Dish Network 2012 Annual Report Download - page 67

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
7. Inventory
Inventory consists of the following:
2012 2011
DISH:
Finished goods - DBS.......................... $ 259,307 $ 295,058
Raw materials....................................... 122,769 183,711
Work-in-process................................... 82,361 31,536
Total DISH inventory.......................... 464,437 510,305
Blockbuster:
Rental library....................................... 81,956 104,238
Merchandise......................................... 76,180 92,608
Total Blockbuster inventory............... 158,136 196,846
Wireless Spectrum:
Finished goods .................................... 1,147 -
Total Wireless Spectrum inventory...... 1,147 -
623,720$ 707,151$
As of December 31,
(In thousands)
Total inventory...........................................
8. Property and Equipment and Intangible Assets
Property and Equipment
Property and equipment consists of the following:
Depreciable
Life
(In Years) 2012 2011
Equipment leased to customers................................................. 2-5 3,467,037$ 3,496,154$
EchoStar I................................................................................. 12 201,607 201,607
EchoStar VII............................................................................. 15 177,000 177,000
EchoStar X................................................................................ 15 177,192 177,192
EchoStar XI.............................................................................. 15 200,198 200,198
EchoStar XIV........................................................................... 15 316,541 316,541
EchoStar XV............................................................................. 15 277,658 277,658
D1............................................................................................. 15 358,141 -
T1.............................................................................................. 15 401,721 -
Satellites acquired under capital lease agreements................... 10-15 499,819 499,819
Furniture, fixtures, equipment and other................................... 1-10 732,687 522,330
Buildings and improvements.................................................... 1-40 102,442 99,346
Land.......................................................................................... - 16,671 15,893
Construction in progress........................................................... - 517,255 48,779
Total property and equipment.............................................. 7,445,969 6,032,517
Accumulated depreciation........................................................ (3,043,609) (2,862,626)
Property and equipment, net................................................ 4,402,360$ 3,169,891$
As of December 31,
(In thousands)
F-24
DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
Construction in progress consists of the following:
2012 2011
Satellites........................................................................................................... $ 306,697 $ -
DBSD and TerreStar ground equipment.......................................................... 184,663 -
Software related projects.................................................................................. 7,049 21,519
Other................................................................................................................ 18,846 27,260
Construction in progress.............................................................................. 517,255$ 48,779$
As of December 31,
(In thousands)
Depreciation and amortization expense consists of the following:
2012 2011 2010
Equipment leased to customers............................................ $ 652,327 $ 725,904 $ 822,442
Satellites............................................................................... 145,749 128,352 110,510
Buildings, furniture, fixtures, equipment and other.............. 117,197 67,817 51,013
148 degree orbital location (1)............................................. 67,776 - -
Total depreciation and amortization................................ 983,049$ 922,073$ 983,965$
For the Years Ended December 31,
(In thousands)
(1) See “FCC Authorizations” below.
Cost of sales and operating expense categories included in our accompanying Consolidated Statements of Operations
and Comprehensive Income (Loss) do not include depreciation expense related to satellites or equipment leased to
customers.
F-25