Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 25, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-39144 | |
Entity Registrant Name | DISH Network Corporation | |
Entity Tax Identification Number | 88-0336997 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 9601 South Meridian Boulevard | |
Entity Address, City or Town | Englewood | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112 | |
City Area Code | 303 | |
Local Phone Number | 723-1000 | |
Title of 12(b) Security | Class A common stock, $0.01 par value | |
Trading Symbol | DISH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001001082 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 290,357,069 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 238,435,208 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 2,280,278 | $ 3,370,092 |
Marketable investment securities | 2,967,545 | 362,953 |
Trade accounts receivable, net of allowance for credit losses of $47,981 and $72,278, respectively | 1,002,052 | 1,104,202 |
Inventory | 470,826 | 380,349 |
Other current assets | 557,836 | 1,804,562 |
Total current assets | 7,278,537 | 7,022,158 |
Noncurrent Assets: | ||
Restricted cash, cash equivalents and marketable investment securities | 105,038 | 108,369 |
Property and equipment, net | 2,733,802 | 2,182,333 |
FCC authorizations | 28,414,493 | 26,903,939 |
Other investment securities | 155,034 | 149,706 |
Operating lease assets | 853,140 | 104,271 |
Other noncurrent assets, net | 967,643 | 1,009,045 |
Intangible assets, net | 706,550 | 760,126 |
Total noncurrent assets | 33,935,700 | 31,217,789 |
Total assets | 41,214,237 | 38,239,947 |
Current Liabilities: | ||
Trade accounts payable | 693,184 | 395,397 |
Deferred revenue and other | 746,615 | 855,718 |
Accrued programming | 1,346,906 | 1,388,407 |
Accrued interest | 173,606 | 264,118 |
Other accrued expenses | 1,282,904 | 1,095,486 |
Current portion of long-term debt and finance lease obligations | 2,066,129 | 2,085,620 |
Total current liabilities | 6,309,344 | 6,084,746 |
Long-Term Obligations, Net of Current Portion: | ||
Long-term debt and finance lease obligations, net of current portion (Note 10) | 14,138,060 | 13,616,408 |
Deferred tax liabilities | 4,142,341 | 3,869,570 |
Operating lease liabilities | 818,931 | 63,526 |
Long-term deferred revenue and other long-term liabilities | 467,408 | 474,404 |
Total long-term obligations, net of current portion | 19,566,740 | 18,023,908 |
Total liabilities | 25,876,084 | 24,108,654 |
Commitments and Contingencies (Note 11) | ||
Redeemable noncontrolling interests (Note 2) | 382,301 | 350,648 |
Stockholders' Equity (Deficit): | ||
Additional paid-in capital | 4,715,015 | 5,400,774 |
Accumulated other comprehensive income (loss) | 1,204 | (855) |
Accumulated earnings (deficit) | 10,233,288 | 8,374,975 |
Total DISH Network stockholders' equity (deficit) | 14,954,794 | 13,780,155 |
Noncontrolling interests | 1,058 | 490 |
Total stockholders' equity (deficit) | 14,955,852 | 13,780,645 |
Total liabilities and stockholders' equity (deficit) | 41,214,237 | 38,239,947 |
Class A common stock | ||
Stockholders' Equity (Deficit): | ||
Common stock | 2,903 | 2,877 |
Class B common stock | ||
Stockholders' Equity (Deficit): | ||
Common stock | $ 2,384 | $ 2,384 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Allowance for doubtful accounts on trade accounts receivable | $ 47,981 | $ 72,278 |
Common stock par value (in dollars per share) | $ 86.08 | |
Class A common stock | ||
Current Assets: | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued | 290,338,416 | 287,720,957 |
Common stock, shares outstanding | 290,338,416 | 287,720,957 |
Class B common stock | ||
Current Assets: | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, shares issued | 238,435,208 | 238,435,208 |
Common stock, shares outstanding | 238,435,208 | 238,435,208 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue: | ||||
Total revenue | $ 4,449,635 | $ 4,531,591 | $ 13,434,448 | $ 10,936,070 |
Costs and Expenses (exclusive of depreciation): | ||||
Cost of services | 2,567,210 | 2,488,969 | 7,641,029 | 6,505,116 |
Cost of sales - equipment and other | 380,710 | 515,643 | 1,154,020 | 586,672 |
Selling, general and administrative expenses | 606,719 | 516,648 | 1,596,314 | 1,376,861 |
Impairment of long-lived assets (Note 2) | 356,418 | |||
Depreciation and amortization | 177,291 | 199,083 | 554,066 | 518,027 |
Total costs and expenses | 3,731,930 | 3,720,343 | 10,945,429 | 9,343,094 |
Operating income (loss) | 717,705 | 811,248 | 2,489,019 | 1,592,976 |
Other Income (Expense): | ||||
Interest income | 2,207 | 1,647 | 7,463 | 21,440 |
Interest expense, net of amounts capitalized | (4,203) | 6,778 | (11,901) | (20,322) |
Other, net | 31,069 | (13,200) | 18,598 | (11,592) |
Total other income (expense) | 29,073 | (4,775) | 14,160 | (10,474) |
Income (loss) before income taxes | 746,778 | 806,473 | 2,503,179 | 1,582,502 |
Income tax (provision) benefit, net | (179,258) | (273,514) | (612,645) | (469,864) |
Net income (loss) | 567,520 | 532,959 | 1,890,534 | 1,112,638 |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | 10,478 | 28,360 | 32,221 | 82,597 |
Net income (loss) attributable to DISH Network | $ 557,042 | $ 504,599 | $ 1,858,313 | $ 1,030,041 |
Weighted-average common shares outstanding - Class A and B common stock: | ||||
Basic (in shares) | 528,229 | 525,532 | 527,503 | 524,329 |
Diluted (in shares) | 636,440 | 583,957 | 635,218 | 582,595 |
Earnings per share - Class A and B common stock: | ||||
Basic net income (loss) per share attributable to DISH Network (in dollars per share) | $ 1.05 | $ 0.96 | $ 3.52 | $ 1.96 |
Diluted net income (loss) per share attributable to DISH Network (in dollars per share) | $ 0.88 | $ 0.86 | $ 2.93 | $ 1.77 |
Comprehensive Income (Loss): | ||||
Net income (loss) | $ 567,520 | $ 532,959 | $ 1,890,534 | $ 1,112,638 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 674 | 1,411 | 2,894 | (1,735) |
Unrealized holding gains (losses) on available-for-sale debt securities | (80) | (21) | (101) | (62) |
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss) | (12) | 43 | (13) | (11) |
Deferred income tax (expense) benefit, net | (140) | (352) | (721) | 243 |
Total other comprehensive income (loss), net of tax | 442 | 1,081 | 2,059 | (1,565) |
Comprehensive income (loss) | 567,962 | 534,040 | 1,892,593 | 1,111,073 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 10,478 | 28,360 | 32,221 | 82,597 |
Comprehensive income (loss) attributable to DISH Network | 557,484 | 505,680 | 1,860,372 | 1,028,476 |
Service revenue | ||||
Revenue: | ||||
Total revenue | 4,213,235 | 4,222,145 | 12,677,130 | 10,537,999 |
Equipment sales and other revenue | ||||
Revenue: | ||||
Total revenue | $ 236,400 | $ 309,446 | $ 757,318 | $ 398,071 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Class A and B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Noncontrolling Interest | Redeemable Noncontrolling Interest | Total |
Balance at Dec. 31, 2019 | $ 5,230 | $ 4,947,007 | $ (18) | $ 6,612,302 | $ (449) | $ 552,075 | $ 11,564,072 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 395 | 395 | |||||
Employee Stock Purchase Plan | 3 | 5,127 | 5,130 | ||||
Non-cash, stock-based compensation | 16,418 | 16,418 | |||||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | (208) | (208) | |||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | 49 | 49 | |||||
Foreign currency translation | 375 | 375 | |||||
Net income (loss) attributable to noncontrolling interests | 263 | 25,912 | 263 | ||||
Net income (loss) attributable to DISH Network | 73,099 | 73,099 | |||||
Balance at Mar. 31, 2020 | 5,233 | 4,968,947 | 198 | 6,685,401 | (186) | 577,987 | 11,659,593 |
Balance at Dec. 31, 2019 | 5,230 | 4,947,007 | (18) | 6,612,302 | (449) | 552,075 | 11,564,072 |
Issuance of Class A common stock: | |||||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | 243 | ||||||
Foreign currency translation | (1,735) | ||||||
Net income (loss) attributable to DISH Network | 1,030,041 | ||||||
Balance at Sep. 30, 2020 | 5,259 | 5,045,237 | (1,583) | 7,642,343 | 257 | 633,949 | 12,691,513 |
Balance at Mar. 31, 2020 | 5,233 | 4,968,947 | 198 | 6,685,401 | (186) | 577,987 | 11,659,593 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 3 | (663) | (660) | ||||
Employee benefits | 8 | 28,293 | 28,301 | ||||
Employee Stock Purchase Plan | 2 | 4,209 | 4,211 | ||||
Non-cash, stock-based compensation | 18,393 | 18,393 | |||||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 113 | 113 | |||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | 546 | 546 | |||||
Foreign currency translation | (3,521) | (3,521) | |||||
Net income (loss) attributable to noncontrolling interests | 235 | 27,828 | 235 | ||||
Net income (loss) attributable to DISH Network | 452,343 | 452,343 | |||||
Other | (17) | (17) | |||||
Balance at Jun. 30, 2020 | 5,246 | 5,019,179 | (2,664) | 7,137,744 | 32 | 605,815 | 12,159,537 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 12 | 8,353 | 8,365 | ||||
Employee Stock Purchase Plan | 1 | 4,570 | 4,571 | ||||
Non-cash, stock-based compensation | 13,135 | 13,135 | |||||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 22 | 22 | |||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | (352) | (352) | |||||
Foreign currency translation | 1,411 | 1,411 | |||||
Net income (loss) attributable to noncontrolling interests | 225 | 28,134 | 225 | ||||
Net income (loss) attributable to DISH Network | 504,599 | 504,599 | |||||
Balance at Sep. 30, 2020 | 5,259 | 5,045,237 | (1,583) | 7,642,343 | 257 | 633,949 | 12,691,513 |
Issuance of Class A common stock: | |||||||
ASU 2014-09 cumulative catch-up adjustment | 8,374,975 | ||||||
Balance at Dec. 31, 2020 | 5,261 | 5,400,774 | (855) | 8,374,975 | 490 | 350,648 | 13,780,645 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 1 | 2,046 | 2,047 | ||||
Employee benefits | 9 | 30,294 | 30,303 | ||||
Employee Stock Purchase Plan | 2 | 4,341 | 4,343 | ||||
Non-cash, stock-based compensation | 19,375 | 19,375 | |||||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | (5) | (5) | |||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | (498) | (498) | |||||
Foreign currency translation | 1,842 | 1,842 | |||||
Initial equity component of our 0% convertibles due 2025, net of deferred taxes of $99,823 | ASU 2020-06 | (1,051,000) | ||||||
Convertible debt reclassed per ASU 2020-06, net of deferred taxes of $245,778 (Note 2) | ASU 2020-06 | (805,566) | (805,566) | |||||
Net income (loss) attributable to noncontrolling interests | 210 | 11,129 | 210 | ||||
Net income (loss) attributable to DISH Network | 630,224 | 630,224 | |||||
Balance at Mar. 31, 2021 | 5,273 | 4,651,264 | 484 | 9,005,199 | 700 | 361,777 | 13,662,920 |
Balance at Dec. 31, 2020 | 5,261 | 5,400,774 | (855) | 8,374,975 | 490 | 350,648 | 13,780,645 |
Issuance of Class A common stock: | |||||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | (721) | ||||||
Foreign currency translation | 2,894 | ||||||
Net income (loss) attributable to DISH Network | 1,858,313 | ||||||
Balance at Sep. 30, 2021 | 5,287 | 4,715,015 | 1,204 | 10,233,288 | 1,058 | 382,301 | 14,955,852 |
Balance at Mar. 31, 2021 | 5,273 | 4,651,264 | 484 | 9,005,199 | 700 | 361,777 | 13,662,920 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 4 | 14,425 | 14,429 | ||||
Employee Stock Purchase Plan | 1 | 4,273 | 4,274 | ||||
Non-cash, stock-based compensation | 546 | 546 | |||||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | (17) | (17) | |||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | (83) | (83) | |||||
Foreign currency translation | 378 | 378 | |||||
Net income (loss) attributable to noncontrolling interests | 198 | 10,206 | 198 | ||||
Net income (loss) attributable to DISH Network | 671,047 | 671,047 | |||||
Balance at Jun. 30, 2021 | 5,278 | 4,670,508 | 762 | 9,676,246 | 898 | 371,983 | 14,353,692 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 8 | 23,115 | 23,123 | ||||
Employee benefits | 18 | 18 | |||||
Employee Stock Purchase Plan | 1 | 4,631 | 4,632 | ||||
Non-cash, stock-based compensation | 16,743 | 16,743 | |||||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | (92) | (92) | |||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | (140) | (140) | |||||
Foreign currency translation | 674 | 674 | |||||
Net income (loss) attributable to noncontrolling interests | 160 | 10,318 | 160 | ||||
Net income (loss) attributable to DISH Network | 557,042 | 557,042 | |||||
Balance at Sep. 30, 2021 | $ 5,287 | $ 4,715,015 | $ 1,204 | $ 10,233,288 | $ 1,058 | $ 382,301 | 14,955,852 |
Issuance of Class A common stock: | |||||||
ASU 2014-09 cumulative catch-up adjustment | $ 10,233,288 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Tax Liabilities, Net, Noncurrent | $ 4,142,341 | $ 3,869,570 | |
ASU 2020-06 | |||
Deferred Tax Liabilities, Net, Noncurrent | $ 245,778 | $ 245,778 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 1,890,534 | $ 1,112,638 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation and amortization | 554,066 | 518,027 |
Impairment of long-lived assets (Note 2) | 356,418 | |
Realized and unrealized losses (gains) on investments and derivatives and other | 23,283 | 12,273 |
Non-cash, stock-based compensation | 36,664 | 47,946 |
Deferred tax expense (benefit) | 517,822 | 765,088 |
Changes in allowance for credit losses | (24,389) | 24,648 |
Change in long-term deferred revenue and other long-term liabilities | (13,446) | (240,302) |
Other, net | 36,028 | (3,828) |
Changes in current assets and current liabilities, net | 239,105 | 124,783 |
Net cash flows from operating activities | 3,259,667 | 2,717,691 |
Cash Flows From Investing Activities: | ||
Purchases of marketable investment securities | (3,894,347) | (1,549,857) |
Sales and maturities of marketable investment securities | 1,273,156 | 968,976 |
Purchases of property and equipment | (711,955) | (309,549) |
Capitalized interest related to FCC authorizations (Note 2) | (677,356) | (646,265) |
Refund of FCC authorization deposit (Note 11) | 337,490 | |
Purchases of FCC authorizations, including deposits | (317,190) | |
Boost Mobile Acquisition (Note 5) | (1,312,500) | |
Other, net | (163,921) | (14,108) |
Net cash flows from investing activities | (3,836,933) | (3,180,493) |
Cash Flows From Financing Activities: | ||
Repayment of long-term debt and finance lease obligations | (74,237) | (77,280) |
Redemption and repurchases of senior notes | (2,000,000) | (1,100,000) |
Proceeds from issuance of senior notes | 1,500,000 | 1,000,000 |
Early debt extinguishment costs | (3,368) | |
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan | 37,777 | 22,012 |
Debt issuance costs | (9,819) | (1,670) |
Other, net | 17,441 | 1 |
Net cash flows from financing activities | (532,206) | (156,937) |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | (1,109,472) | (619,739) |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 6) | 3,453,994 | 2,504,320 |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 6) | $ 2,344,522 | $ 1,884,581 |
Organization and Business Activ
Organization and Business Activities | 9 Months Ended |
Sep. 30, 2021 | |
Organization and Business Activities | |
Organization and Business Activities | 1. Organization and Business Activitie s Principal Business DISH Network Corporation is a holding company. Its subsidiaries (which together with DISH Network Corporation are referred to as “DISH Network,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context) operate primary business segments, Pay-TV and Wireless. Our Wireless business segment operates in Pay-TV We offer pay-TV services under the DISH brand and the SLING brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, FCC licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear streaming over-the-top (“ OTT ”) Internet-based domestic, international and Latino video programming services (“SLING TV”). As of September 30, 2021, we had 10.980 million Pay-TV subscribers in the United States, including 8.424 million DISH TV subscribers and 2.556 million SLING TV subscribers. Wireless – Retail Wireless We entered the retail wireless business in 2020 as a result of the Boost Mobile Acquisition and the Ting Mobile Acquisition and we expanded the business in 2021 through the Republic Wireless Acquisition (as defined below). See Note 5 for further information. We offer nationwide prepaid and postpaid retail wireless services to subscribers under our Boost Mobile, Ting Mobile and Republic Wireless brands, as well as a competitive portfolio of wireless devices. Prepaid wireless subscribers generally pay in advance for monthly access to wireless talk, text, and data services. wireless talk, text, and data services . We are currently operating our retail wireless business unit as a mobile virtual network operator (“MVNO”) while we build our 5G broadband network. (as defined below). Network Services Agreement (the “NSA”) with AT&T to provide us with network services. Under the NSA, we expect AT&T will become our primary network services provider. We acquired over from July 1, 2020, the Ting Mobile Acquisition from August 1, 2020 and the Republic Wireless Acquisition from May 1, 2021. million retail wireless subscribers. Wireless – 5G Network Deployment We have directly invested over $12 billion to acquire certain wireless spectrum licenses and related assets and made over $10 billion in non-controlling investments in certain entities, for a total of over $22 billion. The DISH Network Spectrum We have directly invested over $12 billion to acquire certain wireless spectrum licenses and related assets. These wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. We plan to commercialize our wireless spectrum licenses through the completion of the nation’s first cloud-native, Open Radio Access Network (“O-RAN”) based 5G network (our “5G Network Deployment”). To that end, we have undertaken several key steps including identifying markets to build out, making executive and management hires and entering into agreements with key vendors. For example, on November 16, 2020, we announced a long-term agreement with Crown Castle pursuant to which Crown Castle will lease us space on up to 20,000 communication towers. As part of the agreement, we will also receive certain fiber transport services and have the option to utilize Crown Castle for pre-construction services. We entered into a similar agreement with American Tower on March 15, 2021 and have also entered into agreements with a number of other tower providers. We have also entered into multiple long-term agreements with vendors including, among others, Amazon, Dell, Fujitsu, Palo Alto and VMware for cloud computing service, radios, software, network security, . We currently have over 35 markets under construction, including Las Vegas, Nevada, and also commenced the initial launch of consumer beta service in Las Vegas. Prior to starting our 5G Network Deployment, we notified the FCC in March 2017 that we planned to deploy a narrowband IoT network on certain of these wireless licenses, which we expected to complete by March 2020, with subsequent phases to be completed thereafter. In light of, among other things, certain developments related to the Sprint/T-Mobile merger, during the first quarter of 2020, we determined that the revision of certain of our build-out deadlines was probable and, therefore, we no longer intended to complete our narrowband IoT deployment. The FCC issued an Order effectuating the build-out deadline changes contemplated above on September 11, 2020. During the first quarter of 2020, we impaired certain assets that would not be utilized in our 5G Network Deployment, resulting in a $253 million non-cash impairment charge in “Impairment of long-lived assets” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We will need to make significant additional investments or partner with others to, among other things, complete our 5G Network Deployment and further commercialize, build-out and integrate these licenses and related assets and any additional acquired licenses and related assets, as well as to comply with regulations applicable to such licenses. Depending on the nature and scope of such activities, any such investments or partnerships could vary significantly. In addition, as we complete our 5G Network Deployment we will incur significant additional expenses and will have to make significant investments related to, among other things, research and development, wireless testing and wireless network infrastructure. We may also determine that additional wireless spectrum licenses may be required to complete our 5G Network Deployment and to compete with other wireless service providers. See Note 2 and Note 11 for further information. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses During 2015, through our wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), we initially made over $10 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, L.L.C. (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. 3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless and to SNR Wireless, respectively, which are recorded in “FCC authorizations” on our Condensed Consolidated Balance Sheets. Under the applicable accounting guidance in Accounting Standards Codification 810, Consolidation (“ASC 810”), Northstar Spectrum and SNR HoldCo are considered variable interest entities and, based on the characteristics of the structure of these entities and in accordance with the applicable accounting guidance, we consolidate these entities into our financial statements. See Note 2 for further information. The AWS-3 Licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. The Northstar Entities and/or the SNR Entities may need to raise significant additional capital in the future, which may be obtained from third party sources or from us, so that the Northstar Entities and the SNR Entities may commercialize, build-out and integrate these AWS-3 Licenses, comply with regulations applicable to such AWS-3 Licenses, and make any potential Northstar Re-Auction Payment and SNR Re-Auction Payment for the AWS-3 licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out and integration efforts, regulatory compliance, and potential Northstar Re-Auction Payment and SNR Re-Auction Payment, any loans, equity contributions or partnerships could vary significantly. There can be no assurance that we will be able to obtain a profitable return on our non-controlling investments in the Northstar Entities and the SNR Entities. See Note 11 for further information. Recent Developments Boost Mobile Acquisition Asset Purchase Agreement On July 26, 2019, we entered into an Asset Purchase Agreement (the “APA”) with T-Mobile and Sprint Corporation (“Sprint” and together with T-Mobile, the “Sellers” and given the consummation of the Sprint/T-Mobile merger, sometimes referred to as “NTM”) to acquire from NTM certain assets and liabilities associated with Sprint’s Boost Mobile and Sprint-branded prepaid mobile services businesses (the “Prepaid Business”) for an aggregate purchase price of $1.4 billion, as adjusted for specific categories of net working capital on the closing date (the “Boost Mobile Acquisition”). Effective July 1, 2020 (the “Closing Date”), upon the terms and subject to the conditions set forth in the APA and in accordance with the Final Judgment (as defined below), we and T-Mobile completed the Boost Mobile Acquisition. In connection with the Boost Mobile Acquisition and the consummation of the Sprint/T-Mobile merger, we, T-Mobile, Sprint, Deutsche Telekom AG (“DT”) and SoftBank Group Corporation (“SoftBank”) came to an agreement with the United States Department of Justice (the “DOJ”) on key terms and approval of the Transaction Agreements (as defined below) and our wireless service business and spectrum. On July 26, 2019, we, T-Mobile, Sprint, DT and SoftBank (collectively, the “Defendants”) entered into a Stipulation and Order (the “Stipulation and Order”) with the DOJ binding the Defendants to a Proposed Final Judgment (the “Proposed Final Judgment”) which memorialized the agreement between the DOJ and the Defendants. The Stipulation and Order and the Proposed Final Judgment were filed in the United States District Court for the District of Columbia (the “District Court”) on July 26, 2019 and on April 1, 2020, the Proposed Final Judgment was entered with the District Court (the Proposed Final Judgment as so entered with the District Court, the “Final Judgment”) and the Sellers consummated the Sprint/T-Mobile merger. The term of the Final Judgment is seven years from the date of its entry with the District Court or five years if the DOJ gives notice that the divestitures, build- outs and other requirements have been completed to its satisfaction. A Monitoring Trustee has been appointed by the District Court. The Monitoring Trustee has the power and authority to monitor the Defendants’ compliance with the Final Judgment and settle disputes among the Defendants regarding compliance with the provisions of the Final Judgment and may recommend action to the DOJ in the event a party fails to comply with the Final Judgment. See Note 5 for further information on the Stipulation and Order and the Final Judgment, including our build-out commitments. Also in connection with the closing of the Boost Mobile Acquisition, we and T-Mobile entered into a transition services agreement under which we will receive certain transitional services (the “TSA”), a master network services agreement for the provision of network services by T-Mobile to us (the “MNSA”), an option agreement entitling us to acquire certain decommissioned cell sites and retail stores of T-Mobile (the “Option Agreement”) and an agreement under which we would purchase all of Sprint’s 800 MHz spectrum licenses, totaling approximately 13.5 MHz of nationwide wireless spectrum for an additional approximately $3.59 billion (the “Spectrum Purchase Agreement” and together with the APA, the TSA, the MNSA and the Option Agreement, the “Transaction Agreements”). See Note 5 for further information on the Transaction Agreements. Ting Mobile Acquisition On August 1, 2020, we completed an asset purchase agreement with Tucows Inc. (“Tucows”) pursuant to which we purchased the assets of Ting Mobile, including over 200,000 Ting Mobile subscribers (the “Ting Mobile Acquisition”). In addition, we entered into a services agreement pursuant to which Tucows will act as a mobile virtual network enabler for certain of our retail wireless subscribers. The consideration for the Ting Mobile Acquisition is an earn-out provision and the fair value of the earn-out provision has been assigned to a customer relationship intangible that is recorded in , net.” The estimated fair value of the earn-out liability is recorded in “Other accrued expenses” and “Long-term deferred revenue and other long-term liabilities on our Condensed Consolidated Balance Sheets. See Note 5 for further information. Republic Wireless Acquisition On May 1, 2021, we completed an asset purchase agreement with Republic Wireless Inc. (“Republic Wireless”) pursuant to which we purchased certain assets and liabilities of Republic Wireless, including approximately 200,000 wireless subscribers (the “Republic Wireless Acquisition”). The consideration for the Republic Wireless Acquisition consisted of an upfront cash payment and an earn-out provision. T , net” The estimated fair value of the earn-out liability is recorded in “Other accrued expenses” and “Long-term deferred revenue and other long-term liabilities on our Condensed Consolidated Balance Sheets. We accounted for the Boost Mobile Acquisition, the Ting Mobile Acquisition and the Republic Wireless Acquisition as business combinations. The identifiable assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date and are consolidated into our financial statements. See Note 5 for further information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020. Certain prior period amounts have been reclassified to conform to the current period presentation. Principles of Consolidation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments and recorded at fair value with changes recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. Redeemable Noncontrolling Interests Northstar Wireless . Northstar Wireless is a wholly-owned subsidiary of Northstar Spectrum, which is an entity owned by Northstar Manager, LLC (“Northstar Manager”) and us. Under the applicable accounting guidance in ASC 810, Northstar Spectrum is considered a variable interest entity and, based on the characteristics of the structure of this entity and in accordance with the applicable accounting guidance, we consolidate Northstar Spectrum into our financial statements. The Northstar Operative Agreements, as amended, provide for, among other things, that Northstar Manager has the ability, but not the obligation, to require Northstar Spectrum to purchase Northstar Manager’s ownership interests in Northstar Spectrum (the “Northstar Put Right”) for a purchase price that equals its equity contribution to Northstar Spectrum plus a fixed annual rate of return. The First Northstar Put Window closed in the first quarter of 2021. The Second Northstar Put Window is currently open and expires on January 25, 2022. Northstar Purchase Agreement . On December 30, 2020, through our wholly owned subsidiary American II, we entered into a Purchase Agreement (the “Northstar Purchase Agreement”) with Northstar Manager and Northstar Spectrum, pursuant to which American II purchased In the Northstar Purchase Agreement, Northstar Manager waived its right to exercise the Northstar Put Right under the First Northstar Put Window. Northstar Manager retains its right to exercise the Northstar Put Right during the Second Northstar Put Window. In the event that the Northstar Put Right is exercised by Northstar Manager, the consummation of the sale will be subject to FCC approval. Northstar Spectrum does not have a call right with respect to Northstar Manager’s ownership interests in Northstar Spectrum. Although Northstar Manager is the sole manager of Northstar Spectrum, Northstar Manager’s ownership interest is considered temporary equity under the applicable accounting guidance and is thus recorded as part of “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. Northstar Manager’s ownership interest in Northstar Spectrum was initially accounted for at fair value. Subsequently, Northstar Manager’s ownership interest in Northstar Spectrum is increased by the fixed annual rate of return through “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The operating results of Northstar Spectrum attributable to Northstar Manager are recorded as “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 11 for further information. SNR Wireless . SNR Wireless is a wholly-owned subsidiary of SNR HoldCo, which is an entity owned by SNR Wireless Management, LLC (“SNR Management”) and us. Under the applicable accounting guidance in ASC 810, SNR HoldCo is considered a variable interest entity and, based on the characteristics of the structure of this entity and in accordance with the applicable accounting guidance, we consolidate SNR HoldCo into our financial statements. The SNR Operative Agreements, as amended, provide for, among other things, that SNR Management has the ability, but not the obligation, to require SNR HoldCo to purchase SNR Management’s ownership interests in SNR HoldCo (the “SNR Put Right”) for a purchase price that equals its equity contribution to SNR HoldCo plus a fixed annual rate of return. The First SNR Put Window closed in the first quarter of 2021 . The Second SNR Put Window is currently open and expires on January 25, 2022. In the event that the SNR Put Right is exercised by SNR Management, the consummation of the sale will be subject to FCC approval. SNR HoldCo does not have a call right with respect to SNR Management’s ownership interests in SNR HoldCo. Although SNR Management is the sole manager of SNR HoldCo, SNR Management’s ownership interest is considered temporary equity under the applicable accounting guidance and is thus recorded as part of “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. SNR Management’s ownership interest in SNR HoldCo was initially accounted for at fair value. Subsequently, SNR Management’s ownership interest in SNR HoldCo is increased by the fixed annual rate of return through “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The operating results of SNR HoldCo attributable to SNR Management are recorded as “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 11 for further information. As of September 30, 2021 and December 31, 2020, Northstar Manager’s ownership interest in Northstar Spectrum and SNR Management’s ownership interest in SNR HoldCo was $382 million and $351 million, respectively, recorded as “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for credit losses (including those related to our installment billing programs), self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, the fair value of our option to purchase T- Mobile’s 800 MHz spectrum, relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. Impairment of Long-Lived Assets We review our long-lived assets and identifiable finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For assets which are held and used in operations, the asset would be impaired if the carrying amount of the asset (or asset group) exceeded its undiscounted future net cash flows. Once an impairment is determined, the actual impairment recognized is the difference between the carrying amount and the fair value as estimated using one of the following approaches: income, cost and/or market. