Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 24, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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, $0.01 par value | |
Trading Symbol | DISH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001001082 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 292,270,989 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 238,435,208 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 817,512 | $ 2,428,188 |
Marketable investment securities | 103,058 | 2,975,518 |
Trade accounts receivable, net of allowance for credit losses of $36,709 and $38,534, respectively | 965,387 | 942,561 |
Inventory | 570,545 | 534,937 |
Other current assets | 485,361 | 641,978 |
Total current assets | 2,941,863 | 7,523,182 |
Noncurrent Assets: | ||
Restricted cash, cash equivalents and marketable investment securities | 103,714 | 5,334,768 |
Property and equipment, net | 5,000,480 | 3,257,787 |
FCC authorizations | 36,687,855 | 28,632,665 |
Other investment securities | 168,566 | 150,941 |
Operating lease assets | 2,513,219 | 1,493,410 |
Other noncurrent assets, net | 978,638 | 934,293 |
Intangible assets, net | 608,689 | 674,679 |
Total noncurrent assets | 46,061,161 | 40,478,543 |
Total assets | 49,003,024 | 48,001,725 |
Current Liabilities: | ||
Trade accounts payable | 902,157 | 848,224 |
Deferred revenue and other | 687,712 | 761,347 |
Accrued programming | 1,296,468 | 1,376,770 |
Accrued interest | 245,048 | 288,308 |
Other accrued expenses | 1,217,000 | 1,179,427 |
Current portion of long-term debt and finance lease obligations (Note 9) | 1,591,537 | 2,061,810 |
Total current liabilities | 5,939,922 | 6,515,886 |
Long-Term Obligations, Net of Current Portion: | ||
Long-term debt and finance lease obligations, net of current portion (Note 9) | 17,853,865 | 19,355,206 |
Deferred tax liabilities | 4,577,773 | 4,226,266 |
Operating lease liabilities | 2,500,747 | 1,453,395 |
Long-term deferred revenue and other long-term liabilities | 693,584 | 527,859 |
Total long-term obligations, net of current portion | 25,625,969 | 25,562,726 |
Total liabilities | 31,565,891 | 32,078,612 |
Commitments and Contingencies (Note 10) | ||
Redeemable noncontrolling interests (Note 2) | 445,546 | 395,222 |
Stockholders' Equity (Deficit): | ||
Additional paid-in capital | 4,832,553 | 4,735,484 |
Accumulated other comprehensive income (loss) | (1,224) | 281 |
Accumulated earnings (deficit) | 12,153,330 | 10,785,617 |
Total DISH Network stockholders' equity (deficit) | 16,989,966 | 15,526,671 |
Noncontrolling interests | 1,621 | 1,220 |
Total stockholders' equity (deficit) | 16,991,587 | 15,527,891 |
Total liabilities and stockholders' equity (deficit) | 49,003,024 | 48,001,725 |
Class A common stock | ||
Stockholders' Equity (Deficit): | ||
Common stock | 2,923 | 2,905 |
Class B common stock | ||
Stockholders' Equity (Deficit): | ||
Common stock | $ 2,384 | $ 2,384 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Allowance for credit losses on trade accounts receivable | $ 36,709 | $ 38,534 |
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 | 292,270,989 | 290,529,607 |
Common stock, shares outstanding | 292,270,989 | 290,529,607 |
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 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue: | ||||
Total revenue | $ 4,095,451 | $ 4,449,635 | $ 12,636,034 | $ 13,434,448 |
Costs and Expenses (exclusive of depreciation): | ||||
Cost of services | 2,382,406 | 2,567,210 | 7,194,139 | 7,641,029 |
Cost of sales - equipment and other | 452,749 | 380,710 | 1,364,087 | 1,154,020 |
Selling, general and administrative expenses | 658,531 | 606,719 | 1,888,184 | 1,596,314 |
Depreciation and amortization | 174,736 | 177,291 | 519,300 | 554,066 |
Total costs and expenses | 3,668,422 | 3,731,930 | 10,965,710 | 10,945,429 |
Operating income (loss) | 427,029 | 717,705 | 1,670,324 | 2,489,019 |
Other Income (Expense): | ||||
Interest income | 7,632 | 2,207 | 21,853 | 7,463 |
Interest expense, net of amounts capitalized | (4,848) | (4,203) | (15,067) | (11,901) |
Other, net | 57,941 | 31,069 | 114,264 | 18,598 |
Total other income (expense) | 60,725 | 29,073 | 121,050 | 14,160 |
Income (loss) before income taxes | 487,754 | 746,778 | 1,791,374 | 2,503,179 |
Income tax (provision) benefit, net | (58,169) | (179,258) | (372,936) | (612,645) |
Net income (loss) | 429,585 | 567,520 | 1,418,438 | 1,890,534 |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | 17,355 | 10,478 | 50,725 | 32,221 |
Net income (loss) attributable to DISH Network | $ 412,230 | $ 557,042 | $ 1,367,713 | $ 1,858,313 |
Weighted-average common shares outstanding - Class A and B common stock: | ||||
Basic (in shares) | 530,436 | 528,229 | 529,870 | 527,503 |
Diluted (in shares) | 637,455 | 636,440 | 637,295 | 635,218 |
Earnings per share - Class A and B common stock: | ||||
Basic net income (loss) per share attributable to DISH Network (in dollars per share) | $ 0.78 | $ 1.05 | $ 2.58 | $ 3.52 |
Diluted net income (loss) per share attributable to DISH Network (in dollars per share) | $ 0.65 | $ 0.88 | $ 2.15 | $ 2.93 |
Comprehensive Income (Loss): | ||||
Net income (loss) | $ 429,585 | $ 567,520 | $ 1,418,438 | $ 1,890,534 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (1,610) | 674 | (1,653) | 2,894 |
Unrealized holding gains (losses) on available-for-sale debt securities | 67 | (80) | 13 | (101) |
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss) | (12) | 2 | (13) | |
Deferred income tax (expense) benefit, net | 120 | (140) | 133 | (721) |
Total other comprehensive income (loss), net of tax | (1,423) | 442 | (1,505) | 2,059 |
Comprehensive income (loss) | 428,162 | 567,962 | 1,416,933 | 1,892,593 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 17,355 | 10,478 | 50,725 | 32,221 |
Comprehensive income (loss) attributable to DISH Network | 410,807 | 557,484 | 1,366,208 | 1,860,372 |
Service revenue | ||||
Revenue: | ||||
Total revenue | 3,930,098 | 4,213,235 | 12,034,421 | 12,677,130 |
Equipment sales and other revenue | ||||
Revenue: | ||||
Total revenue | $ 165,353 | $ 236,400 | $ 601,613 | $ 757,318 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED 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 Interests | Total |
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 | |||||
Convertible debt reclassified per ASU 2020-06, net of deferred taxes of $245,778 (Note 2) | (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 DISH Network | 671,047 | 671,047 | |||||
Net income (loss) attributable to noncontrolling interests | 198 | 10,206 | 198 | ||||
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 |
Balance at Dec. 31, 2021 | 5,289 | 4,735,484 | 281 | 10,785,617 | 1,220 | 395,222 | 15,527,891 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 1 | 253 | 254 | ||||
Employee Stock Purchase Plan | 2 | 4,360 | 4,362 | ||||
Non-cash, stock-based compensation | 15,285 | 15,285 | |||||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | (96) | (96) | |||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | 23 | 23 | |||||
Foreign currency translation | (150) | (150) | |||||
Net income (loss) attributable to noncontrolling interests | 159 | 16,036 | 159 | ||||
Net income (loss) attributable to DISH Network | 432,651 | 432,651 | |||||
Balance at Mar. 31, 2022 | 5,292 | 4,755,382 | 58 | 11,218,268 | 1,379 | 411,258 | 15,980,379 |
Balance at Dec. 31, 2021 | 5,289 | 4,735,484 | 281 | 10,785,617 | 1,220 | 395,222 | 15,527,891 |
Issuance of Class A common stock: | |||||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | 133 | ||||||
Foreign currency translation | (1,653) | ||||||
Net income (loss) attributable to DISH Network | 1,367,713 | ||||||
Balance at Sep. 30, 2022 | 5,307 | 4,832,553 | (1,224) | 12,153,330 | 1,621 | 445,546 | 16,991,587 |
Balance at Mar. 31, 2022 | 5,292 | 4,755,382 | 58 | 11,218,268 | 1,379 | 411,258 | 15,980,379 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 56 | 56 | |||||
Employee benefits | 8 | 26,318 | 26,326 | ||||
Employee Stock Purchase Plan | 2 | 4,391 | 4,393 | ||||
Non-cash, stock-based compensation | 15,207 | 15,207 | |||||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 44 | 44 | |||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | (10) | (10) | |||||
Foreign currency translation | 107 | 107 | |||||
Net income (loss) attributable to noncontrolling interests | 124 | 17,051 | 124 | ||||
Net income (loss) attributable to DISH Network | 522,832 | 522,832 | |||||
Balance at Jun. 30, 2022 | 5,302 | 4,801,354 | 199 | 11,741,100 | 1,503 | 428,309 | 16,549,458 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 1 | 1 | |||||
Employee benefits | 22 | 22 | |||||
Employee Stock Purchase Plan | 4 | 4,704 | 4,708 | ||||
Non-cash, stock-based compensation | 26,473 | 26,473 | |||||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 67 | 67 | |||||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | 120 | 120 | |||||
Foreign currency translation | (1,610) | (1,610) | |||||
Net income (loss) attributable to noncontrolling interests | 118 | 17,237 | 118 | ||||
Net income (loss) attributable to DISH Network | 412,230 | 412,230 | |||||
Balance at Sep. 30, 2022 | $ 5,307 | $ 4,832,553 | $ (1,224) | $ 12,153,330 | $ 1,621 | $ 445,546 | $ 16,991,587 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) $ in Thousands | Mar. 31, 2021 USD ($) |
ASU 2020-06 | |
Deferred tax liabilities | $ 245,778 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 1,418,438 | $ 1,890,534 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation and amortization | 519,300 | 554,066 |
Realized and unrealized losses (gains) on investments, derivatives and other | (117,382) | 23,283 |
Non-cash, stock-based compensation | 56,965 | 36,664 |
Deferred tax expense (benefit) | 351,640 | 517,822 |
Changes in allowance for credit losses | (1,903) | (24,389) |
Change in long-term deferred revenue and other long-term liabilities | 47,666 | (13,446) |
Other, net | 182,127 | 36,028 |
Changes in current assets and current liabilities, net | (315,348) | 239,105 |
Net cash flows from operating activities | 2,141,503 | 3,259,667 |
Cash Flows From Investing Activities: | ||
Purchases of marketable investment securities | (125,532) | (3,894,347) |
Sales and maturities of marketable investment securities | 2,984,627 | 1,273,156 |
Purchases of property and equipment | (1,831,146) | (711,955) |
Capitalized interest related to FCC authorizations (Note 2) | (756,289) | (677,356) |
Refund of FCC authorization deposit | 337,490 | |
Purchases of FCC authorizations, including deposits (Note 10) | (7,206,865) | |
Other, net | 5,219 | (163,921) |
Net cash flows from investing activities | (6,929,986) | (3,836,933) |
Cash Flows From Financing Activities: | ||
Repayment of long-term debt and finance lease obligations | (64,564) | (74,237) |
Redemption and repurchases of senior notes | (2,000,000) | (2,000,000) |
Proceeds from issuance of senior notes | 1,500,000 | |
Early debt extinguishment costs | (1,138) | (3,368) |
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan | 13,774 | 37,777 |
Debt issuance costs | (9,819) | |
Other, net | (8,667) | 17,441 |
Net cash flows from financing activities | (2,060,595) | (532,206) |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | (6,849,078) | (1,109,472) |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 5) | 7,734,260 | 3,453,994 |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 5) | $ 885,182 | $ 2,344,522 |
Organization and Business Activ
Organization and Business Activities | 9 Months Ended |
Sep. 30, 2022 | |
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, Federal Communications Commission (“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 and on-demand streaming over-the-top (“ OTT ”) Internet-based domestic, international and Latino video programming services (“SLING TV”). As of September 30, 2022, we had 10.018 million Pay-TV subscribers in the United States, including 7.607 million DISH TV subscribers and 2.411 million SLING TV subscribers. Wireless – Retail Wireless We offer nationwide prepaid and postpaid retail wireless services to subscribers under our Boost Mobile, Ting Mobile, Republic Wireless and Gen Mobile 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 . As an MVNO, today we depend on T-Mobile and AT&T to provide us with network services under the amended master network services agreement (“MNSA”) and Network Services Agreement (the “NSA”), respectively. Under the NSA, we expect AT&T will become our primary network services provider. As of September 30, 2022, we had million retail Wireless subscribers. Recent Developments We regularly evaluate ways to enhance our business. As part of this process, we are in regular dialogue with interested parties who may assist us in accomplishing our goals, including recently preliminary conversations with CONX Corp. (an entity partially owned by Charles W. Ergen, our Chairman) regarding a transaction involving our Retail Wireless business. There can be no assurance that these preliminary discussions will lead to a transaction nor as to the structure or terms of any such transaction. Wireless – 5G Network Deployment We have invested a total of over $30 billion in wireless spectrum licenses, which includes over $10 billion in non-controlling investments in certain entities. The DISH Network Spectrum We have invested $30 billion to acquire certain wireless spectrum licenses. 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”). We have committed to deploy a facilities-based 5G broadband network capable of serving increasingly larger portions of the U.S. population at different deadlines, including 20% of the U.S. population by June 2022 and 70% of the U.S. population by June 2023. of the U.S. population but less than 70% of the U.S. population On June 14, 2022, we announced we had successfully reached our 20% population coverage require ment. We are currently focused on our progression towards offering 5G broadband service to at least 5G sites. As of September 30, 2022, we had completed construction on over of the U.S. population. Construction starts are continuing at a rate of approximately 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 initial 5G Network Deployment, we have and will continue to incur significant additional expenses related to, among other things, research and development, wireless testing and ongoing upgrades to the wireless network infrastructure, and third party integration. As a result of these investments, among other factors, we plan to raise additional capital, which may not be available on favorable terms . 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 9 and Note 10 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 10 for further information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021. 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. On October 21, 2022, we, through our wholly-owned subsidiary American II received notice that Northstar Manager exercised the Northstar Put Right effective as of October 21, 2022. The consummation of the sale is subject to approval by the FCC. The value of the Northstar Put Right has accrued to approximately million as of September 30, 2022. If approved by the FCC, the sale will result in the elimination of all of our non-controlling interest as it related to Northstar Wireless. 