (1)

 

12

 

 

201,607

 

EchoStar VII (1)

 

15

 

 

177,000

 

EchoStar X (1)

 

15

 

 

177,192

 

EchoStar XI (1)

 

15

 

 

200,198

 

EchoStar XIV (1)

 

15

 

 

316,541

 

EchoStar XV

 

15

 

277,658

 

277,658

 

D1

 

15

 

150,000

 

150,000

 

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

 

726,380

 

720,570

 

Buildings and improvements

 

1-40

 

84,125

 

83,531

 

Land

 

 

5,504

 

5,692

 

Construction in progress

 

 

580,357

 

515,447

 

Total property and equipment

 

 

 

6,360,345

 

7,323,286

 

Accumulated depreciation (1)

 

 

 

(2,656,499

)

(3,225,575

)

Property and equipment, net

 

 

 

$

3,703,846

 

$

4,097,711

 

 

(1)         The decrease in property and equipment and accumulated depreciation resulted from the Satellite and Tracking Stock Transaction.  See Note 1 and Note 12 for further discussion.

Schedule of Construction in progress

 

 

 

 

As of

 

 

 

March 31,

 

December 31,

 

 

 

2014

 

2013

 

 

 

(In thousands)

 

Pay-TV Satellites

 

$

165,369

 

$

143,839

 

T2

 

40,000

 

40,000

 

Wireless ground equipment, including capitalized interest

 

328,609

 

290,642

 

Software related projects

 

16,690

 

15,049

 

Other

 

29,689

 

25,917

 

Construction in progress

 

$

580,357

 

$

515,447

 

Schedule of depreciation and amortization expense

 

 

 

 

For the Three Months

 

 

 

Ended March 31,

 

 

 

2014

 

2013

 

 

 

(In thousands)

 

Equipment leased to customers

 

$

195,214

 

$

167,212

 

Satellites

 

29,896

 

33,866

 

Buildings, furniture, fixtures, equipment and other

 

24,110

 

29,092

 

Total depreciation and amortization

 

$

249,220

 

$

230,170

 

Schedule of pay-TV satellite fleet

 

 

 

 

 

 

Degree

 

Estimated

 

 

 

Launch

 

Orbital

 

Useful Life

 

Satellites

 

Date

 

Location

 

(Years)

 

Owned:

 

 

 

 

 

 

 

EchoStar XV (1)

 

July 2010

 

45

 

15

 

 

 

 

 

 

 

 

 

Leased from EchoStar:

 

 

 

 

 

 

 

EchoStar I (1)(2)(3)(4)

 

December 1995

 

77

 

NA

 

EchoStar VII (1)(2)(3)(4)

 

February 2002

 

119

 

NA

 

EchoStar VIII (1)(2)

 

August 2002

 

77

 

NA

 

EchoStar IX (1)(2)

 

August 2003

 

121

 

NA

 

EchoStar X (1)(2)(3)(4)

 

February 2006

 

110

 

NA

 

EchoStar XI (1)(2)(3)(4)

 

July 2008

 

110

 

NA

 

EchoStar XII (1)(2)(3)

 

July 2003

 

61.5

 

NA

 

EchoStar XIV (1)(2)(3)(4)

 

March 2010

 

119

 

NA

 

EchoStar XVI (1)

 

November 2012

 

61.5

 

NA

 

Nimiq 5 (1)(2)

 

September 2009

 

72.7

 

NA

 

QuetzSat-1 (1)(2)

 

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 12 for further discussion of our Related Party Transactions with EchoStar.

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

(3)         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.

(4)         On February 20, 2014, we entered into the Satellite and Tracking Stock Transaction with EchoStar pursuant to which, among other things, we transferred these satellites to EchoStar and lease back certain satellite capacity on these satellites.  See Note 1 for further discussion.