Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 15, 2017 | Jun. 30, 2016 | |
Entity Registrant Name | EchoStar CORP | ||
Entity Central Index Key | 1,415,404 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,800 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Class A common stock | |||
Entity Common Stock, Shares Outstanding | 46,907,032 | ||
Class B common stock | |||
Entity Common Stock, Shares Outstanding | 47,687,039 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 2,571,143 | $ 924,240 |
Marketable investment securities, at fair value | 522,516 | 612,338 |
Trade accounts receivable, net of allowance for doubtful accounts of $13,400 and $12,485, respectively | 209,788 | 179,240 |
Trade accounts receivable - DISH Network, net of allowance for doubtful accounts of zero | 278,615 | 277,159 |
Inventory | 72,444 | 67,010 |
Prepaids and deposits | 57,919 | 56,949 |
Other current assets | 10,862 | 16,723 |
Total current assets | 3,723,287 | 2,133,659 |
Noncurrent Assets: | ||
Restricted cash and marketable investment securities | 12,926 | 21,002 |
Property and equipment, net of accumulated depreciation of $3,407,470 and $2,998,074, respectively | 3,669,303 | 3,412,990 |
Regulatory authorizations, net | 544,633 | 543,812 |
Goodwill | 510,630 | 510,630 |
Other intangible assets, net | 88,454 | 132,653 |
Investments in unconsolidated entities | 197,219 | 209,264 |
Other receivable - DISH Network | 90,586 | 90,966 |
Other noncurrent assets, net | 171,821 | 154,510 |
Total noncurrent assets | 5,285,572 | 5,075,827 |
Total assets | 9,008,859 | 7,209,486 |
Current Liabilities: | ||
Trade accounts payable | 189,815 | 213,671 |
Trade accounts payable - DISH Network | 5,032 | 24,682 |
Current portion of long-term debt and capital lease obligations | 37,307 | 35,698 |
Deferred revenue and prepayments | 62,956 | 61,881 |
Accrued compensation | 58,106 | 42,767 |
Accrued interest | 46,504 | 8,596 |
Accrued royalties | 23,199 | 22,531 |
Accrued expenses and other | 108,519 | 117,005 |
Total current liabilities | 531,438 | 526,831 |
Noncurrent Liabilities: | ||
Long-term debt and capital lease obligations, net of unamortized debt issuance costs | 3,622,879 | 2,156,667 |
Deferred tax liabilities, net | 754,020 | 650,392 |
Other noncurrent liabilities | 93,717 | 93,954 |
Total noncurrent liabilities | 4,470,616 | 2,901,013 |
Total liabilities | 5,002,054 | 3,427,844 |
Commitments and Contingencies | 0 | 0 |
Stockholders’ Equity: | ||
Additional paid-in capital | 3,828,677 | 3,776,451 |
Accumulated other comprehensive loss | (124,803) | (117,233) |
Accumulated earnings | 314,247 | 134,317 |
Treasury stock, at cost | (98,162) | (98,162) |
Total EchoStar stockholders’ equity | 3,920,065 | 3,695,478 |
Noncontrolling interest in HSS Tracking Stock | 73,910 | 74,854 |
Other noncontrolling interests | 12,830 | 11,310 |
Total stockholders’ equity | 4,006,805 | 3,781,642 |
Total liabilities and stockholders’ equity | 9,008,859 | 7,209,486 |
Class A common stock | ||
Stockholders’ Equity: | ||
Common stock | 52 | 51 |
Class B common stock | ||
Stockholders’ Equity: | ||
Common stock | 48 | 48 |
Class C common stock | ||
Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Class D common stock | ||
Stockholders’ Equity: | ||
Common stock | 0 | 0 |
Preferred Stock | ||
Stockholders’ Equity: | ||
Preferred stock | $ 6 | $ 6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Allowance for doubtful accounts on trade accounts receivable (in dollars) | $ 13,400,000 | $ 12,485,000 |
Allowance for doubtful accounts on trade accounts receivable - DISH Network (in dollars) | 0 | 0 |
Property and equipment, accumulated depreciation (in dollars) | $ 3,407,470,000 | $ 2,998,074,000 |
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 4,000,000,000 | 4,000,000,000 |
Class A common stock | ||
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued (in shares) | 52,243,465 | 51,087,839 |
Common stock, shares outstanding (in shares) | 46,711,147 | 45,555,521 |
Class B common stock | ||
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 47,687,039 | 47,687,039 |
Common stock, shares outstanding (in shares) | 47,687,039 | 47,687,039 |
Class C common stock | ||
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Class D common stock | ||
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Preferred Stock | ||
Preferred Stock: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Hughes Retail Preferred Tracking Stock | ||
Preferred Stock: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 13,000,000 | 13,000,000 |
Preferred stock, shares issued (in shares) | 6,290,499 | 6,290,499 |
Preferred stock, shares outstanding (in shares) | 6,290,499 | 6,290,499 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | |||
Services and other revenue - DISH Network | $ 888,603 | $ 918,301 | $ 828,612 |
Services and other revenue - other | 1,109,597 | 1,103,928 | 1,096,938 |
Equipment revenue - DISH Network | 711,289 | 763,184 | 1,145,979 |
Equipment revenue - other | 347,241 | 358,301 | 374,049 |
Total revenue | 3,056,730 | 3,143,714 | 3,445,578 |
Costs and Expenses: | |||
Cost of sales - services and other (exclusive of depreciation and amortization) | 844,498 | 856,065 | 838,918 |
Cost of sales - equipment (exclusive of depreciation and amortization) | 891,108 | 948,655 | 1,288,998 |
Selling, general and administrative expenses | 385,634 | 374,116 | 372,010 |
Research and development expenses | 76,024 | 78,287 | 60,886 |
Depreciation and amortization | 495,068 | 528,158 | 556,676 |
Impairment of long-lived assets | 0 | 2,400 | 0 |
Total costs and expenses | 2,692,332 | 2,787,681 | 3,117,488 |
Operating income | 364,398 | 356,033 | 328,090 |
Other Income (Expense): | |||
Interest income | 21,249 | 10,429 | 9,102 |
Interest expense, net of amounts capitalized | (123,630) | (122,066) | (171,349) |
Loss from partial redemption of debt | 0 | (5,044) | 0 |
Gains (losses) on marketable investment securities, net | 9,767 | (6,443) | 41 |
Other-than-temporary impairment loss on available-for-sale securities | 0 | (11,226) | 0 |
Equity in earnings of unconsolidated affiliates, net | 13,310 | 1,895 | 8,198 |
Other, net | 1,750 | (2,006) | 4,251 |
Total other expense, net | (77,554) | (134,461) | (149,757) |
Income before income taxes | 286,844 | 221,572 | 178,333 |
Income tax provision, net | (106,152) | (72,201) | (30,784) |
Net income | 180,692 | 149,371 | 147,549 |
Less: Net loss attributable to noncontrolling interest in HSS Tracking Stock | (944) | (5,603) | (6,714) |
Less: Net income attributable to other noncontrolling interests | 1,706 | 1,617 | 1,389 |
Net income attributable to EchoStar | 179,930 | 153,357 | 152,874 |
Less: Net loss attributable to Hughes Retail Preferred Tracking Stock (Note 4) | (1,743) | (10,343) | (12,394) |
Net income attributable to EchoStar common stock | $ 181,673 | $ 163,700 | $ 165,268 |
Weighted-average common shares outstanding - Class A and B common stock: | |||
Basic (in shares) | 93,795 | 92,397 | 91,190 |
Diluted (in shares) | 94,410 | 93,466 | 92,616 |
Earnings per share - Class A and B common stock: | |||
Basic (in dollars per share) | $ 1.94 | $ 1.77 | $ 1.81 |
Diluted (in dollars per share) | $ 1.92 | $ 1.75 | $ 1.78 |
Comprehensive Income (Loss) | |||
Net income | $ 180,692 | $ 149,371 | $ 147,549 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (11,315) | (62,731) | (31,935) |
Recognition of foreign currency translation loss in net income | 0 | 1,889 | 0 |
Unrealized gains (losses) on available-for-sale securities and other | 9,149 | (12,046) | (9,462) |
Recognition of other-than-temporary loss on available-for-sale securities in net income | 0 | 11,226 | 0 |
Recognition of realized gains on available-for-sale securities in net income | (5,590) | (35) | (41) |
Total other comprehensive loss, net of tax | (7,756) | (61,697) | (41,438) |
Comprehensive income | 172,936 | 87,674 | 106,111 |
Less: Comprehensive loss attributable to noncontrolling interest in HSS Tracking Stock | (944) | (5,603) | (6,714) |
Less: Comprehensive income attributable to other noncontrolling interests | 1,520 | 1,297 | 1,152 |
Comprehensive income attributable to EchoStar | $ 172,360 | $ 91,980 | $ 111,673 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Hughes Retail Preferred Tracking Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Treasury Stock | Noncontrolling Interest in HSS Tracking Stock | Other Noncontrolling Interests |
Beginning balance at Dec. 31, 2013 | $ 3,226,231 | $ 96 | $ 0 | $ 3,502,005 | $ (14,655) | $ (171,914) | $ (98,162) | $ 0 | $ 8,861 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Exercise of stock options | 16,710 | 2 | 16,708 | ||||||
Employee benefits | 10,316 | 10,316 | |||||||
Employee Stock Purchase Plan | 12,147 | 12,147 | |||||||
Stock-based compensation | 14,683 | 14,683 | |||||||
Issuance of Hughes Retail Preferred Tracking Stock | 250,687 | 6 | 163,510 | 87,171 | |||||
Sling TV Holding exchange | 8,843 | 8,843 | |||||||
EchoStar XXI option payment, net | (9,569) | (9,569) | |||||||
Excess tax benefit from stock option exercises | (7,252) | (7,252) | |||||||
R&D tax credits utilized by DISH Network | (5,269) | (5,269) | |||||||
Net income (loss) | 147,549 | 152,874 | (6,714) | 1,389 | |||||
Unrealized losses on available-for sale securities, net and other | (9,503) | (9,503) | |||||||
Foreign currency translation adjustment | (31,935) | (31,698) | (237) | ||||||
Ending balance at Dec. 31, 2014 | 3,623,638 | 98 | 6 | 3,706,122 | (55,856) | (19,040) | (98,162) | 80,457 | 10,013 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Exercise of stock options | 24,841 | 1 | 24,840 | ||||||
Employee benefits | 10,711 | 10,711 | |||||||
Employee Stock Purchase Plan | 13,888 | 13,888 | |||||||
Stock-based compensation | 21,839 | 21,839 | |||||||
Excess tax benefit from stock option exercises | 3,929 | 3,929 | |||||||
R&D tax credits utilized by DISH Network | (3,048) | (3,048) | |||||||
Other, net | (1,830) | (1,830) | |||||||
Net income (loss) | 149,371 | 153,357 | (5,603) | 1,617 | |||||
Unrealized losses on available-for sale securities, net and other | (855) | (855) | |||||||
Foreign currency translation adjustment | (60,842) | (60,522) | (320) | ||||||
Ending balance at Dec. 31, 2015 | 3,781,642 | 99 | 6 | 3,776,451 | (117,233) | 134,317 | (98,162) | 74,854 | 11,310 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Exercise of stock options | 13,066 | 1 | 13,065 | ||||||
Employee benefits | 11,126 | 11,126 | |||||||
Employee Stock Purchase Plan | 14,367 | 14,367 | |||||||
Stock-based compensation | 15,234 | 15,234 | |||||||
Excess tax benefit from stock option exercises | 848 | 848 | |||||||
R&D tax credits utilized by DISH Network | (1,600) | (1,600) | |||||||
Other, net | (814) | (814) | |||||||
Net income (loss) | 180,692 | 179,930 | (944) | 1,706 | |||||
Unrealized losses on available-for sale securities, net and other | 3,559 | 3,559 | |||||||
Foreign currency translation adjustment | (11,315) | (11,129) | (186) | ||||||
Ending balance at Dec. 31, 2016 | $ 4,006,805 | $ 100 | $ 6 | $ 3,828,677 | $ (124,803) | $ 314,247 | $ (98,162) | $ 73,910 | $ 12,830 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities: | |||
Net income | $ 180,692 | $ 149,371 | $ 147,549 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 495,068 | 528,158 | 556,676 |
Impairment of long-lived assets | 0 | 2,400 | 0 |
Loss from partial redemption of debt | 0 | 5,044 | 0 |
Losses (gains) and impairment on marketable investment securities, net | (9,767) | 17,669 | (41) |
Equity in earnings of unconsolidated affiliates, net | (13,310) | (1,895) | (8,198) |
Stock-based compensation | 15,234 | 21,839 | 14,683 |
Deferred tax provision | 98,148 | 56,132 | 31,742 |
Dividends received from unconsolidated entities | 15,000 | 5,000 | 7,400 |
Proceeds from sale of trading securities | 7,140 | 380 | 17,053 |
Changes in current assets and current liabilities, net: | |||
Trade accounts receivable, net | (26,942) | (38,452) | (17,073) |
Trade accounts receivable - DISH Network | (1,456) | (25,490) | 104,051 |
Inventory | (4,814) | (4,906) | 2,608 |
Other current assets | 2,263 | 6,499 | 9,930 |
Trade accounts payable | (24,571) | 37,228 | (22,230) |
Trade accounts payable - DISH Network | (19,650) | (7,792) | (26,508) |
Accrued expenses and other | 55,998 | 1,477 | 26,469 |
Changes in noncurrent assets and noncurrent liabilities, net | 9,459 | 1,616 | (8,305) |
Other, net | 24,851 | 22,173 | 4,325 |
Net cash flows from operating activities | 803,343 | 776,451 | 840,131 |
Cash Flows from Investing Activities: | |||
Purchases of marketable investment securities | (921,247) | (536,430) | (1,523,514) |
Sales and maturities of marketable investment securities | 1,001,166 | 1,057,034 | 1,353,157 |
Expenditures for property and equipment | (722,341) | (809,270) | (680,026) |
Refunds and other receipts related to capital expenditures | 24,087 | 105,750 | 0 |
Changes in restricted cash and marketable investment securities | 8,076 | (2,057) | (2,808) |
Investments in unconsolidated entities | (1,636) | (64,655) | (18,569) |
Acquisition of regulatory authorization | 0 | (3,428) | 0 |
Expenditures for externally marketed software | (23,252) | (22,327) | (22,955) |
Other, net | 2,880 | 72 | 7,125 |
Net cash flows from investing activities | (632,267) | (275,311) | (887,590) |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of long-term debt | 1,500,000 | 0 | 0 |
Payments of debt issuance costs | (7,097) | 0 | 0 |
Repayment of 6 1/2% Senior Secured Notes Due 2019 and related premium | 0 | (113,300) | 0 |
Repayment of debt and capital lease obligations | (40,364) | (44,804) | (63,122) |
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan | 27,432 | 38,729 | 28,857 |
Net proceeds from issuance of Tracking Stock (Note 4) | 0 | 0 | 7,526 |
Excess tax benefit from stock option exercises | 848 | 3,929 | (7,252) |
Other, net | (5,130) | (4,811) | (1,105) |
Net cash flows from financing activities | 1,475,689 | (120,257) | (35,096) |
Effect of exchange rates on cash and cash equivalents | 138 | (5,696) | (2,511) |
Net increase (decrease) in cash and cash equivalents | 1,646,903 | 375,187 | (85,066) |
Cash and cash equivalents, beginning of period | 924,240 | 549,053 | 634,119 |
Cash and cash equivalents, end of period | 2,571,143 | 924,240 | 549,053 |
Supplemental Disclosure of Cash Flow Information: | |||
Cash paid for interest (including capitalized interest) | 172,707 | 179,114 | 188,087 |
Capitalized interest | 94,395 | 63,808 | 23,774 |
Cash paid for income taxes | 11,700 | 6,394 | 14,221 |
Employee benefits paid in Class A common stock | 11,126 | 10,711 | 10,316 |
Property and equipment financed under capital lease obligations | 7,652 | 8,604 | 3,312 |
Increase (decrease) in capital expenditures included in accounts payable, net | 3,054 | (7,123) | 11,436 |
Noncash assets contributed to SmarDTV (Note 6) | 0 | 6,651 | 0 |
Net noncash assets transferred from DISH Network in exchange for Tracking Stock (Note 4) | 0 | 0 | 386,691 |
Noncash assets received from Sling TV Holding (Note 6) | 0 | 0 | 34,075 |
Reduction of capital lease obligation for AMC-15 and AMC-16 satellites | $ 0 | $ 4,500 | $ 0 |
CONSOLIDATED STATEMENTS OF CAS7
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | Dec. 31, 2016 |
6 1/2% Senior Secured Notes due 2019 | |
Interest rate | 6.50% |
Organization and Business Activ
Organization and Business Activities | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Activities | Organization and Business Activities Principal Business EchoStar Corporation (which, together with its subsidiaries, is referred to as “EchoStar,” the “Company,” “we,” “us” and/or “our”) is a holding company that was organized in October 2007 as a corporation under the laws of the State of Nevada. We are a global provider of satellite service operations, video delivery solutions, digital set-top boxes, broadband satellite technologies and broadband services for home and small office customers. We deliver innovative network technologies, managed services, and various communications solutions for enterprise and government customers. Our Class A common stock is publicly traded on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “SATS.” On January 31, 2017, we and certain subsidiaries of EchoStar entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with DISH Network Corporation and certain of its subsidiaries. The Share Exchange Agreement provides, among other things, that EchoStar and its subsidiaries will receive all of the shares of the EchoStar Tracking Stock and HSS Tracking Stock in exchange for 100% of the equity interests of certain EchoStar subsidiaries that will hold our EchoStar Technologies businesses (collectively, the “Share Exchange”). Following consummation of the Share Exchange, EchoStar will no longer operate the EchoStar Technologies business segment and the EchoStar Tracking Stock and HSS Tracking Stock will be retired and all agreements, arrangements and policy statements with respect to, and terms of, such tracking stock will terminate and be of no further effect. The Share Exchange is expected to be consummated three business days after the satisfaction or waiver of all of the closing conditions to the transaction (other than conditions that by their nature are to be satisfied at the closing, but subject to the satisfaction of those conditions at such time), but no earlier than February 28, 2017. The closing conditions to the transaction involving third parties or governmental approvals have been satisfied (other than those that by their nature are to be satisfied at the closing). While we currently expect the Share Exchange to be consummated on or about February 28, 2017, no assurance can be given that the Share Exchange will be consummated on the terms or within the time frame disclosed, or at all. See Note 20 for further discussion of the Share Exchange transaction and Note 4 for more information regarding the tracking stock. We currently operate in the following three business segments: • Hughes — which provides broadband satellite technologies and broadband services to home and small office customers and network technologies, managed services and communication solutions to domestic and international consumers and enterprise and government customers. The Hughes segment also provides managed services, hardware, and satellite services to large enterprises and government customers, and designs, provides and installs gateway and terminal equipment to customers for other satellite systems. In addition, our Hughes segment provides satellite ground segment systems and terminals to mobile system operators. • EchoStar Technologies — which designs, develops and distributes secure end-to-end video technology solutions including digital set-top boxes and related products and technology, primarily for satellite TV service providers and telecommunication companies. Our EchoStar Technologies segment also provides digital broadcast operations, including satellite uplinking/downlinking, transmission services, signal processing, conditional access management, and other services, primarily to DISH Network Corporation and its subsidiaries (“DISH Network”) and Dish Mexico, S. de R.L. de C.V. (“Dish Mexico”), a joint venture we entered into in 2008. In addition, we provide our TV Anywhere technology through Slingbox® units directly to consumers via retail outlets and online, as well as to the pay-TV operator market. Beginning in 2015, this segment also includes our over-the-top (“OTT”), Streaming Video on Demand (“SVOD”) platform business, which primarily provides support services to DISH Network’s Sling TV TM service (“Sling TV”). • EchoStar Satellite Services (“ESS”) — which uses certain of our owned and leased in-orbit satellites and related licenses to provide satellite service operations and video delivery solutions on a full-time and occasional-use basis primarily to DISH Network, Dish Mexico, United States (“U.S.”) government service providers, internet service providers, broadcast news organizations, programmers, and private enterprise customers. We also manage satellite operations for several satellites owned by third parties. Our operations also include real estate and other activities that have not been assigned to our operating segments, including costs incurred in certain satellite development programs and other business development activities, expenses of various corporate departments, and our centralized treasury operations, including income from our investment portfolio and interest expense on our debt. In 2008, DISH Network completed its distribution to us of its digital set-top box business, certain infrastructure, and other assets and related liabilities, including certain of its satellites, uplink and satellite transmission assets, and real estate (the “Spin-off”). Since the Spin-off, EchoStar and DISH Network have operated as separate publicly-traded companies. However, as a result of the Satellite and Tracking Stock Transaction, described in Note 4 below, DISH Network owns preferred tracking stock in EchoStar Corporation and one of our subsidiaries representing an aggregate 80.0% economic interest in the residential retail satellite broadband business of our Hughes segment. The tracking stock is an equity security and the rights of DISH Network, as the holder of the tracking stock, in our assets are subject to the claims of our creditors. In addition, a substantial majority of the voting power of the shares of EchoStar and DISH Network is owned beneficially by Charles W. Ergen, our Chairman, and by certain trusts established by Mr. Ergen for the benefit of his family. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation We consolidate all entities in which we have a controlling financial interest. We are deemed to have a controlling financial interest in variable interest entities where we are the primary beneficiary. We are deemed to have a controlling financial interest in other entities when we own more than 50 percent of the outstanding voting shares and other shareholders do not have substantive rights to participate in management. For entities we control but do not wholly own, we record a noncontrolling interest within stockholders’ equity for the portion of the entity’s equity attributed to the noncontrolling ownership interests. As of December 31, 2016 and 2015 , noncontrolling interests consist primarily of HSS Tracking Stock owned by DISH Network, as described in Note 4 below. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheets, the reported amounts of revenue and expense for each reporting period, and certain information disclosed in the notes to our consolidated financial statements. Estimates are used in accounting for, among other things, amortization periods for deferred subscriber acquisition costs, revenue recognition using the percentage-of-completion method, allowances for doubtful accounts, allowances for sales returns and rebates, warranty obligations, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of stock-based compensation awards, fair value of assets and liabilities acquired in business combinations, lease classifications, asset impairment testing, useful lives and methods for depreciation and amortization of long-lived assets, and certain royalty obligations. We base our estimates and assumptions on historical experience, observable market inputs and on various other factors that we believe to be relevant under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements. Changing economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions are reflected in the period they occur or prospectively if the revised estimate affects future periods. Foreign Currency The functional currency for certain of our foreign operations is determined to be the local currency. Accordingly, we translate assets and liabilities of these foreign entities from their local currencies to U.S. dollars using period-end exchange rates and translate income and expense accounts at monthly average rates. The resulting translation adjustments are recorded in other comprehensive income (loss) as “ Foreign currency translation adjustments ” in our consolidated statements of operations and comprehensive income (loss) . We have not recorded deferred income taxes related to our foreign currency translation adjustments. Gains and losses resulting from re-measurement of monetary assets and liabilities denominated in foreign currencies into the functional currency are recognized in “ Other, net ” in our consolidated statements of operations and comprehensive income (loss) . We recognized net foreign currency transaction losses of $0.5 million , $7.7 million and $3.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Cash and Cash Equivalents We consider all liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents as of December 31, 2016 and 2015 primarily consisted of money market funds, government bonds, corporate notes, and commercial paper. The amortized cost of these investments approximates their fair value. Marketable Investment Securities We classify our marketable investment securities as available for sale, except in uncommon instances where we have designated certain securities as trading securities. We report all marketable investment securities at fair value in our consolidated balance sheets. We recognize periodic changes in the fair value of trading securities and realized gains and losses on sale of available-for-sale securities in “Gains (losses) on marketable investment securities,” a component of net income, in our consolidated statements of operations and comprehensive income (loss). For available-for-sale securities, we recognize periodic changes in the difference between fair value and amortized cost in other comprehensive income (loss). Realized gains and losses upon sale of available-for-sale securities are reclassified from other comprehensive income (loss) and recognized in net income on the trade date. We use the first-in, first-out (“FIFO”) method to determine the cost basis on sales of marketable investment securities. Interest and dividend income from marketable investment securities is reported in “ Interest income ” and “ Other, net ,” respectively, in our consolidated statements of operations and comprehensive income (loss) . Dividend income is recognized on the ex-dividend date. We evaluate our available-for-sale securities portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other than temporary. Our evaluation consists of reviewing, among other things: • the fair value of each security compared to its amortized cost; • the length of time and the extent to which the fair value of a security has been lower than amortized cost; • the historical volatility of the price of each security; • any market and company-specific factors related to each security; and • our intent and ability to hold the investment to recovery. Where the fair value of a debt security has declined below its amortized cost, we consider the decline to be other than temporary if any of the following factors apply: • we intend to sell the security, • it is more likely than not that we will be required to sell the security before maturity or recovery, or • we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. Declines in the fair value of available-for-sale securities that are determined to be other than temporary are reclassified from other comprehensive income (loss) and recognized in net income, thus establishing a new cost basis for the investment. Investments in Unconsolidated Entities — Cost and Equity Method We use the equity method to account for equity investments in entities that we do not control but have the ability to significantly influence the operating decisions of the investee. We use the cost method when we do not have the ability to significantly influence the operating decisions of the investee. Generally, our equity investments accounted for using either the equity method or cost method are not publicly traded and it is not practicable to regularly estimate the fair value of such investments. We evaluate these equity investments on a quarterly basis to determine whether an event or changes in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. As part of our evaluation, we review available information such as business plans and current financial statements of these companies for factors that may indicate an impairment of our investments. Such factors may include, but are not limited to, unprofitable operations, negative cash flow, material litigation, violations of debt covenants, bankruptcy and changes in business strategy. When we determine that an investment is impaired, and the impairment is other than temporary, we adjust the carrying amount of the investment to its estimated fair value and recognize the impairment loss in net income. Generally, equity method investments are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in “ Equity in earnings of unconsolidated affiliates, net ” in our consolidated statements of operations and comprehensive income (loss) . The carrying amount of our investments may include a component of goodwill if the cost of our investment exceeds the fair value of the underlying identifiable assets and liabilities of the investee. Dividends received from equity method investees reduce the carrying amount of the investment. We defer, to the extent of our ownership interest in the investee, recognition of intra-entity profits on sales of equipment to the investee until the investee has charged the cost of the equipment to expense in a subsequent sale to a third party or through depreciation. In these circumstances, we report the gross amounts of revenue and cost of sales in the statement of operations and include the intra-entity profit eliminations within “ Equity in earnings of unconsolidated affiliates, net .” Accounts Receivable We estimate allowances for uncollectible accounts receivable based upon past collection experience and consideration of other relevant factors. Past experience may not be indicative of future collections and therefore additional adjustments could be recognized in the future to reflect differences between estimated and actual collections. Inventory Inventory is stated at the lower of cost, determined using the FIFO method, or net realizable value. Cost of inventory consists primarily of materials, direct labor and indirect overhead incurred in the procurement and manufacturing of our products. We use standard costing methodologies in determining the cost of certain of our finished goods and work-in-process inventories. We determine net realizable value using our best estimates of future use or recovery, considering the aging and composition of inventory balances, the effects of technological and/or design changes, forecasted future product demand based on firm or near-firm customer orders, and alternative means of disposition of excess or obsolete items. We recognize losses within operating income when we determine that the cost of inventory and commitments to purchase inventory exceed net realizable value. Property and Equipment Property and equipment is stated at cost, less accumulated depreciation. The cost of our satellites includes construction costs, including the present value of in-orbit incentives payable to the satellite manufacturer, launch costs, capitalized interest, and related insurance premiums. Depreciation is recorded on a straight-line basis over lives ranging from one to 40 years. Repair and maintenance costs are charged to expense when incurred. Costs of renewals and betterments are capitalized. Impairment of Long-lived Assets We review our long-lived assets for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For assets held and used in operations, the asset is not recoverable if the carrying amount of the asset exceeds its undiscounted estimated future net cash flows. When an asset is not recoverable, we adjust the carrying amount of such asset to its estimated fair value and recognize the impairment loss in net income. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value less costs to sell. Goodwill Goodwill represents the excess of the cost of acquired businesses over the estimated fair value assigned to the identifiable assets acquired and liabilities assumed. We do not amortize goodwill, but test goodwill for impairment annually, or more frequently if circumstances indicate impairment may exist. Our goodwill as of December 31, 2016 and 2015 consists primarily of goodwill assigned to reporting units of our Hughes segment. We test Hughes goodwill for impairment in the second fiscal quarter. There are two steps to the goodwill impairment test. Step one compares the fair value of a reporting unit with its carrying amount, including goodwill. We typically estimate fair value of the reporting units using discounted cash flow techniques, which includes significant assumptions about prospective financial information, terminal value and discount rates (Level 3 inputs). If the reporting unit’s carrying amount exceeds its estimated fair value, it is necessary to perform the second step of the impairment test, which compares the implied fair value of reporting unit goodwill with the carrying amount of such goodwill to determine the amount of impairment loss. We may bypass the two-step goodwill impairment test if we determine, based on a qualitative assessment, that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount including goodwill. Regulatory Authorizations and Other Intangible Assets At acquisition and periodically thereafter, we evaluate our intangible assets to determine whether their useful lives are finite or indefinite. We consider our intangible assets to have indefinite lives when no significant legal, regulatory, contractual, competitive, economic, or other factors limit the useful life. Intangible assets that have finite lives are amortized over their estimated useful lives, ranging from approximately one to 30 years. When we expect to incur significant costs to renew or extend finite-lived intangible assets, we amortize the total initial and estimated renewal costs over the combined initial and expected renewal terms. In such instances, actual renewal costs are capitalized when they are incurred. We test intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable, as discussed above under “Impairment of Long-lived Assets.” We do not amortize our indefinite-lived intangible assets, but test those assets for impairment annually or more frequently if circumstances indicate that it is more likely than not that the asset may be impaired. Costs incurred to maintain or renew indefinite-lived intangible assets are expensed as incurred. Our indefinite-lived intangible assets include Federal Communications Commission (“FCC”) authorizations and certain other contractual or regulatory rights to use spectrum at specified orbital locations (collectively “Regulatory Authorizations”). We have determined that our FCC authorizations generally have indefinite useful lives due to the following: • FCC authorizations are non-depleting assets; • renewal satellite applications generally are authorized by the FCC subject to certain conditions, without substantial cost under a stable regulatory, legislative, and legal environment; • expenditures required to maintain the authorization are not significant; and • we intend to use these authorizations indefinitely. Our non-FCC Regulatory Authorizations consist primarily of authorizations in Europe and Brazil that we acquired in 2013 and 2012, respectively. We have determined that those Regulatory Authorizations have finite lives due to uncertainties about the ability to extend or renew their terms. Income Taxes We recognize a provision or benefit for income taxes currently payable or receivable and for income tax amounts deferred to future periods . Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that exist between the financial reporting carrying amount and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we determine it is more likely than not that such deferred tax assets will not be realized in the foreseeable future. We determine deferred tax assets and liabilities separately for each taxing jurisdiction and report the net amount for each jurisdiction as a noncurrent asset or liability in our consolidated balance sheets . From time to time, we engage in transactions where the income tax consequences are uncertain. We recognize tax benefits when, in management’s judgment, a tax filing position is more likely than not to be sustained if challenged by the tax authorities. For tax positions that meet the more-likely-than-not threshold, we may not recognize a portion of a tax benefit depending on management’s assessment of how the tax position will ultimately be settled. Unrecognized tax benefits generally are netted against the deferred tax assets associated with our net operating loss carryforwards. We adjust our estimates periodically based on ongoing examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and precedent. We classify interest and penalties, if any, associated with our unrecognized tax benefits as a component of income tax provision or benefit. 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 utilize the highest level of inputs available according to the following hierarchy in determining fair value: • Level 1, defined as observable inputs being quoted prices in active markets for identical assets; • Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3, defined as unobservable inputs for which little or no market data exists, consistent with characteristics of the asset or liability that would be considered by market participants in a transaction to purchase or sell the asset or liability. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were no transfers between levels for each of the years ended December 31, 2016 or 2015 . As of December 31, 2016 and 2015 , the carrying amounts of our cash and cash equivalents, trade accounts receivable, net of allowance for doubtful accounts, accounts payable and accrued liabilities were equal to or approximated fair value due to their short-term nature or proximity to current market rates. Fair values of our marketable investment securities are based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on a Level 1 measurement that reflects quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities generally are based on Level 2 measurements, as the markets for such debt securities are less active. Trades of identical debt securities on or near the measurement date are considered a strong indication of fair value. Matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features also may be used to determine fair value of our investments in marketable debt securities. Fair values for our 2019 Senior Secured Notes, 2021 Senior Unsecured Notes and 2026 Notes (see Note 11) are based on quoted market prices in less active markets and are categorized as Level 2 measurements. The fair values of our other debt are Level 2 measurements and are estimated to approximate their carrying amounts based on the proximity of their interest rates to current market rates. As of December 31, 2016 and 2015 , the fair values of our in-orbit incentive obligations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $74.1 million and $79.3 million , respectively. We use fair value measurements from time to time in connection with asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Revenue Recognition Revenue from the sale of equipment and services generally is recognized when persuasive evidence of an arrangement exists, prices are fixed or determinable, collectibility is reasonably assured, and the goods have been delivered or services have been rendered. If any of these criteria are not met, revenue recognition is deferred until such time as all of the criteria are met. Revenue from equipment sales generally is recognized upon shipment to customers. Revenue from recurring services generally is recognized ratably over the service term. Upfront fees collected in connection with services to consumer subscribers in our Hughes segment are deferred and recognized as revenue over the estimated subscriber life. We may offer rebates to qualifying new consumer subscribers in our Hughes segment. We reduce related revenue at inception of the subscriber contract based on an estimate of the number of rebates that will be redeemed. Our estimates are based on historical experience and actual sales during the promotion. Services and other revenue includes revenue from leases of satellite capacity and equipment. We typically determine based on applicable criteria that our leasing arrangements are operating leases and recognize related revenue on a straight-line basis over the lease term. In situations where customer offerings represent an arrangement for both services and equipment, revenue elements with standalone value to the customer are separated for revenue recognition purposes based on their selling prices if sold separately. We determine selling prices under a hierarchy that considers vendor-specific objective evidence (“VSOE”), third-party evidence and estimated selling prices. Typically, we derive VSOE from service renewal rates and optional equipment prices specified in customer contracts or we estimate prices based on the gross margin that we ordinarily realize in transactions with similarly situated customers. In addition to equipment and service offerings, our Hughes segment also enters into contracts to design, develop, and deliver complex telecommunication networks to customers in its enterprise and mobile satellite systems markets. Those contracts require significant effort to develop and construct the network over an extended time period. Revenue from such contracts is recognized using the percentage-of-completion method. Depending on the nature of the arrangement, we measure progress toward contract completion using the cost-to-cost method or the units-of-delivery method. Under the cost-to-cost method, revenue reflects the ratio of costs incurred to estimated total costs at completion multiplied by the total estimated contract revenue. Under the units-of-delivery method, revenue and related costs are recognized as products are delivered based on the expected profit for the entire agreement. Profit margins on long-term contracts are based on estimates of revenue and costs at completion. We review and revise our estimates periodically and recognize related adjustments in the period in which the revisions are made. Estimated losses on contracts are recorded in the period in which they are identified. We report revenue net of sales taxes imposed on our goods and services in our consolidated statements of operations and comprehensive income (loss) . Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. Debt Issuance Costs Costs of issuing debt generally are deferred and amortized utilizing the effective interest method with amortization included in “ Interest expense, net of amounts capitalized ” in our consolidated statements of operations and comprehensive income (loss) . We report unamortized debt issuance costs as a reduction of the related long-term debt in our consolidated balance sheets. Cost of Sales - Services and Equipment Cost of sales - services primarily consists of costs of digital broadcast operations, satellite capacity and services, hub infrastructure, customer care, wireline and wireless capacity, and direct labor costs associated with the services provided. Costs of sales - services generally are charged to expense as incurred. Cost of sales - equipment primarily consists of inventory costs, including freight and royalties. Cost of sales - equipment generally is recognized as products are delivered to customers and related revenue is recognized. Research and Development Costs incurred in research and development activities generally are expensed as incurred. A significant portion of our research and development costs are incurred in connection with the specific requirements of a customer’s order. In such instances, the amounts for these customer funded development efforts are included in cost of sales. Cost of sales includes research and development costs incurred in connection with customer’s orders of approximately $67.8 million , $59.2 million and $68.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. In addition, we incurred other research and development expenses of approximately $76.0 million , $78.3 million and $60.9 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Subscriber Acquisition Costs Subscriber Acquisition Costs (“SAC”) consists of costs paid to third-party dealers and customer service representative commissions on new service activations and hardware upgrades and, in certain cases, the cost of hardware and installation services provided to non-wholesale consumer customers at the inception of service or hardware upgrade. SAC is deferred when a customer enters into a service agreement and is subsequently amortized over the service agreement term in proportion to when the related service revenue is recognized. We monitor the recoverability of deferred SAC and are entitled to an early termination fee if the subscriber cancels service prior to the end of the service agreement term. The recoverability of deferred SAC is reasonably assured through the monthly service fee charged to customers, our ability to recover the equipment, and/or our ability to charge an early termination fee. Deferred SAC is included in “Other noncurrent assets, net” in our consolidated balance sheets. Capitalized Software Costs Costs related to the procurement and development of software for internal-use and externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years . Capitalized costs of internal-use software are included in “Property and equipment, net” and capitalized costs of externally marketed software are included in “ Other noncurrent assets, net ” in our consolidated balance sheets . Externally marketed software generally is installed in the equipment we sell to customers. We conduct software program reviews for externally marketed capitalized software costs at least annually, or as events and circumstances warrant such a review, to determine if capitalized software development costs are recoverable and to ensure that costs associated with programs that are no longer generating revenue are expensed. As of December 31, 2016 and 2015 , the net carrying amount of externally marketed software was $76.3 million and $62.8 million , respectively, of which $50.1 million and $32.6 million , respectively, is under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $23.3 million , $22.4 million and $23.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. We recorded amortization expense relating to the development of externally marketed software of $9.7 million , $8.4 million and $5.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The weighted average useful life of our externally marketed software was approximately three years as of December 31, 2016 . Stock-based Compensation Expense Stock-based compensation expense is recognized based on the fair value of stock awards ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Compensation expense for awards with service conditions only is recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense for awards subject to performance conditions is recognized only when satisfaction of the performance condition is probable. Advertising Costs Advertising costs are expensed as incurred and are included in “ Selling, general and administrative expenses ” in our consolidated statements of operations and comprehensive income (loss) . We incurred advertising expense of $56.3 million , $49.9 million and $50.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). It outlines a single comprehensive model, codified in Topic 606 of the FASB Accounting Standards Codification, for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In August 2015, the FASB issued ASU No. 2015-14, which deferred the mandatory effective date of ASU 2014-09 by one year. As a result, public entities are required to adopt the new revenue standard in annual periods beginning after December 15, 2017 and in interim periods within those annual periods. The standard may be applied either retrospectively to prior periods or as a cumulative-effect adjustment as of the date of adoption. Early adoption is permitted, but not before annual periods beginning after December 15, 2016. In March 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing, which amends guidance on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients, which addresses collectibility, noncash consideration, completed contracts at transition, a practical expedient for contract modifications at transition, and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. In January 2017, the FASB issued ASU No. 2016-20, Technical Corrections to Topic 606, which clarifies, but does not fundamentally change, certain aspects of the new revenue standard. We have not selected the transition method that we will apply upon adoption. We continue to evaluate the impact of the new standard and available adoption methods on our consolidated financial statements. We are in the process of evaluating arrangements with customers and identifying differences in accounting between new and existing standards. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard amends the consolidation gui |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share We present basic earnings per share (“EPS”) and diluted EPS for our Class A and Class B common stock. The EchoStar Tracking Stock (see Note 4 for definitions and a further discussion of the preferred tracking stock, the EchoStar Group and the Hughes Retail Group) is a participating security that shares in our consolidated earnings and therefore, we apply the two-class method to calculate EPS. Under the two-class method, we allocate net income or loss attributable to EchoStar between common stock and the EchoStar Tracking Stock considering both dividends declared on each class of stock and the participation rights of each class of stock in undistributed earnings. Based on the 51.89% economic interest in the Hughes Retail Group, represented by the EchoStar Tracking Stock, we allocate undistributed earnings to the EchoStar Tracking Stock based on 51.89% of the attributed net income or loss of the Hughes Retail Group. Moreover, because the reported amount of “Net income attributable to EchoStar” in our consolidated statements of operations and comprehensive income (loss) excludes DISH Network’s 28.11% economic interest (represented by the HSS Tracking Stock) in the net loss of the Hughes Retail Group (reported as a noncontrolling interest), the amount of consolidated net income or loss allocated to holders of Class A and Class B common stock effectively excludes an aggregate 80.0% of the attributed net loss of the Hughes Retail Group. Basic EPS for our Class A and Class B common stock excludes potential dilution and is computed by dividing “ Net income attributable to EchoStar common stock ” by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if shares of common stock were issued pursuant to our stock-based compensation awards. The potential dilution from common stock awards was computed using the treasury stock method based on the average market value of our Class A common stock during the period. The calculation of our diluted weighted-average common shares outstanding excluded options to purchase shares of our Class A common stock, whose effect would be anti-dilutive, of 3.5 million , 2.3 million and 2.3 million shares for the years ended December 31, 2016 , 2015 and 2014 , respectively. The calculation also excluded 0.7 million shares of our Class A common stock that were issuable pursuant to our performance based stock incentive plans contingent upon meeting a company-specific performance measure by March 31, 2015, that was not achieved and which resulted in the expiration of such awards as of March 31, 2015. The following table presents basic and diluted EPS amounts for all periods and the corresponding weighted-average shares outstanding used in the calculations. For the Years Ended December 31, 2016 2015 2014 (In thousands, except per share amounts) Net income attributable to EchoStar $ 179,930 $ 153,357 $ 152,874 Less: Net loss attributable to EchoStar Tracking Stock (1,743 ) (10,343 ) (12,394 ) Net income attributable to EchoStar common stock $ 181,673 $ 163,700 $ 165,268 Weighted-average common shares outstanding : Class A and B common stock: Basic 93,795 92,397 91,190 Dilutive impact of stock awards outstanding 615 1,069 1,426 Diluted 94,410 93,466 92,616 Earnings per share: Class A and B common stock: Basic $ 1.94 $ 1.77 $ 1.81 Diluted $ 1.92 $ 1.75 $ 1.78 |
Hughes Retail Preferred Trackin
Hughes Retail Preferred Tracking Stock | 12 Months Ended |
Dec. 31, 2016 | |
Hughes Retail Preferred Tracking Stock | |
Hughes Retail Preferred Tracking Stock | Hughes Retail Preferred Tracking Stock On January 31, 2017, we entered into the Share Exchange Agreement. The Share Exchange Agreement provides, among other things, that EchoStar and its subsidiaries will receive all of the shares of the EchoStar Tracking Stock (as defined below) and HSS Tracking Stock (as defined below) in exchange for 100% of the equity interests of certain EchoStar subsidiaries that will hold our EchoStar Technologies businesses. Following consummation of the Share Exchange, the EchoStar Tracking Stock and HSS Tracking Stock will be retired and all agreements, arrangements and policy statements with respect to, and terms of, such tracking stock will terminate and be of no further effect. See Note 20 for further discussion of the Share Exchange. Satellite and Tracking Stock Transaction In February 2014, EchoStar entered into agreements with certain subsidiaries of DISH Network pursuant to which, effective March 1, 2014, (i) EchoStar issued shares of its newly authorized Hughes Retail Preferred Tracking Stock (the “EchoStar Tracking Stock”) and Hughes Satellite Systems Corporation (“HSS”), a subsidiary of EchoStar, also issued shares of its newly authorized Hughes Retail Preferred Tracking Stock (the “HSS Tracking Stock” and together with the EchoStar Tracking Stock, the “Tracking Stock”) to DISH Network in exchange for five satellites (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI, and EchoStar XIV), including the assumption of related in-orbit incentive obligations, and $11.4 million in cash and (ii) DISH Network began receiving certain satellite services on these five satellites from us (the “Satellite and Tracking Stock Transaction”). The Tracking Stock tracks the economic performance of the residential retail satellite broadband business of our Hughes segment, including certain operations, assets and liabilities attributed to such business (collectively, the “Hughes Retail Group” or “HRG”). The Satellite and Tracking Stock Transaction was consistent with the long-term strategy of the Company to increase the scale of its satellite services business, which provides high-margin revenues, while continuing to benefit from the growth of the satellite broadband business. As a result of the additional satellites received in the Satellite and Tracking Stock Transaction, EchoStar increased short-term cash flow that it believes has better positioned it to achieve its strategic objectives. EchoStar and HSS have adopted policy statements (the “Policy Statements”) setting forth management and allocation policies for purposes of attributing all of the business and operations of EchoStar to either the Hughes Retail Group or the “EchoStar Group,” which is defined as all other operations of EchoStar, including all existing and future businesses, other than the Hughes Retail Group. Among other things, the Policy Statements govern how assets, liabilities, revenue and expenses are attributed or allocated between HRG and the EchoStar Group. Such attributions and allocations generally do not affect the amounts reported in our consolidated financial statements, except for the attribution of stockholders’ equity and net income or loss between the holders of Tracking Stock and common stock. The Policy Statements also do not significantly affect the way that management assesses operating performance and allocates resources within our Hughes segment. We provide unaudited attributed financial information for HRG and the EchoStar Group in an exhibit to our periodic reports on Form 10-Q and Annual Report on Form 10-K. Set forth below is information about certain terms of the Tracking Stock and the initial recording of the Satellite and Tracking Stock Transaction in our consolidated financial statements, as well as the purpose and effect of the transaction on the Company and the Company’s Class A common stock. Description of the Tracking Stock Tracking stock is a type of capital stock that the issuing company intends to reflect or “track” the economic performance of a particular business component within the company, rather than reflect the economic performance of the company as a whole. The Tracking Stock is intended to track the economic performance of the Hughes Retail Group. The shares of the Tracking Stock issued to DISH Network represent an aggregate 80.0% economic interest in the Hughes Retail Group (the shares issued as EchoStar Tracking Stock represent a 51.89% economic interest in the Hughes Retail Group and the shares issued as HSS Tracking Stock represent a 28.11% economic interest in the Hughes Retail Group). In addition to the remaining 20.0% economic interest in the Hughes Retail Group, EchoStar retains all economic interest in the wholesale satellite broadband business and other businesses of EchoStar. The 80.0% economic interest was determined at the time of issuance based on the estimated fair value of the consideration received from DISH Network in exchange for the Tracking Stock, consisting of the five satellites and $11.4 million in cash, relative to the estimated fair value of the Hughes Retail Group. The allocation of economic interest represented by the Tracking Stock of 51.89% issued as EchoStar Tracking Stock and 28.11% issued as HSS Tracking Stock reflected the relative assignment to HSS Tracking Stock and EchoStar Tracking Stock of the aggregate increase in equity resulting from DISH Network’s contribution of the satellites and cash. The tracking stock structure and the allocation of the tracking stock economic interest between EchoStar and HSS was advantageous to EchoStar from an economic and tax perspective by allowing the Company to increase cash flow by using the value of the Hughes Retail Group to purchase the satellites from DISH Network. While DISH Network, as the holder of the Tracking Stock, holds an aggregate 80.0% economic interest in the Hughes Retail Group, the Hughes Retail Group is not a separate legal entity and therefore cannot own assets, issue securities or enter into legally binding agreements. Holders of the Tracking Stock have no direct claim to the assets of the Hughes Retail Group; rather, holders of the Tracking Stock are stockholders of its respective issuer (EchoStar or HSS) and are subject to all risks and liabilities of the issuer. The EchoStar Tracking Stock is a series of preferred stock consisting of 13,000,000 authorized shares with a par value of $0.001 per share, of which 6,290,499 shares were issued to DISH Network on March 1, 2014. The HSS Tracking Stock is a series of HSS preferred stock consisting of 300 authorized shares with a par value of $0.001 per share, of which 81.128 shares were issued to DISH Network on March 1, 2014. Following the issuance of the shares of the EchoStar Tracking Stock and the HSS Tracking Stock, DISH Network held 6.5% and 7.5% of the aggregate number of outstanding