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Property and Equipment (Tables)
6 Months Ended
Jun. 30, 2016
Property and Equipment  
Schedule of property and equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciable

 

As of

 

 

 

Life

 

June 30,

 

December 31,

 

 

    

(In Years)

    

2016

    

2015

 

 

 

 

 

 

 

(In thousands)

 

Equipment leased to customers

 

 2

-

5

 

$

3,348,370

 

$

3,549,701

 

EchoStar XV

 

 

 

15

 

 

277,658

 

 

277,658

 

D1

 

 

N/A

 

 

 

55,000

 

 

55,000

 

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

 

 

801,657

 

 

775,834

 

Buildings and improvements

 

 1

-

40

 

 

89,625

 

 

86,928

 

Land

 

 

 

 —

 

 

5,504

 

 

5,504

 

Construction in progress

 

 

 

 —

 

 

438,789

 

 

382,464

 

Total property and equipment

 

 

 

 

 

 

5,918,143

 

 

6,034,629

 

Accumulated depreciation

 

 

 

 

 

 

(3,167,339)

 

 

(3,110,449)

 

Property and equipment, net

 

 

 

 

 

$

2,750,804

 

$

2,924,180

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Construction in progress

 

 

 

 

 

 

 

 

 

 

As of

 

 

 

June 30,

 

December 31,

 

 

    

2016

    

2015

 

 

 

(In thousands)

 

EchoStar XVIII, including capitalized interest (1)

 

$

382,272

 

$

346,417

 

Other

 

 

56,517

 

 

36,047

 

Total construction in progress

 

$

438,789

 

$

382,464

 

 

 

 

 

 

 

 

 

 

Schedule of depreciation and amortization expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

For the Six Months

 

 

Ended June 30,

 

Ended June 30,

 

 

2016

    

2015

 

2016

    

2015

 

 

(In thousands)

 

Equipment leased to customers

$

205,775

 

$

217,235

 

$

395,597

 

$

419,419

 

Satellites

 

21,957

 

 

21,957

 

 

43,913

 

 

43,913

 

Buildings, furniture, fixtures, equipment and other

 

21,887

 

 

23,694

 

 

43,736

 

 

45,766

 

Total depreciation and amortization

$

249,619

 

$

262,886

 

$

483,246

 

$

509,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of pay-TV satellite fleet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated

 

 

 

 

 

 

 

 Useful Life

 

 

 

 

 

Degree

 

(Years)/Lease

 

 

 

Launch

 

Orbital

 

Termination 

 

Satellites

    

Date

    

Location

    

Date

 

Owned:

 

 

 

 

 

 

 

EchoStar XV

 

July 2010

 

61.5

 

15

 

EchoStar XVIII (1)

 

June 2016

 

61.5

 

15

 

 

 

 

 

 

 

 

 

Leased from EchoStar (2):

 

 

 

 

 

 

 

EchoStar VII (3)

 

February 2002

 

119

 

June 2017

 

EchoStar IX

 

August 2003

 

121

 

Month to month

 

EchoStar X (3)

 

February 2006

 

110

 

February 2021

 

EchoStar XI (3)

 

July 2008

 

110

 

September 2021

 

EchoStar XII (3)

 

 July 2003

 

61.5

 

September 2017

 

EchoStar XIV (3)

 

March 2010

 

119

 

February 2023

 

EchoStar XVI (4)

 

November 2012

 

61.5

 

January 2018

 

Nimiq 5

 

September 2009

 

72.7

 

September 2019

 

QuetzSat-1

 

September 2011

 

77

 

November 2021

 

 

 

 

 

 

 

 

 

Leased from Other Third Party:

 

 

 

 

 

 

 

Anik F3

 

April 2007

 

118.7

 

April 2022

 

Ciel II

 

December 2008

 

129

 

January 2019

 

 

 

 

 

 

 

 

 

(1)

Our EchoStar XVIII satellite was launched on June 18, 2016 and is expected to become operational at the 61.5 degree orbital location during the third quarter 2016, at which time it will be reclassified from Construction in progress to Satellites within “Property and equipment, net” on our Condensed Consolidated Balance Sheets.

(2)

See Note 12 for further information on our Related Party Transactions with EchoStar.

(3)

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

(4)

We have the option to renew this lease for an additional five-year period.  If we exercise our five-year renewal option, we have the option to renew this lease for an additional five years.