Property and Equipment

3 Months Ended

Mar. 31, 2023

Property and Equipment

Property and Equipment

6. Property and Equipment

Property and equipment consisted of the following:

	Depreciable		As of
	Life	March 31,		December 31,
	(In Years)	2023		2022
		(In thousands)
Equipment leased to customers	2-5	$	1,264,030	$	1,309,737
EchoStar XV	15		277,658		277,658
EchoStar XVIII	15		411,255		411,255
Satellites acquired under finance lease agreements	15		174,685		174,685
Furniture, fixtures, equipment and other	2-20		1,058,220		1,054,619
Software	3-5		866,458		859,911
Buildings and improvements	5-40		295,328		295,375
Land	-		12,505		12,505
Construction in progress	-		35,722		35,326
Total property and equipment			4,395,861		4,431,071
Accumulated depreciation			(3,458,633)		(3,440,185)
Property and equipment, net		$	937,228	$	990,886

Depreciation and amortization expense consisted of the following:

	For the Three Months Ended
	March 31,
	2023		2022
	(In thousands)
Equipment leased to customers	$	46,712	$	51,270
Satellites		20,073		23,797
Buildings, furniture, fixtures, equipment and other		17,115		20,849
Total depreciation and amortization	$	83,900	$	95,916

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 ten satellites in geostationary orbit approximately 22,300 miles above the equator, two of which we own and depreciate over their estimated useful life. We currently utilize certain capacity on six satellites that we lease from DISH Network, which are accounted for as operating leases, except for Nimiq 5 which is accounted for as a finance lease and is depreciated over its economic life. We also lease two satellites from third parties: Ciel II and Anik F3, which are accounted for as operating leases.

As of March 31, 2023, our pay-TV satellite fleet consisted of the following:

		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A
Under Construction:
EchoStar XXV (1)	2026	110	N/A
Leased from DISH Network (2):
EchoStar X	February 2006	110	February 2024
EchoStar XI	July 2008	110	February 2024
EchoStar XIV	March 2010	119	February 2024
EchoStar XVI	November 2012	61.5	January 2024
EchoStar XXIII	March 2017	110	Month to month
Nimiq 5	September 2009	72.7	September 2023
Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2025
Ciel II	December 2008	129	July 2023

(1) On March 20, 2023, DISH Network 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. This satellite is expected to be launched during 2026.

(2) See Note 13 for further information on our Related Party Transactions with DISH Network.