Property and Equipment

3 Months Ended

Mar. 31, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment and Intangible Assets

7.Property and Equipment

Property and equipment consisted of the following:

	Depreciable			As of
	Life			March 31,		December 31,
	(In Years)			2022		2021
				(In thousands)
Equipment leased to customers	2	-	5	$	1,470,592	$	1,530,943
Satellites	4	-	15		1,734,024		1,734,024
Satellites acquired under finance lease agreements		15			567,870		567,870
Furniture, fixtures, equipment and other	2	-	20		2,463,369		2,350,839
Buildings and improvements	5	-	40		378,474		376,952
Land		-			17,513		17,513
Construction in progress		-			1,914,929		1,309,757
Total property and equipment					8,546,771		7,887,898
Accumulated depreciation					(4,680,717)		(4,630,111)
Property and equipment, net				$	3,866,054	$	3,257,787

Construction in progress consisted of the following:

	As of
	March 31,		December 31,
	2022		2021
	(In thousands)
Pay-TV	$	34,083	$	39,269
Wireless		1,880,846		1,270,488
Total construction in progress	$	1,914,929	$	1,309,757

Depreciation and amortization expense consisted of the following:

	For the Three Months Ended
	March 31,
	2022		2021
	(In thousands)
Equipment leased to customers	$	51,273	$	64,262
Satellites		39,806		50,193
Buildings, furniture, fixtures, equipment and other		48,115		31,166
Intangible assets		37,147		44,764
Total depreciation and amortization	$	176,341	$	190,385

Cost of sales and operating expense categories included in our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation expense related to satellites or equipment leased to customers.

Satellites

Pay-TV Satellites. We currently utilize 11 satellites in geostationary orbit approximately 22,300 miles above the equator, seven of which we own and depreciate over their estimated useful life. We currently utilize certain capacity on one satellite that we lease from EchoStar, which is accounted for as an operating lease. We also lease three satellites from third parties: Ciel II, which is accounted for as an operating lease, and Anik F3 and Nimiq 5, which are accounted for as financing leases and are each depreciated over their economic life. As of March 31, 2022, the Anik F3 satellite was accounted for as a finance lease and was fully depreciated. However, during April 2022, we extended this lease and as a result, Anik F3 will subsequently be accounted for as an operating lease.

As of March 31, 2022, our pay-TV satellite fleet consisted of the following:

		Degree	Lease
	Launch	Orbital	Termination
Satellites	Date	Location	Date
Owned:
EchoStar X	February 2006	110	N/A
EchoStar XI	July 2008	110	N/A
EchoStar XIV	March 2010	119	N/A
EchoStar XV	July 2010	61.5	N/A
EchoStar XVI	November 2012	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A
EchoStar XXIII	March 2017	67.9	N/A
Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month
Leased from Other Third Party:
Anik F3 (2)	April 2007	118.7	April 2025
Ciel II	December 2008	129	July 2023
Nimiq 5	September 2009	72.7	September 2024

(1) See Note 13 for further information on our Related Party Transactions with EchoStar.

(2) During April 2022, we extended the Anik F3 satellite lease for an additional two years with an option to renew for one additional year to April 2025.