Dish Network 2010 Annual Report Download - page 107

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-22
6. Inventory
Inventory consists of the following:
2010 2009
Finished goods - DBS ...................... $ 305,068 $ 199,189
Raw materials .................................. 143,111 60,837
Work-in-process - used..................... 36,186 34,204
Work-in-process - new...................... 3,210 1,720
Total inventory................................. 487,575$ 295,950$
As of December 31,
(In thousands)
As of December 31, 2010, our inventory balance was $488 million, an increase of $192 million. The increase
was due to fewer gross subscriber additions than anticipated in 2010. In addition, the inventory balance at
December 31, 2009 was lower than normal due to more gross subscriber additions and less churn than
forecasted during the second half of 2009.
7. Property and Equipment
Property and equipment consists of the following:
Depreciable
Life
(In Years) 2010 2009
Equipment leased to customers................................................. 2-5 3,495,360$ 3,295,298$
EchoStar I ................................................................................ 12 201,607 201,607
EchoStar VII ............................................................................ 12 177,000 177,000
EchoStar X................................................................................ 12 177,192 177,192
EchoStar XI.............................................................................. 12 200,198 200,198
EchoStar XIV........................................................................... 15 316,518 -
EchoStar XV............................................................................. 15 277,533 -
Satellites acquired under capital lease agreements................... 10-15 499,819 499,819
Furniture, fixtures, equipment and other .................................. 1-10 480,379 454,435
Buildings and improvements ................................................... 1-40 70,471 66,612
Land ......................................................................................... - 3,948 3,948
Construction in progress .......................................................... - 16,844 453,245
Total property and equipment ............................................. 5,916,869 5,529,354
Accumulated depreciation ....................................................... (2,684,521) (2,487,092)
Property and equipment, net ............................................... 3,232,348$ 3,042,262$
As of December 31,
(In thousands)
Construction in progress consists of the following:
2010 2009
Progress amounts for satellite construction, including certain amounts
prepaid under satellite service agreements and launch costs........................ $ - $ 439,459
Software related projects.................................................................................. 3,469 7,540
Other ............................................................................................................... 13,375 6,246
Construction in progress.............................................................................. 16,844$ 453,245$
As of December 31,
(In thousands)