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 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 retained its right to exercise the Northstar Put Right during the Second Northstar Put Window. 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 10 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. On November 15, 2021, we, through our wholly-owned subsidiary American III received notice that SNR Management exercised the SNR Put Right effective as of November 15, 2021. The consummation of the sale is subject to approval by the FCC. T he value of the SNR Put Right has accrued to approximately $353 million as of September 30, 2022. If approved by the FCC, the sale will result in the elimination of all of our non-controlling interest as it related to SNR Wireless. 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 10 for further information. As of September 30, 2022 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, incremental borrowing rate (“IBR”) on lease right of use assets, nonrefundable upfront fees, 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. 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 5G Network Deployment . As a result, the interest expense related to the carrying amount of the is being capitalized. The qualifying assets exceed the carrying value of our long-term debt and finance lease obligations, therefore substantially all of our interest expense is being capitalized. However, as the qualifying assets are placed into service, we will cease to capitalize interest on those assets placed into service. 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; and quoted prices for identical or similar instruments in markets that are not active; 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, 2022 and December 31, 2021, 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 5 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 9 for the fair value of our long-term debt. 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 exceeding one year. During the three months ended September 30, 2022 September 30, 2022 and 2021, respectively. During the nine months ended September September 30, 2022 and 2021, respectively. As of September 30, 2022 Advertising Costs We recognize advertising expense when incurred as a component of “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising expenses totaled September 30, 2022 and 2021, respectively. Advertising expenses totaled September Research and Development Research and development costs are expensed as incurred and are included as a component of “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) . September 30, 2022 and 2021, respectively. Research and development costs totaled September New Accounting Pronouncements We do not expect that any recently issued accounting pronouncements will have a material effect on our condensed financial statements. |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2022 | |
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 for the period. 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, 2022 2021 2022 2021 (In thousands, except per share amounts) Net income (loss) $ 429,585 $ 567,520 $ 1,418,438 $ 1,890,534 Less: Net income (loss) attributable to noncontrolling interests, net of tax 17,355 10,478 50,725 32,221 Net income (loss) attributable to DISH Network - Basic 412,230 557,042 1,367,713 1,858,313 Interest on dilutive Convertible Notes, net of tax (1) — — — — Net income (loss) attributable to DISH Network - Diluted $ 412,230 $ 557,042 $ 1,367,713 $ 1,858,313 Weighted-average common shares outstanding - Class A and B common stock: Basic 530,436 528,229 529,870 527,503 Dilutive impact of Convertible Notes 107,016 107,016 107,016 107,016 Dilutive impact of stock awards outstanding 3 1,195 409 699 Diluted 637,455 636,440 637,295 635,218 Earnings per share - Class A and B common stock: Basic net income (loss) per share attributable to DISH Network $ 0.78 $ 1.05 $ 2.58 $ 3.52 Diluted net income (loss) per share attributable to DISH Network $ 0.65 $ 0.88 $ 2.15 $ 2.93 (1) For both the three and nine months ended September 30, 2022 and 2021, substantially all of our interest expense was capitalized. See Note 2 for further information. On June 24, 2022, we commenced a tender offer to eligible employees (which excludes our co-founders and the independent members of our Board of Directors) to exchange eligible stock options (which excludes the Ergen 2020 Performance Award) for new options as detailed in our Schedule TO filed June 23, 2022 with the Securities and Exchange Commission (the “Exchange Offer”), to, among other things, further align employee incentives with the current market. The Exchange Offer expired on July 22, 2022. As a result of the Exchange Offer, the exercise price of approximately . The total incremental non-cash stock-based compensation expense resulting from the Exchange Offer is million, which will be recognized over the remaining vesting period of the applicable options. During the three and nine months ended September 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 $86.08 per share, subject to certain adjustments. As a consequence, the following are not included in the diluted EPS calculation. As of September 30, 2022 2021 (In thousands) Anti-dilutive stock awards 8,435 6,898 Performance/market based options 15,508 15,425 Restricted Performance Units/Awards 1,146 1,402 Common stock warrants 46,029 46,029 Total 71,118 69,754 |
Supplemental Data - Statements
Supplemental Data - Statements of Cash Flows | 9 Months Ended |
Sep. 30, 2022 | |
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 8 for supplemental cash flow and non-cash data related to leases. For the Nine Months Ended September 30, 2022 2021 (In thousands) Cash paid for interest (including capitalized interest) $ 798,773 $ 679,047 Cash received for interest 6,827 3,002 Cash paid for income taxes 49,746 79,528 Capitalized interest (1) 773,689 599,215 Employee benefits paid in Class A common stock 26,348 30,321 Convertible debt reclassified per ASU 2020-06 — 1,051,344 Deferred taxes reclassified per ASU 2020-06 — 245,778 Vendor financing 82,325 26,463 FCC licenses reclassification (2) 122,657 915,449 Purchases of wireless equipment 537,977 239,686 Asset retirement obligation 101,342 19,197 (1) See Note 2 for further information. (2) See Note 10 for further information . |
Marketable Investment Securitie
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 9 Months Ended |
Sep. 30, 2022 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 5. 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, 2022 2021 (In thousands) Marketable investment securities: Current marketable investment securities: Strategic - available-for-sale $ 144 $ 152 Strategic - trading/equity 1,010 1,895 Other 101,904 2,973,471 Total current marketable investment securities 103,058 2,975,518 Restricted marketable investment securities (1) 36,044 28,696 Total marketable investment securities 139,102 3,004,214 Restricted cash and cash equivalents (1) 67,670 5,306,072 Other investment securities: Other investment securities 168,566 150,941 Total other investment securities 168,566 150,941 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 375,338 $ 8,461,227 (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, 2022, 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 . 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, 2022 and December 31, 2021, 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. In addition, as of December 31, 2021, our restricted marketable investment securities, together with our restricted cash and cash equivalents include the proceeds from the issuance of our 5 1/4% 5 3/4% Senior Secured Notes due 2028, which included certain restrictions which varied in nature depending on the ultimate use of proceeds. The cash proceeds were paid to the FCC in connection with our wholly-owned subsidiary Weminuche L.L.C.’s (“Weminuche”) winning bids in the FCC’s See Note 9 for further information. 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 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. TerreStar Solutions, Inc. Our ability to realize value from our strategic investments in securities that are not publicly traded depends on, among other things, 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, 2022 December 31, 2021 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 717,496 $ 103,905 $ 613,591 $ — $ 7,592,696 $ 83,302 $ 7,509,394 $ — Debt securities (including restricted): Commercial paper $ 52,823 $ — $ 52,823 $ — $ 2,533,875 $ — $ 2,533,875 $ — Corporate securities 84,617 — 84,617 — 462,999 — 462,999 — Other 652 — 508 144 5,445 — 5,293 152 Equity securities 1,010 1,010 — — 1,895 1,895 — — Total $ 139,102 $ 1,010 $ 137,948 $ 144 $ 3,004,214 $ 1,895 $ 3,002,167 $ 152 As of September 30, 2022, restricted and non-restricted marketable investment securities included debt securities of $138 million with contractual maturities within one year. 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. 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, 2022 and December 31, 2021, the derivative’s fair value was million, respectively, and is included in “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets. The change in the derivative’s fair value was primarily driven by Level 3 current market data indicative of pricing of similar assets, which resulted in an increase in our estimate of our derivative’s underlying asset value. 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. If we elect to exercise the option and purchase these licenses, we will record the licenses at fair value at that date in “FCC authorizations” on our Condensed Consolidated Balance Sheets. If we elect to not exercise the option or it expires, we will expense the derivative’s fair value at that date on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and are potentially subject to pay T-Mobile a fee of approximately million per the Spectrum Purchase Agreement under certain circumstances. See our Annual Report on Form 10-K for the 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: 2022 2021 2022 2021 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ (485) $ (1,634) $ (896) $ (1,633) Derivative instruments - net realized and/or unrealized gains (losses) (1) 34,000 (7,380) 92,000 (18,380) Non-marketable investment securities - gains (losses) 27,054 — 27,427 317 Costs related to early redemption of debt — — (1,149) (3,587) Equity in earnings (losses) of affiliates (570) 424 687 1,957 Other (2,058) 39,659 (3,805) 39,924 Total $ 57,941 $ 31,069 $ 114,264 $ 18,598 (1) The change in the derivative’s fair value was primarily driven by Level 3 current market data indicative of pricing of similar assets, which resulted in an increase in our estimate of our derivative’s underlying asset value. See above for further information on our valuation of derivative instruments. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2022 | |
Inventory | |
Inventory | 6. Inventory Inventory consisted of the following: As of September 30, December 31, 2022 2021 (In thousands) Finished goods $ 519,769 $ 489,073 Work-in-process and service repairs 15,790 19,074 Raw materials 34,986 26,790 Total inventory $ 570,545 $ 534,937 |
Property and Equipment and Inta
Property and Equipment and Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Property and Equipment and Intangible Assets | |
Property and Equipment and Intangible Assets | 7. Property and Equipment and Intangible Assets Property and Equipment Property and equipment consisted of the following: Depreciable As of Life September 30, December 31, (In Years) 2022 2021 (In thousands) Equipment leased to customers 2 - 5 $ 1,366,141 $ 1,530,943 Satellites 4 - 15 1,718,865 1,734,024 Satellites acquired under finance lease agreements 15 344,447 567,870 Furniture, fixtures, equipment and other 2 - 20 2,657,354 2,350,839 Buildings and improvements 5 - 40 379,618 376,952 Land - 17,513 17,513 Construction in progress - 3,083,240 1,309,757 Total property and equipment 9,567,178 7,887,898 Accumulated depreciation (4,566,698) (4,630,111) Property and equipment, net $ 5,000,480 $ 3,257,787 Construction in progress consisted of the following: As of September 30, December 31, 2022 2021 (In thousands) Pay-TV $ 33,766 $ 39,269 Wireless 3,049,474 1,270,488 Total construction in progress $ 3,083,240 $ 1,309,757 Depreciation and amortization expense consisted of the following: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Equipment leased to customers $ 47,745 $ 60,616 $ 148,775 $ 188,405 Satellites 36,083 47,833 111,970 146,645 Buildings, furniture, fixtures, equipment and other 53,196 32,176 148,644 92,418 Intangible assets 37,712 36,666 109,911 126,598 Total depreciation and amortization $ 174,736 $ 177,291 $ 519,300 $ 554,066 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, Nimiq 5, which is accounted for as a financing lease and is depreciated over its economic life, and the Anik F3 satellite, which was accounted for as a finance lease until April 2022 and was fully depreciated. During April 2022, we extended the Anik F3 lease and as a result it is currently accounted for as an operating lease. As of September 30, 2022, our pay-TV satellite fleet consisted of the following: Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar X February 2006 110 N/A EchoStar XI July 2008 110 N/A EchoStar XIV March 2010 119 N/A EchoStar XV July 2010 61.5 N/A EchoStar XVI November 2012 61.5 N/A EchoStar XVIII June 2016 61.5 N/A EchoStar XXIII March 2017 110 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from Other Third Party: Anik F3 (2) April 2007 118.7 April 2025 Ciel II December 2008 129 July 2023 Nimiq 5 September 2009 72.7 September 2024 (1) See Note 13 for further information on our Related Party Transactions with EchoStar. (2) During April 2022, we extended the Anik F3 satellite lease for an additional two years with an option to renew for one additional year to April 2025. Intangible Assets On June 21, 2022, we and T-Mobile signed an amendment to the MNSA. In connection with this amendment, T-Mobile agreed to transfer to us (subject to required regulatory approvals) all Boost branded customers of former Sprint affiliates, Shentel and Swiftel, as well as Boost branded customers who were previously part of the California Public Utilities Commission CARE program. We received regulatory approvals and on September 1, 2022 closed the transfer and acquired these customers. There was cash consideration for these customers. The acquired customer relationships were recorded at fair value in “Intangible assets, net” on our Condensed Consolidated Balance Sheets and will be amortized to expense on a |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Leases | 8. 