Leases

6 Months Ended

Jun. 30, 2021

Leases

Leases

9.Leases

We enter into operating and finance leases for, among other things, communication towers, satellites, office space, warehouses and distribution centers, vehicles and other equipment. Our leases have remaining lease terms from one to 16 years, some of which include renewal options, and some of which include options to terminate the leases within one year.

Our Anik F3, Nimiq 5 and QuetzSat-1 satellites are accounted for as financing leases. Substantially all of our remaining leases are accounted for as operating leases.

The components of lease expense were as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
	(In thousands)
Operating lease cost	$	18,798	$	18,118	$	33,581	$	35,849
Short-term lease cost (1)		3,726		2,891		7,198		5,558
Finance lease cost:
Amortization of right-of-use assets		17,830		17,755		35,659		35,659
Interest on lease liabilities		3,880		5,443		8,168		11,256
Total finance lease cost		21,710		23,198		43,827		46,915
Total lease costs	$	44,234	$	44,207	$	84,606	$	88,322

(1) Leases that have terms of 12 months or less.

Supplemental cash flow information related to leases was as follows:
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	For the Six Months Ended
	June 30,
	2021		2020
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	34,377	$	35,977
Operating cash flows from finance leases	$	6,599	$	11,256
Financing cash flows from finance leases	$	31,276	$	31,181
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (1)	$	222,908	$	22,708
Finance leases	$	—	$	—

(1) The increase in operating lease assets primarily related to communication tower leases.

Supplemental balance sheet information related to leases was as follows:

	As of
	June 30,		December 31,
	2021		2020
	(In thousands)
Operating Leases:
Operating lease assets (1)	$	293,570	$	104,271
Other current liabilities	$	53,411	$	56,856
Operating lease liabilities (1)		253,321		63,526
Total operating lease liabilities	$	306,732	$	120,382
Finance Leases:
Property and equipment, gross	$	889,708	$	889,708
Accumulated depreciation		(789,951)		(754,292)
Property and equipment, net	$	99,757	$	135,416
Other current liabilities	$	49,767	$	58,379
Other long-term liabilities		81,131		103,795
Total finance lease liabilities	$	130,898	$	162,174
Weighted Average Remaining Lease Term:
Operating leases (1)		10.0 years		2.8 years
Finance leases		2.8 years		3.1 years
Weighted Average Discount Rate:
Operating leases		4.7%		4.2%
Finance leases		10.7%		10.4%

(1) The increase in operating lease assets primarily related to communication tower leases.

Maturities of lease liabilities as of June 30, 2021 were as follows:

	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total
	(In thousands)
2021 (remaining six months)	$	33,107	$	32,428	$	65,535
2022		48,502		48,307		96,809
2023		34,813		40,942		75,755
2024		29,060		30,707		59,767
2025		22,803		—		22,803
Thereafter		244,212		—		244,212
Total lease payments		412,497		152,384		564,881
Less: Imputed interest		(105,765)		(21,486)		(127,251)
Total		306,732		130,898		437,630
Less: Current portion		(53,411)		(49,767)		(103,178)
Long-term portion of lease obligations	$	253,321	$	81,131	$	334,452