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The carrying amount of a long-lived asset or asset group is considered impaired when the anticipated undiscounted cash flows from such asset or asset group is less than its carrying amount. In that event, a loss is recorded in “Impairment of long-lived assets” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) based on the amount by which the carrying amount exceeds the fair value of the long-lived asset or asset group. Fair value, using the income approach, is determined primarily using a discounted cash flow model that uses the estimated cash flows associated with the asset or asset group under review, discounted at a rate commensurate with the risk involved. Fair value, utilizing the cost approach, is determined based on the replacement cost of the asset reduced for, among other things, depreciation and obsolescence. Fair value, utilizing the market approach, benchmarks the fair value against the carrying amount. DBS Satellites . We currently evaluate our DBS satellite fleet for impairment as one asset group whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. We do not believe any triggering event has occurred which would indicate impairment as of September 30, 2021 or December 31, 2020. We will continue to monitor the DBS satellite fleet for indicators of impairment, including monitoring the impact of the COVID-19 pandemic on all aspects of our business. AWS-4 Satellites. We historically evaluated our AWS-4 satellite fleet for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. In light of, among other things, certain developments related to the Sprint/T-Mobile merger, during the first quarter of 2020, we determined that revisions to the AWS-4 build-out deadlines were probable, which we determined to be a triggering event. Accordingly, we quantitatively assessed the value of the AWS-4 satellites (T1 and D1) and wrote down the fair value of the satellites to their estimated fair value of million non-cash impairment charge in “Impairment of long-lived assets” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Narrowband IoT network. As discussed in Note 11, in March 2017, we notified the FCC that we planned to deploy a narrowband IoT network. In October 2019, we paused work on the narrowband IoT deployment. In light of, among other things, certain developments related to the Sprint/T-Mobile merger, during the first quarter of 2020, we determined that the revision of certain of our build-out deadlines were probable. Based on this, we no longer intended to complete our narrowband IoT deployment, which we considered a triggering event. As such, during the first quarter of 2020, we reviewed the capitalized costs of equipment, labor and other assets related to the narrowband IoT deployment, including our operating lease assets, and impaired those items that would not be utilized in our ongoing 5G Network Deployment, resulting in a million non-cash impairment charge in “Impairment of long-lived assets” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Impairment of long-lived assets recorded during the nine months ended September 30, 2020 consisted of the following: For the Nine Months Ended September 30, 2020 (In thousands) T1 satellite $ 48,120 D1 satellite 55,000 Construction in progress related to narrowband IoT deployment 226,742 Operating lease assets related to narrowband IoT deployment 26,556 Impairment of long-lived assets $ 356,418 Capitalized Interest We capitalize interest associated with the acquisition or construction of certain assets, including, among other things, our wireless spectrum licenses, build-out costs associated with our 5G Network Deployment and satellites. Capitalization of interest begins when, among other things, steps are taken to prepare the asset for its intended use and ceases when the asset is ready for its intended use or when these activities are substantially suspended. We are currently preparing for the commercialization of our wireless spectrum licenses, and Northstar Wireless and SNR Wireless are also preparing for the commercialization of their AWS-3 Licenses. As a result, the interest expense related to the carrying amount of these wireless spectrum licenses is being capitalized. The qualifying assets for these wireless spectrum licenses exceeds the carrying value of our long-term debt and finance lease obligations, therefore materially all of our interest expense is being capitalized. Business Combinations When we acquire a business, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component using various valuation techniques, including the market approach, income approach and/or cost approach. The accounting standard for business combinations requires identifiable assets, liabilities, noncontrolling interests and goodwill acquired to be recorded at acquisition date fair values. Transaction costs related to the acquisition of the business are expensed as incurred. Costs associated with the issuance of debt associated with a business combination are capitalized and included as a yield adjustment to the underlying debt’s stated rate. Acquired intangible assets other than goodwill are amortized over their estimated useful lives unless the lives are determined to be indefinite. Amortization of these intangible assets in general are recognized on a straight-line basis over an average finite useful life primarily ranging from approximately one or in relation to the estimated discounted cash flows over the life of the intangible asset. See Note 5 for further information on the Boost Mobile Acquisition and Ting Mobile Acquisition. Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: ● Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ● Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and derivative financial instruments indexed to marketable investment securities; and ● Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of September 30, 2021 and December 31, 2020, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 6 for the fair value of our marketable investment securities and derivative instruments. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 10 for the fair value of our long-term debt. Convertible Long-Term Debt Historically, for embedded conversion features, we have valued and bifurcated the conversion option (the “equity component”) from the host debt instrument. The initial value of the equity component on the was recorded in “Additional paid-in capital” within “Stockholders’ Equity (Deficit)” on our Condensed Consolidated Balance Sheets with the offset recorded as the debt discount. In accordance with Debt – Debt with Conversion and Other Options and Derivatives and Hedging – Contracts in Entity’s Own Equity Additional paid-in capital Additional paid-in capital Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs in both our Pay-TV and Wireless segments, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the three months ended September 30, 2021 and 2020, we capitalized $98 million and $131 million, respectively, under these programs. The amortization expense related to these programs was $109 million and $43 million for the three months ended September 30, 2021 and 2020, respectively. During the nine months ended September 30, 2021 and 2020, we capitalized million for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021 and December 31, 2020, we had a total of Advertising Costs We recognize advertising expense when incurred as a component of selling, general and administrative expense. Advertising expenses totaled million for the three months ended September 30, 2021 and 2020, respectively. Advertising expenses totaled Research and Development Research and development costs are expensed as incurred and are included in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) . million for the three months ended September 30, 2021 and 2020, respectively. Research and development costs totaled $21 million and $17 million for the nine months ended September 30, 2021 and 2020, respectively. |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Basic and Diluted Net Income (Loss) Per Share | |
Basic and Diluted Net Income (Loss) Per Share | 3. Basic and Diluted Net Income (Loss) Per Share We present both basic earnings per share (“EPS”) and diluted EPS. Basic EPS excludes potential dilution and is computed by dividing “Net income (loss) attributable to DISH Network” by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock awards were exercised and if our Convertible Notes were converted. The potential dilution from stock awards is accounted for using the treasury stock method based on the average market value of our Class A common stock. The potential dilution from conversion of the Convertible Notes is accounted for using the if-converted method, which requires that all of the shares of our Class A common stock issuable upon conversion of the Convertible Notes will be included in the calculation of diluted EPS assuming conversion of the Convertible Notes at the beginning of the reporting period (or at time of issuance, if later). The following table presents EPS amounts for all periods and the basic and diluted weighted-average shares outstanding used in the calculation. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands, except per share amounts) Net income (loss) $ 567,520 $ 532,959 $ 1,890,534 $ 1,112,638 Less: Net income (loss) attributable to noncontrolling interests, net of tax 10,478 28,360 32,221 82,597 Net income (loss) attributable to DISH Network - Basic 557,042 504,599 1,858,313 1,030,041 Interest on dilutive Convertible Notes, net of tax (1) — — — — Net income (loss) attributable to DISH Network - Diluted $ 557,042 $ 504,599 $ 1,858,313 $ 1,030,041 Weighted-average common shares outstanding - Class A and B common stock: Basic 528,229 525,532 527,503 524,329 Dilutive impact of Convertible Notes (2) 107,016 58,192 107,016 58,192 Dilutive impact of stock awards outstanding 1,195 233 699 74 Diluted 636,440 583,957 635,218 582,595 Earnings per share - Class A and B common stock: Basic net income (loss) per share attributable to DISH Network $ 1.05 $ 0.96 $ 3.52 $ 1.96 Diluted net income (loss) per share attributable to DISH Network $ 0.88 $ 0.86 $ 2.93 $ 1.77 (1) For both the three and nine months ended September 30, 2021 and 2020, materially all of our interest expense was capitalized. See Note 2 for further information. (2) The increase resulted from the issuance of our 0% Convertible Notes due 2025 on December 21, 2020. Certain stock awards to acquire our Class A common stock are not included in the weighted-average common shares outstanding above, as their effect is anti-dilutive. In addition, vesting of performance/market based options and rights to acquire shares of our Class A common stock granted pursuant to our performance based stock incentive plans (“Restricted Performance Units”) are both contingent upon meeting certain goals, some of which are not yet probable of being achieved. Furthermore, the warrants that we issued to certain option counterparties in connection with the Convertible Notes due 2026 are only exercisable at their expiration if the market price per share of our Class A common stock is greater than the strike price of the warrants, which is approximately per share, subject to adjustments. As a consequence, the following are not included in the diluted EPS calculation. As of September 30, 2021 2020 (In thousands) Anti-dilutive stock awards 6,898 8,761 Performance/market based options (1) 15,425 5,317 Restricted Performance Units/Awards 1,402 1,787 Common stock warrants 46,029 46,029 Total 69,754 61,894 (1) The increase primarily resulted from the grant of the Ergen 2020 Performance Award during the fourth quarter of 2020 , as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020. |
Supplemental Data - Statements
Supplemental Data - Statements of Cash Flows | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Data - Statements of Cash Flows | |
Supplemental Data - Statements of Cash Flows | 4. Supplemental Data - Statements of Cash Flows The following table presents certain supplemental cash flow and other non-cash data. See Note 9 for supplemental cash flow and non-cash data related to leases. For the Nine Months Ended September 30, 2021 2020 (In thousands) Cash paid for interest (including capitalized interest) $ 679,047 $ 647,572 Cash received for interest 3,002 5,512 Cash paid for income taxes 79,528 22,939 Capitalized interest (1) 599,215 685,749 Employee benefits paid in Class A common stock 30,321 28,301 Convertible debt reclassified per ASU 2020-06 (1) 1,051,344 — Deferred taxes reclassified per ASU 2020-06 (1) 245,778 — Vendor financing 26,463 95,695 FCC licenses reclassification (2) 915,449 — Wireless equipment 258,883 2,983 (1) See Note 2 for further information. (2) See Note 11 for further information . |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Acquisitions | |
Acquisitions | 5. Acquisitions When we acquire a business we recognize the assets acquired, liabilities assumed and any noncontrolling interests at fair value. We expense all transaction costs related to the acquisition as incurred. Boost Mobile Acquisition Asset Purchase Agreement Effective on July 1, 2020, upon the terms and subject to the conditions set forth in the APA and in accordance with the Final Judgment, we completed the Boost Mobile Acquisition and DISH Network officially entered into the retail wireless market, serving more than 9 million subscribers under the Boost Mobile brand. Consideration Transferred The acquisition date fair value of consideration transferred in the Boost Mobile Acquisition totaled $1.346 billion, summarized in the following table: As of July 1, 2020 (In thousands) Cash consideration (1) $ 1,400,000 Net working capital (2) 33,524 Other funding (3) (87,500) Total consideration transferred $ 1,346,024 (1) Represents agreed upon purchase price pursuant to the APA paid to T-Mobile on July 1, 2020. (2) Represents the assigned value of net working capital acquired under the APA. During the third quarter of 2021, we obtained a favorable determination pursuant to the arbitration procedures under our APA with T-Mobile with respect to the disputed net working capital items . The resulting (3) Represents receipt of payment from Softbank in connection with the Boost Mobile Acquisition on July 1, 2020. Fair Value of Assets Acquired and Liabilities Assumed We accounted for the Boost Mobile Acquisition as a business combination. The identifiable assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date and are consolidated into our financial statements. The assignment of fair value requires significant judgments regarding the estimates and assumptions used to value the acquired assets and liabilities assumed. For the fair values of the assets acquired and liabilities assumed, we utilized the cost, income and market approaches from the perspective of a market participant. We used third-party valuation professionals to aid in the determination of the acquisition date fair values of certain assets acquired. The following table summarizes the fair values for each major class of assets acquired and liabilities assumed at the acquisition date. The purchase allocation set forth below is final. As of July 1, 2020 (In thousands) Trade accounts receivable $ 514,786 Inventory 141,718 Other current assets 3,000 Intangibles 591,000 Goodwill 91,220 Other noncurrent assets 713,000 Total assets 2,054,724 Trade accounts payable and other accrued expenses 533,967 Deferred revenue and other 174,733 Total liabilities 708,700 Total purchase price $ 1,346,024 Acquired Receivables. million. Accounts receivable is comprised of receivables due from master agents, BoostUp! receivables and other receivables. Inventory. Intangible Assets and Goodwill. million. The intangible assets will be amortized over their respective useful lives which range from one . Goodwill has an assigned value of million, which represents the excess of the consideration transferred over the estimated fair values of assets acquired and liabilities assumed. The goodwill recognized includes, among other things, the assembled workforce of Boost Mobile and intangible assets that do not qualify for separate recognition. The goodwill resulting from the Boost Mobile Acquisition included in the wireless segment is expected to be deductible for tax purposes. All of the goodwill acquired is allocated to the Retail Wireless reporting unit. Other Noncurrent Assets. Other noncurrent assets includes our option to purchase certain T-Mobile’s 800 MHz spectrum licenses with an assigned fair value of million. This instrument meets the definition of a derivative and all subsequent changes in the derivative’s fair value are recorded in “Other, net” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) until the option is either exercised or expires. Liabilities. Liabilities include accounts payable, deferred revenue and accrued expenses. Indemnification Assets and Contingent Liabilities . Pursuant to the APA, T-Mobile agreed to indemnify us against certain specified matters and losses. We have not recorded either an indemnification asset or liability as the potential liabilities and associated reimbursement by T-Mobile cannot be reasonably estimated. We expect that any liability incurred related to these indemnified matters would be indemnified and reimbursed by T-Mobile. See Note 11 for further information. Sales of equipment to indirect dealers often include credits subsequently paid to the dealer as a reimbursement for promotions offered to the end consumer. These credits are accounted for as variable consideration when estimating the amount of revenue to recognize from the sales of equipment to indirect dealers. At acquisition, we recorded a contingent obligation related to these credits, based upon historical experience and other factors, such as expected promotional activity. This amount is recorded in “Other accrued expenses” on our Condensed Consolidated Balance Sheets. Agreements in Connection with the APA In connection with the Boost Mobile Acquisition and the consummation of the Sprint/T-Mobile merger, we, T-Mobile, Sprint, DT and SoftBank came to an agreement with the DOJ on key terms and approval of the Transaction Agreements and our wireless service business and spectrum. On July 26, 2019, the Defendants entered into the Stipulation and Order with the DOJ binding the Defendants to the Proposed Final Judgment, which memorialized the agreement between the DOJ and the Defendants. The Stipulation and Order and the Proposed Final Judgment were filed in the District Court on July 26, 2019 and on April 1, 2020, the Final Judgment was entered with the District Court. The term of the Final Judgment is seven years from the date of its entry with the District Court or five years if the DOJ gives notice that the divestitures, build-outs and other requirements have been completed to its satisfaction. A Monitoring Trustee has been appointed by the District Court. The Monitoring Trustee has the power and authority to monitor the Defendants’ compliance with the Final Judgment and settle disputes among the Defendants regarding compliance with the provisions of the Final Judgment and may recommend action to the DOJ in the event a party fails to comply with the Final Judgment. Also in connection with the closing of the Boost Mobile Acquisition, we and T-Mobile entered into the TSA, the MNSA, the Option Agreement, and the Spectrum Purchase Agreement for an additional approximately $3.59 billion. Transition Services Agreement T-Mobile and DISH Network entered into the TSA upon the Closing Date of the Boost Mobile Acquisition, pursuant to which T-Mobile provides certain transition services to us for the Prepaid Business for a period of two years from July 1, 2020. Additionally, under the Final Judgment, we may apply to the DOJ for one or more extensions of the term of the TSA, which the DOJ can approve or deny in its sole discretion, and the TSA contemplates the option to renew the TSA for a third or additional years. The transition services are provided at cost, which shall not exceed a specific amount in the first year, plus certain pass-through costs and out-of-pocket expenses, during the first two years . If any transition services are renewed for a third year, the transition services will be provided at cost plus a certain mark-up, plus certain additional costs. Master Network Services Agreement T-Mobile and DISH Network entered into an MNSA upon the Closing Date of the Boost Mobile Acquisition, pursuant to which we also receive network services from T-Mobile for a period of seven years. As set forth in the MNSA, T-Mobile provides to us, among other things, (i) legacy network services for Boost Mobile and certain other prepaid end users on the Sprint network, (ii) T-Mobile network services for certain end users that have been migrated to the T-Mobile network or provisioned on the T-Mobile network by or on behalf of us and (iii) infrastructure mobile network operator services to assist in the access and integration of our network. Pursuant to the terms of the MNSA, we face certain restrictions on making offerings that may combine the access to services provided under the MNSA with access to the facilities or services provided by certain third parties, subject to certain exceptions and carve-outs. We have the right to offer differentiated pricing, products and features to our end users under our brands in conjunction with the services provided under the MNSA, subject to certain qualifications and restrictions. We have certain restrictions on our ability to wholesale, sub-distribute or resell the services provided under the MNSA to third parties. During and after the term of the MNSA, T-Mobile has agreed to certain restrictions with respect to the use of certain information in the targeting of subscribers. In the event of a “change of control” of DISH Network, the MNSA will terminate upon the earlier of two years following the consummation of the change of control or the date on which the MNSA would have otherwise terminated or expired in accordance with its terms. However, we would remain able to provision new users for after the change of control and also retain access to roaming services on the T-Mobile network for both new and existing users for the remainder of the original term of the MNSA. Generally, a change of control would occur in the first of our wireless communications business assets (excluding our wireless terrestrial spectrum licenses and entities that own our wireless terrestrial spectrum licenses). A permitted owner generally includes Charles W. Ergen (including his family and certain related trusts and entities) and certain financial investors. Following the first a majority of our wireless communications business assets (excluding our wireless terrestrial spectrum licenses and entities that own our wireless terrestrial spectrum licenses). A “restricted person” generally includes certain U.S. wireless providers and U.S. cable companies (with certain exceptions), as well as any other entities that do not enter into a network usage agreement with T-Mobile restricting such person from generally engaging in certain activities that are detrimental to the T-Mobile network. Spectrum Purchase Agreement Pursuant to the Spectrum Purchase Agreement that was entered into upon the Closing Date of the Boost Mobile Acquisition, we are expected to purchase all of Sprint’s 800 MHz spectrum (approximately 13.5 MHz of nationwide spectrum). The covered spectrum must be divested within the later of three years from the Closing Date and five days after receipt of FCC approval for the transfer, following an application for FCC approval to be filed three years following the closing of the Sprint/T-Mobile merger. The DOJ may in its sole discretion agree to extend the deadline for the spectrum divestiture for up to 60 days pursuant to the Final Judgment. T-Mobile may exercise an option to lease back 4 MHz (2 MHz downlink + 2 MHz uplink) of the spectrum for two years following the closing of the 800 MHz spectrum sale at the same per-Pop rate used to calculate the purchase price paid by us to T-Mobile – a rate of approximately $68 million per year. We and T-Mobile have made customary representations, warranties and covenants pursuant to the Spectrum Purchase Agreement, including representations by T-Mobile regarding the validity of the licenses for the purchased spectrum. Pursuant to the Spectrum Purchase Agreement, we and T-Mobile each indemnify the other against losses suffered as a result of breaches of the other’s representations and warranties or covenants. The indemnification provisions are subject to certain deductible and cap limitations and time limitations with respect to recovery for losses. If we breach the Spectrum Purchase Agreement prior to the closing or fail to deliver the purchase price following the satisfaction or waiver of all closing conditions, our sole liability to T-Mobile will be to pay T-Mobile a fee of approximately $72 million. If T-Mobile fails to sell the spectrum to us following the satisfaction or waiver of all closing conditions, our sole recourse will be to seek specific performance, and if (and only if) specific performance is unavailable, to seek damages of up to approximately Option Agreement The Option Agreement, which was entered into upon the Closing Date of the Boost Mobile Acquisition, provides us an exclusive option to assume certain assets and liabilities under certain circumstances for any of the cell sites and retail stores that T-Mobile decommissions during the term of the Option Agreement. T-Mobile must make a minimum of 20,000 cell sites and 400 retail stores available to us pursuant to the Final Judgment. With respect to each decommissioned site, we may choose to acquire: (a) only the lease for such site, (b) the lease and a predetermined list of equipment at the site or (c) the lease and all of the equipment at the site. Under the Final Judgment, T-Mobile must provide a detailed schedule which identifies each cell site that is scheduled to be decommissioned within five years of the Closing Date. The Option Agreement will remain in place for five years following the Closing Date. Agreement with the DOJ: The Stipulation and Order and the Final Judgment Certain of the provisions of the Stipulation and Order and the Final Judgment are also reflected in the terms of the Transaction Agreements. In addition to the terms reflected in the Transaction Agreements, the Stipulation and Order and the Final Judgment provide for other rights and obligations of the Sellers and us, including the following: ● If we elect not to purchase the 800 MHz licenses pursuant to the Spectrum Purchase Agreement, we must pay $360 million (equal to 10% of the Spectrum Purchase Agreement purchase price) to the United States. However, we will not be required to make such payment if we have deployed a core network and offered 5G service to at least 20% of the U.S. population within three years of the Closing Date. ● If we buy the 800 MHz spectrum pursuant to the Spectrum Purchase Agreement but fail to deploy all of the 800 MHz spectrum licenses for use in the provision of retail mobile wireless services by the expiration of the Final Judgment, the DOJ may require us to forfeit to the FCC any of the 800 MHz licenses for spectrum that are not being used to provide retail mobile wireless services, unless we are already providing nationwide retail wireless service. ● We and T-Mobile were required to negotiate in good faith to reach an agreement for T-Mobile to lease some or all of our 600 MHz spectrum licenses for deployment to retail consumers by T-Mobile. On September 11, 2020, we and T-Mobile entered into an agreement to lease a portion of our 600 MHz spectrum licenses for an annual lease payment of approximately $56 million. ● We and T-Mobile must agree to support eSIM technology on smartphones. ● The Sellers must introduce the suppliers and distributors of the Prepaid Business to us and the Sellers may not interfere in our negotiations with such suppliers and distributors. ● On the first day of the fiscal quarter following the entry of the Final Judgment and of each 180 -day period thereafter, we are obligated to provide the DOJ with a description of our deployment efforts over the prior quarter including: (i) the number of communication towers and small cells deployed, (ii) the spectrum bands on which we have deployed equipment, (iii) progress in obtaining devices that operate on our spectrum frequencies, (iv) POPs coverage of our network, (v) the number of our mobile wireless subscriptions, (vi) the amount of traffic transmitted to our subscribers using our network and using T-Mobile’s network, and (vii) whether there are or have been any efforts by T-Mobile to interfere with our efforts to deploy and operate our network. ● We cannot