Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-31929 | |
Entity Registrant Name | DISH DBS Corporation | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-1328967 | |
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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,015 | |
Entity Central Index Key | 0001042642 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 1,616,124 | $ 1,238,409 |
Marketable investment securities | 48,995 | 132,593 |
Trade accounts receivable, net of allowance for credit losses of $34,293 and $43,233, respectively | 581,770 | 626,375 |
Inventory | 248,548 | 262,297 |
Other current assets | 214,569 | 272,955 |
Total current assets | 2,710,006 | 2,532,629 |
Noncurrent Assets: | ||
Restricted cash, cash equivalents and marketable investment securities | 58,255 | 58,323 |
Property and equipment, net | 1,494,019 | 1,564,704 |
FCC authorizations | 611,794 | 611,794 |
Other investment securities | 98,050 | 97,306 |
Operating lease assets | 335,609 | 380,968 |
Other noncurrent assets, net | 209,234 | 222,311 |
Total noncurrent assets | 2,806,961 | 2,935,406 |
Total assets | 5,516,967 | 5,468,035 |
Current Liabilities: | ||
Trade accounts payable | 378,460 | 315,661 |
Deferred revenue and other | 632,560 | 667,226 |
Accrued programming | 1,311,223 | 1,388,407 |
Accrued interest | 169,903 | 216,459 |
Other accrued expenses | 607,081 | 625,342 |
Current portion of long-term debt and finance lease obligations | 1,847,459 | 2,052,374 |
Total current liabilities | 4,946,686 | 5,265,469 |
Long-Term Obligations, Net of Current Portion: | ||
Long-term debt and finance lease obligations, net of current portion | 8,606,800 | 8,619,116 |
Deferred tax liabilities | 500,380 | 514,928 |
Operating lease liabilities | 165,514 | 192,624 |
Long-term deferred revenue and other long-term liabilities | 185,586 | 195,903 |
Total long-term obligations, net of current portion | 9,458,280 | 9,522,571 |
Total liabilities | 14,404,966 | 14,788,040 |
Commitments and Contingencies (Note12) | ||
Stockholder's Equity (Deficit): | ||
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | ||
Additional paid-in capital | 1,471,083 | 1,463,407 |
Accumulated other comprehensive income (loss) | (1,002) | (805) |
Accumulated earnings (deficit) | (10,358,080) | (10,782,607) |
Total stockholder's equity (deficit) | (8,887,999) | (9,320,005) |
Total liabilities and stockholder's equity (deficit) | $ 5,516,967 | $ 5,468,035 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Allowance for credit losses | $ 34,293 | $ 43,233 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 1,015 | 1,015 |
Common stock, shares outstanding | 1,015 | 1,015 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | ||
Total revenue | $ 3,162,919 | $ 3,167,782 |
Costs and Expenses (exclusive of depreciation shown separately below - Note 6): | ||
Cost of services | 1,958,699 | 2,072,432 |
Cost of sales - equipment and other | 16,275 | 30,814 |
Selling, general and administrative expenses | 333,074 | 422,249 |
Depreciation and amortization (Note 6) | 115,242 | 135,085 |
Total costs and expenses | 2,423,290 | 2,660,580 |
Operating income (loss) | 739,629 | 507,202 |
Other Income (Expense): | ||
Interest income | 806 | 850 |
Interest expense, net of amounts capitalized | (173,976) | (182,340) |
Other, net | (1,508) | 945 |
Total other income (expense) | (174,678) | (180,545) |
Income (loss) before income taxes | 564,951 | 326,657 |
Income tax (provision) benefit, net | (140,424) | (82,504) |
Net income (loss) | 424,527 | 244,153 |
Net income (loss) attributable to DISH DBS | 424,527 | 244,153 |
Comprehensive Income (Loss): | ||
Net income (loss) | 424,527 | 244,153 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (195) | (352) |
Unrealized holding gains (losses) on available-for-sale debt securities | (2) | (11) |
Total other comprehensive income (loss), net of tax | (197) | (363) |
Comprehensive income (loss) | 424,330 | 243,790 |
Service revenue | ||
Revenue: | ||
Total revenue | 3,137,387 | 3,130,900 |
Equipment sales and other revenue | ||
Revenue: | ||
Total revenue | $ 25,532 | $ 36,882 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) - USD ($) $ in Thousands | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Total |
Balance at Dec. 31, 2019 | $ 1,432,736 | $ (449) | $ (12,366,909) | $ (10,934,622) |
Increase (Decrease) in Stockholder's Equity | ||||
Non-cash, stock-based compensation | 6,953 | 6,953 | ||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | (11) | (11) | ||
Foreign currency translation | (352) | (352) | ||
Net income (loss) | 244,153 | 244,153 | ||
Balance at Mar. 31, 2020 | 1,439,689 | (812) | (12,122,756) | (10,683,879) |
Increase (Decrease) in Stockholder's Equity | ||||
ASU 2014-09 cumulative catch-up adjustment | (10,782,607) | |||
Balance at Dec. 31, 2020 | 1,463,407 | (805) | (10,782,607) | (9,320,005) |
Increase (Decrease) in Stockholder's Equity | ||||
Non-cash, stock-based compensation | 7,676 | 7,676 | ||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | (2) | (2) | ||
Foreign currency translation | (195) | (195) | ||
Net income (loss) | 424,527 | 424,527 | ||
Balance at Mar. 31, 2021 | $ 1,471,083 | $ (1,002) | $ (10,358,080) | (8,887,999) |
Increase (Decrease) in Stockholder's Equity | ||||
ASU 2014-09 cumulative catch-up adjustment | $ (10,358,080) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 424,527 | $ 244,153 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation and amortization | 115,242 | 135,085 |
Realized and unrealized losses (gains) on investments | 2,600 | |
Non-cash, stock-based compensation | 7,676 | 6,953 |
Deferred tax expense (benefit) | (14,548) | (13,519) |
Allowance for credit losses and allowance for doubtful accounts, respectively | (8,940) | 19,526 |
Other, net | 3,719 | 4,804 |
Changes in current assets and current liabilities, net | 32,499 | 137,511 |
Net cash flows from operating activities | 562,775 | 534,513 |
Cash Flows From Investing Activities: | ||
(Purchases) Sales and maturities of marketable investment securities, net | 83,596 | (60,543) |
Purchases of property and equipment | (49,802) | (75,421) |
Other, net | 2,200 | 2,017 |
Net cash flows from investing activities | 35,994 | (133,947) |
Cash Flows From Financing Activities: | ||
Repurchases of senior notes | (205,354) | |
Early debt extinguishment | (2,517) | |
Advances to affiliates | (82,415) | |
Repayment of long-term debt and finance lease obligations | (13,251) | (11,452) |
Net cash flows from financing activities | (221,122) | (93,867) |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | 377,647 | 306,699 |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4) | 1,296,732 | 78,103 |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4) | $ 1,674,379 | $ 384,802 |
Organization and Business Activ
Organization and Business Activities | 3 Months Ended |
Mar. 31, 2021 | |
Organization and Business Activities | |
Organization and Business Activities | 1. Organization and Business Activities Principal Business DISH DBS Corporation (which together with its subsidiaries is referred to as “DISH DBS,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context) is a holding company and an indirect, wholly-owned subsidiary of DISH Network Corporation (“DISH Network”). DISH DBS was formed under Colorado law in January 1996 and its common stock is held by DISH Orbital Corporation (“DOC”), a direct subsidiary of DISH Network. Our subsidiaries operate one business segment. Pay-TV We offer Pay-TV services under the DISH ® ® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, FCC licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear streaming over-the-top (“OTT”) Internet-based domestic, international and Latino video programming services (“SLING TV”). As of March 31, 2021, we had |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020. Certain prior period amounts have been reclassified to conform to the current period presentation. Principles of Consolidation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. 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. 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, 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, relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. 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 March 31, 2021 and December 31, 2020, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. 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 8 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, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the three months ended March 31, 2021 and 2020, we capitalized million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 and December 31, 2020, we had a total of million, respectively, capitalized on our Condensed Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising Costs We recognize advertising expense when incurred as a component of selling, general and administrative expense. Advertising expenses totaled Research and Development Research and development costs are expensed as incurred and are included in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Research and development costs totaled |
Supplemental Data - Statements
Supplemental Data - Statements of Cash Flows | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Data - Statements of Cash Flows | |
Supplemental Data - Statements of Cash Flows | 3. Supplemental Data - Statements of Cash Flows The following table presents certain supplemental cash flow and other non-cash data. See Note 7 for supplemental cash flow and non-cash data related to leases. For the Three Months Ended March 31, 2021 2020 (In thousands) Cash paid for interest $ 211,139 $ 174,647 Cash received for interest 806 850 Cash paid for income taxes 404 130 Cash paid for income taxes to DISH Network 146,386 90,617 Our parent, DISH Network, provides a centralized system for the management of our cash and marketable investment securities as it does for all of its subsidiaries to, among other reasons, maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our Condensed Consolidated Balance Sheets is a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Condensed Consolidated Balance Sheets and managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each period presented on our Condensed Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities. |
Marketable Investment Securitie
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 3 Months Ended |
Mar. 31, 2021 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 4. 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 March 31, December 31, 2021 2020 (In thousands) Marketable investment securities: Current marketable investment securities $ 48,995 $ 132,593 Restricted marketable investment securities (1) — — Total marketable investment securities 48,995 132,593 Restricted cash and cash equivalents (1) 58,255 58,323 Other investment securities: Other investment securities 98,050 97,306 Total other investment securities 98,050 97,306 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 205,300 $ 288,222 (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 stockholder’s 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). See Note 2 for further information. Current Marketable Investment Securities Our current marketable investment securities portfolio can include investments in various debt instruments including, among others, commercial paper, corporate securities and United States treasury and/or agency securities. Commercial paper consists mainly of unsecured short-term promissory notes, issued primarily by corporations, with maturities ranging up to 365 days . Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months . U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies. Restricted Cash, Cash Equivalents and Marketable Investment Securities As of March 31, 2021 and December 31, 2020, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts. Other Investment Securities We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investment securities” on our Condensed Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and our equity securities are accounted for using the equity method of accounting or recorded at fair value. Certain of our equity method investments are detailed below. NagraStar L.L.C. We own a 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, DIRECTV, LLC, a wholly-owned indirect subsidiary of AT&T Inc., and Cavendish Square Holding B.V., an affiliate of WPP plc, entered into a series of agreements to acquire Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. The transaction closed in January 2017. Our ability to realize value from our strategic investments in securities that are not publicly traded depends on the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them. Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of March 31, 2021 December 31, 2020 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 1,653,660 $ 60,153 $ 1,593,507 $ — $ 1,278,971 $ 172,025 $ 1,106,946 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ — $ — $ — $ — $ 22,476 $ 22,476 $ — $ — Commercial paper 47,590 — 47,590 — 101,959 — 101,959 — Corporate securities 877 — 877 — 8,068 — 8,068 — Other 528 — 528 — 90 — 90 — Total $ 48,995 $ — $ 48,995 $ — $ 132,593 $ 22,476 $ 110,117 $ — As of March 31, 2021, restricted and non-restricted marketable investment securities included debt securities of $49 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. Gains and Losses on Sales and Changes in Carrying Amounts of Investments “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 March 31, Other, net: 2021 2020 (In thousands) Costs related to early redemption of debt $ (2,600) $ — Equity in earnings (losses) of affiliates 903 278 Other 189 667 Total $ (1,508) $ 945 |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2021 | |