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. Materially all of our leases have remaining lease one some within During the fourth quarter of 2021, our QuetzSat-1 finance lease expired. Through the first quarter of 2022, our Anik F3 and Nimiq 5 satellites were accounted for as finance leases. The components of lease expense were as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Operating lease cost (1) $ 91,447 $ 14,004 $ 229,359 $ 47,585 Short-term lease cost (2) 3,281 2,488 10,220 9,686 Finance lease cost: Amortization of right-of-use assets (3) 6,048 17,829 21,989 53,488 Interest on lease liabilities (3) 3,926 3,467 9,084 11,635 Total finance lease cost (3) 9,974 21,296 31,073 65,123 Total lease costs $ 104,702 $ 37,788 $ 270,652 $ 122,394 (1) The increase in operating lease cost is primarily related to communication tower leases. (2) Leases that have terms of 12 months or less. (3) The decrease in finance lease cost is primarily related to the QuetzSat-1 finance lease, which expired in November 2021, as well as the Anik F3 finance lease that was extended in April 2022 and as a result is currently accounted for as an operating lease. Supplemental cash flow information related to leases was as follows: For the Nine Months Ended September 30, 2022 2021 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 106,036 $ 52,220 Operating cash flows from finance leases $ 8,721 $ 9,932 Financing cash flows from finance leases $ 34,266 $ 49,873 Right-of-use assets obtained in exchange for lease obligations: Operating leases (1) $ 1,184,791 $ 799,261 Finance leases $ 51,661 $ — (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, 2022 2021 (In thousands) Operating Leases: Operating lease assets (1) $ 2,513,219 $ 1,493,410 Other current liabilities $ 163,915 $ 75,748 Operating lease liabilities (1) 2,500,747 1,453,395 Total operating lease liabilities $ 2,664,662 $ 1,529,143 Finance Leases: Property and equipment, gross $ 397,127 $ 568,889 Accumulated depreciation (297,754) (499,188) Property and equipment, net $ 99,373 $ 69,701 Other current liabilities $ 41,915 $ 34,772 Other long-term liabilities 75,139 64,886 Total finance lease liabilities $ 117,054 $ 99,658 Weighted Average Remaining Lease Term: Operating leases 12.2 years 12.9 years Finance leases 2.6 years 2.6 years Weighted Average Discount Rate: Operating leases 6.9% 5.3% Finance leases 9.7% 11.0% (1) The increase in operating lease assets and liabilities primarily related to communication tower leases. Maturities of lease liabilities as of September 30, 2022 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2022 (remaining three months) $ 51,993 $ 10,017 $ 62,010 2023 236,556 54,125 290,681 2024 259,893 45,532 305,425 2025 287,072 15,756 302,828 2026 314,762 7,058 321,820 Thereafter 3,018,557 — 3,018,557 Total lease payments 4,168,833 132,488 4,301,321 Less: Imputed interest (1,504,171) (15,434) (1,519,605) Total 2,664,662 117,054 2,781,716 Less: Current portion (163,915) (41,915) (205,830) Long-term portion of lease obligations $ 2,500,747 $ 75,139 $ 2,575,886 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 9 Months Ended |
Sep. 30, 2022 | |
Long-Term Debt and Finance Lease Obligations | |
Long-Term Debt and Finance Lease Obligations | 9. 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, 2022 and December 31, 2021: As of September 30, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 5 7/8% Senior Notes due 2022 (1) $ — $ — $ 2,000,000 $ 2,039,700 5% Senior Notes due 2023 (2) 1,500,000 1,474,080 1,500,000 1,541,670 2 3/8% Convertible Notes due 2024 1,000,000 908,090 1,000,000 966,990 5 7/8% Senior Notes due 2024 2,000,000 1,789,840 2,000,000 2,060,180 0% Convertible Notes due 2025 2,000,000 1,321,140 2,000,000 2,016,880 7 3/4% Senior Notes due 2026 2,000,000 1,538,100 2,000,000 2,122,700 3 3/8% Convertible Notes due 2026 3,000,000 2,067,570 3,000,000 2,844,030 5 1/4% Senior Secured Notes due 2026 2,750,000 2,279,503 2,750,000 2,792,900 7 3/8% Senior Notes due 2028 1,000,000 677,730 1,000,000 1,017,060 5 3/4% Senior Secured Notes due 2028 2,500,000 1,906,050 2,500,000 2,520,650 5 1/8% Senior Notes due 2029 1,500,000 891,195 1,500,000 1,365,645 Other notes payable 137,435 137,435 137,069 137,069 Subtotal 19,387,435 $ 14,990,733 21,387,069 $ 21,425,474 Unamortized deferred financing costs and other debt discounts, net (59,087) (69,711) Finance lease obligations (3) 117,054 99,658 Total long-term debt and finance lease obligations (including current portion) $ 19,445,402 $ 21,417,016 (1) As of July 15, 2022, we had repurchased or redeemed the principal balance of our 5 7/8% Senior Notes due 2022. (2) Our 5% Senior Notes due 2023 mature on March 15, 2023 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, 2022. (3) 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). Future Capital Requirements We have and expect to continue to incur significant expenditures in 2022 and 2023 related to our 5G Network Deployment, including, but not limited to, capital expenditures associated with our 5G Network Deployment, and the potential purchase of additional wireless spectrum licenses. The amount of capital required will also depend on, among other things, debt maturities (as detailed in the table above) and the levels of investment necessary to support potential strategic initiatives that may arise from time to time. These factors, including, but not limited to, a reduction in our available future cash flows as a result of our 5G Network Deployment and debt maturities, will require us to raise additional capital in the future March 15, 2023. We do not currently have cash, marketable investment securities balances and/or projected future cash flows to fund this obligation. We will raise additional capital prior to the maturity of this obligation, which may not be available at the historical interest rates of our long-term debt, as detailed in the table above, due to, among other things, the current market rate environment. Convertible Notes 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. Intercompany Loan The net proceeds from the offering of our 5 1/4% 5 3/4% Senior Secured Notes due 2028 (the “Senior Notes”) issued on November 26, 2021 were used by DISH DBS to make an intercompany loan to DISH Network pursuant to a Loan and Security Agreement dated November 26, 2021 (together with potential future advances to DISH Network, the “Intercompany Loan”) between DISH DBS and DISH Network in order to finance the purchase of wireless spectrum licenses and for general corporate purposes, including, but not limited to, our 5G Network Deployment. The Intercompany Loan will mature in two tranches, with the first tranche maturing on December 1, 2026 (the “2026 Tranche”) and the second tranche maturing on December 1, 20 (the “2028 Tranche”). DISH DBS may make additional advances to DISH Network under the Intercompany Loan, and on February 11, 2022, DISH DBS advanced an additional billion to DISH Network under the Intercompany Loan 2026 Tranche. Interest accrues and is payable semiannually, and interest payments with respect to the Intercompany Loan are, at our option, payable in kind for the first two years. In the third year, a minimum of of each interest payment due with respect to each tranche of the Intercompany Loan must be paid in cash. Thereafter, interest payments must be paid in cash. Interest will accrue: (a) when paid in cash, at a fixed rate of 5 1/4% 5 3/4% per annum in excess of the Cash Accrual Rate for the applicable tranche. As of September 30, 2022, the total Intercompany Loan amount outstanding plus interest paid in kind was billion. The cash proceeds of the Intercompany Loan of As a result, the Intercompany Loan is secured by Weminuche’s interest in the wireless spectrum licenses acquired in Auction 110 with such cash proceeds up to the total loan amount outstanding including interest paid in kind. The remaining balance of our winning bids of approximately billion. Under certain circumstances, DISH Network wireless spectrum licenses (valued based upon a third-party valuation) may be substituted for the collateral. The Intercompany Loan is not included as collateral for the Senior Secured Notes, and the Senior Secured Notes are subordinated to DISH DBS’s existing and certain future unsecured notes with respect to certain realizations under the Intercompany Loan and any collateral pledged as security for the Intercompany Loan. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. Commitments and Contingencies Commitments Future disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 have not changed materially, other than those disclosed below. “Other long-term obligations” totaled $15.624 billion as of September 30, 2022 and $12.685 billion as of December 31, 2021, an increase of $2.939 billion as of September 30, 2022. contractual commitments, including, but not limited to, certain minimum commitments resulting from the amendment to the MNSA with T-Mobile and , partially offset by billion of communication tower leases recorded as “Operating lease assets” and “Operating lease liabilities” on our Condensed Consolidated Balance Sheets. These totals could increase as we continue our 5G Network Deployment. For the Years Ending December 31, Other Long-Term Obligations (1) (In thousands) 2022 (remaining three months) $ 1,280,212 2023 3,240,617 2024 2,335,208 2025 1,884,912 2026 1,871,594 Thereafter 5,011,686 Total $ 15,624,229 (1) Represents minimum contractual commitments related to communication tower obligations, certain 5G Network Deployment commitments, obligations under the NSA with AT&T and the MNSA with T-Mobile, radios, software and integration services and satellite related and other obligations. In certain circumstances the dates on which we are obligated to make these payments could be delayed. We currently expect capital expenditures, excluding capitalized interest, billion is included above in “Other long-term obligations.” Agreements in Connection with the Asset Purchase Agreement On July 1, 2020, we completed the Boost Mobile Acquisition. billion. million per the Spectrum Purchase Agreement under certain circumstances. The included in “Other long-term obligations” above. Pursuant to the Stipulation and Order and the Final Judgment (as defined in our Annual Report on Form 10-K for the year ended December 31, 2021) if we elect not to purchase the 800 MHz licenses pursuant to the Spectrum Purchase Agreement, we were required to pay $360 million to the United States. We are no longer required to make this payment as a result of achieving the milestone to offer . Wireless – 5G Network Deployment We have invested a total of over $30 billion in wireless spectrum licenses, which includes over $10 billion in non-controlling investments in certain entities. The Recent Wireless Spectrum Acquisitions 3.45–3.55 GHz. billion. . In January and February 2022, we paid the remaining balance of our winning bids of approximately billion. We paid this obligation from cash, restricted cash and marketable investment securities balances at that time. Licenses”). The payment made in 2021 was included in “Other current assets” as of December 31, 2021. As of 30, 2022, our total payment of $7.328 billion has been recorded in “FCC authorizations” on our Condensed Consolidated Balance Sheets. 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: Carrying Build-Out Deadlines Expiration Amount Interim Final Date (In thousands) Owned: DBS Licenses (1) $ 677,409 700 MHz Licenses (2) 711,871 June 14, 2023 (3) June 2023 AWS-4 Licenses (2) 1,940,000 June 14, 2023 (3) June 2023 H Block Licenses (2) 1,671,506 June 14, 2023 (4) June 2023 600 MHz Licenses 6,212,579 June 14, 2025 (5) June 2029 MVDDS Licenses (1) 24,000 August 2024 LMDS Licenses (1) — September 2028 28 GHz Licenses 2,883 October 2, 2029 (6) October 2029 24 GHz Licenses 11,772 December 11, 2029 (6) December 2029 37 GHz, 39 GHz and 47 GHz Licenses 202,533 June 4, 2030 (6) June 2030 3550-3650 MHz Licenses 912,939 March 12, 2031 (6) March 2031 3.7-3.98 GHz Licenses 2,688 July 23, 2029 (6) July 23, 2033 (6) July 2036 3.45–3.55 GHz Licenses 7,327,989 May 4, 2026 (6) May 4, 2030 (6) May 2037 Subtotal 19,698,169 Non-controlling Investments: Northstar 5,618,930 October 2025 (7) October 2025 (7) SNR 4,271,459 October 2025 (7) October 2025 (7) Total AWS-3 Licenses 9,890,389 Capitalized Interest (8) 7,099,297 Total as of September 30, 2022 $ 36,687,855 (1) The build-out deadlines for these licenses have been met. (2) The interim build-out deadlines for these licenses have been met. (3) 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 but less than 70% 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. (4) 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 but less than 70% 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. (5) For these licenses, we must offer 5G broadband service to at least 75% of the population in each Partial Economic Area (which is a service area established by the FCC) by this date. We have also acquired certain additional 600 MHz licenses through private transactions. These licenses are currently subject to their original FCC buildout deadlines. (6) There are a variety of build-out options and associated build-out metrics associated with these licenses. (7) 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. The AWS-3 interim build-out requirement was not met and as a result, the AWS-3 expiration date and the AWS-3 final build-out requirement have been accelerated by two years (from October 2027 to October 2025) for each AWS-3 License area in which Northstar Wireless and SNR Wireless did not meet the requirement. (8) 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. We have committed to deploy a facilities-based 5G broadband network capable of serving increasingly larger portions of the U.S. population at different deadlines, including 20% of the U.S. population by June 2022 and 70% by June 2023. of the U.S. population but less than 70% of the U.S. population On June 14, 2022, we announced we had successfully reached our 20% population coverage requirement. We are currently focused on our progression towards of the U.S. population with a minimum of 15,000 . As of September 30, 2022, we had completed construction on over 10,000 5G sites, which are capable of providing broadband coverage to over 35% of the U.S. population. Construction starts are continuing at a rate of approximately 1,000 5G sites per month. We currently expect capital expenditures, excluding capitalized interest, for our 5G Network Deployment to be approximately . See Note 2 for further information. 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 initial 5G Network Deployment, we have and will continue to incur significant additional expenses related to, among other things, research and development, wireless testing and ongoing upgrades to the wireless network infrastructure, and third party integration. As a result of these investments, among other factors, we plan to raise additional capital, which may not be available on favorable terms. See Note 9 for further information. 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. For example, the auction for the Flexible-Use Service Licenses in the 2.5 GHz band (“Auction 108”) began on July 29, 2022 and ended on August 29, 2022. On July 11, 2022, the FCC announced that we and 81 other applicants were qualified to participate in Auction 108. On September 1, 2022, the FCC announced the list of winning bidders where we did not win any licenses. During September 2022, we received a refund for the balance of our deposit. We may need to raise significant additional capital in the future to fund the efforts described above, which may not be available on favorable terms. 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 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 retained 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 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 as designated entities under applicable FCC rules. Northstar Wireless was the winning bidder for AWS-3 Licenses with gross winning bid amounts totaling approximately billion. SNR Wireless was the winning bidder for AWS-3 Licenses with gross winning bid amounts totaling approximately billion. In addition to the net winning bids, SNR Wireless made a bid withdrawal payment of approximately 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 billion. 