| 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) | | 2024 | | 2023 | | | | | | | | | | (In thousands) | Equipment leased to customers | | 2 | | - | | 5 | | $ | 1,845,064 | | $ | 1,977,450 | Satellites (1) | | 5 | | - | | 15 | | | 3,876,501 | | | 4,168,766 | Satellites acquired under finance lease agreements | | | | 15 | | | | | 698,978 | | | 712,832 | Furniture, fixtures, equipment and other | | 1 | | - | | 20 | | | 1,689,817 | | | 1,691,389 | 5G Network Deployment equipment (2) | | 3 | | - | | 15 | | | 4,650,124 | | | 4,263,327 | Software and computer equipment | | 2 | | - | | 6 | | | 2,693,648 | | | 2,503,597 | Buildings and improvements (3) | | 1 | | - | | 40 | | | 511,861 | | | 538,815 | Land (3) | | | | - | | | | | 42,891 | | | 46,675 | Construction in progress | | | | - | | | | | 1,874,303 | | | 1,844,338 | Total property and equipment | | | | | | | | | 17,883,187 | | | 17,747,189 | Accumulated depreciation | | | | | | | | | (8,455,995) | | | (8,185,355) | Property and equipment, net | | | | | | | | $ | 9,427,192 | | $ | 9,561,834 | | | | | | | | | | | | | |
| (1) | The Spaceway 3 satellite was deorbited in January 2024. |
| (2) | Includes 5G Network Deployment assets acquired under finance lease agreements. |
| (3) | This decrease resulted from the sale of certain assets to CONX Corp., which closed May 1, 2024. See Note 13 for further information. |
Depreciation and amortization expense consisted of the following: | | | | | | | | | | | | | | | For the Three Months Ended | | For the Six Months Ended | | | June 30, | | June 30, | | | 2024 | | 2023 | | 2024 | | 2023 | | | | (In thousands) | Equipment leased to customers | | $ | 59,178 | | $ | 87,210 | | $ | 130,945 | | $ | 176,100 | Satellites | | | 75,323 | | | 64,863 | | | 150,901 | | | 131,067 | Buildings, furniture, fixtures, equipment and other | | | 47,707 | | | 26,231 | | | 75,420 | | | 50,478 | 5G Network Deployment equipment | | | 179,473 | | | 75,730 | | | 346,294 | | | 136,881 | Software and computer equipment | | | 95,866 | | | 62,221 | | | 184,553 | | | 114,979 | Intangible assets and other amortization expense | | | 49,978 | | | 54,378 | | | 104,812 | | | 108,882 | Total depreciation and amortization | | $ | 507,525 | | $ | 370,633 | | $ | 992,925 | | $ | 718,387 |
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, and amortization of development costs of externally marketed software. Activity relating to our asset retirement obligations was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended | | For the Six Months Ended | | | June 30, | | June 30, | | | 2024 | | 2023 | | 2024 | | 2023 | | | | (In thousands) | Balance at beginning of period | | $ | 289,059 | | $ | 218,795 | | $ | 278,287 | | $ | 183,135 | Liabilities incurred | | | 4,651 | | | 22,797 | | | 8,959 | | | 54,351 | Accretion expense | | | 6,765 | | | 5,064 | | | 13,229 | | | 9,170 | Revision to estimated cash flows | | | — | | | — | | | — | | | — | Balance at end of period | | $ | 300,475 | | $ | 246,656 | | $ | 300,475 | | $ | 246,656 | | | | | | | | | | | | | | Total included in Other long-term liabilities | | $ | 300,475 | | $ | 246,656 | | $ | 300,475 | | $ | 246,656 |
The corresponding assets, net of accumulated depreciation, related to asset retirement obligations were $215 million and $217 million as of June 30, 2024 and December 31, 2023, respectively. Satellites Pay-TV Segment Our Pay-TV segment currently utilizes nine 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 two satellites from third parties: Anik F3, which is accounted for as an operating lease, and Nimiq 5, which is accounted for as a finance lease and is depreciated over its economic life. As of June 30, 2024, our Pay-TV segment satellite fleet in service 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 | Nimiq 5 | | September 2009 | | 72.7 | | September 2024 |
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. During the fourth quarter of 2023, we entered into an agreement with Space Exploration Technologies Corp (“SpaceX”) for launch services for this satellite, which is expected to be launched during 2026. Satellites - Broadband and Satellite Services Segment Our Broadband and Satellite Services segment currently utilizes nine satellites in geostationary orbit approximately 22,300 miles above the equator, six of which we own and depreciate over their estimated useful life. We also lease three satellites from third parties, which are accounted for as finance leases and are depreciated over their economic life. As of June 30, 2024, our Broadband and Satellite Services segment satellite fleet in service consisted of the following: | | | | | | | | | | | Degree | | Lease | | | Launch | | Orbital | | Termination | Satellites | | Date | | Location | | Date | Owned: | | | | | | | EchoStar IX | | August 2003 | | 121 | | N/A | EchoStar XVII | | July 2012 | | 107 | | N/A | EchoStar XIX | | December 2016 | | 97.1 | | N/A | EchoStar XXI | | June 2017 | | 10.25 | | N/A | Al Yah 3 | | January 2018 | | 20 | | N/A | EchoStar XXIV | | July 2023 | | 95.2 | | N/A | | | | | | | | Leased from Other Third-Party: | | | | | | | Eutelsat 65 West A | | March 2016 | | 65 | | July 2031 | Telesat T19V | | July 2018 | | 63 | | August 2033 | EchoStar 105/SES-11 | | October 2017 | | 105 | | November 2028 |
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