Qurate Retail, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases and Transponder Service Agreements

Leases and Transponder Service Agreements

6 Months Ended

Jun. 30, 2015

Leases and Transponder Service Agreements [Abstract]

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 June 30, 2015 consisted of the following:



(in millions)	Capital transponders		Operating leases
Remainder of 2015	$	5	11
2016	11		19
2017	12		17
2018	13		15
2019	12		13
Thereafter	27		96
Total	$	80	171

The Company has entered into eleven separate capital lease agreements with transponder suppliers to transmit its signals in the U.S., Germany and France at an aggregate monthly cost of $1 million. Depreciation expense related to the transponders was $4 million and $3 million for the three months ended June 30, 2015 and 2014, respectively. For the six months ended June 30, 2015 and 2014, depreciation expense related to the transponders was $7 million and $6 million, respectively. Total future minimum capital lease payments of $80 million include $6 million of imputed interest. The transponder service agreements for our U.S. transponders expire between 2019 and 2023. The transponder service agreements for our international transponders expire between 2019 and 2024.

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 June 30, 2015 and 2014, respectively. For the six months ended June 30, 2015 and 2014, expenses for operating leases were $12 million and $14 million, respectively.