Inventory | |
Inventory | 5. Inventory Inventory consisted of the following: As of March 31, December 31, 2021 2020 (In thousands) Finished goods $ 217,399 $ 226,866 Work-in-process and service repairs 22,468 25,206 Raw materials 8,681 10,225 Total inventory $ 248,548 $ 262,297 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property and Equipment | |
Property and Equipment | 6. Property and Equipment Property and equipment consisted of the following: Depreciable As of Life March 31, December 31, (In Years) 2021 2020 (In thousands) Equipment leased to customers 2 - 5 $ 1,672,399 $ 1,719,778 EchoStar XV 15 277,658 277,658 EchoStar XVIII 15 411,255 411,255 Satellites acquired under finance lease agreements 15 398,107 398,107 Furniture, fixtures, equipment and other 2 - 20 1,989,431 1,969,107 Buildings and improvements 5 - 40 300,246 301,037 Land - 13,186 13,186 Construction in progress - 42,579 51,800 Total property and equipment 5,104,861 5,141,928 Accumulated depreciation (3,610,842) (3,577,224) Property and equipment, net $ 1,494,019 $ 1,564,704 Depreciation and amortization expense consisted of the following: For the Three Months Ended March 31, 2021 2020 (In thousands) Equipment leased to customers $ 64,262 $ 79,682 Satellites 23,797 23,797 Buildings, furniture, fixtures, equipment and other 27,183 31,606 Total depreciation and amortization $ 115,242 $ 135,085 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. Pay-TV Satellites. of which we own and depreciate over their estimated useful life. We currently utilize certain capacity on satellites that we lease from third parties. All leased satellites are accounted for as operating leases except Nimiq 5 and Anik F3, which are accounted for as financing leases and are depreciated over their economic life. As of March 31, 2021, our pay-TV satellite fleet consisted of the following: Degree Launch Orbital Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 N/A EchoStar XVIII June 2016 61.5 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from DISH Network (2): EchoStar X February 2006 110 February 2022 EchoStar XI July 2008 110 September 2021 EchoStar XIV March 2010 119 February 2023 EchoStar XVI November 2012 61.5 January 2023 Nimiq 5 September 2009 72.7 September 2021 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2022 (1) See Note 13 for further information on our Related Party Transactions with EchoStar. (2) See Note 13 for further information on our Related Party Transactions with DISH Network. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases | |
Leases | 7. Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 11 years , some of which include renewal options , and some of which include options to terminate the leases within one year . Our Anik F3 and Nimiq 5 satellites are accounted for as financing leases. Substantially all of our remaining leases are accounted for as operating leases, including the remainder of our satellite fleet. The components of lease expense were as follows: For the Three Months Ended March 31, 2021 2020 (In thousands) Operating lease cost $ 60,023 $ 61,715 Short-term lease cost (1) 4,236 2,667 Finance lease cost: Amortization of right-of-use assets 12,374 12,448 Interest on lease liabilities 3,716 4,798 Total finance lease cost 16,090 17,246 Total lease costs $ 80,349 $ 81,628 (1) Leases that have terms of 12 months or less . Supplemental cash flow information related to leases was as follows: For the Three Months Ended March 31, 2021 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 59,178 $ 61,808 Operating cash flows from finance leases $ 3,652 $ 4,798 Financing cash flows from finance leases $ 12,580 $ 11,466 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,417 $ 6,749 Finance leases $ — $ — Supplemental balance sheet information related to leases was as follows: As of March 31, December 31, 2021 2020 (In thousands) Operating Leases: Operating lease assets $ 335,609 $ 380,968 Other current liabilities $ 169,566 $ 186,967 Operating lease liabilities 165,514 192,624 Total operating lease liabilities $ 335,080 $ 379,591 Finance Leases: Property and equipment, gross $ 398,875 $ 398,875 Accumulated depreciation (263,447) (251,073) Property and equipment, net $ 135,428 $ 147,802 Other current liabilities $ 50,260 $ 49,820 Other long-term liabilities 97,098 110,789 Total finance lease liabilities $ 147,358 $ 160,609 Weighted Average Remaining Lease Term: Operating leases 2.9 years 2.9 years Finance leases 3.1 years 3.3 years Weighted Average Discount Rate: Operating leases 8.6% 8.7% Finance leases 9.6% 9.6% Maturities of lease liabilities as of March 31, 2021 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2021 (remaining nine months) $ 151,848 $ 45,696 $ 197,544 2022 138,299 50,227 188,526 2023 32,083 42,862 74,945 2024 13,436 32,147 45,583 2025 8,379 — 8,379 Thereafter 35,487 — 35,487 Total lease payments 379,532 170,932 550,464 Less: Imputed interest (44,452) (23,574) (68,026) Total 335,080 147,358 482,438 Less: Current portion (169,566) (50,260) (219,826) Long-term portion of lease obligations $ 165,514 $ 97,098 $ 262,612 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 3 Months Ended |
Mar. 31, 2021 | |
Long-Term Debt and Finance Lease Obligations | |
Long-Term Debt and Finance Lease Obligations | 8. 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 March 31, 2021 and December 31, 2020: As of March 31, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value (In thousands) 6 3/4% Senior Notes due 2021 (1) 1,794,646 1,811,480 2,000,000 2,047,260 5 7/8% Senior Notes due 2022 2,000,000 2,094,220 2,000,000 2,095,820 5 % Senior Notes due 2023 1,500,000 1,560,705 1,500,000 1,566,300 5 7/8% Senior Notes due 2024 2,000,000 2,101,980 2,000,000 2,099,580 7 3/4% Senior Notes due 2026 2,000,000 2,203,100 2,000,000 2,236,520 7 3/8% Senior Notes due 2028 1,000,000 1,052,940 1,000,000 1,070,130 Other notes payable 23,565 23,565 23,565 23,565 Subtotal 10,318,211 $ 10,847,990 10,523,565 $ 11,139,175 Unamortized deferred financing costs and debt discounts, net (11,310) (12,684) Finance lease obligations (2) 147,358 160,609 Total long-term debt and finance lease obligations (including current portion) $ 10,454,259 $ 10,671,490 (1) During the three months ended March 31, 2021, we repurchased $205 million of our 6 3/4% Senior Notes due 2021 in open market trades. The remaining balance of $1.795 billion matures on June 1, 2021. (2) 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). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 9. Commitments and Contingencies Commitments DISH Network’s 5G Network Deployment DISH Network has directly invested over $12 billion to acquire certain wireless spectrum licenses and related assets and made over $10 billion in non-controlling investments in certain entities, for a total of over $22 billion, as described further below. DISH Network Spectrum DISH Network has directly invested over $12 billion to acquire certain wireless spectrum licenses and related assets. DISH Network’s wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. DISH Network plans to commercialize its wireless spectrum licenses through the completion of the nation’s first cloud-native, Open Radio Access Network (“O-RAN”) based 5G network (the “5G Network Deployment”). , . DISH Network will need to make significant additional investments or partner with others to, among other things, complete its 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 DISH Network completes its 5G Network Deployment, DISH Network will incur significant additional expenses and will have to make significant investments related to, among other things, research and development, wireless testing and wireless network infrastructure. DISH Network may also determine that additional wireless spectrum licenses may be required to complete its 5G Network Deployment and to compete with other wireless service providers. Asset Purchase Agreement. billion as adjusted for specific categories of net working capital on the closing date (the “Boost Mobile Acquisition”). Effective July 1, 2020 (the “Closing Date”), upon the terms and subject to the conditions set forth in the APA, DISH Network and T-Mobile completed the Boost Mobile Acquisition. In connection with the Boost Mobile Acquisition, DISH Network and T-Mobile entered into a transition services agreement under which DISH Network will receive certain transitional services (the “TSA”), a master network services agreement for the provision of network services by T-Mobile to DISH Network (the “MNSA”), an option agreement entitling DISH Network to acquire certain decommissioned cell sites and retail stores of T-Mobile (the “Option Agreement”) and an agreement under which DISH Network would purchase all of Sprint’s 800 MHz spectrum licenses, totaling approximately 13.5 MHz of nationwide wireless spectrum for an additional approximately $3.59 billion (the “Spectrum Purchase Agreement” and together with the APA, the TSA, the MNSA and the Option Agreement, the “Transaction Agreements”). See Note 5 “ Acquisitions – Boost Mobile Acquisition In connection with the development of DISH Network’s wireless business, including, without limitation, the efforts described above, we have made cash distributions to partially finance these efforts to date and may make additional cash distributions to finance, in whole or in part, DISH Network’s future efforts. There can be no assurance that DISH Network will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably deploy the assets represented by these wireless spectrum licenses. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses During 2015, through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network initially made over $10 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“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. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. 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 DISH Network, 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 payments related to the re-auction of AWS-3 licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out, integration efforts, regulatory compliance, and potential re-auction payments, any such loans, equity contributions or partnerships could vary significantly. For further information regarding the potential re-auction of AWS-3 licenses retained by the FCC, see Note 11 “ Commitments and Contingencies – Commitments – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” We have made and may make additional cash distributions to DISH Network so that DISH Network may fund the Northstar Entities and the SNR Entities related to DISH Network’s non-controlling investments in these entities. There can be no assurance that DISH Network will be able to obtain a profitable return on its non-controlling investments in the Northstar Entities and the SNR Entities. We may need to raise significant additional capital in the future, which may not be available on acceptable terms or at all, to among other things, continue investing in our business and to pursue acquisitions and other strategic transactions. See Note 11 “Commitments and Contingencies – Commitments” Contingencies Separation Agreement On January 1, 2008, DISH Network completed the distribution of its technology and set-top box business and certain infrastructure assets (the “Spin-off”) into a separate publicly-traded company, EchoStar. In connection with the Spin-off, DISH Network entered into a separation agreement with EchoStar that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, EchoStar has assumed certain liabilities that relate to its business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar will only be liable for its acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off, as well as DISH Network’s acts or omissions following the Spin-off. On February 28, 2017, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Share Exchange Agreement (the “Share Exchange Agreement”) that was previously entered into on January 31, 2017 (the “Share Exchange”), pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to DISH Network. On September 10, 2019, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Master Transaction Agreement (the “Master Transaction Agreement”) that was previously entered into on May 19, 2019, pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to DISH Network. The Share Exchange Agreement and the Master Transaction Agreement contain additional indemnification provisions between DISH Network and EchoStar for certain liabilities and legal proceedings. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period. American Patents On November 23, 2020, American Patents LLC, filed a complaint against DISH Network and our wholly-owned subsidiaries DISH Network L.L.C. and Dish Network Service L.L.C., and a third party, Arcadyan Technology Corporation in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of United States Patent No. 7,088,782 (the “782 patent”), entitled “Time and Frequency Synchronization In Multi-Input and Multi-Output (MIMO) Systems”; United States Patent No. 7,310,304 (the “304 patent”), entitled “Estimating Channel Parameters in Multi-Input, Multi-Output (MIMO) Systems”; United States Patent No. 7,706,458 (the “458 patent”), entitled “Time And Frequency Synchronization in Multi-Input, Multi-Output (MIMO) Systems”; and United States Patent No. 6,847,803 (the “803 patent”), entitled “Method for Reducing Interference in a Receiver.” The four patents are asserted against wireless 802.11 standard-compliant devices. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The plaintiff is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. Broadband iTV On December 19, 2019, Broadband iTV, Inc. filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 10,028,026 (the “026 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 10,506,269 (the “269 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 9,998,791 (“the 791 patent”), entitled “Video-on-demand content delivery method for providing video-on-demand services to TV service subscribers”; and United States Patent No. 9,648,388 (the “388 patent”), entitled “Video-on-demand content delivery system for providing video-on-demand services to TV services subscribers.” Generally, the asserted patents relate to providing video on demand content to subscribers. On July 10, 2020, July 20, 2020, July 24, 2020 and July 31, 2020, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of, respectively, the 026 patent, the 791 patent, the 269 patent and the 388 patent. . We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust On July 2, 2019, a putative class action lawsuit was filed by a purported EchoStar stockholder in the District Court of Clark County, Nevada under the caption City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Ergen, et al., Case No. A-19-797799-B. The lawsuit named as defendants Mr. Ergen, the other members of the EchoStar Board, as well as EchoStar, certain of its officers, DISH Network and certain of DISH Network’s and EchoStar’s affiliates. Plaintiff alleges, among other things, breach of fiduciary duties in approving the transactions contemplated under the Master Transaction Agreement for inadequate consideration and pursuant to an unfair and conflicted process, and that EchoStar, DISH Network and certain other defendants aided and abetted such breaches. In the operative First Amended Complaint, filed on October 11, 2019, the plaintiff dropped as defendants the EchoStar board members other than Mr. Ergen. The trial of this matter is scheduled to start sometime during the five-week “stack” beginning September 7, 2021. Related Party Transactions Q for the quarter ended March 31, 2021 for further information on the Master Transaction Agreement. Plaintiff seeks equitable relief, including the issuance of additional DISH Network Class A common stock, monetary relief and other costs and disbursements, including attorneys’ fees. DISH Network intends to vigorously defend this case, but cannot predict with any degree of certainty the outcome of this suit or determine the extent of any potential liability or damages. ClearPlay, Inc. On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against DISH Network, our wholly-owned subsidiary DISH Network L.L.C., EchoStar, and its then wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Utah. The complaint alleges willful infringement of United States Patent Nos. 6,898,799 (the “799 patent”), entitled “Multimedia Content Navigation and Playback”; 7,526,784 (the “784 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318 (the “318 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970 (the “970 patent”), entitled “Multimedia Content Navigation and Playback”; and 8,117,282 (the “282 patent”), entitled “Media Player Configured to Receive Playback Filters From Alternative Storage Mediums.” ClearPlay alleges that the AutoHop ™ feature of our Hopper set-top box infringes the asserted patents. On February 11, 2015, the case was stayed pending various third-party challenges before the United States Patent and Trademark Office regarding the validity of certain of the patents asserted in the action. In those third-party challenges, the United States Patent and Trademark Office found that all claims of the 282 patent are unpatentable, and that certain claims of the 784 patent and 318 patent are unpatentable. ClearPlay appealed as to the 784 patent and the 318 patent, and on August 23, 2016, the United States Court of Appeals for the Federal Circuit affirmed the findings of the United States Patent and Trademark Office. On October 31, 2016, the stay was lifted. On October 16, October 21, November 2, 2020 and November 9, 2020, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office requesting ex parte reexamination of the validity of, respectively, the 784 patent, the 799 patent, the 318 patent and the 970 patent; and on November 2, November 20, December 14 and December 15, 2020, the United States Patent and Trademark Office granted each request for reexamination. , and on April 27, 2021, it issued a Notice of Intent to Issue Ex Parte Reexamination Certificate allowing claim 3 of the 784 patent. The trial date, which had been reset to September 26, 2021, has been vacated while the District Court weighs a fully briefed motion to stay the case pending resolution of the ex parte reexamination proceedings. ClearPlay’s damages expert contends that ClearPlay is entitled to We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Contemporary Display LLC On June 4, 2018, Contemporary Display LLC (“Contemporary”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of 6,028,643 (the “643 patent”), entitled “Multiple-Screen Video Adapter with Television Tuner”; United States Patent No. 6,429,903 (the “903 patent”), entitled “Video Adapter for Supporting at Least One Television Monitor”; United States Patent No. 6,492,997 (the “997 patent”), entitled “Method and System for Providing Selectable Programming in a Multi-Screen Mode”; United States Patent No. 7,500,202 (the “202 patent”), entitled “Remote Control for Navigating Through Content in an Organized and Categorized Fashion”; and United States Patent No. 7,809,842 (the “842 patent”), entitled “Transferring Sessions Between Devices.” The 643 patent and the 903 patent are directed to video adapters for use with multiple displays. The 997 patent is directed to a system for presenting multiple video programs on a display device simultaneously. The 202 patent is directed to a remote control for interacting with a set-top box having programmable features and “operational controls” on at least three sides of the remote control. The 842 patent is directed to a system for managing online communication sessions between multiple devices. Contemporary is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. In a First Amended Complaint filed on August 6, 2018, Contemporary added our wholly-owned subsidiary DISH Network L.L.C. as a defendant. In a Second Amended Complaint filed on October 9, 2018, Contemporary named only our wholly-owned subsidiary DISH Network L.L.C. as a defendant and dropped certain indirect infringement allegations. On June 10, 2019, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 842 patent, the 903 patent, the 643 patent and the 997 patent. On December 13, 2019 and January 7, 2020, the United States Patent and Trademark Office agreed to institute proceedings on each of our petitions. Following Contemporary’s decision not to file Patent Owner Responses to DISH Network L.L.C.’s petitions on the 842 patent and the 903 patent, on April 24, 2020, the United States Patent and Trademark Office entered judgments granting those petitions and canceling the challenged claims of those patents. On November 25, 2020 and December 18, 2020, respectively, the United States Patent and Trademark Office issued final written decisions invalidating all challenged claims of, respectively, the 643 patent and the 997 patent. On February 12, 2021, Contemporary Display noticed an appeal to the United States Court of Appeals for the Federal Circuit challenging the final written decision as to the 997 patent. On July 11, 2019, the Court entered an order staying the case pending resolution of the petitions. On January 31, 2020, pursuant to the parties’ joint motion, the Court dismissed all claims arising from the 202 patent, and extended its stay of the litigation pending non-appealable determinations on all of the petitions before the United States Patent and Trademark Office. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Customedia Technologies, L.L.C. On February 10, 2016, Customedia Technologies, L.L.C. (“Customedia”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of four patents: United States Patent No. 8,719,090 (the “090 patent”); United States Patent No. 9,053,494 (the “494 patent”); United States Patent No. 7,840,437 (the “437 patent”); and United States Patent No. 8,955,029 (the “029 patent”). Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia alleges infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. Customedia is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. In December 2016 and January 2017, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of each of the asserted patents. On June 12, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petitions challenging the 090 patent and the 437 patent; on July 18, 2017, it agreed to institute proceedings on our petitions challenging the 029 patent; and on July 28, 2017, it agreed to institute proceedings on our petitions challenging the 494 patent. These instituted proceedings cover all asserted claims of each of the asserted patents. The litigation in the District Court has been stayed since August 8, 2017 pending resolution of the proceedings at the United States Patent and Trademark Office. Pursuant to an agreement between the parties, on December 20, 2017, DISH Network L.L.C. dismissed its petitions challenging the 029 patent in the United States Patent and Trademark Office, and on January 9, 2018, the parties dismissed their claims, counterclaims and defenses as to that patent in the litigation. On March 5, 2018, the United States Patent and Trademark Office conducted a trial on the remaining petitions. On June 11, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 090 patent and it invalidated all of the asserted claims. On July 25, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 437 patent and the 494 patent and it invalidated all of the asserted claims. Customedia appealed its losses before the United States Patent and Trademark Office. The Court of Appeals for the Federal Circuit heard oral argument on November 6, 2019 on the appeal involving the 437 patent, and summarily affirmed the patent’s invalidity on November 8, 2019. On January 7, 2020, Customedia petitioned the Court of Appeals for rehearing or rehearing en banc, raising issues about the constitutionality of the appointment of the administrative patent judges that heard the petition before the Patent and Trademark Office, but the Court of Appeals denied rehearing on March 5, 2020. On July 31, 2020, Customedia filed a petition with the United States Supreme Court asking it to hear a further appeal, but its petition was denied on October 13, 2020. The Court of Appeals heard oral argument on the appeal involving the 090 patent and the 494 patent on December 3, 2019, and affirmed those patents’ invalidity on March 6, 2020. On May 5, 2020, Customedia filed petitions in the Federal Circuit for rehearing and rehearing en banc, seeking to reverse our appellate victories on the 090 and 494 patents, but those petitions were denied on June 9, 2020. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Innovative Foundry Technologies LLC On December 20, 2019, Innovative Foundry Technologies LLC filed a complaint against DISH Network (as well as Semiconductor Manufacturing International Corporation; Broadcom Incorporated; Broadcom Corporation; and Cypress Semiconductor Corporation) in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 6,580,122 (the “122 patent”), entitled “Transistor Device Having an Enhanced Width Dimension and a Method of Making Same”; United States Patent No. 6,806,126 (the “126 patent”), entitled “Method of Manufacturing a Semiconductor Component”; United States Patent No. 6,933,620 (the “620 patent”), entitled “Semiconductor Component and Method of Manufacture”; and United States Patent No. 7,009,226 (the “226 patent”), entitled “In-Situ Nitride/Oxynitride Processing with Reduced Deposition Surface Pattern Sensitivity.” 