Property and Equipment and Intangible Assets

3 Months Ended

Mar. 31, 2022

Property and Equipment and Intangible Assets

Property and Equipment

6. Property and Equipment

Property and equipment consisted of the following:

	Depreciable		As of
	Life	March 31,		December 31,
	(In Years)	2022		2021
		(In thousands)
Equipment leased to customers	2-5	$	1,459,380	$	1,518,880
EchoStar XV	15		277,658		277,658
EchoStar XVIII	15		411,255		411,255
Satellites acquired under finance lease agreements	15		398,107		398,107
Furniture, fixtures, equipment and other	2-10		1,888,512		1,882,610
Buildings and improvements	5-40		293,780		292,840
Land	-		12,505		12,505
Construction in progress	-		30,687		37,339
Total property and equipment			4,771,884		4,831,194
Accumulated depreciation			(3,610,023)		(3,598,014)
Property and equipment, net		$	1,161,861	$	1,233,180

Depreciation and amortization expense consisted of the following:

	For the Three Months Ended
	March 31,
	2022		2021
	(In thousands)
Equipment leased to customers	$	51,270	$	64,262
Satellites		23,797		23,797
Buildings, furniture, fixtures, equipment and other		20,849		27,183
Total depreciation and amortization	$	95,916	$	115,242

Cost of sales and operating expense categories included in our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation expense related to satellites or equipment leased to customers.

Pay-TV Satellites. We currently utilize ten satellites in geostationary orbit approximately 22,300 miles above the equator, two of which we own and depreciate over their estimated useful life. We currently utilize certain capacity on five satellites that we lease from DISH Network, one satellite that we lease from EchoStar, and two satellites that we lease from third parties. All leased satellites are accounted for as operating leases except Nimiq 5 and Anik F3, which are accounted for as financing leases and are each depreciated over their economic life. As of March 31, 2022, the Anik F3 satellite was accounted for as a finance lease and was fully depreciated. However, during April 2022, we extended this lease and as a result, Anik F3 will subsequently be accounted for as an operating lease.

As of March 31, 2022, our pay-TV satellite fleet consisted of the following:

		Degree
	Launch	Orbital	Lease
Satellites	Date	Location	Termination Date
Owned:
EchoStar XV	July 2010	61.5	N/A
EchoStar XVIII	June 2016	61.5	N/A
Leased from EchoStar:
EchoStar IX	August 2003	121	Month to month
Leased from DISH Network (1):
EchoStar X	February 2006	110	February 2023
EchoStar XI	July 2008	110	September 2022
EchoStar XIV	March 2010	119	February 2023
EchoStar XVI	November 2012	61.5	January 2023
Nimiq 5	September 2009	72.7	September 2022
Leased from Other Third Party:
Anik F3 (2)	April 2007	118.7	April 2025
Ciel II	December 2008	129	July 2023

(1) See Note 13 for further information on our Related Party Transactions with DISH Network.

(2) During April 2022, we extended the Anik F3 satellite lease for an additional two years with an option to renew for one additional year to April 2025.