shares of EchoStar and HSS capital stock, respectively. As of December 31, 2016 , DISH Network held 6.3% and 7.5% of the aggregate number of outstanding shares of EchoStar and HSS capital stock, respectively. Holders of shares of the Tracking Stock vote with holders of the outstanding shares of common stock of its respective issuer, as a single class, with respect to any and all matters presented to stockholders for their action or consideration. Each share of the Tracking Stock is entitled to one tenth (1/10th) of one vote, which resulted in a relative loss of voting power for our Class A and Class B common stockholders. In the event of a liquidation of EchoStar, holders of shares of EchoStar Class A common stock, EchoStar Class B common stock and the EchoStar Tracking Stock are entitled to receive their respective proportionate interests in the net assets of EchoStar, if any, remaining for distribution upon liquidation, pro rata based upon the aggregate market value of outstanding shares of the EchoStar Tracking Stock (determined by an independent appraisal to the extent such shares are not then listed or quoted on any U.S. national or regional securities exchange or quotation system) as compared to the aggregate market value of outstanding shares of EchoStar Class A common stock and EchoStar Class B common stock. Similarly, in the event of a liquidation of HSS, holders of shares of HSS common stock and HSS Tracking Stock are entitled to receive their respective proportionate interests in the net assets of HSS, if any, remaining for distribution upon liquidation, pro rata based upon the aggregate market value of outstanding shares of HSS Tracking Stock as compared to the aggregate market value of outstanding shares of HSS common stock. Market values of HSS Tracking Stock and HSS common stock are to be determined by an independent appraisal to the extent such shares are not then listed or quoted on any U.S. national or regional securities exchange or quotation system. Should our board of directors, or the board of directors of HSS, make a future determination to pay a dividend on any shares of capital stock, the respective board of directors may, in its sole discretion, declare dividends only on shares of common stock, only on shares of the Tracking Stock or on shares of both the common stock and the Tracking Stock of the respective company. No dividend or other distribution may be paid on any shares of EchoStar Tracking Stock unless a dividend or distribution in an equivalent amount is paid on shares of HSS Tracking Stock and no dividend or other distribution may be paid on any shares of HSS Tracking Stock unless a dividend or distribution in an equivalent amount is paid on shares of EchoStar Tracking Stock. EchoStar and HSS may each, at its option, redeem all of the outstanding shares of its Tracking Stock in exchange for shares of common stock in an HRG Holding Company (as defined below), which EchoStar is required to establish pursuant to the Investor Rights Agreement discussed below. Investor Rights Agreement In connection with the Satellite and Tracking Stock Transaction, EchoStar, HSS and DISH Network entered into an agreement (the “Investor Rights Agreement”) setting forth certain rights and obligations of the parties with respect to the Tracking Stock. Among other provisions, the Investor Rights Agreement provides: (i) certain information and consultation rights for DISH Network; (ii) certain transfer restrictions on the Tracking Stock and certain rights and obligations to offer and sell under certain circumstances (including a right of first offer in favor of EchoStar), an obligation to sell the Tracking Stock to us in connection with a change of control of DISH Network and a right to require us to repurchase the Tracking Stock in connection with a change of control of EchoStar, in each case subject to certain terms and conditions; (iii) certain protective covenants afforded to holders of the Tracking Stock; and (iv) a requirement for EchoStar to establish a holding company subsidiary (an “HRG Holding Company”) that is directly or indirectly wholly owned by EchoStar and that will hold the Hughes Retail Group. In addition, the Investor Rights Agreement provides that DISH Network may, at any time on or after September 1, 2016, require EchoStar to use its commercially reasonable efforts to register some or all of the outstanding shares of the Tracking Stock under the Securities Act of 1933, as amended, subject to certain terms and conditions (including our right, upon the receipt of a demand for registration, to offer to repurchase all of the Tracking Stock). In connection with any demand for registration, DISH Network may require any outstanding shares of the HSS Tracking Stock to be exchanged for shares of the EchoStar Tracking Stock with an equivalent economic interest in the Hughes Retail Group. In the event that a registration of shares of Tracking Stock is effected, EchoStar is required to use its reasonable best efforts to amend the terms of the Tracking Stock so that the Tracking Stock will be convertible or exchangeable for shares of EchoStar Class A common stock with equivalent market value. Initial Recording of the Satellite and Tracking Stock Transaction EchoStar and DISH Network are entities under common control. In accordance with accounting principles that apply to transfers of assets between entities under common control, EchoStar and HSS recorded the net assets received from DISH Network in the Satellite and Tracking Stock Transaction at their historical carrying amounts as reflected in DISH Network’s consolidated financial statements as of February 28, 2014, the day prior to the effective date of the Satellite and Tracking Stock Transaction. DISH Network transferred the EchoStar I, EchoStar VII, and EchoStar X satellites to HSS and transferred the EchoStar XI and EchoStar XIV satellites to EchoStar. The historical carrying amounts of net assets transferred to EchoStar and HSS at the date of transfer were as follows: EchoStar(1) HSS Total (In thousands) Cash $ — $ 11,404 $ 11,404 Property and equipment, net 349,243 82,837 432,080 Current liabilities (3,479 ) (3,076 ) (6,555 ) Noncurrent liabilities (30,121 ) (8,713 ) (38,834 ) Transferred net assets $ 315,643 $ 82,452 $ 398,095 (1) All of the net assets received by EchoStar as part of the Satellite and Tracking Stock Transaction were immediately transferred to HSS and are being used by our ESS segment. The transferred net assets increased EchoStar stockholders’ equity and HSS shareholders’ equity by amounts that reflect the carrying amounts of net assets that would be distributed to holders of the Tracking Stock and common stock in a hypothetical liquidation, which would be in proportion to the relative market values (as defined in applicable agreements) of each class of stock. The amounts credited to equity were reduced by direct costs of the Tracking Stock issuance and deferred income tax liabilities arising from differences between the financial reporting carrying amounts and the tax bases of the transferred satellites. The net amounts credited to EchoStar stockholders’ equity for the EchoStar Tracking Stock (primarily additional paid-in capital) and the noncontrolling interest in the HSS Tracking Stock were as follows: EchoStar Stockholders Noncontrolling Interest Total (In thousands) Transferred net assets $ 315,643 $ 82,452 $ 398,095 Offering costs, net of tax (2,302 ) (610 ) (2,912 ) Deferred income taxes (114,525 ) (29,971 ) (144,496 ) Reallocation based on relative liquidation values (35,300 ) 35,300 — Net increase in stockholders’ equity $ 163,516 $ 87,171 $ 250,687 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Related Tax Effects | 12 Months Ended |
Dec. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Other Comprehensive Income (Loss) and Related Tax Effects | Other Comprehensive Income (Loss) and Related Tax Effects We have not recognized any tax effects on foreign currency translation adjustments because they are not expected to result in future taxable income or deductions. We have not recognized any tax effects on unrealized gains or losses on available-for-sale securities because such gains or losses would affect the amount of existing capital loss carryforwards for which the related deferred tax asset has been fully offset by a valuation allowance. Accumulated other comprehensive loss includes cumulative foreign currency translation losses of $135.4 million , $124.3 million and $63.8 million as of December 31, 2016 , 2015 and 2014 , respectively. Reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2016 , 2015 and 2014 were as follows: Accumulated Other Comprehensive Loss Components Affected Line Item in our Consolidated Statements of Operations For the Years Ended December 31, 2016 2015 2014 (In thousands) Recognition of realized gains on available-for-sale securities in net income (1) Gains (losses) on marketable investment securities, net $ (5,590 ) $ (35 ) $ (41 ) Recognition of other-than-temporary impairment loss on available-for-sale securities in net income (2) Other-than-temporary impairment loss on available-for-sale securities — 11,226 — Recognition of foreign currency translation losses in net income (3) Other, net — 1,889 — Total reclassifications, net of tax and noncontrolling interests $ (5,590 ) $ 13,080 $ (41 ) (1) When available-for-sale securities are sold, the related unrealized gains and losses that were previously recognized in other comprehensive income (loss) are reclassified and recognized as “Gains (losses) on marketable investment securities, net” in our consolidated statements of operations and comprehensive income (loss). (2) We recorded other-than-temporary impairment losses on shares of certain common stock included in our strategic equity securities. (3) As a result of the deconsolidation of several of our European subsidiaries in connection with our investment in SmarDTV SA in May 2015, the related cumulative translation adjustments that were previously recognized in other comprehensive income (loss) were reclassified and recognized as a loss within “Other income (expense)” in our consolidated statements of operations and comprehensive income (loss). See Note 6 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Investment Securities | Investment Securities Our marketable investment securities, restricted cash and cash equivalents, and investments in unconsolidated entities consisted of the following: As of December 31, 2016 2015 (In thousands) Marketable investment securities—current, at fair value: Corporate bonds $ 402,670 $ 562,236 Strategic equity securities 94,816 38,864 Other 25,030 11,238 Total marketable investment securities—current 522,516 612,338 Restricted marketable investment securities (1) 12,203 13,227 Total 534,719 625,565 Restricted cash and cash equivalents (1) 723 7,775 Investments in unconsolidated entities—noncurrent: Cost method 81,174 81,174 Equity method 116,045 128,090 Total investments in unconsolidated entities—noncurrent 197,219 209,264 Total marketable investment securities, restricted cash and cash equivalents, and investments in unconsolidated entities $ 732,661 $ 842,604 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash and marketable investment securities” in our consolidated balance sheets. Marketable Investment Securities Our marketable investment securities portfolio consists of various debt and equity instruments, which generally are classified as available-for-sale or trading securities depending on our investment strategy for those securities. The value of our investment portfolio depends on the value of such securities and other instruments comprising the portfolio. Corporate Bonds Our corporate bond portfolio includes debt instruments issued by individual corporations, primarily in the industrial and financial services industries. Strategic Equity Securities Our strategic investment portfolio consists of investments in shares of common stock of public companies, which are highly speculative and have experienced and continue to experience volatility. We did not receive any dividend income for the years ended December 31, 2016 , 2015 and 2014 . As of December 31, 2016 and 2015 , our strategic equity securities included shares of common stock of one of our customers that we received in satisfaction of certain milestone payments that were required to be paid to us under an existing long-term contract. “ Gains (losses) on marketable investment securities, net ” for the years ended December 31, 2016 and 2015 included gains of $0.6 million and losses of $6.5 million , respectively, related to trading securities that we held as of December 31, 2016 and 2015 , respectively. The fair values of our trading securities were $7.2 million and $10.3 million as of December 31, 2016 and 2015, respectively. Other Our other current marketable investment securities portfolio includes investments in various debt instruments, including U.S. government bonds , commercial paper and mutual funds. Restricted Cash and Marketable Investment Securities As of December 31, 2016 and 2015 , our restricted marketable investment securities, together with our restricted cash, included amounts required as collateral for our letters of credit or surety bonds. Unrealized Gains (Losses) on Available-for-Sale Securities The components of our available-for-sale securities are summarized in the table below. Amortized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) As of December 31, 2016 Debt securities: Corporate bonds $ 402,472 $ 285 $ (87 ) $ 402,670 Other (including restricted) 32,488 3 (23 ) 32,468 Equity securities - strategic 77,149 13,120 (2,652 ) 87,617 Total available-for-sale securities $ 512,109 $ 13,408 $ (2,762 ) $ 522,755 As of December 31, 2015 Debt securities: Corporate bonds $ 562,849 $ 10 $ (623 ) $ 562,236 Other (including restricted) 24,495 — (30 ) 24,465 Equity securities - strategic 20,855 7,748 (82 ) 28,521 Total available-for-sale securities $ 608,199 $ 7,758 $ (735 ) $ 615,222 As of December 31, 2016 , restricted and non-restricted available-for-sale securities included debt securities of $426.7 million with contractual maturities of one year or less and $8.4 million with contractual maturities greater than one year. We may realize proceeds from certain investments prior to their contractual maturity as a result of our ability to sell these securities prior to their contractual maturity. Available-for-Sale Securities in a Loss Position The following table reflects the length of time that our available-for-sale securities have been in an unrealized loss position. We do not intend to sell these securities before they recover or mature, and it is more likely than not that we will hold these securities until they recover or mature. We believe that changes in the estimated fair values of these securities are primarily related to temporary market conditions . As of December 31, 2016 2015 Fair Unrealized Fair Unrealized (In thousands) Less than 12 months $ 154,826 $ (2,760 ) $ 364,160 $ (609 ) 12 months or more 1,571 (2 ) 149,889 (126 ) Total $ 156,397 $ (2,762 ) $ 514,049 $ (735 ) Sales of Available-for-Sale Securities We recognized gains from the sales of our available-for-sale securities of $5.6 million , de minimis and $0.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. We recognized de minimis losses from the sales of our available-for-sale securities for each of the years ended December 31, 2016 , 2015 and 2014 . Proceeds from sales of our available-for-sale securities totaled $80.4 million , $111.5 million and $190.5 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Fair Value Measurements Our current marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of December 31, 2016 and 2015 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of December 31, 2016 2015 Total Level 1 Level 2 Total Level 1 Level 2 (In thousands) Cash equivalents (including restricted) $ 2,490,168 $ 62,332 $ 2,427,836 $ 840,950 $ 38,771 $ 802,179 Debt securities: Corporate bonds $ 402,670 $ — $ 402,670 $ 562,236 $ — $ 562,236 Other (including restricted) 37,233 13,517 23,716 24,465 12,078 12,387 Equity securities - strategic 94,816 94,816 — 38,864 38,864 — Total marketable investment securities $ 534,719 $ 108,333 $ 426,386 $ 625,565 $ 50,942 $ 574,623 Investments in Unconsolidated Entities — Noncurrent We have several strategic investments in certain non-publicly traded equity securities that are accounted for using either the equity or the cost method of accounting. Our ability to realize value from our strategic investments in companies that are not publicly traded depends on the success of those companies’ businesses and their ability to obtain sufficient capital 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. We recorded cash distributions from certain of our investments accounted for using the equity method of $15.0 million , $5.0 million and $7.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. These cash distributions were determined to be a return on investment and reported in cash flows from operating activities in our consolidated statements of cash flows . In June 2015, we made an equity investment in WorldVu Satellites Limited (“OneWeb”), a global low-earth orbit satellite service company. OneWeb plans to develop and operate a global network of low-earth orbit Ku-band satellites to provide internet access to fixed and mobile terminals. We do not exercise significant influence over the management of OneWeb; accordingly, we account for the investment using the cost method. In May 2015, we acquired a 22.5% interest in the equity and subordinated debt of SmarDTV SA (“SmarDTV”), a Swiss subsidiary of Kudelski SA that offers set-top boxes and conditional access modules, in exchange for cash of $13.9 million and the contribution of several of our European subsidiaries to SmarDTV. We recorded our initial investment in SmarDTV at $20.0 million , representing our estimate of the investment’s fair value using discounted cash flow techniques. Our estimate included significant unobservable inputs related to SmarDTV’s future operations and is categorized within Level 3 of the fair value hierarchy. As of the acquisition date, we deconsolidated the contributed entities and recognized a $2.6 million loss within “Other income (expense)” in our consolidated statements of operations and comprehensive income (loss) , consisting of: (i) a $0.7 million loss resulting from our initial investment (at fair value) being less than the sum of our $13.9 million cash payment and the carrying amount of the net assets of the deconsolidated entities and (ii) the reclassification from accumulated other comprehensive loss of $1.9 million in foreign currency translation adjustments related to the deconsolidated entities. The net assets of the deconsolidated entities included property and equipment of $6.7 million and cash of $0.8 million . We have the ability to exercise significant influence over SmarDTV and therefore account for our investment using the equity method. We and SmarDTV also entered into a services agreement pursuant to which our EchoStar Technologies segment purchases certain engineering services from SmarDTV. See Note 19 for information about our related party transactions with SmarDTV subsequent to the date of our initial investment. Following consummation of the Share Exchange, EchoStar will no longer own its interest in the equity and subordinated debt of SmarDTV and will no longer purchase engineering services from SmarDTV. On August 8, 2014, an option providing for an unrelated party to acquire a 51.0% equity interest in Dish Mexico was terminated. Although we have owned 49.0% of the equity of Dish Mexico since its inception in 2008, we accounted for our investment as a 24.0% equity interest using the equity method based on assumed dilution that would occur upon the exercise of the option. Upon termination of the option, we recorded a $10.3 million adjustment to increase “ Equity in earnings of unconsolidated affiliates, net ” to reflect an increase from 24.0% to 49.0% in our interest in Dish Mexico’s inception-to-date net income. For periods subsequent to the date of the termination of the option, we account for our investment in Dish Mexico as a 49.0% equity interest using the equity method. As of December 31, 2013, our equity method investments included $18.0 million for our investment in DISH Digital Holding, L.L.C. (now known as Sling TV Holding L.L.C., “Sling TV Holding”), a joint venture between us and DISH Network. The carrying amount of our investment reflected the $44.7 million aggregate carrying amount of cash and certain noncash assets that we contributed to Sling TV Holding upon its formation on July 1, 2012 in exchange for a one-third equity interest in Sling TV Holding, less our equity in the net loss of Sling TV Holding of $16.5 million and $10.2 million for the years ended December 31, 2013 and 2012, respectively. Effective August 1, 2014, we and Sling TV Holding entered into an exchange agreement (the “Exchange Agreement”) pursuant to which, we exchanged our one-third voting interest in Sling TV Holding, which we accounted for using the equity method, for a 10.0% non-voting interest in Sling TV Holding, which we account for using the cost method. As part of this transaction, we received a distribution of certain noncurrent assets associated with our OTT, SVOD platform business, including property and equipment, technology-related intangible assets and goodwill. Because we and Sling TV Holding are entities under common control, we recorded the distributed assets at their carrying amounts in Sling TV Holding’s accounts, which totaled $34.1 million at the date of distribution, and we recorded our non-voting interest at $1.1 million , which represents 10.0% of the carrying amount of the remaining equity in Sling TV Holding. These amounts exceeded the carrying amount of our existing equity method investment by $8.8 million , which was credited to additional paid-in capital because gain recognition generally is precluded by GAAP in exchanges between entities under common control. In connection with our obligations associated with our interest prior to the Exchange Agreement, we contributed $18.6 million in cash to Sling TV Holding during the third quarter of 2014. We have no obligation to contribute additional capital to Sling TV Holding. See Note 19 for more information regarding the Exchange Agreement with Sling TV Holding. Following the consummation of the Share Exchange, we will no longer hold our investment in Sling TV Holding. Investment in TerreStar In 2008, we invested in certain debt securities (“Exchangeable Notes”) of TerreStar Networks Inc. (“TerreStar”), which subsequently filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in 2010. We accounted for our investment in the Exchangeable Notes using the fair value method and, as of December 31, 2011, our investment was stated at its estimated fair value of zero . Effective March 29, 2012, the Exchangeable Notes were cancelled pursuant to TerreStar’s Chapter 11 plan of reorganization. In December 2014 and January 2016, we received $5.8 million and $0.8 million , respectively, in cash distributions from the indenture trustee in satisfaction of our claims related to the Exchangeable Notes. We accrued a receivable as of December 31, 2015 for the 2016 receipt and recognized the distributions as gains in “ Other, net ” within “Other Income (Expense)” in our consolidated statements of operations and comprehensive income (loss) . We reported the 2014 and 2016 cash receipts in “Other, net” within “Cash Flows from Investing Activities” in our consolidated statements of cash flows |
Trade Accounts Receivable
Trade Accounts Receivable | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Trade Accounts Receivable | Trade Accounts Receivable Our trade accounts receivable consisted of the following: As of December 31, 2016 2015 (In thousands) Trade accounts receivable $ 187,018 $ 168,714 Contracts in process, net 36,170 23,011 Total trade accounts receivable 223,188 191,725 Allowance for doubtful accounts (13,400 ) (12,485 ) Trade accounts receivable - DISH Network 278,615 277,159 Total trade accounts receivable, net $ 488,403 $ 456,399 As of December 31, 2016 and 2015 , progress billings offset against contracts in process amounted to $14.6 million and $2.9 million |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventory | Inventory Our inventory consisted of the following: As of December 31, 2016 2015 (In thousands) Finished goods $ 58,797 $ 52,839 Raw materials 7,361 9,042 Work in process 6,286 5,129 Total inventory $ 72,444 $ 67,010 As a result of our decision not to proceed with our direct-to-consumer security and home automation solution product offering and associated services , “ Selling, general and administrative expenses ” of our EchoStar Technologies segment for the year ended December 31, 2016 includes a $9.3 million |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: Depreciable Life (In Years) As of December 31, 2016 2015 (In thousands) Land — $ 42,363 $ 41,457 Buildings and improvements 1-40 370,980 367,947 Furniture, fixtures, equipment and other 1-12 1,372,158 1,254,325 Customer rental equipment 2-4 689,579 588,430 Satellites - owned 2-15 2,381,120 2,381,120 Satellites acquired under capital leases 10-15 781,761 665,518 Construction in progress — 1,438,812 1,112,267 Total property and equipment 7,076,773 6,411,064 Accumulated depreciation (3,407,470 ) (2,998,074 ) Property and equipment, net $ 3,669,303 $ 3,412,990 As of December 31, 2016 and 2015 , accumulated depreciation included amounts for satellites acquired under capital leases of $328.2 million and $268.1 million , respectively. In December 2015, we recognized an impairment loss of $2.4 million related to certain building and equipment in our EchoStar Technologies segment. Construction in progress consisted of the following: As of December 31, 2016 2015 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 1,235,577 $ 963,103 Satellite related equipment 168,929 126,373 Other 34,306 22,791 Construction in progress $ 1,438,812 $ 1,112,267 Construction in progress included the following owned and leased satellites under construction or undergoing in-orbit testing as of December 31, 2016 . Satellites Segment Expected Launch Date EchoStar XIX Other (3) Fourth quarter of 2016 (1) EchoStar XXI Other Second or third quarter of 2017 EchoStar XXIII Other First quarter of 2017 EchoStar 105/SES-11 ESS Second quarter of 2017 Telesat T19V (“63 West”) (2) Hughes Second quarter of 2018 (1) This satellite was launched in December 2016 and is expected to be placed into service late in the first quarter of 2017. (2) We entered into a satellite services agreement for certain capacity on this satellite once launched, but are not party to the construction contract. (3) EchoStar contributed the EchoStar XIX satellite to its Hughes segment in February 2017. We recorded capitalized interest related to our satellites, satellite payloads and related ground facilities under construction of $94.4 million , $63.8 million and $23.