sell, lease or otherwise provide the right to use any of the divested assets to any national facilities-based mobile wireless provider and may not sell any of the divested assets or similar assets back to T-Mobile during the term of the Final Judgment, except that we may lease back to T-Mobile up to 4 MHz of the 800 MHz spectrum we will acquire (as discussed above). ● We must comply with the June 14, 2023 AWS-4, Lower 700 MHz E Block, AWS H Block, and nationwide 5G broadband network build-out commitments made to the FCC, subject to verification by the FCC (as described below). If we fail to comply with such build-out commitments, we may be subject to civil contempt in addition to the substantial voluntary contributions and license forfeitures described below if we fail to meet these commitments (as described below). FCC Build-Out Commitments In a letter filed with the FCC on July 26, 2019, we voluntarily committed to deploy a nationwide 5G broadband network and meet revised timelines relating to the build-out of our AWS-4, Lower 700 MHz E Block, AWS H Block and 600 MHz spectrum assets, subject to certain penalties. Pursuant to these commitments, we requested multi-year extensions to deploy our AWS-4, Lower 700 MHz E Block, and AWS H Block spectrum, and we have committed to build-out our 600 MHz licenses on an accelerated schedule to better align with our 5G deployment. We have also committed to offer 5G broadband service to certain population coverage targets, along with minimum core network, communication tower and spectrum use targets, and have waived our right to deploy any technology of our choice under the FCC’s “flexible use” rules with respect to these spectrum bands. Failure to meet the various commitments would require us to pay voluntary contributions totaling up to billion to the FCC and would subject certain licenses in the AWS-4, Lower 700 MHz E Block, and AWS H Block spectrum to forfeiture. We have also agreed not to sell our AWS-4 and 600 MHz spectrum for six years without prior DOJ and FCC approval (unless such sale is part of a change of control of DISH Network). Additionally, we have agreed not to lease a certain percentage of network capacity on our AWS-4 and 600 MHz spectrum for six years to the three largest U.S. wireless carriers (i.e., AT&T, Verizon and T-Mobile), without prior FCC approval. On November 5, 2019, the FCC released an Order that, among other things, approved the Sprint/T-Mobile merger, tolled our existing March 7, 2020 build-out deadline for our AWS-4 and Lower 700 MHz E Block Licenses, and directed the FCC’s Wireless Telecommunications Bureau to adopt our commitments after a 30 day review period (the “FCC Merger Order”). On September 11, 2020, the FCC’s Wireless Telecommunications Bureau issued an Order adopting these commitments. Our 5G deployment obligations for each of the four spectrum bands are generally set forth below. ● With respect to the 600 MHz licenses, we must offer 5G broadband service to at least 75% of the population in each Partial Economic Area (which are service areas established by the FCC) no later than June 14, 2025. Note that these commitments are earlier than the previous 600 MHz Final Build-Out Requirement date of June 2029. See Note 11 for further information. ● With respect to the AWS-4 licenses, we must offer 5G broadband service to at least 20% of the U.S. population and have deployed a core network no later than June 14, 2022, and offer 5G broadband service to at least 70% of the U.S. population no later than June 14, 2023. ● With respect to the Lower 700 MHz E Block licenses, we must offer 5G broadband service to at least 20% of the U.S. population who are covered by such licenses and have deployed a core network no later than June 14, 2022, and offer 5G broadband service to at least 70% of the U.S. population who are covered by such licenses no later than June 14, 2023. ● With respect to the AWS H Block licenses, we must offer 5G broadband service to at least 20% of the U.S. population and have deployed a core network no later than June 14, 2022, and offer 5G broadband service to at least 70% of the U.S. population no later than June 14, 2023. Ting Mobile Acquisition On August 1, 2020, we completed the Ting Mobile Acquisition. In addition, we entered into a services agreement pursuant to which Tucows will act as a mobile virtual network enabler for certain of our retail wireless subscribers. The consideration for the Ting Mobile Acquisition is an earn-out provision and the fair value of the earn-out provision has been assigned to a customer relationship intangible that is recorded in , net.” The estimated fair value of the earn-out liability is recorded in “Other accrued expenses” and “Long-term deferred revenue and other long-term liabilities on our Condensed Consolidated Balance Sheets. Republic Wireless Acquisition On May 1, 2021, we completed the Republic Wireless Acquisition. The consideration for the Republic Wireless Acquisition consisted of an upfront cash payment and an earn-out provision. T , net” The estimated fair value of the earn-out liability is recorded in “Other accrued expenses” and “Long-term deferred revenue and other long-term liabilities on our Condensed Consolidated Balance Sheets. |
Marketable Investment Securitie
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 9 Months Ended |
Sep. 30, 2021 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 6. Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities Our marketable investment securities, restricted cash and cash equivalents, and other investment securities consisted of the following: As of September 30, December 31, 2021 2020 (In thousands) Marketable investment securities: Current marketable investment securities: Strategic - available-for-sale $ 194 $ 195 Strategic - trading/equity 3,340 — Other 2,964,011 362,758 Total current marketable investment securities 2,967,545 362,953 Restricted marketable investment securities (1) 40,794 24,467 Total marketable investment securities 3,008,339 387,420 Restricted cash and cash equivalents (1) 64,244 83,902 Other investment securities: Other investment securities 155,034 149,706 Total other investment securities 155,034 149,706 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 3,227,617 $ 621,028 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets. Marketable Investment Securities Our marketable investment securities portfolio may consist of debt and equity instruments. All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholders’ equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Current Marketable Investment Securities Strategic Our current strategic marketable investment securities portfolio includes and may include strategic and financial debt and/or equity investments in private and public companies that are highly speculative and have experienced and continue to experience volatility. As of September 30, 2021, this portfolio consisted of securities of a small number of issuers, and as a result the value of that portfolio depends, among other things, on the performance of those issuers. The fair value of certain of the debt and equity securities in this portfolio can be adversely impacted by, among other things, the issuers’ respective performance and ability to obtain any necessary additional financing on acceptable terms, or at all. Current Marketable Investment Securities - Other Our current other marketable investment securities portfolio includes investments in various debt instruments including, among others, commercial paper, corporate securities and United States treasury and/or agency securities. Commercial paper consists mainly of unsecured short-term, promissory notes issued primarily by corporations with maturities ranging up to 365 days . Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months . U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies. Restricted Cash, Cash Equivalents and Marketable Investment Securities As of September 30, 2021 and December 31, 2020, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts. Other Investment Securities We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investment securities” on our Condensed Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and our equity securities are accounted for using the equity method of accounting or recorded at fair value. Certain of our equity method investments are detailed below. NagraStar L.L.C. We own a 50 % interest in NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Invidi Technologies Corporation . In November 2016, we, AT&T Inc., and Cavendish Square Holding B.V., an affiliate of WPP plc, entered into a series of agreements to acquire Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. The transaction closed in January 2017. TerreStar Solutions, Inc. Our ability to realize value from our strategic investments in securities that are not publicly traded depends on the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them. Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of September 30, 2021 December 31, 2020 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 2,304,378 $ 73,878 $ 2,230,500 $ — $ 3,330,296 $ 363,123 $ 2,967,173 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ — $ — $ — $ — $ 65,992 $ 65,992 $ — $ — Commercial paper 2,612,422 — 2,612,422 — 298,435 — 298,435 — Corporate securities 389,891 — 389,891 — 22,552 — 22,552 — Other 2,686 — 2,492 194 441 — 246 195 Equity securities 3,340 3,340 — — — — — — Total $ 3,008,339 $ 3,340 $ 3,004,805 $ 194 $ 387,420 $ 65,992 $ 321,233 $ 195 As of September 30, 2021, restricted and non-restricted marketable investment securities included debt securities of $2.936 billion with contractual maturities within one year and $69 million with contractual maturities extending longer than one year through and including five years. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity. Derivative Instruments We have the option to purchase certain of T-Mobile’s 800 MHz spectrum licenses from T-Mobile at a fixed price in the future as part of the Boost Mobile Acquisition. See Note 5 for further information. This instrument meets the definition of a derivative and was valued based upon, among other things, our estimate of the underlying asset price, the expected term, volatility and the risk free rate of return. The instrument acquisition date fair value was million. The derivative is remeasured quarterly. As of September 30, 2021 and December 31, 2020, the derivative’s fair value was million, respectively, and are included in “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets. All changes in the derivative’s fair value are recorded in “Other, net” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) until the option is either exercised or expires. See the table below. We account for our option to purchase certain T-Mobile’s 800 MHz spectrum licenses under the Spectrum Purchase Agreement as a Level 3 derivative. Gains and Losses on Sales and Changes in Carrying Amounts of Investments and Other “Other, net” within “Other Income (Expense)” included on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, Other, net: 2021 2020 2021 2020 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ (1,634) $ 87 $ (1,316) $ 177 Derivative instruments - net realized and/or unrealized gains (losses) (7,380) (12,450) (18,380) (12,450) Costs related to early redemption of debt — — (3,587) — Equity in earnings (losses) of affiliates 424 (824) 1,957 (221) Other (Note 5) 39,659 (13) 39,924 902 Total $ 31,069 $ (13,200) $ 18,598 $ (11,592) |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2021 | |
Inventory | |
Inventory | 7. Inventory Inventory consisted of the following: As of September 30, December 31, 2021 2020 (In thousands) Finished goods $ 429,925 $ 337,787 Work-in-process and service repairs 17,044 25,621 Raw materials 23,857 16,941 Total inventory $ 470,826 $ 380,349 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment and Intangible Assets | 8. Property and Equipment Property and equipment consisted of the following: Depreciable As of Life September 30, December 31, (In Years) 2021 2020 (In thousands) Equipment leased to customers 2 - 5 $ 1,590,620 $ 1,736,660 Satellites 4 - 15 1,734,024 1,734,024 Satellites acquired under finance lease agreements 10 - 15 888,940 888,940 Furniture, fixtures, equipment and other 2 - 20 2,179,298 2,091,271 Buildings and improvements 5 - 40 373,749 370,941 Land - 17,513 17,810 Construction in progress - 858,782 126,303 Total property and equipment 7,642,926 6,965,949 Accumulated depreciation (4,909,124) (4,783,616) Property and equipment, net $ 2,733,802 $ 2,182,333 Construction in progress consisted of the following: As of September 30, December 31, 2021 2020 (In thousands) Pay-TV $ 37,449 $ 53,486 Wireless 821,333 72,817 Total construction in progress $ 858,782 $ 126,303 Depreciation and amortization expense consisted of the following: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands) Equipment leased to customers $ 60,616 $ 71,568 $ 188,405 $ 220,797 Satellites 47,833 50,193 146,645 152,530 Buildings, furniture, fixtures, equipment and other 32,176 32,303 92,418 97,679 Intangible assets (1) 36,666 45,019 126,598 47,021 Total depreciation and amortization $ 177,291 $ 199,083 $ 554,066 $ 518,027 (1) The increase resulted from the Boost Mobile Acquisition, the Ting Mobile Acquisition and the Republic Wireless Acquisition. See Note 5 for further information. Cost of sales and operating expense categories included in our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation expense related to satellites or equipment leased to customers. Satellites Pay-TV Satellites. We currently utilize of which we own and depreciate over their estimated useful life. We currently utilize certain capacity on satellite that we lease from EchoStar, which is accounted for as an operating lease. We also lease satellites from third parties: Ciel II, which is accounted for as an operating lease, and Anik F3, Nimiq 5 and QuetzSat-1, which are accounted for as financing leases and are each depreciated over their economic life. As of September 30, 2021, our pay-TV satellite fleet consisted of the following: Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar VII February 2002 119 N/A 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 67.9 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2022 Nimiq 5 September 2009 72.7 September 2024 QuetzSat-1 September 2011 77 November 2021 (1) See Note 14 for further information on our Related Party Transactions with EchoStar. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Leases | 9. Leases We enter into operating and finance leases for, among other things, communication towers, satellites, office space, fiber and transport equipment, warehouses and distribution centers, vehicles and other equipment. Our leases have remaining lease one some within Our Anik F3, Nimiq 5 and QuetzSat-1 satellites are accounted for as financing leases. Substantially all of our remaining leases are accounted for as operating leases. The components of lease expense were as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands) Operating lease cost $ 14,004 $ 18,281 $ 47,585 $ 54,130 Short-term lease cost (1) 2,488 2,726 9,686 8,284 Finance lease cost: Amortization of right-of-use assets 17,829 17,829 53,488 53,488 Interest on lease liabilities 3,467 5,070 11,635 16,326 Total finance lease cost 21,296 22,899 65,123 69,814 Total lease costs $ 37,788 $ 43,906 $ 122,394 $ 132,228 (1) Leases that have terms of 12 months or less. Supplemental cash flow information related to leases was as follows: For the Nine Months Ended September 30, 2021 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 52,220 $ 54,611 Operating cash flows from finance leases $ 9,932 $ 16,326 Financing cash flows from finance leases $ 49,873 $ 47,301 Right-of-use assets obtained in exchange for lease obligations: Operating leases (1) $ 799,261 $ 41,665 Finance leases $ — $ — (1) The increase in operating lease assets primarily related to communication tower leases. Supplemental balance sheet information related to leases was as follows: As of September 30, December 31, 2021 2020 (In thousands) Operating Leases: Operating lease assets (1) $ 853,140 $ 104,271 Other current liabilities $ 53,257 $ 56,856 Operating lease liabilities (1) 818,931 63,526 Total operating lease liabilities $ 872,188 $ 120,382 Finance Leases: Property and equipment, gross $ 889,708 $ 889,708 Accumulated depreciation (807,780) (754,292) Property and equipment, net $ 81,928 $ 135,416 Other current liabilities $ 39,221 $ 58,379 Other long-term liabilities 73,080 103,795 Total finance lease liabilities $ 112,301 $ 162,174 Weighted Average Remaining Lease Term: Operating leases (1) 12.6 years 2.8 years Finance leases 2.7 years 3.1 years Weighted Average Discount Rate: Operating leases 4.5% 4.2% Finance leases 10.8% 10.4% (1) The increase in operating lease assets and liabilities primarily related to communication tower leases. Maturities of lease liabilities as of September 30, 2021 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2021 (remaining three months) $ 19,403 $ 10,498 $ 29,901 2022 70,974 48,307 119,281 2023 70,234 40,942 111,176 2024 72,764 30,707 103,471 2025 74,821 — 74,821 Thereafter 905,368 — 905,368 Total lease payments 1,213,564 130,454 1,344,018 Less: Imputed interest (341,376) (18,153) (359,529) Total 872,188 112,301 984,489 Less: Current portion (53,257) (39,221) (92,478) Long-term portion of lease obligations $ 818,931 $ 73,080 $ 892,011 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Long-Term Debt and Finance Lease Obligations | |
Long-Term Debt and Finance Lease Obligations | 10. Long-Term Debt and Finance Lease Obligations Fair Value of our Long-Term Debt The following table summarizes the carrying amount and fair value of our debt facilities as of September 30, 2021 and December 31, 2020: As of September 30, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value (In thousands) 6 3/4% Senior Notes due 2021 (1) $ — $ — $ 2,000,000 $ 2,047,260 5 7/8% Senior Notes due 2022 (2) 2,000,000 2,063,900 2,000,000 2,095,820 5% Senior Notes due 2023 1,500,000 1,558,860 1,500,000 1,566,300 5 7/8% Senior Notes due 2024 2,000,000 2,157,200 2,000,000 2,099,580 2 3/8% Convertible Notes due 2024 1,000,000 979,520 1,000,000 949,350 0% Convertible Notes due 2025 2,000,000 2,393,560 2,000,000 2,010,000 7 3/4% Senior Notes due 2026 2,000,000 2,264,720 2,000,000 2,236,520 3 3/8% Convertible Notes due 2026 3,000,000 3,131,940 3,000,000 2,886,330 7 3/8% Senior Notes due 2028 1,000,000 1,067,980 1,000,000 1,070,130 5 1/8 % Senior Notes due 2029 1,500,000 1,472,880 — — Other notes payable 139,902 139,902 137,809 137,809 Subtotal 16,139,902 $ 17,230,462 16,637,809 $ 17,099,099 Unamortized debt discount on the Convertible Notes (3) — (1,061,203) Unamortized deferred financing costs and other debt discounts, net (48,014) (36,752) Finance lease obligations (4) 112,301 162,174 Total long-term debt and finance lease obligations (including current portion) $ 16,204,189 $ 15,702,028 (1) As of June 1, 2021, we had repurchased or redeemed the principal balance of our 6 3/4% Senior Notes due 2021. (2) Our 5 7/8% Senior Notes due 2022 mature on July 15, 2022 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Condensed Consolidated Balance Sheets as of September 30, 2021. (3) See Note 2 for further information. (4) Disclosure regarding fair value of finance leases is not required. We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2). 5 1/8% Senior Notes due 2029 On May 24, 2021, we issued $1.5 billion aggregate principal amount of our 5 1/8% Senior Notes due June 1, 2029. Interest accrues at an annual rate of 5 1/8% The 5 1/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to June 1, 2024, we may also redeem up to 35% of the 5 1/8% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. Our 5 1/8% ● general unsecured senior obligations of DISH DBS Corporation (“DISH DBS”); ● ranked equally in right of payment with all of DISH DBS’ and the guarantors’ existing and future unsecured senior debt; and ● ranked effectively junior to our and the guarantors’ current and future secured senior indebtedness up to the value of the collateral securing such indebtedness. The indenture related to our 5 1/8% ● incur additional debt; ● pay dividends or make distributions on DISH DBS’ capital stock or repurchase DISH DBS’ capital stock; ● make certain investments; ● create liens or enter into sale and leaseback transactions; ● enter into transactions with affiliates; ● merge or consolidate with another company; and ● transfer or sell assets. In the event of a change of control, as defined in the related indenture, we would be required to make an offer to repurchase all or any part of a holder’s 5 1/8% Senior Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon, to the date of repurchase. 2 3/8% Convertible Notes due 2024 On March 17, 2017, we issued $1.0 billion aggregate principal amount of the Convertible Notes due March 15, 2024 in a private placement. 2 3/8% The Convertible Notes due 2024 are: ● our general unsecured obligations; ● ranked senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Convertible Notes due 2024; ● ranked equally in right of payment with all of our existing and future unsecured senior indebtedness; ● ranked effectively junior to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; ● ranked structurally junior to all indebtedness and other liabilities of our subsidiaries; and ● not guaranteed by our subsidiaries. We may not redeem the Convertible Notes due 2024 prior to the maturity date. If a “fundamental change” (as defined in the related indenture) occurs prior to the maturity date of the Convertible Notes due 2024, holders may require us to repurchase for cash all or part of their Convertible Notes due 2024 at a repurchase price equal to 100% of the principal amount of such Convertible Notes due 2024, plus accrued and unpaid interest to, but not including, the fundamental change repurchase date. The indenture related to the Convertible Notes due 2024 does not contain any financial covenants and does not restrict us from paying dividends, issuing or repurchasing our other securities, issuing new debt (including secured debt) or repaying or repurchasing our debt. Subject to the terms of the related indenture, the Convertible Notes due 2024 may be converted at an initial conversion rate of 12.1630 shares of our Class A common stock per $1,000 principal amount of Convertible Notes due 2024 (equivalent to an initial conversion price of approximately $82.22 per share of our Class A common stock) (the “Initial Conversion Rate”), at any time on or after October 15, 2023 through the second scheduled trading day preceding the maturity date. Holders of the Convertible Notes 15, 2023, but only upon the occurrence of specified events described in the related indenture. The conversion rate is subject to anti-dilution adjustments if certain events occur. Upon any conversion, we will settle our conversion obligation in cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election. 0% Convertible Notes due 2025 On December 21, 2020, we issued $2.0 billion aggregate principal amount of the Convertible Notes due December 15, 2025 in a private placement. These notes will not bear interest, and the principal amount of the Notes will not accrete. The Convertible Notes due 2025 are: ● our general unsecured obligations; ● ranked senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Convertible Notes due 2025; ● ranked equally in right of payment with all of our existing and future unsecured senior indebtedness; ● ranked effectively junior to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; ● ranked structurally junior to all indebtedness and other liabilities of our subsidiaries; and ● not guaranteed by our subsidiaries. We may not redeem the Convertible Notes due 2025 prior to the maturity date. If a “fundamental change” (as defined in the related indenture) occurs prior to the maturity date of the Convertible Notes due 2025, holders may require us to repurchase for cash all or part of their Convertible Notes due 2025 at a repurchase price equal to 100% of the principal amount of such Convertible Notes due 2025, plus accrued and unpaid interest to, but not including, the fundamental change repurchase date. The indenture related to the Convertible Notes due 2025 does not contain any financial covenants and does not restrict us from paying dividends, issuing or repurchasing our other securities, issuing new debt (including secured debt) or repaying or repurchasing our debt. Subject to the terms of the related indenture, the Convertible Notes due 2025 may be converted at an initial conversion rate of 24.4123 shares of our Class A common stock per $1,000 principal amount of the Convertible Notes due 2025 (equivalent to an initial conversion price of approximately $40.96 per share of our Class A common stock) (the “Initial Conversion Rate”), at any time on or after July 15, 2025 through the second scheduled trading day preceding the maturity date. Holders of the Convertible Notes 15, 2025, but only upon the occurrence of specified events described in the related indenture. The conversion rate is subject to anti-dilution adjustments if certain events occur. Upon any conversion, we will settle our conversion obligation in cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election. 3 3/8% Convertible Notes due 2026 On August 8, 2016, we issued $3.0 billion aggregate principal amount of the Convertible Notes due August 15, 2026 in a private unregistered offering. 3 3/8% The Convertible Notes due 2026 are: ● our general unsecured obligations; ● ranked senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Convertible Notes due 2026; ● ranked equally in right of payment with all of our existing and future unsecured senior indebtedness; ● ranked effectively junior to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; ● ranked structurally junior to all indebtedness and other liabilities of our subsidiaries; and ● not guaranteed by our subsidiaries. We may not redeem the Convertible Notes due 2026 prior to the maturity date. If a “fundamental change” (as defined in the related indenture) occurs prior to the maturity date of the Convertible Notes due 2026, holders may require us to repurchase for cash all or part of their Convertible Notes due 2026 at a specified make-whole price equal to 100% of the principal amount of such Convertible Notes due 2026, plus accrued and unpaid interest to, but not including, the fundamental change repurchase date. The indenture related to the Convertible Notes due 2026 does not contain any financial covenants and does not restrict us from paying dividends, issuing or repurchasing our other securities, issuing new debt (including secured debt) or repaying or repurchasing our debt. Subject to the terms of the related indenture, the Convertible Notes due 2026 may be converted at an initial conversion rate of 15.3429 shares of our Class A common stock per $1,000 principal amount of Convertible Notes due 2026 (equivalent to an initial conversion price of approximately $65.18 per share of our Class A common stock) (the “Initial Conversion Rate”), at any time on or after March 15, 2026 through the second scheduled trading day preceding the maturity date. Holders of the Convertible Notes 15, 2026, but only upon the occurrence of specified events described in the related indenture. The conversion rate is subject to anti-dilution adjustments if certain events occur. Upon any conversion, we will settle our conversion obligation in cash, shares of our Class A common stock or a combination of cash and shares of our Class A common stock, at our election. Convertible Note Hedge and Warrant Transactions In connection with the offering of the Convertible Notes due 2026 , we entered into convertible note hedge transactions with certain option counterparties. The convertible note hedge transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Convertible Notes per share. The total cost of the convertible note hedge transactions was million. Concurrently with entering into the convertible note hedge transactions, we also entered into warrant transactions with each option counterparty whereby we sold to such option counterparty warrants to purchase, subject to customary anti-dilution adjustments, up to the same number of shares of our Class A common stock, which initially gives the option counterparties the option to purchase approximately per share. We received million in cash proceeds from the sale of these warrants. We will not be required to make any cash payments to each option counterparty or its affiliates upon the exercise of the options that are a part of the convertible note hedge transactions, but will be entitled to receive from them a number of shares of Class A common stock, an amount of cash or a combination thereof. This consideration is generally based on the amount by which the market price per share of Class A common stock, as measured under the terms of the convertible note hedge transactions, is greater than the strike price of the convertible note hedge transactions during the relevant valuation period under the convertible note hedge transactions. Additionally, if the market price per share of Class A common stock, as measured under the terms of the warrant transactions, exceeds the strike price of the warrants during the measurement period at the maturity of the warrants, we will owe each option counterparty a number of shares of Class A common stock in an amount based on the excess of such market price per share of Class A common stock over the strike price of the warrants. However, as specified under the terms of the warrant transactions, we may elect to settle the warrants in cash. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies Commitments We currently expect capital expenditures, excluding capitalized interest, billion is included below in “Other long-term obligations.” As we continue our 5G Network Deployment, we have begun to enter into contracts for future operational expenses, such as communication tower leases. contractual commitments related to communication tower obligations, certain 5G Network Deployment commitments, obligations under the NSA with AT&T, and satellite related and other obligations. “Other long-term obligations” totaled billion as of September 30, 2021. These totals could increase as we continue our 5G Network Deployment. As of September 30, 2021, our future “Other long-term obligations” were $2.587 billion for the remaining three months of 2021 through 2022, $1.096 billion for 2023, $1.191 billion for 2024, $1.289 billion for 2025, and $7.428 billion thereafter, principally for tower obligations that extend out until 2036, for a total of $13.591 billion. Future maturities of our long-term debt, finance lease and contractual obligations as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020 have not changed materially, other than those disclosed above. AT&T Network Service Agreement. On July 14, 2021, DISH Wireless L.L.C., our indirect wholly-owned subsidiary, and AT&T entered into a ten-year NSA, which will provide customers of Boost Mobile, Ting Mobile and Republic Wireless and all future brands coverage on AT&T’s network. Under the NSA, AT&T becomes our primary network services provider, as we have committed to activate on AT&T’s network at least a minimum percentage of certain of our MVNO subscribers in the U.S. who receive services through a third-party network and to utilize AT&T’s network for a minimum specified percentage of our domestic roaming data usage for our MNO subscribers. We have agreed to pay AT&T at least . The description of the NSA above is not complete and is qualified in its entirety by the actual terms of the NSA, a redacted copy of which is filed with the U.S. Securities and Exchange Commission as an exhibit to the Company’s Quarterly Report on Form 10-Q for this quarterly period ended September 30, 2021. Wireless – 5G Network Deployment We have directly invested over $12 billion to acquire certain wireless spectrum licenses and related assets and made over $10 billion in non-controlling investments in certain entities, for a total of over $22 billion. The Recent Wireless Spectrum Acquisitions 3550-3650 MHz. The auction for the Priority Access Licenses for the 3550-3650 MHz band began on July 23, 2020 and ended on August 25, 2020. On September 2, 2020, the FCC announced that Wetterhorn Wireless L.L.C. (“Wetterhorn”), a wholly-owned subsidiary of DISH Network, was the winning bidder of million. During the second and third quarters 2020, we paid million, respectively, to the FCC for our winning bids. On October 1, 2020, we paid the remaining balance of our winning bids of approximately million. On March 12, 2021, the FCC issued an order granting Wetterhorn’s application to acquire the 3550-3650 MHz licenses (the “3550-3650 MHz GHz Licenses”). 3.7-3.98 GHz. The auction for the Flexible-Use Service Licenses in the 3.7-3.98 GHz Band (“Auction 107”) began on December 8, 2020 and ended on February 17, 2021. On February 24, 2021, the FCC announced that Little Bear Wireless L.L.C. (“Little Bear”), a wholly-owned subsidiary of DISH Network, was the winning bidder of one Flexible-Use Service License in the 3.7-3.98 GHz band, with Little Bear’s aggregate winning bid totaling approximately million. On November 2, 2020, we paid Wireless Spectrum Licenses These wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements that are summarized in the table below: As of September 30, 2021 Build-Out Deadlines Carrying Expiration Amount Interim Final Date (In thousands) Owned: DBS Licenses (1) $ 677,409 700 MHz Licenses 711,871 June 14, 2022 (2) June 14, 2023 (4) June 2023 AWS-4 Licenses 1,940,000 June 14, 2022 (2) June 14, 2023 (4) June 2023 H Block Licenses 1,671,506 June 14, 2022 (2) June 14, 2023 (5) June 2023 600 MHz Licenses 6,211,154 June 14, 2025 (6) June 2029 MVDDS Licenses (1) 24,000 August 2024 LMDS Licenses (1) — September 2028 28 GHz Licenses 2,883 October 2, 2029 (7) October 2029 24 GHz Licenses 11,772 December 11, 2029 (7) December 2029 37 GHz, 39 GHz and 47 GHz Licenses 202,533 June 4, 2030 (7) June 2030 3550-3650 MHz Licenses 912,939 March 12, 2031 (7) March 2031 3.7-3.98 GHz Licenses 2,580 July 23, 2029 (7) July 23, 2033 (7) July 2036 Subtotal 12,368,647 Non-controlling Investments: Northstar 5,618,930 October 2021 (3) October 2027 (8) October 2027 (8) SNR 4,271,459 October 2021 (3) October 2027 (8) October 2027 (8) Total AWS-3 Licenses 9,890,389 Capitalized Interest (9) 6,155,457 Total $ 28,414,493 (1) The build-out deadlines for these licenses have been met. (2) For these licenses, we must offer 5G broadband service to at least 20% of the United States population and have developed a core network by this date. (3) For these licenses, Northstar Wireless and SNR Wireless must provide reliable signal coverage and offer service to at least 40% of the population of each license area by this date. See (8) below for final build-out deadlines. (4) For these licenses, we must offer 5G broadband service to 70% of the United States population by this date; provided, however, if by June 14, 2023, we are offering 5G broadband service with respect to these licenses to at least 50% of the population of the United States, the final deadline shall be further extended automatically to June 14, 2025, for us to construct and offer 5G broadband service to at least 70% of the population in each Economic Area (which is a service area established by the FCC) with respect to these licenses. (5) For these licenses, we must offer 5G broadband service to at least 70% of the United States population by this date; provided, however, that if by June 14, 2023, we are offering 5G broadband service with respect to these licenses to at least 50% of the population of the United States, the final deadline shall be further extended automatically to June 14, 2025, for us to construct and offer 5G broadband service to at least 75% of the population in each Economic Area with respect to these licenses. (6) For these licenses, we must offer 5G broadband service to at least 75% of the population in each Partial Economic Area (which are service areas established by the FCC) by this date. (7) There are a variety of build-out options and associated build-out metrics associated with these licenses. (8) For these licenses, Northstar Wireless and SNR Wireless must provide reliable signal coverage and offer service to at least 75% of the population of each license area by this date. If the AWS-3 interim build-out requirement is not met, the AWS-3 expiration date and the AWS-3 final build-out requirement may be accelerated by two years (from October 2027 to October 2025) for each AWS-3 License area in which Northstar Wireless and SNR Wireless do not meet the requirement. (9) See Note 2 for further information. Commercialization of Our Wireless Spectrum Licenses and Related Assets. We plan to commercialize our wireless spectrum licenses through our 5G Network Deployment. To that end, we have undertaken several key steps including identifying markets to build out, making executive and management hires and entering into agreements with key vendors. For example, on November 16, 2020, we announced a long-term agreement with Crown Castle pursuant to which Crown Castle will lease us space on up to 20,000 communication towers. As part of the agreement, we will also receive certain fiber transport services and have the option to utilize Crown Castle for pre-construction services. We entered into a similar agreement with American Tower on March 15, 2021 and have also entered into agreements with a number of other tower providers. We have also entered into multiple long-term agreements with vendors including, among others, Amazon, Dell, Fujitsu, Palo Alto and VMware for cloud computing service, radios, software, network security, . We currently have over 35 markets under construction, including Las Vegas, Nevada, and also commenced the initial launch of consumer beta service in Las Vegas. We currently expect capital expenditures, excluding capitalized interest, for our 5G Network Deployment to be approximately . Prior to starting our 5G Network Deployment, we notified the FCC in March 2017 that we planned to deploy a narrowband IoT network on certain of these wireless licenses, which we expected to complete by March 2020, with subsequent phases to be completed thereafter. In light of, among other things, certain developments related to the Sprint/T-Mobile merger, during the first quarter of 2020, we determined that the revision of certain of our build-out deadlines was probable and, therefore, we no longer intended to complete our narrowband IoT deployment. The FCC issued an Order effectuating the build-out deadline changes contemplated above on September 11, 2020. During the first quarter of 2020, we impaired certain assets that would not be utilized in our 5G Network Deployment, resulting in a $253 million non-cash impairment charge in “Impairment of long-lived assets” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We will need to make significant additional investments or partner with others to, among other things, complete our 5G Network Deployment and further commercialize, build-out and integrate these licenses and related assets and any additional acquired licenses and related assets, as well as to comply with regulations applicable to such licenses. Depending on the nature and scope of such activities, any such investments or partnerships could vary significantly. In addition, we will incur significant additional expenses and will have to make significant investments related to, among other things, research and development, wireless testing and wireless network infrastructure. We may also determine that additional wireless spectrum licenses may be required to and to compete with other wireless service providers. For example, on July 21, 2021, we filed an application with the FCC to participate as a potential bidder in the wireless spectrum auction for the Flexible-Use Service Licenses in the 3.45–3.55 GHz band (“Auction 110”). On September 17, 2021, the FCC announced that we and 32 other applicants were qualified to participate in Auction 110. We may need to raise significant additional capital in the future to fund the efforts described above, which may not be available on acceptable terms or at all. There can be no assurance that we will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that we will be able to profitably deploy the assets represented by these wireless spectrum licenses, which may affect the carrying amount of these assets and our future financial condition or results of operations. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses Non-Controlling Investments During 2015, through our wholly-owned subsidiaries American II and American III, we initially made over $10 billion in certain non-controlling investments in Northstar Spectrum, the parent company of Northstar Wireless, and in SNR HoldCo, the parent company of SNR Wireless, respectively. Under the applicable accounting guidance in ASC 810, Northstar Spectrum and SNR HoldCo are considered variable interest entities and, based on the characteristics of the structure of these entities and in accordance with the applicable accounting guidance, we consolidate these entities into our financial statements. See Note 2 for further information. Northstar Investment. As of 2015, through American II, we owned a non-controlling interest in Northstar Spectrum, which was comprised of 85% of the Class B Common Interests and 100% of the Class A Preferred Interests of Northstar Spectrum. Northstar Manager is the sole manager of Northstar Spectrum and owns a controlling interest in Northstar Spectrum, which was comprised of 15% of the Class B Common Interests of Northstar Spectrum. As of March 31, 2018, the total equity contributions from American II and Northstar Manager to Northstar Spectrum were approximately $7.621 billion and $133 million, respectively. As of March 31, 2018, the total loans from American II to Northstar Wireless under the Northstar Credit Agreement (as defined below) for payments to the FCC related to the Northstar Licenses (as defined below) were approximately million. See below for further information. Northstar Purchase Agreement . On December 30, 2020, through our wholly-owned subsidiary American II, we entered into a Purchase Agreement (the “Northstar Purchase Agreement”) with Northstar Manager and Northstar Spectrum, pursuant to which American II purchased 80% of Northstar Manager’s Class B Common Interests in Northstar Spectrum (the “Northstar Transaction”) for a purchase price of approximately $312 million. As a result of the Northstar Transaction, through American II, we hold 97% of the Class B Common Interests in Northstar Spectrum and Northstar Manager holds 3% of the Class B Common Interests in Northstar Spectrum. Other than the change in ownership percentage of Northstar Spectrum, the Northstar Transaction did not modify or amend in any way the existing arrangements between or among the Northstar parties. In the Northstar Purchase Agreement, Northstar Manager waived its right to exercise the Northstar Put Right under the First Northstar Put Window. Northstar Manager retains its right to exercise the Northstar Put Right during the Second Northstar Put Window . See below for further information. SNR Investment. As of 2015, through American III, we own a non-controlling interest in SNR HoldCo, which is comprised of of the Class A Preferred Interests of SNR HoldCo. SNR Management is the sole manager of SNR HoldCo and owns a controlling interest in SNR HoldCo, which is comprised of 15% of the Class B Common Interests of SNR HoldCo. As of March 31, 2018, the total equity contributions from American III and SNR Management to SNR HoldCo were approximately million, respectively. As of March 31, 2018, the total loans from American III to SNR Wireless under the SNR Credit Agreement (as defined below) for payments to the FCC related to the SNR Licenses (as defined below) were approximately million. See below for further information. AWS-3 Auction Northstar Wireless and SNR Wireless each filed applications with the FCC to participate in Auction 97 (the “AWS-3 Auction”) for the purpose of acquiring certain AWS-3 Licenses. Each of Northstar Wireless and SNR Wireless applied to receive bidding credits of 25 % as designated entities under applicable FCC rules. Northstar Wireless was the winning bidder for AWS-3 Licenses with gross winning bid amounts totaling approximately $7.845 billion, which after taking into account a 25% bidding credit, was approximately $5.884 billion. SNR Wireless was the winning bidder for AWS-3 Licenses with gross winning bid amounts totaling approximately $5.482 billion, which after taking into account a 25% bidding credit, was approximately $4.112 billion. In addition to the net winning bids, SNR Wireless made a bid withdrawal payment of approximately $8 million. FCC Order and October 2015 Arrangements. Memorandum Opinion and Order which billion for SNR Wireless). On November 23, 2020, the FCC released a Memorandum Opinion and Order on Remand, FCC 20-160, that found that Northstar Wireless and SNR Wireless are not eligible for bidding credits based on the FCC’s determination that they remain under DISH Network’s de facto control. Northstar Wireless and SNR Wireless have appealed the FCC’s order to the D.C. Circuit Court of Appeals. Letters Exchanged between Northstar Wireless and the FCC Wireless Bureau. As outlined in letters exchanged between Northstar Wireless and the Wireless Telecommunications Bureau of the FCC (the “FCC Wireless Bureau”), Northstar Wireless paid the gross winning bid amounts for billion through the application of funds already on deposit with the FCC. Northstar Wireless also notified the FCC that it would not be paying the gross winning bid amounts for As a result of the nonpayment of those gross winning bid amounts, the FCC retained those licenses and Northstar Wireless owed the FCC an additional interim payment of approximately $334 million (the “Northstar Interim Payment”), which is equal to 15% of $2.226 billion. The Northstar Interim Payment was recorded as an expense during the fourth quarter of 2015. Northstar Wireless immediately satisfied the Northstar Interim Payment through the application of funds already on deposit with the FCC and an additional loan from American II of approximately $69 million. As a result, the FCC will not deem Northstar Wireless to be a “current defaulter” under applicable FCC rules. In addition, the FCC Wireless Bureau acknowledged that Northstar Wireless’ nonpayment of those gross winning bid amounts does not constitute action involving gross misconduct, misrepresentation or bad faith. Therefore, the FCC concluded that such nonpayment will not affect the eligibility of Northstar Wireless, its investors (including DISH Network) or their respective affiliates to participate in future spectrum auctions (including Auction 1000 and any re-auction of the AWS-3 licenses retained by the FCC). At this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction of those AWS-3 licenses. If the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are greater than or equal to the winning bids of Northstar Wireless, no additional amounts will be owed to the FCC. However, if those winning bids are less than the winning bids of Northstar Wireless, then Northstar Wireless will be responsible for the difference less any overpayment of the Northstar Interim Payment (which will be recalculated as 15 % of the winning bids from re-auction or other award) (the “Northstar Re-Auction Payment”). million overpayment of the Northstar Interim Payment. As discussed above, at this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction. We cannot predict with any degree of certainty the timing or outcome of any re-auction or the amount of any Northstar Re-Auction Payment. DISH Network Guaranty in Favor of the FCC for Certain Northstar Wireless Obligations . On October 1, 2015, DISH Network entered into a guaranty in favor of the FCC (the “FCC Northstar Guaranty”) with respect to the Northstar Interim Payment (which was satisfied on October 1, 2015) and any Northstar Re-Auction Payment. The FCC Northstar Guaranty provides, among other things, that during the period between the due date for the payments guaranteed under the FCC Northstar Guaranty and the date such guaranteed payments are paid: (i) Northstar Wireless’ payment obligations to American II under the Northstar Credit Agreement will be subordinated to such guaranteed payments; and (ii) DISH Network or American II will withhold exercising certain rights as a creditor of Northstar Wireless. Letters Exchanged between SNR Wireless and the FCC Wireless Bureau. million). SNR Wireless also notified the FCC that it would not be paying the gross winning bid amounts for 113 AWS-3 Licenses totaling approximately $1.211 billion. As a result of the nonpayment of those gross winning bid amounts, the FCC retained those licenses and SNR Wireless owed the FCC an additional interim payment of approximately $182 million (the “SNR Interim Payment”), which is equal to 15% of $1.211 billion. The SNR Interim Payment was recorded as an expense during the fourth quarter of 2015. SNR Wireless immediately satisfied the SNR Interim Payment through a portion of an additional loan from American III in an aggregate amount of approximately $344 million. As a result, the FCC will not deem SNR Wireless to be a “current defaulter” under applicable FCC rules. In addition, the FCC Wireless Bureau acknowledged that SNR Wireless’ nonpayment of those gross winning bid amounts does not constitute action involving gross misconduct, misrepresentation or bad faith. Therefore, the FCC concluded that such nonpayment will not affect the eligibility of SNR Wireless, its investors (including DISH Network) or their respective affiliates to participate in future spectrum auctions (including Auction 1000 and any re-auction of the AWS-3 licenses retained by the FCC). At this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction of those AWS-3 licenses. If the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are greater than or equal to the winning bids of SNR Wireless, no additional amounts will be owed to the FCC. However, if those winning bids are less than the winning bids of SNR Wireless, then SNR Wireless will be responsible for the difference less any overpayment of the SNR Interim Payment (which will be recalculated as 15 % of the winning bids from re-auction or other award) (the “SNR Re-Auction Payment”). For example, if the winning bids in a re-auction are $1, the SNR Re-Auction Payment would be approximately $1.029 billion, which is calculated as the difference between $1.211 billion (the SNR winning bid amounts) and $1 (the winning bids from re-auction) less the resulting $182 million overpayment of the SNR Interim Payment. As discussed above, at this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction. We cannot predict with any degree of certainty the timing or outcome of any re-auction or the amount of any SNR Re-Auction Payment. DISH Network Guaranty in Favor of the FCC for Certain SNR Wireless Obligations. On October 1, 2015, DISH Network entered into a guaranty in favor of the FCC (the “FCC SNR Guaranty”) with respect to the SNR Interim Payment (which was satisfied on October 1, 2015) and any SNR Re-Auction Payment. The FCC SNR Guaranty provides, among other things, that during the period between the due date for the payments guaranteed under the FCC SNR Guaranty and the date such guaranteed payments are paid: (i) SNR Wireless’ payment obligations to American III under the SNR Credit Agreement will be subordinated to such guaranteed payments; and (ii) DISH Network or American III will withhold exercising certain rights as a creditor of SNR Wireless. FCC Licenses . On October 27, 2015, the FCC granted the Northstar Licenses to Northstar Wireless and the SNR Licenses to SNR Wireless, respectively, which are recorded in “FCC authorizations” on our Condensed Consolidated Balance Sheets. The AWS-3 Licenses are subject to certain interim and final build-out requirements. By October 2021, Northstar Wireless and SNR Wireless must provide reliable signal coverage and offer service to at least 40 % of the population in each area covered by an individual AWS-3 License (the “AWS-3 Interim Build-Out Requirement”). By October 2027, Northstar Wireless and SNR Wireless must provide reliable signal coverage and offer service to at least 75 % of the population in each area covered by an individual AWS-3 License (the “AWS-3 Final Build-Out Requirement”). If the AWS-3 Interim Build-Out Requirement is not met, the AWS-3 License term and the AWS-3 Final Build-Out Requirement may be accelerated by two years (from October 2027 to October 2025) for each AWS-3 License area in which Northstar Wireless and SNR Wireless do not meet the requirement. If the AWS-3 Final Build-Out Requirement is not met, the authorization for each AWS-3 License area in which Northstar Wireless and SNR Wireless do not meet the requirement may terminate. These wireless spectrum licenses expire in October 2027 unless they are renewed by the FCC. There can be no assurances that the FCC will renew these wireless spectrum licenses. Qui Tam . On September 23, 2016, the United States District Court for the District of Columbia unsealed a qui tam complaint that was filed by Vermont National Telephone Company (“Vermont National”) against us; our wholly-owned subsidiaries, American AWS-3 Wireless I L.L.C., American II, American III, and DISH Wireless Holding L.L.C.; Charles W. Ergen (our Chairman) and Cantey M. Ergen (a member of our board of directors); Northstar Wireless; Northstar Spectrum; Northstar Manager; SNR Wireless; SNR HoldCo; SNR Management; and certain other parties. See “ Contingencies – Litigation – Vermont National Telephone Company” D.C. Circuit Court Opinion . SNR Wireless LicenseCo, LLC, et al. v. Federal Communications Commission , 868 F.3d 1021 (D.C. Cir. 2017) (the “Appellate Decision”) affirmed the Order in part, and remanded the matter to the FCC to give Northstar Wireless and SNR Wireless an opportunity to seek to negotiate a cure of the issues identified by the FCC in the Order (a “Cure”). On January 26, 2018, SNR Wireless and Northstar Wireless filed a petition for a writ of certiorari, asking the United States Supreme Court to hear an appeal from the Appellate Decision, . Order on Remand. Northstar Operative Agreements Northstar LLC Agreement. Northstar Spectrum is governed by a limited liability company agreement by and between American II and Northstar Manager (the “Northstar Spectrum LLC Agreement”). Pursuant to the Northstar Spectrum LLC Agreement, American II and Northstar Manager made pro-rata equity contributions in Northstar Spectrum. On March 31, 2018, American II, Northstar Spectrum, and Northstar Manager amended and restated the Northstar Spectrum LLC Agreement, to, among other things: (i) exchange The Northstar Preferred Interests: (a) are non-voting; (b) have a On June 7, 2018, American II, Northstar Spectrum, and Northstar Manager amended and restated the Second Amended and Restated Limited Liability Company Agreement, dated March 31, 2018, by and among American II, Northstar Spectrum, and Northstar Manager, to, among other things: (i) reduce the mandatory quarterly distribution for the Northstar Preferred Interests from remove American II’s tag along rights with respect to Northstar Manager’s sale of its interest in Northstar Spectrum. Northstar Manager had the right to put its interest in Northstar Spectrum to Northstar Spectrum for a 90 -day period beginning October 27, 2020, which Northstar Manager waived in connection with the Northstar Purchase Agreement. Northstar Manager has the right to put its interest in Northstar Spectrum to Northstar Spectrum, which expires on January 25, 2022. Northstar Wireless Credit Agreement. On October 1, 2015, American II, Northstar Wireless and Northstar Spectrum amended the First Amended and Restated Credit Agreement dated October 13, 2014, by and among American II, as Lender, Northstar Wireless, as Borrower, and Northstar Spectrum, as Guarantor (as amended, the “Northstar Credit Agreement”), to provide, among other things, that: (i) the Northstar Interim Payment and any Northstar Re-Auction Payment will be made by American II directly to the FCC and will be deemed as loans under the Northstar Credit Agreement; (ii) the FCC is a third-party beneficiary with respect to American II’s obligation to pay the Northstar Interim Payment and any Northstar Re-Auction Payment; (iii) in the event that the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are less than the winning bids of Northstar Wireless, the purchaser, assignee or transferee of any AWS-3 Licenses from Northstar Wireless is obligated to pay its pro-rata share of the difference (and Northstar Wireless remains jointly and severally liable for such pro-rata share); and (iv) during the period between the due date for the payments guaranteed under the FCC Northstar Guaranty (as discussed below) and the date such guaranteed payments are paid, Northstar Wireless’ payment obligations to American II under the Northstar Credit Agreement will be subordinated to such guaranteed payments. On March 31, 2018, American II, Northstar Wireless, and Northstar Spectrum amended and restated the Northstar Credit Agreement, to, among other things: (i) lower the interest rate on the remaining On June 7, 2018, American II, Northstar Wireless, and Northstar Spectrum amended and restated the Northstar Credit Agreement to, among other things: (i) extend the maturity date on the remaining loan balance from SNR Operative Agreements SNR LLC Agreement . SNR HoldCo is governed by a limited liability company agreement by and between American III and SNR Management (the “SNR HoldCo LLC Agreement”). Pursuant to the SNR HoldCo LLC Agreement, American III and SNR Management made pro-rata equity contributions in SNR HoldCo. On March 31, 2018, American III, SNR Holdco, SNR Wireless Management, and John Muleta amended and restated the SNR HoldCo LLC Agreement , to, among other things: (i) exchange The SNR Preferred Interests: (a) are non-voting; (b) have a On June 7, 2018, American III, SNR Holdco, SNR Management, and John Muleta amended and restated the Second Amended and Restated Limited Liability Company Agreement, dated March 31, 2018, by and among American III, SNR Holdco, SNR Management and John Muleta, to, among other things: (i) reduce the mandatory quarterly distribution for the SNR Preferred Interests from remove American III’s tag along rights with respect to SNR Management’s sale of its interest in SNR Holdco. SNR Management had the right to put its interest in SNR Holdco to SNR Holdco for a 90 -day period from October 27, 2020. The First SNR Put Window closed in the first quarter of 2021, was not exercised and expired in January 2021. SNR Management has the right to put its interest in SNR Holdco to SNR Holdco, which expires on January 25, 2022. SNR Credit Agreement . On October 1, 2015, American III, SNR Wireless and SNR HoldCo amended the First Amended and Restated Credit Agreement dated October 13, 2014, by and among American III, as Lender, SNR Wireless, as Borrower, and SNR HoldCo, as Guarantor (as amended, the “SNR Credit Agreement”), to provide, among other things, that: (i) the SNR Interim Payment and any SNR Re-Auction Payment will be made by American III directly to the FCC and will be deemed as loans under the SNR Credit Agreement; (ii) the FCC is a third-party beneficiary with respect to American III’s obligation to pay the SNR Interim Payment and any SNR Re-Auction Payment; (iii) in the event that the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are less than the winning bids of SNR Wireless, the purchaser, assignee or transferee of any AWS-3 Licenses from SNR Wireless is obligated to pay its pro-rata share of the difference (and SNR Wireless remains jointly and severally liable for such pro-rata share); and (iv) during the period between the due date for the payments guaranteed under the FCC SNR Guaranty (as discussed below) and the date such guaranteed payments are paid, SNR Wireless’ payment obligations to American III under the SNR Credit Agreement will be subordinated to such guaranteed payments. On March 31, 2018, American III, SNR Wireless, and SNR Holdco amended and restated the SNR Credit Agreement, to, among other things: (i) lower the interest rate on the remaining On June 7, 2018, American III, SNR Wireless, and SNR Holdco amended and restated the SNR Credit Agreement to, among other things: (i) extend the maturity date on the remaining loan balance from As of September 30, 2021 and December 31, 2020, Northstar Manager’s own |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting | |
Segment Reporting | 12. Segment Reporting Operating segments are components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision maker(s) of an enterprise. Operating income is the primary measure used by our chief operating decision maker to evaluate segment operating performance. We currently operate two primary business segments: (1) Pay-TV; and (2) Wireless. See Note 1 for further information. All other and eliminations primarily include intersegment eliminations related to intercompany debt and the related interest income and interest expense, which are eliminated in consolidation. The total assets, revenue and operating income by segment were as follows: As of September 30, December 31, 2021 2020 (In thousands) Total assets: Pay-TV $ 37,751,825 $ 36,251,281 Wireless 31,902,998 29,921,237 Eliminations (28,440,586) (27,932,571) Total assets $ 41,214,237 $ 38,239,947 For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands) Revenue: Pay-TV $ 3,220,128 $ 3,190,664 $ 9,676,487 $ 9,595,131 Wireless 1,230,072 1,341,512 3,761,834 1,343,893 Eliminations (565) (585) (3,873) (2,954) Total revenue $ 4,449,635 $ 4,531,591 $ 13,434,448 $ 10,936,070 Operating income (loss): Pay-TV $ 699,730 $ 803,817 $ 2,299,387 $ 2,040,970 Wireless (1) 17,975 7,431 189,632 (447,994) Total operating income (loss) $ 717,705 $ 811,248 $ 2,489,019 $ 1,592,976 (1) The nine months ended September 30, 2020 was negatively impacted by an “Impairment of long-lived assets” of $356 million. See Note 2 for further information. Geographic Information. Revenue is attributed to geographic regions based upon the location where the goods and services are provided. All service revenue was derived from the United States. Substantially all of our long-lived assets reside in the United States. The following table summarizes revenue by geographic region: For the Three Months Ended For the Nine Months Ended September 30, September 30, Revenue: 2021 2020 2021 2020 (In thousands) United States $ 4,432,751 $ 4,516,475 $ 13,390,248 $ 10,899,922 Canada and Mexico 16,884 15,116 44,200 36,148 Total revenue $ 4,449,635 $ 4,531,591 $ 13,434,448 $ 10,936,070 The revenue from external customers disaggregated by major revenue source was as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, Category: 2021 2020 2021 2020 (In thousands) Pay-TV subscriber and related revenue $ 3,175,193 $ 3,139,575 $ 9,541,602 $ 9,455,429 Wireless services and related revenue 1,038,042 1,082,570 3,136,016 1,082,570 Pay-TV equipment sales and other revenue 44,935 51,089 134,885 139,702 Wireless equipment sales and other revenue 192,030 258,942 625,818 261,323 Eliminations (565) (585) (3,873) (2,954) Total $ 4,449,635 $ 4,531,591 $ 13,434,448 $ 10,936,070 |