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 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 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 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 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 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 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 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 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 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 of the population in each area covered by an individual AWS-3 License (the “AWS-3 Final Build-Out Requirement”). The AWS-3 Interim Build-Out Requirement was not met and as a result, the AWS-3 License term and the AWS-3 Final Build-Out Requirement have been accelerated by (from October 2027 to October 2025) for each AWS-3 License area in which Northstar Wireless and SNR Wireless did 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 assurance 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 Wireless and SNR Wireless timely filed an appeal of the FCC’s 2020 decision. On June 21, 2022, the United States Court of Appeals for the District of Columbia issued an Opinion rejecting this challenge. Northstar Wireless and SNR Wireless are evaluating their legal options and we cannot predict the timing or outcome of any next steps. 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. On January 24, 2022, American II, Northstar Spectrum, and Northstar Manager amended and restated the Third Amended and Restated Limited Liability Company Agreement, dated June 7, 2018, by and among American II, Northstar Spectrum, and Northstar Manager, to, among other things: (i) increase the second window for Northstar Manager to “put” its interest in Northstar Spectrum to Northstar Spectrum after October 27, 2021 from 90 days to 270 days . On July 22, 2022, American II, Northstar Spectrum, and Northstar Manager amended and restated the Third Amended and Restated Limited Liability Company Agreement, dated June 7, 2018, by and among American II, Northstar Spectrum, and Northstar Manager, to, among other things, increase the second window for Northstar Manager to “put” its interest in Northstar Spectrum to Northstar Spectrum after July 24, 2022 from 270 days to 360 days. O n October 21, 2022, we, through our wholly-owned subsidiary American II received notice that Northstar Manager exercised the Northstar Put Right effective as of October 21, 2022. The value of the Northstar Put Right has accrued to approximately million as of September 30, 2022. The consummation of the sale is subject to approval by the FCC. 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. On November 15, 2021, we, through our wholly-owned subsidiary American III received notice that SNR Management exercised the SNR Put Right effective as of November 15, 2021. T he value of the SNR Put Right has accrued to approximately $353 million as of September 30, 2022. The consummation of the sale is subject to approval by the FCC. 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, 2022 and December 31, 2021, the aggregate value of Northstar Manager’s ownership interest in Northstar Spectrum and SNR Management’s ownership interest in SNR HoldCo was $446 million and $395 million, respectively, recorded as “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets. 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. Contingencies Separation Agr |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting | |
Segment Reporting | 11. 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 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, 2022 2021 (In thousands) Total assets: Pay-TV $ 43,874,451 $ 43,799,761 Wireless (1) 44,309,666 33,310,090 Eliminations (1) (39,181,093) (29,108,126) Total assets $ 49,003,024 $ 48,001,725 (1) The increase primarily resulted from intercompany advances to purchase the 3.45–3.55 GHz band licenses and for capital expenditures related to our 5G Network Deployment. See Note 10 for further information. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Revenue: Pay-TV $ 3,078,418 $ 3,220,128 $ 9,399,244 $ 9,676,487 Wireless 1,018,132 1,230,072 3,241,590 3,761,834 Eliminations (1,099) (565) (4,800) (3,873) Total revenue $ 4,095,451 $ 4,449,635 $ 12,636,034 $ 13,434,448 Operating income (loss): Pay-TV $ 647,654 $ 699,730 $ 2,185,171 $ 2,299,387 Wireless (220,625) 17,975 (514,847) 189,632 Total operating income (loss) $ 427,029 $ 717,705 $ 1,670,324 $ 2,489,019 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: 2022 2021 2022 2021 (In thousands) United States $ 4,082,463 $ 4,432,751 $ 12,603,549 $ 13,390,248 Canada and Mexico 12,988 16,884 32,485 44,200 Total revenue $ 4,095,451 $ 4,449,635 $ 12,636,034 $ 13,434,448 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: 2022 2021 2022 2021 (In thousands) Pay-TV subscriber and related revenue $ 3,037,279 $ 3,175,193 $ 9,280,621 $ 9,541,602 Wireless services and related revenue 892,820 1,038,042 2,754,008 3,136,016 Pay-TV equipment sales and other revenue 41,139 44,935 118,623 134,885 Wireless equipment sales and other revenue 125,312 192,030 487,582 625,818 Eliminations (1,099) (565) (4,800) (3,873) Total $ 4,095,451 $ 4,449,635 $ 12,636,034 $ 13,434,448 |
Contract Balances
Contract Balances | 9 Months Ended |
Sep. 30, 2022 | |
Contract Balances | |
Contract Balances | 12. Contract Balances Our valuation and qualifying accounts as of September 30, 2022 were as follows: Allowance for credit losses Balance at Beginning of Period Current Period Provision for Expected Credit Losses Write-offs Charged Against Allowance Balance at End of Period (In thousands) For the nine months ended September 30, 2022 $ 38,534 $ 53,141 $ (54,966) $ 36,709 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, 2022 2021 (In thousands) Contract liabilities $ 686,700 $ 714,428 Our beginning of period contract liability recorded as customer contract revenue during 2022 was $706 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, 2022 | |
Related Party Transactions | |
Related Party Transactions | 13. 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, 2022 and December 31, 2021, trade accounts receivable from EchoStar was $1 million. These amounts are recorded in “Trade accounts receivable” on our Condensed Consolidated Balance Sheets. “Trade accounts payable” As of September 30, 2022 and December 31, 2021, trade accounts payable to EchoStar was $10 million and $9 million, respectively. These amounts are recorded in “Trade accounts payable” on our Condensed Consolidated Balance Sheets. “Equipment sales and other revenue” During each of the three months ended September 30, 2022 and 2021, we received $1 million for services provided to EchoStar. During each of the nine months ended September 30, 2022 and 2021, we received million 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 2023. 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 2023, with the option for EchoStar to renew for a one-year period upon 180 days ’ written notice prior to the end of the term. 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 2025 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; 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: Englewood, Colorado; and Spokane, Washington. 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 three one-year renewal terms. In August 2022, EchoStar exercised its first renewal option for a period ending in September 2023. “Cost of services” During each of the three months ended September 30, 2022 and 2021, we incurred $3 million of costs for services provided to us by EchoStar. During the nine months ended September 30, 2022 and 2021, 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. “Cost of sales – equipment and other” During each of the three months ended September 30, 2022 and 2021, we incurred $1 million for satellite hosting, operations and maintenance services as well as transmission of certain data. During each of the nine months ended September 30, 2022 and 2021, we incurred $4 million 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 Agreements . 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 “Selling, general and administrative expenses” During the three months ended September 30, 2022 and 2021, we incurred $3 million and $4 million, respectively, for selling, general and administrative expenses for services provided to us by EchoStar. During the nine months ended September 30, 2022 and 2021, we incurred 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. We lease all of 9601 S. Meridian Blvd. in Englewood, Colorado for a period ending on December 31, 2022. ● 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 2022. 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, 2022 for an additional ’ 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 ’ 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. During the second quarter of 2021, we and the other named defendants entered into a global settlement agreement with the City of Hallandale. On December 10, 2021, the court approved the settlement. Under the settlement agreement, we contributed an immaterial amount to the settlement. 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 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. 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. As of September 30, 2022, we have paid In addition, during 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 and as it relates to 2020’s state tax returns, DISH Network and EchoStar no longer file combined tax returns in any states. Per the terms of the Amendment, certain tax benefits received or payable related to combined tax returns were satisfied in 2022. 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 each of the three months ended September 30, 2022 and 2021, these payments were million. For each of the nine months ended September 30, 2022 and 2021, these payments were million. 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 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, 2022 and 2021, we purchased broadband equipment from HNS of million, respectively, under the MSA. For the nine months ended September 30, 2022 and 2021, we purchased broadband equipment from HNS of 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, 2022 2021 2022 2021 (In thousands) Purchases (including fees): Purchases from NagraStar $ 10,285 $ 11,451 $ 32,713 $ 35,124 As of September 30, December 31, 2022 2021 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 11,434 $ 11,988 Commitments to NagraStar $ 3,241 $ 5,630 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, 2022 2021 2022 2021 (In thousands) Sales: Satellite capacity $ — $ 5,866 $ — $ 17,597 Uplink services 709 1,255 2,000 3,700 Total $ 709 $ 7,121 $ 2,000 $ 21,297 As of September 30, December 31, 2022 2021 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 685 $ 6,692 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2021. 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. On October 21, 2022, we, through our wholly-owned subsidiary American II received notice that Northstar Manager exercised the Northstar Put Right effective as of October 21, 2022. The consummation of the sale is subject to approval by the FCC. The value of the Northstar Put Right has accrued to approximately million as of September 30, 2022. If approved by the FCC, the sale will result in the elimination of all of our non-controlling interest as it related to Northstar Wireless. 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 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 retained its right to exercise the Northstar Put Right during the Second Northstar Put Window. 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 10 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. On November 15, 2021, we, through our wholly-owned subsidiary American III received notice that SNR Management exercised the SNR Put Right effective as of November 15, 2021. The consummation of the sale is subject to approval by the FCC. T he value of the SNR Put Right has accrued to approximately $353 million as of September 30, 2022. If approved by the FCC, the sale will result in the elimination of all of our non-controlling interest as it related to SNR Wireless. 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 10 for further information. As of September 30, 2022 |
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, incremental borrowing rate (“IBR”) on lease right of use assets, nonrefundable upfront fees, 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. |
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 5G Network Deployment . As a result, the interest expense related to the carrying amount of the is being capitalized. The qualifying assets exceed the carrying value of our long-term debt and finance lease obligations, therefore substantially all of our interest expense is being capitalized. However, as the qualifying assets are placed into service, we will cease to capitalize interest on those assets placed into service. |
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; and quoted prices for identical or similar instruments in markets that are not active; 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, 2022 and December 31, 2021, 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 5 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 9 for the fair value of our long-term debt. |
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 exceeding one year. During the three months ended September 30, 2022 September 30, 2022 and 2021, respectively. During the nine months ended September September 30, 2022 and 2021, respectively. As of September 30, 2022 |
Advertising Costs | Advertising Costs We recognize advertising expense when incurred as a component of “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising expenses totaled September 30, 2022 and 2021, respectively. Advertising expenses totaled September |
Research and Development | Research and Development Research and development costs are expensed as incurred and are included as a component of “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) . September 30, 2022 and 2021, respectively. Research and development costs totaled September |
New Accounting Pronouncements | New Accounting Pronouncements We do not expect that any recently issued accounting pronouncements will have a material effect on our condensed financial statements. |
Basic and Diluted Net Income _2
Basic and Diluted Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 2022 2021 (In thousands, except per share amounts) Net income (loss) $ 429,585 $ 567,520 $ 1,418,438 $ 1,890,534 Less: Net income (loss) attributable to noncontrolling interests, net of tax 17,355 10,478 50,725 32,221 Net income (loss) attributable to DISH Network - Basic 412,230 557,042 1,367,713 1,858,313 Interest on dilutive Convertible Notes, net of tax (1) — — — — Net income (loss) attributable to DISH Network - Diluted $ 412,230 $ 557,042 $ 1,367,713 $ 1,858,313 Weighted-average common shares outstanding - Class A and B common stock: Basic 530,436 528,229 529,870 527,503 Dilutive impact of Convertible Notes 107,016 107,016 107,016 107,016 Dilutive impact of stock awards outstanding 3 1,195 409 699 Diluted 637,455 636,440 637,295 635,218 Earnings per share - Class A and B common stock: Basic net income (loss) per share attributable to DISH Network $ 0.78 $ 1.05 $ 2.58 $ 3.52 Diluted net income (loss) per share attributable to DISH Network $ 0.65 $ 0.88 $ 2.15 $ 2.93 (1) For both the three and nine months ended September 30, 2022 and 2021, substantially all of our interest expense was capitalized. See Note 2 for further information. |
