Dish Network 2008 Annual Report Download - page 105

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-23
6. Inventories
Inventories consist of the following:
2008 2007
Finished goods - DBS ..................................................... $ 238,343 $ 170,463
Raw materials .................................................................. 146,353 70,103
Work-in-process - used.................................................... 61,663 67,542
Work-in-process - new..................................................... 2,414 13,546
Subtotal............................................................................ 448,773 321,654
Inventory allowance.........................................................
(
22,102
)
(
14,739
)
Inventories, net................................................................. 426,671$ 306,915$
As of December 31,
(In thousands)
7. Property and Equipment
Property and equipment consist of the following:
Depreciable
Life
(In Years) 2008 2007
Equipment leased to customers................................................. 2-5 3,021,149$ 2,773,085$
EchoStar I ................................................................................ 12 201,607 201,607
EchoStar II (1).......................................................................... N/A - 228,694
EchoStar III (2)......................................................................... 12 - 234,083
EchoStar IV - fully depreciated (2)........................................... N/A - 78,511
EchoStar V ............................................................................... 9 203,511 203,511
EchoStar VI (2)......................................................................... 12 - 244,305
EchoStar VII ............................................................................ 12 177,000 177,000
EchoStar VIII (2)...................................................................... 12 - 175,801
EchoStar IX (2)......................................................................... 12 - 127,376
EchoStar X................................................................................ 12 177,192 177,192
EchoStar XI............................................................................... 12 200,198 -
EchoStar XII (2)........................................................................ 10 - 190,051
Satellites acquired under capital lease agreements (3).............. 10-15 223,423 775,050
Furniture, fixtures, equipment and other .................................. 1-10 419,758 997,521
Buildings and improvements .................................................... 1-40 64,872 260,153
Land ......................................................................................... - 3,760 33,182
Construction in progress .......................................................... - 403,778 772,661
Total property and equipment ............................................. $ 5,096,248 $ 7,649,783
Accumulated depreciation ........................................................ (2,432,959) (3,591,594)
Property and equipment, net ............................................... 2,663,289$ 4,058,189$
As of December 31,
(In thousands)
(1) EchoStar II experienced a failure that rendered the satellite a total loss and was written-off during
the second quarter 2008 (see further discussion below).
(2) These satellites were transferred to EchoStar in connection with the Spin-off.
(3) The capital lease agreements for AMC-15 and AMC-16 were contributed to EchoStar in
connection with the Spin-off.