Leases

9 Months Ended

Sep. 30, 2021

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 Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
	(In thousands)
Operating lease cost	$	57,282	$	61,750	$	174,987	$	185,273
Short-term lease cost (1)		6,609		3,148		17,445		9,548
Finance lease cost:
Amortization of right-of-use assets		12,374		12,374		37,122		37,122
Interest on lease liabilities		3,138		4,270		10,282		13,602
Total finance lease cost		15,512		16,644		47,404		50,724
Total lease costs	$	79,403	$	81,542	$	239,836	$	245,545

(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,
	2021		2020
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	171,678	$	186,059
Operating cash flows from finance leases	$	10,035	$	13,602
Financing cash flows from finance leases	$	38,188	$	35,234
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	19,377	$	32,863
Finance leases	$	—	$	—

Supplemental balance sheet information related to leases was as follows:

	As of
	September 30,		December 31,
	2021		2020
	(In thousands)
Operating Leases:
Operating lease assets	$	244,317	$	380,968
Other current liabilities	$	136,386	$	186,967
Operating lease liabilities		109,856		192,624
Total operating lease liabilities	$	246,242	$	379,591
Finance Leases:
Property and equipment, gross	$	398,875	$	398,875
Accumulated depreciation		(288,195)		(251,073)
Property and equipment, net	$	110,680	$	147,802
Other current liabilities	$	44,362	$	49,820
Other long-term liabilities		78,059		110,789
Total finance lease liabilities	$	122,421	$	160,609
Weighted Average Remaining Lease Term:
Operating leases		3.0 years		2.9 years
Finance leases		2.8 years		3.3 years
Weighted Average Discount Rate:
Operating leases		8.3%		8.7%
Finance leases		9.8%		9.6%

Maturities of lease liabilities as of September 30, 2021 were as follows:

	Maturities of Lease Liabilities
	Operating		Finance
For the Years Ending December 31,	Leases		Leases		Total
	(In thousands)
2021 (remaining three months)	$	41,321	$	14,390	$	55,711
2022		141,774		50,227		192,001
2023		35,591		42,862		78,453
2024		16,148		32,147		48,295
2025		9,278		—		9,278
Thereafter		35,907		—		35,907
Total lease payments		280,019		139,626		419,645
Less: Imputed interest		(33,777)		(17,205)		(50,982)
Total		246,242		122,421		368,663
Less: Current portion		(136,386)		(44,362)		(180,748)
Long-term portion of lease obligations	$	109,856	$	78,059	$	187,915