Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Property and Equipment

Schedule of property and equipment

	Depreciable
	Life	As of December 31,
	(In Years)	2012			2011
		(In thousands)
Equipment leased to customers	2-5	$	3,424,911		$	3,496,154
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
Satellites acquired under capital lease agreements	10-15	499,819			499,819
Furniture, fixtures, equipment and other	1-10	580,588			506,736
Buildings and improvements	1-40	74,398			70,716
Land	—	5,207			4,447
Construction in progress	—	20,469			42,038
Total property and equipment		5,955,588			5,970,106
Accumulated depreciation		(2,948,204		)	(2,847,863		)
Property and equipment, net		$	3,007,384		$	3,122,243

Schedule of Construction in progress

	As of December 31,
	2012		2011
	(In thousands)
Software related projects	$	6,088	$	20,149
Other	14,381		21,889
Construction in progress	$	20,469	$	42,038

Schedule of depreciation and amortization expense

	For the Years Ended December 31,
	2012		2011		2010
	(In thousands)
Equipment leased to customers	$	649,394	$	725,904	$	822,442
Satellites	123,431		128,352		110,510
Buildings, furniture, fixtures, equipment and other	58,081		50,699		50,408
148 degree orbital location (1)	67,776		—		—
Total depreciation and amortization	$	898,682	$	904,955	$	983,360

(1) See “FCC Authorizations” below.

Schedule of Satellites

		Degree	Estimated
	Launch	Orbital	Useful Life
Satellites	Date	Location	(Years)
Owned:
EchoStar I (1)	December 1995	77	12
EchoStar VII (2)	February 2002	119	15
EchoStar X (2)	February 2006	110	15
EchoStar XI (2)	July 2008	110	15
EchoStar XIV	March 2010	119	15
EchoStar XV	July 2010	61.5	15
Leased from EchoStar:
EchoStar VI (1)(4)	July 2000	77	NA
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 15 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 owned and leased 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.