Capital Lease

During the first quarter of 2018, the Company entered into a five-year capital lease for three satellite hubs for its HTS network. As of December 31, 2018, the gross costs and accumulated depreciation associated with this lease are included in revenue generating assets and amounted to $407. Property and equipment under capital leases are stated at the present value of minimum lease payments.

The property and equipment held under this capital lease are amortized on a straight‑line basis over the seven-year estimated useful life of the asset, since the lease meets the bargain purchase option criteria. Amortization of assets held under capital leases is included within depreciation expense. Depreciation expense for these capital assets was $407 for the year ended December 31, 2018.

The future minimum capital lease payments under this capital lease as of December 31, 2018 are:



Years ending December 31,
2019	624
2020	624
2021	624
2022	624
2023	45
Total minimum lease payments	$	2,541

Less amount representing interest (1.53%)	(34		)
Present value of net minimum capital lease payments	$	2,507
Less current installments of obligation under accrued other	610
Obligations under other long-term liabilities, excluding current installments	$	1,897