Contract Balances
Contract Balances | 9 Months Ended |
Sep. 30, 2021 | |
Contract Balances | |
Contract Balances | 13. Contract Balances Our valuation and qualifying accounts as of September 30, 2021 were as follows: Allowance for credit losses Balance at Current Period Provision for Expected Credit Losses Write-offs Charged Against Allowance Balance at (In thousands) For the nine months ended September 30, 2021 $ 72,278 $ 37,222 $ (61,519) $ 47,981 Contract liabilities arise when we bill our customers and receive consideration in advance of providing the service. Contract liabilities are recognized as revenue when the service has been provided to the customer. Contract liabilities are recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets. As of September 30, December 31, 2021 2020 (In thousands) Contract liabilities $ 720,889 $ 778,832 Our beginning of period contract liability recorded as customer contract revenue during 2021 was $773 million. We apply a practical expedient and do not disclose the value of the remaining performance obligations for contracts that are less than one year in duration, which represent a substantial majority of our revenue. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of our future revenue. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions | |
Related Party Transactions | 14. Related Party Transactions Related Party Transactions with EchoStar Following the Spin-off, we and EchoStar have operated as separate publicly-traded companies and neither entity has any ownership interest in the other. However, a substantial majority of the voting power of the shares of both companies is owned beneficially by Charles W. Ergen, our Chairman, and by certain entities established by Mr. Ergen for the benefit of his family. In connection with and following the Spin-off, we and EchoStar have entered into certain agreements pursuant to which we obtain certain products, services and rights from EchoStar, EchoStar obtains certain products, services and rights from us, and we and EchoStar have indemnified each other against certain liabilities arising from our respective businesses. Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses. Pursuant to the Master Transaction Agreement, among other things, EchoStar transferred to us certain assets and liabilities of its EchoStar Satellite Services segment. In connection with the Share Exchange and the Master Transaction Agreement, we and EchoStar and certain of their subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. In addition, certain agreements that we had with EchoStar have terminated, and we entered into certain new agreements with EchoStar. We also may enter into additional agreements with EchoStar in the future. The following is a summary of the terms of our principal agreements with EchoStar that may have an impact on our financial condition and results of operations. “Trade accounts receivable” As of September 30, 2021 and December 31, 2020, trade accounts receivable from EchoStar was $3 million and $1 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Condensed Consolidated Balance Sheets. “Trade accounts payable” As of September 30, 2021 and December 31, 2020, trade accounts payable to EchoStar was $10 million and $6 million, respectively. These amounts are recorded in “Trade accounts payable” on our Condensed Consolidated Balance Sheets. “Equipment sales and other revenue” During the three months ended September 30, 2021 and 2020, we received $1 million and $2 million, respectively, for services provided to EchoStar. During the nine months ended September 30, 2021 and 2020, we received million, respectively, for services provided to EchoStar. These amounts are recorded in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these revenues are discussed below. Real Estate Lease Agreements. We have entered into lease agreements pursuant to which we lease certain real estate to EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic areas, and EchoStar is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● El Paso Lease Agreement. During 2012, we began leasing certain space at 1285 Joe Battle Blvd., El Paso, Texas to EchoStar for an initial period ending on August 1, 2015, which also provides EchoStar with renewal options for four consecutive three-year terms. During the second quarter of 2015, EchoStar exercised its first renewal option for a period ending on August 1, 2018 and in April 2018 EchoStar exercised its second renewal option for a period ending in July 2021 and in May 2021 EchoStar exercised its third renewal option for a period ending in July 2024. ● 90 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 90 Inverness Circle East, Englewood, Colorado for a period ending in February 2022. EchoStar has the option to renew this lease for four three-year periods. ● Cheyenne Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar began leasing certain space from us at 530 EchoStar Drive, Cheyenne, Wyoming for a period ending in February 2019. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for 12 one-year periods. In connection with the Master Transaction Agreement, we and EchoStar amended this lease to provide EchoStar with certain space for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon 180 days ’ written notice prior to the end of the term. In March 2021, EchoStar exercised its option to renew this lease for a one-year period ending September 2022 and amended the lease to provide the option for EchoStar to renew this lease for up to three additional years. Collocation and Antenna Space Agreements 1, 2017, we entered into certain agreements pursuant to which we provide certain collocation and antenna space to HNS through February 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Englewood, Colorado; and Spokane, Washington. During August 2017, we entered into certain other agreements pursuant to which we provide certain collocation and antenna space to HNS through August 2022 at the following locations: Monee, Illinois and Spokane, Washington. HNS has the option to renew each of these agreements for periods. HNS may terminate certain of these agreements with ’ prior written notice to us at the following locations: New Braunfels, Texas; Englewood, Colorado; and Spokane, Washington. In September 2019, in connection with the Master Transaction Agreement, we entered into an agreement pursuant to which we provide HNS with certain additional collocation space in Cheyenne, Wyoming, which expired in September 2020. In October 2019, HNS provided a termination notice for its New Braunfels, Texas agreement, effective as of May 2020. The fees for the services provided under these agreements depend, among other things, on the number of racks leased and/or antennas present at the location. Also in connection with the Master Transaction Agreement, in September 2019, we entered into an agreement pursuant to which we provide HNS with antenna space and power in Cheyenne, Wyoming for a period of five years commencing no later than October 2020, with four three-year renewal terms, with prior written notice no more than 120 days but no less than 90 days prior to the end of the then-current term. TT&C Agreement – Master Transaction Agreement . In September 2019, in connection with the Master Transaction Agreement, we entered into an agreement pursuant to which we provide TT&C services to EchoStar for a period ending in September 2021, with the option for EchoStar to renew for a prior to the initial expiration (the “MTA TT&C Agreement”). The fees for services provided under the MTA TT&C Agreement are calculated at either: (i) a fixed fee or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. Either party is able to terminate the MTA TT&C Agreement for any reason upon ’ notice. In June 2021, we amended the MTA TT&C Agreement to extend the term until September 2022 and added the option for EchoStar to renew for an additional three years. “Cost of services” During the three months ended September 30, 2021 and 2020, we incurred $3 million and $5 million, respectively, of costs for services provided to us by EchoStar. During the nine months ended September 30, 2021 and 2020, we incurred million, respectively, of costs for services provided to us by EchoStar. These amounts are recorded in “Cost of services” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Hughes Broadband Distribution Agreement . Effective October 1, 2012, dishNET Satellite Broadband L.L.C. (“dishNET Satellite Broadband”), our indirect wholly-owned subsidiary, and HNS entered into a Distribution Agreement (the “Distribution Agreement”) pursuant to which dishNET Satellite Broadband has the right, but not the obligation, to market, sell and distribute the HNS satellite Internet service (the “Service”). dishNET Satellite Broadband pays HNS a monthly per subscriber wholesale service fee for the Service based upon the subscriber’s service level, and, beginning January 1, 2014, certain volume subscription thresholds. The Distribution Agreement also provides that dishNET Satellite Broadband has the right, but not the obligation, to purchase certain broadband equipment from HNS to support the sale of the Service. On February 20, 2014, dishNET Satellite Broadband and HNS amended the Distribution Agreement which, among other things, extended the initial term of the Distribution Agreement through March 1, 2024. Thereafter, the Distribution Agreement automatically renews for successive one year terms unless either party gives written notice of its intent not to renew to the other party at least 180 days before the expiration of the then-current term. Upon expiration or termination of the Distribution Agreement, the parties will continue to provide the Service to the then-current dishNET subscribers pursuant to the terms and conditions of the Distribution Agreement. EchoStar IX . We lease certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally have the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis. Nimiq 5 Agreement . During 2009, EchoStar entered into a DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). The Telesat Transponder Agreement was transferred to us on September 10, 2019 pursuant to the Master Transaction Agreement. Also, in September 2019, we and EchoStar entered into an agreement whereby we compensate EchoStar for retaining certain obligations to Telesat related to our performance under the Telesat Transponder Agreement. “Cost of sales – equipment and other” During each of the three months ended September 30, 2021 and 2020, we incurred $1 million for satellite hosting, operations and maintenance services as well as transmission of certain data. During the nine months ended September 30, 2021 and 2020, we incurred $4 million and $3 million, respectively, for satellite hosting, operations and maintenance services as well as transmission of certain data. These amounts are recorded in “Cost of sales – equipment and other” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. DBSD North America Agreement. On March 9, 2012, we completed the DBSD Transaction. During the second quarter of 2011, EchoStar acquired Hughes. Prior to our acquisition of DBSD North America and EchoStar’s acquisition of Hughes, DBSD North America and HNS entered into an agreement pursuant to which HNS provides, among other things, hosting, operations and maintenance services for DBSD North America’s satellite gateway and associated ground infrastructure. This agreement generally may be terminated by us at any time for convenience. TerreStar Agreement . On March 9, 2012, we completed the TerreStar Transaction. Prior to our acquisition of substantially all the assets of TerreStar and EchoStar’s acquisition of Hughes, TerreStar and HNS entered into various agreements pursuant to which HNS provides, among other things, hosting, operations and maintenance services for TerreStar’s satellite gateway and associated ground infrastructure. These agreements generally may be terminated by us at any time for convenience. Hughes Equipment and Services Agreement. In February 2019, we and HNS entered into an agreement pursuant to which HNS will provide us with HughesNet Service and HughesNet equipment for the transmission of certain data related to our 5G Network Deployment. This agreement has an initial term of five years with automatic renewal for successive one-year terms unless terminated by DISH Network with at least 180 days ’ written notice to HNS or by HNS with at least 365 days ’ written notice to DISH Network. “Selling, general and administrative expenses” During the three months ended September 30, 2021 and 2020, we incurred $4 million and $3 million, respectively, for selling, general and administrative expenses for services provided to us by EchoStar. During the nine months ended September 30, 2021 and 2020, we incurred $16 million and $10 million, respectively, for selling, general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. We have entered into lease agreements pursuant to which we lease certain real estate from EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic area, and we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado was for a period ending on December 31, 2019. In December 2020, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2021. ● 100 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, we lease certain space from EchoStar at 100 Inverness Terrace East, Englewood, Colorado for a period ending in December 2021. This agreement may be terminated by either party upon 180 days ’ prior notice. Professional Services Agreement. Prior to 2010, in connection with the Spin-off, we entered into various agreements with EchoStar including the Transition Services Agreement, Satellite Procurement Agreement and Services Agreement, which all expired on January 1, 2010 and were replaced by a Professional Services Agreement. During 2009, we and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from us, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Additionally, we and EchoStar agreed that we shall continue to have the right, but not the obligation, to engage EchoStar to manage the process of procuring new satellite capacity for us (previously provided under the Satellite Procurement Agreement) and receive logistics, procurement and quality assurance services from EchoStar (previously provided under the Services Agreement) and other support services. In connection with the completion of the Share Exchange on February 28, 2017, DISH Network and EchoStar amended the Professional Services Agreement to, among other things, provide certain transition services to each other related to the Share Exchange Agreement. In addition, pursuant to the Master Transaction Agreement, we and EchoStar amended the Professional Services Agreement effective September 10, 2019 to, among other things, provide certain transition services to each other related to the Master Transaction Agreement and to remove certain services no longer necessary as a result of the Master Transaction Agreement. See above for further information on the Master Transaction Agreement. During March 2020, we and EchoStar added a service under the Professional Services Agreement whereby we provide EchoStar with rights to use certain satellite capacity in exchange for certain credits to amounts owed by us to EchoStar under the TerreStar Agreement described above. The Professional Services Agreement renewed on January 1, 2021 for an additional one-year period until January 1, 2022 and renews automatically for successive one-year periods thereafter, unless terminated earlier by either party upon at least 60 days ’ notice. However, either party may terminate the Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days ’ notice. Revenue for services provided by us to EchoStar under the Professional Services Agreement is recorded in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). City of Hallandale. Under this settlement agreement, we expect to contribute an immaterial amount to the settlement. The settlement is subject to court approval. The parties’ joint motion for preliminary approval has been approved and the final approval hearing has been scheduled for December 6, 2021. See Note 11 for further information. Other Agreements - EchoStar Tax Sharing Agreement. In connection with the Spin-off, we entered into a tax sharing agreement (the “Tax Sharing Agreement”) with EchoStar which governs our respective rights, responsibilities and obligations after the Spin-off with respect to taxes for the periods ending on or before the Spin-off. Generally, all pre-Spin-off taxes, including any taxes that are incurred as a result of restructuring activities undertaken to implement the Spin-off, are borne by us, and we will indemnify EchoStar for such taxes. However, we are not liable for and will not indemnify EchoStar for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Internal Revenue Code of 1986, as amended (the “Code”) because of: (i) a direct or indirect acquisition of any of EchoStar’s stock, stock options or assets; (ii) any action that EchoStar takes or fails to take; or (iii) any action that EchoStar takes that is inconsistent with the information and representations furnished to the Internal Revenue Service (“IRS”) in connection with the request for the private letter ruling, or to counsel in connection with any opinion being delivered by counsel with respect to the Spin-off or certain related transactions. In such case, EchoStar is solely liable for, and will indemnify us for, any resulting taxes, as well as any losses, claims and expenses. The Tax Sharing Agreement will only terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed. In light of the Tax Sharing Agreement, among other things, and in connection with our consolidated federal income tax returns for certain tax years prior to and for the year of the Spin-off, during the third quarter of 2013, we and EchoStar agreed upon a supplemental allocation of the tax benefits arising from certain tax items resolved in the course of the IRS’ examination of these consolidated tax returns. As a result, we agreed to pay EchoStar million of the tax benefit we received or will receive. This resulted in a reduction of our recorded unrecognized tax benefits and this amount was reclassified to a long-term payable to EchoStar within “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets during the third quarter of 2013. Any payment to EchoStar, including accrued interest, will be made at such time as EchoStar would have otherwise been able to realize such tax benefit. In addition, during the third quarter of 2013, we and EchoStar agreed upon a tax sharing arrangement for filing certain combined state income tax returns and a method of allocating the respective tax liabilities between us and EchoStar for such combined returns, through the taxable period ending on December 31, 2017 (the “State Tax Arrangement”). During the third quarter of 2018, we and EchoStar amended the Tax Sharing Agreement and the 2013 agreements (the “Amendment”). Under the Amendment, among other things, we are entitled to apply the benefit of EchoStar’s 2009 net operating losses to our federal tax return for the year ended December 31, 2008, in exchange for paying EchoStar over time the value of the net annual federal income taxes paid by EchoStar that would have been otherwise offset by their 2009 net operating loss. In addition, the Amendment extends the term of the State Tax Arrangement for filing certain combined state income tax returns to the earlier to occur of (1) termination of the Tax Sharing Agreement, (2) a change in control of either us or EchoStar or, (3) for any particular state, if we and EchoStar no longer file a combined tax return for such state. Beginning in 2020, DISH Network and EchoStar no longer file combined tax returns in any states. Tax Matters Agreement – Share Exchange In addition, we have agreed to indemnify EchoStar if the Transferred Businesses are acquired, either directly or indirectly (e.g., via an acquisition of us), by one or more persons and such acquisition results in the Share Exchange not qualifying for tax free treatment. The Tax Matters Agreement supplements the Tax Sharing Agreement described above, which continues in full force and effect. Tax Matters Agreement – Master Transaction Agreement In addition, we have agreed to indemnify EchoStar if the BSS Business is acquired, either directly or indirectly (e.g., via an acquisition of us), by one or more persons and such acquisition results in the Master Transaction Agreement not qualifying for tax free treatment. The Tax Matters Agreement - Master Transaction Agreement supplements the Tax Sharing Agreement described above, which continues in full force and effect. Patent Cross-License Agreements . 2011, we and EchoStar entered into separate patent cross-license agreements with the same third party whereby: (i) EchoStar and such third-party licensed their respective patents to each other subject to certain conditions; and (ii) we and such third-party licensed our respective patents to each other subject to certain conditions (each, a “Cross-License Agreement”). Each Cross License Agreement covers patents acquired by the respective party prior to January 1, 2017 and aggregate payments under both Cross-License Agreements . In December 2016, we and EchoStar independently exercised our respective options to extend each Cross-License Agreement to include patents acquired by the respective party prior to January 1, 2022. Rovi License Agreement. Hughes Broadband Master Services Agreement. 2017, DISH Network L.L.C. (“DNLLC”) and HNS entered into the MSA pursuant to which DNLLC, among other things: (i) has the right, but not the obligation, to market, promote and solicit orders for the Hughes broadband satellite service Payments from HNS for services provided are recorded in “Service revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). For the three months ended September 30, 2021 and 2020, these payments were $2 million and $4 million, respectively. For the nine months ended September 30, 2021 and 2020, these payments were $6 million and $13 million, respectively. The MSA has an initial term of terms. After the first anniversary of the MSA, either party has the ability to terminate the MSA, in whole or in part, for any reason upon at least 90 days’ notice to the other party. Upon expiration or termination of the MSA, HNS will continue to provide the Hughes service to subscribers and make certain payments to DNLLC pursuant to the terms and conditions of the MSA. For the three months ended September 30, 2021 and 2020, we purchased broadband equipment from HNS of $1 million and $4 million, respectively, under the MSA. For the nine months ended September 30, 2021 and 2020, we purchased broadband equipment from HNS of $4 million and $11 million, respectively, under the MSA. Employee Matters Agreement – Share Exchange Employee Matters Agreement – Master Transaction Agreement Intellectual Property and Technology License Agreement – Share Exchange In addition, we granted a license back to EchoStar, among other things, for the continued use of all intellectual property and technology transferred to us pursuant to the Share Exchange Agreement that is used in EchoStar’s retained businesses. Intellectual Property and Technology License Agreement – Master Transaction Agreement In addition, we granted a license back to EchoStar, among other things, for the continued use of all intellectual property and technology transferred to us pursuant to the Master Transaction Agreement that is used in EchoStar’s retained businesses. Related Party Transactions with NagraStar L.L.C. We own a 50% interest in NagraStar, a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Certain payments related to NagraStar are recorded in “Cost of services” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). In addition, certain other payments are initially included in “Inventory” and are subsequently capitalized as “Property and equipment, net” on our Condensed Consolidated Balance Sheets or expensed as “Selling, general and administrative expenses” or “Cost of services” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) when the equipment is deployed. We record all payables in “Trade accounts payable” or “Other accrued expenses” on our Condensed Consolidated Balance Sheets. Our investment in NagraStar is accounted for using the equity method. The table below summarizes our transactions with NagraStar: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands) Purchases (including fees): Purchases from NagraStar $ 11,451 $ 14,073 $ 35,124 $ 41,424 As of September 30, December 31, 2021 2020 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 7,588 $ 9,038 Commitments to NagraStar $ 5,980 $ 3,260 Related Party Transactions with Dish Mexico Dish Mexico, S. de R.L. de C.V. (“Dish Mexico”) is an entity that provides direct-to-home satellite services in Mexico, which is owned 49 % by EchoStar. We provide certain broadcast services and certain satellite services to Dish Mexico, which are recorded in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The table below summarizes our transactions with Dish Mexico: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands) Sales: Satellite capacity $ 5,866 $ 5,462 $ 17,597 $ 16,387 Uplink services 1,255 1,207 3,700 3,876 Total $ 7,121 $ 6,669 $ 21,297 $ 20,263 As of September 30, December 31, 2021 2020 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 12,201 $ 17,029 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Principles of Consolidation | Principles of Consolidation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments and recorded at fair value with changes recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Northstar Wireless . Northstar Wireless is a wholly-owned subsidiary of Northstar Spectrum, which is an entity owned by Northstar Manager, LLC (“Northstar Manager”) and us. Under the applicable accounting guidance in ASC 810, Northstar Spectrum is considered a variable interest entity and, based on the characteristics of the structure of this entity and in accordance with the applicable accounting guidance, we consolidate Northstar Spectrum into our financial statements. The Northstar Operative Agreements, as amended, provide for, among other things, that Northstar Manager has the ability, but not the obligation, to require Northstar Spectrum to purchase Northstar Manager’s ownership interests in Northstar Spectrum (the “Northstar Put Right”) for a purchase price that equals its equity contribution to Northstar Spectrum plus a fixed annual rate of return. The First Northstar Put Window closed in the first quarter of 2021. The Second Northstar Put Window is currently open and expires on January 25, 2022. Northstar Purchase Agreement . On December 30, 2020, through our wholly owned subsidiary American II, we entered into a Purchase Agreement (the “Northstar Purchase Agreement”) with Northstar Manager and Northstar Spectrum, pursuant to which American II purchased In the Northstar Purchase Agreement, Northstar Manager waived its right to exercise the Northstar Put Right under the First Northstar Put Window. Northstar Manager retains its right to exercise the Northstar Put Right during the Second Northstar Put Window. In the event that the Northstar Put Right is exercised by Northstar Manager, the consummation of the sale will be subject to FCC approval. Northstar Spectrum does not have a call right with respect to Northstar Manager’s ownership interests in Northstar Spectrum. Although Northstar Manager is the sole manager of Northstar Spectrum, Northstar Manager’s ownership interest is considered temporary equity under the applicable accounting guidance and is thus recorded as part of “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. Northstar Manager’s ownership interest in Northstar Spectrum was initially accounted for at fair value. Subsequently, Northstar Manager’s ownership interest in Northstar Spectrum is increased by the fixed annual rate of return through “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The operating results of Northstar Spectrum attributable to Northstar Manager are recorded as “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 11 for further information. SNR Wireless . SNR Wireless is a wholly-owned subsidiary of SNR HoldCo, which is an entity owned by SNR Wireless Management, LLC (“SNR Management”) and us. Under the applicable accounting guidance in ASC 810, SNR HoldCo is considered a variable interest entity and, based on the characteristics of the structure of this entity and in accordance with the applicable accounting guidance, we consolidate SNR HoldCo into our financial statements. The SNR Operative Agreements, as amended, provide for, among other things, that SNR Management has the ability, but not the obligation, to require SNR HoldCo to purchase SNR Management’s ownership interests in SNR HoldCo (the “SNR Put Right”) for a purchase price that equals its equity contribution to SNR HoldCo plus a fixed annual rate of return. The First SNR Put Window closed in the first quarter of 2021 . The Second SNR Put Window is currently open and expires on January 25, 2022. In the event that the SNR Put Right is exercised by SNR Management, the consummation of the sale will be subject to FCC approval. SNR HoldCo does not have a call right with respect to SNR Management’s ownership interests in SNR HoldCo. Although SNR Management is the sole manager of SNR HoldCo, SNR Management’s ownership interest is considered temporary equity under the applicable accounting guidance and is thus recorded as part of “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. SNR Management’s ownership interest in SNR HoldCo was initially accounted for at fair value. Subsequently, SNR Management’s ownership interest in SNR HoldCo is increased by the fixed annual rate of return through “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The operating results of SNR HoldCo attributable to SNR Management are recorded as “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 11 for further information. As of September 30, 2021 and December 31, 2020, Northstar Manager’s ownership interest in Northstar Spectrum and SNR Management’s ownership interest in SNR HoldCo was $382 million and $351 million, respectively, recorded as “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for credit losses (including those related to our installment billing programs), self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, the fair value of our option to purchase T- Mobile’s 800 MHz spectrum, relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review our long-lived assets and identifiable finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For assets which are held and used in operations, the asset would be impaired if the carrying amount of the asset (or asset group) exceeded its undiscounted future net cash flows. Once an impairment is determined, the actual impairment recognized is the difference between the carrying amount and the fair value as estimated using one of the following approaches: income, cost and/or market. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The carrying amount of a long-lived asset or asset group is considered impaired when the anticipated undiscounted cash flows from such asset or asset group is less than its carrying amount. In that event, a loss is recorded in “Impairment of long-lived assets” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) based on the amount by which the carrying amount exceeds the fair value of the long-lived asset or asset group. Fair value, using the income approach, is determined primarily using a discounted cash flow model that uses the estimated cash flows associated with the asset or asset group under review, discounted at a rate commensurate with the risk involved. Fair value, utilizing the cost approach, is determined based on the replacement cost of the asset reduced for, among other things, depreciation and obsolescence. Fair value, utilizing the market approach, benchmarks the fair value against the carrying amount. DBS Satellites . We currently evaluate our DBS satellite fleet for impairment as one asset group whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. We do not believe any triggering event has occurred which would indicate impairment as of September 30, 2021 or December 31, 2020. We will continue to monitor the DBS satellite fleet for indicators of impairment, including monitoring the impact of the COVID-19 pandemic on all aspects of our business. AWS-4 Satellites. We historically evaluated our AWS-4 satellite fleet for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. In light of, among other things, certain developments related to the Sprint/T-Mobile merger, during the first quarter of 2020, we determined that revisions to the AWS-4 build-out deadlines were probable, which we determined to be a triggering event. Accordingly, we quantitatively assessed the value of the AWS-4 satellites (T1 and D1) and wrote down the fair value of the satellites to their estimated fair value of million non-cash impairment charge in “Impairment of long-lived assets” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Narrowband IoT network. As discussed in Note 11, in March 2017, we notified the FCC that we planned to deploy a narrowband IoT network. In October 2019, we paused work on the narrowband IoT deployment. In light of, among other things, certain developments related to the Sprint/T-Mobile merger, during the first quarter of 2020, we determined that the revision of certain of our build-out deadlines were probable. Based on this, we no longer intended to complete our narrowband IoT deployment, which we considered a triggering event. As such, during the first quarter of 2020, we reviewed the capitalized costs of equipment, labor and other assets related to the narrowband IoT deployment, including our operating lease assets, and impaired those items that would not be utilized in our ongoing 5G Network Deployment, resulting in a million non-cash impairment charge in “Impairment of long-lived assets” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Impairment of long-lived assets recorded during the nine months ended September 30, 2020 consisted of the following: For the Nine Months Ended September 30, 2020 (In thousands) T1 satellite $ 48,120 D1 satellite 55,000 Construction in progress related to narrowband IoT deployment 226,742 Operating lease assets related to narrowband IoT deployment 26,556 Impairment of long-lived assets $ 356,418 |
