Leases

12 Months Ended

Dec. 31, 2019

Leases

Leases

7.Leases

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

Our Anik F3 and Nimiq 5 satellites are accounted for as financing leases.  Substantially all of our remaining leases are accounted for as operating leases, including the remainder of our satellite fleet.

The components of lease expense were as follows:

	For the Year Ended
	December 31, 2019
	(In thousands)
Operating lease cost	$	297,181
Short-term lease cost (1)		37,686
Finance lease cost:
Amortization of right-of-use assets		29,134
Interest on lease liabilities		9,826
Total finance lease cost		38,960
Total lease costs	$	373,827

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

Supplemental cash flow information related to leases was as follows:

	For the Year Ended
	December 31, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	301,524
Operating cash flows from finance leases	$	9,826
Financing cash flows from finance leases	$	31,841
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	81,198
Finance leases	$	175,311
Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842	$	730,180

Supplemental balance sheet information related to leases was as follows:

	As of
	December 31, 2019
	(In thousands)
Operating Leases:
Operating lease right-of-use assets	$	553,576
Other current liabilities	$	202,972
Operating lease liabilities		350,155
Total operating lease liabilities	$	553,127
Finance Leases:
Property and equipment, gross	$	399,764
Accumulated depreciation		(201,873)
Property and equipment, net	$	197,891
Other current liabilities	$	48,678
Other long-term liabilities		163,939
Total finance lease liabilities	$	212,617
Weighted Average Remaining Lease Term:
Operating leases		3.4 years
Finance leases		4.2 years
Weighted Average Discount Rate:
Operating leases		9.1%
Finance leases		9.5%

Maturities of lease liabilities as of December 31, 2019 were as follows:

	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total
	(In thousands)
2020	$	239,660	$	66,285	$	305,945
2021		199,062		66,279		265,341
2022		127,300		50,227		177,527
2023		24,571		42,862		67,433
2024		9,191		32,147		41,338
Thereafter		42,008				42,008
Total lease payments		641,792		257,800		899,592
Less: Imputed interest		(88,665)		(45,183)		(133,848)
Total		553,127		212,617		765,744
Less: Current portion		(202,972)		(48,678)		(251,650)
Long-term portion of lease obligations	$	350,155	$	163,939	$	514,094