Schedule of anti-dilutive securities not included in the diluted EPS calculation | As of September 30, 2022 2021 (In thousands) Anti-dilutive stock awards 8,435 6,898 Performance/market based options 15,508 15,425 Restricted Performance Units/Awards 1,146 1,402 Common stock warrants 46,029 46,029 Total 71,118 69,754 |
Supplemental Data - Statement_2
Supplemental Data - Statements of Cash Flows (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplemental Data - Statements of Cash Flows | |
Schedule of supplemental cash flow and other non-cash data | For the Nine Months Ended September 30, 2022 2021 (In thousands) Cash paid for interest (including capitalized interest) $ 798,773 $ 679,047 Cash received for interest 6,827 3,002 Cash paid for income taxes 49,746 79,528 Capitalized interest (1) 773,689 599,215 Employee benefits paid in Class A common stock 26,348 30,321 Convertible debt reclassified per ASU 2020-06 — 1,051,344 Deferred taxes reclassified per ASU 2020-06 — 245,778 Vendor financing 82,325 26,463 FCC licenses reclassification (2) 122,657 915,449 Purchases of wireless equipment 537,977 239,686 Asset retirement obligation 101,342 19,197 (1) See Note 2 for further information. (2) See Note 10 for further information . |
Marketable Investment Securit_2
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 2021 (In thousands) Marketable investment securities: Current marketable investment securities: Strategic - available-for-sale $ 144 $ 152 Strategic - trading/equity 1,010 1,895 Other 101,904 2,973,471 Total current marketable investment securities 103,058 2,975,518 Restricted marketable investment securities (1) 36,044 28,696 Total marketable investment securities 139,102 3,004,214 Restricted cash and cash equivalents (1) 67,670 5,306,072 Other investment securities: Other investment securities 168,566 150,941 Total other investment securities 168,566 150,941 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 375,338 $ 8,461,227 (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, 2022 December 31, 2021 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 717,496 $ 103,905 $ 613,591 $ — $ 7,592,696 $ 83,302 $ 7,509,394 $ — Debt securities (including restricted): Commercial paper $ 52,823 $ — $ 52,823 $ — $ 2,533,875 $ — $ 2,533,875 $ — Corporate securities 84,617 — 84,617 — 462,999 — 462,999 — Other 652 — 508 144 5,445 — 5,293 152 Equity securities 1,010 1,010 — — 1,895 1,895 — — Total $ 139,102 $ 1,010 $ 137,948 $ 144 $ 3,004,214 $ 1,895 $ 3,002,167 $ 152 |
Schedule of gains and losses on sales and changes in carrying amounts of investments and other | For the Three Months Ended For the Nine Months Ended September 30, September 30, Other, net: 2022 2021 2022 2021 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ (485) $ (1,634) $ (896) $ (1,633) Derivative instruments - net realized and/or unrealized gains (losses) (1) 34,000 (7,380) 92,000 (18,380) Non-marketable investment securities - gains (losses) 27,054 — 27,427 317 Costs related to early redemption of debt — — (1,149) (3,587) Equity in earnings (losses) of affiliates (570) 424 687 1,957 Other (2,058) 39,659 (3,805) 39,924 Total $ 57,941 $ 31,069 $ 114,264 $ 18,598 (1) The change in the derivative’s fair value was primarily driven by Level 3 current market data indicative of pricing of similar assets, which resulted in an increase in our estimate of our derivative’s underlying asset value. See above for further information on our valuation of derivative instruments. |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory | |
Schedule of inventory | As of September 30, December 31, 2022 2021 (In thousands) Finished goods $ 519,769 $ 489,073 Work-in-process and service repairs 15,790 19,074 Raw materials 34,986 26,790 Total inventory $ 570,545 $ 534,937 |
Property and Equipment and In_2
Property and Equipment and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property and Equipment and Intangible Assets | |
Schedule of property and equipment | Depreciable As of Life September 30, December 31, (In Years) 2022 2021 (In thousands) Equipment leased to customers 2 - 5 $ 1,366,141 $ 1,530,943 Satellites 4 - 15 1,718,865 1,734,024 Satellites acquired under finance lease agreements 15 344,447 567,870 Furniture, fixtures, equipment and other 2 - 20 2,657,354 2,350,839 Buildings and improvements 5 - 40 379,618 376,952 Land - 17,513 17,513 Construction in progress - 3,083,240 1,309,757 Total property and equipment 9,567,178 7,887,898 Accumulated depreciation (4,566,698) (4,630,111) Property and equipment, net $ 5,000,480 $ 3,257,787 |
Schedule of construction in progress | As of September 30, December 31, 2022 2021 (In thousands) Pay-TV $ 33,766 $ 39,269 Wireless 3,049,474 1,270,488 Total construction in progress $ 3,083,240 $ 1,309,757 |
Schedule of depreciation and amortization expense | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Equipment leased to customers $ 47,745 $ 60,616 $ 148,775 $ 188,405 Satellites 36,083 47,833 111,970 146,645 Buildings, furniture, fixtures, equipment and other 53,196 32,176 148,644 92,418 Intangible assets 37,712 36,666 109,911 126,598 Total depreciation and amortization $ 174,736 $ 177,291 $ 519,300 $ 554,066 |
Schedule of pay-TV satellite fleet | Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar X February 2006 110 N/A EchoStar XI July 2008 110 N/A EchoStar XIV March 2010 119 N/A EchoStar XV July 2010 61.5 N/A EchoStar XVI November 2012 61.5 N/A EchoStar XVIII June 2016 61.5 N/A EchoStar XXIII March 2017 110 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from Other Third Party: Anik F3 (2) April 2007 118.7 April 2025 Ciel II December 2008 129 July 2023 Nimiq 5 September 2009 72.7 September 2024 (1) See Note 13 for further information on our Related Party Transactions with EchoStar. (2) During April 2022, we extended the Anik F3 satellite lease for an additional two years with an option to renew for one additional year to April 2025. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases | |
Components of Lease Expense | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Operating lease cost (1) $ 91,447 $ 14,004 $ 229,359 $ 47,585 Short-term lease cost (2) 3,281 2,488 10,220 9,686 Finance lease cost: Amortization of right-of-use assets (3) 6,048 17,829 21,989 53,488 Interest on lease liabilities (3) 3,926 3,467 9,084 11,635 Total finance lease cost (3) 9,974 21,296 31,073 65,123 Total lease costs $ 104,702 $ 37,788 $ 270,652 $ 122,394 (1) The increase in operating lease cost is primarily related to communication tower leases. (2) Leases that have terms of 12 months or less. (3) The decrease in finance lease cost is primarily related to the QuetzSat-1 finance lease, which expired in November 2021, as well as the Anik F3 finance lease that was extended in April 2022 and as a result is currently accounted for as an operating lease. |
Summary of Supplemental cash flow information related to leases | For the Nine Months Ended September 30, 2022 2021 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 106,036 $ 52,220 Operating cash flows from finance leases $ 8,721 $ 9,932 Financing cash flows from finance leases $ 34,266 $ 49,873 Right-of-use assets obtained in exchange for lease obligations: Operating leases (1) $ 1,184,791 $ 799,261 Finance leases $ 51,661 $ — (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, 2022 2021 (In thousands) Operating Leases: Operating lease assets (1) $ 2,513,219 $ 1,493,410 Other current liabilities $ 163,915 $ 75,748 Operating lease liabilities (1) 2,500,747 1,453,395 Total operating lease liabilities $ 2,664,662 $ 1,529,143 Finance Leases: Property and equipment, gross $ 397,127 $ 568,889 Accumulated depreciation (297,754) (499,188) Property and equipment, net $ 99,373 $ 69,701 Other current liabilities $ 41,915 $ 34,772 Other long-term liabilities 75,139 64,886 Total finance lease liabilities $ 117,054 $ 99,658 Weighted Average Remaining Lease Term: Operating leases 12.2 years 12.9 years Finance leases 2.6 years 2.6 years Weighted Average Discount Rate: Operating leases 6.9% 5.3% Finance leases 9.7% 11.0% (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) 2022 (remaining three months) $ 51,993 $ 10,017 $ 62,010 2023 236,556 54,125 290,681 2024 259,893 45,532 305,425 2025 287,072 15,756 302,828 2026 314,762 7,058 321,820 Thereafter 3,018,557 — 3,018,557 Total lease payments 4,168,833 132,488 4,301,321 Less: Imputed interest (1,504,171) (15,434) (1,519,605) Total 2,664,662 117,054 2,781,716 Less: Current portion (163,915) (41,915) (205,830) Long-term portion of lease obligations $ 2,500,747 $ 75,139 $ 2,575,886 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Long-Term Debt and Finance Lease Obligations | |
Schedule of carrying amount and fair value of our debt facilities | As of September 30, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 5 7/8% Senior Notes due 2022 (1) $ — $ — $ 2,000,000 $ 2,039,700 5% Senior Notes due 2023 (2) 1,500,000 1,474,080 1,500,000 1,541,670 2 3/8% Convertible Notes due 2024 1,000,000 908,090 1,000,000 966,990 5 7/8% Senior Notes due 2024 2,000,000 1,789,840 2,000,000 2,060,180 0% Convertible Notes due 2025 2,000,000 1,321,140 2,000,000 2,016,880 7 3/4% Senior Notes due 2026 2,000,000 1,538,100 2,000,000 2,122,700 3 3/8% Convertible Notes due 2026 3,000,000 2,067,570 3,000,000 2,844,030 5 1/4% Senior Secured Notes due 2026 2,750,000 2,279,503 2,750,000 2,792,900 7 3/8% Senior Notes due 2028 1,000,000 677,730 1,000,000 1,017,060 5 3/4% Senior Secured Notes due 2028 2,500,000 1,906,050 2,500,000 2,520,650 5 1/8% Senior Notes due 2029 1,500,000 891,195 1,500,000 1,365,645 Other notes payable 137,435 137,435 137,069 137,069 Subtotal 19,387,435 $ 14,990,733 21,387,069 $ 21,425,474 Unamortized deferred financing costs and other debt discounts, net (59,087) (69,711) Finance lease obligations (3) 117,054 99,658 Total long-term debt and finance lease obligations (including current portion) $ 19,445,402 $ 21,417,016 (1) As of July 15, 2022, we had repurchased or redeemed the principal balance of our 5 7/8% Senior Notes due 2022. (2) Our 5% Senior Notes due 2023 mature on March 15, 2023 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, 2022. (3) Disclosure regarding fair value of finance leases is not required. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies | |
Schedule of future maturities of long-term debt, finance lease and contractual obligations | For the Years Ending December 31, Other Long-Term Obligations (1) (In thousands) 2022 (remaining three months) $ 1,280,212 2023 3,240,617 2024 2,335,208 2025 1,884,912 2026 1,871,594 Thereafter 5,011,686 Total $ 15,624,229 (1) Represents minimum contractual commitments related to communication tower obligations, certain 5G Network Deployment commitments, obligations under the NSA with AT&T and the MNSA with T-Mobile, radios, software and integration services and satellite related and other obligations. |
Summary of Wireless Spectrum Licenses | Carrying Build-Out Deadlines Expiration Amount Interim Final Date (In thousands) Owned: DBS Licenses (1) $ 677,409 700 MHz Licenses (2) 711,871 June 14, 2023 (3) June 2023 AWS-4 Licenses (2) 1,940,000 June 14, 2023 (3) June 2023 H Block Licenses (2) 1,671,506 June 14, 2023 (4) June 2023 600 MHz Licenses 6,212,579 June 14, 2025 (5) June 2029 MVDDS Licenses (1) 24,000 August 2024 LMDS Licenses (1) — September 2028 28 GHz Licenses 2,883 October 2, 2029 (6) October 2029 24 GHz Licenses 11,772 December 11, 2029 (6) December 2029 37 GHz, 39 GHz and 47 GHz Licenses 202,533 June 4, 2030 (6) June 2030 3550-3650 MHz Licenses 912,939 March 12, 2031 (6) March 2031 3.7-3.98 GHz Licenses 2,688 July 23, 2029 (6) July 23, 2033 (6) July 2036 3.45–3.55 GHz Licenses 7,327,989 May 4, 2026 (6) May 4, 2030 (6) May 2037 Subtotal 19,698,169 Non-controlling Investments: Northstar 5,618,930 October 2025 (7) October 2025 (7) SNR 4,271,459 October 2025 (7) October 2025 (7) Total AWS-3 Licenses 9,890,389 Capitalized Interest (8) 7,099,297 Total as of September 30, 2022 $ 36,687,855 (1) The build-out deadlines for these licenses have been met. (2) The interim build-out deadlines for these licenses have been met. (3) 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 but less than 70% 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. (4) 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 but less than 70% 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. (5) For these licenses, we must offer 5G broadband service to at least 75% of the population in each Partial Economic Area (which is a service area established by the FCC) by this date. We have also acquired certain additional 600 MHz licenses through private transactions. These licenses are currently subject to their original FCC buildout deadlines. (6) There are a variety of build-out options and associated build-out metrics associated with these licenses. (7) 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. The AWS-3 interim build-out requirement was not met and as a result, the AWS-3 expiration date and the AWS-3 final build-out requirement have been accelerated by two years (from October 2027 to October 2025) for each AWS-3 License area in which Northstar Wireless and SNR Wireless did not meet the requirement. (8) See Note 2 for further information. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting | |
Schedule of assets, revenue, and operating income by segment | The total assets, revenue and operating income by segment were as follows: As of September 30, December 31, 2022 2021 (In thousands) Total assets: Pay-TV $ 43,874,451 $ 43,799,761 Wireless (1) 44,309,666 33,310,090 Eliminations (1) (39,181,093) (29,108,126) Total assets $ 49,003,024 $ 48,001,725 (1) The increase primarily resulted from intercompany advances to purchase the 3.45–3.55 GHz band licenses and for capital expenditures related to our 5G Network Deployment. See Note 10 for further information. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Revenue: Pay-TV $ 3,078,418 $ 3,220,128 $ 9,399,244 $ 9,676,487 Wireless 1,018,132 1,230,072 3,241,590 3,761,834 Eliminations (1,099) (565) (4,800) (3,873) Total revenue $ 4,095,451 $ 4,449,635 $ 12,636,034 $ 13,434,448 Operating income (loss): Pay-TV $ 647,654 $ 699,730 $ 2,185,171 $ 2,299,387 Wireless (220,625) 17,975 (514,847) 189,632 Total operating income (loss) $ 427,029 $ 717,705 $ 1,670,324 $ 2,489,019 |
Schedule of revenue by geographical region | For the Three Months Ended For the Nine Months Ended September 30, September 30, Revenue: 2022 2021 2022 2021 (In thousands) United States $ 4,082,463 $ 4,432,751 $ 12,603,549 $ 13,390,248 Canada and Mexico 12,988 16,884 32,485 44,200 Total revenue $ 4,095,451 $ 4,449,635 $ 12,636,034 $ 13,434,448 |