Capitalized Interest | Capitalized Interest We capitalize interest associated with the acquisition or construction of certain assets, including, among other things, our wireless spectrum licenses, build-out costs associated with our 5G Network Deployment and satellites. Capitalization of interest begins when, among other things, steps are taken to prepare the asset for its intended use and ceases when the asset is ready for its intended use or when these activities are substantially suspended. We are currently preparing for the commercialization of our wireless spectrum licenses, and Northstar Wireless and SNR Wireless are also preparing for the commercialization of their AWS-3 Licenses. As a result, the interest expense related to the carrying amount of these wireless spectrum licenses is being capitalized. The qualifying assets for these wireless spectrum licenses exceeds the carrying value of our long-term debt and finance lease obligations, therefore materially all of our interest expense is being capitalized. |
Business Combinations | Business Combinations When we acquire a business, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component using various valuation techniques, including the market approach, income approach and/or cost approach. The accounting standard for business combinations requires identifiable assets, liabilities, noncontrolling interests and goodwill acquired to be recorded at acquisition date fair values. Transaction costs related to the acquisition of the business are expensed as incurred. Costs associated with the issuance of debt associated with a business combination are capitalized and included as a yield adjustment to the underlying debt’s stated rate. Acquired intangible assets other than goodwill are amortized over their estimated useful lives unless the lives are determined to be indefinite. Amortization of these intangible assets in general are recognized on a straight-line basis over an average finite useful life primarily ranging from approximately one or in relation to the estimated discounted cash flows over the life of the intangible asset. See Note 5 for further information on the Boost Mobile Acquisition and Ting Mobile Acquisition. |
Fair Value Measurements | Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: ● Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ● Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and derivative financial instruments indexed to marketable investment securities; and ● Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of September 30, 2021 and December 31, 2020, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 6 for the fair value of our marketable investment securities and derivative instruments. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 10 for the fair value of our long-term debt. |
Convertible Long-Term Debt | Convertible Long-Term Debt Historically, for embedded conversion features, we have valued and bifurcated the conversion option (the “equity component”) from the host debt instrument. The initial value of the equity component on the was recorded in “Additional paid-in capital” within “Stockholders’ Equity (Deficit)” on our Condensed Consolidated Balance Sheets with the offset recorded as the debt discount. In accordance with Debt – Debt with Conversion and Other Options and Derivatives and Hedging – Contracts in Entity’s Own Equity Additional paid-in capital Additional paid-in capital |
Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber | Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs in both our Pay-TV and Wireless segments, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the three months ended September 30, 2021 and 2020, we capitalized $98 million and $131 million, respectively, under these programs. The amortization expense related to these programs was $109 million and $43 million for the three months ended September 30, 2021 and 2020, respectively. During the nine months ended September 30, 2021 and 2020, we capitalized million for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021 and December 31, 2020, we had a total of |
Advertising Costs | Advertising Costs We recognize advertising expense when incurred as a component of selling, general and administrative expense. Advertising expenses totaled million for the three months ended September 30, 2021 and 2020, respectively. Advertising expenses totaled |
Research and Development | Research and Development Research and development costs are expensed as incurred and are included in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) . million for the three months ended September 30, 2021 and 2020, respectively. Research and development costs totaled $21 million and $17 million for the nine months ended September 30, 2021 and 2020, respectively. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Summary of Significant Accounting Policies | |
Impairment of long-lived assets | Impairment of long-lived assets recorded during the nine months ended September 30, 2020 consisted of the following: For the Nine Months Ended September 30, 2020 (In thousands) T1 satellite $ 48,120 D1 satellite 55,000 Construction in progress related to narrowband IoT deployment 226,742 Operating lease assets related to narrowband IoT deployment 26,556 Impairment of long-lived assets $ 356,418 |
Basic and Diluted Net Income _2
Basic and Diluted Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Basic and Diluted Net Income (Loss) Per Share | |
Table presents EPS amounts for all periods and the basic and diluted weighted-average shares outstanding used in the calculation | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands, except per share amounts) Net income (loss) $ 567,520 $ 532,959 $ 1,890,534 $ 1,112,638 Less: Net income (loss) attributable to noncontrolling interests, net of tax 10,478 28,360 32,221 82,597 Net income (loss) attributable to DISH Network - Basic 557,042 504,599 1,858,313 1,030,041 Interest on dilutive Convertible Notes, net of tax (1) — — — — Net income (loss) attributable to DISH Network - Diluted $ 557,042 $ 504,599 $ 1,858,313 $ 1,030,041 Weighted-average common shares outstanding - Class A and B common stock: Basic 528,229 525,532 527,503 524,329 Dilutive impact of Convertible Notes (2) 107,016 58,192 107,016 58,192 Dilutive impact of stock awards outstanding 1,195 233 699 74 Diluted 636,440 583,957 635,218 582,595 Earnings per share - Class A and B common stock: Basic net income (loss) per share attributable to DISH Network $ 1.05 $ 0.96 $ 3.52 $ 1.96 Diluted net income (loss) per share attributable to DISH Network $ 0.88 $ 0.86 $ 2.93 $ 1.77 (1) For both the three and nine months ended September 30, 2021 and 2020, materially all of our interest expense was capitalized. See Note 2 for further information. (2) The increase resulted from the issuance of our 0% Convertible Notes due 2025 on December 21, 2020. |
Schedule of anti-dilutive securities not included in the diluted EPS calculation | As of September 30, 2021 2020 (In thousands) Anti-dilutive stock awards 6,898 8,761 Performance/market based options (1) 15,425 5,317 Restricted Performance Units/Awards 1,402 1,787 Common stock warrants 46,029 46,029 Total 69,754 61,894 (1) The increase primarily resulted from the grant of the Ergen 2020 Performance Award during the fourth quarter of 2020 , as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020. |
Supplemental Data - Statement_2
Supplemental Data - Statements of Cash Flows (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Supplemental Data - Statements of Cash Flows | |
Schedule of supplemental cash flow and other non-cash data | For the Nine Months Ended September 30, 2021 2020 (In thousands) Cash paid for interest (including capitalized interest) $ 679,047 $ 647,572 Cash received for interest 3,002 5,512 Cash paid for income taxes 79,528 22,939 Capitalized interest (1) 599,215 685,749 Employee benefits paid in Class A common stock 30,321 28,301 Convertible debt reclassified per ASU 2020-06 (1) 1,051,344 — Deferred taxes reclassified per ASU 2020-06 (1) 245,778 — Vendor financing 26,463 95,695 FCC licenses reclassification (2) 915,449 — Wireless equipment 258,883 2,983 (1) See Note 2 for further information. (2) See Note 11 for further information . |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Acquisition [Line Items] | |
Schedule of consideration transferred | As of July 1, 2020 (In thousands) Cash consideration (1) $ 1,400,000 Net working capital (2) 33,524 Other funding (3) (87,500) Total consideration transferred $ 1,346,024 (1) Represents agreed upon purchase price pursuant to the APA paid to T-Mobile on July 1, 2020. (2) Represents the assigned value of net working capital acquired under the APA. During the third quarter of 2021, we obtained a favorable determination pursuant to the arbitration procedures under our APA with T-Mobile with respect to the disputed net working capital items . The resulting (3) Represents receipt of payment from Softbank in connection with the Boost Mobile Acquisition on July 1, 2020. |
Boost Mobile Acquisition [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | As of July 1, 2020 (In thousands) Trade accounts receivable $ 514,786 Inventory 141,718 Other current assets 3,000 Intangibles 591,000 Goodwill 91,220 Other noncurrent assets 713,000 Total assets 2,054,724 Trade accounts payable and other accrued expenses 533,967 Deferred revenue and other 174,733 Total liabilities 708,700 Total purchase price $ 1,346,024 |
Marketable Investment Securit_2
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |
Schedule of marketable investment securities, restricted cash and cash equivalents, and other investment securities | As of September 30, December 31, 2021 2020 (In thousands) Marketable investment securities: Current marketable investment securities: Strategic - available-for-sale $ 194 $ 195 Strategic - trading/equity 3,340 — Other 2,964,011 362,758 Total current marketable investment securities 2,967,545 362,953 Restricted marketable investment securities (1) 40,794 24,467 Total marketable investment securities 3,008,339 387,420 Restricted cash and cash equivalents (1) 64,244 83,902 Other investment securities: Other investment securities 155,034 149,706 Total other investment securities 155,034 149,706 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 3,227,617 $ 621,028 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets. |
Schedule of fair value measurements | As of September 30, 2021 December 31, 2020 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 2,304,378 $ 73,878 $ 2,230,500 $ — $ 3,330,296 $ 363,123 $ 2,967,173 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ — $ — $ — $ — $ 65,992 $ 65,992 $ — $ — Commercial paper 2,612,422 — 2,612,422 — 298,435 — 298,435 — Corporate securities 389,891 — 389,891 — 22,552 — 22,552 — Other 2,686 — 2,492 194 441 — 246 195 Equity securities 3,340 3,340 — — — — — — Total $ 3,008,339 $ 3,340 $ 3,004,805 $ 194 $ 387,420 $ 65,992 $ 321,233 $ 195 |
Schedule of gains and losses on sales and changes in carrying amounts of investments | For the Three Months Ended For the Nine Months Ended September 30, September 30, Other, net: 2021 2020 2021 2020 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ (1,634) $ 87 $ (1,316) $ 177 Derivative instruments - net realized and/or unrealized gains (losses) (7,380) (12,450) (18,380) (12,450) Costs related to early redemption of debt — — (3,587) — Equity in earnings (losses) of affiliates 424 (824) 1,957 (221) Other (Note 5) 39,659 (13) 39,924 902 Total $ 31,069 $ (13,200) $ 18,598 $ (11,592) |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory | |
Schedule of inventory | As of September 30, December 31, 2021 2020 (In thousands) Finished goods $ 429,925 $ 337,787 Work-in-process and service repairs 17,044 25,621 Raw materials 23,857 16,941 Total inventory $ 470,826 $ 380,349 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Depreciable As of Life September 30, December 31, (In Years) 2021 2020 (In thousands) Equipment leased to customers 2 - 5 $ 1,590,620 $ 1,736,660 Satellites 4 - 15 1,734,024 1,734,024 Satellites acquired under finance lease agreements 10 - 15 888,940 888,940 Furniture, fixtures, equipment and other 2 - 20 2,179,298 2,091,271 Buildings and improvements 5 - 40 373,749 370,941 Land - 17,513 17,810 Construction in progress - 858,782 126,303 Total property and equipment 7,642,926 6,965,949 Accumulated depreciation (4,909,124) (4,783,616) Property and equipment, net $ 2,733,802 $ 2,182,333 |
Schedule of Construction in progress | As of September 30, December 31, 2021 2020 (In thousands) Pay-TV $ 37,449 $ 53,486 Wireless 821,333 72,817 Total construction in progress $ 858,782 $ 126,303 |
Schedule of depreciation and amortization expense | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands) Equipment leased to customers $ 60,616 $ 71,568 $ 188,405 $ 220,797 Satellites 47,833 50,193 146,645 152,530 Buildings, furniture, fixtures, equipment and other 32,176 32,303 92,418 97,679 Intangible assets (1) 36,666 45,019 126,598 47,021 Total depreciation and amortization $ 177,291 $ 199,083 $ 554,066 $ 518,027 (1) The increase resulted from the Boost Mobile Acquisition, the Ting Mobile Acquisition and the Republic Wireless Acquisition. See Note 5 for further information. |
Schedule of pay-TV satellite fleet | As of September 30, 2021, our pay-TV satellite fleet consisted of the following: Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar VII February 2002 119 N/A 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 67.9 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2022 Nimiq 5 September 2009 72.7 September 2024 QuetzSat-1 September 2011 77 November 2021 (1) See Note 14 for further information on our Related Party Transactions with EchoStar. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases | |
Components of Lease Expense | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands) Operating lease cost $ 14,004 $ 18,281 $ 47,585 $ 54,130 Short-term lease cost (1) 2,488 2,726 9,686 8,284 Finance lease cost: Amortization of right-of-use assets 17,829 17,829 53,488 53,488 Interest on lease liabilities 3,467 5,070 11,635 16,326 Total finance lease cost 21,296 22,899 65,123 69,814 Total lease costs $ 37,788 $ 43,906 $ 122,394 $ 132,228 (1) Leases that have terms of 12 months or less. |
Summary of Supplemental cash flow information related to leases | For the Nine Months Ended September 30, 2021 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 52,220 $ 54,611 Operating cash flows from finance leases $ 9,932 $ 16,326 Financing cash flows from finance leases $ 49,873 $ 47,301 Right-of-use assets obtained in exchange for lease obligations: Operating leases (1) $ 799,261 $ 41,665 Finance leases $ — $ — (1) The increase in operating lease assets primarily related to communication tower leases. |
Summary of supplemental balance sheet information related to leases | As of September 30, December 31, 2021 2020 (In thousands) Operating Leases: Operating lease assets (1) $ 853,140 $ 104,271 Other current liabilities $ 53,257 $ 56,856 Operating lease liabilities (1) 818,931 63,526 Total operating lease liabilities $ 872,188 $ 120,382 Finance Leases: Property and equipment, gross $ 889,708 $ 889,708 Accumulated depreciation (807,780) (754,292) Property and equipment, net $ 81,928 $ 135,416 Other current liabilities $ 39,221 $ 58,379 Other long-term liabilities 73,080 103,795 Total finance lease liabilities $ 112,301 $ 162,174 Weighted Average Remaining Lease Term: Operating leases (1) 12.6 years 2.8 years Finance leases 2.7 years 3.1 years Weighted Average Discount Rate: Operating leases 4.5% 4.2% Finance leases 10.8% 10.4% (1) The increase in operating lease assets and liabilities primarily related to communication tower leases. |
Summary of maturities of finance lease liabilities | Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2021 (remaining three months) $ 19,403 $ 10,498 $ 29,901 2022 70,974 48,307 119,281 2023 70,234 40,942 111,176 2024 72,764 30,707 103,471 2025 74,821 — 74,821 Thereafter 905,368 — 905,368 Total lease payments 1,213,564 130,454 1,344,018 Less: Imputed interest (341,376) (18,153) (359,529) Total 872,188 112,301 984,489 Less: Current portion (53,257) (39,221) (92,478) Long-term portion of lease obligations $ 818,931 $ 73,080 $ 892,011 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Long-Term Debt and Finance Lease Obligations | |
Schedule of carrying and fair values of the entity's debt facilities | As of September 30, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value (In thousands) 6 3/4% Senior Notes due 2021 (1) $ — $ — $ 2,000,000 $ 2,047,260 5 7/8% Senior Notes due 2022 (2) 2,000,000 2,063,900 2,000,000 2,095,820 5% Senior Notes due 2023 1,500,000 1,558,860 1,500,000 1,566,300 5 7/8% Senior Notes due 2024 2,000,000 2,157,200 2,000,000 2,099,580 2 3/8% Convertible Notes due 2024 1,000,000 979,520 1,000,000 949,350 0% Convertible Notes due 2025 2,000,000 2,393,560 2,000,000 2,010,000 7 3/4% Senior Notes due 2026 2,000,000 2,264,720 2,000,000 2,236,520 3 3/8% Convertible Notes due 2026 3,000,000 3,131,940 3,000,000 2,886,330 7 3/8% Senior Notes due 2028 1,000,000 1,067,980 1,000,000 1,070,130 5 1/8 % Senior Notes due 2029 1,500,000 1,472,880 — — Other notes payable 139,902 139,902 137,809 137,809 Subtotal 16,139,902 $ 17,230,462 16,637,809 $ 17,099,099 Unamortized debt discount on the Convertible Notes (3) — (1,061,203) Unamortized deferred financing costs and other debt discounts, net (48,014) (36,752) Finance lease obligations (4) 112,301 162,174 Total long-term debt and finance lease obligations (including current portion) $ 16,204,189 $ 15,702,028 (1) As of June 1, 2021, we had repurchased or redeemed the principal balance of our 6 3/4% Senior Notes due 2021. (2) Our 5 7/8% Senior Notes due 2022 mature on July 15, 2022 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Condensed Consolidated Balance Sheets as of September 30, 2021. (3) See Note 2 for further information. (4) Disclosure regarding fair value of finance leases is not required. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies | |
Summary of Wireless Spectrum Licenses | As of September 30, 2021 Build-Out Deadlines Carrying Expiration Amount Interim Final Date (In thousands) Owned: DBS Licenses (1) $ 677,409 700 MHz Licenses 711,871 June 14, 2022 (2) June 14, 2023 (4) June 2023 AWS-4 Licenses 1,940,000 June 14, 2022 (2) June 14, 2023 (4) June 2023 H Block Licenses 1,671,506 June 14, 2022 (2) June 14, 2023 (5) June 2023 600 MHz Licenses 6,211,154 June 14, 2025 (6) June 2029 MVDDS Licenses (1) 24,000 August 2024 LMDS Licenses (1) — September 2028 28 GHz Licenses 2,883 October 2, 2029 (7) October 2029 24 GHz Licenses 11,772 December 11, 2029 (7) December 2029 37 GHz, 39 GHz and 47 GHz Licenses 202,533 June 4, 2030 (7) June 2030 3550-3650 MHz Licenses 912,939 March 12, 2031 (7) March 2031 3.7-3.98 GHz Licenses 2,580 July 23, 2029 (7) July 23, 2033 (7) July 2036 Subtotal 12,368,647 Non-controlling Investments: Northstar 5,618,930 October 2021 (3) October 2027 (8) October 2027 (8) SNR 4,271,459 October 2021 (3) October 2027 (8) October 2027 (8) Total AWS-3 Licenses 9,890,389 Capitalized Interest (9) 6,155,457 Total $ 28,414,493 (1) The build-out deadlines for these licenses have been met. (2) For these licenses, we must offer 5G broadband service to at least 20% of the United States population and have developed a core network by this date. (3) For these licenses, Northstar Wireless and SNR Wireless must provide reliable signal coverage and offer service to at least 40% of the population of each license area by this date. See (8) below for final build-out deadlines. (4) For these licenses, we must offer 5G broadband service to 70% of the United States population by this date; provided, however, if by June 14, 2023, we are offering 5G broadband service with respect to these licenses to at least 50% of the population of the United States, the final deadline shall be further extended automatically to June 14, 2025, for us to construct and offer 5G broadband service to at least 70% of the population in each Economic Area (which is a service area established by the FCC) with respect to these licenses. (5) For these licenses, we must offer 5G broadband service to at least 70% of the United States population by this date; provided, however, that if by June 14, 2023, we are offering 5G broadband service with respect to these licenses to at least 50% of the population of the United States, the final deadline shall be further extended automatically to June 14, 2025, for us to construct and offer 5G broadband service to at least 75% of the population in each Economic Area with respect to these licenses. (6) For these licenses, we must offer 5G broadband service to at least 75% of the population in each Partial Economic Area (which are service areas established by the FCC) by this date. (7) There are a variety of build-out options and associated build-out metrics associated with these licenses. (8) For these licenses, Northstar Wireless and SNR Wireless must provide reliable signal coverage and offer service to at least 75% of the population of each license area by this date. If the AWS-3 interim build-out requirement is not met, the AWS-3 expiration date and the AWS-3 final build-out requirement may be accelerated by two years (from October 2027 to October 2025) for each AWS-3 License area in which Northstar Wireless and SNR Wireless do not meet the requirement. (9) See Note 2 for further information. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting | |
Schedule of assets, revenue, and operating income by segment | As of September 30, December 31, 2021 2020 (In thousands) Total assets: Pay-TV $ 37,751,825 $ 36,251,281 Wireless 31,902,998 29,921,237 Eliminations (28,440,586) (27,932,571) Total assets $ 41,214,237 $ 38,239,947 For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands) Revenue: Pay-TV $ 3,220,128 $ 3,190,664 $ 9,676,487 $ 9,595,131 Wireless 1,230,072 1,341,512 3,761,834 1,343,893 Eliminations (565) (585) (3,873) (2,954) Total revenue $ 4,449,635 $ 4,531,591 $ 13,434,448 $ 10,936,070 Operating income (loss): Pay-TV $ 699,730 $ 803,817 $ 2,299,387 $ 2,040,970 Wireless (1) 17,975 7,431 189,632 (447,994) Total operating income (loss) $ 717,705 $ 811,248 $ 2,489,019 $ 1,592,976 (1) The nine months ended September 30, 2020 was negatively impacted by an “Impairment of long-lived assets” of $356 million. See Note 2 for further information. |
Schedule of revenue by geographical region | For the Three Months Ended For the Nine Months Ended September 30, September 30, Revenue: 2021 2020 2021 2020 (In thousands) United States $ 4,432,751 $ 4,516,475 $ 13,390,248 $ 10,899,922 Canada and Mexico 16,884 15,116 44,200 36,148 Total revenue $ 4,449,635 $ 4,531,591 $ 13,434,448 $ 10,936,070 |
Revenue from external customers disaggregated by major revenue source | For the Three Months Ended For the Nine Months Ended September 30, September 30, Category: 2021 2020 2021 2020 (In thousands) Pay-TV subscriber and related revenue $ 3,175,193 $ 3,139,575 $ 9,541,602 $ 9,455,429 Wireless services and related revenue 1,038,042 1,082,570 3,136,016 1,082,570 Pay-TV equipment sales and other revenue 44,935 51,089 134,885 139,702 Wireless equipment sales and other revenue 192,030 258,942 625,818 261,323 Eliminations (565) (585) (3,873) (2,954) Total $ 4,449,635 $ 4,531,591 $ 13,434,448 $ 10,936,070 |
Contract Balances (Tables)
Contract Balances (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Contract Balances | |
Summary of activity in the allowance for doubtful accounts | Allowance for credit losses Balance at Current Period Provision for Expected Credit Losses Write-offs Charged Against Allowance Balance at (In thousands) For the nine months ended September 30, 2021 $ 72,278 $ 37,222 $ (61,519) $ 47,981 |
Schedule of deferred revenue related to contracts with subscribers | As of September 30, December 31, 2021 2020 (In thousands) Contract liabilities $ 720,889 $ 778,832 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
NagraStar | |
Schedule of transactions with related party | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands) Purchases (including fees): Purchases from NagraStar $ 11,451 $ 14,073 $ 35,124 $ 41,424 As of September 30, December 31, 2021 2020 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 7,588 $ 9,038 Commitments to NagraStar $ 5,980 $ 3,260 |
Dish Mexico | |
Schedule of transactions with related party | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2021 2020 2021 2020 (In thousands) Sales: Satellite capacity $ 5,866 $ 5,462 $ 17,597 $ 16,387 Uplink services 1,255 1,207 3,700 3,876 Total $ 7,121 $ 6,669 $ 21,297 $ 20,263 As of September 30, December 31, 2021 2020 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 12,201 $ 17,029 |
Organization and Business Act_2
Organization and Business Activities (Details) customer in Thousands, $ in Thousands | Jul. 14, 2021 | Mar. 08, 2021item | Aug. 01, 2020item | Jul. 01, 2020USD ($)customer | Sep. 30, 2021USD ($)itemcustomersegment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)customer | Sep. 30, 2021USD ($)item | Jun. 30, 2021USD ($) |
Spectrum Investments | |||||||||
Number of primary operating business segments | segment | 2 | ||||||||
Number of business units | item | 2 | ||||||||
Number of Pay-TV subscribers | item | 10,980,000 | 10,980,000 | |||||||
Number Of wireless subscribers | item | 8,774,000 | 8,774,000 | |||||||
Payment to acquire certain wireless licenses and related assets | $ 22,000,000 | ||||||||
Number of markets under construction | item | 35 | 35 | |||||||
FCC authorizations | $ 28,414,493 | $ 26,903,939 | $ 28,414,493 | ||||||
Total debt and equity investments in subsidiaries | 10,000,000 | 10,000,000 | $ 10,000,000 | ||||||
Non-cash impairment charge | $ 253,000 | ||||||||
Capitalized interest on FCC authorizations [Member] | |||||||||
Spectrum Investments | |||||||||
FCC authorizations | $ 6,000,000 | $ 6,000,000 | |||||||
Sling TV Holding L.L.C. | |||||||||
Spectrum Investments | |||||||||
Number of Pay-TV subscribers | item | 2,556,000 | 2,556,000 | |||||||
Lease Agreement With Crown Castle | |||||||||
Spectrum Investments | |||||||||
Area of Leased Space | item | 20,000 | 20,000 | |||||||
Ting Mobile Acquisition | |||||||||
Spectrum Investments | |||||||||
Number of retail wireless subscribers acquired | 200,000 | 200 | |||||||
Republic Wireless Acquisition | |||||||||
Spectrum Investments | |||||||||
Number of retail wireless subscribers acquired | 200,000 | 200 | |||||||
Boost Mobile Acquisition [Member] | |||||||||
Spectrum Investments | |||||||||
Number of retail wireless subscribers acquired | customer | 9,000 | ||||||||
Fair value of the acquisition | $ 591,000 | ||||||||