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Depreciation expense associated with our property and equipment consisted of the following: For the Years Ended December 31, 2016 2015 2014 (In thousands) Satellites $ 191,729 $ 197,469 $ 210,763 Furniture, fixtures, equipment and other 118,082 135,536 123,360 Customer rental equipment 114,568 105,725 116,685 Buildings and improvements 12,275 13,513 13,734 Total depreciation expense $ 436,654 $ 452,243 $ 464,542 Satellites depreciation expense includes amortization of satellites under capital lease agreements of $56.2 million , $56.2 million and $59.7 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Satellites As of December 31, 2016 , we utilized in support of our operations, 18 of our owned and leased satellites in geosynchronous orbit, approximately 22,300 miles above the equator. We depreciate our owned satellites on a straight-line basis over the estimated useful life of each satellite. Three of our satellites are accounted for as capital leases and are depreciated on a straight-line basis over their respective lease terms. We utilized one satellite that is accounted for as an operating lease and not included in property and equipment as of December 31, 2016 . Our operating satellite fleet consists of both owned and leased satellites detailed in the table below as of December 31, 2016 . Satellites Segment Launch Date Nominal Degree Orbital Location (Longitude) Depreciable Life (In Years) Owned: SPACEWAY 3 (1) Hughes August 2007 95 W 12 EchoStar XVII Hughes July 2012 107 W 15 EchoStar I (2)(3)(4) ESS December 1995 77 W — EchoStar III (4) ESS October 1997 61.5 W 12 EchoStar VI (4) ESS July 2000 96.2 W 12 EchoStar VII (2)(3) ESS February 2002 119 W 3 EchoStar VIII (2)(4) ESS August 2002 77 W 12 EchoStar IX (2)(4) ESS August 2003 121 W 12 EchoStar X (2)(3) ESS February 2006 110 W 7 EchoStar XI (2)(3) ESS July 2008 110 W 9 EchoStar XII (2)(4)(5) ESS July 2003 61.5 W 2 EchoStar XIV (2)(3) ESS March 2010 119 W 11 EchoStar XVI (2) ESS November 2012 61.5W 15 EUTELSAT 10A (“W2A”) (6) Other April 2009 10 E — Capital Leases: Nimiq 5 (2) ESS September 2009 72.7 W 15 QuetzSat-1 (2) ESS September 2011 77 W 10 Eutelsat 65 West A Hughes March 2016 65 W 15 Operating Lease: AMC-15 ESS October 2004 105 W — (1) Depreciable life represents the remaining useful life as of June 8, 2011, the date EchoStar completed its acquisition of Hughes Communications, Inc. and its subsidiaries. (2) See Note 19 for discussion of related party transactions with DISH Network. (3) Depreciable life represents the remaining useful life as of March 1, 2014, the effective date of our receipt of the satellites from DISH Network as part of the Satellite and Tracking Stock Transaction (See Note 4 ). (4) Fully depreciated assets. (5) Depreciable life represents the remaining useful life as of June 30, 2013, the date the EchoStar XII satellite was impaired. (6) The Company acquired the S-band payload on this satellite, which prior to the acquisition in December 2013, experienced an anomaly at the time of the launch. As a result, the S-band payload is not fully operational. Recent Developments EchoStar XIX . The EchoStar XIX satellite was launched in December 2016 and we expect the satellite to be placed into service late in the first quarter of 2017. We expect the EchoStar XIX satellite to provide additional capacity for the Hughes broadband services to our customers in North America and added capacity in Mexico and certain Latin American countries and to add capability for aeronautical, enterprise and international broadband services. EchoStar contributed the EchoStar XIX satellite to its Hughes segment in February 2017. Eutelsat 65 West A. The Eutelsat 65 West A satellite was launched in March 2016 and our Hughes segment began to offer consumer broadband services in Brazil using our leased Ka-band payload on the satellite in July 2016. EchoStar XXI and EchoStar XXIII. Due to anomalies experienced by our launch providers, the launch dates of our EchoStar XXI and EchoStar XXIII satellites were delayed with expected launch dates in the second or third quarter of 2017 and the first quarter of 2017, respectively. We are in the process of evaluating the implications of these delays, including, without limitation, potential increased costs, regulatory and contractual milestone compliance and other satellite resource allocations. We had regulatory obligations to meet certain milestones by the fourth quarter of 2016 regarding the operations of the EchoStar XXI satellite across the European Union. We have notified the regulators in the EU of our delay and we intend to seek extensions of certain of these requirements to the extent we determine necessary. Although we anticipate being able to receive them, any such necessary extensions may be subject to additional conditions, penalties or other requirements. We also have regulatory obligations to meet certain in-service milestones by the second quarter of 2017 for our Brazilian license at 45 degree west longitude for the Ka-, Ku- and S-band frequency bands. We currently expect to meet our regulatory milestone for the Ku-band. We have sought an extension of the S- and Ka-band milestones, which may or may not be granted, and, if granted, may be subject to penalties, additional conditions or other requirements. EchoStar 105/SES-11. Due to anomalies experienced by our launch provider, the expected launch date of our EchoStar 105/SES-11 satellite has been delayed until the second quarter of 2017. Our Ku-band payload on the EchoStar 105/SES-11 satellite will replace our current capacity on the AMC-15 satellite. AMC-15 and AMC-16. In August 2014, in connection with the execution of agreements related to the EchoStar 105/SES-11 satellite, we entered into amendments that extend the terms of our existing agreements with SES Americom Colorado, Inc. (“SES”) for satellite services on the AMC-15 and AMC-16 satellites. As amended, the term of our agreement for satellite services on certain transponders on the AMC-15 satellite was extended from December 2014 through a certain period following the in-service date of the EchoStar 105/SES-11 satellite and is being accounted for as an operating lease. The amended agreement for the AMC-16 satellite services extended the term for the satellite’s entire communications capacity, subject to available power, for one year following expiration of the initial term in February 2015 and the agreement terminated according to its terms in February 2016. As a result of anomalies that affected the operation of the AMC-15 and AMC-16 satellites, our monthly recurring payments were reduced under the related capital lease agreements during the year ending December 31, 2015. We have accounted for these lease modifications generally by reducing the carrying amounts of the satellite and related capital lease obligation by the present value of the payment reduction. In such instances where the carrying amount of the satellite had been reduced to zero as a result of accumulated depreciation or impairments, we have recognized the reductions in the capital lease obligations as gains in “ Other, net ” in our consolidated statements of operations and comprehensive income (loss) . For the years ended December 31, 2016 , 2015 and 2014 , we recognized such gains of zero , $4.5 million and zero , respectively. Satellite Anomalies and Impairments Our satellites may experience anomalies from time to time, some of which may have a significant adverse impact on their remaining useful lives, the commercial operation of the satellites or our operating results. We are not aware of any anomalies with respect to our owned or leased satellites that have had any such material adverse effect during the year ended December 31, 2016 . There can be no assurance, however, that anomalies will not have any such adverse impacts in the future. In addition, there can be no assurance that we can recover critical transmission capacity in the event one or more of our in-orbit satellites were to fail. We historically have not carried in-orbit insurance on our satellites because we assessed that the cost of insurance was uneconomical relative to the risk of failures. Therefore, we generally bear the risk of any in-orbit failures. Pursuant to the terms of the agreements governing certain portions of our indebtedness, we are required, subject to certain limitations on coverage, to maintain in-orbit insurance for our SPACEWAY 3, EchoStar XVI, and EchoStar XVII satellites. Based on economic analysis of the current insurance market we have elected to obtain, subject to certain limitations on coverage, launch and in-orbit insurance for our EchoStar XIX, EchoStar XXI and EchoStar XXIII satellites and our interest in the EchoStar 105/SES-11 satellite. All other satellites, either in orbit or under construction, are not covered by launch or in-orbit insurance. We will continue to assess circumstances going forward and make insurance decisions on a case by case basis. We evaluate our satellites for impairment and test for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Certain of the anomalies previously disclosed, may be considered to represent a significant adverse change in the physical condition of a particular satellite. However, based on the redundancy designed within each satellite, certain of these anomalies are not necessarily considered to be significant events that would require a test of recoverability. |
Goodwill, Regulatory Authorizat
Goodwill, Regulatory Authorizations and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Regulatory Authorizations and Other Intangible Assets | Goodwill, Regulatory Authorizations and Other Intangible Assets Goodwill The excess of the cost of an acquired business over the fair values of net tangible and identifiable intangible assets at the time of the acquisition is recorded as goodwill. Goodwill is assigned to the reporting units within our operating segments and is subject to impairment testing annually, or more frequently when events or changes in circumstances indicate the fair value of a reporting unit is more likely than not less than its carrying amount. As of December 31, 2016 and 2015, approximately $504.2 million of our goodwill was assigned to reporting units of our Hughes segment and $6.4 million was assigned to our OTT, SVOD platform business reporting unit of our EchoStar Technologies segment. We test this goodwill for impairment annually for the Hughes and EchoStar Technologies segments in the second quarter and third quarter, respectively. Based on our qualitative assessment of impairment of our Hughes segment goodwill in the second quarter of 2016 , we determined that it was not more likely than not that the fair values of the Hughes segment reporting units were less than the corresponding carrying amounts, including goodwill. Regulatory Authorizations Regulatory authorizations included amounts with finite and indefinite useful lives, as follows: As of Additions Currency Translation Adjustment As of (In thousands) Finite useful lives: Cost $ 82,007 $ — $ 5,952 $ 87,959 Accumulated amortization (9,852 ) (4,685 ) (446 ) (14,983 ) Net 72,155 (4,685 ) 5,506 72,976 Indefinite lives 471,657 — — 471,657 Total regulatory authorizations, net $ 543,812 $ (4,685 ) $ 5,506 $ 544,633 Amortization expense for the regulatory authorizations with finite lives was $4.7 million , $4.7 million and $6.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Other Intangible Assets Our other intangible assets, which are subject to amortization, consisted of the following: Weighted Average Useful Life (in Years) As of December 31, 2016 2015 Cost Accumulated Amortization Carrying Amount Cost Accumulated Amortization Carrying Amount (In thousands) Customer relationships 8 $ 293,932 $ (238,176 ) $ 55,756 $ 293,932 $ (213,543 ) $ 80,389 Contract-based 4 69,440 (69,440 ) — 255,366 (251,493 ) 3,873 Technology-based 7 137,197 (125,908 ) 11,289 137,337 (111,840 ) 25,497 Trademark portfolio 20 29,700 (8,291 ) 21,409 29,700 (6,806 ) 22,894 Total other intangible assets $ 530,269 $ (441,815 ) $ 88,454 $ 716,335 $ (583,682 ) $ 132,653 Customer relationships are amortized predominantly in relation to the expected contribution of cash flow to the business over the life of the intangible asset. Other intangible assets are amortized on a straight-line basis over the periods the assets are expected to contribute to our cash flows. Intangible asset amortization expense, including amortization of regulatory authorizations with finite lives and externally marketed capitalized software, was $58.4 million , $75.9 million and $92.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Future Amortization As of December 31, 2016 , our estimated future amortization of intangible assets, including regulatory authorizations with finite lives, was as follows: Amount (In thousands) For the Years Ending December 31, 2017 $ 30,253 2018 22,538 2019 21,324 2020 15,988 2021 9,350 Thereafter 65,997 Total $ 165,450 |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Debt and Capital Lease Obligations | Debt and Capital Lease Obligations As of December 31, 2015 , our debt primarily consisted of the 2019 Senior Secured Notes and the 2021 Senior Unsecured Notes, each as defined below, and our capital lease obligations. As of December 31, 2016, our debt also included the 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes, each as defined below, which were issued in July 2016. The following table summarizes the carrying amounts and fair values of our debt: Effective Interest Rate As of December 31, 2016 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ 990,000 $ 1,084,050 $ 990,000 $ 1,071,675 5 1/4% Senior Secured Notes due 2026 5.316% 750,000 739,688 — — Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 990,189 900,000 954,000 6 5/8% Senior Unsecured Notes due 2026 6.685% 750,000 760,245 — — Other — — 803 803 Less: Unamortized debt issuance costs (31,821 ) — (31,276 ) — Subtotal 3,358,179 $ 3,574,172 1,859,527 $ 2,026,478 Capital lease obligations 302,007 332,838 Total debt and capital lease obligations 3,660,186 2,192,365 Less: Current portion (37,307 ) (35,698 ) Long-term debt and capital lease obligations, net of unamortized debt issuance costs $ 3,622,879 $ 2,156,667 The fair values of our debt are estimates categorized within Level 2 of the fair value hierarchy. 2019 Senior Secured Notes and 2021 Senior Unsecured Notes On June 1, 2011, HSS issued $1.10 billion aggregate principal amount of 6 1/2% Senior Secured Notes due 2019 (the “2019 Senior Secured Notes”) at an issue price of 100.0% , pursuant to a Secured Indenture dated June 1, 2011, (as amended the “2011 Secured Indenture”). The 2019 Senior Secured Notes mature on June 15, 2019. Interest accrues at an annual rate of 6 1/2% and is payable semi-annually in cash, in arrears on June 15 and December 15 of each year. As of December 31, 2016 and 2015, the outstanding principal balance on the 2019 Senior Secured Notes was $990.0 million . On June 1, 2011, HSS also issued $900.0 million aggregate principal amount of 7 5/8% Senior Unsecured Notes due 2021 (the “2021 Senior Unsecured Notes,”) at an issue price of 100.0% , pursuant to an Unsecured Indenture dated June 1, 2011 (together with the “2011 Secured Indenture”, the “2011 Indentures”). The 2021 Senior Unsecured Notes mature on June 15, 2021. Interest accrues at an annual rate of 7 5/8% and is payable semi-annually in cash, in arrears on June 15 and December 15 of each year. As of December 31, 2016 and 2015, the outstanding principal balance on the 2021 Senior Unsecured Notes was $900.0 million . On June 12, 2015, we redeemed $110.0 million of the 2019 Senior Secured Notes at a redemption price equal to 103.0% of the principal amount plus accrued and unpaid interest. As a result, we recorded a $5.0 million loss consisting of the $3.3 million redemption premium and a $1.7 million write-off of related unamortized debt issuance costs . 2026 Senior Secured Notes and 2026 Senior Unsecured Notes On July 27, 2016, HSS issued $750 million aggregate principal amount of 5 1/4% Senior Secured Notes due 2026 (the “2026 Senior Secured Notes” and, together with the 2019 Senior Secured Notes, the “Secured Notes”) at an issue price of 100.0% , pursuant to an indenture dated July 27, 2016 (the “2016 Secured Indenture”) and $750 million aggregate principal amount of 6 5/8% Senior Unsecured Notes due 2026 (the “2026 Senior Unsecured Notes” and, together with the 2021 Senior Unsecured Notes, the “Unsecured Notes”) at an issue price of 100.0% , pursuant to an indenture dated July 27, 2016 (together with the 2011 Indentures and the 2016 Secured Indenture, the “Indentures”). The 2019 Senior Secured Notes, the 2021 Senior Unsecured Notes, the 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes are referred to collectively as the “Notes” and individually as a series of the Notes. The 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes (collectively, the “2026 Notes”) mature on August 1, 2026. Interest on the 2026 Senior Secured Notes accrues at an annual rate of 5 1/4% and interest on the 2026 Senior Unsecured Notes accrues at an annual rate of 6 5/8%. Interest on the 2026 Notes is payable semi-annually in cash, in arrears on February 1 and August 1 of each year commencing February 1, 2017. As of December 31, 2016, the outstanding principal balance on each of the 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes was $750.0 million . Additional Information Relating to the Notes Each series of the Notes is redeemable, in whole or in part, at any time at a redemption price equal to 100.0% of the principal amount thereof plus a “make-whole” premium, as defined in the applicable Indenture, together with accrued and unpaid interest, if any, to the date of redemption. HSS may also redeem up to 10% of the outstanding 2026 Senior Secured Notes per year prior to August 1, 2020 at a redemption price equal to 103% of the principal amount thereof plus accrued and unpaid interest to the date of redemption. In addition, HSS may, at any time prior to August 1, 2019, with the net cash proceeds from certain equity offerings or capital contributions, redeem up to 35% of the 2026 Senior Secured Notes, at 105.250% of the principal amount, and up to 35% of the 2026 Senior Unsecured Notes, at a redemption price equal to 106.625% of the principal amount plus, in each case, accrued and unpaid interest on the 2026 Notes being redeemed to the date of redemption. The Secured Notes are: • secured obligations of HSS; • secured by security interests in substantially all existing and future tangible and intangible assets of HSS and certain of its subsidiaries on a first priority basis, subject to certain exceptions; • ranked equally and ratably as between the 2019 Senior Secured Notes and the 2026 Senior Secured Notes; • effectively junior to HSS’ obligations that are secured by assets that are not part of the collateral that secures the respective Secured Notes, in each case, to the extent of the value of the collateral securing such obligations; • effectively senior to HSS’ existing and future unsecured obligations to the extent of the value of the collateral securing the respective Secured Notes, after giving effect to permitted liens as provided in the Indenture governing the respective Secured Notes; • senior in right of payment to all existing and future obligations of HSS that are expressly subordinated to the respective Secured Notes; • structurally junior to any existing and future obligations of any of HSS’ subsidiaries that do not guarantee the respective Secured Notes; and • unconditionally guaranteed, jointly and severally, on a general senior secured basis by certain of our HSS’ subsidiaries, which guarantees rank equally with all of the guarantors’ existing and future unsubordinated indebtedness and effectively senior to such guarantors’ existing and future obligations to the extent of the value of the assets securing the respective Secured Notes. The Unsecured Notes are: • unsecured senior obligations of HSS; • ranked equally with all existing and future unsubordinated indebtedness (including as between the 2021 Senior Unsecured Notes and the 2026 Senior Unsecured Notes) and effectively junior to any secured indebtedness up to the value of the assets securing such indebtedness; • effectively junior to HSS’ obligations that are secured to the extent of the value of the collateral securing such obligations; • senior in right of payment to all existing and future obligations of HSS that are expressly subordinated to the respective Unsecured Notes; • structurally junior to any existing and future obligations of any of HSS’ subsidiaries that do not guarantee the respective Unsecured Notes; and • unconditionally guaranteed, jointly and severally, on a general senior secured basis by certain of HSS’ subsidiaries, which guarantees rank equally with all of the guarantors’ existing and future unsubordinated indebtedness, and effectively junior to any secured indebtedness of the guarantors up to the value of the assets securing such indebtedness. Subject to certain exceptions, the Indentures contain restrictive covenants that, among other things, impose limitations on HSS’ ability and, in certain instances, the ability of certain of HSS’ subsidiaries to: • incur additional debt; • pay dividends or make distributions on HSS’ capital stock or repurchase HSS’ capital stock; • make certain investments; • create liens or enter into sale and leaseback transactions; • enter into transactions with affiliates; • merge or consolidate with another company; • transfer and sell assets; and • allow to exist certain restrictions on the ability of certain of HSS’ subsidiaries to pay dividends, make distributions, make other payments, or transfer assets to HSS or its subsidiaries. In the event of a Change of Control, as defined in the respective Indentures, HSS would be required to make an offer to repurchase all or any part of a holder’s Notes at a purchase price equal to 101.0% of the aggregate principal amount thereof, together with accrued and unpaid interest to the date of repurchase. The Indentures provide for customary events of default for each series of the Notes, including, among other things, nonpayment, breach of the covenants in the applicable Indentures, payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy, insolvency and reorganization. If any event of default occurs and is continuing with respect to any series of the Notes, the trustee or the holders of at least 25% in principal amount of the then outstanding Notes of such series may declare all the Notes of such series to be due and payable immediately, together with any accrued and unpaid interest. Under the terms of a registration rights agreement, HSS agreed to register under the Securities Act of 1933, as amended, notes having substantially identical terms as the 2026 Notes as part of an offer to exchange freely tradable exchange notes for the 2026 Notes that is required to be declared effective by July 27, 2017. In the event that the registration statement is not declared effective by July 27, 2017 and under certain other conditions (a “registration default”), we are required to pay each holder of the 2026 Notes additional interest up to $0.25 per week per $1,000 in principal amount of the 2026 Notes until the registration default is cured. Debt Issuance Costs As of January 1, 2016 we adopted ASU 2015-3 (see Note 2 ). As a result, we report unamortized debt issuance costs in “ Long-term debt and capital lease obligations, net of unamortized debt issuance costs ” in our consolidated balance sheets retrospectively. In connection with the issuance of the 2026 Notes, we incurred $7.1 million of debt issuance costs. For the years ended December 31, 2016 , 2015 and 2014 , we amortized $6.6 million , $6.0 million and $5.8 million of debt issuance costs, respectively, which are included in “ Interest expense, net of amounts capitalized ” in our consolidated statements of operations and comprehensive income (loss) . Capital Lease Obligations Our capital lease obligations reflect the present value of future minimum lease payments under noncancelable lease agreements, primarily for certain of our satellites (see Note 9 ). These agreements require monthly recurring payments, which generally include principal, interest, an amount for use of the orbital location and estimated executory costs, such as insurance and maintenance. The monthly recurring payments generally are subject to reduction in the event of failures that reduce the satellite transponder capacity. Certain of these agreements provide for extension of the initial lease term at our option. The effective interest rates for our satellite capital lease obligations range from 9.1% to 11.2% , with a weighted average of 10.6% as of December 31, 2016 . Our capital lease obligations consist primarily of our payment obligations under agreements for the Nimiq 5 and QuetzSat-1 satellites, which have remaining noncancelable terms ending in September 2024 and November 2021, respectively. As discussed in Note 19 , we have subleased transponders on these satellites to DISH Network. Future minimum lease payments under our capital lease obligations, together with the present value of the net minimum lease payments as of December 31, 2016 , are as follows: Amount (In thousands) For the Years Ending December 31, 2017 $ 93,092 2018 88,923 2019 88,221 2020 88,033 2021 83,995 Thereafter 174,240 Total minimum lease payments 616,504 Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments (188,216 ) Net minimum lease payments 428,288 Less: Amount representing interest (126,281 ) Present value of net minimum lease payments 302,007 Less: Current portion (37,307 ) Long-term portion of capital lease obligations $ 264,700 We received rental income from the sublease of our capital lease satellites of approximately $132.4 million for each of the years ended December 31, 2016 , 2015 and 2014 . As of December 31, 2016 , our future minimum sublease rental income was $480.9 million relating to such satellites. The subleases have a remaining weighted average term of four years |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes are as follows: For the Years Ended December 31, 2016 2015 2014 (In thousands) Domestic $ 313,203 $ 224,058 $ 172,276 Foreign (26,359 ) (2,486 ) 6,057 Income before income taxes $ 286,844 $ 221,572 $ 178,333 The components of the provision for income taxes are as follows: For the Years Ended December 31, 2016 2015 2014 (In thousands) Current benefit (provision): Federal $ (4,788 ) $ (165 ) $ (2,593 ) State (305 ) (9,601 ) 9,006 Foreign (2,911 ) (6,303 ) (5,455 ) Total current benefit (provision) (8,004 ) (16,069 ) 958 Deferred benefit (provision): Federal (93,681 ) (62,572 ) (31,905 ) State (10,023 ) 4,818 (1,283 ) Foreign 5,556 1,622 1,446 Total deferred provision (98,148 ) (56,132 ) (31,742 ) Total income tax provision, net $ (106,152 ) $ (72,201 ) $ (30,784 ) The actual tax provisions for the years ended December 31, 2016 , 2015 and 2014 reconcile to the amounts computed by applying the statutory federal tax rate to income before income taxes as shown below: For the Years Ended December 31, 2016 2015 2014 Statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of Federal benefit 4.6 % 2.1 % (0.2 )% Permanent differences 3.2 % 3.6 % 0.6 % Tax credits (6.2 )% (10.1 )% (18.6 )% Valuation allowance — % 2.8 % (0.9 )% Other 0.4 % (0.8 )% 1.4 % Total effective tax rate 37.0 % 32.6 % 17.3 % The components of our deferred tax assets and liabilities are as follows: As of December 31, 2016 2015 (In thousands) Deferred tax assets: Net operating losses, credit and other carryforwards $ 178,925 $ 315,924 Unrealized losses on investments, net 47,737 47,678 Accrued expenses 39,596 34,037 Stock-based compensation 14,389 13,345 Other assets 15,008 9,534 Total deferred tax assets 295,655 420,518 Valuation allowance (75,372 ) (72,131 ) Deferred tax assets after valuation allowance 220,283 348,387 Deferred tax liabilities: Depreciation and amortization (962,838 ) (993,326 ) Other liabilities (1,319 ) (1,412 ) Total deferred tax liabilities (964,157 ) (994,738 ) Total net deferred tax liabilities $ (743,874 ) $ (646,351 ) Noncurrent portion of net deferred tax liabilities $ (743,874 ) $ (646,351 ) Total net deferred tax liabilities $ (743,874 ) $ (646,351 ) Deferred tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We evaluate our deferred tax assets for realization and record a valuation allowance when we determine that it is more likely than not that the amounts will not be realized. Overall, our net deferred tax assets were offset by a valuation allowance of $75.4 million and $72.1 million as of December 31, 2016 and 2015 , respectively. The change in the valuation allowance primarily relates to an increase in the net operating loss carryforwards of certain foreign subsidiaries. Tax benefits of net operating loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and other circumstances. As of December 31, 2016 , we had net operating loss carryforwards of $351.3 million , including $115.9 million of foreign net operating loss carryforwards. A substantial portion of these net operating loss carryforwards will begin to expire in 2029. As of December 31, 2016 , we have tax credit carryforwards of $117.1 million and $52.6 million for federal and state income tax purposes, respectively. If not utilized, the federal tax credit carryforwards will begin to expire in 2026 and the state tax credit carryforwards will begin to expire in 2018. Additionally, tax benefits from excess tax deductions attributable to stock-based compensation have resulted in $38.4 million of net operating loss carryforwards that has not been recognized as a credit to additional paid in capital, based on our accounting policy to follow the tax law ordering rules, which assume that stock option deductions are realized when they have been used for tax purposes. In connection with our adoption of ASU 2016-09 (see Note 2), we will recognize a deferred tax asset for the tax benefit of such excess tax deductions with a corresponding credit to retained earnings as of January 1, 2017. As of December 31, 2016 , we had undistributed earnings attributable to foreign subsidiaries for which no provision for U.S. income taxes or foreign withholding taxes has been made because it is expected that such earnings will be reinvested outside the U.S. indefinitely. It is not practicable to determine the amount of the unrecognized deferred tax liability at this time. Accounting for Uncertainty in Income Taxes In addition to filing U.S. federal income tax returns , we file income tax returns in all states that impose an income tax. We also file income tax returns in the United Kingdom, Brazil, India and a number of other foreign jurisdictions. We generally are open to income tax examination in these foreign jurisdictions for taxable years beginning in 2003. As of December 31, 2016 , we are currently being audited by the Indian tax authorities for fiscal years 2003 through 2012. We have no other on-going significant income tax examinations in process in our foreign jurisdictions. A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows: For the Years Ended December 31, Unrecognized tax benefit 2016 2015 2014 (In thousands) Balance as of beginning of period $ 62,366 $ 44,839 $ 43,319 Additions based on tax positions related to the current year 2,132 11,748 3,806 Additions based on tax positions related to prior years 3 5,779 4,643 Reductions based on tax positions related to prior years (734 ) — (81 ) Reductions based on tax settlements (265 ) — (6,848 ) Balance as of end of period $ 63,502 $ 62,366 $ 44,839 As of December 31, 2016 , we had $63.5 million of unrecognized income tax benefits, all of which, if recognized, would affect our effective tax rate. As of December 31, 2015 , we had $62.4 million of unrecognized income tax benefits, all of which, if recognized, would affect our effective tax rate. We do not believe that the total amount of unrecognized income tax benefits will significantly increase or decrease within the next twelve months due to the lapse of statute of limitations or settlement with tax authorities. For the years ended December 31, 2016 , 2015 and 2014 , our income tax provision included an insignificant amount of interest and penalties. Estimates of our uncertain tax positions are made based upon prior experience and are updated in light of changes in facts and circumstances. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in liabilities which could be materially different from these estimates. In such an event, we will record additional income tax provision or benefit in the period in which such resolution occurs. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock Our board of directors is authorized to divide the preferred stock into series and, with respect to each series, to determine the preferences and rights and the qualifications, limitations or restrictions of the series, including the dividend rights, conversion rights, voting rights, redemption rights and terms, liquidation preferences, sinking fund provisions, the number of shares constituting the series, and the designation of such series. Our board of directors may, without stockholder approval, issue additional preferred stock of existing or new series with voting and other rights that could adversely affect the voting power of the holders of common stock and could have certain anti-takeover effects. In February 2014, our board of directors authorized 13,000,000 shares of Hughes Retail Preferred Tracking Stock with a par value of $0.001 per share, of which 6,290,499 shares were issued to DISH Network on March 1, 2014 and remain outstanding as of December 31, 2016 . See Note 4 for a discussion of the Hughes Retail Preferred Tracking Stock. Common Stock Our Class A, Class B, and Class C common stock are equivalent except for voting rights. Holders of Class A and Class C common stock are entitled to one vote per share and holders of Class B common stock are entitled to 10 votes per share. Upon a change in control of the Company, each holder of outstanding shares of Class C common stock is entitled to 10 votes for each share of Class C common stock held. Each share of Class B and Class C common stock is convertible, at the option of the holder, into one share of Class A common stock. Our principal stockholder owns the majority of all outstanding Class B common stock and, together with all other stockholders, owns outstanding Class A common stock. There are no shares of Class C common stock outstanding. Any holder of Class D common stock is not entitled to a vote on any matter or to convert the shares of Class D common stock into any other class of common stock. There are no shares of Class D common stock outstanding. Each share of common stock is entitled to receive its pro rata share, based upon the number of shares of common stock held, of dividends and distributions upon liquidation. Common Stock Repurchase Program Pursuant to a stock repurchase program approved by our board of directors, we are authorized to repurchase up to $500.0 million of our outstanding shares of Class A common stock through and including December 31, 2017. For the years ended December 31, 2016 , 2015 and 2014 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Employee Stock Purchase Plan We have an employee stock purchase plan (the “ESPP”), under which we are authorized to issue 2.5 million shares of Class A common stock. As of December 31, 2016 , we had 0.4 million shares of Class A common stock which remain available for issuance under this plan. Substantially all full-time employees who have been employed by us for at least one calendar quarter are eligible to participate in the ESPP. Employee stock purchases are made through payroll deductions. Under the terms of the ESPP, each employee’s deductions are limited so that the maximum they may purchase under the ESPP is $25,000 in fair value of Class A common stock per year. Stock purchases are made on the last business day of each calendar quarter at 85.0% of the closing price of the Class A common stock on that date. For the years ended December 31, 2016 , 2015 and 2014 , employee purchases of Class A common stock through the ESPP totaled approximately 383,000 shares, 362,000 shares and 283,000 shares, respectively. 401(k) Employee Savings Plans Under the EchoStar 401(k) Plan (“the Plan”), eligible employees are entitled to contribute up to 75.0% of their compensation subject to the maximum limit provided by the Internal Revenue Code of 1986, as amended (the “Code”). Eligible employees have the option to make after-tax contributions to the Plan so that they may contribute up to 75% of their compensation on a pre-tax and/or after-tax basis subject to the Code limits. All employee contributions to the Plan are immediately vested. The Company matches 50 cents on the dollar for the first 6.0% of each employee’s salary contributions to the Plan for a total of 3.0% match on a pre-tax basis up to a maximum of $7,500 annually. The Company match is calculated each pay period there is an employee contribution. In addition, the Company may make an annual discretionary contribution to the 401(k) plan to be made in cash or our stock. Company contributions under the Plan vest at 20.0% per year and are 100.0% vested after an eligible employee has completed five years of employment. Forfeitures of unvested participant balances may be used to fund matching and discretionary contributions. For the years ended December 31, 2016 , 2015 and 2014 , we recognized matching contributions, net of forfeitures, of $7.8 million , $7.4 million and $6.8 million , respectively, and made discretionary contributions of shares of our Class A common stock, net of forfeitures, with a fair value of $10.9 million , $10.4 million and $10.2 million , respectively (approximately 284,500 , 204,000 and 207,000 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Incentive Plans We maintain stock incentive plans to attract and retain officers, directors and key employees. Stock awards under these plans include both performance-based and non-performance based stock incentives. As of December 31, 2016 , we had outstanding under these plans, stock options to acquire approximately 6.0 million shares of our Class A common stock and 6,667 restricted stock units. Stock options granted prior to and on December 31, 2016 were granted with exercise prices equal to or greater than the market value of our Class A common stock at the date of grant and generally with a maximum term of ten years . While generally we issue stock awards subject to vesting, typically over three to five years , some stock awards have been granted with immediate vesting and other stock awards vest only upon the achievement of certain performance objectives. As of December 31, 2016 , we had 3.8 million shares of our Class A common stock available for future grant under our stock incentive plans. Exercise prices for stock options outstanding and exercisable as of December 31, 2016 are as follows: Options Outstanding Options Exercisable Price Range Number Outstanding as of December 31, 2016 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price Number Exercisable as of December 31, 2016 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price $0.00 - $20.00 196,834 3 $ 17.93 196,834 3 $ 17.93 $20.01 - $25.00 489,947 3 $ 20.26 489,947 3 $ 20.26 $25.01 - $30.00 163,013 3 $ 27.80 128,013 3 $ 28.12 $30.01 - $35.00 365,000 6 $ 34.22 338,000 6 $ 34.22 $35.01 - $40.00 2,528,369 6 $ 38.07 1,811,969 5 $ 37.74 $40.01 - $45.00 415,500 9 $ 43.93 2,000 9 $ 43.83 $45.01 - $50.00 981,100 8 $ 47.47 392,500 7 $ 47.51 $50.01 and over 829,000 8 $ 51.90 191,800 8 $ 51.98 5,968,763 7 $ 39.30 3,551,063 5 $ 35.40 Stock Award Activity Our stock option activity was as follows: For the Years Ended December 31, 2016 2015 2014 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period 5,893,241 $ 38.38 6,669,614 $ 34.02 6,271,058 $ 30.43 Granted 732,000 $ 41.86 929,000 $ 51.59 1,161,000 $ 47.84 Exercised (453,182 ) $ 28.83 (894,071 ) $ 27.78 (697,544 ) $ 24.87 Forfeited and canceled (203,296 ) $ 45.15 (811,302 ) $ 29.45 (64,900 ) $ 32.65 Total options outstanding, end of period 5,968,763 $ 39.30 5,893,241 $ 38.38 6,669,614 $ 34.02 Performance-based options outstanding, end of period (1) — $ — — $ — 623,100 $ 25.27 Exercisable at end of period 3,551,063 $ 35.40 3,082,241 $ 32.61 3,013,114 $ 29.66 (1) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2005 LTIP below. We realized total tax benefits from stock options exercised of $3.3 million , $7.9 million and $7.2 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Our restricted stock unit activity was as follows: For the Years Ended December 31, 2016 2015 2014 Restricted Stock Units Weighted- Average Grant Date Fair Value Restricted Stock Units Weighted- Average Grant Date Fair Value Restricted Stock Units Weighted- Average Grant Date Fair Value Total restricted stock units outstanding, beginning of period 57,328 $ 42.31 96,768 $ 29.29 121,877 $ 29.93 Granted — $ — 100,000 $ 50.00 — $ — Vested (50,661 ) $ 43.38 (83,992 ) $ 45.72 (22,877 ) $ 33.08 Forfeited and canceled — $ — (55,448 ) $ 27.01 (2,232 ) $ 25.51 Total restricted stock units outstanding, end of period 6,667 $ 34.22 57,328 $ 42.31 96,768 $ 29.29 Restricted Performance Units outstanding, end of period — $ — 33,334 $ 50.00 55,448 $ 27.00 In 2015, we granted 100,000 restricted stock units (“RSUs”). The RSUs vested based on the attainment of certain quarterly company performance criteria for the second, third and fourth quarters of 2015. In 2015, 66,666 of the RSUs vested and in February 2016 the remaining 33,334 RSUs vested. 2005 LTIP. During 2005, DISH Network adopted a long-term, performance-based stock incentive plan (the “2005 LTIP”). The 2005 LTIP provided stock options and RSUs, either alone or in combination, with vesting over seven years at the rate of 10.0% per year during the first four years, and at the rate of 20.0% per year thereafter. In connection with the Spin-off, those stock options and RSUs were converted into EchoStar stock options and RSUs with the same terms and obligations as were provided under the 2005 LTIP. As of December 31, 2014, all outstanding awards under the terms of the 2005 LTIP had satisfied applicable time-based vesting requirements and were subject only to a performance condition that a company-specific goal is achieved by March 31, 2015. In 2015 we determined that the company-specific goal was no longer achievable under the terms of the 2005 LTIP. Accordingly, the 2005 LTIP and all outstanding awards under the terms of the 2005 LTIP were cancelled and terminated during 2015. Stock-Based Compensation Total non-cash, stock-based compensation expense for all of our employees is shown in the following table for the years ended December 31, 2016 , 2015 and 2014 and was assigned to the same expense categories as the base compensation for such employees: For the Years Ended December 31, 2016 2015 2014 (In thousands) Research and development expenses $ 3,003 $ 4,570 $ 2,403 Selling, general and administrative expenses 12,231 17,269 12,280 Total stock-based compensation $ 15,234 $ 21,839 $ 14,683 As of December 31, 2016 , total unrecognized stock-based compensation cost, net of estimated forfeitures, related to our unvested stock awards was $27.1 million . This amount is based on an estimated future forfeiture rate of approximately 2.0% per year and will be recognized over a weighted-average period of approximately two years . Valuation of Stock Options The fair value of each stock option granted for the years ended December 31, 2016 , 2015 and 2014 was estimated at the date of the grant using a Black-Scholes option valuation model. The estimated grant-date fair values and related assumptions were as follows: For the Years Ended December 31, Assumptions: 2016 2015 2014 Risk-free interest rate 1.10% - 1.87% 1.38% - 1.80% 1.72% - 1.85% Volatility factor 27.22% - 27.37% 27.16% - 27.85% 29.05% - 35.02% Expected term of options in years 5.7 - 5.8 5.3 - 5.4 5.2 - 5.3 Weighted-average grant-date fair value $11.15 - $12.49 $12.25 - $15.05 $13.79 - $17.21 We do not currently intend to pay dividends on our common stock and accordingly, the dividend yield used in the Black-Scholes option valuation model was assumed to be zero for all periods. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded stock options which have no vesting restrictions and are fully transferable. Consequently, our estimate of fair value may differ from that determined using other valuation models. Further, the Black-Scholes option valuation model requires the input of subjective assumptions. Changes in the subjective input assumptions can materially affect the fair value estimate. Based on the closing market price of our Class A common stock on December 31, 2016 , the aggregate intrinsic value of our stock options was $72.6 million for options outstanding and $56.9 million for options exercisable as of December 31, 2016 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The following table summarizes our contractual obligations at December 31, 2016 : Payments Due in the Year Ending December 31, Total 2017 2018 2019 2020 2021 Thereafter (In thousands) Long-term debt $ 3,390,000 $ — $ — $ 990,000 $ — $ 900,000 $ 1,500,000 Capital lease obligations 302,007 37,307 36,927 40,370 44,733 46,131 96,539 Interest on long-term debt and capital lease obligations 1,487,583 252,999 248,428 212,318 175,799 136,673 461,366 Satellite-related obligations 732,004 220,421 135,987 63,499 60,479 45,308 206,310 Operating lease obligations 87,558 34,974 14,920 11,484 8,425 7,385 10,370 Purchase and other obligations 105,923 105,923 — — — — — Total $ 6,105,075 $ 651,624 $ 436,262 $ 1,317,671 $ 289,436 $ 1,135,497 $ 2,274,585 “Satellite-related obligations” primarily include payments pursuant to agreements for the construction of the EchoStar XIX, EchoStar XXI, EchoStar XXIII, and EchoStar 105/SES-11 satellites; payments pursuant to launch services contracts and regulatory authorizations; executory costs for our capital lease satellites; costs under satellite service agreements; and in-orbit incentives relating to certain satellites; as well as commitments for long-term satellite operating leases and satellite service arrangements. We incurred satellite-related expenses of $144.2 million , $160.8 million and $178.8 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Our “Purchase and other obligations” primarily consists of binding purchase orders for digital set-top boxes and related components. Our purchase obligations can fluctuate significantly from period to period due to, among other things, management’s control of inventory levels, and can materially impact our future operating asset and liability balances, and our future working capital requirements. The table above does not include amounts related to deferred tax liabilities, unrecognized tax positions and certain other amounts recorded in our noncurrent liabilities as the timing of any payments is uncertain. The table also excludes long-term deferred revenue and other long-term liabilities that do not require future cash payments. In certain circumstances, the dates on which we are obligated to pay our contractual obligations could change. Rent Expense For the years ended December 31, 2016 , 2015 and 2014 , we recorded $24.7 million , $22.0 million and $21.3 million , respectively, of operating lease expense relating to the leases of office space, equipment, and other facilities. Contingencies Patents and Intellectual Property Many entities, including some of our competitors, have or may in the future obtain patents and other intellectual property rights that cover or affect products or services directly or indirectly related to those that we offer. We may not be aware of all patents and other intellectual property rights that our products and services may potentially infringe. Damages in patent infringement cases can be substantial, and in certain circumstances can be trebled. Further, we cannot estimate the extent to which we may be required in the future to obtain licenses with respect to intellectual property rights held by others and the availability and cost of any such licenses. Various parties have asserted patent and other intellectual property rights with respect to components within our direct broadcast satellite (“DBS”) products and services. We cannot be certain that these persons do not own the rights they claim, that these rights are not valid or that our products and services do not infringe on these rights. Further, we cannot be certain that we would be able to obtain licenses from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our products and services to avoid infringement. Separation Agreement In connection with the Spin-off, we entered into a separation agreement with DISH Network that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, we have assumed certain liabilities that relate to our 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, we will only be liable for our acts or omissions following the Spin-off and DISH Network will indemnify us 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. The Share Exchange Agreement contains additional indemnification provisions between us and DISH Network for certain liabilities and legal proceedings that will apply if the Share Exchange is consummated. 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/or 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. We record an accrual for litigation and other loss contingencies when we determine that a loss is probable and the amount of the loss can be reasonably estimated. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made. There can be no assurance that legal proceedings against us will be resolved in amounts that will not differ from the amounts of our recorded accruals. Legal fees and other costs of defending litigation are charged to expense as incurred. For certain cases described below, management is unable to predict with any degree of certainty the outcome or 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 or specified; (iii) damages are unsupported, indeterminate and/or exaggerated in management’s opinion; (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 are involved (as with many patent-related cases). 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, operating results or cash flows, though there is no assurance that the resolution and outcomes of these proceedings, individually or in the aggregate, will not be material to our financial condition, operating results or cash flows for any particular period, depending, in part, upon the operating results for such period. We intend to vigorously defend the proceedings against us. In the event that a court ultimately rules against us, we may be subject to adverse consequences, including, without limitation, substantial damages, which may include treble damages, fines, penalties, compensatory damages and/or other equitable or injunctive relief that could require us to materially modify our business operations or certain products or services that we offer to our consumers. In addition, adverse decisions against DISH Network in the proceedings described below could decrease the number of products and components we sell to DISH Network, which could have a material adverse effect on our business operations and our financial condition, results of operations and cash flows. California Institute of Technology On October 1, 2013, the California Institute of Technology (“Caltech”) filed suit against two of our subsidiaries, Hughes Communications, Inc. and Hughes Network Systems, LLC (“HNS”), as well as against DISH Network, DISH Network L.L.C., and dishNET Satellite Broadband L.L.C., in the United States District Court for the Central District of California alleging infringement of United States Patent Nos. 7,116,710; 7,421,032; 7,916,781; and 8,284,833, each of which is entitled “Serial Concatenation of Interleaved Convolutional Codes forming Turbo-Like Codes.” Caltech asserted that encoding data as specified by the DVB-S2 standard infringes each of the asserted patents. In the operative Amended Complaint, served on March 6, 2014, Caltech claimed that certain of our Hughes segment’s satellite broadband products and services infringed the asserted patents by implementing the DVB-S2 standard. On February 17, 2015, Caltech filed a second complaint in the same district against the same defendants alleging that HNS’ Gen4 HT1000 and HT1100 products infringed the same patents asserted in the first case. On May 25, 2016, we, the DISH Network defendants and Caltech entered into a settlement agreement pursuant to which the Court dismissed with prejudice all of the claims in these actions on May 31, 2016. ClearPlay, Inc. On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against EchoStar Corporation and our subsidiary, EchoStar Technologies L.L.C., as well as against DISH Network and DISH Network L.L.C. in the United States District Court for the District of Utah. The complaint alleges infringement of United States Patent Nos. 6,898,799, entitled “Multimedia Content Navigation and Playback”; 7,526,784, entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318, entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970, entitled “Multimedia Content Navigation and Playback”; and 8,117,282, entitled “Media Player Configured to Receive Playback Filters From Alternative Storage Mediums.” ClearPlay alleges that the AutoHop TM feature of the Hopper TM set-top box infringes the asserted patents. On February 11, 2015, the Court stayed the case pending various third-party challenges before the United States Patent and Trademark Office regarding the validity of certain of the patents ClearPlay asserted in the case. 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 and 318 patents, 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. With the third-party challenges resolved, on October 31, 2016, the stay was lifted and the case has resumed in District Court. No trial date has been set. CRFD Research, Inc. (a subsidiary of Marathon Patent Group, Inc.) On January 17, 2014, CRFD Research, Inc. (“CRFD”) filed a complaint against EchoStar Corporation and our subsidiary, EchoStar Technologies L.L.C., as well as against DISH Network, DISH DBS Corporation and DISH Network L.L.C., in United States District Court for the District of Delaware, alleging infringement of United States Patent No. 7,191,233 (the “233 patent”). The 233 patent is entitled “System for Automated, Mid-Session, User-Directed, Device-to-Device Session Transfer System,” and relates to transferring an ongoing software session from one device to another. CRFD alleges that certain of our set-top boxes infringe the 233 patent. On the same day, CRFD filed patent infringement complaints against AT&T Inc.; Comcast Corp.; DirecTV; Time Warner Cable Inc.; Cox Communications, Inc.; Level 3 Communications, Inc.; Akamai Technologies, Inc.; Cablevision Systems Corp. and Limelight Networks, Inc. On January 26, 2015, we and DISH Network filed a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 233 patent, which was subsequently instituted along with two third-party petitions also challenging the validity of certain claims of the 233 patent. On June 4, 2015, the litigation in the District Court was ordered stayed pending resolution of our petition before the United States Patent and Trademark Office, and on January 16, 2016, the United States Patent and Trademark Office held oral arguments on the merits of the petition. On June 1, 2016, the Patent and Trademark Office found that four of the challenged thirty claims were unpatentable. On July 5, 2016, CRFD filed a notice of appeal to the United States Court of Appeals for the Federal Circuit. CRFD is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. Elbit On January 23, 2015, Elbit Systems Land and C4I LTD and Elbit Systems of America Ltd. (together referred to as “Elbit”) filed a complaint against our subsidiary HNS, as well as against Black Elk Energy Offshore Operations, LLC, Bluetide Communications, Inc. and Helm Hotels Group, in the United States District Court for the Eastern District of Texas, alleging infringement of United States Patent Nos. 6,240,073 (the “073 patent”) and 7,245,874 (“874 patent”). The 073 patent is entitled “Reverse Link for a Satellite Communication Network” and the 874 patent is entitled “Infrastructure for Telephony Network.” Elbit alleges that the 073 patent is infringed by broadband satellite systems that practice the Internet Protocol Over Satellite standard. Elbit alleges that the 874 patent is infringed by the manufacture and sale of broadband satellite systems that provide cellular backhaul service via connections to E1 or T1 interfaces at cellular backhaul base stations. On April 2, 2015, Elbit filed an amended complaint removing Helm Hotels Group as a defendant, but making similar allegations against a new defendant, Country Home Investments, Inc. On November 3 and 4, 2015, and January 22, 2016, the defendants filed petitions before the United States Patent and Trademark Office challenging the validity of the patents in suit, which the Patent and Trademark Office subsequently declined to institute. On April 13, 2016, the defendants answered Elbit’s complaint. Trial is scheduled to commence on July 31, 2017. The Hopper Litigation On May 24, 2012, DISH Network L.L.C., filed suit in the United States District Court for the Southern District of New York against American Broadcasting Companies, Inc. (“ABC”), CBS Corporation (“CBS”), Fox Entertainment Group, Inc., Fox Television Holdings, Inc., Fox Cable Network Services, L.L.C. (collectively, “Fox”) and NBCUniversal Media, LLC (“NBC”). The lawsuit sought a declaratory judgment that DISH Network L.L.C is not infringing any defendant’s copyright, or breaching any defendant’s retransmission consent agreement, by virtue of the PrimeTime Anytime TM and AutoHop TM features of the Hopper TM set-top boxes we design and sell to DISH Network. A consumer can use the PrimeTime Anytime feature at his or her option, to record certain primetime programs airing on ABC, CBS, Fox, and/or NBC up to every night, and to store those recordings for up to eight days. A consumer can use the AutoHop feature at his or her option, to watch certain recordings the subscriber made with our PrimeTime Anytime feature, commercial-free, if played back at a certain point after the show’s original airing. Later on May 24, 2012, (i) Fox Broadcasting Company, Twentieth Century Fox Film Corp. and Fox Television Holdings, Inc. filed a lawsuit against DISH Network and DISH Network L.L.C. (collectively, “DISH”) in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature, the AutoHop feature, as well as DISH’s use of Slingbox unit’s placeshifting functionality infringe their copyrights and breach their retransmission consent agreements, (ii) NBC Studios LLC, Universal Network Television, LLC, Open 4Business Productions LLC and NBCUniversal Media, LLC filed a lawsuit against DISH in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights, and (iii) CBS Broadcasting Inc., CBS Studios Inc. and Survivor Productions LLC filed a lawsuit against DISH in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights. As a result of certain parties’ competing counterclaims and venue-related motions brought in both the New York and California actions, as described below, and certain networks filing various amended complaints, the claims proceeded in the following venues: (1) the copyright and contract claims regarding the ABC and CBS parties in New York; and (2) the copyright and contract claims regarding the Fox and NBC parties in California. California Actions. On August 17, 2012, the NBC plaintiffs filed a first amended complaint in their California action adding EchoStar Corporation and our subsidiary EchoStar Technologies L.L.C. to the NBC litigation, alleging various claims of copyright infringement. Pursuant to a settlement agreement between the parties, on June 16, 2016, the parties filed a stipulation to dismiss with prejudice the NBC action, which was granted on June 20, 2016. In addition, on February 21, 2013, the Fox plaintiffs filed a second motion for preliminary injunction against: (i) DISH Network, seeking to enjoin the Hopper Transfers TM feature in the second-generation Hopper set-top box, alleging breach of a retransmission consent agreement; and (ii) EchoStar Technologies L.L.C. and DISH Network, seeking to enjoin the Slingbox unit’s placeshifting functionality in the second-generation Hopper set-top box, alleging copyright infringement by both defendants, and breach of the earlier-mentioned retransmission consent agreement by DISH Network. On January 12, 2015, the Court entered an order ruling on the parties’ respective summary judgment motions, holding that: (a) the Slingbox unit’s placeshifting functionality and the PrimeTime Anytime, AutoHop and Hopper Transfers features do not violate copyright law; (b) certain quality assurance copies (which were discontinued in November 2012) did violate copyright law; and (c) the Slingbox unit’s placeshifting functionality, the Hopper Transfers feature and certain quality assurance copies breach DISH’s retransmission consent agreement with Fox. Pursuant to a settlement agreement between us, DISH Network and the Fox plaintiffs, on February 10, 2016, we, DISH Network and the Fox plaintiffs filed a stipulation to dismiss with prejudice all of our respective claims pending in the California Court. That motion was granted on February 11, 2016. New York Actions. On October 9, 2012, the ABC plaintiffs filed copyright counterclaims in the New York action against EchoStar Technologies, L.L.C., with the CBS plaintiffs filing similar copyright counterclaims in the New York action against EchoStar Technologies L.L.C. on October 12, 2012. Additionally, the CBS plaintiffs filed a counterclaim alleging that DISH Network fraudulently concealed the AutoHop feature when negotiating the renewal of its CBS retransmission consent agreement. Pursuant to a settlement between us and the ABC parties, during March 2014, the ABC parties withdrew their appeal to the United States Court of Appeals for the Second Circuit; we and the ABC parties filed a stipulation on March 4, 2014 to dismiss without prejudice all of our respective claims pending in the United States District Court for the Southern District of New York; and the ABC