Leases

3 Months Ended

Mar. 31, 2020

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 12 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 Three Months Ended
	March 31,
	2020		2019
	(In thousands)
Operating lease cost	$	61,715	$	80,286
Short-term lease cost (1)		2,667		19,285
Finance lease cost:
Amortization of right-of-use assets		12,448		6,108
Interest on lease liabilities		4,798		1,181
Total finance lease cost		17,246		7,289
Total lease costs	$	81,628	$	106,860

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

Supplemental cash flow information related to leases was as follows:

	For the Three Months Ended
	March 31,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	61,808	$	81,012
Operating cash flows from finance leases	$	4,798	$	1,195
Financing cash flows from finance leases	$	11,466	$	6,055
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	6,749	$	47,321
Finance leases	$	—	$	—
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
	March 31, 2020		December 31, 2019
	(In thousands)
Operating Leases:
Operating lease assets	$	516,318	$	553,576
Other current liabilities	$	205,068	$	202,972
Operating lease liabilities		310,710		350,155
Total operating lease liabilities	$	515,778	$	553,127
Finance Leases:
Property and equipment, gross	$	399,764	$	399,764
Accumulated depreciation		(214,322)		(201,873)
Property and equipment, net	$	185,442	$	197,891
Other current liabilities	$	49,743	$	48,678
Other long-term liabilities		151,421		163,939
Total finance lease liabilities	$	201,164	$	212,617
Weighted Average Remaining Lease Term:
Operating leases		3.2 years		3.4 years
Finance leases		4.0 years		4.2 years
Weighted Average Discount Rate:
Operating leases		9.0%		9.1%
Finance leases		9.5%		9.5%

Maturities of lease liabilities as of March 31, 2020 were as follows:

	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total
	(In thousands)
2020 (remaining nine months)	$	181,706	$	50,056	$	231,762
2021		203,198		66,279		269,477
2022		130,570		50,227		180,797
2023		26,599		42,862		69,461
2024		11,112		32,147		43,259
Thereafter		42,350		—		42,350
Total lease payments		595,535		241,571		837,106
Less: Imputed interest		(79,757)		(40,407)		(120,164)
Total		515,778		201,164		716,942
Less: Current portion		(205,068)		(49,743)		(254,811)
Long-term portion of lease obligations	$	310,710	$	151,421	$	462,131