9, 2020, Semiconductor Manufacturing International Corporation filed a petition with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 226 patent, and on April 14, 2020, it filed petitions challenging the validity of the asserted claims of the 126 patent and 620 patent. On December 30, 2020, the Court entered an order severing and staying the claims against us and certain other defendants not involved in the manufacturing of the accused chips. On April 22, 2021, the parties filed a stipulation of dismissal with prejudice of all claims against us. This matter is now concluded. Optic153 On January 29, 2021, Optic153 LLC filed a complaint in the United States District Court for the Western District of Texas against DISH Network and our wholly-owned subsidiaries DISH Network L.L.C and Dish Network Service L.L.C. The complaint alleges infringement of U.S. Patent No. 6,115,174 (the “174 patent”), entitled “Optical Signal Varying Devices”; U.S. Patent No. 6,236,487 (the “487 patent”), entitled “Optical Communication Control System”; U.S. Patent No. 6,344,922 (the “922 patent”), entitled “Optical Signal Varying Devices”; U.S. Patent No. 6,356,383 (the “383 patent”), entitled “Optical Transmission Systems Including Optical Amplifiers Apparatuses and Methods”; U.S. Patent No. 6,587,261 (the “261 patent”), entitled “Optical Transmission Systems Including Optical Amplifiers Apparatuses and Methods of Use Therein”; and U.S. Patent No. 6,771,413 (the “413 patent”), entitled “Optical Transmission Systems Including Optical Amplifiers, Apparatuses and Methods.” In general, the patents relate to various aspects of the provisioning of fiber optics communications. On April 26, 2021, Optic153 filed a request for dismissal of its claims against DISH Network, DISH Network L.L.C. and Dish Network Service L.L.C. This matter is now concluded. Realtime Data LLC and Realtime Adaptive Streaming LLC On June 6, 2017, Realtime Data LLC d/b/a IXO (“Realtime”) filed an amended complaint in the United States District Court for the Eastern District of Texas (the “Original Texas Action”) against DISH Network; our wholly-owned subsidiaries DISH Network L.L.C., DISH Technologies L.L.C. (then known as EchoStar Technologies L.L.C.), Sling TV L.L.C. and Sling Media L.L.C.; EchoStar, and EchoStar’s wholly-owned subsidiary Hughes Network Systems, L.L.C. (“HNS”); and Arris Group, Inc. Realtime’s initial complaint in the Original Texas Action, filed on February 14, 2017, had named only EchoStar and HNS as defendants. The amended complaint in the Original Texas Action alleges infringement of United States Patent No. 8,717,204 (the “204 patent”), entitled “Methods for encoding and decoding data”; United States Patent No. 9,054,728 (the “728 patent”), entitled “Data compression systems and methods”; United States Patent No. 7,358,867 (the “867 patent”), entitled “Content independent data compression method and system”; United States Patent No. 8,502,707 (the “707 patent”), entitled “Data compression systems and methods”; United States Patent No. 8,275,897 (the “897 patent”), entitled “System and methods for accelerated data storage and retrieval”; United States Patent No. 8,867,610 (the “610 patent”), entitled “System and methods for video and audio data distribution”; United States Patent No. 8,934,535 (the “535 patent”), entitled “Systems and methods for video and audio data storage and distribution”; and United States Patent No. 8,553,759 (the “759 patent”), entitled “Bandwidth sensitive data compression and decompression.” Realtime alleges that DISH Network, SLING TV, Sling Media and Arris streaming video products and services compliant with various versions of the H.264 video compression standard infringe the 897 patent, the 610 patent and the 535 patent, and that the data compression system in Hughes’ products and services infringe the 204 patent, the 728 patent, the 867 patent, the 707 patent and the 759 patent. On July 19, 2017, the Court severed Realtime’s claims against DISH Network, DISH Network L.L.C., Sling TV L.L.C., Sling Media L.L.C. and Arris Group, Inc. (alleging infringement of the 897 patent, the 610 patent and the 535 patent) from the Original Texas Action into a separate action in the United States District Court for the Eastern District of Texas (the “Second Texas Action”). On August 31, 2017, Realtime dismissed the claims against DISH Network, Sling TV L.L.C., Sling Media Inc., and Sling Media L.L.C. from the Second Texas Action and refiled these claims (alleging infringement of the 897 patent, the 610 patent and the 535 patent) against Sling TV L.L.C., Sling Media Inc., and Sling Media L.L.C. in a new action in the United States District Court for the District of Colorado (the “Colorado Action”). Also on August 31, 2017, Realtime dismissed DISH Technologies L.L.C. from the Original Texas Action, and on September 12, 2017, added it as a defendant in an amended complaint in the Second Texas Action. On November 6, 2017, Realtime filed a joint motion to dismiss the Second Texas Action without prejudice, which the Court entered on November 8, 2017. On October 10, 2017, Realtime Adaptive Streaming LLC (“Realtime Adaptive Streaming”) filed suit against our wholly-owned subsidiaries DISH Network L.L.C. and DISH Technologies L.L.C., as well as Arris Group, Inc., in a new action in the United States District Court for the Eastern District of Texas (the “Third Texas Action”), alleging infringement of the 610 patent and the 535 patent. Also on October 10, 2017, an amended complaint was filed in the Colorado Action, substituting Realtime Adaptive Streaming as the plaintiff instead of Realtime, and alleging infringement of only the 610 patent and the 535 patent, but not the 897 patent. On November 6, 2017, Realtime Adaptive Streaming filed |
Financial Information for Subsi
Financial Information for Subsidiary Guarantors | 3 Months Ended |
Mar. 31, 2021 | |
Financial Information for Subsidiary Guarantors | |
Financial Information for Subsidiary Guarantors | 10. Financial Information for Subsidiary Guarantors The assets, liabilities and results of operations of the combined issuers and guarantors of the guaranteed security are not materially different than corresponding amounts presented in the condensed consolidated financial statements of the parent company. Therefore, summarized financial information on a condensed consolidating basis of the guarantor subsidiaries is not required. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the guarantor subsidiaries, except those imposed by applicable law. |
Disaggregation of Revenue
Disaggregation of Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Disaggregation of Revenue | |
Disaggregation of Revenue | 11. Disaggregation of Revenue 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 March 31, Revenue: 2021 2020 (In thousands) United States $ 3,155,617 $ 3,157,304 Canada and Mexico 7,302 10,478 Total revenue $ 3,162,919 $ 3,167,782 The revenue from external customers disaggregated by major revenue source was as follows: For the Three Months Ended March 31, Category: 2021 2020 (In thousands) Pay-TV subscriber and related revenue $ 3,137,387 $ 3,130,900 Equipment sales and other revenue 25,532 36,882 Total $ 3,162,919 $ 3,167,782 |
Contract Balances
Contract Balances | 3 Months Ended |
Mar. 31, 2021 | |
Contract Balances | |
Contract Balances | 12. Contract Balances Our valuation and qualifying accounts as of March 31, 2021 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 three months ended March 31, 2021 $ 43,233 $ 8,682 $ (17,622) $ 34,293 Deferred revenue related to contracts with our customers is recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets. Changes in deferred revenue related to contracts with our customers were as follows: Contract Liabilities (In thousands) Balance as of December 31, 2020 $ 593,797 Recognition of unearned revenue (1,401,337) Deferral of revenue 1,415,412 Balance as of March 31, 2021 $ 607,872 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 | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions | |
Related Party Transactions | 13. Related Party Transactions Spin-off from EchoStar Following the Spin-off, DISH Network 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. Related Party Transactions with EchoStar 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 DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. In connection with the Share Exchange and the Master Transaction Agreement, DISH Network and EchoStar and certain of their respective 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 March 31, 2021 and December 31, 2020, 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 March 31, 2021 and December 31, 2020, trade accounts payable to EchoStar was $3 million and $1 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 March 31, 2021 and 2020, we received $1 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. DISH Network has entered into lease agreements pursuant to which DISH Network leases 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, DISH Network 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 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 August 2021. ● 90 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 90 Inverness Circle East, Englewood, Colorado for a period ending in February 2022. EchoStar has the option to renew this lease for four three-year periods. ● Cheyenne Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar began leasing certain space from us at 530 EchoStar Drive, Cheyenne, Wyoming for a period ending in February 2019. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for 12 one-year periods. In connection with the Master Transaction Agreement, DISH Network and EchoStar amended this lease to provide EchoStar with certain space for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon 180 days ’ written notice prior to the end of the term. Collocation and Antenna Space Agreements . In connection with the completion of the Share Exchange, effective March 1, 2017, we entered into certain agreements pursuant to which we provide certain collocation and antenna space to HNS through February 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Englewood, Colorado; and Spokane, Washington. During August 2017, we entered into certain other agreements pursuant to which we provide certain collocation and antenna space to HNS through August 2022 at the following locations: Monee, Illinois and Spokane, Washington. HNS has the option to renew each of these agreements for four three-year periods. HNS may terminate certain of these agreements with 180 days ’ prior written notice to us at the following locations: New Braunfels, Texas; Englewood, Colorado; and Spokane, Washington. In September 2019, in connection with the Master Transaction Agreement, we entered into an agreement pursuant to which we provide HNS with certain additional collocation space in Cheyenne, Wyoming, which expired in September 2020. In October 2019, HNS provided a termination notice for its New Braunfels, Texas agreement effective as of May 2020. The fees for the services provided under these agreements depend, among other things, on the number of racks leased and/or antennas present at the location. Also in connection with the Master Transaction Agreement, in September 2019, we entered into an agreement pursuant to which we provide HNS with antenna space and power in Cheyenne, Wyoming for a period of five years commencing no later than October 2020, with four three-year renewal terms, with prior written notice no more than 120 days but no less than 90 days prior to the end of the then-current term. “Cost of services” During each of the three months ended , 2021 and 2020, we incurred $1 million of costs for services provided to us by EchoStar. The agreements pertaining to these expenses are discussed below. 