Boost Mobile Acquisition [Member] | Customer relationships | |||||||||
Spectrum Investments | |||||||||
Fair value of the acquisition | $ 458,000 | ||||||||
Boost Mobile Acquisition [Member] | Minimum | |||||||||
Spectrum Investments | |||||||||
Number of retail wireless subscribers acquired | customer | 9,000 | ||||||||
Northstar Spectrum And SNR Holdco | |||||||||
Spectrum Investments | |||||||||
Total debt and equity investments in subsidiaries | $ 10,000,000 | $ 10,000,000 | |||||||
DISH Network L.L.C. | Network Services Agreement | |||||||||
Spectrum Investments | |||||||||
Agreement Term | 10 years | ||||||||
Dish TV | |||||||||
Spectrum Investments | |||||||||
Number of Pay-TV subscribers | item | 8,424,000 | 8,424,000 | |||||||
Wireless | |||||||||
Spectrum Investments | |||||||||
Payment to acquire certain wireless licenses and related assets | $ 12,000,000 | ||||||||
FCC authorizations | $ 12,368,647 | $ 12,368,647 |
Organization and Business Act_3
Organization and Business Activities - Asset Purchase Agreement (Details) - USD ($) $ in Millions | Apr. 01, 2020 | Jul. 26, 2019 |
Asset Purchase Agreement | ||
Asset Purchase Agreement | ||
Purchase price | $ 1,400 | |
Spectrum Purchase Agreement | ||
Asset Purchase Agreement | ||
Purchase price | $ 3,590 | |
Option Agreement | ||
Asset Purchase Agreement | ||
Term of final judgement from the date of its entry with the District Court | 7 years | 7 years |
Term of final judgement if DOJ gives notice | 5 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Dec. 30, 2020 | Jul. 01, 2020 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Accounting policy disclosures | ||||||||
Capitalized Contract Cost | $ 98,000 | $ 131,000 | $ 311,000 | $ 213,000 | ||||
Amortization expense related to the programs | 109,000 | 43,000 | 276,000 | 99,000 | ||||
Total costs capitalized | 491,000 | 491,000 | $ 456,000 | |||||
Derivative Financial Instruments | ||||||||
Derivative instruments - net realized and/or unrealized gains (losses) | (7,380) | (12,450) | (18,380) | (12,450) | ||||
Impairment of Long-Lived Assets | ||||||||
Impairment of long-lived assets | 356,418 | |||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | ||||||||
Deferred Tax Liabilities, Net, Noncurrent | 4,142,341 | 4,142,341 | 3,869,570 | |||||
Variable Interest Entity | ||||||||
Redeemable noncontrolling interests | 382,301 | 382,301 | $ 350,648 | |||||
Advertising expenses | 156,000 | 160,000 | 386,000 | 381,000 | ||||
Research and Development | ||||||||
Research and development cost | 7,000 | $ 6,000 | $ 21,000 | 17,000 | ||||
Minimum | ||||||||
Business Combinations | ||||||||
Acquired intangible assets, average finite useful life | 1 year | |||||||
Maximum | ||||||||
Business Combinations | ||||||||
Acquired intangible assets, average finite useful life | 20 years | |||||||
NBIoT capitalized costs | ||||||||
Impairment of Long-Lived Assets | ||||||||
Impairment of long-lived assets | $ 253,000 | |||||||
Northstar Manager LLC | Class B common stock | ||||||||
Variable Interest Entity | ||||||||
Ownership percentage | 97.00% | |||||||
Payment For Purchase Agreement | $ 312,000 | |||||||
Equity Method Investment, Ownership Percentage | 3.00% | |||||||
Northstar Manager LLC | American II | Class B common stock | ||||||||
Variable Interest Entity | ||||||||
Ownership percentage owned by other companies | 80.00% | |||||||
ASU 2020-06 | ||||||||
Accounting Standards Update and Change in Accounting Principle [Abstract] | ||||||||
Convertible debt reclassed per ASU 2020-06 (1) | $ 1,051,000 | $ 1,051,344 | ||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | (1,051,000) | |||||||
Deferred Tax Liabilities, Net, Noncurrent | 245,778 | 245,778 | 245,778 | |||||
Additional Paid in Capital | $ (246,000) | |||||||
AWS-4 Satellites | ||||||||
Accounting policy disclosures | ||||||||
Fair value after write down | $ 0 | 0 | ||||||
Impairment of Long-Lived Assets | ||||||||
Impairment of long-lived assets | $ 103,000 | |||||||
Boost Mobile Acquisition [Member] | Minimum | ||||||||
Impairment of Long-Lived Assets | ||||||||
Useful life | 1 year | |||||||
Boost Mobile Acquisition [Member] | Maximum | ||||||||
Impairment of Long-Lived Assets | ||||||||
Useful life | 10 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Impairment of Long-lived assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Impairment of long-lived assets | $ 356,418 |
T1 | |
Impairment of long-lived assets | 48,120 |
D1 | |
Impairment of long-lived assets | 55,000 |
NBIoT capitalized costs | |
Impairment of long-lived assets | 253,000 |
NBIoT capitalized costs | Construction in progress | |
Impairment of long-lived assets | 226,742 |
NBIoT capitalized costs | Operating lease assets | |
Impairment of long-lived assets | $ 26,556 |
Basic and Diluted Net Income _3
Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net income (loss) | $ 567,520 | $ 532,959 | $ 1,890,534 | $ 1,112,638 | ||||
Less: Net income (loss) attributable to noncontrolling interests, net of tax | 10,478 | 28,360 | 32,221 | 82,597 | ||||
Net income (loss) attributable to DISH Network | 557,042 | $ 671,047 | $ 630,224 | 504,599 | $ 452,343 | $ 73,099 | 1,858,313 | 1,030,041 |
Net income (loss) attributable to DISH Network - Diluted | $ 557,042 | $ 504,599 | $ 1,858,313 | $ 1,030,041 | ||||
Weighted-average common shares outstanding - Class A and B common stock: | ||||||||
Basic (in shares) | 528,229 | 525,532 | 527,503 | 524,329 | ||||
Dilutive impact of Convertible Notes (in shares) | 107,016 | 58,192 | 107,016 | 58,192 | ||||
Dilutive impact of stock awards outstanding (in shares) | 1,195 | 233 | 699 | 74 | ||||
Diluted (in shares) | 636,440 | 583,957 | 635,218 | 582,595 | ||||
Earnings per share - Class A and B common stock: | ||||||||
Basic net income (loss) per share attributable to DISH Network (in dollars per share) | $ 1.05 | $ 0.96 | $ 3.52 | $ 1.96 | ||||
Diluted net income (loss) per share attributable to DISH Network (in dollars per share) | $ 0.88 | $ 0.86 | $ 2.93 | $ 1.77 | ||||
2 3/8% Convertible Notes due 2024 | ||||||||
Earnings per share - Class A and B common stock: | ||||||||
Interest rate (as a percent) | 2.375% | 2.375% | ||||||
0% Convertible Notes Due 2025 | ||||||||
Earnings per share - Class A and B common stock: | ||||||||
Interest rate (as a percent) | 0.00% | 0.00% |
Basic and Diluted Net Income _4
Basic and Diluted Net Income (Loss) Per Share - Performance based stock (Details) - $ / shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 69,754 | 61,894 |
Strike price of the warrants | $ 86.08 | |
Anti-dilutive stock awards | ||
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 6,898 | 8,761 |
Performance/market based options | ||
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 15,425 | 5,317 |
Restricted Performance Units/Awards | ||
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 1,402 | 1,787 |
Common stock warrants | ||
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 46,029 | 46,029 |
Supplemental Data - Statement_3
Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Supplemental Data - Statements of Cash Flows | ||||
Cash paid for interest (including capitalized interest) | $ 679,047 | $ 647,572 | ||
Cash received for interest | 3,002 | 5,512 | ||
Cash paid for income taxes | 79,528 | 22,939 | ||
Capitalized interest (1) | 599,215 | 685,749 | ||
Employee benefits paid in Class A common stock | 30,321 | 28,301 | ||
Deferred tax liabilities | 4,142,341 | $ 3,869,570 | ||
Vendor financing | 26,463 | 95,695 | ||
Wireless Equipment | ||||
Supplemental Data - Statements of Cash Flows | ||||
Wirelss equipment | 258,883 | $ 2,983 | ||
ASU 2020-06 | ||||
Supplemental Data - Statements of Cash Flows | ||||
Convertible debt reclassed per ASU 2020-06 (1) | $ 1,051,000 | 1,051,344 | ||
Deferred tax liabilities | $ 245,778 | 245,778 | ||
Capitalized interest on FCC authorizations [Member] | ||||
Supplemental Data - Statements of Cash Flows | ||||
FCC licenses reclassification (2) | $ 915,449 |
Acquisitions (Details)
Acquisitions (Details) customer in Thousands, $ in Thousands | Mar. 08, 2021item | Jul. 01, 2020USD ($)customer | Jul. 26, 2019USD ($) | Sep. 30, 2021USD ($)customerstoreitem | Dec. 31, 2020customer | Sep. 11, 2020USD ($) |
Business Acquisition [Line Items] | ||||||
Annual Lease payment | $ 56,000 | |||||
Master Network Service Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Maximum permitted ownership percent | 50.00% | |||||
Master Network Service Agreement Period | 7 years | |||||
Service Receipt Period | 2 years | |||||
Service receipt period | 2 years | |||||
Provision For New User After Change Of Control | 6 months | |||||
Threshold Ownership Percentage Of Not Permitted Owners | 50.00% | |||||
service pass through costs and out of pocket expenses charging period | 36 months | |||||
Percentage Of Wireless Communication Business Assets Are Sold | 50.00% | |||||
Percentage Of Voting Power Or Economic Value Held By Restricted Persons | 50.00% | |||||
Option Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Spectrum Lease Period | 6 years | |||||
Number of cell sites | item | 20,000 | |||||
Number of retail stores | store | 400 | |||||
Period in which cell sites are scheduled to be decommissioned | 5 years | |||||
Option agreement term | 5 years | |||||
Percentage of purchase price | 10.00% | |||||
Percentage of population served | 20.00% | |||||
Period in which at least 20% of population served to avoid payment of damages | 3 years | |||||
Period obliged to provide DOJ with description of deployment efforts | 180 days | |||||
Damages To Be Paid In Case Of Breach Of Agreement | $ 360,000 | |||||
Transition Services Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Transaction Agreements Period After Provision New Or Existing Customers Of Prepaid Business | 2 years | |||||
Transition Services Agreement Provided At Cost Period | 2 years | |||||
Spectrum Purchase Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Period of spectrum divestiture extend | 60 days | |||||
Period within which divesture to be completed after receipt of FCC approval | 3 years | |||||
Threshold divesture deadline extension period | 5 days | |||||
Spectrum Purchase Application Deadline | 3 years | |||||
Spectrum lease back period | 2 years | |||||
per-Pop rate | $ 68,000 | |||||
Decrease in purchase price due to failure to complete rebanding activities | 72,000 | |||||
Damages sought value in case of breach of agreement | $ 72,000 | |||||
600 MHz Licenses | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Percent Of Coverage On Available Licensed Geographic Areas | 75.00% | |||||
AWS-4 Satellites | Option Agreement | ||||||
Business Acquisition [Line Items] | ||||||
Damages To Be Paid In Case Of Breach Of Agreement | $ 2,200,000 | |||||
AWS-4 Satellites | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Percent Of Coverage On Available Licensed Geographic Areas | 20.00% | |||||
AWS-4 Satellites | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Percent Of Coverage On Available Licensed Geographic Areas | 70.00% | |||||
700 MHz Licenses | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Percent Of Coverage On Available Licensed Geographic Areas | 20.00% | |||||
700 MHz Licenses | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Percent Of Coverage On Available Licensed Geographic Areas | 70.00% | |||||
AWS H Block licenses | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Percent Of Coverage On Available Licensed Geographic Areas | 20.00% | |||||
AWS H Block licenses | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Percent Of Coverage On Available Licensed Geographic Areas | 70.00% | |||||
Aws4 And 600 Mhz | ||||||
Business Acquisition [Line Items] | ||||||
No sale agreement period | 6 years | |||||
Boost Mobile Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number Of Retail Wireless Subscribers Acquired | customer | 9,000 | |||||
Total consideration | $ 1,346,024 | |||||
Trade accounts receivable and allowance for credit losses | 539,000 | |||||
Allowance for credit losses | (24,000) | |||||
Inventory | 141,718 | |||||
Amount of below market contracts acquired as intangible assets | 37,000 | |||||
Spectrum purchase option fair value | 713,000 | |||||
Intangibles | 591,000 | |||||
Goodwill | $ 91,220 | |||||
Boost Mobile Acquisition [Member] | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Number Of Retail Wireless Subscribers Acquired | customer | 9,000 | |||||
Useful life | 1 year | |||||
Boost Mobile Acquisition [Member] | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Useful life | 10 years | |||||
Boost Mobile Acquisition [Member] | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangibles | $ 458,000 | |||||
Boost Mobile Acquisition [Member] | Trade Names [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangibles | $ 96,000 | |||||
Republic Wireless Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Number Of Retail Wireless Subscribers Acquired | 200,000 | 200 |
Acquisitions - Fair Value of Co
Acquisitions - Fair Value of Consideration (Details) - USD ($) $ in Thousands | Jul. 01, 2020 | Jul. 31, 2020 |
Boost Mobile Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 1,400,000 | |
Net working capital | 33,524 | |
Softbank funding | (87,500) | |
Total consideration transferred | $ 1,346,024 | |
Other, net | ||
Business Acquisition [Line Items] | ||
Changes in net working capital | $ 39,000 |
Acquisitions - Purchase Price A
Acquisitions - Purchase Price Allocation (Details) - Boost Mobile Acquisition [Member] $ in Thousands | Jul. 01, 2020USD ($) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |
Trade accounts receivable | $ 514,786 |
Allowance for credit losses | (24,000) |
Inventory | 141,718 |
Other current assets | 3,000 |
Intangibles | 591,000 |
Goodwill | 91,220 |
Other noncurrent assets | 713,000 |
Total assets | 2,054,724 |
Trade accounts payable | 533,967 |
Deferred revenue and other | 174,733 |
Total liabilities | 708,700 |
Total purchase price | $ 1,346,024 |
Marketable Investment Securit_3
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | $ 2,967,545 | $ 362,953 |
Total marketable investment securities | 3,008,339 | 387,420 |
Restricted cash and cash equivalents | 64,244 | 83,902 |
Other investment securities | 155,034 | 149,706 |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | 3,227,617 | 621,028 |
Current marketable investment securities - strategic - available-for-sale | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | 194 | 195 |
Current marketable investment securities - strategic - trading/equity | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | 3,340 | |
Other investment securities | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | 2,964,011 | 362,758 |
Other investment securities | 155,034 | 149,706 |
Restricted Marketable Investment Securities [Member] | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total marketable investment securities | $ 40,794 | $ 24,467 |
Marketable Investment Securit_4
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2021 | Feb. 28, 2017 | |
Commercial paper | Maximum | ||
Other investment securities: | ||
Debt term of Maturity | 365 days | |
Corporate securities | Maximum | ||
Other investment securities: | ||
Debt term of Maturity | 18 months | |
NagraStar | ||
Other investment securities: | ||
Ownership interest (as a percent) | 50.00% |
Marketable Investment Securit_5
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Investments Measured at Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Jul. 01, 2020 |
Fair value of marketable securities | |||
Debt securities | $ 2,936,000 | ||
Contractual maturities extending longer than one year through and including five years | 69,000 | ||
Fair value of derivative | 670,000 | $ 691,000 | |
Fair value measurements on recurring basis | |||
Fair value of marketable securities | |||
Cash Equivalents (including restricted) | 2,304,378 | 3,330,296 | |
Total | 3,008,339 | 387,420 | |
Fair value measurements on recurring basis | US Treasury and agency securities | |||
Fair value of marketable securities | |||
Total | 65,992 | ||
Fair value measurements on recurring basis | Commercial paper | |||
Fair value of marketable securities | |||
Total | 2,612,422 | 298,435 | |
Fair value measurements on recurring basis | Corporate securities | |||
Fair value of marketable securities | |||
Total | 389,891 | 22,552 | |
Fair value measurements on recurring basis | Other | |||
Fair value of marketable securities | |||
Total | 2,686 | 441 | |
Fair value measurements on recurring basis | Equity securities | |||
Fair value of marketable securities | |||
Equity securities | 3,340 | ||
Fair value measurements on recurring basis | Level 1 | |||
Fair value of marketable securities | |||
Cash Equivalents (including restricted) | 73,878 | 363,123 | |
Total | 3,340 | 65,992 | |
Fair value measurements on recurring basis | Level 1 | US Treasury and agency securities | |||
Fair value of marketable securities | |||
Total | 65,992 | ||
Fair value measurements on recurring basis | Level 1 | Equity securities | |||
Fair value of marketable securities | |||
Equity securities | 3,340 | ||
Fair value measurements on recurring basis | Level 2 | |||
Fair value of marketable securities | |||
Cash Equivalents (including restricted) | 2,230,500 | 2,967,173 | |
Total | 3,004,805 | 321,233 | |
Fair value measurements on recurring basis | Level 2 | Commercial paper | |||
Fair value of marketable securities | |||
Total | 2,612,422 | 298,435 | |
Fair value measurements on recurring basis | Level 2 | Corporate securities | |||
Fair value of marketable securities | |||
Total | 389,891 | 22,552 | |
Fair value measurements on recurring basis | Level 2 | Other | |||
Fair value of marketable securities | |||
Total | 2,492 | 246 | |
Fair value measurements on recurring basis | Level 3 | |||
Fair value of marketable securities | |||
Total | 194 | 195 | |
Fair value measurements on recurring basis | Level 3 | Other | |||
Fair value of marketable securities | |||
Total | $ 194 | $ 195 | |
Boost Mobile Acquisition [Member] | |||
Fair value of marketable securities | |||
Spectrum purchase option fair value | $ 713,000 |
Marketable Investment Securit_6
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Other Income Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Income (Expense) | ||||
Marketable investment securities - realized and unrealized gains (losses) | $ (1,634) | $ 87 | $ (1,316) | $ 177 |
Derivative instruments - net realized and/or unrealized gains (losses) | (7,380) | (12,450) | (18,380) | (12,450) |
Costs related to early redemption of debt | (3,587) | |||
Equity in earnings (losses) of affiliates | 424 | (824) | 1,957 | (221) |
Other (Note 5) | 39,659 | (13) | 39,924 | 902 |
Total | $ 31,069 | $ (13,200) | $ 18,598 | $ (11,592) |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory | ||
Finished goods | $ 429,925 | $ 337,787 |
Work-in-process and service repairs | 17,044 | 25,621 |
Raw materials | 23,857 | 16,941 |
Total inventory | $ 470,826 | $ 380,349 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Property and equipment | |||
Total property and equipment | $ 7,642,926 | $ 6,965,949 | |
Accumulated depreciation | (4,909,124) | (4,783,616) | |
Property and equipment, net | 2,733,802 | 2,182,333 | |
Impairment of long-lived assets | $ 356,418 | ||
Non-cash impairment charge | $ 253,000 | ||
Equipment leased to customers | |||
Property and equipment | |||
Total property and equipment | $ 1,590,620 | 1,736,660 | |
Equipment leased to customers | Minimum | |||
Property and equipment | |||
Depreciable Life | 2 years | ||
Equipment leased to customers | Maximum | |||
Property and equipment | |||
Depreciable Life | 5 years | ||
Satellites acquired under finance lease agreements | |||
Property and equipment | |||
Total property and equipment | $ 888,940 | 888,940 | |
Satellites acquired under finance lease agreements | Minimum | |||
Property and equipment | |||
Depreciable Life | 10 years | ||
Satellites acquired under finance lease agreements | Maximum | |||
Property and equipment | |||
Depreciable Life | 15 years | ||
Satellites | |||
Property and equipment | |||
Total property and equipment | $ 1,734,024 | 1,734,024 | |
Satellites | Minimum | |||
Property and equipment | |||
Depreciable Life | 4 years | ||
Satellites | Maximum | |||
Property and equipment | |||
Depreciable Life | 15 years | ||
Furniture, fixtures, equipment and other | |||
Property and equipment | |||
Total property and equipment | $ 2,179,298 | 2,091,271 | |
Furniture, fixtures, equipment and other | Minimum | |||
Property and equipment | |||
Depreciable Life | 2 years | ||
Furniture, fixtures, equipment and other | Maximum | |||
Property and equipment | |||
Depreciable Life | 20 years | ||
Buildings and improvements | |||
Property and equipment | |||
Total property and equipment | $ 373,749 | 370,941 | |
Buildings and improvements | Minimum | |||
Property and equipment | |||
Depreciable Life | 5 years | ||
Buildings and improvements | Maximum | |||
Property and equipment | |||
Depreciable Life | 40 years | ||
Land | |||
Property and equipment | |||
Total property and equipment | $ 17,513 | 17,810 | |
Construction in progress | |||
Property and equipment | |||
Total property and equipment | 858,782 | 126,303 | |
Construction in progress | Pay-Tv | |||
Property and equipment | |||
Total property and equipment | 37,449 | 53,486 | |
Construction in progress | Wireless | |||
Property and equipment | |||
Total property and equipment | $ 821,333 | $ 72,817 |
Property and Equipment - Deprec
Property and Equipment - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Depreciation and amortization expense | ||||
Depreciation and amortization expense | $ 177,291 | $ 199,083 | $ 554,066 | $ 518,027 |
Equipment leased to customers | ||||
Depreciation and amortization expense | ||||
Depreciation and amortization expense | 60,616 | 71,568 | 188,405 | 220,797 |
Satellites | ||||
Depreciation and amortization expense | ||||
Depreciation and amortization expense | 47,833 | 50,193 | 146,645 | 152,530 |
Buildings, furniture, fixtures, equipment and other | ||||
Depreciation and amortization expense | ||||
Depreciation and amortization expense | 32,176 | 32,303 | 92,418 | 97,679 |
Intangible assets (1) | ||||
Depreciation and amortization expense | ||||
Depreciation and amortization expense | $ 36,666 | $ 45,019 | $ 126,598 | $ 47,021 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - PayTVSatellitesMember | 9 Months Ended |
Sep. 30, 2021item | |
Property, Plant and Equipment [Line Items] | |
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 13 |
Owned Satellites | 8 |
Number of satellites utilized under operating lease | 1 |
Number Of Satellites Leased | 4 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 11, 2020 | |
Option to extend - Operating | true | |
Option to extend - Finance | true | |
Option to terminate period - Operating | 1 year | |
Option to terminate period - Finance | 1 year | |
Option to terminate - Operating | true | |
Option to terminate - Finance | true | |
Annual Lease payment | $ 56 | |
Minimum | ||
Option to extend period - Operating | 1 year | |
Option to extend period - Finance | 1 year | |
Maximum | ||
Option to extend period - Operating | 16 years | |
Option to extend period - Finance | 16 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Leases | |||||
Operating lease cost | $ 14,004 | $ 18,281 | $ 47,585 | $ 54,130 | |
Short-term lease cost (1) | 2,488 | 2,726 | 9,686 | 8,284 | |
Amortization of right-of-use assets | 17,829 | 17,829 | 53,488 | 53,488 | |
Interest on lease liabilities | 3,467 | 5,070 | 11,635 | 16,326 | |
Total finance lease cost | 21,296 | 22,899 | 65,123 | 69,814 | |
Total lease costs | 37,788 | $ 43,906 | 122,394 | $ 132,228 | |
Operating lease assets | $ 853,140 | $ 853,140 | $ 104,271 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Leases | ||
Operating cash flows from operating leases | $ 52,220 | $ 54,611 |
Operating cash flows from finance leases | 9,932 | 16,326 |
Financing cash flows from finance leases | 49,873 | 47,301 |
Operating leases (1) | $ 799,261 | $ 41,665 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 853,140 | $ 104,271 | |
Other current liabilities | $ 53,257 | 56,856 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Deferred Long-term Liability Charges | ||
Operating lease liabilities | $ 818,931 | 63,526 | |
Total | $ 872,188 | 120,382 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityNoncurrent us-gaap:AccountsPayableCurrent | ||
Property and equipment, gross | $ 7,642,926 | 6,965,949 | |
Accumulated depreciation | (4,909,124) | (4,783,616) | |
Property and equipment, net | 2,733,802 | 2,182,333 | |
Other current liabilities | 39,221 | 58,379 | |
Other long-term liabilities | 73,080 | 103,795 | |
Total | $ 112,301 | $ 162,174 | |
Operating Lease, Weighted Average Remaining Lease Term | 12 years 7 months 6 days | 2 years 9 months 18 days | |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 8 months 12 days | 3 years 1 month 6 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.50% | 4.20% | |
Finance Lease, Weighted Average Discount Rate, Percent | 10.80% | 10.40% | |
Asset Impairment Charges | $ 356,418 | ||
Property and equipment [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Property and equipment, gross | $ 889,708 | $ 889,708 | |
Accumulated depreciation | (807,780) | (754,292) | |
Property and equipment, net | $ 81,928 | $ 135,416 | |
NBIoT capitalized costs | |||
Lessee, Lease, Description [Line Items] | |||
Asset Impairment Charges | 253,000 | ||
NBIoT capitalized costs | Operating lease assets | |||
Lessee, Lease, Description [Line Items] | |||
Asset Impairment Charges | $ 26,556 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Maturities of lease liabilities: Operating lease | ||
2021 (remaining three months) | $ 19,403 | |
2022 | 70,974 | |
2023 | 70,234 | |
2024 | 72,764 | |
2025 | 74,821 | |
Thereafter | 905,368 | |
Total lease payments | 1,213,564 | |
Less: Imputed interest | (341,376) | |
Total | 872,188 | $ 120,382 |
Less: Current portion | (53,257) | (56,856) |
Long-term portion of lease obligations | 818,931 | 63,526 |
Maturities of lease liabilities: Finance lease | ||
2021 (remaining nine months) | 10,498 | |
2022 | 48,307 | |
2023 | 40,942 | |
2024 | 30,707 | |
Total lease payments | 130,454 | |
Less: Imputed interest | (18,153) | |
Total | 112,301 | 162,174 |
Less: Current portion | (39,221) | (58,379) |
Long-term portion of lease obligations | 73,080 | $ 103,795 |
Future minimum payments for total lease liabilities | ||
2021 (remaining three months) | 29,901 | |
2022 | 119,281 | |
2023 | 111,176 | |
2024 | 103,471 | |
2025 | 74,821 | |
Thereafter | 905,368 | |
Total lease payments | 1,344,018 | |
Less: Imputed interest | (359,529) | |
Total | 984,489 | |
Less: Current portion | (92,478) | |
Long-term portion of lease obligations | $ 892,011 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Instrument | |||
Carrying Value | $ 16,139,902 | $ 16,637,809 | |
Fair Value | 17,230,462 | 17,099,099 | |
Unamortized debt discount on the Convertible Notes | (1,061,203) | ||
Unamortized deferred financing costs and other debt discounts, net | (48,014) | (36,752) | |
Finance lease obligations | 112,301 | 162,174 | |
Total long-term debt and finance lease obligations (including current portion) | $ 16,204,189 | 15,702,028 | |
2 3/8% Convertible Notes due 2024 | |||
Debt Instrument | |||
Interest rate (as a percent) | 2.375% | ||
DISH DBS Corporation ("DDBS") | 5 1/8% Senior Notes due 2020 | |||
Debt Instrument | |||
Interest rate (as a percent) | 5.125% | ||
DISH DBS Corporation ("DDBS") | 6 3/4% Senior Notes due 2021 | |||
Debt Instrument | |||
Carrying Value | 2,000,000 | ||
Fair Value | 2,047,260 | ||
Interest rate (as a percent) | 6.75% | ||
DISH DBS Corporation ("DDBS") | 5 7/8% Senior Notes due 2022 | |||
Debt Instrument | |||
Carrying Value | $ 2,000,000 | 2,000,000 | |
Fair Value | $ 2,063,900 | 2,095,820 | |
Interest rate (as a percent) | 5.875% | ||
DISH DBS Corporation ("DDBS") | 5% Senior Notes due 2023 | |||
Debt Instrument | |||
Carrying Value | $ 1,500,000 | 1,500,000 | |
Fair Value | $ 1,558,860 | 1,566,300 | |
Interest rate (as a percent) | 5.00% | ||
DISH DBS Corporation ("DDBS") | 5 7/8% Senior Notes due 2024 | |||
Debt Instrument | |||
Carrying Value | $ 2,000,000 | 2,000,000 | |
Fair Value | $ 2,157,200 | 2,099,580 | |
Interest rate (as a percent) | 5.875% | ||
DISH DBS Corporation ("DDBS") | 2 3/8% Convertible Notes due 2024 | |||
Debt Instrument | |||
Carrying Value | $ 1,000,000 | 1,000,000 | |
Fair Value | $ 979,520 | 949,350 | |
Interest rate (as a percent) | 2.375% | ||
DISH DBS Corporation ("DDBS") | 0% Convertible Notes due 2025 | |||
Debt Instrument | |||
Carrying Value | $ 2,000,000 | 2,000,000 | |
Fair Value | $ 2,393,560 | 2,010,000 | |
Interest rate (as a percent) | 0.00% | ||
DISH DBS Corporation ("DDBS") | 7 3/4% Senior Notes due 2026 | |||
Debt Instrument | |||
Carrying Value | $ 2,000,000 | 2,000,000 | |
Fair Value | $ 2,264,720 | 2,236,520 | |
Interest rate (as a percent) | 7.75% | ||
DISH DBS Corporation ("DDBS") | 3 3/8% Convertible Notes due 2026 | |||
Debt Instrument | |||
Carrying Value | $ 3,000,000 | 3,000,000 | |
Fair Value | $ 3,131,940 | 2,886,330 | |
Interest rate (as a percent) | 3.375% | ||
DISH DBS Corporation ("DDBS") | 7 3/8% Senior Notes due 2028 | |||
Debt Instrument | |||
Carrying Value | $ 1,000,000 | 1,000,000 | |
Fair Value | $ 1,067,980 | 1,070,130 | |
Interest rate (as a percent) | 7.375% | ||
DISH DBS Corporation ("DDBS") | 5 1/8 % Senior Notes due 2029 | |||
Debt Instrument | |||
Carrying Value | $ 1,500,000 | ||
Fair Value | $ 1,472,880 | ||
Interest rate (as a percent) | 5.125% | 5.125% | |
DISH DBS Corporation ("DDBS") | Other notes payable | |||
Debt Instrument | |||
Carrying Value | $ 139,902 | 137,809 | |
Fair Value | $ 139,902 | $ 137,809 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Obligations (Details) - DISH DBS Corporation ("DDBS") - USD ($) $ in Billions | May 24, 2021 | Sep. 30, 2021 | Jun. 30, 2021 |
7 3/8% Senior Notes due 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 7.375% | ||
5 1/8% Senior Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.125% | ||
5 1/8 % Senior Notes due 2029 | |||
Debt Instrument [Line Items] | |||
Interest rate (as a percent) | 5.125% | 5.125% | |
Principal amount of debt | $ 1.5 | ||
Redemption price as a percentage of principal amount | 100.00% | ||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | ||
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101.00% |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Obligations - Narratives (Details) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 21, 2020 | Mar. 17, 2017 | Aug. 08, 2016 | |
Debt Instrument | |||||
Common stock par value (in dollars per share) | $ 86.08 | ||||
Class A common stock | |||||
Debt Instrument | |||||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
5 1/8% Senior Notes due 2020 | DISH DBS Corporation ("DDBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.125% | ||||
6 3/4% Senior Notes due 2021 | DISH DBS Corporation ("DDBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 6.75% | ||||
5 7/8% Senior Notes due 2022 | DISH DBS Corporation ("DDBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.875% | ||||
