Quarterly report pursuant to Section 13 or 15(d)

Leases and Transponder Service Agreements

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Leases and Transponder Service Agreements
 3 Months Ended
Mar. 31, 2013
Leases and Transponder Service Agreements [Abstract]  
Leases of Lessee Disclosure
Leases and Transponder Service Arrangements
Future minimum payments under noncancelable operating leases and capital transponder leases with initial terms of one year or more at March 31, 2013 consisted of the following:
(in millions)
Capital transponders

Operating leases

Remainder of 2013
$
11

16

2014
11

15

2015
11

12

2016
10

8

2017
10

7

Thereafter
38

96

Total
$
91

154


The Company has entered into ten separate agreements with transponder suppliers to transmit its signals in the U.S., Germany and the U.K. via various satellites at an aggregate monthly cost of $1 million. Depreciation expense related to the transponders was $4 million and $4 million for the three months ended March 31, 2013 and 2012, respectively. Total future minimum capital lease payments of $91 million include $9 million of imputed interest. Our transponder service agreement for our U.S. transponders expires at the end of the lives of the satellites, which are currently estimated to be 2020. Our transponder service agreements for our international transponders expire between 2013 and 2022.
Expenses for operating leases, principally for data processing equipment and facilities and for satellite uplink service agreements, amounted to $8 million and $7 million for the three months ended March 31, 2013 and 2012, respectively.