6.Property and Equipment

Property and equipment consisted of the following:


	Depreciable		As of
	Life	March 31,		December 31,
	(In Years)	2019		2018
		(In thousands)
Equipment leased to customers	2-5	$	1,908,048	$	1,980,808
EchoStar XV	15		277,658		277,658
Satellites acquired under finance lease agreements (1)	10-15		223,423		499,819
Furniture, fixtures, equipment and other	2-10		1,849,292		1,820,883
Buildings and improvements	4-40		283,881		289,244
Land	-		13,186		13,186
Construction in progress	-		46,751		47,077
Total property and equipment			4,602,239		4,928,675
Accumulated depreciation			(3,276,204)		(3,550,726)
Property and equipment, net		$	1,326,035	$	1,377,949

(1)

The Ciel II satellite was previously classified as a finance lease, however, as a result of an amendment, which was effective during the first quarter 2019, Ciel II is now accounted for as an operating lease.

Depreciation and amortization expense consisted of the following:


	For the Three Months Ended
	March 31,
	2019		2018
	(In thousands)
Equipment leased to customers	$	108,136	$	107,281
Satellites		10,655		15,261
Buildings, furniture, fixtures, equipment and other		36,324		55,977
Total depreciation and amortization	$	155,115	$	178,519

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

Pay-TV Satellites. We currently utilize 11 satellites in geostationary orbit approximately 22,300 miles above the equator, one of which we own and depreciate over its estimated useful life. We currently utilize certain capacity on seven satellites that we lease from EchoStar and one satellite that we lease from DISH Network, which are accounted for as operating leases. We also lease two satellites from third parties, Ciel II, which is now accounted for as an operating lease, and Anik F3, which is accounted for as a financing lease and is depreciated over its economic life.

As of March 31, 2019, our pay-TV satellite fleet consisted of the following:


		Degree	Estimated Useful Life
	Launch	Orbital	(Years) / Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	15

Leased from DISH Network (1):
EchoStar XVIII	June 2016	61.5	Month to month

Leased from EchoStar (2):
EchoStar IX	August 2003	121	Month to month
EchoStar X (3)	February 2006	110	February 2021
EchoStar XI (3)	July 2008	110	September 2021
EchoStar XIV (3)	March 2010	119	February 2023
EchoStar XVI (4)	November 2012	61.5	January 2023
Nimiq 5	September 2009	72.7	September 2019
QuetzSat-1	September 2011	77	November 2021

Leased from Other Third Party:
Anik F3	April 2007	118.7	April 2022
Ciel II (5)	December 2008	129	January 2020

(1)

See Note 13 for further information on our Related Party Transactions with DISH Network.

(2)

See Note 13 for further information on our Related Party Transactions with EchoStar.

(3)

We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite.

(4)

We have the option to renew this lease for an additional five-year period.

(5)

During the fourth quarter 2018, we amended this lease.