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. “Selling, general and administrative expenses” During the three months ended March 31, 2021 and 2020, we incurred $3 million and $4 million, respectively, for selling, general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. We have entered into lease agreements pursuant to which we lease certain real estate from EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic area, and we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado was for a period ending on December 31, 2019. In December 2020, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2021. ● 100 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, we lease certain space from EchoStar at 100 Inverness Terrace East, Englewood, Colorado for a period ending in December 2021. This agreement may be terminated by either party upon 180 days ’ prior notice. Professional Services Agreement . Prior to 2010, in connection with the Spin-off, DISH Network 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, DISH Network and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from DISH Network, 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, DISH Network and EchoStar agreed that DISH Network shall continue to have the right, but not the obligation, to engage EchoStar to manage the process of procuring new satellite capacity for DISH Network (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, DISH Network 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. The Professional Services Agreement renewed on January 1, 2021 for an additional one-year period until January 1, 2022 and renews automatically for successive one-year periods thereafter, unless terminated earlier by either party upon at least 60 days ’ notice. However, either party may terminate the Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days ’ notice. Revenue for services provided by us to EchoStar under the Professional Services Agreement is recorded in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Other Agreements - EchoStar Tax Sharing Agreement. In connection with the Spin-off, DISH Network 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 DISH Network, and DISH Network will indemnify EchoStar for such taxes. However, DISH Network is 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 DISH Network 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. Tax Matters Agreement . In connection with the completion of the Share Exchange, DISH Network and EchoStar entered into a Tax Matters Agreement, which governs certain rights, responsibilities and obligations with respect to taxes of the Transferred Businesses pursuant to the Share Exchange. Generally, EchoStar is responsible for all tax returns and tax liabilities for the Transferred Businesses for periods prior to the Share Exchange, and DISH Network are responsible for all tax returns and tax liabilities for the Transferred Businesses from and after the Share Exchange. Both DISH Network and EchoStar have made certain tax-related representations and are subject to various tax-related covenants after the consummation of the Share Exchange. Both DISH Network and EchoStar have agreed to indemnify each other if there is a breach of any such tax representation or violation of any such tax covenant and that breach or violation results in the Share Exchange not qualifying for tax free treatment for the other party. In addition, DISH Network has agreed to indemnify EchoStar if the Transferred Businesses are acquired, either directly or indirectly (e.g., via an acquisition of DISH Network), 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. Patent Cross-License Agreements . In December 2011, DISH Network 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) DISH Network and such third-party licensed their 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 total less than million. In December 2016, DISH Network and EchoStar independently exercised their respective options to extend each Cross-License Agreement to include patents acquired by the respective party prior to January 1, 2022. Rovi License Agreement. On August 19, 2016, we entered into a ten-year patent license agreement (the “Rovi License Agreement”) with Rovi Corporation (“Rovi”) and, for certain limited purposes, EchoStar. EchoStar is a party to the Rovi License Agreement solely with respect to certain provisions relating to the prior patent license agreement between EchoStar and Rovi. There are no payments between us and EchoStar under the Rovi License Agreement. Hughes Broadband Master Services Agreement. In March 2017, DISH Network L.L.C. (“DNLLC”) and HNS entered into a master service agreement (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 and related equipment; and (ii) installs Hughes service equipment with respect to activations generated by DNLLC. Under the MSA, HNS will make certain payments to DNLLC for each Hughes service activation generated, and installation performed, by DNLLC. Payments from HNS for services provided are recorded in “Service revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). For the three months ended March 31 , 2021 and 2020, these payments were $2 million and $4 million, respectively. The MSA has an initial term of five years with automatic renewal for successive one year terms. After the first anniversary of the MSA, either party has the ability to terminate the MSA, in whole or in part, for any reason upon at least 90 days ’ notice to the other party. Upon expiration or termination of the MSA, HNS will continue to provide the Hughes service to subscribers and make certain payments to DNLLC pursuant to the terms and conditions of the MSA. For the three months ended March 31, 2021 and 2020, we purchased broadband equipment from HNS of $1 million and $4 million, respectively, under the MSA. Employee Matters Agreement – Share Exchange . In connection with the completion of the Share Exchange, effective March 1, 2017, DISH Network and EchoStar entered into an Employee Matters Agreement that addresses the transfer of employees from EchoStar to DISH Network, including certain benefit and compensation matters and the allocation of responsibility for employee-related liabilities relating to current and past employees of the Transferred Businesses. DISH Network assumed employee-related liabilities relating to the Transferred Businesses as part of the Share Exchange, except that EchoStar will be responsible for certain existing employee-related litigation as well as certain pre-Share Exchange compensation and benefits for employees transferring to DISH Network in connection with the Share Exchange. Intellectual Property and Technology License Agreement In addition, DISH Network granted a license back to EchoStar, among other things, for the continued use of all intellectual property and technology transferred to DISH Network pursuant to the Share Exchange Agreement that is used in EchoStar’s retained businesses. Related Party Transactions with DISH Network As a result of the Master Transaction Agreement in September 2019, certain agreements that we had with EchoStar were transferred to DISH Network. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. “Cost of services” During each of the three months ended March 31, 2021 and 2020, we incurred expenses of $56 million for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. As a result of the Master Transaction Agreement, DISH Network is now a supplier of the vast majority of our transponder capacity. 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. Satellite Capacity Leased from DISH Network . On September 10, 2019, in connection with the Master Transaction Agreement DISH Network entered into with EchoStar on May 19, 2019, we began leasing satellite capacity on satellites owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: ● EchoStar X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. Pursuant to the Master Transaction Agreement, on September 10, 2019, the satellite capacity agreement we previously had with EchoStar for EchoStar X, XI and XIV was transferred to DISH Network and we began leasing satellite capacity on these satellites from a wholly-owned subsidiary of DISH Network as of the same date. ● EchoStar XVI. In December 2009, we entered into a transponder service agreement with EchoStar to lease all of the capacity on EchoStar XVI, a DBS satellite, after its service commencement date. EchoStar XVI was launched in November 2012 to replace EchoStar XV at the 61.5 degree orbital location and is currently in service. Effective December 21, 2012, we and EchoStar amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and EchoStar amended the transponder service agreement to, among other things, extend the initial term by one additional year and to reduce the term of the first renewal option by one year . Prior to expiration of the initial term, we had the option to renew for an additional five-year period. In May 2017, we exercised our first renewal option for an additional five-year period ending in January 2023. We also have the option to renew for an additional five-year period prior to expiration of the first renewal period in January 2023. There can be no assurance that the option to renew this agreement will be exercised. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place and use certain satellites at the 61.5 degree orbital location. Pursuant to the Master Transaction Agreement, on September 10, 2019, the transponder service agreement we previously had with EchoStar for EchoStar XVI was transferred to DISH Network and we began receiving transponder services from a wholly-owned subsidiary of DISH Network as of the same date. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term, which expired ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we had the option to renew on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Pursuant to the Master Transaction Agreement, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began receiving transponder services on the Nimiq 5 satellite from a wholly-owned subsidiary of DISH Network as of the same date. We have exercised our option to renew for a one-year period through September 2021. As discussed in Note 6, “Property and Equipment,” the Nimiq 5 satellite lease has been accounted for as a finance lease since September 2019. Accordingly, expenses related to this lease are no longer recorded in “Cost of services,” but rather in “Depreciation and amortization” and “Interest expense, net of amounts capitalized” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). During each of the three months ended March 31, 2021 and 2020, we recorded $9 million of “Depreciation and amortization expense” and $3 million and $4 million of “Interest expense, net of amounts capitalized,”respectively, related to Nimiq 5. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provided, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite (“SES Transponder Agreement”) . During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we received service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the SES Transponder Agreement and QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the SES Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. There can be no assurance that any options to renew the SES Transponder Agreement will be exercised. Pursuant to the Master Transaction Agreement, on September 10, 2019, the SES Transponder Agreement was transferred to DISH Network and we began receiving transponder services on QuetzSat-1 from a wholly-owned subsidiary of DISH Network as of the same date. Our lease arrangement with DISH Network expires in November 2021. EchoStar XVIII Satellite. The EchoStar XVIII satellite was launched on June 18, 2016 and became operational as an in-orbit spare at the 61.5 degree orbital location during the third quarter 2016, at which time we began leasing it from a wholly-owned subsidiary of DISH Network. On May 14, 2019, we and DOLLC II entered into an agreement to sell our interests in the LMDS and MVDDS licenses in exchange for the EchoStar XVIII satellite. See Note 6 for further information. TT&C Agreement. Effective January 1, 2012, we entered into a TT&C agreement pursuant to which we receive TT&C services from EchoStar for certain satellites (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. The fees for services provided under the 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. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network. We began receiving TT&C services from a wholly-owned subsidiary of DISH Network as of the same date. “Selling, general and administrative expenses” During each of the three months ended March 31, 2021 and 2020, we incurred $2 million for selling, general and administrative expenses for services provided to us by DISH Network. 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. On September 10, 2019, in connection with the Master Transaction Agreement, we began leasing office space owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. The term of each lease is set forth below: ● Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado originally from EchoStar to us was for a period ending on December 31, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, on September 10, 2019, this lease was transferred to DISH Network and we began leasing all of 5701 S. Santa Fe Dr. in Littleton, Colorado from a wholly-owned subsidiary of DISH Network as of the same date. In December 2020, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2021. ● Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. In connection with the completion of the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network, and, effective March 1, 2017, DISH Network and EchoStar amended this lease agreement to (i) terminate the lease of certain space at the portion of the property that was transferred to us and (ii) provide for the continued lease to us of certain space at the portion of the property that EchoStar retained. Pursuant to the Master Transaction Agreement, the portion of the property EchoStar retained was transferred to DISH Network, and on September 10, 2019, this lease was transferred to DISH Network and we began leasing certain space from a wholly-owned subsidiary of DISH Network as of the same date. Other Agreements – DISH Network Broadband, Wireless and Other Operations. We provide certain administrative, call center, installation, marketing and other services to DISH Network’s broadband, wireless and other operations. During the three months ended March 31, 2021 and 2020, the costs associated with these services was 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 March 31, 2021 2020 (In thousands) Purchases (including fees): Purchases from NagraStar $ 11,770 $ 14,092 As of March 31, December 31, 2021 2020 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 7,893 $ 9,038 Commitments to NagraStar $ 4,171 $ 3,260 Related Party Transactions with Dish Mexico Dish Mexico, S. de R.L. de C.V. (“Dish Mexico”) is an entity that provides direct-to-home satellite services in Mexico, which is owned 49% by EchoStar. We provide certain broadcast services and certain satellite services to Dish Mexico, which are recorded in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The table below summarizes our transactions with Dish Mexico: For the Three Months Ended March 31, 2021 2020 (In thousands) Sales: Uplink services $ 1,295 $ 1,381 Total $ 1,295 $ 1,381 As of March 31, December 31, 2021 2020 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 2,942 $ 3,343 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Principles of Consolidation | Principles of Consolidation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. 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. |
