Property and Equipment and Intangible Assets

6 Months Ended

Jun. 30, 2025

Property and Equipment and Intangible Assets

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)				2025			2024

						(In thousands)
Equipment leased to customers		2	-	5		$	1,700,328		$	1,784,801
Satellites		5	-	15			3,865,200			3,872,664
Satellites acquired under finance lease agreements			15				356,275			344,972
Furniture, fixtures, equipment and other		1	-	20			1,690,032			1,686,992
5G Network equipment (1)		3	-	15			5,672,959			5,382,706
Software and computer equipment		1	-	8			2,390,532			2,216,007
Buildings and improvements		1	-	40			517,014			513,419
Land			-				43,000			42,842
Construction in progress			-				1,535,975			1,570,275
Total property and equipment							17,771,315			17,414,678
Accumulated depreciation							(8,997,659)			(8,227,546)
Property and equipment, net (2)						$	8,773,656		$	9,187,132

(1)	Includes 5G Network assets acquired under finance lease agreements.

(2)	As of June 30, 2025 and December 31, 2024, there were no refunds and other receipts of purchases of property and equipment.

Depreciation and amortization expense consisted of the following:


		For the Three Months Ended						For the Six Months Ended
		June 30,						June 30,
		2025			2024			2025			2024

		(In thousands)
Equipment leased to customers		$	57,810		$	59,178		$	121,022		$	130,945
Satellites			64,283			75,323			130,263			150,901
Buildings, furniture, fixtures, equipment and other			32,098			47,707			61,271			75,420
5G Network equipment			216,782			179,473			424,914			346,294
Software and computer equipment			108,187			95,866			216,160			184,553
Intangible assets and other amortization expense			13,895			49,978			27,758			104,812
Total depreciation and amortization		$	493,055		$	507,525		$	981,388		$	992,925

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 equipment and software, and amortization of development costs of externally marketed software.

Activity relating to our asset retirement obligations, included in “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets, was as follows:


		For the Three Months Ended						For the Six Months Ended
		June 30,						June 30,
		2025			2024			2025			2024

		(In thousands)
Balance, beginning of period		$	338,506		$	289,059		$	327,031		$	278,287
Liabilities incurred			1,188			4,651			4,885			8,959
Accretion expense			8,026			6,765			15,804			13,229
Balance, end of period		$	347,720		$	300,475		$	347,720		$	300,475

The corresponding assets, net of accumulated depreciation, related to asset retirement obligations were $209 million and $216 million as of June 30, 2025 and December 31, 2024, respectively.

Satellites Pay-TV Segment

Our Pay-TV segment currently utilizes eight satellites in geosynchronous orbit approximately 22,300 miles above the equator, seven of which we own and depreciate over their estimated useful life. We also lease one satellite from a third party, Nimiq 5, which is accounted for as an operating lease.

As of June 30, 2025, our Pay-TV segment 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 (1)		July 2010		119		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
EchoStar XXVI		2028		119		N/A

Leased from Other Third-Party:
Nimiq 5		September 2009		72.7		October 2029

(1)	During April 2025, the EchoStar XV satellite began the process of relocating from the 61.5 degree orbital location to the 119 degree orbital location. The relocation process was completed in July 2025.

As of April 2025, we no longer lease the Anik F3 satellite.

Satellites 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.

EchoStar XXVI. On May 15, 2025, we entered into a contract with Maxar Space LLC for the construction of EchoStar XXVI, a DBS satellite that is capable of providing service to the CONUS and is intended to be used at the 119 degree orbital location. EchoStar XXVI is expected to be launched during 2028.

Satellites - Broadband and Satellite Services Segment

Our Broadband and Satellite Services segment currently utilizes seven satellites in geosynchronous orbit approximately 22,300 miles above the equator, four 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, 2025, our Broadband and Satellite Services segment satellite fleet consisted of the following:


				Degree		Lease
		Launch		Orbital		Termination
Satellites		Date		Location		Date
Owned:
EchoStar XVII		July 2012		107		N/A
EchoStar XIX		December 2016		97.1		N/A
EchoStar XXI		June 2017		10.25		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 2030

In addition to the satellites listed above, during 2025 we have launched and will continue to launch, certain low earth orbit satellites in connection with additional business opportunities.

As of June 2025, all commercial traffic on the Al Yah 3 satellite had been transferred to other satellites in our fleet and the Al Yah 3 satellite is no longer operational and is no longer in service.

In addition, all commercial traffic on the EchoStar IX satellite has been transferred to other satellites in our fleet and the EchoStar IX satellite is no longer in service. During the second quarter of 2025, we began the disposal process for the EchoStar IX satellite and the disposal process is expected to be completed in the third quarter of 2025.