Leases

9 Months Ended

Sep. 30, 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				For the Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
	(In thousands)
Operating lease cost	$	61,750	$	72,739	$	185,273	$	234,787
Short-term lease cost (1)		3,148		3,010		9,548		34,436
Finance lease cost:
Amortization of right-of-use assets		12,374		6,773		37,122		16,686
Interest on lease liabilities		4,270		2,495		13,602		4,775
Total finance lease cost		16,644		9,268		50,724		21,461
Total lease costs	$	81,542	$	85,017	$	245,545	$	290,684

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

Supplemental cash flow information related to leases was as follows:

	For the Nine Months Ended
	September 30,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	186,059	$	237,881
Operating cash flows from finance leases	$	13,602	$	4,775
Financing cash flows from finance leases	$	35,234	$	20,469
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	32,863	$	72,947
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
	September 30, 2020		December 31, 2019
	(In thousands)
Operating Leases:
Operating lease assets	$	429,118	$	553,576
Other current liabilities	$	203,291	$	202,972
Operating lease liabilities		224,593		350,155
Total operating lease liabilities	$	427,884	$	553,127
Finance Leases:
Property and equipment, gross	$	398,875	$	399,764
Accumulated depreciation		(238,699)		(201,873)
Property and equipment, net	$	160,176	$	197,891
Other current liabilities	$	52,004	$	48,678
Other long-term liabilities		124,176		163,939
Total finance lease liabilities	$	176,180	$	212,617
Weighted Average Remaining Lease Term:
Operating leases		3.0 years		3.4 years
Finance leases		3.5 years		4.2 years
Weighted Average Discount Rate:
Operating leases		8.8%		9.1%
Finance leases		9.6%		9.5%

Maturities of lease liabilities as of September 30, 2020 were as follows:

	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total
	(In thousands)
2020 (remaining three months)	$	61,023	$	16,223	$	77,246
2021		207,469		66,279		273,748
2022		134,793		50,227		185,020
2023		28,931		42,862		71,793
2024		11,836		32,147		43,983
Thereafter		43,555		—		43,555
Total lease payments		487,607		207,738		695,345
Less: Imputed interest		(59,723)		(31,558)		(91,281)
Total		427,884		176,180		604,064
Less: Current portion		(203,291)		(52,004)		(255,295)
Long-term portion of lease obligations	$	224,593	$	124,176	$	348,769