parties granted a covenant not to sue. The Court ordered such dismissal on March 6, 2014. Pursuant to a settlement between us and the CBS parties, on December 10, 2014, we and the CBS parties filed a stipulation to dismiss with prejudice all of our respective claims pending in the New York Court. The Court ordered such dismissal on December 10, 2014. These matters related to the Hopper litigation are now concluded. Michael Heskiaoff, Marc Langenohl, and Rafael Mann On July 10, 2015, Messrs. Michael Heskiaoff and Marc Langenohl, purportedly on behalf of themselves and all others similarly situated, filed suit against our subsidiary Sling Media, Inc. in the United States District Court for the Southern District of New York. The complaint alleges that Sling Media Inc.’s display of advertising to its customers violates a number of state statutes dealing with consumer deception. On September 25, 2015, the plaintiffs filed an amended complaint, and Mr. Rafael Mann, purportedly on behalf of himself and all others similarly situated, filed an additional complaint alleging similar causes of action. On November 16, 2015, the cases were consolidated. On August 12, 2016, the Court dismissed the consolidated case due to plaintiffs’ failure to state a claim. On September 12, 2016, the plaintiffs moved the Court for leave to file an amended complaint, which we have opposed. Realtime Data LLC On May 8, 2015, Realtime Data LLC (“Realtime”) filed suit against EchoStar Corporation and our subsidiary HNS in the United States District Court for the Eastern District of Texas alleging infringement of United States Patent Nos. 7,378,992, entitled “Content Independent Data Compression Method and System”; 7,415,530, entitled “System and Methods for Accelerated Data Storage and Retrieval”; and 8,643,513, entitled “Data Compression System and Methods.” On September 14, 2015, Realtime amended its complaint, additionally alleging infringement of United States Patent No. 9,116,908, entitled “System and Methods for Accelerated Data Storage and Retrieval.” Realtime generally alleges that the asserted patents are infringed by certain HNS data compression products and services. Over April 29, 2016 and May 5, 2016, the defendants filed petitions before the United States Patent and Trademark Office challenging the validity of the asserted patents. The United States Patent and Trademark Office has instituted proceedings on each of those petitions, but the litigation has not been stayed. On February 14, 2017, Realtime filed a second suit against EchoStar Corporation and our subsidiary HNS in the same District Court, alleging infringement of four additional United States Patents, Nos. 7,358,867, entitled “Content Independent Data Compression Method and System;” 8,502,707, entitled “Data Compression Systems and Methods;” 8,717,204, entitled “Methods for Encoding and Decoding Data;” and 9,054,728, entitled “Data Compression System and Methods.” The cases have been consolidated and no trial date has been set. Realtime is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. Shareholder Derivative Litigation On December 5, 2012, Greg Jacobi, purporting to sue derivatively on behalf of EchoStar Corporation, filed suit (the “Jacobi Litigation”) against Charles W. Ergen, Michael T. Dugan, R. Stanton Dodge, Tom A. Ortolf, C. Michael Schroeder, Joseph P. Clayton, David K. Moskowitz, and EchoStar Corporation in the United States District Court for the District of Nevada. The complaint alleges that a March 2011 attempted grant of 1.5 million stock options to Charles Ergen breached defendants’ fiduciary duties, resulted in unjust enrichment, and constituted a waste of corporate assets. On December 18, 2012, Chester County Employees’ Retirement Fund, derivatively on behalf of EchoStar Corporation, filed a suit (the “Chester County Litigation”) against Charles W. Ergen, Michael T. Dugan, R. Stanton Dodge, Tom A. Ortolf, C. Michael Schroeder, Anthony M. Federico, Pradman P. Kaul, Joseph P. Clayton, and EchoStar Corporation in the United States District Court for the District of Colorado. The complaint similarly alleges that the March 2011 attempted grant of 1.5 million stock options to Charles Ergen breached defendants’ fiduciary duties, resulted in unjust enrichment, and constituted a waste of corporate assets. On February 22, 2013, the Chester County Litigation was transferred to the District of Nevada, and on April 3, 2013, the Chester County Litigation was consolidated into the Jacobi Litigation. Oral argument on a motion to dismiss the Jacobi Litigation was held February 21, 2014. On April 11, 2014, the Chester County Litigation was stayed pending resolution of the motion to dismiss. On March 30, 2015, the Court dismissed the Jacobi Litigation, with leave for Jacobi to amend his complaint by April 20, 2015. On April 20, 2015, Jacobi filed an amended complaint, which on June 12, 2015, we moved to dismiss. On March 17, 2016, the Court dismissed the amended Jacobi Litigation, and on July 25, 2016, Jacobi filed an appeal brief with the United States Court of Appeals for the Ninth Circuit. Our answering brief was filed on September 22, 2016. Of the attempted grant of 1.5 million options to Mr. Ergen in 2011, only 800,000 were validly granted and remain outstanding. Technology Development and Licensing, LLC On January 22, 2009, Technology Development and Licensing, LLC (“TDL”) filed suit against EchoStar Corporation and DISH Network in the United States District Court for the Northern District of Illinois alleging infringement of United States Patent No. Re. 35,952, which relates to certain favorite channel features. TDL is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. The case has been stayed since July 2009, pending two reexamination petitions before the United States Patent and Trademark Office, which concluded in August 2015 resulting in 42 out of the 53 claims of the 952 patent being invalidated. As a result, the case resumed in August 2015. In a separate matter in which TDL is asserting the same patent, the court in that action ruled that four additional claims of the '952 patent are invalid because they claim unpatentable subject matter, and TDL has stipulated that it will not appeal that order. Only two claims of the ‘952 patent remain asserted against us. A trial date has not been set. TQ Beta LLC On June 30, 2014, TQ Beta LLC (“TQ Beta”) filed suit against DISH Network, DISH DBS Corporation, DISH Network L.L.C., as well as EchoStar Corporation and our subsidiaries, EchoStar Technologies, L.L.C, HSS, and Sling Media, Inc., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 7,203,456 (the “456 patent”), which is entitled “Method and Apparatus for Time and Space Domain Shifting of Broadcast Signals.” TQ Beta alleges that the Hopper, Hopper with Sling, ViP 722 and ViP 722k DVR devices, as well as the DISH Anywhere service and DISH Anywhere mobile application, infringe the 456 patent, but has not specified the amount of damages that it seeks. TQ Beta is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. During August 2015, EchoStar Corporation and DISH Network L.L.C. filed petitions before the United States Patent and Trademark Office challenging the validity of certain claims of the 456 patent, and in February 2016, the United States Patent and Trademark Office agreed to institute proceedings on our petitions. On February 25, 2016, the case was stayed pending resolution of these proceedings before the United States Patent and Trademark Office, and the Court vacated all pending court dates and deadlines. On January 30, 2017, the United States Patent and Trademark Office issued its final written decisions on our petitions, invalidating all claims of the 456 patent that were asserted in the litigation, which decisions may be appealed by TQ Beta. TQ Delta LLC On July 17, 2015, TQ Delta, LLC (“TQ Delta”) filed a complaint against DISH Network, DISH DBS Corporation and DISH Network L.L.C. in the United States District Court for the District of Delaware. On May 16, 2016, TQ Delta filed a second amended complaint that added EchoStar Corporation and EchoStar Technologies L.L.C. as defendants. That complaint alleges infringement of United States Patent No. 6,961,369 (the “369 patent”), which is entitled “System and Method for Scrambling the Phase of the Carriers in a Multicarrier Communications System”; United States Patent No. 8,718,158 (the “158 patent”), which is entitled “System and Method for Scrambling the Phase of the Carriers in a Multicarrier Communications System”; United States Patent No. 9,014,243 (the “243 patent”), which is entitled “System and Method for Scrambling Using a Bit Scrambler and a Phase Scrambler”; United States Patent No.7,835,430 (the “430 patent”), which is entitled “Multicarrier Modulation Messaging for Frequency Domain Received Idle Channel Noise Information”; United States Patent No. 8,238,412 (the “412 patent”), which is entitled “Multicarrier Modulation Messaging for Power Level per Subchannel Information”; United States Patent No. 8,432,956 (the “956 patent”), which is entitled “Multicarrier Modulation Messaging for Power Level per Subchannel Information”; and United States Patent No. 8,611,404 (the “404 patent”), which is entitled “Multicarrier Transmission System with Low Power Sleep Mode and Rapid-On Capability”; and United States Patent No. 9,094,268 (the “268 patent”), which is entitled “Multicarrier Transmission System with Low Power Sleep Mode and Rapid-On Capability.” TQ Delta alleges that satellite TV services, Internet services, set-top boxes, gateways, routers, modems, adapters and networks that operate in accordance with one or more Multimedia over Coax Alliance Standards infringe the asserted patents. TQ Delta has filed actions in the same court alleging infringement of the same patents against Comcast Corp., Cox Communications, Inc., DirecTV, Time Warner Cable Inc. and Verizon Communications, Inc. TQ Delta is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. Trial has been set for November 13, 2017. On July 14, 2016, TQ Delta stipulated to dismiss with prejudice all claims related to the 369 patent and the 956 patent. On July 20, 2016, DISH Network filed petitions with the United States Patent and Trademark Office challenging the validity of all of the patent claims of the 404 patent and 268 patent asserted against it, and other parties have also filed petitions with the United States Patent and Trademark Office challenging the validity of all of the patent claims asserted in the action. On November 4, 2016, the United States Patent and Trademark Office agreed to institute proceedings on the third-party petitions related to the 158 patent, the 243 patent, the 412 patent and the 430 patent. On December 20, 2016, pursuant to a stipulation of the parties, the Court stayed the case until the resolution of all petitions to the United States Patent and Trademark Office challenging the validity of all of the patent claims at issue. On January 19, 2017, the United States Patent and Trademark Office granted our motions to join the instituted petitions on the 430 and 158 patents. On February 9, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petition related to the 404 patent, and on February 13, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petition related to the 268 patent. Two-Way Media Ltd. On February 17, 2016, Two-Way Media Ltd. (“TWM”) filed a complaint against EchoStar Corporation and our subsidiaries, EchoStar Technologies L.L.C., EchoStar Satellite Services L.L.C., and Sling Media, Inc., as well as against DISH Network Corporation, DISH DBS Corporation, DISH Network L.L.C., DISH Network Service L.L.C., Sling TV Holding L.L.C., Sling TV L.L.C., and Sling TV Purchasing L.L.C. TWM brought the suit in the United States District Court for the District of Colorado, alleging infringement of United States Patent Nos. 5,778,187; 5,983,005; 6,434,622; and 7,266,686, each entitled “Multicasting Method and Apparatus”; and 9,124,607, entitled “Methods and Systems for Playing Media.” TWM alleged that the Sling TV, Sling International, DISH Anywhere, and DISHWorld services, as well as the Slingbox units and DISH DVRs incorporating Slingbox technology, infringed the asserted patents. TWM is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. Effective December 8, 2016, we, |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Operating segments are business components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision maker (“CODM”), who for EchoStar is the Company’s Chief Executive Officer. Under this definition, we operate in three primary business segments, Hughes, EchoStar Technologies and ESS as described in Note 1 of these consolidated financial statements. Following consummation of the Share Exchange described in Note 20 of these consolidated financial statements, we will no longer operate the EchoStar Technologies business segment. The primary measure of segment profitability that is reported regularly to our CODM is earnings before interest, taxes, depreciation and amortization, or EBITDA. Our segment operating results do not include real estate and other activities, costs incurred in certain satellite development programs and other business development activities, expenses of various corporate departments and our centralized treasury operations, including income from our investment portfolio and interest expense on our debt. These activities are accounted for in the “All Other and Eliminations” column in the table below. Total assets by segment have not been reported herein because the information is not provided to our CODM on a regular basis. The Hughes Retail Group is included in our Hughes segment and our CODM reviews separate HRG financial information only to the extent such information is included in our periodic filings with the SEC. Therefore, we do not consider HRG to be a separate operating segment. Prior to 2015, our OTT, SVOD platform business, including certain assets distributed to us in August 2014 in connection with the Exchange Agreement with Sling TV Holding (see Notes 6 and 19), was managed separately from our existing operating segments and was reported within “All Other and Eliminations.” In the first quarter of 2015, we assigned management responsibility for our OTT, SVOD platform business to our EchoStar Technologies segment, where it continues to be managed and reported as a separate reporting unit. All prior period amounts have been retrospectively adjusted to present operations of our OTT, SVOD platform business in our EchoStar Technologies segment. Transactions between segments were not significant for the years ended December 31, 2016 , 2015 and 2014 . The following table presents revenue, EBITDA, and capital expenditures for each of our operating segments: Hughes EchoStar Technologies EchoStar Satellite Services All Other and Eliminations Consolidated Total (In thousands) For The Year Ended December 31, 2016 External revenue $ 1,389,152 $ 1,248,534 $ 406,970 $ 12,074 $ 3,056,730 Intersegment revenue $ 3,209 $ 663 $ 690 $ (4,562 ) $ — Total revenue $ 1,392,361 $ 1,249,197 $ 407,660 $ 7,512 $ 3,056,730 EBITDA $ 427,802 $ 89,549 $ 339,496 $ 26,684 $ 883,531 Capital expenditures $ 322,362 $ 69,744 $ 58,925 $ 247,223 $ 698,254 For The Year Ended December 31, 2015 External revenue $ 1,344,945 $ 1,297,510 $ 489,842 $ 11,417 $ 3,143,714 Intersegment revenue $ 2,395 $ 688 $ 749 $ (3,832 ) $ — Total revenue $ 1,347,340 $ 1,298,198 $ 490,591 $ 7,585 $ 3,143,714 EBITDA $ 396,684 $ 106,745 $ 412,607 $ (50,683 ) $ 865,353 Capital expenditures $ 285,499 $ 50,593 $ 101,215 $ 266,213 $ 703,520 For The Year Ended December 31, 2014 External revenue $ 1,325,887 $ 1,626,826 $ 481,579 $ 11,286 $ 3,445,578 Intersegment revenue $ 1,831 $ 540 $ 2,876 $ (5,247 ) $ — Total revenue $ 1,327,718 $ 1,627,366 $ 484,455 $ 6,039 $ 3,445,578 EBITDA $ 356,871 $ 154,786 $ 419,442 $ (28,518 ) $ 902,581 Capital expenditures $ 218,607 $ 48,616 $ 28,734 $ 384,069 $ 680,026 The following table reconciles total consolidated EBITDA to reported “ Income before income taxes ” in our consolidated statements of operations and comprehensive income (loss) : For the Years Ended December 31, 2016 2015 2014 (In thousands) EBITDA $ 883,531 $ 865,353 $ 902,581 Interest income and expense, net (102,381 ) (111,637 ) (162,247 ) Depreciation and amortization (495,068 ) (528,158 ) (556,676 ) Net income (loss) attributable to noncontrolling interest in HSS Tracking Stock and other noncontrolling interests 762 (3,986 ) (5,325 ) Income before income taxes $ 286,844 $ 221,572 $ 178,333 Geographic Information and Transactions with Major Customers Geographic Information. Revenue is attributed to geographic regions based upon the location where the goods and services are provided. North America revenue includes transactions with North America customers. All other revenue includes transactions with customers in Asia, Africa, Australia, Europe, South America, and the Middle East. The following table summarizes total long-lived assets and revenue attributed to the North America and other foreign locations. As of December 31, Long-lived assets: 2016 2015 (In thousands) North America: United States $ 4,499,384 $ 4,440,590 Canada and Mexico 16,668 1,242 All other 296,968 158,253 Total long-lived assets $ 4,813,020 $ 4,600,085 For the Years Ended December 31, Revenue: 2016 2015 2014 (In thousands) North America: United States $ 2,623,967 $ 2,685,665 $ 2,958,539 Canada and Mexico 187,442 203,813 220,122 All other 245,321 254,236 266,917 Total revenue $ 3,056,730 $ 3,143,714 $ 3,445,578 Transactions with Major Customers. For the years ended December 31, 2016 , 2015 and 2014 , our revenue included sales to one major customer. The following table summarizes sales to this customer and its percentage of total revenue. For the Years Ended December 31, 2016 2015 2014 (In thousands) Total revenue: DISH Network: Hughes segment $ 107,300 $ 105,181 $ 112,692 EchoStar Technologies segment 1,130,985 1,141,435 1,443,419 EchoStar Satellite Services segment 349,549 423,465 407,236 All Other and Eliminations 12,058 11,404 11,244 Total DISH Network 1,599,892 1,681,485 1,974,591 All other 1,456,838 1,462,229 1,470,987 Total revenue $ 3,056,730 $ 3,143,714 $ 3,445,578 Percentage of total revenue: DISH Network 52.3 % 53.5 % 57.3 % All other 47.7 % 46.5 % 42.7 % |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Our quarterly results of operations are summarized as follows: For the Three Months Ended March 31 June 30 September 30 December 31 (In thousands, except per share amounts) Year ended December 31, 2016 Total revenue $ 816,359 $ 757,629 $ 742,349 $ 740,393 Operating income $ 86,465 $ 89,886 $ 81,981 $ 106,066 Net income attributable to EchoStar common stock $ 50,674 $ 56,133 $ 36,644 $ 38,222 Basic earnings per share $ 0.54 $ 0.60 $ 0.39 $ 0.41 Diluted earnings per share $ 0.54 $ 0.60 $ 0.39 $ 0.40 Year ended December 31, 2015 Total revenue $ 798,653 $ 793,595 $ 760,879 $ 790,587 Operating income $ 81,205 $ 94,348 $ 88,607 $ 91,873 Net income attributable to EchoStar common stock $ 33,402 $ 33,900 $ 30,102 $ 66,296 Basic earnings per share $ 0.36 $ 0.37 $ 0.33 $ 0.71 Diluted earnings per share $ 0.36 $ 0.36 $ 0.32 $ 0.71 For the quarter ended December 31, 2015, our effective income tax rate decreased due primarily to the re-enactment of federal research and experimentation tax credits in December 2015. The decrease in our effective tax rate resulted in a $23.2 million |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transaction, Due from (to) Related Party [Abstract] | |
Related Party Transactions | Related Party Transactions DISH Network Following the Spin-off, we and DISH Network have operated as separate publicly-traded companies. However, pursuant to the Satellite and Tracking Stock Transaction, described in Note 4 and below, DISH Network owns Hughes Retail Preferred Tracking Stock representing an aggregate 80.0% economic interest in the residential retail satellite broadband business of our Hughes segment. The tracking stock is an equity security and the rights of DISH Network, as the holder of the tracking stock, in our assets are subject to the claims of our creditors. In addition, a substantial majority of the voting power of the shares of EchoStar and DISH Network is owned beneficially by Charles W. Ergen, our Chairman, and by certain trusts established by Mr. Ergen for the benefit of his family . In connection with and following the Spin-off, we and DISH Network have entered into certain agreements pursuant to which we obtain certain products, services and rights from DISH Network; DISH Network obtains certain products, services and rights from us; and we and DISH Network have indemnified each other against certain liabilities arising from our respective businesses. We also may enter into additional agreements with DISH Network in the future. Generally, the amounts DISH Network pays for products and services provided under the agreements are based on our cost plus a fixed margin (unless noted differently below), which varies depending on the nature of the products and services provided. 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. Following the Share Exchange, we also expect that certain of the related party transactions described below will be terminated and that we will enter into agreements for new transactions with DISH Network, including agreements pursuant to which we obtain certain products, services and rights from DISH Network and DISH Network obtains certain products, services and rights from us. Equipment revenue — DISH Network Receiver Agreement. Effective January 2012, we and DISH Network entered into a receiver agreement (the “2012 Receiver Agreement”), pursuant to which DISH Network has the right, but not the obligation, to purchase digital set-top boxes, related accessories, and other equipment from us for the period from January 2012 through December 2014. The 2012 Receiver Agreement replaced the receiver agreement we entered into with DISH Network in connection with the Spin-off. The 2012 Receiver Agreement allows DISH Network to purchase digital set-top boxes, related accessories, and other equipment from us either: (i) at cost (decreasing as we reduce costs and increasing as costs increase) plus a dollar mark-up which will depend upon the cost of the product subject to a collar on our mark-up; or (ii) at cost plus a fixed margin, which will depend on the nature of the equipment purchased. Under the 2012 Receiver Agreement, our margins will be increased if we are able to reduce the costs of our digital set-top boxes and our margins will be reduced if these costs increase. We provide DISH Network with standard manufacturer warranties for the goods sold under the 2012 Receiver Agreement. Additionally, the 2012 Receiver Agreement includes an indemnification provision, whereby the parties indemnify each other for certain intellectual property matters. DISH Network is able to terminate the 2012 Receiver Agreement for any reason upon at least 60 days’ notice to us. We are able to terminate the 2012 Receiver Agreement if certain entities acquire DISH Network. In May 2014, we received DISH Network’s notice to extend the 2012 Receiver Agreement for one year through December 2015, and in November 2015, we amended the 2012 Receiver Agreement with DISH Network to extend the term of the 2012 Receiver Agreement for one year through December 2016. In November 2016, we and DISH Network amended this agreement to extend its term for one year through December 2017. Services and other revenue — DISH Network Broadcast Agreement. Effective January 2012, we and DISH Network entered into a broadcast agreement (the “2012 Broadcast Agreement”) pursuant to which we provide certain broadcast services to DISH Network, including teleport services such as transmission and downlinking, channel origination services, and channel management services, for the period from January 2012 through December 2016. In November 2016, we and DISH Network amended the 2012 Broadcast Agreement to extend the term for one year through December 2017. The 2012 Broadcast Agreement replaced the broadcast agreement that we entered into with DISH Network in connection with the Spin-off. The fees for the services provided under the 2012 Broadcast Agreement are calculated at either: (a) our cost of providing the relevant service plus a fixed dollar fee, which is subject to certain adjustments; or (b) our cost of providing the relevant service plus a fixed margin, which depends on the nature of the services provided. DISH Network has the ability to terminate channel origination services and channel management services for any reason and without any liability upon at least 60 days’ notice to us. If DISH Network terminates the teleport services provided under the 2012 Broadcast Agreement for a reason other than our breach, DISH Network generally is obligated to reimburse us for any direct costs we incur related to any such termination that we cannot reasonably mitigate. Broadcast Agreement for Certain Sports Related Programming. In May 2010, we and DISH Network entered into a broadcast agreement pursuant to which we provide certain broadcast services to DISH Network in connection with its carriage of certain sports related programming. The term of this agreement is ten years . If DISH Network terminates this agreement for a reason other than our breach, DISH Network generally is obligated to reimburse us for any direct costs we incur related to any such termination that we cannot reasonably mitigate. The fees for the broadcast services provided under this agreement depend, among other things, upon the cost to develop and provide such services. RUS Implementation Agreement. In September 2010, DISH Broadband L.L.C. (“DISH Broadband”), DISH Network’s indirect, wholly-owned subsidiary, was selected by the Rural Utilities Service (“RUS”) of the United States Department of Agriculture to receive up to approximately $14.1 million in broadband stimulus grant funds (the “Grant Funds”). Effective November 2011, HNS and DISH Broadband entered into a RUS Implementation Agreement (the “RUS Agreement”) pursuant to which HNS provided certain portions of the equipment and broadband service used to implement DISH Broadband’s RUS program. While the RUS Agreement expired in June 2013 when the Grant Funds were exhausted, HNS is required to continue providing services to DISH Broadband’s customers activated prior to the expiration of the RUS Agreement in accordance with the terms and conditions of the RUS Agreement. Satellite Services Provided to DISH Network. Since the Spin-off, we have entered into certain satellite service agreements pursuant to which DISH Network receives satellite services on certain satellites owned or leased by us. The fees for the services provided under these satellite service agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are providing services on the applicable satellite, and the length of the service arrangements. The terms of each service arrangement is set forth below: EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV. As part of the Satellite and Tracking Stock Transaction discussed in Note 4 , in March 2014, we began providing certain satellite services to DISH Network on the EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV satellites. The term of each satellite services 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. DISH Network generally has the option to renew each satellite service 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. DISH Network elected not to renew the satellite services agreement relative to the EchoStar I satellite. The agreement for the EchoStar I satellite expired pursuant to its terms effective November 2015. In December 2016, DISH Network renewed the satellite services agreement relative to the EchoStar VII satellite for one year to June 2018. EchoStar VIII. In May 2013, DISH Network began receiving satellite services from us on the EchoStar VIII satellite as an in-orbit spare. Effective March 2014, this satellite services arrangement converted to a month-to-month service agreement with both parties having the right to terminate upon 30 days’ notice. The agreement terminated in accordance with its terms effective November 2015. EchoStar IX. Effective January 2008, DISH Network began receiving satellite services from us on the EchoStar IX satellite. Subject to availability, DISH Network generally has the right to continue to receive satellite services from us on the EchoStar IX satellite on a month-to-month basis. EchoStar XII. DISH Network receives satellite services from us on the EchoStar XII satellite. The term of the satellite services agreement terminates upon the earlier of: (i) the end of life of the satellite; (ii) the date the satellite fails or the date the transponder(s) on which the service was being provided under the agreement fails; or (iii) September 2017. DISH Network generally has the option to renew the agreement on a year-to-year basis through the end of the satellite’s life. There can be no assurance that any options to renew this agreement will be exercised. EchoStar XVI. In December 2009, we entered into an initial ten -year transponder service agreement with DISH Network, pursuant to which DISH Network has received satellite services from us on the EchoStar XVI satellite since January 2013. Effective December 2012, we and DISH Network 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 DISH Network further 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, upon certain conditions, and DISH Network have the option to renew for an additional five -year period. If either we or DISH Network exercise our respective five -year renewal options, DISH Network has the option to renew for an additional five -year period prior to expiration of the then-current term. There can be no assurance that any option to renew this agreement will be exercised. In the event that we or DISH Network does not exercise the first five -year renewal option or DISH Network does not exercise the second five -year renewal option, DISH Network has the option to purchase the EchoStar XVI satellite for a certain price. If DISH Network does not elect to purchase the EchoStar XVI satellite at that time, we may sell the EchoStar XVI satellite to a third party and DISH Network is required to pay us a certain amount in the event we are not able to sell the EchoStar XVI satellite for more than a certain amount. Nimiq 5 Agreement. In September 2009, we 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 west longitude orbital location (the “Telesat Transponder Agreement”). In September 2009, we also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with DISH Network, pursuant to which DISH Network receives satellite services from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, DISH Network makes certain monthly payments to us that commenced in September 2009, when the Nimiq 5 satellite was placed into service, and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, DISH Network has the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end of life of the Nimiq 5 satellite. Upon in-orbit failure or end of life of the Nimiq 5 satellite, and in certain other circumstances, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that any options to renew the DISH Nimiq 5 Agreement will be exercised or that DISH Network will exercise its option to receive service on a replacement satellite. QuetzSat-1 Agreement. In November 2008, we entered into a ten -year satellite service agreement with SES Latin America, which provides, among other things, for the provision by SES Latin America to us of service on 32 DBS transponders on the QuetzSat-1 satellite. Concurrently, in 2008, we entered into a transponder service agreement with DISH Network, pursuant to which DISH Network receives satellite services on 24 of the DBS transponders on the QuetzSat-1 satellite. The QuetzSat-1 satellite was launched in September 2011 and was placed into service in November 2011 at the 67.1 degree west longitude orbital location. In February 2013, we and DISH Network entered into an agreement pursuant to which we receive certain satellite services from DISH Network on five DBS transponders on the QuetzSat-1 satellite. In January 2013, the QuetzSat-1 satellite was moved to the 77 degree west longitude orbital location and DISH Network commenced commercial operations at such location in February 2013. Under the terms of our contractual arrangements with DISH Network, we began to provide service to DISH Network on the QuetzSat-1 satellite in February 2013 and will continue to provide service through the remainder of the service term. Unless extended or earlier terminated under the terms and conditions of our agreement with DISH Network for the QuetzSat-1 satellite, the initial service term will expire in November 2021. Upon expiration of the initial service term, DISH Network has the option to renew the agreement for the QuetzSat-1 satellite on a year-to-year basis through the end of life of the QuetzSat-1 satellite. Upon an in-orbit failure or end of life of the QuetzSat-1 satellite, and in certain other circumstances, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that any options to renew this agreement will be exercised or that DISH Network will exercise its option to receive service on a replacement satellite. 