Revenue from external customers disaggregated by major revenue source | For the Three Months Ended For the Nine Months Ended September 30, September 30, Category: 2022 2021 2022 2021 (In thousands) Pay-TV subscriber and related revenue $ 3,037,279 $ 3,175,193 $ 9,280,621 $ 9,541,602 Wireless services and related revenue 892,820 1,038,042 2,754,008 3,136,016 Pay-TV equipment sales and other revenue 41,139 44,935 118,623 134,885 Wireless equipment sales and other revenue 125,312 192,030 487,582 625,818 Eliminations (1,099) (565) (4,800) (3,873) Total $ 4,095,451 $ 4,449,635 $ 12,636,034 $ 13,434,448 |
Contract Balances (Tables)
Contract Balances (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Contract Balances | |
Summary of activity in the allowance for doubtful accounts | Allowance for credit losses Balance at Beginning of Period Current Period Provision for Expected Credit Losses Write-offs Charged Against Allowance Balance at End of Period (In thousands) For the nine months ended September 30, 2022 $ 38,534 $ 53,141 $ (54,966) $ 36,709 |
Schedule of deferred revenue related to contracts with subscribers | As of September 30, December 31, 2022 2021 (In thousands) Contract liabilities $ 686,700 $ 714,428 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
NagraStar | |
Schedule of transactions with related party | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Purchases (including fees): Purchases from NagraStar $ 10,285 $ 11,451 $ 32,713 $ 35,124 As of September 30, December 31, 2022 2021 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 11,434 $ 11,988 Commitments to NagraStar $ 3,241 $ 5,630 |
Dish Mexico | |
Schedule of transactions with related party | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2022 2021 2022 2021 (In thousands) Sales: Satellite capacity $ — $ 5,866 $ — $ 17,597 Uplink services 709 1,255 2,000 3,700 Total $ 709 $ 7,121 $ 2,000 $ 21,297 As of September 30, December 31, 2022 2021 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 685 $ 6,692 |
Organization and Business Act_2
Organization and Business Activities (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | 177 Months Ended | ||||
Sep. 01, 2022 USD ($) | Jun. 14, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 USD ($) item site segment | Sep. 30, 2022 USD ($) item | Dec. 31, 2021 USD ($) | |
Spectrum Investments | |||||||
Number of primary operating business segments | segment | 2 | ||||||
Number of business units | item | 2 | ||||||
Number of Pay-TV subscribers | item | 10,018,000 | 10,018,000 | |||||
Number Of wireless subscribers | item | 8,007,000 | 8,007,000 | |||||
Payment to customer | $ 0 | $ 30,000,000 | |||||
FCC authorizations | $ 36,687,855 | 36,687,855 | $ 28,632,665 | ||||
Total debt and equity investments in subsidiaries | $ 10,000,000 | 10,000,000 | |||||
Percentage of population for deploy 5G services | 20% | ||||||
5G Network Development | |||||||
Spectrum Investments | |||||||
Percentage of population for deploy 5G services | 35% | ||||||
Number Of Construction Sites Completed | site | 10,000 | ||||||
Number Of Construction Sites Completed Per Month | site | 1,000 | ||||||
Capitalized interest on FCC authorizations | |||||||
Spectrum Investments | |||||||
FCC authorizations | $ 7,000,000 | $ 7,000,000 | |||||
Minimum | |||||||
Spectrum Investments | |||||||
Percentage of population for deploy 5G services | 70% | ||||||
Minimum Tower | item | 15,000 | ||||||
Sling TV Holding L.L.C. | |||||||
Spectrum Investments | |||||||
Number of Pay-TV subscribers | item | 2,411,000 | 2,411,000 | |||||
Northstar Spectrum And SNR Holdco | |||||||
Spectrum Investments | |||||||
Total debt and equity investments in subsidiaries | $ 10,000,000 | $ 10,000,000 | |||||
Dish TV | |||||||
Spectrum Investments | |||||||
Number of Pay-TV subscribers | item | 7,607,000 | 7,607,000 | |||||
Wireless | |||||||
Spectrum Investments | |||||||
Payment to customer | $ 30,000,000 | ||||||
FCC authorizations | $ 19,698,169 | $ 19,698,169 | |||||
Percentage of population for deploy 5G services | 20% | 70% | 20% | ||||
Wireless | At least 50% by June 2023 | |||||||
Spectrum Investments | |||||||
Percentage of population for deploy 5G services | 50% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 30, 2020 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Accounting policy disclosures | ||||||
Redeemable noncontrolling interests | $ 445,546 | $ 445,546 | $ 395,222 | |||
Capitalized Contract Cost | 92,000 | $ 98,000 | 260,000 | $ 311,000 | ||
Amortization expense related to the programs | 103,000 | 109,000 | 323,000 | 276,000 | ||
Total costs capitalized | 395,000 | 395,000 | $ 458,000 | |||
Advertising expenses | 176,000 | 156,000 | 454,000 | 386,000 | ||
Research and Development | ||||||
Research and development cost | 12,000 | $ 7,000 | 34,000 | $ 21,000 | ||
Class B common stock | Northstar Manager LLC | ||||||
Variable Interest Entity | ||||||
Equity Method Investment, Ownership Percentage | 3% | |||||
SNR HoldCo | ||||||
Accounting policy disclosures | ||||||
Value of ownership interest accrued | 353,000 | 353,000 | ||||
Northstar Manager LLC | ||||||
Redeemable Noncontrolling Interest | ||||||
Accrued redeemable non-controlling interest | $ 93,000 | $ 93,000 | ||||
Northstar Manager LLC | Class B common stock | ||||||
Variable Interest Entity | ||||||
Ownership percentage | 97% | |||||
Payment For Purchase Agreement | $ 312,000 | |||||
Northstar Manager LLC | American II | Class B common stock | ||||||
Variable Interest Entity | ||||||
Ownership percentage owned by other companies | 80% |
Basic and Diluted Net Income _3
Basic and Diluted Net Income (Loss) Per Share (EPS Amounts for Basic and Diluted Weighted-Average Shares Outstanding) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Basic and Diluted Net Income (Loss) Per Share | ||||||||
Net income (loss) | $ 429,585 | $ 567,520 | $ 1,418,438 | $ 1,890,534 | ||||
Less: Net income (loss) attributable to noncontrolling interests, net of tax | (17,355) | (10,478) | (50,725) | (32,221) | ||||
Net income (loss) attributable to DISH Network | 412,230 | $ 522,832 | $ 432,651 | 557,042 | $ 671,047 | $ 630,224 | 1,367,713 | 1,858,313 |
Net income (loss) attributable to DISH Network - Diluted | $ 412,230 | $ 557,042 | $ 1,367,713 | $ 1,858,313 | ||||
Weighted-average common shares outstanding - Class A and B common stock: | ||||||||
Basic (in shares) | 530,436 | 528,229 | 529,870 | 527,503 | ||||
Dilutive impact of Convertible Notes (in shares) | 107,016 | 107,016 | 107,016 | 107,016 | ||||
Dilutive impact of stock awards outstanding (in shares) | 3 | 1,195 | 409 | 699 | ||||
Diluted (in shares) | 637,455 | 636,440 | 637,295 | 635,218 | ||||
Earnings per share - Class A and B common stock: | ||||||||
Basic net income (loss) per share attributable to DISH Network (in dollars per share) | $ 0.78 | $ 1.05 | $ 2.58 | $ 3.52 | ||||
Diluted net income (loss) per share attributable to DISH Network (in dollars per share) | $ 0.65 | $ 0.88 | $ 2.15 | $ 2.93 |
Basic and Diluted Net Income _4
Basic and Diluted Net Income (Loss) Per Share - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Basic and Diluted Net Income (Loss) Per Share | |
Unrecognized compensation expense | $ 28 |
Incremental non cash stock based stock based compensation | $ 8 |
Basic and Diluted Net Income _5
Basic and Diluted Net Income (Loss) Per Share - Performance based stock (Details) shares in Thousands | 9 Months Ended | |
Sep. 30, 2022 employee $ / shares shares | Sep. 30, 2021 shares | |
Antidilutive securities excluded from computation of earnings per share | ||
Number of stock options outstanding (in shares) | 13,000 | |
Number of employees | employee | 700 | |
Options Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 20 | |
Anti-dilutive securities excluded from computation of earnings per share | 71,118 | 69,754 |
Common stock warrants | ||
Antidilutive securities excluded from computation of earnings per share | ||
Strike price of the warrants | $ / shares | $ 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 | 8,435 | 6,898 |
Performance/market based options | ||
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 15,508 | 15,425 |
Restricted Performance Units/Awards | ||
Antidilutive securities excluded from computation of earnings per share | ||
Anti-dilutive securities excluded from computation of earnings per share | 1,146 | 1,402 |
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 | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental Data - Statements of Cash Flows | ||
Cash paid for interest (including capitalized interest) | $ 798,773 | $ 679,047 |
Cash received for interest | 6,827 | 3,002 |
Cash paid for income taxes | 49,746 | 79,528 |
Capitalized interest (1) | 773,689 | 599,215 |
Employee benefits paid in Class A common stock | 26,348 | 30,321 |
Vendor financing | 82,325 | 26,463 |
Asset retirement obligation | 101,342 | 19,197 |
Wireless equipment | ||
Supplemental Data - Statements of Cash Flows | ||
Purchases of wireless equipment | 537,977 | 239,686 |
ASU 2020-06 | ||
Supplemental Data - Statements of Cash Flows | ||
Convertible debt reclassified per ASU 2020-06 | 1,051,344 | |
Deferred taxes reclassified per ASU 2020-06 | 245,778 | |
FCC | ||
Supplemental Data - Statements of Cash Flows | ||
FCC licenses reclassification (2) | $ 122,657 | $ 915,449 |
Marketable Investment Securit_3
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | $ 103,058 | $ 2,975,518 |
Total marketable investment securities | 139,102 | 3,004,214 |
Restricted cash and cash equivalents | 67,670 | 5,306,072 |
Total other investment securities | 168,566 | 150,941 |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | 375,338 | 8,461,227 |
Current marketable investment securities - strategic - available-for-sale | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | 144 | 152 |
Current marketable investment securities - strategic - trading/equity | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | 1,010 | 1,895 |
Other investment securities | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | 101,904 | 2,973,471 |
Other investment securities | 168,566 | 150,941 |
Restricted marketable investment securities | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total marketable investment securities | $ 36,044 | $ 28,696 |
Marketable Investment Securit_4
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2022 | Feb. 28, 2017 | |
Other investment securities: | ||
Interest rate (as a percent) | 0.25% | |
NagraStar | ||
Other investment securities: | ||
Ownership interest (as a percent) | 50% | |
DISH DBS Corporation ("DBS") | 5 1/4% Senior Secured Notes due 2026 | ||
Other investment securities: | ||
Interest rate (as a percent) | 5.25% | |
DISH DBS Corporation ("DBS") | 5 3/4% Senior Secured Notes due 2028 | ||
Other investment securities: | ||
Interest rate (as a percent) | 5.75% | |
Commercial paper | Maximum | ||
Other investment securities: | ||
Debt term of Maturity | 365 days | |
Corporate securities | Maximum | ||
Other investment securities: | ||
Debt term of Maturity | 18 months |
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, 2022 | Dec. 31, 2021 | Jul. 01, 2020 |
Fair value of marketable securities | |||
Debt securities | $ 138,000 | ||
Fair value of derivative | 770,000 | $ 678,000 | |
Fair value measurements on recurring basis | |||
Fair value of marketable securities | |||
Cash Equivalents (including restricted) | 717,496 | 7,592,696 | |
Total | 139,102 | 3,004,214 | |
Fair value measurements on recurring basis | Commercial paper | |||
Fair value of marketable securities | |||
Total | 52,823 | 2,533,875 | |
Fair value measurements on recurring basis | Corporate securities | |||
Fair value of marketable securities | |||
Total | 84,617 | 462,999 | |
Fair value measurements on recurring basis | Other (including restricted) | |||
Fair value of marketable securities | |||
Total | 652 | 5,445 | |
Fair value measurements on recurring basis | Equity securities | |||
Fair value of marketable securities | |||
Equity securities | 1,010 | 1,895 | |
Fair value measurements on recurring basis | Level 1 | |||
Fair value of marketable securities | |||
Cash Equivalents (including restricted) | 103,905 | 83,302 | |
Total | 1,010 | 1,895 | |
Fair value measurements on recurring basis | Level 1 | Equity securities | |||
Fair value of marketable securities | |||
Equity securities | 1,010 | 1,895 | |
Fair value measurements on recurring basis | Level 2 | |||
Fair value of marketable securities | |||
Cash Equivalents (including restricted) | 613,591 | 7,509,394 | |
Total | 137,948 | 3,002,167 | |
Fair value measurements on recurring basis | Level 2 | Commercial paper | |||
Fair value of marketable securities | |||
Total | 52,823 | 2,533,875 | |
Fair value measurements on recurring basis | Level 2 | Corporate securities | |||
Fair value of marketable securities | |||
Total | 84,617 | 462,999 | |
Fair value measurements on recurring basis | Level 2 | Other (including restricted) | |||
Fair value of marketable securities | |||
Total | 508 | 5,293 | |
Fair value measurements on recurring basis | Level 3 | |||
Fair value of marketable securities | |||
Total | 144 | 152 | |
Fair value measurements on recurring basis | Level 3 | Other (including restricted) | |||
Fair value of marketable securities | |||
Total | 144 | $ 152 | |
Boost Mobile Acquisition | |||
Fair value of marketable securities | |||
Spectrum purchase option fair value | $ 713,000 | ||
Spectrum Purchase Agreement | |||
Fair value of marketable securities | |||
Termination fee | $ 72,000 |
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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Income (Expense) | ||||
Marketable investment securities - realized and unrealized gains (losses) | $ (485) | $ (1,634) | $ (896) | $ (1,633) |
Derivative instruments - net realized and/or unrealized gains (losses) (1) | 34,000 | (7,380) | 92,000 | (18,380) |
Non-marketable investment securities - gains (losses) | 27,054 | 27,427 | 317 | |
Costs related to early redemption of debt | (1,149) | (3,587) | ||
Equity in earnings (losses) of affiliates | (570) | 424 | 687 | 1,957 |
Other | (2,058) | 39,659 | (3,805) | 39,924 |
Total | $ 57,941 | $ 31,069 | $ 114,264 | $ 18,598 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory | ||
Finished goods | $ 519,769 | $ 489,073 |
Work-in-process and service repairs | 15,790 | 19,074 |
Raw materials | 34,986 | 26,790 |
Total inventory | $ 570,545 | $ 534,937 |
Property and Equipment and In_3
Property and Equipment and Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Property and equipment | ||
Total property and equipment | $ 9,567,178 | $ 7,887,898 |
Accumulated depreciation | (4,566,698) | (4,630,111) |
Property and equipment, net | 5,000,480 | 3,257,787 |
Equipment leased to customers | ||
Property and equipment | ||
Total property and equipment | $ 1,366,141 | 1,530,943 |
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 | ||
Property and equipment | ||
Total property and equipment | $ 1,718,865 | 1,734,024 |
Satellites | Minimum | ||
Property and equipment | ||
Depreciable Life | 4 years | |
Satellites | Maximum | ||
Property and equipment | ||
Depreciable Life | 15 years | |
Satellites acquired under finance lease agreements | ||
Property and equipment | ||
Total property and equipment | $ 344,447 | 567,870 |
Depreciable Life | 15 years | |
Furniture, fixtures, equipment and other | ||
Property and equipment | ||
Total property and equipment | $ 2,657,354 | 2,350,839 |
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 | $ 379,618 | 376,952 |
