Property and Equipment and Intangible Assets

3 Months Ended

Mar. 31, 2025

Property and Equipment and Intangible Assets

Property and Equipment and Intangible Assets

6.Property and Equipment and Intangible Assets

Property and Equipment

Property and equipment consisted of the following:

	Depreciable			As of
	Life			March 31,		December 31,
	(In Years)			2025		2024
				(In thousands)
Equipment leased to customers	2	-	5	$	972,523	$	1,005,750
Satellites	6	-	15		1,718,865		1,718,865
Furniture, fixtures, equipment and other	2	-	12		802,216		801,650
5G Network equipment (1)	3	-	15		5,594,388		5,382,706
Software and computer equipment	2	-	8		1,886,236		1,816,749
Buildings and improvements	5	-	40		335,875		334,213
Land		-			12,041		12,041
Construction in progress		-			1,461,157		1,544,726
Total property and equipment					12,783,301		12,616,700
Accumulated depreciation					(5,703,143)		(5,387,611)
Property and equipment, net (2)				$	7,080,158	$	7,229,089

(1) Includes 5G Network assets acquired under finance lease agreements.

(2) As of March 31, 2025 and December 31, 2024, there were no refunds and other receipts of purchases of property and equipment.

Depreciation and amortization expense consisted of the following:

	For the Three Months Ended
	March 31,
	2025		2024
	(In thousands)
Equipment leased to customers	$	32,725	$	36,866
Satellites		26,936		32,955
Buildings, furniture, fixtures, equipment and other		11,393		5,108
5G Network equipment		208,132		166,822
Software and computer equipment		101,008		80,669
Intangible assets and other amortization expense		3,487		44,654
Total depreciation and amortization	$	383,681	$	367,074

Cost of sales and operating expense categories included in our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation and amortization expense related to satellites, equipment leased to customers, or our 5G Network equipment and software.

Activity relating to our asset retirement obligations, included in “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets, was as follows:

	For the Three Months Ended
	March 31,
	2025		2024
	(In thousands)
Balance, beginning of period	$	327,031	$	278,287
Liabilities incurred		3,697		4,308
Accretion expense		7,778		6,464
Balance, end of period	$	338,506	$	289,059

The corresponding assets, net of accumulated depreciation, related to asset retirement obligations were $214 million and $216 million as of March 31, 2025 and December 31, 2024, respectively.

Satellites

Pay-TV Segment. Our Pay-TV segment currently utilizes nine satellites in geosynchronous orbit approximately 22,300 miles above the equator, seven of which we own and depreciate over their estimated useful life. We also lease two satellites from third parties: Anik F3 and Nimiq 5, which are accounted for as operating leases.

As of March 31, 2025, our Pay-TV segment 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 (1)	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	110	N/A
Under Construction:
EchoStar XXV	2026	110	N/A
Leased from Other Third-Party:
Anik F3 (2)	April 2007	118.7	April 2025
Nimiq 5	September 2009	72.7	October 2029

(1) During April 2025, the EchoStar XV satellite began the process of relocating from the 61.5 degree orbital location to the 119 degree orbital location. The relocation process is expected to be completed by the third quarter of 2025.

(2) As of April 2025, we no longer lease this satellite.

Satellite Under Construction

EchoStar XXV. On March 20, 2023, we entered into a contract with Maxar Space LLC for the construction of EchoStar XXV, a DBS satellite that is capable of providing service to the continental United States (“CONUS”) and is intended to be used at the 110 degree orbital location. During the fourth quarter of 2023, we entered into an agreement with Space Exploration Technologies Corp (“SpaceX”) for launch services for this satellite, which is expected to be launched during 2026. The EchoStar XXV contract was included in the Sale and Transfer of Assets to EchoStar on January 10, 2024. Subsequently, on May 2, 2024, the EchoStar XXV contract was included in the Orbital II Transfer from EchoStar and is recorded in “Property and equipment, net” on our Condensed Consolidated Balance Sheets. For the three months ended March 31, 2024, capital expenditures for EchoStar XXV totaled $30 million for capital expenditures incurred between the Sale and Transfer of Assets to EchoStar on January 10, 2024 and March 31, 2024, which is included in “Other, net” within “Net cash flows from investing activities” on our Condensed Consolidated Statements of Cash Flows. See Note 12 for further information.