| Property and Equipment and Intangible Assets |
7.Property and Equipment and Intangible Assets Property and Equipment Property and equipment consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | Depreciable | | As of | | | | Life | | June 30, | | December 31, | | | | (In Years) | | 2023 | | 2022 | | | | | | | | | (In thousands) | | Equipment leased to customers | | 2 | - | 5 | | $ | 1,270,401 | | $ | 1,318,272 | | Satellites | | 4 | - | 15 | | | 1,718,865 | | | 1,718,865 | | Satellites acquired under finance lease agreements | | | 15 | | | | 344,447 | | | 344,447 | | Furniture, fixtures, equipment and other | | 2 | - | 20 | | | 1,219,583 | | | 1,215,496 | | 5G Network Deployment equipment (1) | | 3 | - | 15 | | | 2,027,545 | | | 770,153 | | Software | | 3 | - | 6 | | | 1,485,225 | | | 1,354,656 | | Buildings and improvements | | 5 | - | 40 | | | 382,058 | | | 380,519 | | Land | | | - | | | | 17,513 | | | 17,513 | | Construction in progress | | | - | | | | 3,436,687 | | | 3,170,623 | | Total property and equipment | | | | | | | 11,902,324 | | | 10,290,544 | | Accumulated depreciation | | | | | | | (4,963,710) | | | (4,650,425) | | Property and equipment, net | | | | | | $ | 6,938,614 | | $ | 5,640,119 | | | | | | | | | | | | | |
| (1) | Includes 5G Network Deployment assets acquired under finance lease agreements. |
Depreciation and amortization expense consisted of the following: | | | | | | | | | | | | | | | | For the Three Months Ended | | For the Six Months Ended | | | | June 30, | | June 30, | | | | 2023 | | 2022 | | 2023 | | 2022 | | | | | (In thousands) | | Equipment leased to customers | | $ | 44,891 | | $ | 49,757 | | $ | 91,607 | | $ | 101,030 | | Satellites | | | 32,955 | | | 36,081 | | | 69,037 | | | 75,887 | | Buildings, furniture, fixtures, equipment and other | | | 14,579 | | | 9,798 | | | 27,319 | | | 24,375 | | 5G Network Deployment equipment | | | 75,729 | | | 4,621 | | | 136,881 | | | 8,324 | | Software | | | 52,634 | | | 32,914 | | | 95,976 | | | 62,749 | | Intangible assets | | | 45,222 | | | 35,052 | | | 90,887 | | | 72,199 | | Total depreciation and amortization | | $ | 266,010 | | $ | 168,223 | | $ | 511,707 | | $ | 344,564 | | | | | | | | | | | | | | | |
Cost of sales and operating expense categories included in our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation and amortization expense related to satellites, equipment leased to customers, or our 5G Network Deployment equipment and software. Satellites Pay-TV Satellites. We currently utilize ten satellites in geostationary orbit approximately 22,300 miles above the equator, seven of which we own and depreciate over their estimated useful life. We also lease three satellites from third parties: Ciel II and Anik F3, which are accounted for as operating leases, and Nimiq 5, which is accounted for as a finance lease and is depreciated over its economic life. As of June 30, 2023, our pay-TV satellite fleet consisted of the following: | | | | | | | | | | | | Degree | | Lease | | | | Launch | | Orbital | | Termination | | Satellites | | Date | | Location | | Date | | Owned: | | | | | | | | EchoStar X | | February 2006 | | 110 | | N/A | | EchoStar XI | | July 2008 | | 110 | | N/A | | EchoStar XIV | | March 2010 | | 119 | | N/A | | EchoStar XV | | July 2010 | | 61.5 | | N/A | | EchoStar XVI | | November 2012 | | 61.5 | | N/A | | EchoStar XVIII | | June 2016 | | 61.5 | | N/A | | EchoStar XXIII | | March 2017 | | 110 | | N/A | | | | | | | | | | Under Construction: | | | | | | | | EchoStar XXV | | 2026 | | 110 | | N/A | | | | | | | | | | Leased from Other Third-Party: | | | | | | | | Anik F3 | | April 2007 | | 118.7 | | April 2025 | | Ciel II (1) | | December 2008 | | 129 | | July 2023 | | Nimiq 5 | | September 2009 | | 72.7 | | September 2024 | | | | | | | | | |
| (1) | We no longer lease this satellite. |
Satellite Under Construction EchoStar XXV. On March 20, 2023, we entered into a contract with Maxar Space LLC for the construction of EchoStar XXV, a DBS satellite that is capable of providing service to the continental United States (“CONUS”) and is intended to be used at the 110 degree orbital location. This satellite is expected to be launched during 2026.
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