7.Property and Equipment

Property and equipment consisted of the following:


	Depreciable			As of
	Life			March 31,		December 31,
	(In Years)			2019		2018
				(In thousands)
Equipment leased to customers	2	-	5	$	1,940,528	$	2,016,965
EchoStar XV		15			277,658		277,658
EchoStar XVIII		15			411,255		411,255
D1		N/A			55,000		55,000
T1 (1)		14			66,071		100,000
Satellites acquired under finance lease agreements (2)	10	-	15		223,423		499,819
Furniture, fixtures, equipment and other	2	-	10		1,910,150		1,923,585
Buildings and improvements	4	-	40		285,321		290,650
Land		—			13,186		13,186
Construction in progress		—			126,186		100,560
Total property and equipment					5,308,778		5,688,678
Accumulated depreciation					(3,445,611)		(3,760,498)
Property and equipment, net				$	1,863,167	$	1,928,180

(1)

See Note 5 for further information on the transaction with TSI.

(2)

The Ciel II satellite was previously classified as a finance lease, however, as a result of an amendment, which was effective during the first quarter 2019, Ciel II is now accounted for as an operating lease.

Depreciation and amortization expense consisted of the following:


	For the Three Months Ended
	March 31,
	2019		2018
	(In thousands)
Equipment leased to customers	$	109,154	$	110,521
Satellites		20,479		25,086
Buildings, furniture, fixtures, equipment and other		23,506		57,365
Total depreciation and amortization	$	153,139	$	192,972

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.

Pay-TV Satellites. We currently utilize 11 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 seven satellites that we lease from EchoStar, which are accounted for as operating leases. We also lease two satellites from third parties, Ciel II which is now accounted for as an operating lease and Anik F3 which is accounted for as a financing lease and is depreciated over its economic life.

As of March 31, 2019, our pay-TV satellite fleet consisted of the following:


			Estimated
			Useful Life
		Degree	(Years)/Lease
	Launch	Orbital	Termination
Satellites	Date	Location	Date
Owned:
EchoStar XV	July 2010	61.5	15
EchoStar XVIII	June 2016	61.5	15

Leased from EchoStar (1):
EchoStar IX	August 2003	121	Month to month
EchoStar X (2)	February 2006	110	February 2021
EchoStar XI (2)	July 2008	110	September 2021
EchoStar XIV (2)	March 2010	119	February 2023
EchoStar XVI (3)	November 2012	61.5	January 2023
Nimiq 5	September 2009	72.7	September 2019
QuetzSat-1	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II (4)	December 2008	129	January 2020

(1)

See Note 13 for further information on our Related Party Transactions with EchoStar.

(2)

We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite.

(3)

We have the option to renew this lease for an additional five-year period.

(4)

During the fourth quarter 2018, we amended this lease.

(5)