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, 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, relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. |
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 March 31, 2021 and December 31, 2020, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. 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 8 for the fair value of our long-term debt. |
Revenue Recognition | 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, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the three months ended March 31, 2021 and 2020, we capitalized million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 and December 31, 2020, we had a total of million, respectively, capitalized on our Condensed Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). |
Advertising Costs | Advertising Costs We recognize advertising expense when incurred as a component of selling, general and administrative expense. Advertising expenses totaled |
Research and Development | Research and Development Research and development costs are expensed as incurred and are included in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Research and development costs totaled |
Supplemental Data - Statement_2
Supplemental Data - Statements of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Data - Statements of Cash Flows | |
Schedule of supplemental cash flow and other non-cash data | For the Three Months Ended March 31, 2021 2020 (In thousands) Cash paid for interest $ 211,139 $ 174,647 Cash received for interest 806 850 Cash paid for income taxes 404 130 Cash paid for income taxes to DISH Network 146,386 90,617 |
Marketable Investment Securit_2
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |
Schedule of marketable investment securities, restricted cash and cash equivalents, and other investment securities | As of March 31, December 31, 2021 2020 (In thousands) Marketable investment securities: Current marketable investment securities $ 48,995 $ 132,593 Restricted marketable investment securities (1) — — Total marketable investment securities 48,995 132,593 Restricted cash and cash equivalents (1) 58,255 58,323 Other investment securities: Other investment securities 98,050 97,306 Total other investment securities 98,050 97,306 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 205,300 $ 288,222 (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 investments measured at fair value on a recurring basis | As of March 31, 2021 December 31, 2020 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 1,653,660 $ 60,153 $ 1,593,507 $ — $ 1,278,971 $ 172,025 $ 1,106,946 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ — $ — $ — $ — $ 22,476 $ 22,476 $ — $ — Commercial paper 47,590 — 47,590 — 101,959 — 101,959 — Corporate securities 877 — 877 — 8,068 — 8,068 — Other 528 — 528 — 90 — 90 — Total $ 48,995 $ — $ 48,995 $ — $ 132,593 $ 22,476 $ 110,117 $ — |
Gains and Losses on Sales and Changes in Carrying Amounts of Investments | For the Three Months Ended March 31, Other, net: 2021 2020 (In thousands) Costs related to early redemption of debt $ (2,600) $ — Equity in earnings (losses) of affiliates 903 278 Other 189 667 Total $ (1,508) $ 945 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory | |
Schedule of inventory | As of March 31, December 31, 2021 2020 (In thousands) Finished goods $ 217,399 $ 226,866 Work-in-process and service repairs 22,468 25,206 Raw materials 8,681 10,225 Total inventory $ 248,548 $ 262,297 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property and Equipment | |
Schedule of property and equipment | Depreciable As of Life March 31, December 31, (In Years) 2021 2020 (In thousands) Equipment leased to customers 2 - 5 $ 1,672,399 $ 1,719,778 EchoStar XV 15 277,658 277,658 EchoStar XVIII 15 411,255 411,255 Satellites acquired under finance lease agreements 15 398,107 398,107 Furniture, fixtures, equipment and other 2 - 20 1,989,431 1,969,107 Buildings and improvements 5 - 40 300,246 301,037 Land - 13,186 13,186 Construction in progress - 42,579 51,800 Total property and equipment 5,104,861 5,141,928 Accumulated depreciation (3,610,842) (3,577,224) Property and equipment, net $ 1,494,019 $ 1,564,704 |
Schedule of depreciation and amortization expense | For the Three Months Ended March 31, 2021 2020 (In thousands) Equipment leased to customers $ 64,262 $ 79,682 Satellites 23,797 23,797 Buildings, furniture, fixtures, equipment and other 27,183 31,606 Total depreciation and amortization $ 115,242 $ 135,085 |
Schedule of pay-TV satellite fleet | Degree Launch Orbital Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 N/A EchoStar XVIII June 2016 61.5 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from DISH Network (2): EchoStar X February 2006 110 February 2022 EchoStar XI July 2008 110 September 2021 EchoStar XIV March 2010 119 February 2023 EchoStar XVI November 2012 61.5 January 2023 Nimiq 5 September 2009 72.7 September 2021 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2022 (1) See Note 13 for further information on our Related Party Transactions with EchoStar. (2) See Note 13 for further information on our Related Party Transactions with DISH Network. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases | |
Summary of the components of lease expense | For the Three Months Ended March 31, 2021 2020 (In thousands) Operating lease cost $ 60,023 $ 61,715 Short-term lease cost (1) 4,236 2,667 Finance lease cost: Amortization of right-of-use assets 12,374 12,448 Interest on lease liabilities 3,716 4,798 Total finance lease cost 16,090 17,246 Total lease costs $ 80,349 $ 81,628 (1) Leases that have terms of 12 months or less . |
Summary of Supplemental cash flow information related to leases | For the Three Months Ended March 31, 2021 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 59,178 $ 61,808 Operating cash flows from finance leases $ 3,652 $ 4,798 Financing cash flows from finance leases $ 12,580 $ 11,466 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,417 $ 6,749 Finance leases $ — $ — |
Summary of supplemental balance sheet information related to leases | As of March 31, December 31, 2021 2020 (In thousands) Operating Leases: Operating lease assets $ 335,609 $ 380,968 Other current liabilities $ 169,566 $ 186,967 Operating lease liabilities 165,514 192,624 Total operating lease liabilities $ 335,080 $ 379,591 Finance Leases: Property and equipment, gross $ 398,875 $ 398,875 Accumulated depreciation (263,447) (251,073) Property and equipment, net $ 135,428 $ 147,802 Other current liabilities $ 50,260 $ 49,820 Other long-term liabilities 97,098 110,789 Total finance lease liabilities $ 147,358 $ 160,609 Weighted Average Remaining Lease Term: Operating leases 2.9 years 2.9 years Finance leases 3.1 years 3.3 years Weighted Average Discount Rate: Operating leases 8.6% 8.7% Finance leases 9.6% 9.6% |
Summary of maturities of operating lease liabilities | Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2021 (remaining nine months) $ 151,848 $ 45,696 $ 197,544 2022 138,299 50,227 188,526 2023 32,083 42,862 74,945 2024 13,436 32,147 45,583 2025 8,379 — 8,379 Thereafter 35,487 — 35,487 Total lease payments 379,532 170,932 550,464 Less: Imputed interest (44,452) (23,574) (68,026) Total 335,080 147,358 482,438 Less: Current portion (169,566) (50,260) (219,826) Long-term portion of lease obligations $ 165,514 $ 97,098 $ 262,612 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Long-Term Debt and Finance Lease Obligations | |
Schedule of carrying and fair values of the entity's debt facilities | As of March 31, 2021 December 31, 2020 Carrying Fair Value Carrying Fair Value (In thousands) 6 3/4% Senior Notes due 2021 (1) 1,794,646 1,811,480 2,000,000 2,047,260 5 7/8% Senior Notes due 2022 2,000,000 2,094,220 2,000,000 2,095,820 5 % Senior Notes due 2023 1,500,000 1,560,705 1,500,000 1,566,300 5 7/8% Senior Notes due 2024 2,000,000 2,101,980 2,000,000 2,099,580 7 3/4% Senior Notes due 2026 2,000,000 2,203,100 2,000,000 2,236,520 7 3/8% Senior Notes due 2028 1,000,000 1,052,940 1,000,000 1,070,130 Other notes payable 23,565 23,565 23,565 23,565 Subtotal 10,318,211 $ 10,847,990 10,523,565 $ 11,139,175 Unamortized deferred financing costs and debt discounts, net (11,310) (12,684) Finance lease obligations (2) 147,358 160,609 Total long-term debt and finance lease obligations (including current portion) $ 10,454,259 $ 10,671,490 (1) During the three months ended March 31, 2021, we repurchased $205 million of our 6 3/4% Senior Notes due 2021 in open market trades. The remaining balance of $1.795 billion matures on June 1, 2021. (2) Disclosure regarding fair value of finance leases is not required. |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Disaggregation of Revenue | |
Revenue by geographic region | For the Three Months Ended March 31, Revenue: 2021 2020 (In thousands) United States $ 3,155,617 $ 3,157,304 Canada and Mexico 7,302 10,478 Total revenue $ 3,162,919 $ 3,167,782 |
Schedule of disaggregation of revenue | For the Three Months Ended March 31, Category: 2021 2020 (In thousands) Pay-TV subscriber and related revenue $ 3,137,387 $ 3,130,900 Equipment sales and other revenue 25,532 36,882 Total $ 3,162,919 $ 3,167,782 |
Contract Balances (Tables)
Contract Balances (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Contract Balances | |
Valuation and Qualifying 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 three months ended March 31, 2021 $ 43,233 $ 8,682 $ (17,622) $ 34,293 |
Schedule of Contract balances | Contract Liabilities (In thousands) Balance as of December 31, 2020 $ 593,797 Recognition of unearned revenue (1,401,337) Deferral of revenue 1,415,412 Balance as of March 31, 2021 $ 607,872 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Schedule of related party transaction | For the Three Months Ended March 31, 2021 2020 (In thousands) Purchases (including fees): Purchases from NagraStar $ 11,770 $ 14,092 As of March 31, December 31, 2021 2020 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 7,893 $ 9,038 Commitments to NagraStar $ 4,171 $ 3,260 |
Dish Mexico | |
Schedule of related party transaction | For the Three Months Ended March 31, 2021 2020 (In thousands) Sales: Uplink services $ 1,295 $ 1,381 Total $ 1,295 $ 1,381 As of March 31, December 31, 2021 2020 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 2,942 $ 3,343 |
Organization and Business Act_2
Organization and Business Activities (Details) customer in Thousands | Mar. 31, 2021customer |
Pay TV Subscribers | |
Organization and Business Activities | |
Number of subscribers | 11,060 |
DISH TV subscribers | |
Organization and Business Activities | |
Number of subscribers | 8,686 |
Sling TV subscribers | |
Organization and Business Activities | |
Number of subscribers | 2,374 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies | |||
Contract cost capitalized during the period | $ 28 | $ 38 | |
Amortization expense related to the programs | 37 | $ 27 | |
Total costs capitalized | $ 331 | $ 339 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Leases (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Leases | |
Renewal options, operating lease | true |
Renewal options, finance lease | true |
Options to terminate, operating lease | true |
