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Property and Equipment | 12 Months Ended
--- | ---
Dec. 31, 2023
Property, Plant and Equipment [Abstract] |
Property And Equipment | 5. PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands):
| As of December 31,
| 2023 |  | 2022
Globalstar System: |  |  |
Space component | $ | 1,230,975 |  |  | $ | 1,246,343 |
Ground component | 106,757 |  |  | 102,567 |
Construction in progress: |  |  |
Space component | 240,732 |  |  | 110,068 |
Ground component | 6,814 |  |  | 5,316 |
Other | 9,574 |  |  | 9,167 |
Total Globalstar System | 1,594,852 |  |  | 1,473,461 |
Internally developed and purchased software | 23,310 |  |  | 22,509 |
Equipment | 11,905 |  |  | 8,042 |
Land and buildings | 2,677 |  |  | 1,681 |
Leasehold improvements | 2,147 |  |  | 2,083 |
Total property and equipment | 1,634,891 |  |  | 1,507,776 |
Accumulated depreciation | (1,010,889) |  |  | (947,405) |
Total property and equipment, net | $ | 624,002 |  |  | $ | 560,371 |
In 2022, the Company entered into an agreement with MDA for the purchase of new satellites that will replenish the Company's HIBLEO-4 U.S.-licensed system. In 2023, the Company entered into an agreement with SpaceX providing for the launch of the first set of satellites under the agreement with MDA. Refer to Note 10: Commitments and Contingencies for further discussion of these agreements. The table below reflects the amounts recorded on the Company's consolidated balance sheet (amounts in thousands).
|  | As of December 31,
|  | 2023 |  | 2022
Satellite Procurement Agreement |  |  |  |
Construction in progress |  | $ | 198,884 |  |  | $ | 98,491 |
Vendor financing liability |  | — |  |  | 59,575 |
Accrued construction costs |  | 55,627 |  |  | 36,386 |
Prepaid construction costs |  | 6,683 |  |  | 11,470 |
Launch Services Agreement |  |  |  |
Construction in progress |  | $ | 6,400 |  |  | $ | — |
Accrued construction costs |  | 2,560 |  |  | — |
Prepaid construction costs |  | 5,760 |  |  | — |
Construction in progress costs are recorded in the "space component" of construction in progress in the table above. These costs include milestones completed under the Satellite Procurement Agreement and Launch Services Agreement as well as associated personnel costs and capitalized interest. Accrued construction costs reflect work completed, but not yet invoiced under the agreements. Prepaid construction costs reflect costs for milestone payments not yet completed and are recorded in Prepaid satellite costs and customer receivable on the Company's consolidated balance sheets. 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 and gateway upgrade work in connection with the Service Agreements. Capitalized Interest and Depreciation Expense The following table summarizes capitalized interest for the periods indicated below (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Interest cost eligible to be capitalized | $ | 39,143 |  |  | $ | 45,609 |  |  | $ | 47,580 |
Interest cost recorded in interest income (expense), net | (15,271) |  |  | (29,836) |  |  | (43,325) |
Net interest capitalized | $ | 23,872 |  |  | $ | 15,773 |  |  | $ | 4,255 |
The following table summarizes depreciation expense for the periods indicated below (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Depreciation Expense | $ | 87,213 |  |  | $ | 85,475 |  |  | $ | 84,225 |
The following table summarizes amortization expense for the periods indicated below (in thousands):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Amortization Expense | $ | 978 |  |  | $ | 8,409 |  |  | $ | 12,012 |
During 2022, the Company wrote down the value of certain second-generation ground assets, including intangible assets. Accordingly the amortization expense decreased during 2023 associated with these assets. 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,
| 2023 |  | 2022
Property and equipment: |  |  |
North America | $ | 581,535 |  |  | $ | 524,880 |
Central and South America | 16,122 |  |  | 12,678 |
Africa | 12,379 |  |  | 11,507 |
Asia Pacific | 11,411 |  |  | 8,913 |
Europe | 2,555 |  |  | 2,393 |
Total property and equipment | $ | 624,002 |  |  | $ | 560,371 |

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