PROPERTY AND EQUIPMENT (Tables)

The following table presents the components of Property and equipment, net:


	As of
	June 30, 2023		December 31, 2022
Property and equipment, net:
Satellites, net	$	1,514,141	$	1,563,033
Other property and equipment, net	654,235		674,584
Total property and equipment, net	$	2,168,376	$	2,237,617

The following table presents the components of our satellites, net:


	Depreciable Life (In Years)	As of
		June 30, 2023		December 31, 2022
Satellites, net:
Satellites - owned	5 to 15	$	1,807,036	$	1,808,924
Satellites - acquired under finance leases	15	368,876		360,642
Construction in progress	—	618,727		608,773
Total satellites		2,794,639		2,778,339
Accumulated depreciation:
Satellites - owned		(1,142,989)		(1,093,412)
Satellites - acquired under finance leases		(137,509)		(121,894)
Total accumulated depreciation		(1,280,498)		(1,215,306)
Total satellites, net		$	1,514,141	$	1,563,033

The following table presents the depreciation expense associated with our satellites, net:


	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Depreciation expense:
Satellites - owned	$	25,807	$	24,282	$	49,911	$	48,478
Satellites - acquired under finance leases	6,101		6,137		12,119		12,124
Total depreciation expense	$	31,908	$	30,419	$	62,030	$	60,602

The following table presents capitalized interest associated with our satellites and satellite-related ground infrastructure:


	For the three months ended June 30,				For the six months ended June 30,
	2023		2022		2023		2022
Capitalized interest	$	11,603	$	10,883	$	23,374	$	21,265

GEO Satellite

Segment

Launch Date

Nominal Degree Orbital Location (Longitude)

Depreciable Life (In Years)

Owned:

SPACEWAY 3 (1)

Hughes

August 2007

95 W

EchoStar XVII

Hughes

July 2012

107 W

EchoStar XIX

Hughes

December 2016

97.1 W

Al Yah 3 (“AY3”) (2)

Hughes

January 2018

20 W

EchoStar IX (3) (4)

ESS

August 2003

121 W

EUTELSAT 10A (“W2A”) (5)

Corporate and Other

April 2009

10 E

EchoStar XXI

Corporate and Other

June 2017

10.25 E

Finance leases:

Eutelsat 65 West A

Hughes

March 2016

65 W

Telesat T19V

Hughes

July 2018

63 W

EchoStar 105/SES-11

ESS

October 2017

105 W

(1) Depreciable life represents the remaining useful life as of June 8, 2011, the date EchoStar completed the acquisition of Hughes Communications, Inc. (“Hughes Communications”) and its subsidiaries in 2011 (the “Hughes Acquisition”).

(2) Upon consummation of our joint venture with Al Yah Satellite Communications Company PrJSC (“Yahsat”) in Brazil in November 2019, we acquired the Brazilian Ka-band payload on this satellite with a remaining useful life of 7 years as of that time. In the second quarter of 2023 we reduced the estimated useful life of the satellite as a result of certain technical anomalies. In order to safeguard the future operability of the satellite, the Company has, in conjunction with recommendations from the satellite manufacturers, implemented immediate and long-term remedial actions. A revised estimate of the satellite’s remaining lifetime has been calculated using operational data of two previous quarters. The Company has updated the remaining useful life of AY3 and related ground assets prospectively from April 1, 2023 to reflect the change in estimate. This has increased the depreciation expense for the current six month period by $3.7 million. The increase is expected to be $11.1 million for the full year 2023 and $12.8 million for the year 2024, respectively. Although the anomalies are expected to shorten the remaining useful life of the satellite, they have not affected its current operation.

(3) We own the Ka-band and Ku-band payloads on this satellite.

(4) The Company placed the satellite in an inclined-orbit in the first quarter of 2023. Inclined-orbit will extend its life to enable further revenue generating opportunities.