Leases

9 Months Ended

Sep. 30, 2021

Leases

Leases

9.Leases

We enter into operating and finance leases for, among other things, communication towers, satellites, office space, fiber and transport equipment, 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 Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
	(In thousands)
Operating lease cost	$	14,004	$	18,281	$	47,585	$	54,130
Short-term lease cost (1)		2,488		2,726		9,686		8,284
Finance lease cost:
Amortization of right-of-use assets		17,829		17,829		53,488		53,488
Interest on lease liabilities		3,467		5,070		11,635		16,326
Total finance lease cost		21,296		22,899		65,123		69,814
Total lease costs	$	37,788	$	43,906	$	122,394	$	132,228

(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 Nine Months Ended
	September 30,
	2021		2020
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	52,220	$	54,611
Operating cash flows from finance leases	$	9,932	$	16,326
Financing cash flows from finance leases	$	49,873	$	47,301
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (1)	$	799,261	$	41,665
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
	September 30,		December 31,
	2021		2020
	(In thousands)
Operating Leases:
Operating lease assets (1)	$	853,140	$	104,271
Other current liabilities	$	53,257	$	56,856
Operating lease liabilities (1)		818,931		63,526
Total operating lease liabilities	$	872,188	$	120,382
Finance Leases:
Property and equipment, gross	$	889,708	$	889,708
Accumulated depreciation		(807,780)		(754,292)
Property and equipment, net	$	81,928	$	135,416
Other current liabilities	$	39,221	$	58,379
Other long-term liabilities		73,080		103,795
Total finance lease liabilities	$	112,301	$	162,174
Weighted Average Remaining Lease Term:
Operating leases (1)		12.6 years		2.8 years
Finance leases		2.7 years		3.1 years
Weighted Average Discount Rate:
Operating leases		4.5%		4.2%
Finance leases		10.8%		10.4%

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

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

	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total
	(In thousands)
2021 (remaining three months)	$	19,403	$	10,498	$	29,901
2022		70,974		48,307		119,281
2023		70,234		40,942		111,176
2024		72,764		30,707		103,471
2025		74,821		—		74,821
Thereafter		905,368		—		905,368
Total lease payments		1,213,564		130,454		1,344,018
Less: Imputed interest		(341,376)		(18,153)		(359,529)
Total		872,188		112,301		984,489
Less: Current portion		(53,257)		(39,221)		(92,478)
Long-term portion of lease obligations	$	818,931	$	73,080	$	892,011