Quarterly report pursuant to Section 13 or 15(d)

Leases and Transponder Service Agreements

v2.4.0.8
Leases and Transponder Service Agreements
 9 Months Ended
Sep. 30, 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 September 30, 2013 consisted of the following:
(in millions)
Capital transponders

Operating leases

Remainder of 2013
$
4

10

2014
12

17

2015
11

15

2016
11

12

2017
11

9

Thereafter
40

107

Total
$
89

170


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 $3 million and $2 million for the three months ended September 30, 2013 and 2012, respectively. For the nine months ended September 30, 2013 and 2012, depreciation expense related to the transponders was $9 million and $9 million, respectively. Total future minimum capital lease payments of $89 million include $9 million of imputed interest. Our transponder service agreement for our U.S. transponders expires at the earlier of the end of the lives of the satellites or the service agreement, which are currently estimated to be either 2019 or 2020, respectively. 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 $7 million and $7 million for the three months ended September 30, 2013 and 2012, respectively. For the nine months ended September 30, 2013 and 2012, expenses for operating leases were $21 million and $24 million, respectively.