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 | 17,513 |
Construction in progress | ||
Property and equipment | ||
Total property and equipment | 3,083,240 | 1,309,757 |
Construction in progress | Software related projects | ||
Property and equipment | ||
Total property and equipment | 33,766 | 39,269 |
Construction in progress | Wireless | ||
Property and equipment | ||
Total property and equipment | $ 3,049,474 | $ 1,270,488 |
Property and Equipment and In_4
Property and Equipment and Intangible Assets - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Depreciation and amortization expense | ||||
Depreciation and amortization | $ 174,736 | $ 177,291 | $ 519,300 | $ 554,066 |
Equipment leased to customers | ||||
Depreciation and amortization expense | ||||
Depreciation and amortization | 47,745 | 60,616 | 148,775 | 188,405 |
Satellites | ||||
Depreciation and amortization expense | ||||
Depreciation and amortization | 36,083 | 47,833 | 111,970 | 146,645 |
Buildings, furniture, fixtures, equipment and other | ||||
Depreciation and amortization expense | ||||
Depreciation and amortization | 53,196 | 32,176 | 148,644 | 92,418 |
Intangible assets | ||||
Depreciation and amortization expense | ||||
Depreciation and amortization | $ 37,712 | $ 36,666 | $ 109,911 | $ 126,598 |
Property and Equipment and In_5
Property and Equipment and Intangible Assets - Additional Information (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | 177 Months Ended | |
Sep. 01, 2022 USD ($) | Apr. 30, 2022 | Sep. 30, 2022 item | Sep. 30, 2022 USD ($) | |
Property and equipment | ||||
Payment to customer | $ | $ 0 | $ 30,000,000 | ||
Pay-TV Satellites | ||||
Property and equipment | ||||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 11 | |||
Owned satellites | 7 | |||
Number of satellites utilized under operating lease | 1 | |||
Number of satellites leased | 3 | |||
Anik F3 Satellite | ||||
Property and equipment | ||||
Satellite lease term | 2 years | |||
Satellite lease extension term | 1 year |
Leases (Details)
Leases (Details) | 9 Months Ended |
Sep. 30, 2022 | |
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 |
Minimum | |
Option to extend period - Operating | 1 year |
Option to extend period - Finance | 1 year |
Maximum | |
Option to extend period - Operating | 15 years |
Option to extend period - Finance | 15 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases | ||||
Operating lease cost | $ 91,447 | $ 14,004 | $ 229,359 | $ 47,585 |
Short-term lease cost | 3,281 | 2,488 | 10,220 | 9,686 |
Amortization of right-of-use assets | 6,048 | 17,829 | 21,989 | 53,488 |
Interest on lease liabilities | 3,926 | 3,467 | 9,084 | 11,635 |
Total finance lease cost | 9,974 | 21,296 | 31,073 | 65,123 |
Total lease costs | $ 104,702 | $ 37,788 | $ 270,652 | $ 122,394 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases | ||
Operating cash flows from operating leases | $ 106,036 | $ 52,220 |
Operating cash flows from finance leases | 8,721 | 9,932 |
Financing cash flows from finance leases | 34,266 | 49,873 |
Operating leases | 1,184,791 | $ 799,261 |
Finance leases | $ 51,661 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases | ||
Operating lease assets | $ 2,513,219 | $ 1,493,410 |
Other current liabilities | $ 163,915 | $ 75,748 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Operating lease liabilities | $ 2,500,747 | $ 1,453,395 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Operating lease liabilities | Operating lease liabilities |
Total | $ 2,664,662 | $ 1,529,143 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable, Current, Operating lease liabilities | Accounts Payable, Current, Operating lease liabilities |
Property and equipment, gross | $ 9,567,178 | $ 7,887,898 |
Accumulated depreciation | (4,566,698) | (4,630,111) |
Property and equipment, net | 5,000,480 | 3,257,787 |
Other current liabilities | $ 41,915 | $ 34,772 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Capital Lease Obligations, Current | Long-term Debt and Capital Lease Obligations, Current |
Other long-term liabilities | $ 75,139 | $ 64,886 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long Term Debt And Finance Lease Obligations Net Of Current Portion | Long Term Debt And Finance Lease Obligations Net Of Current Portion |
Total | $ 117,054 | $ 99,658 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Capital Lease Obligations, Current, Long Term Debt And Finance Lease Obligations Net Of Current Portion | Long-term Debt and Capital Lease Obligations, Current, Long Term Debt And Finance Lease Obligations Net Of Current Portion |
Operating Lease, Weighted Average Remaining Lease Term | 12 years 2 months 12 days | 12 years 10 months 24 days |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 7 months 6 days | 2 years 7 months 6 days |
Operating Lease, Weighted Average Discount Rate, Percent | 6.90% | 5.30% |
Finance Lease, Weighted Average Discount Rate, Percent | 9.70% | 11% |
Property and equipment | ||
Leases | ||
Property and equipment, gross | $ 397,127 | $ 568,889 |
Accumulated depreciation | (297,754) | (499,188) |
Property and equipment, net | $ 99,373 | $ 69,701 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Maturities of lease liabilities: Operating lease | ||
2022 (remaining three months) | $ 51,993 | |
2023 | 236,556 | |
2024 | 259,893 | |
2025 | 287,072 | |
2026 | 314,762 | |
Thereafter | 3,018,557 | |
Total lease payments | 4,168,833 | |
Less: Imputed interest | (1,504,171) | |
Total | 2,664,662 | $ 1,529,143 |
Less: Current portion | (163,915) | (75,748) |
Long-term portion of lease obligations | 2,500,747 | 1,453,395 |
Maturities of lease liabilities: Finance lease | ||
2022 (remaining three months) | 10,017 | |
2023 | 54,125 | |
2024 | 45,532 | |
2025 | 15,756 | |
2026 | 7,058 | |
Total lease payments | 132,488 | |
Less: Imputed interest | (15,434) | |
Total | 117,054 | 99,658 |
Less: Current portion | (41,915) | (34,772) |
Long-term portion of lease obligations | 75,139 | $ 64,886 |
Future minimum payments for total lease liabilities | ||
2022 (remaining three months) | 62,010 | |
2023 | 290,681 | |
2024 | 305,425 | |
2025 | 302,828 | |
2026 | 321,820 | |
Thereafter | 3,018,557 | |
Total lease payments | 4,301,321 | |
Less: Imputed interest | (1,519,605) | |
Total | 2,781,716 | |
Less: Current portion | (205,830) | |
Long-term portion of lease obligations | $ 2,575,886 |
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, 2022 | Dec. 31, 2021 |
Debt Instrument | ||
Carrying Value | $ 19,387,435 | $ 21,387,069 |
Fair Value | 14,990,733 | 21,425,474 |
Unamortized deferred financing costs and other debt discounts, net | (59,087) | (69,711) |
Finance lease obligations | 117,054 | 99,658 |
Total long-term debt and finance lease obligations (including current portion) | $ 19,445,402 | $ 21,417,016 |
Interest rate (as a percent) | 0.25% | |
5 7/8% Senior Notes due 2022 | ||
Debt Instrument | ||
Interest rate (as a percent) | 5.875% | 5.875% |
2 3/8% Convertible Notes due 2024 | ||
Debt Instrument | ||
Interest rate (as a percent) | 2.375% | |
DISH DBS Corporation ("DBS") | 5 7/8% Senior Notes due 2022 | ||
Debt Instrument | ||
Carrying Value | $ 2,000,000 | |
Fair Value | 2,039,700 | |
Interest rate (as a percent) | 5.875% | |
DISH DBS Corporation ("DBS") | 5% Senior Notes due 2023 | ||
Debt Instrument | ||
Carrying Value | $ 1,500,000 | 1,500,000 |
Fair Value | $ 1,474,080 | 1,541,670 |
Interest rate (as a percent) | 5% | |
DISH DBS Corporation ("DBS") | 2 3/8% Convertible Notes due 2024 | ||
Debt Instrument | ||
Carrying Value | $ 1,000,000 | 1,000,000 |
Fair Value | $ 908,090 | 966,990 |
Interest rate (as a percent) | 2.375% | |
DISH DBS Corporation ("DBS") | 5 7/8% Senior Notes due 2024 | ||
Debt Instrument | ||
Carrying Value | $ 2,000,000 | 2,000,000 |
Fair Value | $ 1,789,840 | 2,060,180 |
Interest rate (as a percent) | 5.875% | |
DISH DBS Corporation ("DBS") | 0% Convertible Notes due 2025 | ||
Debt Instrument | ||
Carrying Value | $ 2,000,000 | 2,000,000 |
Fair Value | $ 1,321,140 | 2,016,880 |
Interest rate (as a percent) | 0% | |
DISH DBS Corporation ("DBS") | 7 3/4% Senior Notes due 2026 | ||
Debt Instrument | ||
Carrying Value | $ 2,000,000 | 2,000,000 |
Fair Value | $ 1,538,100 | 2,122,700 |
Interest rate (as a percent) | 7.75% | |
DISH DBS Corporation ("DBS") | 3 3/8% Convertible Notes due 2026 | ||
Debt Instrument | ||
Carrying Value | $ 3,000,000 | 3,000,000 |
Fair Value | $ 2,067,570 | 2,844,030 |
Interest rate (as a percent) | 3.375% | |
DISH DBS Corporation ("DBS") | 5 1/4% Senior Secured Notes due 2026 | ||
Debt Instrument | ||
Carrying Value | $ 2,750,000 | 2,750,000 |
Fair Value | $ 2,279,503 | 2,792,900 |
Interest rate (as a percent) | 5.25% | |
DISH DBS Corporation ("DBS") | 7 3/8% Senior Notes due 2028 | ||
Debt Instrument | ||
Carrying Value | $ 1,000,000 | 1,000,000 |
Fair Value | $ 677,730 | 1,017,060 |
Interest rate (as a percent) | 7.375% | |
DISH DBS Corporation ("DBS") | 5 3/4% Senior Secured Notes due 2028 | ||
Debt Instrument | ||
Carrying Value | $ 2,500,000 | 2,500,000 |
Fair Value | $ 1,906,050 | 2,520,650 |
Interest rate (as a percent) | 5.75% | |
DISH DBS Corporation ("DBS") | 5 1/8 % Senior Notes due 2029 | ||
Debt Instrument | ||
Carrying Value | $ 1,500,000 | 1,500,000 |
Fair Value | $ 891,195 | 1,365,645 |
Interest rate (as a percent) | 5.125% | |
DISH DBS Corporation ("DBS") | Mortgages and other notes payable | ||
Debt Instrument | ||
Carrying Value | $ 137,435 | 137,069 |
Fair Value | $ 137,435 | $ 137,069 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Obligations - Narratives (Details) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 21, 2020 | Mar. 17, 2017 | Aug. 08, 2016 | |
Debt Instrument | |||||
Interest rate (as a percent) | 0.25% | ||||
Class A common stock | |||||
Debt Instrument | |||||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
5 7/8% Senior Notes due 2022 | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.875% | 5.875% | |||
5 7/8% Senior Notes due 2022 | DISH DBS Corporation ("DBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.875% | ||||
5% Senior Notes due 2023 | |||||
Debt Instrument | |||||
Aggregate principal amount | $ 1,500,000,000 | ||||
5% Senior Notes due 2023 | DISH DBS Corporation ("DBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5% | ||||
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% | ||||
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 ("DBS") | |||||
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 ("DBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 0% | ||||
Aggregate principal amount | $ 2,000,000,000 | ||||
Redemption price as a percentage of principal amount | 100% | ||||
5 7/8% Senior Notes due 2024 | DISH DBS Corporation ("DBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.875% | ||||
7 3/4% Senior Notes due 2026 | DISH DBS Corporation ("DBS") | |||||
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% | ||||
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% | ||||
3 3/8% Convertible Notes due 2026 | DISH DBS Corporation ("DBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 3.375% | ||||
7 3/8% Senior Notes due 2028 | DISH DBS Corporation ("DBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 7.375% | ||||
5 1/8 % Senior Notes due 2029 | DISH DBS Corporation ("DBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.125% | ||||
5 1/4% Senior Secured Notes due 2026 | DISH DBS Corporation ("DBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.25% | ||||
5 3/4% Senior Secured Notes due 2028 | DISH DBS Corporation ("DBS") | |||||
Debt Instrument | |||||
Interest rate (as a percent) | 5.75% |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Obligations - Intercompany Loan (Details) - USD ($) $ in Thousands | 9 Months Ended | 177 Months Ended | ||
Sep. 01, 2022 | Feb. 11, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | |
Debt Instrument | ||||
Interest rate (as a percent) | 0.25% | 0.25% | ||
Payment to customer | $ 0 | $ 30,000,000 | ||
DISH DBS Corporation ("DBS") | ||||
Debt Instrument | ||||
Minimum interest payment due (in percent) | 50% | |||
Interest payment in kind (in percent) | 0.75% | |||
5 1/4% Senior Secured Notes due 2026 | DISH DBS Corporation ("DBS") | ||||
Debt Instrument | ||||
Interest rate (as a percent) | 5.25% | 5.25% | ||
5 3/4% Senior Secured Notes due 2028 | DISH DBS Corporation ("DBS") | ||||
Debt Instrument | ||||
Interest rate (as a percent) | 5.75% | 5.75% | ||
Intercompany Loan | DISH DBS Corporation ("DBS") | ||||
Debt Instrument | ||||
Additional debt | $ 1,500,000 | |||
Outstanding amount | $ 6,945,000 | $ 6,945,000 | ||
Intercompany Loan | DISH DBS Corporation ("DBS") | Ghz 3.45 to 3.55 | ||||
Debt Instrument | ||||
Cash proceeds | 6,750,000 | |||
Cash and marketable investment securities paid | 455,000 | |||
Payment to customer | $ 7,205,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 177 Months Ended | ||||||||||||||||
Sep. 01, 2022 USD ($) | Jul. 11, 2022 item | Jun. 14, 2022 | Jan. 14, 2022 USD ($) item | Dec. 30, 2020 USD ($) | Jul. 26, 2019 USD ($) | Jun. 07, 2018 USD ($) | Jun. 06, 2018 | Aug. 18, 2015 USD ($) | Dec. 31, 2027 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2018 USD ($) item | Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) item | Jun. 14, 2025 | Jun. 14, 2023 | Dec. 31, 2021 USD ($) | Jul. 31, 2020 USD ($) | |
Commitment and Contingencies | ||||||||||||||||||||
Network development current and future expenditures | $ 10,000,000 | |||||||||||||||||||
Percentage of population for deploy 5G services | 20% | |||||||||||||||||||
Payment to customer | $ 0 | $ 30,000,000 | ||||||||||||||||||
Proceeds from Refund of Deposits on Auction | $ 337,490 | |||||||||||||||||||
Percentage of Population 5G Services offered | 70% | 70% | 75% | 50% | ||||||||||||||||
Percentage of Population Northstar Wireless and SNR Wireless offered | 75% | |||||||||||||||||||
FCC authorizations | $ 36,687,855 | $ 36,687,855 | $ 28,632,665 | |||||||||||||||||
Interest rate (as a percent) | 0.25% | 0.25% | ||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||
Noncontrolling Interest in Variable Interest Entity | $ 10,000,000 | $ 10,000,000 | ||||||||||||||||||
Capitalized interest on FCC authorizations | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Percentage of Population 5G Services offered | 70% | |||||||||||||||||||
FCC authorizations | 7,000,000 | 7,000,000 | ||||||||||||||||||
Spectrum Purchase Agreement | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Total | 360,000 | 360,000 | ||||||||||||||||||
Purchase price | $ 3,590,000 | |||||||||||||||||||
Asset Purchase Agreement, Termination Fee Payable | $ 72,000 | |||||||||||||||||||
Contractual Obligation | $ 360,000 | 360,000 | ||||||||||||||||||
Class B common stock | Northstar Manager LLC | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 3% | |||||||||||||||||||
Minimum | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Percentage of population for deploy 5G services | 70% | |||||||||||||||||||
Northstar Manager LLC | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Accrued redeemable non-controlling interest | $ 93,000 | 93,000 | ||||||||||||||||||
Northstar Manager LLC | Class B common stock | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Ownership percentage | 97% | |||||||||||||||||||
Payment For Purchase Agreement | $ 312,000 | |||||||||||||||||||
Auction 108 | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Number of other qualified participants in auction | item | 81 | |||||||||||||||||||