Options to terminate, finance lease | true |
Minimum | |
Leases | |
Remaining lease terms, operating lease | 1 year |
Remaining lease terms, finance lease | 1 year |
Maximum | |
Leases | |
Remaining lease terms, operating lease | 11 years |
Remaining lease terms, finance lease | 12 years |
Termination period, operating lease | 1 year |
Termination period, finance lease | 1 year |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Principles of Consolidation and Research and Development (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Advertising Costs | ||
Advertising expenses | $ 83 | $ 131 |
Research and Development | ||
Research and development costs | $ 7 | $ 6 |
Supplemental Data - Statement_3
Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Supplemental Data - Statements of Cash Flows | ||
Cash paid for interest | $ 211,139 | $ 174,647 |
Cash received for interest | 806 | 850 |
Cash paid for income taxes | 404 | 130 |
Cash paid for income taxes to DISH Network | $ 146,386 | $ 90,617 |
Marketable Investment Securit_3
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Feb. 28, 2017 |
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Current marketable investment securities | $ 48,995 | $ 132,593 | |
Total marketable investment securities | 48,995 | 132,593 | |
Restricted cash and cash equivalents | 58,255 | 58,323 | |
Other investment securities | 98,050 | 97,306 | |
Total other investment securities | 98,050 | 97,306 | |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | $ 205,300 | $ 288,222 | |
NagraStar L.L.C | |||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Ownership interest in equity method investment | 50.00% |
Marketable Investment Securit_4
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Narrative (Details) - Maximum | 3 Months Ended |
Mar. 31, 2021 | |
Commercial Paper [Member] | |
Other investment securities: | |
Debt term of Maturity | 365 days |
Corporate securities | |
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 - Unrealized Gains (Losses) On Marketable Investment Securities (Details) $ in Millions | Mar. 31, 2021USD ($) |
Contractual maturities of restricted and non-restricted marketable investment securities | |
Debt securities with contractual maturities within one year | $ 49 |
Marketable Investment Securit_6
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Fair Value Measurements (Details) - Fair value measurements on recurring basis - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair value of marketable securities | ||
Cash equivalents (including restricted) | $ 1,653,660 | $ 1,278,971 |
Total | 48,995 | 132,593 |
U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Debt securities | 22,476 | |
Commercial paper | ||
Fair value of marketable securities | ||
Debt securities | 47,590 | 101,959 |
Corporate securities | ||
Fair value of marketable securities | ||
Debt securities | 877 | 8,068 |
Other | ||
Fair value of marketable securities | ||
Debt securities | 528 | 90 |
Level 1 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 60,153 | 172,025 |
Total | 22,476 | |
Level 1 | U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Debt securities | 22,476 | |
Level 2 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 1,593,507 | 1,106,946 |
Total | 48,995 | 110,117 |
Level 2 | Commercial paper | ||
Fair value of marketable securities | ||
Debt securities | 47,590 | 101,959 |
Level 2 | Corporate securities | ||
Fair value of marketable securities | ||
Debt securities | 877 | 8,068 |
Level 2 | Other | ||
Fair value of marketable securities | ||
Debt securities | $ 528 | $ 90 |
Marketable Investment Securit_7
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Gains And Losses On Sales And Changes In Carrying Amounts Of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | ||
Costs related to early redemption of debt | $ (2,600) | |
Equity in earnings (losses) of affiliates | 903 | $ 278 |
Other | 189 | 667 |
Total | $ (1,508) | $ 945 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory | ||
Finished goods | $ 217,399 | $ 226,866 |
Work-in-process and service repairs | 22,468 | 25,206 |
Raw materials | 8,681 | 10,225 |
Total inventory | $ 248,548 | $ 262,297 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property and Equipment | ||
Total property and equipment | $ 5,104,861 | $ 5,141,928 |
Accumulated depreciation | (3,610,842) | (3,577,224) |
Property and equipment, net | 1,494,019 | 1,564,704 |
Equipment leased to customers | ||
Property and Equipment | ||
Total property and equipment | $ 1,672,399 | 1,719,778 |
Equipment leased to customers | Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 2 years | |
Equipment leased to customers | Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 5 years | |
EchoStar XV | ||
Property and Equipment | ||
Total property and equipment | $ 277,658 | 277,658 |
Depreciable life of assets | 15 years | |
EchoStar XVIII | ||
Property and Equipment | ||
Total property and equipment | $ 411,255 | 411,255 |
Depreciable life of assets | 15 years | |
Satellites acquired under finance lease agreements | ||
Property and Equipment | ||
Total property and equipment | $ 398,107 | 398,107 |
Depreciable life of assets | 15 years | |
Furniture, fixtures, equipment and other | ||
Property and Equipment | ||
Total property and equipment | $ 1,989,431 | 1,969,107 |
Furniture, fixtures, equipment and other | Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 2 years | |
Furniture, fixtures, equipment and other | Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 20 years | |
Buildings and improvements | ||
Property and Equipment | ||
Total property and equipment | $ 300,246 | 301,037 |
Buildings and improvements | Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 5 years | |
Buildings and improvements | Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 40 years | |
Land | ||
Property and Equipment | ||
Total property and equipment | $ 13,186 | 13,186 |
Construction in progress | ||
Property and Equipment | ||
Total property and equipment | $ 42,579 | $ 51,800 |
Property and Equipment - Deprec
Property and Equipment - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Depreciation and amortization expense | ||
Depreciation and amortization expense | $ 115,242 | $ 135,085 |
Equipment leased to customers | ||
Depreciation and amortization expense | ||
Depreciation and amortization expense | 64,262 | 79,682 |
Satellites | ||
Depreciation and amortization expense | ||
Depreciation and amortization expense | 23,797 | 23,797 |
Buildings, furniture, fixtures, equipment and other | ||
Depreciation and amortization expense | ||
Depreciation and amortization expense | $ 27,183 | $ 31,606 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - Pay-TV Satellites | 3 Months Ended |
Mar. 31, 2021item | |
Property, Plant and Equipment [Line Items] | |
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 11 |
Owned Satellites | 2 |
Number of satellites leased from third parties | 2 |
EchoStar | |
Property, Plant and Equipment [Line Items] | |
Number of satellites utilized under operating lease | 1 |
Dish Network | |
Property, Plant and Equipment [Line Items] | |
Number of satellites utilized under operating lease | 6 |
Leases (Details)
Leases (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Leases | |
Renewal options, operating lease | true |
Renewal options, finance lease | true |
Options to terminate, operating lease | true |
Options to terminate, finance lease | true |
Minimum | |
Leases | |
Remaining lease terms, operating lease | 1 year |
Remaining lease terms, finance lease | 1 year |
Maximum | |
Leases | |
Remaining lease terms, operating lease | 11 years |
Short term lease period | 12 months |
Remaining lease terms, finance lease | 12 years |
Termination period, operating lease | 1 year |
Termination period, finance lease | 1 year |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases | ||
Operating lease cost | $ 60,023 | $ 61,715 |
Short-term lease cost | 4,236 | 2,667 |
Amortization of right-of-use assets | 12,374 | 12,448 |
Interest on lease liabilities | 3,716 | 4,798 |
Total finance lease cost | 16,090 | 17,246 |
Total lease costs | $ 80,349 | $ 81,628 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases | ||
Operating cash flows from operating leases | $ 59,178 | $ 61,808 |
Operating cash flows from finance leases | 3,652 | 4,798 |
Financing cash flows from finance leases | 12,580 | 11,466 |
Operating leases | $ 7,417 | $ 6,749 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases | ||
Operating lease assets | $ 335,609 | $ 380,968 |
Other current liabilities | $ 169,566 | 186,967 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:DeferredLongTermLiabilityCharges | |
Operating lease liabilities | us-gaap:DeferredLongTermLiabilityCharges | |
Operating lease liabilities | $ 165,514 | 192,624 |
Total operating lease liabilities | $ 335,080 | 379,591 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityNoncurrent us-gaap:AccountsPayableCurrent | |
Property and equipment, gross | $ 5,104,861 | 5,141,928 |
Accumulated depreciation | (3,610,842) | (3,577,224) |
Property and equipment, net | 1,494,019 | 1,564,704 |
Other current liabilities | 50,260 | 49,820 |
Other long-term liabilities | 97,098 | 110,789 |
Total finance lease liabilities | $ 147,358 | $ 160,609 |
Weighted Average Remaining Lease Term: Operating leases | 2 years 10 months 24 days | 2 years 10 months 24 days |
Weighted Average Remaining Lease Term: Finance leases | 3 years 1 month 6 days | 3 years 3 months 18 days |
Weighted Average Discount Rate: Operating leases | 8.60% | 8.70% |
Weighted Average Discount Rate: Finance leases | 9.60% | 9.60% |
Property and equipment [Member] | ||
Leases | ||
Property and equipment, gross | $ 398,875 | $ 398,875 |
Accumulated depreciation | (263,447) | (251,073) |
Property and equipment, net | $ 135,428 | $ 147,802 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Maturities of lease liabilities: Operating lease | ||
2021 (remaining nine months) | $ 151,848 | |
2022 | 138,299 | |
2023 | 32,083 | |
2024 | 13,436 | |
2025 | 8,379 | |
Thereafter | 35,487 | |
Total lease payments | 379,532 | |
Less: Imputed interest | (44,452) | |
Total operating lease liabilities | 335,080 | $ 379,591 |
Less: Current portion | (169,566) | (186,967) |
Operating lease liabilities | 165,514 | 192,624 |
Maturities of lease liabilities: Finance lease | ||
2021 (remaining nine months) | 45,696 | |
2022 | 50,227 | |
2023 | 42,862 | |
2024 | 32,147 | |
Total lease payments | 170,932 | |
Less: Imputed interest | (23,574) | |
Total finance lease liabilities | 147,358 | 160,609 |
Less: Current portion | (50,260) | (49,820) |
Long-term portion of lease obligations | 97,098 | $ 110,789 |
Future minimum payments for total lease liabilities | ||
2021 (remaining nine months) | 197,544 | |
2022 | 188,526 | |
2023 | 74,945 | |
2024 | 45,583 | |
2025 | 8,379 | |
Thereafter | 35,487 | |
Total lease payments | 550,464 | |
Less: Imputed interest | (68,026) | |
Total | 482,438 | |
Less: Current portion | (219,826) | |
Long-term portion of lease obligations | $ 262,612 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Long term debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Jun. 01, 2021 | Dec. 31, 2020 | |
Long-term debt | |||
Finance lease obligations | $ 147,358 | $ 160,609 | |
Decrease in mortgages and other notes payable | 2,517 | ||
6 3/4% Senior Notes due 2021 | |||
Long-term debt | |||
Debt repurchased | 205,000 | ||
Outstanding debt | $ 1,795,000 | ||
D I S H D B S Corporation | |||
Long-term debt | |||
Carrying Amount | 10,318,211 | 10,523,565 | |
Fair Value | 10,847,990 | 11,139,175 | |
Unamortized deferred financing costs and debt discounts, net | (11,310) | (12,684) | |
Finance lease obligations | 147,358 | 160,609 | |
Total long-term debt and finance lease obligations (including current portion) | 10,454,259 | 10,671,490 | |
D I S H D B S Corporation | 6 3/4% Senior Notes due 2021 | |||
Long-term debt | |||
Carrying Amount | 1,794,646 | 2,000,000 | |
Fair Value | $ 1,811,480 | $ 2,047,260 | |
Interest rate (as a percent) | 6.75% | 6.75% | |
D I S H D B S Corporation | 5 7/8% Senior Notes due 2022 | |||
Long-term debt | |||
Carrying Amount | $ 2,000,000 | $ 2,000,000 | |
Fair Value | $ 2,094,220 | $ 2,095,820 | |
Interest rate (as a percent) | 5.875% | 5.875% | |
D I S H D B S Corporation | 5% Senior Notes due 2023 | |||
Long-term debt | |||
Carrying Amount | $ 1,500,000 | $ 1,500,000 | |
Fair Value | $ 1,560,705 | $ 1,566,300 | |
Interest rate (as a percent) | 5.00% | 5.00% | |
D I S H D B S Corporation | 5 7/8% Senior Notes due 2024 | |||
Long-term debt | |||
Carrying Amount | $ 2,000,000 | $ 2,000,000 | |
Fair Value | $ 2,101,980 | $ 2,099,580 | |
Interest rate (as a percent) | 5.875% | 5.875% | |
D I S H D B S Corporation | 7 3/4% Senior Notes due 2026 | |||
Long-term debt | |||
Carrying Amount | $ 2,000,000 | $ 2,000,000 | |
Fair Value | $ 2,203,100 | $ 2,236,520 | |
Interest rate (as a percent) | 7.75% | 7.75% | |
D I S H D B S Corporation | 7 3/8% Senior Notes due 2028 | |||
Long-term debt | |||
