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PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 31, 2022
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT
4. PROPERTY AND EQUIPMENT
 
Property and equipment consists of the following (in thousands):
As of December 31,
20222021
Globalstar System:  
Space component  
First and second-generation satellites in service$1,246,343 $1,195,509 
Second-generation satellite, on-ground spare— 32,442 
Ground component92,125 282,268 
Construction in progress: 
Space component110,068 16,394 
Ground component5,316 33,998 
Other9,167 4,123 
Total Globalstar System1,463,019 1,564,734 
Internally developed and purchased software22,509 20,823 
Equipment8,042 8,590 
Land and buildings1,681 1,149 
Leasehold improvements2,083 2,088 
Total property and equipment1,497,334 1,597,384 
Accumulated depreciation(936,963)(925,228)
Total property and equipment, net$560,371 $672,156 
 
Amounts included in "second-generation satellite, on-ground spare" in the table above consist of costs related to one of the Company's second-generation satellites that was stored as an on-ground spare satellite until its launch in June 2022. The costs to prepare this satellite for launch were included in "construction in progress - space component" in the table above prior to its launch. During 2022, $66.7 million in costs associated with the construction and launch of this spare satellite (including capitalized interest) were placed into service. Since this satellite is expected to remain as an in-orbit spare and will only be raised to its operational orbit at a future date if needed, it was placed into service following its successful launch.

In February 2022, the Company entered into an agreement with an initial contract price of $327 million for the purchase of new satellites that will replenish the Company's existing satellite constellation. As of December 31, 2022, the Company recorded $11.5 million as prepaid satellite construction costs associated with the upfront milestone payment due upon signing and $98.5 million in construction in progress on its consolidated balance sheet.

The ground component of construction in progress includes costs incurred for assets to upgrade the Company's ground infrastructure, including costs associated with the procurement of new gateway antennas. During 2022, the Company placed $28.9 million of costs into service associated with these antennas (including capitalized interest), which are included in ground component in the table above. These capital expenditures relate primarily to gateway upgrade work in connection with the Service Agreements.

As discussed in Note 1: Summary of Significant Accounting Policies and Note 8: Fair Value Measurements, the Company evaluated the recoverability of its second-generation Duplex assets in September 2022. This evaluation resulted in the removal of the second-generation Duplex assets from the Company's long-lived asset grouping. The reduction in value of long-lived assets recorded during the third quarter of 2022 totaled $161.2 million. The table below reflects the reduction in value of long-lived assets by each component of Property and equipment, net, and Intangible and other assets, net, previously recorded on the Company's consolidated balance sheets (amounts in thousands, reflected net of accumulated depreciation and amortization, as applicable, prior to their write downs).
Three months ended September 30, 2022
Property and equipment, net
Ground component$154,144 
Construction in progress: ground component5,545 
Equipment202 
Total property and equipment, net$159,891 
Intangible and other assets, net$1,271 
Total reduction in value of long-lived assets$161,162 
 
Capitalized Interest and Depreciation Expense
 
The following table summarizes capitalized interest for the periods indicated below (in thousands):  
 Year Ended December 31,
 202220212020
Interest cost eligible to be capitalized$45,609 $47,580 $50,721 
Interest cost recorded in interest income (expense), net(29,836)(43,325)(48,064)
Net interest capitalized$15,773 $4,255 $2,657 
 
The following table summarizes depreciation expense for the periods indicated below (in thousands): 
 Year Ended December 31,
 202220212020
Depreciation Expense$85,475 $84,225 $84,853 
 
The following table summarizes amortization expense for the periods indicated below (in thousands):
 Year Ended December 31,
 202220212020
Amortization Expense$8,409 $12,012 $11,962 

Geographic Location of Property and Equipment

Long-lived assets consist primarily of property and equipment and are attributed to various countries based on the physical location of the asset, except for the Company’s satellites which are included in the long-lived assets of the United States. The Company’s information by geographic area is as follows (in thousands):    
 Year Ended December 31,
 20222021
Property and equipment:  
United States$519,752 $621,474 
Central and South America15,224 22,981 
Canada2,582 13,921 
Africa11,507 5,471 
Europe2,393 5,136 
Asia4,410 2,752 
Australia4,503 421 
Total property and equipment$560,371 $672,156