Dish Network 2015 Annual Report Download - page 132
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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-28
Construction in progress consisted of the following:
As of December 31,
2015 2014
(In thousands)
Capitalized interest on FCC authorizations (1) $ — $ 456,360
EchoStar XVIII, including capitalized interest 346,417 271,497
Other 36,047 46,710
Total construction in progress $ 382,464 $ 774,567
(1) During the fourth quarter 2015, we reclassified capitalized interest related to certain FCC authorizations on our
Consolidated Balance Sheets from construction in progress within “Property and equipment, net,” to “FCC
authorizations,” which is the qualifying asset on which interest is capitalized. See Note 2 for further
information.
Depreciation and amortization expense consisted of the following:
For the Years Ended December 31,
2015 2014 2013
(In thousands)
Equipment leased to customers $ 824,799 $ 854,759 $ 763,796
Satellites (1) 87,827 95,766 135,464
Buildings, furniture, fixtures, equipment and other (2) 87,422 127,411 154,766
Total depreciation and amortization $ 1,000,048 $ 1,077,936 $ 1,054,026
(1) Depreciation and amortization expense decreased $40 million in 2014 as a result of the Satellite and Tracking
Stock Transaction. See Note 6 and Note 19 for further information.
(2) During 2013, we ceased operations of our TerreStar Mobile Satellite Service (“MSS”) business, which had less
than 2,000 customers and had less than $1 million in revenue. As a result, we accelerated the depreciable lives
of certain assets designed to support this business and the remaining net book value of $53 million was fully
depreciated in 2013.
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.