XML 130 R112.htm IDEA: XBRL DOCUMENT

Property and Equipment (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2020

Dec. 31, 2019


	Depreciable		As of
	Life	June 30,		December 31,
	(In Years)	2020		2019

		(In thousands)
Equipment leased to customers	2-5	$	1,779,445	$	1,837,503
EchoStar XV	15		277,658		277,658
EchoStar XVIII	15		411,255		411,255
Satellites acquired under finance lease agreements	15		398,107		398,107
Furniture, fixtures, equipment and other	2-20		1,934,783		1,894,629
Buildings and improvements	5-40		294,342		289,421
Land	-		13,186		13,186
Construction in progress	-		62,862		70,081
Total property and equipment			5,171,638		5,191,840
Accumulated depreciation			(3,509,710)		(3,440,267)
Property and equipment, net		$	1,661,928	$	1,751,573


	Depreciable		As of
	Life	December 31,		December 31,
	(In Years)	2019		2018

		(In thousands)
Equipment leased to customers	2-5	$	1,837,503	$	1,980,808
EchoStar XV	15		277,658		277,658
EchoStar XVIII (1)	15		411,255		—
Satellites acquired under finance lease agreements (2)(3)	15		398,107		499,819
Furniture, fixtures, equipment and other	2-20		1,894,629		1,820,883
Buildings and improvements	5-40		289,421		289,244
Land	-		13,186		13,186
Construction in progress	-		70,081		47,077
Total property and equipment			5,191,840		4,928,675
Accumulated depreciation			(3,440,267)		(3,550,726)
Property and equipment, net		$	1,751,573	$	1,377,949

(1)

On May 14, 2019, we and DISH Orbital II L.L.C (“DOLLC II”), an indirect wholly-owned subsidiary of DISH Network, entered into an agreement to sell our interests in the Local Multipoint Distribution Service (“LMDS”) and MVDDS licenses in exchange for the EchoStar XVIII satellite, including its related in-orbit incentive obligations of approximately $18 million (the “Satellite and Spectrum Transaction”). See Note 17 for further information.

(2)

The Ciel II satellite was previously classified as a finance lease, with a cost basis of $277 million, however, as a result of an amendment, which was effective during the first quarter 2019, Ciel II is now accounted for as an operating lease.

(3)

The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease, with a cost basis of $175 million.

Schedule of depreciation and amortization expense


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019

	(In thousands)
Equipment leased to customers	$	69,489	$	86,453	$	149,171	$	194,589
Satellites		23,796		12,920		47,593		23,575
Buildings, furniture, fixtures, equipment and other		29,584		36,227		61,190		72,551
Total depreciation and amortization	$	122,869	$	135,600	$	257,954	$	290,715


	For the Years Ended December 31,
	2019		2018		2017

	(In thousands)
Equipment leased to customers	$	370,867	$	437,342	$	539,434
Satellites		65,441		61,045		61,045
Buildings, furniture, fixtures, equipment and other		141,040		162,073		141,293
Total depreciation and amortization	$	577,348	$	660,460	$	741,772

Schedule of pay-TV satellite fleet


		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A

Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month

Leased from DISH Network (2):
EchoStar X	February 2006	110	February 2021
EchoStar XI	July 2008	110	September 2021
EchoStar XIV	March 2010	119	February 2023
EchoStar XVI	November 2012	61.5	January 2023
Nimiq 5 (3)	September 2009	72.7	September 2020
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 2021

(1)

See Note 13 for further information on our Related Party Transactions with EchoStar.

(2)

See Note 13 for further information on our Related Party Transactions with DISH Network.

(3)

The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease.


		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A

Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month

Leased from DISH Network (2):
EchoStar X (3)	February 2006	110	February 2021
EchoStar XI (3)	July 2008	110	September 2021
EchoStar XIV (3)	March 2010	119	February 2023
EchoStar XVI (3)	November 2012	61.5	January 2023
Nimiq 5 (3)(4)	September 2009	72.7	September 2020
QuetzSat-1 (3)	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II	December 2008	129	January 2021

(1)	See Note 17 for further information on our Related Party Transactions with EchoStar.

(2)	See Note 17 for further information on our Related Party Transactions with DISH Network.

(3)

On May 19, 2019, DISH Network entered into the Master Transaction Agreement with EchoStar. Upon the closing of the Master Transaction Agreement on September 10, 2019, these satellites and satellite service agreements leased from EchoStar were transferred to DISH Network. See Note 1 “Recent Developments” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement.

(4)

The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease.