Leases

12 Months Ended

Dec. 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 11 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 Years Ended December 31,
	2020		2019
	(In thousands)
Operating lease cost	$	246,523	$	297,181
Short-term lease cost (1)		11,409		37,686
Finance lease cost:
Amortization of right-of-use assets		49,496		29,134
Interest on lease liabilities		17,595		9,826
Total finance lease cost		67,091		38,960
Total lease costs	$	325,023	$	373,827

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

Supplemental cash flow information related to leases was as follows:

	For the Years Ended December 31,
	2020		2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	247,413	$	301,524
Operating cash flows from finance leases	$	17,595	$	9,826
Financing cash flows from finance leases	$	49,231	$	31,841
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	37,899	$	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,
	2020		2019
	(In thousands)
Operating Leases:
Operating lease assets	$	380,968	$	553,576
Other current liabilities	$	186,967	$	202,972
Operating lease liabilities		192,624		350,155
Total operating lease liabilities	$	379,591	$	553,127
Finance Leases:
Property and equipment, gross	$	398,875	$	399,764
Accumulated depreciation		(251,073)		(201,873)
Property and equipment, net	$	147,802	$	197,891
Other current liabilities	$	49,820	$	48,678
Other long-term liabilities		110,789		163,939
Total finance lease liabilities	$	160,609	$	212,617
Weighted Average Remaining Lease Term:
Operating leases		2.9 years		3.4 years
Finance leases		3.3 years		4.2 years
Weighted Average Discount Rate:
Operating leases		8.7%		9.1%
Finance leases		9.6%		9.5%

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

	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total
	(In thousands)
2021	$	208,759	$	62,613	$	271,372
2022		136,132		50,227		186,359
2023		30,165		42,862		73,027
2024		12,397		32,147		44,544
2025		8,081		—		8,081
Thereafter		35,474		—		35,474
Total lease payments		431,008		187,849		618,857
Less: Imputed interest		(51,417)		(27,240)		(78,657)
Total		379,591		160,609		540,200
Less: Current portion		(186,967)		(49,820)		(236,787)
Long-term portion of lease obligations	$	192,624	$	110,789	$	303,413