103 Degree Orbital Location/SES-3. In May 2012, we entered into a spectrum development agreement (the “103 Spectrum Development Agreement”) with Ciel Satellite Holdings Inc. (“Ciel”) to develop certain spectrum rights at the 103 degree west longitude orbital location (the “103 Spectrum Rights”). In June 2013, we and DISH Network entered into a spectrum development agreement (the “DISH 103 Spectrum Development Agreement”) pursuant to which DISH Network may use and develop the 103 Spectrum Rights. Unless earlier terminated under the terms and conditions of the DISH 103 Spectrum Development Agreement, the term generally will continue for the duration of the 103 Spectrum Rights. In connection with the 103 Spectrum Development Agreement, in May 2012, we also entered into a ten -year service agreement with Ciel pursuant to which we receive certain satellite services from Ciel on the SES-3 satellite at the 103 degree orbital location. In June 2013, we and DISH Network entered into an agreement pursuant to which DISH Network receives certain satellite services from us on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, DISH Network makes certain monthly payments to us through the service term. Unless earlier terminated under the terms and conditions of the DISH 103 Service Agreement, the initial service term will expire on the earlier of: (i) the date the SES-3 satellite fails; (ii) the date the transponder(s) on which service was being provided under the agreement fails; or (iii) June 2023. Upon in-orbit failure or end of life of the SES-3 satellite, and in certain other circumstances, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that DISH Network will exercise its option to receive service on a replacement satellite. Satellite and Tracking Stock Transaction. In February 2014, we entered into agreements with DISH Network to implement a transaction pursuant to which, among other things: (i) in March 2014, EchoStar and HSS issued shares of the Tracking Stock to DISH Network in exchange for five satellites owned by DISH Network (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV) (including assumption of related in-orbit incentive obligations) and approximately $11.4 million in cash; and (ii) in March 2014, DISH Network began receiving certain satellite services on these five satellites from us. See Note 4 for further information. TT&C Agreement. Effective January 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we provide TT&C services to DISH Network for a period ending in December 2016 (the “2012 TT&C Agreement”). In November 2016, we and DISH Network amended the 2012 TT&C Agreement to extend the term for one year through December 2017. The 2012 TT&C Agreement replaced the TT&C agreement we entered into with DISH Network in connection with the Spin-off. The fees for services provided under the 2012 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. DISH Network is able to terminate the 2012 TT&C Agreement for any reason upon 60 days’ notice. In connection with the Satellite and Tracking Stock Transaction, in February 2014, we amended the TT&C Agreement to cease the provision of TT&C services to DISH Network for the EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV satellites. Effective March 2014, we provide TT&C services for the D-1 and EchoStar XV satellites; however, for the period that we received satellite services on the EchoStar XV satellite from DISH Network, we waived the fees for the TT&C services on the EchoStar XV satellite. Effective August 2016, we provide TT&C services to DISH Network for the EchoStar XVIII satellite. Real Estate Lease Agreements. We have entered into lease agreements pursuant to which DISH Network leases certain real estate from us. 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 at the time of the lease, and DISH Network is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each of the leases is set forth below: Inverness Lease Agreement. The lease for certain space at 90 Inverness Circle East in Englewood, Colorado is for a period ending in December 2016. In February 2016, DISH Network terminated this lease effective in August 2016. Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado is for a period ending in December 2016. Effective December 2016, we and DISH Network amended this lease to, among other things, extend the term for one year through December 2017. This agreement may be extended by mutual consent, in which case this agreement will be converted to a month-to-month lease agreement. Upon extension, both parties have the right to terminate this agreement upon 30 days’ notice. Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado is for a period ending in December 2016. Effective December 2016, we and DISH Network amended this lease to, among other things, extend the term for one year through December 2017. This agreement may be extended by mutual consent, in which case this agreement will be converted to a month-to-month lease agreement. Upon extension, both parties have the right to terminate this agreement upon 30 days’ notice. Atlanta Sublease Agreement. The sublease for certain space at 211 Perimeter Center in Atlanta, Georgia terminated in October 2016. Gilbert Lease Agreement. The original lease for certain space at 801 N. DISH Dr. in Gilbert, Arizona was a month to month lease and could be terminated by either party upon 30 days’ prior notice. The original lease was terminated in May 2014. Effective August 2014, we began leasing this space to DISH Network under a new lease for a period ending in July 2016. Effective November 2016, we and DISH Network amended this lease to extend the term for one year through July 2017. Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending in December 2031. This agreement may be extended by mutual consent, in which case this agreement will be converted to a month-to-month lease agreement. Upon extension, both parties have the right to terminate this agreement upon 30 days’ notice. Product Support Agreement. In connection with the Spin-off, we entered into a product support agreement pursuant to which DISH Network has the right, but not the obligation, to receive product support from us (including certain engineering and technical support services) for all set-top boxes and related accessories that we have previously sold and in the future may sell to DISH Network. The fees for the services provided under the product support agreement are calculated at cost plus a fixed margin, which varies depending on the nature of the services provided. The term of the product support agreement is the economic life of such set-top boxes and related accessories, unless terminated earlier. DISH Network may terminate the product support agreement for any reason upon at least 60 days’ notice. In the event of an early termination of this agreement, DISH Network is entitled to a refund of any unearned fees paid to us for the services. DISHOnline.com Services Agreement. Effective January 2010, DISH Network entered into a two -year agreement with us pursuant to which DISH Network receives certain services associated with an online video portal. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. DISH Network has the option to renew this agreement for successive one year terms and the agreement may be terminated by DISH Network for any reason upon at least 120 days’ notice to us. In October 2014, DISH Network exercised its right to renew this agreement for a one -year period ending in December 2015, and in November 2015, DISH Network exercised its right to renew this agreement for an additional one -year period ending in December 2016. In December 2016, we and DISH Network amended this agreement to, among other things, extend the term for one year through December 2017. DISH Remote Access Services Agreement. Effective February 2010, we entered into an agreement with DISH Network pursuant to which DISH Network receives, among other things, certain remote digital video recorder (“DVR”) management services. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement automatically renewed in February 2017 for an additional one -year period until February 2018. The agreement may be terminated by DISH Network for any reason upon at least 120 days’ notice to us. SlingService Services Agreement. Effective February 2010, we entered into an agreement with DISH Network pursuant to which DISH Network receives certain services related to placeshifting. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement automatically renewed in February 2017 for an additional one -year period until February 2018. The agreement may be terminated by DISH Network for any reason upon at least 120 days’ notice to us. TerreStar Agreement. In March 2012, DISH Network completed its acquisition of substantially all the assets of TerreStar Networks Inc. (“TerreStar”). Prior to DISH Network’s acquisition of substantially all the assets of TerreStar and our completion of the Hughes Acquisition, TerreStar and HNS entered into various agreements pursuant to which our Hughes segment provides, among other things, warranty, operations and maintenance and hosting services for TerreStar’s ground-based communications equipment. TerreStar generally has the right to continue to receive warranty services from us for one of our products on a month-to-month basis. The provision of warranty services for our other product will continue until March 2018 and will automatically renew in March 2018 for an additional one -year period, unless terminated by TerreStar upon at least 60 days’ written notice to us prior to the end of the term. The provision of operations and maintenance services will continue until April 2018 and will automatically renew in April 2018 for an additional one -year period, unless terminated by TerreStar or us upon at least 90 days’ written notice prior to the end of the term. The provision of hosting services will continue until May 2022 and will not renew beyond May 2022 unless the parties enter into a new agreement or amend the existing agreement. In addition, TerreStar generally may terminate such services for convenience subject to providing us with prior notice and/or payment of termination charges. Hughes Broadband Distribution Agreement. Effective October 2012, HNS and dishNET Satellite Broadband L.L.C. (“dishNET”), a wholly-owned subsidiary of DISH Network, entered into a distribution agreement (the “Distribution Agreement”) pursuant to which dishNET has the right, but not the obligation, to market, sell and distribute the Hughes satellite internet service (the “Hughes service”). dishNET pays HNS a monthly per subscriber wholesale service fee for the Hughes service based upon a subscriber’s service level and based upon certain volume subscription thresholds. The Distribution Agreement also provides that dishNET has the right, but not the obligation, to purchase certain broadband equipment from us to support the sale of the Hughes service. The Distribution Agreement had an initial term of five years with automatic renewal for successive one year terms unless terminated by either party with a written notice at least 180 days before the expiration of the then-current term. In February 2014, HNS and dishNET entered into an amendment to the Distribution Agreement which, among other things, extended the initial term of the Distribution Agreement until March 2024. Upon expiration or termination of the Distribution Agreement, the parties will continue to provide the Hughes service to the then-current dishNET subscribers pursuant to the terms and conditions of the Distribution Agreement. Set-Top Box Application Development Agreement. In November 2012, we and DISH Network entered into a set-top box application development agreement (the “Application Development Agreement”) pursuant to which we provide DISH Network with certain services relating to the development of web-based applications for set-top boxes for the period ending in February 2016. The Application Development Agreement automatically renewed in February 2017 for a one -year period ending in February 2018, and renews automatically for successive one -year periods thereafter, unless terminated earlier by us or DISH Network at any time upon at least 90 days’ notice. The fees for services provided under the Application Development Agreement are calculated at our cost of providing the relevant service plus a fixed margin, which will depend on the nature of the services provided. XiP Encryption Agreement. In July 2012, we entered into an encryption agreement with DISH Network for our whole-home HD DVR line of set-top boxes (the “XiP Encryption Agreement”) pursuant to which we provide certain security measures on our whole-home HD DVR line of set-top boxes to encrypt the content delivered to the set-top box via a smart card and secure the content between set-top boxes. The XiP Encryption Agreement’s term ends on the same day as the 2012 Receiver Agreement and therefore was automatically extended through December 2017 when we and DISH Network extended the 2012 Receiver Agreement. We and DISH Network each have the right to terminate the XiP Encryption Agreement for any reason upon at least 180 days’ notice and 30 days’ notice, respectively. The fees for the services provided under the XiP Encryption Agreement are calculated on a monthly basis based on the number of receivers utilizing such security measures each month. DBSD North America Agreement. In March 2012, DISH Network completed its acquisition of 100% of the equity of reorganized DBSD North America, Inc. (“DBSD North America”). Prior to DISH Network’s acquisition of DBSD North America and our completion of the Hughes Acquisition, DBSD North America and HNS entered into various agreements pursuant to which our Hughes segment provides, among other things, warranty, operations and maintenance and hosting services of DBSD North America’s gateway and ground-based communications equipment. DBSD North America generally has the right to continue to receive warranty services from us on a month-to-month basis until February 2019. The provision of operations and maintenance services will continue until April 2018 and will automatically renew in April 2018 for an additional one -year period, unless terminated by DBSD North America upon at least 120 days’ written notice to us prior to the end of the term. The provision of hosting services will continue until February 2022 and will automatically renew for an additional five -year period until February 2027 unless terminated by DBSD North America upon at least 180 days’ written notice to us prior to the end of the term. In addition, DBSD North America generally may terminate such services for convenience, subject to providing us with prior notice and/or payment of termination charges. Sling TV Holding L.L.C. (formerly DISH Digital Holding L.L.C.) (“Sling TV Holding”). Effective July 2012, we and DISH Network formed Sling TV Holding, which was owned two-thirds by DISH Network and one-third by us. Sling TV Holding was formed to develop and commercialize certain advanced technologies. At that time, we, DISH Network and Sling TV Holding entered into the following agreements with respect to Sling TV Holding: (i) a contribution agreement pursuant to which we and DISH Network contributed certain assets in exchange for our respective ownership interests in Sling TV Holding; (ii) a limited liability company operating agreement (“Operating Agreement”), which provides for the governance of Sling TV Holding; and (iii) a commercial agreement (“Commercial Agreement”) pursuant to which, among other things, Sling TV Holding had: (a) certain rights and corresponding obligations with respect to its business; and (b) the right, but not the obligation, to receive certain services from us and DISH Network, respectively. Additionally, the spouse of Mr. Vivek Khemka, the President - EchoStar Technologies L.L.C., is employed as Vice President of Business Development and Operations of Sling TV Holding. Effective August 2014, we and Sling TV Holding entered into an exchange agreement (“ |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On January 31, 2017, EchoStar Corporation (“EchoStar”) and certain subsidiaries of EchoStar entered into the Share Exchange Agreement with DISH Network Corporation and certain of its subsidiaries (“DISH Network”). Pursuant to the Share Exchange Agreement, among other things EchoStar will receive all of the shares of EchoStar Tracking Stock and HSS Tracking Stock in exchange for 100% of the equity interests of certain subsidiaries which will hold substantially all of the EchoStar Technologies business segment. The Share Exchange has been structured in a manner to be a tax-free exchange for each of EchoStar and DISH Network. Following the closing of the Share Exchange, the Tracking Stock will be retired and all agreements, arrangements and policy statements with respect to, and the terms of, the Tracking Stock will terminate and be of no further effect. The Share Exchange is expected to be consummated three business days after the satisfaction or waiver of all of the closing conditions to the transaction (other than conditions that by their nature are to be satisfied at the closing, but subject to the satisfaction of those conditions at such time), but no earlier than February 28, 2017. The Share Exchange Agreement provides for customary termination rights of EchoStar and DISH, including the right of either party to terminate the Share Exchange Agreement if the Share Exchange has not closed by March 31, 2017. The closing conditions to the transaction involving third parties or governmental approvals have been satisfied (other than those that by their nature are to be satisfied at the closing). While we currently expect the Share Exchange to be consummated on or about February 28, 2017, no assurance can be given that the Share Exchange will be consummated on the terms or within the time frame disclosed, or at all. |
SCHEDULE I - Parent Company Inf
SCHEDULE I - Parent Company Information | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE I - Parent Company Information | SCHEDULE ICONDENSED BALANCE SHEETS (Parent Company Information Only— See notes to consolidated financial statements) (In thousands, except per share amounts) As of December 31, 2016 2015 Assets Current Assets: Cash and cash equivalents $ 498,219 $ 530,678 Marketable investment securities, at fair value 334,593 358,995 Other current assets 2,258 2,560 Total current assets 835,070 892,233 Noncurrent Assets: Investments in consolidated subsidiaries, including intercompany balances 2,854,218 2,446,916 Restricted cash and marketable investment securities 1,106 862 Deferred tax assets 122,124 245,457 Other intangible assets, net — 5,221 Investments in unconsolidated entities 27,529 26,476 Other receivable - DISH Network 88,252 88,503 Other noncurrent assets, net 465 — Total noncurrent assets 3,093,694 2,813,435 Total assets $ 3,928,764 $ 3,705,668 Liabilities and Stockholders’ Equity Current Liabilities: Accrued expenses and other $ 8,699 $ 10,190 Total current liabilities 8,699 10,190 Total liabilities 8,699 10,190 Commitments and Contingencies Stockholders’ Equity: Preferred Stock, $.001 par value, 20,000,000 shares authorized: Hughes Retail Preferred Tracking Stock, $.001 par value, 13,000,000 shares authorized, 6,290,499 issued and outstanding at each of December 31, 2016 and 2015 6 6 Common stock, $.001 par value, 4,000,000,000 shares authorized: Class A common stock, $.001 par value, 1,600,000,000 shares authorized, 52,243,465 shares issued and 46,711,147 shares outstanding at December 31, 2016 and 51,087,839 shares issued and 45,555,521 shares outstanding at December 31, 2015 52 51 Class B common stock, $.001 par value, 800,000,000 shares authorized, 47,687,039 shares issued and outstanding at each of December 31, 2016 and 2015 48 48 Class C common stock, $.001 par value, 800,000,000 shares authorized, none issued and outstanding at each of December 31, 2016 and 2015 — — Class D common stock, $.001 par value, 800,000,000 shares authorized, none issued and outstanding at each of December 31, 2016 and 2015 — — Additional paid-in capital 3,828,677 3,776,451 Accumulated other comprehensive loss (124,803 ) (117,233 ) Accumulated earnings 314,247 134,317 Treasury stock, at cost (98,162 ) (98,162 ) Total stockholders’ equity 3,920,065 3,695,478 Total liabilities and stockholders’ equity $ 3,928,764 $ 3,705,668 CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parent Company Information Only— See notes to consolidated financial statements) (In thousands) For the Years Ended December 31, 2016 2015 2014 Costs and Expenses: Selling, general and administrative expenses $ 1,622 $ 1,482 $ 1,536 Depreciation and amortization 5,221 16,964 16,965 Total costs and expenses 6,843 18,446 18,501 Operating losses (6,843 ) (18,446 ) (18,501 ) Other Income (Expense): Interest income and expense, net 10,348 7,941 8,880 Gains (losses) on marketable investment securities, net 2,772 (5,067 ) 73 Equity in earnings (losses) of unconsolidated affiliates, net 6,053 6,157 (4,389 ) Other, net (18 ) 790 5,835 Total other income, net 19,155 9,821 10,399 Income (loss) before income taxes and equity in earnings of consolidated subsidiaries, net 12,312 (8,625 ) (8,102 ) Equity in earnings of consolidated subsidiaries, net 172,466 166,731 159,871 Income tax benefit (provision), net (4,848 ) (4,749 ) 1,105 Net income $ 179,930 $ 153,357 $ 152,874 Comprehensive Income (Loss): Net income $ 179,930 $ 153,357 $ 152,874 Other comprehensive income (loss), net of tax: Unrealized gains (losses) on available-for-sale securities and other 7,565 (7,844 ) (5,280 ) Recognition of realized (gains) losses on available-for-sale securities in net income (2,594 ) 5,086 (73 ) Equity in other comprehensive loss of consolidated subsidiaries, net (12,541 ) (58,619 ) (35,848 ) Total other comprehensive loss, net of tax (7,570 ) (61,377 ) (41,201 ) Comprehensive income $ 172,360 $ 91,980 $ 111,673 CONDENSED STATEMENTS OF CASH FLOWS (Parent Company Information Only— See notes to consolidated financial statements) (In thousands) For the Years Ended December 31, 2016 2015 2014 Cash Flows from Operating Activities: Net income $ 179,930 $ 153,357 $ 152,874 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 5,221 16,964 16,965 Equity in (earnings) losses of unconsolidated affiliates, net (6,053 ) (6,157 ) 4,389 Equity in earnings of consolidated subsidiaries, net (172,466 ) (166,731 ) (159,871 ) Losses (gains) and impairment on marketable investment securities, net (2,772 ) 5,067 (73 ) Deferred tax provision (benefit) 4,848 4,749 (1,105 ) Dividends received from unconsolidated entity 5,000 5,000 5,000 Changes in current assets and current liabilities, net 2,093 7,205 6,389 Changes in noncurrent assets and noncurrent liabilities, net 251 (566 ) 35 Other, net 4,661 7,705 13,319 Net cash flows from operating activities 20,713 26,593 37,922 Cash Flows from Investing Activities: Purchases of marketable investment securities (524,517 ) (327,610 ) (1,013,699 ) Sales and maturities of marketable investment securities 548,721 701,832 1,118,187 Contributions to subsidiaries and affiliates, net (104,099 ) (182,943 ) (275,545 ) Investments in unconsolidated entities — — (18,569 ) Changes in restricted cash and marketable investment securities (244 ) 431 (270 ) Other (465 ) — — Net cash flows from investing activities (80,604 ) 191,710 (189,896 ) Cash Flows from Financing Activities: Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan 27,432 38,729 28,857 Other, net — — (3,075 ) Net cash flows from financing activities 27,432 38,729 25,782 Net increase (decrease) in cash and cash equivalents (32,459 ) 257,032 (126,192 ) Cash and cash equivalents, beginning of period 530,678 273,646 399,838 Cash and cash equivalents, end of period $ 498,219 $ 530,678 $ 273,646 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | ECHOSTAR CORPORATION SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS Our valuation and qualifying accounts as of December 31, 2016 , 2015 and 2014 were as follows: Allowance for doubtful accounts Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year (In thousands) For the years ended: December 31, 2016 $ 12,485 $ 14,389 $ (13,474 ) $ 13,400 December 31, 2015 $ 14,188 $ 6,712 $ (8,415 ) $ 12,485 December 31, 2014 $ 13,237 $ 7,242 $ (6,291 ) $ 14,188 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation We consolidate all entities in which we have a controlling financial interest. We are deemed to have a controlling financial interest in variable interest entities where we are the primary beneficiary. We are deemed to have a controlling financial interest in other entities when we own more than 50 percent of the outstanding voting shares and other shareholders do not have substantive rights to participate in management. For entities we control but do not wholly own, we record a noncontrolling interest within stockholders’ equity for the portion of the entity’s equity attributed to the noncontrolling ownership interests. As of December 31, 2016 and 2015 , noncontrolling interests consist primarily of HSS Tracking Stock owned by DISH Network, as described in Note 4 below. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“GAAP”) requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheets, the reported amounts of revenue and expense for each reporting period, and certain information disclosed in the notes to our consolidated financial statements. Estimates are used in accounting for, among other things, amortization periods for deferred subscriber acquisition costs, revenue recognition using the percentage-of-completion method, allowances for doubtful accounts, allowances for sales returns and rebates, warranty obligations, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of stock-based compensation awards, fair value of assets and liabilities acquired in business combinations, lease classifications, asset impairment testing, useful lives and methods for depreciation and amortization of long-lived assets, and certain royalty obligations. We base our estimates and assumptions on historical experience, observable market inputs and on various other factors that we believe to be relevant under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements. Changing economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions are reflected in the period they occur or prospectively if the revised estimate affects future periods. |
