DISH Network CORP - 10-Q filing on 2016-07-21

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2016


	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.