Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2014

	Depreciable
	Life	As of December 31,
	(In Years)	2014			2013
		(In thousands)
Equipment leased to customers	2-5	$	3,524,211		$	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	656,273			600,439
Buildings and improvements	1-40	84,129			80,439
Land	-	5,504			5,504
Construction in progress	-	18,355			39,043
Total property and equipment		5,065,949			6,072,434
Accumulated depreciation (1)		(2,628,945		)	(3,093,111		)
Property and equipment, net		$	2,437,004		$	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 15 for further discussion.

Schedule of construction in progress

	As of December 31,
	2014		2013
	(In thousands)
Computer hardware projects	$	1,399	$	20,216
Software projects	16,353		15,017
Other	603		3,810
Construction in progress	$	18,355	$	39,043

Schedule of depreciation and amortization expense

	For the Years Ended December 31,
	2014		2013		2012
	(In thousands)
Equipment leased to customers	$	810,945	$	739,266	$	649,394
Satellites (1)	68,984		108,682		123,431
Buildings, furniture, fixtures, equipment and other	76,172		58,039		58,081
148 degree orbital location (2)	—		—		67,776
Total depreciation and amortization	$	956,101	$	905,987	$	898,682

(1)

Depreciation and amortization expense decreased $40 million in 2014 as a result of the Satellite and Tracking Stock Transaction. See Note 4 and Note 15 for further discussion.

(2)

On May 31, 2012, the International Bureau of the FCC announced the termination of our license for use of the 148 degree orbital location. We had not had a satellite positioned at the 148 degree orbital location since the retirement of EchoStar V in August 2009. Our license for use of the 148 degree orbital location had a $68 million carrying value. This amount was recorded as “Depreciation and amortization” expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) in 2012 due to the termination of this license by the FCC.

Schedule of DBS Satellites

			Estimated
			Useful Life
			(Years)/
		Degree	Lease
	Launch	Orbital	Termination
Satellites	Date	Location	Date
Owned:
EchoStar XV (1)	July 2010	45	15

Under Construction:
EchoStar XVIII (2)	2015	110	15

Leased from EchoStar (1):
EchoStar I (3)(4)	December 1995	77	November 2015
EchoStar VII (3)(4)	February 2002	119	June 2016
EchoStar VIII	August 2002	77	Month to month
EchoStar IX	August 2003	121	Month to month
EchoStar X (3)(4)	February 2006	110	February 2021
EchoStar XI (3)(4)	July 2008	110	September 2021
EchoStar XII (3)	July 2003	61.5	September 2017
EchoStar XIV (3)(4)	March 2010	119	February 2023
EchoStar XVI (5)	November 2012	61.5	January 2017
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)

See Note 15 for further discussion of our Related Party Transactions with EchoStar.

(2)

EchoStar XVIII is expected to launch during the fourth quarter 2015.

(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 all available capacity on these satellites. See Note 4 and Note 15 for further discussion.

(5)

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

Schedule of FCC Authorizations

	As of December 31,
	2014		2013
	(In thousands)
DBS Licenses	$	611,794	$	611,794
MVDDS Licenses (1)	24,000		24,000
Total	$	635,794	$	635,794

(1)

We have multichannel video distribution and data service (“MVDDS”) licenses in 82 out of 214 geographical license areas, including Los Angeles, New York City, Chicago and several other major metropolitan areas. By August 2014, we were required to meet certain FCC build-out requirements related to our MVDDS licenses, and we are subject to certain FCC service rules applicable to these licenses. In January 2015, the FCC granted our application to extend the build-out requirements related to our MVDDS licenses. We now have until 2019 to provide “substantial service” on our MVDDS licenses, and the licenses expire in 2024. Our MVDDS licenses may be terminated, however, if we do not provide substantial service in accordance with the new build-out requirements.