LEASES

12 Months Ended

Dec. 31, 2024

LEASES

LEASES

NOTE 8.  LEASES

Lessee Accounting

We enter into non-cancelable operating and finance leases for, among other things, satellites, satellite-related ground infrastructure, data centers, office space, warehouses and distribution centers. Substantially all of our leases have remaining lease terms from one to 13 years with a weighted average lease term of 6.6 years, some of which include renewal options, and some of which include options to terminate the leases within one year. For certain arrangements, the lease term includes the non-cancelable period plus the renewal period that we are reasonably certain to exercise.

Our Eutelsat 65 West A, Telesat T19V and EchoStar 105/SES-11 satellites are accounted for as finance leases. Substantially all of our remaining leases are accounted for as operating leases, including our EchoStar XXIV satellite lease. Refer to Note 15 for further details on the EchoStar XXIV operating lease.

The following table presents the amounts for ROU assets and lease liabilities:

	As of December 31,
	2024			2023
	(In thousands)
Right-of-use assets:
Operating	$	939,896		$	1,031,303
Finance		183,391			218,807
Total right-of-use assets	$	1,123,287		$	1,250,110
Lease liabilities:
Current:
Operating (1)	$	72,393		$	155,932
Finance		—			—
Total current		72,393			155,932
Noncurrent:
Operating		830,629			897,084
Finance		—			—
Total noncurrent		830,629			897,084
Total lease liabilities	$	903,022		$	1,053,016
Weighted Average Remaining Lease Term:
Finance leases		0.0 years			0.0 years
Operating leases		6.6 years			7.5 years
Weighted Average Discount Rate:
Finance leases		—	%		—	%
Operating leases		12.0	%		12.1	%

(1) The decrease in current operating lease liabilities is due to prepayments related to the EchoStar XXIV satellite, resulting in the lease liability and associated asset being remeasured. Refer to Note 15 for further details on the EchoStar XXIV operating lease prepayments.

As of December 31, 2024 and 2023 we have prepaid our obligations regarding all of our finance ROU assets. Finance lease assets are reported net of accumulated amortization of $162 million and $150 million as of December 31, 2024 and 2023, respectively.

The following table presents the components of lease expense, weighted-average lease terms and discount rates for operating and finance leases:

	For the Years Ended December 31,
	2024		2023		2022
	(In thousands)
Lease cost:
Operating lease cost	$	24,845	$	30,299	$	25,219
Operating lease cost - EchoStar XXIV		190,699		—		—
Total operating lease cost		215,544		30,299		25,219
Finance lease cost:
Amortization of right-of-use assets		23,863		27,682		29,906
Interest on lease liabilities		—		—		7
Total finance lease cost		23,863		27,682		29,913
Short-term lease cost		—		—		258
Variable lease cost		—		—		2,246
Total lease cost	$	239,407	$	57,981	$	57,636

Supplemental cash flow information related to leases was as follows:

	For the Years Ended December 31,
	2024		2023		2022
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	273,300	$	22,981	$	24,653
Operating cash flows from finance leases	$	—	$	—	$	7
Financing cash flows from finance leases	$	—	$	—	$	124
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	229	$	902,981	$	4,307
Finance leases	$	—	$	—	$	—

Refer to Note 15 for further details on EchoStar XXIV operating lease.

Maturities of lease liabilities as of December 31, 2024 were as follows:

For the Years Ending December 31,	Total
		(In thousands)
2025	$	173,314
2026		216,059
2027		214,735
2028		212,812
2029		211,947
Thereafter		271,653
Total future minimum lease payments		1,300,520
Less: Interest		(397,498)
Total lease liabilities	$	903,022

Lessor Accounting

We lease satellite capacity, communications equipment and real estate to certain of our customers. The following table presents our lease revenue by type of lease:

	For the Years Ended December 31,
	2024		2023		2022
	(In thousands)
Sales-type lease revenue:
Revenue at lease commencement	$	8,517	$	11,429	$	7,557
Interest income		2,030		2,002		1,220
Total sales-type lease revenue		10,547		13,431		8,777
Operating lease revenue		14,734		47,051		64,375
Total lease revenue (1)	$	25,281	$	60,482	$	73,152

(1) The reduction in total lease revenue relates to the loss of a single significant customer.

Substantially all of our net investment in sales-type leases consisted of lease receivables totaling $26 million and $30 million as of December 31, 2024 and 2023, respectively.

The following table presents future operating lease payments to be received as of December 31, 2024:

For the Years Ending December 31,		Total
		(In thousands)
2025	$	9,322
2026		5,285
2027		4,093
2028		1,379
2029		1,008
Thereafter		16
Total	$	21,103