Carrying Amount | $ 1,000,000 | $ 1,000,000 | |
Fair Value | $ 1,052,940 | $ 1,070,130 | |
Interest rate (as a percent) | 7.375% | 7.375% | |
D I S H D B S Corporation | Other notes payable | |||
Long-term debt | |||
Carrying Amount | $ 23,565 | $ 23,565 | |
Fair Value | $ 23,565 | $ 23,565 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative Part 2 (Details) - USD ($) | Sep. 27, 2019 | Oct. 06, 2017 | Sep. 23, 2016 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Oct. 01, 2018 |
Dish Network | |||||||
Loss contingencies | |||||||
Total investment | $ 22,000,000,000 | $ 22,000,000,000 | |||||
Payment to acquire certain wireless licenses and related assets | $ 12,000,000,000 | ||||||
Turner Network Sales Litigation [Member] | |||||||
Loss contingencies | |||||||
Interest on loss contingency | $ 24,000,000 | ||||||
Incremental loss contingency | 206,000,000 | $ 206,000,000 | |||||
Turner Network Sales Litigation [Member] | Turner Network Sales | |||||||
Loss contingencies | |||||||
Claim amount | $ 159,000,000 | ||||||
License fee payments | $ 20,000,000 | ||||||
Aggregate amount to the federal and state plaintiffs | $ 159,000,000 | ||||||
Realtime Adaptive Streaming [Member] | |||||||
Loss contingencies | |||||||
Claim amount | 42,000,000 | ||||||
Aggregate amount to the federal and state plaintiffs | 42,000,000 | ||||||
AWS 3 Auction | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | |||||||
Loss contingencies | |||||||
Bidding Credit | $ 3,300,000,000 | ||||||
Loss Contingency Recovery Amount | 10,000,000,000 | ||||||
AWS 3 Auction | Maximum | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | |||||||
Loss contingencies | |||||||
Claim amount | 11,000 | ||||||
Aggregate amount to the federal and state plaintiffs | 11,000 | ||||||
AWS 3 Auction | Minimum | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | |||||||
Loss contingencies | |||||||
Claim amount | 5,500 | ||||||
Aggregate amount to the federal and state plaintiffs | $ 5,500 | ||||||
Prepaid Business Sale [Member] | |||||||
Loss contingencies | |||||||
Payment to acquire certain wireless licenses and related assets | $ 3,590,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative Part 3 (Details) - USD ($) | Jul. 26, 2019 | Sep. 23, 2016 | Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2015 |
NTM | ||||||
Commitments and Contingencies | ||||||
Purchase price | $ 1,400,000,000 | |||||
Prepaid Business Sale [Member] | ||||||
Commitments and Contingencies | ||||||
Payment to acquire certain wireless licenses and related assets | $ 3,590,000,000 | |||||
Dish Network | ||||||
Commitments and Contingencies | ||||||
Payment to acquire certain wireless licenses and related assets | $ 12,000,000,000 | |||||
Dish Network | Spectrum Investments | ||||||
Commitments and Contingencies | ||||||
5G Network deployment | 10,000,000,000 | |||||
Northstar Spectrum And SNR Holdco | ||||||
Commitments and Contingencies | ||||||
Non-controlling investments | $ 10,000,000,000 | |||||
Northstar Spectrum And SNR Holdco | Dish Network | ||||||
Commitments and Contingencies | ||||||
Non-controlling investments | 10,000,000,000 | 10,000,000,000 | $ 10,000,000,000 | |||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | ||||||
Commitments and Contingencies | ||||||
Bidding credit credits | 25.00% | |||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | Maximum | ||||||
Commitments and Contingencies | ||||||
Claim amount | $ 11,000 | |||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | Minimum | ||||||
Commitments and Contingencies | ||||||
Claim amount | $ 5,500 | |||||
ClearPlay, Inc. | ||||||
Commitments and Contingencies | ||||||
Loss contingency | $ 543,000,000 | $ 543,000,000 |
Disaggregation of Revenue - Rev
Disaggregation of Revenue - Revenue by geographic location (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue | ||
Revenue | $ 3,162,919 | $ 3,167,782 |
United States | ||
Disaggregation of Revenue | ||
Revenue | 3,155,617 | 3,157,304 |
Canada and Mexico | ||
Disaggregation of Revenue | ||
Revenue | $ 7,302 | $ 10,478 |
Disaggregation of Revenue - R_2
Disaggregation of Revenue - Revenue from external customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue | ||
Revenue | $ 3,162,919 | $ 3,167,782 |
Pay-TV video and related revenue | ||
Disaggregation of Revenue | ||
Revenue | 3,137,387 | 3,130,900 |
Equipment sales and other revenue | ||
Disaggregation of Revenue | ||
Revenue | $ 25,532 | $ 36,882 |
Contract Balances (Details)
Contract Balances (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | $ 43,233 |
Current Period Provision For Expected Credit Losses | 8,682 |
Write-offs Charged Against Allowance | (17,622) |
Balance at End of Period | 34,293 |
Balance at Beginning of Period | 593,797 |
Recognition of unearned revenue | (1,401,337) |
Deferral of revenue | 1,415,412 |
Balance at End of Period | $ 607,872 |
Remaining performance obligations | true |
Related Party Transactions (Det
Related Party Transactions (Details) - item | Dec. 21, 2012 | Dec. 21, 2012 | Jan. 02, 2012 | May 31, 2017 | Jul. 31, 2016 | Dec. 31, 2009 | Dec. 31, 2008 |
EchoStar XVI | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement Renewal Option Term | 5 years | ||||||
TT&C Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Purchase of renewal of agreement | 1 year | ||||||
Number of automatic renewal period | 4 | ||||||
Notice period for termination of agreement | 12 months | ||||||
EchoStar | EchoStar XVI | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement term from commencement of service date | 4 years | ||||||
Agreement Renewal Option Term | 1 year | ||||||
Additional term of renewal option | 5 years | 5 years | |||||
EchoStar | Telesat Transponder Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement term with third party | 15 years | ||||||
Number of DBS transponders available to receive services | 32 | ||||||
EchoStar | DISH Nimiq 5 Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement term | 10 years | ||||||
Number of DBS transponders currently used | 32 | ||||||
EchoStar | QuetzSat-1 Lease Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement term with third party | 10 years | ||||||
Number of DBS transponders available to receive services | 32 | ||||||
Number of DBS transponders currently used | 24 |
Related Party Transactions - Na
Related Party Transactions - Narrative Part 1 (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Trade accounts receivable | $ 581,770 | $ 626,375 | |
Trade accounts payable | 378,460 | 315,661 | |
Broadband, Wireless and Other Segments | |||
Related Party Transaction [Line Items] | |||
Expenses associated with services | 20,000 | $ 21,000 | |
Office Space from DISH Network | |||
Related Party Transaction [Line Items] | |||
Expenses associated with services | 2,000 | 2,000 | |
EchoStar | |||
Related Party Transaction [Line Items] | |||
Expenses associated with services | 1,000 | 1,000 | |
Trade accounts receivable | 1,000 | 1,000 | |
Trade accounts payable | 3,000 | $ 1,000 | |
Equipment sales and other revenue | 1,000 | 1,000 | |
Dish Network | |||
Related Party Transaction [Line Items] | |||
Expenses associated with services | $ 56,000 | $ 56,000 |
Related Party Transactions - _2
Related Party Transactions - Narrative Part 2 (Details) $ in Thousands | Mar. 01, 2017item | Aug. 31, 2017item | Mar. 31, 2017 | Jan. 31, 2012item | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2009 |
Related Party Transaction [Line Items] | |||||||
Depreciation and amortization | $ 115,242 | $ 135,085 | |||||
Interest expense, net of amounts capitalized | 173,976 | 182,340 | |||||
Revenues | 3,162,919 | 3,167,782 | |||||
Service revenue | |||||||
Related Party Transaction [Line Items] | |||||||
Revenues | $ 3,137,387 | 3,130,900 | |||||
100 Inverness Lease Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Required notice period for termination by the reporting entity. | 180 days | ||||||
Nimiq 5 Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement Renewal Option Term | 1 year | ||||||
Depreciation and amortization | $ 9,000 | 9,000 | |||||
Interest expense, net of amounts capitalized | 3,000 | 4,000 | |||||
Hughes Broadband Master Services Agreement [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Required notice period for termination by the reporting entity. | 90 days | ||||||
Agreement term | 5 years | ||||||
Automatic renewal period | 1 year | ||||||
Broadband equipment purchased from related party | 1,000 | 4,000 | |||||
Hughes Broadband Master Services Agreement [Member] | Service revenue | |||||||
Related Party Transaction [Line Items] | |||||||
Revenues | $ 2,000 | $ 4,000 | |||||
EchoStar | El Paso Lease Agreement | Dish Network | |||||||
Related Party Transaction [Line Items] | |||||||
Number of consecutive three year renewal options | item | 4 | ||||||
Agreement Renewal Option Term | 3 years | ||||||
EchoStar | Professional Services Agreement | Dish Network | |||||||
Related Party Transaction [Line Items] | |||||||
Minimum notice period for termination of agreement | 60 days | ||||||
Agreement term | 1 year | ||||||
Automatic renewal period | 1 year | ||||||
EchoStar | 90 Inverness Lease Agreement | Dish Network | |||||||
Related Party Transaction [Line Items] | |||||||
Number of consecutive three year renewal options | item | 4 | ||||||
Agreement Renewal Option Term | 3 years | ||||||
EchoStar | Cheyenne Lease Agreement | Dish Network | |||||||
Related Party Transaction [Line Items] | |||||||
Number of successive one year renewal options | item | 12 | ||||||
Agreement Renewal Option Term | 1 year | ||||||
Required notice period for termination by the reporting entity. | 180 days | ||||||
EchoStar | Collocation And Antenna Space Agreements | |||||||
Related Party Transaction [Line Items] | |||||||
Required notice period for termination by the reporting entity. | 180 days | ||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement Renewal Option Term | 3 years | ||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | |||||||
Related Party Transaction [Line Items] | |||||||
Number of consecutive three year renewal options | item | 4 |
Related Party Transactions - _3
Related Party Transactions - Narrative Part 3 (Details) - USD ($) $ in Thousands | Mar. 01, 2017 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2009 |
Related Party Transaction [Line Items] | ||||||
Selling, general and administrative expenses | $ 333,074 | $ 422,249 | ||||
Meridian Lease Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Additional term of renewal option | 1 year | |||||
Santa Fe Lease Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Additional term of renewal option | 1 year | 1 year | ||||
EchoStar | ||||||
Related Party Transaction [Line Items] | ||||||
Selling, general and administrative expenses | $ 3,000 | $ 4,000 | ||||
Dish Network | EchoStar | 90 Inverness Lease Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Agreement Renewal Option Term | 3 years | |||||
Dish Network | EchoStar | Professional Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Minimum notice period for termination of agreement | 60 days | |||||
Minimum notice period for termination of a specific service | 30 days | |||||
Agreement term | 1 year |
Related Party Transactions - _4
Related Party Transactions - Narrative Part 4 (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2011 | Mar. 31, 2021 | Mar. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Cost of sales - equipment and other | $ 16,275 | $ 30,814 | |
EchoStar | Patent Cross-License Agreements | Dish Network | Maximum | |||
Related Party Transaction [Line Items] | |||
Payments to third party by related party | $ 10,000 |
Related Party Transactions - Pa
Related Party Transactions - Part 5 (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Mar. 31, 2017 | Aug. 19, 2016 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Feb. 28, 2017 | |
Related Party Transaction [Line Items] | ||||||
Sales | $ 1,295 | $ 1,381 | ||||
Rovi License Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Agreement term | 10 years | |||||
Payments to Related Parties | 0 | |||||
Hughes Broadband Master Services Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Required notice period for termination by the reporting entity. | 90 days | |||||
Agreement term | 5 years | |||||
Automatic renewal period | 1 year | |||||
Broadband equipment purchased from related party | 1,000 | 4,000 | ||||
EchoStar | ||||||
Related Party Transaction [Line Items] | ||||||
Purchases from NagraStar | 1,000 | 1,000 | ||||
NagraStar L.L.C | ||||||
Related Party Transaction [Line Items] | ||||||
Interest on equity method investment | 50.00% | |||||
Purchases from NagraStar | 11,770 | 14,092 | ||||
Amounts payable to NagraStar | 7,893 | $ 9,038 | ||||
Commitments to NagraStar | $ 4,171 | 3,260 | ||||
Dish Mexico | ||||||
Related Party Transaction [Line Items] | ||||||
Interest on equity method investment | 49.00% | |||||
Amounts receivable | $ 2,942 | $ 3,343 | ||||
Dish Mexico | Uplink services | ||||||
Related Party Transaction [Line Items] | ||||||
Sales | $ 1,295 | $ 1,381 |