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Leases
3 Months Ended
Mar. 31, 2020
Leases  
Leases

7.

Leases

​

We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 12 years, some of which include renewal options, and some of which include options to terminate the leases within one year.

​

Our Anik F3 and Nimiq 5 satellites are accounted for as financing leases.  Substantially all of our remaining leases are accounted for as operating leases, including the remainder of our satellite fleet.

​

The components of lease expense were as follows:

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended 

​

​

​

March 31,

​

​

    

2020

​

2019

​

​

​

(In thousands)

​

Operating lease cost

​

$

61,715

​

$

80,286

​

​

​

​

​

​

​

​

​

Short-term lease cost (1)

​

​

2,667

​

​

19,285

​

​

​

​

​

​

​

​

​

Finance lease cost:

​

​

​

​

​

​

​

Amortization of right-of-use assets

​

​

12,448

​

​

6,108

​

Interest on lease liabilities

​

​

4,798

​

​

1,181

​

Total finance lease cost

​

​

17,246

​

​

7,289

​

Total lease costs

​

$

81,628

​

$

106,860

​

​

​

​

​

​

​

​

​

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

​

Supplemental cash flow information related to leases was as follows:

​

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

​

​

March 31,

​

​

​

2020

​

2019

​

​

​

(In thousands)

​

Cash paid for amounts included in the measurement of lease liabilities:

​

​

​

​

​

​

​

Operating cash flows from operating leases

​

$

61,808

​

$

81,012

​

Operating cash flows from finance leases

​

$

4,798

​

$

1,195

​

Financing cash flows from finance leases

​

$

11,466

​

$

6,055

​

​

​

​

​

​

​

​

​

Right-of-use assets obtained in exchange for lease obligations:

​

​

​

​

​

​

​

Operating leases

​

$

6,749

​

$

47,321

​

Finance leases

​

$

—

​

$

—

​

​

​

​

​

​

​

​

​

Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842

​

​

​

​

$

730,180

​

​

​

​

​

​

​

​

​

​

​

Supplemental balance sheet information related to leases was as follows:

​

​

​

​

​

​

​

​

​

As of

​

​

March 31, 2020

​

December 31, 2019

​

​

(In thousands)

​

Operating Leases:

​

​

​

​

​

​

Operating lease assets

$

516,318

​

$

553,576

​

​

​

​

​

​

​

​

Other current liabilities

$

205,068

​

$

202,972

​

Operating lease liabilities

​

310,710

​

​

350,155

​

Total operating lease liabilities

$

515,778

​

$

553,127

​

​

​

​

​

​

​

​

Finance Leases:

​

​

​

​

​

​

Property and equipment, gross

$

399,764

​

$

399,764

​

Accumulated depreciation

​

(214,322)

​

​

(201,873)

​

Property and equipment, net

$

185,442

​

$

197,891

​

​

​

​

​

​

​

​

Other current liabilities

$

49,743

​

$

48,678

​

Other long-term liabilities

​

151,421

​

​

163,939

​

Total finance lease liabilities

$

201,164

​

$

212,617

​

​

​

​

​

​

​

​

Weighted Average Remaining Lease Term:

​

​

​

​

​

​

Operating leases

​

3.2 years

​

​

3.4 years

​

Finance leases

​

4.0 years

​

​

4.2 years

​

​

​

​

​

​

​

​

Weighted Average Discount Rate:

​

​

​

​

​

​

Operating leases

​

9.0%

​

​

9.1%

​

Finance leases

​

9.5%

​

​

9.5%

​

​

​

​

​

​

​

​

​

Maturities of lease liabilities as of March 31, 2020 were as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Maturities of Lease Liabilities

​

​

​

Operating

​

Finance

​

​

​

​

For the Years Ending December 31,

​

Leases

​

Leases

​

Total

​

​

​

(In thousands)

​

2020 (remaining nine months)

​

$

181,706

​

$

50,056

​

$

231,762

​

2021

​

​

203,198

​

​

66,279

​

​

269,477

​

2022

​

​

130,570

​

​

50,227

​

​

180,797

​

2023

​

​

26,599

​

​

42,862

​

​

69,461

​

2024

​

​

11,112

​

​

32,147

​

​

43,259

​

Thereafter

​

​

42,350

​

​

—

​

​

42,350

​

Total lease payments

​

​

595,535

​

​

241,571

​

​

837,106

​

Less: Imputed interest

​

​

(79,757)

​

​

(40,407)

​

​

(120,164)

​

Total

​

​

515,778

​

​

201,164

​

​

716,942

​

Less: Current portion

​

​

(205,068)

​

​

(49,743)

​

​

(254,811)

​

Long-term portion of lease obligations

​

$

310,710

​

$

151,421

​

$

462,131

​

​

​

​

​

​

​

​

​

​

​

​

​