Wireless | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Network development current and future expenditures | 10,000,000 | |||||||||||||||||||
Percentage of population for deploy 5G services | 20% | 70% | 20% | |||||||||||||||||
Payment to customer | 30,000,000 | |||||||||||||||||||
FCC authorizations | $ 19,698,169 | 19,698,169 | ||||||||||||||||||
Wireless | Forecast | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Percentage of population for deploy 5G services | 70% | |||||||||||||||||||
Wireless | At least 50% by June 2023 | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Percentage of population for deploy 5G services | 50% | |||||||||||||||||||
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 | 6,212,579 | 6,212,579 | ||||||||||||||||||
MVDDS | ||||||||||||||||||||
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 | ||||||||||||||||||
3550-3650 MHz Licenses | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
FCC authorizations | 912,939 | 912,939 | ||||||||||||||||||
Ghz 3.7 to 3.98 | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
FCC authorizations | 2,688 | 2,688 | ||||||||||||||||||
Ghz 3.45 to 3.55 | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Aggregate amount to be paid to the winning bids | $ 7,328,000 | |||||||||||||||||||
FCC authorizations | 7,327,989 | 7,327,989 | ||||||||||||||||||
Number of priority access licenses | item | 1,232 | |||||||||||||||||||
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 | 7,099,297 | 7,099,297 | ||||||||||||||||||
Northstar Spectrum And SNR Holdco | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Ownership interest | 446,000 | 446,000 | 395,000 | |||||||||||||||||
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% | |||||||||||||||||||
Final Build-out Requirement (as a percent) | 75% | |||||||||||||||||||
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% | |||||||||||||||||||
Northstar Wireless or Northstar Spectrum | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Interim payment percentage | 15% | |||||||||||||||||||
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% | |||||||||||||||||||
Northstar Wireless or Northstar Spectrum | Northstar Manager LLC | ||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||
Controlling interest owned by other companies | 15% | |||||||||||||||||||
Equity contribution | $ 133,000 | |||||||||||||||||||
Northstar Wireless or Northstar Spectrum | American II. | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Ownership percentage | 85% | |||||||||||||||||||
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% | |||||||||||||||||||
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% | |||||||||||||||||||
Net winning bid | $ 5,884,000 | |||||||||||||||||||
Northstar Wireless or Northstar Spectrum | SNR Licenses | ||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||
Percentage of bidding credit | 25% | |||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Non-payment gross winning bids | $ 1,211,000 | $ 1,211,000 | ||||||||||||||||||
Interim payment percentage | 15% | |||||||||||||||||||
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% | |||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | Minimum | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 8% | |||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | SNR Wireless Management LLC | ||||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||
Controlling interest owned by other companies | 15% | |||||||||||||||||||
Equity contribution | 93,000 | |||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American II. | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Window of days for management to put its interest | 270 days | 90 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% | |||||||||||||||||||
Window of days for management to put its interest | 90 days | |||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American II. | Minimum | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 8% | |||||||||||||||||||
Window of days for management to put its interest | 30 days | |||||||||||||||||||
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 | |||||||||||||||||||
Value of ownership rights accrued | $ 353,000 | $ 353,000 | ||||||||||||||||||
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% | |||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American III | Maximum | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Interest rate (as a percent) | 12% | |||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American III | Minimum | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Interest rate (as a percent) | 6% | 6% | ||||||||||||||||||
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% | |||||||||||||||||||
Additional Bid Withdrawal Payment | $ 3,000 | |||||||||||||||||||
Commitments relating to AWS-3 Auction | ||||||||||||||||||||
Percentage of bidding credit | 25% | |||||||||||||||||||
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 Common Interests | American III | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Ownership percentage | 85% | |||||||||||||||||||
SNR Wireless or SNR Wireless Holdco Class A Common Interests | American III | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Ownership percentage | 100% | |||||||||||||||||||
American II. | Northstar Manager LLC | Class B common stock | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Ownership percentage | 80% | |||||||||||||||||||
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% | |||||||||||||||||||
Northstar Operative Agreement | Northstar Wireless or Northstar Spectrum | American II. | Maximum | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Interest rate (as a percent) | 12% | |||||||||||||||||||
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% | |||||||||||||||||||
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 | |||||||||||||||||||
5G network deployment obligations | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Total | $ 2,682,000 | 2,682,000 | ||||||||||||||||||
Contractual Obligation | 2,682,000 | 2,682,000 | ||||||||||||||||||
Interest expense on finance lease obligations | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Total | 2,939,000 | 2,939,000 | ||||||||||||||||||
Contractual Obligation | 2,939,000 | 2,939,000 | ||||||||||||||||||
Satellite-related obligations | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
2022 (remaining three months) | 1,280,212 | 1,280,212 | ||||||||||||||||||
2023 | 3,240,617 | 3,240,617 | ||||||||||||||||||
2024 | 2,335,208 | 2,335,208 | ||||||||||||||||||
2025 | 1,884,912 | 1,884,912 | ||||||||||||||||||
2026 | 1,871,594 | 1,871,594 | ||||||||||||||||||
Thereafter | 5,011,686 | 5,011,686 | ||||||||||||||||||
Total | 15,624,229 | 15,624,229 | 12,685,000 | |||||||||||||||||
Decrease in contractual obligations | 1,285,000 | |||||||||||||||||||
Contractual Obligation | $ 15,624,229 | $ 15,624,229 | $ 12,685,000 | |||||||||||||||||
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 | |||||||||||||||||||
Subsequent event | Wireless | ||||||||||||||||||||
Commitment and Contingencies | ||||||||||||||||||||
Percentage of population for deploy 5G services | 70% |
Commitments and Contingencies -
Commitments and Contingencies - Part 2 (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 23, 2016 USD ($) | Aug. 18, 2015 USD ($) | Mar. 14, 2014 USD ($) | Feb. 28, 2022 USD ($) | Jan. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Oct. 02, 2016 patent | |
Loss contingencies | ||||||||
Network development current and future expenditures | $ 10,000,000,000 | |||||||
Loss contingency terms | ||||||||
Number Of patents | patent | 4 | |||||||
Wireless | ||||||||
Loss contingencies | ||||||||
Network development current and future expenditures | $ 10,000,000,000 | |||||||
Ghz 3.45 to 3.55 | ||||||||
Loss contingencies | ||||||||
Aggregate bids totaled | $ 7,205,000,000 | $ 7,205,000,000 | ||||||
Payment to Federal Communication Commission as Deposit for Auction | $ 123,000,000 | |||||||
Northstar Spectrum And SNR Holdco | AWS-3 Licenses | ||||||||
Loss contingencies | ||||||||
Interim Build-out Requirement (as a percent) | 40% | |||||||
Final Build-out Requirement (as a percent) | 75% | |||||||
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% | |||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | ||||||||
Loss contingency terms | ||||||||
Percentage of bidding credit | 25% | |||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | Vermont National Telephone Company | ||||||||
Loss contingency terms | ||||||||
Percentage of bidding credit | 25% | |||||||
Recovery amount | $ 10,000,000,000 | |||||||
Bidding credit value | 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% | |||||||
Northstar Wireless or Northstar Spectrum | Northstar Licenses | ||||||||
Loss contingency terms | ||||||||
Bidding credit value | $ 1,961,000,000 | |||||||
SNR Wireless or SNR Wireless Holdco | SNR Licenses | ||||||||
Loss contingency terms | ||||||||
Percentage of bidding credit | 25% | |||||||
Bidding credit value | $ 1,370,000,000 | |||||||
Pending Litigation | ClearPlay | ||||||||
Loss contingency terms | ||||||||
Claim amount | $ 885,000,000 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Segment information | |||||
Number of primary operating business segments | segment | 2 | ||||
Total assets | $ 49,003,024 | $ 49,003,024 | $ 48,001,725 | ||
Revenues | 4,095,451 | $ 4,449,635 | 12,636,034 | $ 13,434,448 | |
Operating income (loss) | 427,029 | 717,705 | 1,670,324 | 2,489,019 | |
United States | |||||
Segment information | |||||
Revenues | 4,082,463 | 4,432,751 | 12,603,549 | 13,390,248 | |
Canada And Mexico | |||||
Segment information | |||||
Revenues | 12,988 | 16,884 | 32,485 | 44,200 | |
Pay-TV | Operating segment | |||||
Segment information | |||||
Total assets | 43,874,451 | 43,874,451 | 43,799,761 | ||
Revenues | 3,078,418 | 3,220,128 | 9,399,244 | 9,676,487 | |
Operating income (loss) | 647,654 | 699,730 | 2,185,171 | 2,299,387 | |
Wireless | Operating segment | |||||
Segment information | |||||
Total assets | 44,309,666 | 44,309,666 | 33,310,090 | ||
Revenues | 1,018,132 | 1,230,072 | 3,241,590 | 3,761,834 | |
Operating income (loss) | (220,625) | 17,975 | (514,847) | 189,632 | |
All Other & Eliminations | Eliminations | |||||
Segment information | |||||
Total assets | (39,181,093) | (39,181,093) | $ (29,108,126) | ||
Revenues | (1,099) | (565) | (4,800) | (3,873) | |
Pay-TV video and related revenue | |||||
Segment information | |||||
Revenues | 3,037,279 | 3,175,193 | 9,280,621 | 9,541,602 | |
Wireless services and related revenue | |||||
Segment information | |||||
Revenues | 892,820 | 1,038,042 | 2,754,008 | 3,136,016 | |
Equipment sales and other revenue | All other | |||||
Segment information | |||||
Revenues | (1,099) | (565) | (4,800) | (3,873) | |
Equipment sales and other revenue | Pay-TV | |||||
Segment information | |||||
Revenues | 41,139 | 44,935 | 118,623 | 134,885 | |
Equipment sales and other revenue | Wireless | |||||
Segment information | |||||
Revenues | $ 125,312 | $ 192,030 | $ 487,582 | $ 625,818 |
Contract Balances - Valuation A
Contract Balances - Valuation And Qualifying Accounts Activity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Contract Balances | |
Balance at Beginning of Period | $ 38,534 |
Current Period Provision for Expected Credit Losses | 53,141 |
Write-offs Charged Against Allowance | (54,966) |
Balance at End of Period | $ 36,709 |
Contract Balances - Deferred Re
Contract Balances - Deferred Revenues (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Contract liability | $ 686,700 | $ 714,428 |
Customer Contract | ||
Contract liability | $ 706,000 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Aug. 19, 2016 | Oct. 02, 2012 | Feb. 28, 2019 | Mar. 31, 2017 | Dec. 31, 2011 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) item | Sep. 30, 2021 USD ($) | Dec. 31, 2009 | Dec. 31, 2021 USD ($) | |
Related Party Transactions | |||||||||||
Trade accounts receivable, net | $ 965,387 | $ 965,387 | $ 942,561 | ||||||||
Trade accounts payable | 902,157 | 902,157 | 848,224 | ||||||||
Cost of sales - equipment and other | 452,749 | $ 380,710 | $ 1,364,087 | $ 1,154,020 | |||||||
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 | 2,000 | $ 6,000 | 6,000 | |||||||
EchoStar | |||||||||||
Related Party Transactions | |||||||||||
Trade accounts receivable, net | 1,000 | 1,000 | 1,000 | ||||||||
Trade accounts payable | 10,000 | 10,000 | $ 9,000 | ||||||||
Equipment sales and other revenue | 1,000 | 1,000 | |||||||||
Cost of services | 3,000 | 9,000 | 11,000 | ||||||||
General and Administrative Expense | 3,000 | 4,000 | 10,000 | 16,000 | |||||||
EchoStar | EchoStar | |||||||||||
Related Party Transactions | |||||||||||
Equipment sales and other revenue | $ 4,000 | 4,000 | |||||||||
EchoStar | El Paso Lease Agreement | |||||||||||
Related Party Transactions | |||||||||||
Number of consecutive three year renewal options | item | 4 | ||||||||||
Term of renewal option | 3 years | ||||||||||
EchoStar | 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 | 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 | ||||||||||
EchoStar | Rovi License Agreement | |||||||||||
Related Party Transactions | |||||||||||
Agreement term | 10 years | ||||||||||
Amount paid to related party | $ 0 | ||||||||||
EchoStar | Tax Sharing Agreement | |||||||||||
Related Party Transactions | |||||||||||
payment made for tax benefit received | 13,000 | 13,000 | |||||||||
Related Party Transaction, Remaining Payment Of Tax Benefit To Be Paid | 69,000 | 69,000 | |||||||||
Net amount of the allocated tax attributes payable | 82,000 | $ 82,000 | |||||||||
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 | 3,000 | 1,000 | $ 7,000 | 4,000 | |||||||
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 | ||||||||||
NBIoT capitalized costs | |||||||||||
Related Party Transactions | |||||||||||
Cost of sales - equipment and other | $ 1,000 | $ 1,000 | $ 4,000 | $ 4,000 | |||||||
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 - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Feb. 28, 2017 | |
NagraStar | ||||||
Related Party Transactions | ||||||
Ownership interest (as a percent) | 50% | |||||
Purchases from related party | $ 32,713 | $ 35,124 | ||||
Dish Mexico | ||||||
Related Party Transactions | ||||||
Ownership interest (as a percent) | 49% | 49% | ||||
Revenue from related party | $ 2,000 | 21,297 | ||||
NagraStar | ||||||
Related Party Transactions | ||||||
Purchases from related party | $ 10,285 | $ 11,451 | ||||
Amounts payable to related party | 11,434 | 11,434 | $ 11,988 | |||
Commitments to related party | 3,241 | 3,241 | 5,630 | |||
Dish Mexico | ||||||
Related Party Transactions | ||||||
Revenue from related party | 709 | 7,121 | ||||
Amounts receivable from related party | 685 | 685 | $ 6,692 | |||
Dish Mexico | Satellite Capacity | ||||||
Related Party Transactions | ||||||
Revenue from related party | 5,866 | |||||
Dish Mexico | Satellite Capacity | Dish Mexico | ||||||
Related Party Transactions | ||||||
Revenue from related party | 17,597 | |||||
Dish Mexico | Uplink Services | ||||||
Related Party Transactions | ||||||
Revenue from related party | $ 709 | $ 1,255 | ||||
Dish Mexico | Uplink Services | Dish Mexico | ||||||
Related Party Transactions | ||||||
Revenue from related party | $ 2,000 | $ 3,700 |