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Property and Equipment and FCC Authorizations (Tables)
9 Months Ended
Sep. 30, 2014
Property and Equipment and FCC Authorizations  
Schedule of property and equipment

 

 

 

 

Depreciable

 

As of

 

 

 

Life

 

September 30,

 

December 31,

 

 

 

(In Years)

 

2014

 

2013

 

 

 

 

 

(In thousands)

 

Equipment leased to customers

 

2-5

 

$

3,526,090

 

$

3,496,994

 

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

 

Satellites acquired under capital lease agreements

 

10-15

 

499,819

 

499,819

 

Furniture, fixtures, equipment and other

 

1-10

 

661,321

 

600,439

 

Buildings and improvements

 

1-40

 

83,258

 

80,439

 

Land

 

 

5,504

 

5,504

 

Construction in progress

 

 

19,006

 

39,043

 

Total property and equipment

 

 

 

5,072,656

 

6,072,434

 

Accumulated depreciation (1)

 

 

 

(2,591,343

)

(3,093,111

)

Property and equipment, net

 

 

 

$

2,481,313

 

$

2,979,323

 

 

 

(1)     Property and equipment and accumulated depreciation decreased $1.073 billion and $633 million, respectively, as a result of the Satellite and Tracking Stock Transaction.  See Note 4 and Note 10 for further discussion

Schedule of depreciation and amortization expense

 

 

 

 

For the Three Months

 

For the Nine Months

 

 

 

Ended September 30,

 

Ended September 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

 

 

(In thousands)

 

Equipment leased to customers

 

$

208,208

 

$

188,524

 

$

607,584

 

$

538,457

 

Satellites

 

15,261

 

27,171

 

53,723

 

81,512

 

Buildings, furniture, fixtures, equipment and other

 

22,671

 

14,054

 

58,181

 

43,441

 

Total depreciation and amortization

 

$

246,140

 

$

229,749

 

$

719,488

 

$

663,410

 

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 (1):

 

 

 

 

 

 

 

EchoStar I (2)(3)

 

December 1995

 

77

 

NA

 

EchoStar VII (2)(3)

 

February 2002

 

119

 

NA

 

EchoStar VIII

 

August 2002

 

77

 

NA

 

EchoStar IX

 

August 2003

 

121

 

NA

 

EchoStar X (2)(3)

 

February 2006

 

110

 

NA

 

EchoStar XI (2)(3)

 

July 2008

 

110

 

NA

 

EchoStar XII (2)

 

July 2003

 

61.5

 

NA

 

EchoStar XIV (2)(3)

 

March 2010

 

119

 

NA

 

EchoStar XVI

 

November 2012

 

61.5

 

NA

 

Nimiq 5

 

September 2009

 

72.7

 

NA

 

QuetzSat-1

 

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

(2)     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.

(3)     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 4 for further discussion.