Property and Equipment and Intangible Assets

6 Months Ended

Jun. 30, 2023

Property and Equipment and Intangible Assets

Property and Equipment and Intangible Assets

7.Property and Equipment and Intangible Assets

Property and Equipment

Property and equipment consisted of the following:

	Depreciable			As of
	Life			June 30,		December 31,
	(In Years)			2023		2022
				(In thousands)
Equipment leased to customers	2	-	5	$	1,270,401	$	1,318,272
Satellites	4	-	15		1,718,865		1,718,865
Satellites acquired under finance lease agreements		15			344,447		344,447
Furniture, fixtures, equipment and other	2	-	20		1,219,583		1,215,496
5G Network Deployment equipment (1)	3	-	15		2,027,545		770,153
Software	3	-	6		1,485,225		1,354,656
Buildings and improvements	5	-	40		382,058		380,519
Land		-			17,513		17,513
Construction in progress		-			3,436,687		3,170,623
Total property and equipment					11,902,324		10,290,544
Accumulated depreciation					(4,963,710)		(4,650,425)
Property and equipment, net				$	6,938,614	$	5,640,119

(1) Includes 5G Network Deployment assets acquired under finance lease agreements.

Depreciation and amortization expense consisted of the following:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
	(In thousands)
Equipment leased to customers	$	44,891	$	49,757	$	91,607	$	101,030
Satellites		32,955		36,081		69,037		75,887
Buildings, furniture, fixtures, equipment and other		14,579		9,798		27,319		24,375
5G Network Deployment equipment		75,729		4,621		136,881		8,324
Software		52,634		32,914		95,976		62,749
Intangible assets		45,222		35,052		90,887		72,199
Total depreciation and amortization	$	266,010	$	168,223	$	511,707	$	344,564

Cost of sales and operating expense categories included in our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation and amortization expense related to satellites, equipment leased to customers, or our 5G Network Deployment equipment and software.

Satellites

Pay-TV Satellites. We currently utilize ten satellites in geostationary orbit approximately 22,300 miles above the equator, seven of which we own and depreciate over their estimated useful life. We also lease three satellites from third parties: Ciel II and Anik F3, which are accounted for as operating leases, and Nimiq 5, which is accounted for as a finance lease and is depreciated over its economic life.

As of June 30, 2023, our pay-TV satellite fleet consisted of the following:

		Degree	Lease
	Launch	Orbital	Termination
Satellites	Date	Location	Date
Owned:
EchoStar X	February 2006	110	N/A
EchoStar XI	July 2008	110	N/A
EchoStar XIV	March 2010	119	N/A
EchoStar XV	July 2010	61.5	N/A
EchoStar XVI	November 2012	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A
EchoStar XXIII	March 2017	110	N/A
Under Construction:
EchoStar XXV	2026	110	N/A
Leased from Other Third-Party:
Anik F3	April 2007	118.7	April 2025
Ciel II (1)	December 2008	129	July 2023
Nimiq 5	September 2009	72.7	September 2024

(1) We no longer lease this satellite.

Satellite Under Construction

EchoStar XXV. On March 20, 2023, we entered into a contract with Maxar Space LLC for the construction of EchoStar XXV, a DBS satellite that is capable of providing service to the continental United States (“CONUS”) and is intended to be used at the 110 degree orbital location. This satellite is expected to be launched during 2026.