Leases

12 Months Ended

Dec. 31, 2019

Leases

Leases

9.Leases

We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, wireless towers and other equipment. Our leases have remaining lease terms from one to eight years, some of which include renewal options, and some of which include options to terminate the leases within one year.

Our Anik F3, Nimiq 5 and QuetzSat-1 satellites are accounted for as financing leases. Substantially all of our remaining leases are accounted for as operating leases.

The components of lease expense were as follows:

	For the Year Ended
	December 31, 2019
	(In thousands)
Operating lease cost	$	223,825
Short-term lease cost (1)		12,077
Finance lease cost:
Amortization of right-of-use assets		35,004
Interest on lease liabilities		10,800
Total finance lease cost		45,804
Total lease costs	$	281,706

(1) Leases that have terms of 12 months or less.

Pursuant to the Master Transaction Agreement, effective September 10, 2019, approximately $495 million of previously reported operating lease assets and the related liabilities for satellites and real estate assets were transferred to us. See Note 1 for further information. These satellite and real estate assets are no longer included in “Operating lease assets,” “Other current liabilities” and “Operating lease liabilities,” but rather in “Property and equipment, net” on our Consolidated Balance Sheets. Lease expense related to these satellites and real estate assets for the year ended December 31, 2019 were $159 million.

Supplemental cash flow information related to leases was as follows:
​

	For the Year Ended
	December 31, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	227,451
Operating cash flows from finance leases	$	10,800
Financing cash flows from finance leases	$	34,358
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	118,381
Finance leases	$	187,339
Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842	$	733,584

Supplemental balance sheet information related to leases was as follows:

	As of December 31, 2019
	(In thousands)
Operating Leases:
Operating lease assets	$	144,330
Other current liabilities	$	57,910
Operating lease liabilities		84,795
Total operating lease liabilities	$	142,705
Finance Leases:
Property and equipment, gross	$	890,598
Accumulated depreciation		(683,271)
Property and equipment, net	$	207,327
Other current liabilities	$	61,493
Other long-term liabilities		171,706
Total finance lease liabilities	$	233,199
Weighted Average Remaining Lease Term:
Operating leases		3.1 years
Finance leases		3.8 years
Weighted Average Discount Rate:
Operating leases		5.0%
Finance leases		10.2%

Maturities of lease liabilities as of December 31, 2019 were as follows:

	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total
	(In thousands)
2020	$	62,331	$	80,834	$	143,165
2021		47,496		82,610		130,106
2022		23,746		48,307		72,053
2023		9,392		40,942		50,334
2024		5,682		30,707		36,389
Thereafter		2,826		—		2,826
Total lease payments		151,473		283,400		434,873
Less: Imputed interest		(8,768)		(50,201)		(58,969)
Total		142,705		233,199		375,904
Less: Current portion		(57,910)		(61,493)		(119,403)
Long-term portion of lease obligations	$	84,795	$	171,706	$	256,501