5% Senior Notes due 2023 | DISH DBS Corporation ("DDBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.00% | ||||
2 3/8% Convertible Notes due 2024 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 2.375% | ||||
Aggregate principal amount | $ 1,000,000,000 | ||||
Redemption price as a percentage of principal amount | 100.00% | ||||
2 3/8% Convertible Notes due 2024 | Class A common stock | |||||
Debt Instrument | |||||
Aggregate principal amount | $ 1,000 | ||||
Convertible notes converted rate, shares | 12.1630 | ||||
Common stock par value (in dollars per share) | $ 82.22 | ||||
2 3/8% Convertible Notes due 2024 | DISH DBS Corporation ("DDBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 2.375% | ||||
0% Convertible Notes due 2025 | Class A common stock | |||||
Debt Instrument | |||||
Aggregate principal amount | $ 1,000 | ||||
Convertible notes converted rate, shares | 24.4123 | ||||
Common stock par value (in dollars per share) | $ 40.96 | ||||
0% Convertible Notes due 2025 | DISH DBS Corporation ("DDBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 0.00% | ||||
Aggregate principal amount | $ 2,000,000,000 | ||||
Redemption price as a percentage of principal amount | 100.00% | ||||
5 7/8% Senior Notes due 2024 | DISH DBS Corporation ("DDBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.875% | ||||
7 3/4% Senior Notes due 2026 | DISH DBS Corporation ("DDBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 7.75% | ||||
3 3/8% Convertible Notes due 2026 | |||||
Debt Instrument | |||||
Aggregate principal amount | $ 3,000,000,000 | ||||
Redemption price as a percentage of principal amount | 100.00% | ||||
3 3/8% Convertible Notes due 2026 | Class A common stock | |||||
Debt Instrument | |||||
Aggregate principal amount | $ 1,000 | ||||
Convertible notes converted rate, shares | 15.3429 | ||||
Common stock par value (in dollars per share) | $ 65.18 | ||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Convertible note hedges | |||||
Debt Instrument | |||||
Common stock par value (in dollars per share) | $ 65.18 | ||||
Convertible notes converted into shares | 46,000,000 | ||||
Total cost of convertible notes | $ 635,000,000 | ||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Common stock warrants | |||||
Debt Instrument | |||||
Convertible notes converted into warrants | 46,000,000 | ||||
Cash proceeds from the sale of warrants | $ 376,000,000 | ||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Common stock warrants | Minimum | |||||
Debt Instrument | |||||
Common stock par value (in dollars per share) | $ 65.18 | ||||
Convertible notes converted rate | 32.50% | ||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Common stock warrants | Maximum | |||||
Debt Instrument | |||||
Common stock par value (in dollars per share) | $ 86.08 | ||||
Convertible notes converted rate | 75.00% | ||||
3 3/8% Convertible Notes due 2026 | DISH DBS Corporation ("DDBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 3.375% | ||||
7 3/8% Senior Notes due 2028 | DISH DBS Corporation ("DDBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 7.375% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Jul. 14, 2021USD ($) | Dec. 30, 2020USD ($) | Oct. 01, 2020USD ($) | Sep. 02, 2020USD ($)item | Jun. 11, 2020item | Jun. 07, 2018USD ($) | Jun. 06, 2018 | Aug. 18, 2015USD ($) | Dec. 31, 2027 | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2018USD ($)item | Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)item | Jun. 14, 2025 | Jun. 14, 2023 | Jun. 14, 2022 | Dec. 31, 2021USD ($) | Oct. 31, 2021 | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Commitment and Contingencies | ||||||||||||||||||||||
Total | $ 13,591,000 | $ 13,591,000 | $ 4,350,000 | |||||||||||||||||||
Remaining three months of 2021 through 2022 | 2,587,000 | 2,587,000 | ||||||||||||||||||||
2023 | 1,096,000 | 1,096,000 | ||||||||||||||||||||
2024 | 1,191,000 | 1,191,000 | ||||||||||||||||||||
2025 | 1,289,000 | 1,289,000 | ||||||||||||||||||||
Thereafter | $ 7,428,000 | $ 7,428,000 | ||||||||||||||||||||
Number of markets under construction | item | 35 | 35 | ||||||||||||||||||||
Expected expenditures for wireless projects | $ 10,000,000 | $ 10,000,000 | ||||||||||||||||||||
Expenditures For Wireless Projects Excluding Lease Cost | 1,616,000 | 1,616,000 | ||||||||||||||||||||
Payment to acquire certain wireless licenses and related assets | 22,000,000 | |||||||||||||||||||||
Proceeds from Refund of Deposits on Auction | 337,490 | |||||||||||||||||||||
Contractual Obligation | $ 13,591,000 | $ 13,591,000 | $ 4,350,000 | |||||||||||||||||||
Percentage of Population 5G Services offered | 70.00% | 70.00% | 75.00% | 50.00% | 20.00% | 40.00% | ||||||||||||||||
Percentage of Population Northstar Wireless and SNR Wireless offered | 75.00% | |||||||||||||||||||||
FCC authorizations | $ 28,414,493 | $ 28,414,493 | $ 26,903,939 | |||||||||||||||||||
Impairment of long-lived assets | $ 356,418 | |||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Noncontrolling Interest in Variable Interest Entity | 10,000,000 | 10,000,000 | $ 10,000,000 | |||||||||||||||||||
Capitalized interest on FCC authorizations [Member] | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Percentage of Population 5G Services offered | 70.00% | |||||||||||||||||||||
FCC authorizations | 6,000,000 | 6,000,000 | ||||||||||||||||||||
Northstar Manager LLC | Class B common stock | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Ownership percentage | 97.00% | |||||||||||||||||||||
Payment For Purchase Agreement | $ 312,000 | |||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 3.00% | |||||||||||||||||||||
Wireless | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Payment to acquire certain wireless licenses and related assets | 12,000,000 | |||||||||||||||||||||
FCC authorizations | 12,368,647 | 12,368,647 | ||||||||||||||||||||
H Block Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | 1,671,506 | 1,671,506 | ||||||||||||||||||||
DBS Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | 677,409 | 677,409 | ||||||||||||||||||||
700 MHz Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | 711,871 | 711,871 | ||||||||||||||||||||
600 MHz Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | 6,211,154 | 6,211,154 | ||||||||||||||||||||
MVDDS Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | 24,000 | 24,000 | ||||||||||||||||||||
28 GHz Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | 2,883 | 2,883 | ||||||||||||||||||||
24 GHz Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | 11,772 | 11,772 | ||||||||||||||||||||
37 Ghz, 39 Ghz and 47 Ghz Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | 202,533 | 202,533 | ||||||||||||||||||||
Licenses 3550-3650 MHz | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Payment to acquire certain wireless licenses and related assets | $ 730,000 | $ 100,000 | $ 83,000 | |||||||||||||||||||
Aggregate amount to be paid to the winning bids | $ 913,000 | |||||||||||||||||||||
FCC authorizations | 912,939 | 912,939 | ||||||||||||||||||||
Number of priority access licenses | item | 5,492 | |||||||||||||||||||||
Ghz 3.7 to 3.98 | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Payment to acquire certain wireless licenses and related assets | 3,000 | |||||||||||||||||||||
Payments For Asset Purchase Deposit | 340,000 | |||||||||||||||||||||
Proceeds from Refund of Deposits on Auction | 337,000 | |||||||||||||||||||||
FCC authorizations | 2,580 | 2,580 | ||||||||||||||||||||
Northstar Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | $ 5,618,930 | 5,618,930 | ||||||||||||||||||||
AWS-3 Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Accelerated build out period | 2 years | |||||||||||||||||||||
FCC authorizations | $ 9,890,389 | 9,890,389 | ||||||||||||||||||||
AWS-4 Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | 1,940,000 | 1,940,000 | ||||||||||||||||||||
SNR Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | 4,271,459 | 4,271,459 | ||||||||||||||||||||
Capitalized Interest | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
FCC authorizations | 6,155,457 | 6,155,457 | ||||||||||||||||||||
Northstar Spectrum And SNR Holdco | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Ownership interest | 382,000 | 382,000 | $ 351,000 | |||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Noncontrolling Interest in Variable Interest Entity | $ 10,000,000 | $ 10,000,000 | ||||||||||||||||||||
Northstar Spectrum And SNR Holdco | AWS-3 Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Interim Build-out Requirement (as a percent) | 40.00% | |||||||||||||||||||||
Final Build-out Requirement (as a percent) | 75.00% | |||||||||||||||||||||
Accelerated period to meet Final Build-Out Requirement on failure to meet Interim Build-Out Requirement | 2 years | |||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Percentage of bidding credit | 25.00% | |||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Interim payment percentage | 15.00% | |||||||||||||||||||||
Re-Auction payment | $ 1,892,000 | |||||||||||||||||||||
Overpayment of interim payment | $ 334,000 | |||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | Preferred Class A | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Ownership percentage | 100.00% | |||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | Northstar Manager LLC | ||||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Controlling interest owned by other companies | 15.00% | |||||||||||||||||||||
Equity contribution | $ 133,000 | |||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | American II | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Ownership percentage | 85.00% | |||||||||||||||||||||
Loan made | $ 69,000 | |||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Equity contribution | 7,621,000 | |||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Interim Payment | $ 334,000 | |||||||||||||||||||||
Interim payment percentage | 15.00% | |||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | Northstar Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Number of wireless spectrum licenses | item | 261 | 261 | ||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Gross winning bids | $ 5,619,000 | |||||||||||||||||||||
Bidding credit value | $ 1,961,000 | |||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Non-payment gross winning bids | 2,226,000 | $ 2,226,000 | ||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Gross winning bids | $ 7,845,000 | |||||||||||||||||||||
Percentage of bidding credit | 25.00% | |||||||||||||||||||||
Net winning bid | $ 5,884,000 | |||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | SNR Licenses | ||||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Percentage of bidding credit | 25.00% | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Non-payment gross winning bids | $ 1,211,000 | $ 1,211,000 | ||||||||||||||||||||
Interim payment percentage | 15.00% | |||||||||||||||||||||
Re-Auction payment | $ 1,029,000 | |||||||||||||||||||||
Overpayment of interim payment | $ 182,000 | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | Maximum | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 12.00% | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | Minimum | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 8.00% | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | SNR Wireless Management LLC | ||||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Controlling interest owned by other companies | 15.00% | |||||||||||||||||||||
Equity contribution | 93,000 | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American II | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Window of days for management to put its interest | 90 days | 30 days | ||||||||||||||||||||
Additional days allowed for management to put its interest | 90 days | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American II | Maximum | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 12.00% | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American II | Minimum | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 8.00% | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American III | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Number of wireless spectrum licenses | item | 244 | 244 | ||||||||||||||||||||
Loan made | $ 344,000 | |||||||||||||||||||||
Debt outstanding amount | 5,065,000 | |||||||||||||||||||||
Principal amount of debt | 500,000 | |||||||||||||||||||||
Window of days for management to put its interest | 90 days | 30 days | ||||||||||||||||||||
Additional days allowed for management to put its interest | 90 days | |||||||||||||||||||||
Additional loan to pay gross winning bids | 344,000 | |||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Equity contribution | $ 5,590,000 | |||||||||||||||||||||
Gross winning bids | $ 4,271,000 | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American III | Preferred Class A | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Number shares issued in conversion | item | 5,065,415 | |||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 12.00% | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American III | Maximum | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Interest rate (as a percent) | 12.00% | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American III | Minimum | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Interest rate (as a percent) | 6.00% | 6.00% | ||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | AWS 3 Auction | ||||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Gross winning bids | $ 5,482,000 | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | AWS-3 Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Non-payment gross winning bids | 1,211,000 | $ 1,211,000 | ||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | SNR Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Interim Payment | 182,000 | |||||||||||||||||||||
Non-payment gross winning bids | $ 1,211,000 | 1,211,000 | ||||||||||||||||||||
Interim payment percentage | 15.00% | |||||||||||||||||||||
Additional Bid Withdrawal Payment | $ 3,000 | |||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Percentage of bidding credit | 25.00% | |||||||||||||||||||||
Net winning bid | $ 4,112,000 | |||||||||||||||||||||
Bid withdrawal payment | $ 8,000 | |||||||||||||||||||||
Bidding credit value | $ 1,370,000 | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco Class B Interests [Member] | American III | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Ownership percentage | 85.00% | |||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco Class A Interests [Member] | American III | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Ownership percentage | 100.00% | |||||||||||||||||||||
American II | Northstar Manager LLC | Class B common stock | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Ownership percentage | 80.00% | |||||||||||||||||||||
Prior Arrangement | Northstar Licenses | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Non-payment gross winning bids | $ 2,226,000 | 2,226,000 | ||||||||||||||||||||
Prior Arrangement | Northstar Wireless or Northstar Spectrum | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Non-payment gross winning bids | $ 2,226,000 | $ 2,226,000 | ||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Number of licenses returned | item | 84 | |||||||||||||||||||||
Prior Arrangement | SNR Wireless or SNR Wireless Holdco | SNR Licenses | ||||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||||
Number of licenses returned | item | 113 | |||||||||||||||||||||
Northstar Operative Agreement | Northstar Spectrum And SNR Holdco | American II | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Debt outstanding amount | $ 6,870,000 | |||||||||||||||||||||
Northstar Operative Agreement | Northstar Wireless or Northstar Spectrum | American II | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Principal amount of debt | $ 500,000 | |||||||||||||||||||||
Removal of consent for unsecured financing and equipment financing | $ 25,000 | |||||||||||||||||||||
Northstar Operative Agreement | Northstar Wireless or Northstar Spectrum | American II | Preferred Class A | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Number shares issued in conversion | item | 6,870,493 | |||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 12.00% | |||||||||||||||||||||
Northstar Operative Agreement | Northstar Wireless or Northstar Spectrum | American II | Maximum | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Interest rate (as a percent) | 12.00% | |||||||||||||||||||||
Loan balance maturity period | 10 years | |||||||||||||||||||||
Northstar Operative Agreement | Northstar Wireless or Northstar Spectrum | American II | Minimum | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Interest rate (as a percent) | 6.00% | |||||||||||||||||||||
Loan balance maturity period | 7 years | |||||||||||||||||||||
SNR Operative Agreement | SNR Wireless or SNR Wireless Holdco | American III | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Loan balance maturity period | 10 years | 7 years | ||||||||||||||||||||
Removal of consent for unsecured financing and equipment financing | $ 25,000 | |||||||||||||||||||||
Lease Agreement With Crown Castle | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Area of Leased Space | item | 20,000 | 20,000 | ||||||||||||||||||||
Number Of Communication Towers | item | 20,000 | |||||||||||||||||||||
Master Network Service Agreement | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Master network service agreement period | 7 years | |||||||||||||||||||||
Network Services Agreement | DISH Network L.L.C. | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Minimum amount agreed to be paid | $ 5,000,000 | |||||||||||||||||||||
Agreement Term | 10 years | |||||||||||||||||||||
NBIoT capitalized costs | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Impairment of long-lived assets | $ 253,000 | |||||||||||||||||||||
Interest expense on finance lease obligations | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Total | $ 9,241,000 | $ 9,241,000 | ||||||||||||||||||||
Contractual Obligation | $ 9,241,000 | $ 9,241,000 | ||||||||||||||||||||
SNR Credit Agreement | SNR Wireless or SNR Wireless Holdco | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Loan made | $ 500,000 | |||||||||||||||||||||
SNR Credit Agreement | SNR Wireless or SNR Wireless Holdco | American III | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Loan made | 500,000 | |||||||||||||||||||||
Northstar Credit Agreement | Northstar Wireless or Northstar Spectrum | American II | ||||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||||
Loan made | 500,000 | |||||||||||||||||||||
Principal amount of debt | $ 500,000 |
Commitments and Contingencies -
Commitments and Contingencies - Part 2 (Details) | Oct. 21, 2021USD ($) | Sep. 23, 2016USD ($) | Aug. 18, 2015USD ($) | Mar. 14, 2014USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 27, 2019USD ($) | Oct. 02, 2016patent |
Loss contingencies | ||||||||
Impairment of long-lived assets | $ 356,418,000 | |||||||
Loss contingency terms | ||||||||
Number Of Patents | patent | 4 | |||||||
Northstar Spectrum And SNR Holdco | AWS-3 Licenses | ||||||||
Loss contingencies | ||||||||
Interim Build-out Requirement (as a percent) | 40.00% | |||||||
Final Build-out Requirement (as a percent) | 75.00% | |||||||
Accelerated period to meet Final Build-Out Requirement on failure to meet Interim Build-Out Requirement | 2 years | |||||||
Loss contingency terms | ||||||||
Percentage Of Bidding Credit | 25.00% | |||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | ||||||||
Loss contingency terms | ||||||||
Percentage Of Bidding Credit | 25.00% | |||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | Vermont National Telephone Company | ||||||||
Loss contingency terms | ||||||||
Percentage Of Bidding Credit | 25.00% | |||||||
Recovery amount | $ 10,000,000,000 | |||||||
Bidding Credit | 3,300,000,000 | |||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | Minimum | Vermont National Telephone Company | ||||||||
Loss contingency terms | ||||||||
Claim amount | 5,500 | |||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | Maximum | Vermont National Telephone Company | ||||||||
Loss contingency terms | ||||||||
Claim amount | $ 11,000 | |||||||
Northstar Wireless or Northstar Spectrum | SNR Licenses | ||||||||
Loss contingency terms | ||||||||
Percentage Of Bidding Credit | 25.00% | |||||||
Northstar Wireless or Northstar Spectrum | Northstar Licenses | ||||||||
Loss contingency terms | ||||||||
Bidding Credit | $ 1,961,000,000 | |||||||
SNR Wireless or SNR Wireless Holdco | SNR Licenses | ||||||||
Loss contingency terms | ||||||||
Percentage Of Bidding Credit | 25.00% | |||||||
Bidding Credit | $ 1,370,000,000 | |||||||
Pending Litigation [Member] | ClearPlay | ||||||||
Loss contingency terms | ||||||||
Claim amount | $ 543,000,000 | |||||||
Litigation With Turner Network Sales Inc | ||||||||
Loss contingency terms | ||||||||
Claim amount | $ 206,000,000 | |||||||
License fee payment | $ 20,000,000 | |||||||
Broadband iTV | ||||||||
Loss contingency terms | ||||||||
Claim amount | $ 162,000,000 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment information | |||||
Number of primary operating business segments | segment | 2 | ||||
Total assets | $ 41,214,237 | $ 41,214,237 | $ 38,239,947 | ||
Revenues | 4,449,635 | $ 4,531,591 | 13,434,448 | $ 10,936,070 | |
Depreciation and amortization | 177,291 | 199,083 | 554,066 | 518,027 | |
Operating income (loss) | 717,705 | 811,248 | 2,489,019 | 1,592,976 | |
Interest income | 2,207 | 1,647 | 7,463 | 21,440 | |
Other, net | 31,069 | (13,200) | 18,598 | (11,592) | |
Income tax (provision) benefit, net | (179,258) | (273,514) | (612,645) | (469,864) | |
Net income (loss) | 567,520 | 532,959 | 1,890,534 | 1,112,638 | |
Asset Impairment Charges | 356,418 | ||||
United States | |||||
Segment information | |||||
Revenues | 4,432,751 | 4,516,475 | 13,390,248 | 10,899,922 | |
Canada And Mexico | |||||
Segment information | |||||
Revenues | 16,884 | 15,116 | 44,200 | 36,148 | |
Pay-TV | Operating segment | |||||
Segment information | |||||
Total assets | 37,751,825 | 37,751,825 | 36,251,281 | ||
Revenues | 3,220,128 | 3,190,664 | 9,676,487 | 9,595,131 | |
Operating income (loss) | 699,730 | 803,817 | 2,299,387 | 2,040,970 | |
Wireless | Operating segment | |||||
Segment information | |||||
Total assets | 31,902,998 | 31,902,998 | 29,921,237 | ||
Revenues | 1,230,072 | 1,341,512 | 3,761,834 | 1,343,893 | |
Operating income (loss) | 17,975 | 7,431 | 189,632 | (447,994) | |
All Other and Eliminations | Other and Eliminations | |||||
Segment information | |||||
Total assets | (28,440,586) | (28,440,586) | $ (27,932,571) | ||
Revenues | (565) | (585) | (3,873) | (2,954) | |
Pay-TV video and related revenue | |||||
Segment information | |||||
Revenues | 3,175,193 | 3,139,575 | 9,541,602 | 9,455,429 | |
Wireless services and related revenue | |||||
Segment information | |||||
Revenues | 1,038,042 | 1,082,570 | 3,136,016 | 1,082,570 | |
Equipment sales and other revenue | Eliminations | |||||
Segment information | |||||
Revenues | (565) | (585) | (3,873) | (2,954) | |
Equipment sales and other revenue | Pay-TV | |||||
Segment information | |||||
Revenues | 44,935 | 51,089 | 134,885 | 139,702 | |
Equipment sales and other revenue | Wireless | |||||
Segment information | |||||
Revenues | $ 192,030 | $ 258,942 | $ 625,818 | $ 261,323 |
Contract Balances - Valuation A
Contract Balances - Valuation And Qualifying Accounts Activity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Contract Balances | |
Allowance for Doubtful Accounts Receivable, Beginning Balance | $ 72,278 |
Current Period Provision for Expected Credit Losses | 37,222 |
Write-offs Charged Against Allowance | (61,519) |
Allowance for Doubtful Accounts Receivable, Ending Balance | $ 47,981 |
Contract Balances - Deferred Re
Contract Balances - Deferred Revenues (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Contract liability | $ 720,889 | $ 778,832 |
Customer Contract [Member] | ||
Contract liability | $ 773,000 |
Related Party Transactions (Det
Related Party Transactions (Details) | Aug. 19, 2016 | Oct. 02, 2012 | Feb. 28, 2019 | Mar. 31, 2017 | Dec. 31, 2011USD ($) | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)item$ / shares | Sep. 30, 2020USD ($) | Dec. 31, 2019 | Dec. 31, 2009item | Dec. 31, 2020USD ($)$ / shares |
Related Party Transactions | ||||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 86.08 | $ 86.08 | ||||||||||
Trade accounts receivable, net | $ 1,002,052,000 | $ 1,002,052,000 | $ 1,104,202,000 | |||||||||
Trade accounts payable | 693,184,000 | 693,184,000 | $ 395,397,000 | |||||||||
Cost of sales - equipment and other | $ 380,710,000 | $ 515,643,000 | $ 1,154,020,000 | $ 586,672,000 | ||||||||
Class A common stock | ||||||||||||
Related Party Transactions | ||||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Class B common stock | ||||||||||||
Related Party Transactions | ||||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||
Equipment And Other [Member] | ||||||||||||
Related Party Transactions | ||||||||||||
Cost of sales - equipment and other | $ 1,000,000 | 1,000,000 | $ 4,000,000 | 3,000,000 | ||||||||
Professional Services Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Automatic Renewal Period | 1 year | |||||||||||
Hughes Broadband Distribution Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Term of renewal option | 1 year | |||||||||||
Hughes Broadband Distribution Agreement | Minimum | ||||||||||||
Related Party Transactions | ||||||||||||
Notice period for termination of agreement | 180 days | |||||||||||
Hughes Broadband Master Services Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Payments to third party by related party under extension option | 2,000,000 | 4,000,000 | $ 6,000,000 | 13,000,000 | ||||||||
EchoStar | ||||||||||||
Related Party Transactions | ||||||||||||
Trade accounts receivable, net | 3,000,000 | 3,000,000 | $ 1,000,000 | |||||||||
Trade accounts payable | 10,000,000 | 10,000,000 | $ 6,000,000 | |||||||||
Equipment sales and other revenue | 1,000,000 | 2,000,000 | 4,000,000 | 6,000,000 | ||||||||
Cost of services | 3,000,000 | 5,000,000 | 11,000,000 | 15,000,000 | ||||||||
General and Administrative Expense | 4,000,000 | 3,000,000 | $ 16,000,000 | 10,000,000 | ||||||||
EchoStar | El Paso Lease Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Number of consecutive three year renewal options | item | 4 | |||||||||||
Term of renewal option | 3 years | |||||||||||
EchoStar | 90 Inverness Lease Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Number of renewal options | item | 4 | |||||||||||
Term of renewal option | 3 years | |||||||||||
EchoStar | Cheyenne Lease Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Number of renewal options | item | 12 | |||||||||||
Term of renewal option | 1 year | |||||||||||
Renewal notice period | 180 days | |||||||||||
EchoStar | Collocation And Antenna Space Agreements | ||||||||||||
Related Party Transactions | ||||||||||||
Number of renewal options | item | 4 | |||||||||||
Term of renewal option | 3 years | |||||||||||
Notice period for termination of agreement | 180 days | |||||||||||
EchoStar | Nimiq 5 Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Agreement term | 15 years | |||||||||||
Number of DBS transponders available to receive services | item | 32 | |||||||||||
EchoStar | Meridian Lease Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Additional term of renewal option | 1 year | |||||||||||
EchoStar | 100 Inverness Lease Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Notice period for termination of agreement | 180 days | |||||||||||
EchoStar | Professional Services Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Automatic renewal period | 1 year | |||||||||||
Notice period for termination of agreement | 60 days | |||||||||||
Minimum notice period for termination of a specific service | 30 days | |||||||||||
EchoStar | Patent Cross-License Agreements | ||||||||||||
Related Party Transactions | ||||||||||||
Payments to third party | $ 10,000,000 | |||||||||||
EchoStar | Rovi License Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Agreement term | 10 years | |||||||||||
Amount paid to related party | $ 0 | |||||||||||
EchoStar | Tax Sharing Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Net amount of the allocated tax attributes payable | 80,000,000 | $ 80,000,000 | ||||||||||
EchoStar | Prior TT&C Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Term of renewal option | 1 year | |||||||||||
HNS | Collocation And Antenna Space Agreements | ||||||||||||
Related Party Transactions | ||||||||||||
Number of renewal options | item | 4 | |||||||||||
Term of renewal option | 3 years | |||||||||||
Notice period for termination of agreement | 90 days | |||||||||||
Agreement term from commencement of service date | 5 years | |||||||||||
HNS | Collocation And Antenna Space Agreements | Maximum | ||||||||||||
Related Party Transactions | ||||||||||||
Notice period for termination of agreement | 120 days | |||||||||||
HNS | Hughes Broadband Master Services Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Notice period for termination of agreement | 90 days | |||||||||||
Broadband equipment purchased from related parties | $ 1,000,000 | $ 4,000,000 | $ 4,000,000 | $ 11,000,000 | ||||||||
Agreement term | 5 years | |||||||||||
Automatic Renewal Period | 1 year | |||||||||||
HNS | Hughes Equipment and Services Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Term of renewal option | 1 year | |||||||||||
Minimum required notice period for termination of agreement by related party | 180 days | |||||||||||
Agreement term | 5 years | |||||||||||
Minimum required notice period for termination by the reporting entity | 365 days | |||||||||||
Master Transaction Agreement | EchoStar | TT & C Agreement | ||||||||||||
Related Party Transactions | ||||||||||||
Notice period for termination of agreement | 12 months | |||||||||||
Master Transaction Agreement | EchoStar | TT & C Agreement | Minimum | ||||||||||||
Related Party Transactions | ||||||||||||
Notice period for termination of agreement | 90 days |
Related Party Transactions - Pa
Related Party Transactions - Part 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Feb. 28, 2017 | |
NagraStar | ||||||
Related Party Transactions | ||||||
Ownership interest (as a percent) | 50.00% | |||||
Purchases from related party | $ 11,451 | $ 14,073 | $ 35,124 | $ 41,424 | ||
Amounts payable to related party | 7,588 | 7,588 | $ 9,038 | |||
Commitments to related party | $ 5,980 | $ 5,980 | 3,260 | |||
Dish Mexico | ||||||
Related Party Transactions | ||||||
Ownership interest (as a percent) | 49.00% | 49.00% | ||||
Revenue from related party | $ 7,121 | 6,669 | $ 21,297 | 20,263 | ||
Amounts receivable from related party | 12,201 | 12,201 | $ 17,029 | |||
Dish Mexico | Satellite Capacity | ||||||
Related Party Transactions | ||||||
Revenue from related party | 5,866 | 5,462 | 17,597 | 16,387 | ||
Dish Mexico | Uplink Services | ||||||
Related Party Transactions | ||||||
Revenue from related party | $ 1,255 | $ 1,207 | $ 3,700 | $ 3,876 |