Property and Equipment and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

Property and Equipment and Intangible Assets

Schedule of property and equipment

	Depreciable
	Life			As of December 31,
	(In Years)			2020		2019
				(In thousands)
Equipment leased to customers	2	-	5	$	1,736,660	$	1,861,668
Satellites (1)	2	-	15		1,734,024		1,855,096
Satellites acquired under finance lease agreements	10	-	15		888,940		888,940
Furniture, fixtures, equipment and other	2	-	20		2,091,271		2,010,094
Buildings and improvements	5	-	40		370,941		349,347
Land		-			17,810		17,810
Construction in progress (1)		-			126,303		278,083
Total property and equipment					6,965,949		7,261,038
Accumulated depreciation					(4,783,616)		(4,554,856)
Property and equipment, net				$	2,182,333	$	2,706,182

(1) During the year ended December 31, 2020, we wrote down the T1 satellite net book value of $48 million (net of accumulated depreciation of $18 million) and the D1 satellite net book value of $55 million to their estimated fair value of zero. In addition, during the year ended December 31, 2020, we impaired $227 million for capitalized costs of equipment, labor and other assets related to the narrowband IoT deployment that would not be utilized in our 5G Network Deployment. As a result, we recorded a $330 million non-cash impairment charge in “Impairment of long-lived assets” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information.

Schedule of Construction in progress

	As of December 31,
	2020		2019
	(In thousands)
Software	$	43,555	$	51,493
Wireless (1)		72,817		207,814
Other		9,931		18,776
Total construction in progress	$	126,303	$	278,083

(1) During the year ended December 31, 2020, we impaired the capitalized costs of equipment, labor and other assets related to the narrowband IoT deployment that would not be utilized in our 5G Network Deployment, resulting in a $227 million non-cash impairment charge in “Impairment of long-lived assets” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information.

Schedule of depreciation and amortization expense

Depreciation and amortization expense consisted of the following:

	For the Years Ended December 31,
	2020		2019		2018
	(In thousands)
Equipment leased to customers	$	290,081	$	371,292	$	444,928
Satellites (1)		202,724		115,100		100,343
Buildings, furniture, fixtures, equipment and other		128,876		136,783		137,055
Intangible assets (2)		92,871		7,402		29,698
Total depreciation and amortization	$	714,552	$	630,577	$	712,024

(1) The increase in 2020 resulted from the Master Transaction Agreement pursuant to which, on September 10, 2019, certain satellites were transferred to us. See Note 20 for further information.

(2) The increase in 2020 resulted from the completion of the Boost Mobile Acquisition and the Ting Mobile Acquisition. See Note 6 for further information.

Schedule of pay-TV satellite fleet

		Degree	Lease
	Launch	Orbital	Termination
Satellites	Date	Location	Date
Owned:
EchoStar VII (1)	February 2002	119	N/A
EchoStar X (1)	February 2006	110	N/A
EchoStar XI (1)	July 2008	110	N/A
EchoStar XIV (1)	March 2010	119	N/A
EchoStar XV	July 2010	61.5	N/A
EchoStar XVI (1)	November 2012	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A
EchoStar XXIII (1)	March 2017	67.9	N/A
Leased from EchoStar (2):
EchoStar IX	August 2003	121	Month to month
Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II	December 2008	129	January 2022
Nimiq 5 (1)	September 2009	72.7	September 2024
QuetzSat-1 (1)	September 2011	77	November 2021

(1) Pursuant to the Master Transaction Agreement, on September 10, 2019 these satellites and satellite service agreements were transferred to us. See Note 20 for further information.

(2) See Note 20 for further information on our Related Party Transactions with EchoStar.

Schedule of AWS-4 Satellites

		Degree	Estimated
	Launch	Orbital	Useful Life
Satellites	Date	Location	(Years)
Owned:
T1	July 2009	111.1	14.25
D1	April 2008	92.85	N/A

Schedule of identifiable intangibles subject to amortization

	As of December 31,
	2020				2019
	Intangible		Accumulated		Intangible		Accumulated
	Assets		Amortization		Assets		Amortization
	(In thousands)
Technology-based	$	63,078	$	(58,453)	$	63,077	$	(57,414)
Trademarks (1)		133,428		(40,283)		37,010		(32,619)
Contract-based (1)		41,500		(23,000)		4,500		(4,500)
Customer relationships (1)		515,576		(89,301)		23,633		(23,633)
Total	$	753,582	$	(211,037)	$	128,220	$	(118,166)

(1) The increase in intangible assets resulted from the completion of the Boost Mobile Acquisition and the Ting Mobile Acquisition. See Note 6 for further information.

Schedule of estimated future amortization of identifiable intangible assets

Estimated future amortization of our identifiable intangible assets as of December 31, 2020 is as follows (in thousands):

For the Years Ended December 31,
2021	$	157,105
2022		130,198
2023		127,809
2024		69,512
2025		11,676
Thereafter		46,245
Total	$	542,545

Schedule of FCC authorizations

	As of December 31,
	2020		2019
	(In thousands)
Owned:
DBS Licenses	$	677,409	$	677,409
700 MHz Licenses		711,871		711,871
MVDDS Licenses		24,000		24,000
AWS-4 Licenses		1,940,000		1,940,000
H Block Licenses		1,671,506		1,671,506
600 MHz Licenses		6,211,154		6,211,154
28 GHz Licenses		2,883		2,883
24 GHz Licenses		11,772		11,772
37 GHz, 39 GHz & 47 GHz Licenses		202,533		—
Subtotal		11,453,128		11,250,595
Non-controlling Investments:
Northstar		5,618,930		5,618,930
SNR		4,271,459		4,271,459
Total AWS-3 Licenses		9,890,389		9,890,389
Capitalized Interest (1)		5,560,422		4,638,519
Total	$	26,903,939	$	25,779,503

(1) See Note 2 for further information.