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, 2014
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, 2014 consisted of the following:
(in millions)
Capital transponders

Operating leases

Remainder of 2014
$
3

5

2015
11

15

2016
10

13

2017
10

11

2018
11

12

Thereafter
26

113

Total
$
71

169


The Company has entered into ten separate agreements with transponder suppliers to transmit its signals in the U.S., Germany and the U.K. at an aggregate monthly cost of $1 million. Depreciation expense related to the transponders was $3 million for both the three months ended September 30, 2014 and 2013, respectively. Depreciation expense related to the transponders was $9 million for both the nine months ended September 30, 2014 and 2013, respectively. Total future minimum capital lease payments of $71 million include $5 million of imputed interest. The transponder service agreements for our U.S. transponders expire between 2019 and 2020. The transponder service agreements for our international transponders expire between December 2014 and 2022.
Expenses for operating leases, principally for data processing equipment and facilities and for satellite uplink service agreements, amounted to $6 million and $7 million for the three months ended September 30, 2014 and 2013, respectively. For the nine months ended September 30, 2014 and 2013, expenses for operating leases were $20 million and $21 million, respectively.