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Property and Equipment
9 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
The following tables presents the components of Property and equipment, net:
As of
September 30,
2020
December 31,
2019
Property and equipment, net:
Satellites, net$1,613,465 $1,749,576 
Other property and equipment, net759,129 779,162 
Total property and equipment, net$2,372,594 $2,528,738 
Satellites
 
As of September 30, 2020, our operating satellite fleet consisted of 10 satellites, seven of which are owned and three of which are leased. They are all in geosynchronous orbit, approximately 22,300 miles above the equator.
The following table presents our operating satellite fleet as of September 30, 2020 which consists of both owned and leased satellites:
Satellite Segment Launch Date Nominal Degree Orbital Location (Longitude) Depreciable Life (In Years)
Owned:        
SPACEWAY 3 (1)
 Hughes August 2007 95 W 10
EchoStar XVII Hughes July 2012 107 W 15
EchoStar XIXHughesDecember 201697.1 W15
Al Yah 3 (2)
HughesJanuary 201820 W7
EchoStar IX (3)
 ESS August 2003 121 W 12
EUTELSAT 10A (4)
 Corporate and Other April 2009 10 E -
EchoStar XXICorporate and OtherJune 201710.25 E15
         
Finance leases:        
Eutelsat 65 West AHughesMarch 201665 W15
Telesat T19VHughesJuly 201863 W15
EchoStar 105/SES-11ESSOctober 2017105 W15
(1)    Depreciable life represents the remaining useful life as of June 8, 2011, the date EchoStar completed its acquisition of Hughes Communications, Inc. and its subsidiaries (the “Hughes Acquisition”).
(2)    Upon consummation of our joint venture with Yahsat in Brazil in November 2019, we acquired the Brazilian Ka-band payload on this satellite. Depreciable life represents the remaining useful life as of November 2019.
(3)    We own the Ka-band and Ku-band payloads on this satellite.
(4)    We acquired the S-band payload on this satellite in December 2013. Prior to acquisition, the S-band payload experienced an anomaly at the time of launch and, as a result, is not fully operational.
The following table presents the components of our satellites, net:
 Depreciable Life
(In Years)
As of
 September 30,
2020
December 31,
2019
Satellites, net:
Satellites - owned
7 to 15
$1,800,735 $1,816,303 
Satellites - acquired under finance leases15344,376 381,163 
Construction in progress391,288 365,133 
Total satellites2,536,399 2,562,599 
Accumulated depreciation:
Satellites - owned(856,787)(756,635)
Satellites - acquired under finance leases(66,147)(56,388)
Total accumulated depreciation(922,934)(813,023)
Total satellites, net$1,613,465 $1,749,576 
The following table presents the depreciation expense and capitalized interest associated with our satellites, net:
 For the three months ended September 30,For the nine months ended September 30,
 2020201920202019
Depreciation expense:
Satellites - owned$32,073 $32,620 $96,220 $96,650 
Satellites acquired under finance leases7,203 6,377 20,421 19,269 
Total depreciation expense$39,276 $38,997 $116,641 $115,919 
Capitalized interest $7,261 $6,062 $20,839 $16,418 
Construction in Progress

In August 2017, we entered into a contract for the design and construction of the EchoStar XXIV satellite, a new, next-generation, high throughput geostationary satellite. The EchoStar XXIV satellite is primarily intended to provide additional capacity for our HughesNet satellite internet service (“HughesNet service”) in North, Central and South America as well as enterprise broadband services. Space Systems/Loral, LLC, the manufacturer of our EchoStar XXIV satellite has notified us of a delay in completion of the satellite. The EchoStar XXIV satellite is expected to be launched no earlier than the first quarter of 2022. Capital expenditures associated with the construction and launch of the EchoStar XXIV satellite are included in Corporate and Other in our segment reporting.
Satellite Commitments
 
As of September 30, 2020 and December 31, 2019, our satellite-related obligations were $391.0 million and $419.0 million, respectively. These primarily include payments pursuant to agreements for the construction of the EchoStar XXIV satellite, payments pursuant to regulatory authorizations, non-lease costs associated with our finance lease satellites, in-orbit incentives relating to certain satellites and commitments for satellite service arrangements.
In certain circumstances, the dates on which we are obligated to pay our contractual obligations could change.
Satellite Anomalies and Impairments
 
We are not aware of any anomalies with respect to our owned or leased satellites or payloads that have had any significant adverse effect on their remaining useful lives, the commercial operation of the satellites or payloads or our operating results or financial position as of and for the three and nine months ended September 30, 2020.

Satellite Insurance

We generally do not carry in-orbit insurance on our satellites or payloads because we have assessed that the cost of insurance is not economical relative to the risk of failures. Therefore, we generally bear the risk of any in-orbit failures. Pursuant to the terms of the agreements governing certain portions of our long-term debt and our joint venture agreements with Yahsat, we are required, subject to certain limitations on coverage, to maintain only for the SPACEWAY 3 satellite, the EchoStar XVII satellite and the Al Yah 3 Brazilian payload, insurance or other contractual arrangements during the commercial in-orbit service of such satellite or payload. Our other satellites and payloads, either in orbit or under construction, are not covered by launch or in-orbit insurance or other contractual arrangements. We will continue to assess circumstances going forward and make insurance-related decisions on a case-by-case basis.
Fair Value of In-Orbit IncentivesAs of September 30, 2020 and December 31, 2019, the fair values of our in-orbit incentive obligations from our continuing operations approximated their carrying amounts of $55.7 million and $57.0 million, respectively.