Foreign Currency | Foreign Currency The functional currency for certain of our foreign operations is determined to be the local currency. Accordingly, we translate assets and liabilities of these foreign entities from their local currencies to U.S. dollars using period-end exchange rates and translate income and expense accounts at monthly average rates. The resulting translation adjustments are recorded in other comprehensive income (loss) as “ Foreign currency translation adjustments ” in our consolidated statements of operations and comprehensive income (loss) . We have not recorded deferred income taxes related to our foreign currency translation adjustments. Gains and losses resulting from re-measurement of monetary assets and liabilities denominated in foreign currencies into the functional currency are recognized in “ Other, net ” in our consolidated statements of operations and comprehensive income (loss) |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all liquid investments purchased with an original maturity of 90 days or less to be cash equivalents. Cash equivalents as of December 31, 2016 and 2015 primarily consisted of money market funds, government bonds, corporate notes, and commercial paper. The amortized cost of these investments approximates their fair value. |
Marketable Investment Securities | Marketable Investment Securities We classify our marketable investment securities as available for sale, except in uncommon instances where we have designated certain securities as trading securities. We report all marketable investment securities at fair value in our consolidated balance sheets. We recognize periodic changes in the fair value of trading securities and realized gains and losses on sale of available-for-sale securities in “Gains (losses) on marketable investment securities,” a component of net income, in our consolidated statements of operations and comprehensive income (loss). For available-for-sale securities, we recognize periodic changes in the difference between fair value and amortized cost in other comprehensive income (loss). Realized gains and losses upon sale of available-for-sale securities are reclassified from other comprehensive income (loss) and recognized in net income on the trade date. We use the first-in, first-out (“FIFO”) method to determine the cost basis on sales of marketable investment securities. Interest and dividend income from marketable investment securities is reported in “ Interest income ” and “ Other, net ,” respectively, in our consolidated statements of operations and comprehensive income (loss) . Dividend income is recognized on the ex-dividend date. We evaluate our available-for-sale securities portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other than temporary. Our evaluation consists of reviewing, among other things: • the fair value of each security compared to its amortized cost; • the length of time and the extent to which the fair value of a security has been lower than amortized cost; • the historical volatility of the price of each security; • any market and company-specific factors related to each security; and • our intent and ability to hold the investment to recovery. Where the fair value of a debt security has declined below its amortized cost, we consider the decline to be other than temporary if any of the following factors apply: • we intend to sell the security, • it is more likely than not that we will be required to sell the security before maturity or recovery, or • we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. Declines in the fair value of available-for-sale securities that are determined to be other than temporary are reclassified from other comprehensive income (loss) and recognized in net income, thus establishing a new cost basis for the investment. |
Investments in Unconsolidated Entities - Cost and Equity Method | Investments in Unconsolidated Entities — Cost and Equity Method We use the equity method to account for equity investments in entities that we do not control but have the ability to significantly influence the operating decisions of the investee. We use the cost method when we do not have the ability to significantly influence the operating decisions of the investee. Generally, our equity investments accounted for using either the equity method or cost method are not publicly traded and it is not practicable to regularly estimate the fair value of such investments. We evaluate these equity investments on a quarterly basis to determine whether an event or changes in circumstances has occurred that may have a significant adverse effect on the fair value of the investment. As part of our evaluation, we review available information such as business plans and current financial statements of these companies for factors that may indicate an impairment of our investments. Such factors may include, but are not limited to, unprofitable operations, negative cash flow, material litigation, violations of debt covenants, bankruptcy and changes in business strategy. When we determine that an investment is impaired, and the impairment is other than temporary, we adjust the carrying amount of the investment to its estimated fair value and recognize the impairment loss in net income. Generally, equity method investments are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in “ Equity in earnings of unconsolidated affiliates, net ” in our consolidated statements of operations and comprehensive income (loss) . The carrying amount of our investments may include a component of goodwill if the cost of our investment exceeds the fair value of the underlying identifiable assets and liabilities of the investee. Dividends received from equity method investees reduce the carrying amount of the investment. We defer, to the extent of our ownership interest in the investee, recognition of intra-entity profits on sales of equipment to the investee until the investee has charged the cost of the equipment to expense in a subsequent sale to a third party or through depreciation. In these circumstances, we report the gross amounts of revenue and cost of sales in the statement of operations and include the intra-entity profit eliminations within “ Equity in earnings of unconsolidated affiliates, net |
Accounts Receivable | Accounts Receivable We estimate allowances for uncollectible accounts receivable based upon past collection experience and consideration of other relevant factors. Past experience may not be indicative of future collections and therefore additional adjustments could be recognized in the future to reflect differences between estimated and actual collections. |
Inventory | Inventory Inventory is stated at the lower of cost, determined using the FIFO method, or net realizable value. Cost of inventory consists primarily of materials, direct labor and indirect overhead incurred in the procurement and manufacturing of our products. We use standard costing methodologies in determining the cost of certain of our finished goods and work-in-process inventories. We determine net realizable value using our best estimates of future use or recovery, considering the aging and composition of inventory balances, the effects of technological and/or design changes, forecasted future product demand based on firm or near-firm customer orders, and alternative means of disposition of excess or obsolete items. We recognize losses within operating income when we determine that the cost of inventory and commitments to purchase inventory exceed net realizable value. |
Property and Equipment | Property and Equipment Property and equipment is stated at cost, less accumulated depreciation. The cost of our satellites includes construction costs, including the present value of in-orbit incentives payable to the satellite manufacturer, launch costs, capitalized interest, and related insurance premiums. Depreciation is recorded on a straight-line basis over lives ranging from one to 40 years. Repair and maintenance costs are charged to expense when incurred. Costs of renewals and betterments are capitalized. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets We review our long-lived assets for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For assets held and used in operations, the asset is not recoverable if the carrying amount of the asset exceeds its undiscounted estimated future net cash flows. When an asset is not recoverable, we adjust the carrying amount of such asset to its estimated fair value and recognize the impairment loss in net income. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value less costs to sell. |
Goodwill | Goodwill Goodwill represents the excess of the cost of acquired businesses over the estimated fair value assigned to the identifiable assets acquired and liabilities assumed. We do not amortize goodwill, but test goodwill for impairment annually, or more frequently if circumstances indicate impairment may exist. Our goodwill as of December 31, 2016 and 2015 consists primarily of goodwill assigned to reporting units of our Hughes segment. We test Hughes goodwill for impairment in the second fiscal quarter. There are two steps to the goodwill impairment test. Step one compares the fair value of a reporting unit with its carrying amount, including goodwill. We typically estimate fair value of the reporting units using discounted cash flow techniques, which includes significant assumptions about prospective financial information, terminal value and discount rates (Level 3 inputs). If the reporting unit’s carrying amount exceeds its estimated fair value, it is necessary to perform the second step of the impairment test, which compares the implied fair value of reporting unit goodwill with the carrying amount of such goodwill to determine the amount of impairment loss. We may bypass the two-step goodwill impairment test if we determine, based on a qualitative assessment, that it is more likely than not that the fair value of a reporting unit exceeds its carrying amount including goodwill. |
Regulatory Authorizations and Other Intangible Assets | Regulatory Authorizations and Other Intangible Assets At acquisition and periodically thereafter, we evaluate our intangible assets to determine whether their useful lives are finite or indefinite. We consider our intangible assets to have indefinite lives when no significant legal, regulatory, contractual, competitive, economic, or other factors limit the useful life. Intangible assets that have finite lives are amortized over their estimated useful lives, ranging from approximately one to 30 years. When we expect to incur significant costs to renew or extend finite-lived intangible assets, we amortize the total initial and estimated renewal costs over the combined initial and expected renewal terms. In such instances, actual renewal costs are capitalized when they are incurred. We test intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable, as discussed above under “Impairment of Long-lived Assets.” We do not amortize our indefinite-lived intangible assets, but test those assets for impairment annually or more frequently if circumstances indicate that it is more likely than not that the asset may be impaired. Costs incurred to maintain or renew indefinite-lived intangible assets are expensed as incurred. Our indefinite-lived intangible assets include Federal Communications Commission (“FCC”) authorizations and certain other contractual or regulatory rights to use spectrum at specified orbital locations (collectively “Regulatory Authorizations”). We have determined that our FCC authorizations generally have indefinite useful lives due to the following: • FCC authorizations are non-depleting assets; • renewal satellite applications generally are authorized by the FCC subject to certain conditions, without substantial cost under a stable regulatory, legislative, and legal environment; • expenditures required to maintain the authorization are not significant; and • we intend to use these authorizations indefinitely. |
Income Taxes | Income Taxes We recognize a provision or benefit for income taxes currently payable or receivable and for income tax amounts deferred to future periods . Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that exist between the financial reporting carrying amount and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we determine it is more likely than not that such deferred tax assets will not be realized in the foreseeable future. We determine deferred tax assets and liabilities separately for each taxing jurisdiction and report the net amount for each jurisdiction as a noncurrent asset or liability in our consolidated balance sheets . From time to time, we engage in transactions where the income tax consequences are uncertain. We recognize tax benefits when, in management’s judgment, a tax filing position is more likely than not to be sustained if challenged by the tax authorities. For tax positions that meet the more-likely-than-not threshold, we may not recognize a portion of a tax benefit depending on management’s assessment of how the tax position will ultimately be settled. Unrecognized tax benefits generally are netted against the deferred tax assets associated with our net operating loss carryforwards. We adjust our estimates periodically based on ongoing examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and precedent. We classify interest and penalties, if any, associated with our unrecognized tax benefits as a component of income tax provision or benefit. |
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 utilize the highest level of inputs available according to the following hierarchy in determining fair value: • Level 1, defined as observable inputs being quoted prices in active markets for identical assets; • Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3, defined as unobservable inputs for which little or no market data exists, consistent with characteristics of the asset or liability that would be considered by market participants in a transaction to purchase or sell the asset or liability. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were no transfers between levels for each of the years ended December 31, 2016 or 2015 . As of December 31, 2016 and 2015 , the carrying amounts of our cash and cash equivalents, trade accounts receivable, net of allowance for doubtful accounts, accounts payable and accrued liabilities were equal to or approximated fair value due to their short-term nature or proximity to current market rates. Fair values of our marketable investment securities are based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on a Level 1 measurement that reflects quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities generally are based on Level 2 measurements, as the markets for such debt securities are less active. Trades of identical debt securities on or near the measurement date are considered a strong indication of fair value. Matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features also may be used to determine fair value of our investments in marketable debt securities. Fair values for our 2019 Senior Secured Notes, 2021 Senior Unsecured Notes and 2026 Notes (see Note 11) are based on quoted market prices in less active markets and are categorized as Level 2 measurements. The fair values of our other debt are Level 2 measurements and are estimated to approximate their carrying amounts based on the proximity of their interest rates to current market rates. As of December 31, 2016 and 2015 , the fair values of our in-orbit incentive obligations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $74.1 million and $79.3 million , respectively. We use fair value measurements from time to time in connection with asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. |
Revenue Recognition | Revenue Recognition Revenue from the sale of equipment and services generally is recognized when persuasive evidence of an arrangement exists, prices are fixed or determinable, collectibility is reasonably assured, and the goods have been delivered or services have been rendered. If any of these criteria are not met, revenue recognition is deferred until such time as all of the criteria are met. Revenue from equipment sales generally is recognized upon shipment to customers. Revenue from recurring services generally is recognized ratably over the service term. Upfront fees collected in connection with services to consumer subscribers in our Hughes segment are deferred and recognized as revenue over the estimated subscriber life. We may offer rebates to qualifying new consumer subscribers in our Hughes segment. We reduce related revenue at inception of the subscriber contract based on an estimate of the number of rebates that will be redeemed. Our estimates are based on historical experience and actual sales during the promotion. Services and other revenue includes revenue from leases of satellite capacity and equipment. We typically determine based on applicable criteria that our leasing arrangements are operating leases and recognize related revenue on a straight-line basis over the lease term. In situations where customer offerings represent an arrangement for both services and equipment, revenue elements with standalone value to the customer are separated for revenue recognition purposes based on their selling prices if sold separately. We determine selling prices under a hierarchy that considers vendor-specific objective evidence (“VSOE”), third-party evidence and estimated selling prices. Typically, we derive VSOE from service renewal rates and optional equipment prices specified in customer contracts or we estimate prices based on the gross margin that we ordinarily realize in transactions with similarly situated customers. In addition to equipment and service offerings, our Hughes segment also enters into contracts to design, develop, and deliver complex telecommunication networks to customers in its enterprise and mobile satellite systems markets. Those contracts require significant effort to develop and construct the network over an extended time period. Revenue from such contracts is recognized using the percentage-of-completion method. Depending on the nature of the arrangement, we measure progress toward contract completion using the cost-to-cost method or the units-of-delivery method. Under the cost-to-cost method, revenue reflects the ratio of costs incurred to estimated total costs at completion multiplied by the total estimated contract revenue. Under the units-of-delivery method, revenue and related costs are recognized as products are delivered based on the expected profit for the entire agreement. Profit margins on long-term contracts are based on estimates of revenue and costs at completion. We review and revise our estimates periodically and recognize related adjustments in the period in which the revisions are made. Estimated losses on contracts are recorded in the period in which they are identified. We report revenue net of sales taxes imposed on our goods and services in our consolidated statements of operations and comprehensive income (loss) . Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. |
Debt Issuance Costs | Debt Issuance Costs Costs of issuing debt generally are deferred and amortized utilizing the effective interest method with amortization included in “ Interest expense, net of amounts capitalized ” in our consolidated statements of operations and comprehensive income (loss) . We report unamortized debt issuance costs as a reduction of the related long-term debt in our consolidated balance sheets. |
Cost of Sales - Services and Equipment | Cost of Sales - Services and Equipment Cost of sales - services primarily consists of costs of digital broadcast operations, satellite capacity and services, hub infrastructure, customer care, wireline and wireless capacity, and direct labor costs associated with the services provided. Costs of sales - services generally are charged to expense as incurred. Cost of sales - equipment primarily consists of inventory costs, including freight and royalties. Cost of sales - equipment generally is recognized as products are delivered to customers and related revenue is recognized. |
Research and Development | Research and Development Costs incurred in research and development activities generally are expensed as incurred. A significant portion of our research and development costs are incurred in connection with the specific requirements of a customer’s order. In such instances, the amounts for these customer funded development efforts are included in cost of sales. |
Subscriber Acquisition Costs | Subscriber Acquisition Costs Subscriber Acquisition Costs (“SAC”) consists of costs paid to third-party dealers and customer service representative commissions on new service activations and hardware upgrades and, in certain cases, the cost of hardware and installation services provided to non-wholesale consumer customers at the inception of service or hardware upgrade. SAC is deferred when a customer enters into a service agreement and is subsequently amortized over the service agreement term in proportion to when the related service revenue is recognized. We monitor the recoverability of deferred SAC and are entitled to an early termination fee if the subscriber cancels service prior to the end of the service agreement term. The recoverability of deferred SAC is reasonably assured through the monthly service fee charged to customers, our ability to recover the equipment, and/or our ability to charge an early termination fee. Deferred SAC is included in “Other noncurrent assets, net” in our consolidated balance sheets. |
Capitalized Software Costs | Capitalized Software Costs Costs related to the procurement and development of software for internal-use and externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years . Capitalized costs of internal-use software are included in “Property and equipment, net” and capitalized costs of externally marketed software are included in “ Other noncurrent assets, net ” in our consolidated balance sheets . Externally marketed software generally is installed in the equipment we sell to customers. We conduct software program reviews for externally marketed capitalized software costs at least annually, or as events and circumstances warrant such a review, to determine if capitalized software development costs are recoverable and to ensure that costs associated with programs that are no longer generating revenue are expensed. As of December 31, 2016 and 2015 , the net carrying amount of externally marketed software was $76.3 million and $62.8 million , respectively, of which $50.1 million and $32.6 million , respectively, is under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $23.3 million , $22.4 million and $23.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. We recorded amortization expense relating to the development of externally marketed software of $9.7 million , $8.4 million and $5.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. The weighted average useful life of our externally marketed software was approximately three years as of December 31, 2016 |
Stock-based Compensation Expense | Stock-based Compensation Expense |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in “ Selling, general and administrative expenses ” in our consolidated statements of operations and comprehensive income (loss) |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). It outlines a single comprehensive model, codified in Topic 606 of the FASB Accounting Standards Codification, for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” In August 2015, the FASB issued ASU No. 2015-14, which deferred the mandatory effective date of ASU 2014-09 by one year. As a result, public entities are required to adopt the new revenue standard in annual periods beginning after December 15, 2017 and in interim periods within those annual periods. The standard may be applied either retrospectively to prior periods or as a cumulative-effect adjustment as of the date of adoption. Early adoption is permitted, but not before annual periods beginning after December 15, 2016. In March 2016, the FASB issued ASU No. 2016-08, Principal versus Agent Considerations, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing, which amends guidance on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU No. 2016-12, Narrow-Scope Improvements and Practical Expedients, which addresses collectibility, noncash consideration, completed contracts at transition, a practical expedient for contract modifications at transition, and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. In January 2017, the FASB issued ASU No. 2016-20, Technical Corrections to Topic 606, which clarifies, but does not fundamentally change, certain aspects of the new revenue standard. We have not selected the transition method that we will apply upon adoption. We continue to evaluate the impact of the new standard and available adoption methods on our consolidated financial statements. We are in the process of evaluating arrangements with customers and identifying differences in accounting between new and existing standards. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”). This standard amends the consolidation guidance for variable interest entities and general partners’ investments in limited partnerships and similar entities. ASU 2015-02 was effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods, and required either a retrospective or a modified retrospective approach as of the beginning of the fiscal year of adoption. We adopted ASU 2015-02 in the first quarter of 2016. The adoption of the standard did not impact our consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). This standard requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. ASU 2015-03 was effective for annual periods beginning after December 15, 2015 and interim periods within those annual periods, and required a retrospective approach to adoption. We adopted ASU 2015-03 in the first quarter of 2016. Upon adoption, we presented unamortized debt issuance cost previously reported in “ Other noncurrent assets, net ” with a carrying amount of $31.3 million as of December 31, 2015 , as a reduction of our “ Long-term debt and capital lease obligations, net of unamortized debt issuance costs .” In January 2016, the FASB issued Accounting Standards Update No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This update substantially revises standards for the recognition, measurement and presentation of financial instruments, including requiring all equity investments to be measured at fair value with changes in the fair value recognized through net income. It also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, with early adoption permitted for certain requirements. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (“ASU 2016-02”). This standard requires lessees to recognize assets and liabilities for all leases with lease terms more than 12 months, including leases classified as operating leases. The standard also modifies the definition of a lease and the criteria for classifying leases as operating leases or financing leases. ASU 2016-02 is effective for annual periods beginning after December 15, 2018 and interim periods within those periods. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies the accounting for share-based payment awards. This update requires all excess tax benefits and deficiencies to be recognized as income tax expense or benefit and permits an entity to make an entity-wide policy election to either estimate forfeitures or recognize forfeitures as they occur. ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those periods. The update specifies requirements for retrospective, modified retrospective or prospective application for the various amendments contained in the update. Upon adoption of this standard as of January 1, 2017, we recorded a $14.5 million deferred tax asset and a corresponding credit to retained earnings for excess tax benefits that had not previously been recognized because the related tax deductions had not reduced taxes payable. We will not change our accounting policy which is to estimate forfeitures. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 2016-13 is effective for annual periods beginning after December 15, 2019 and interim periods within those periods. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In October 2016, the FASB issued Accounting Standards Update No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”), which improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for annual periods beginning after December 15, 2017 and interim periods within those periods. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In November 2016, the FASB issued Accounting Standards No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”). This standard clarifies the guidance on the classification and presentation of restricted cash in the statement of cash flows, along with other cash-flow-related issues. ASU 2016-18 is effective for annual periods beginning after December 15, 2017 and interim periods within those periods. Early adoption is permitted, which must apply the guidance retrospectively to all periods presented. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In January 2017, the FASB issued Accounting Standards No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The standard simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying amount, including goodwill, exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and to be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We will apply this new accounting standard in future periods if we determine that the carrying amount of any reporting units including goodwill exceeds fair value of the reporting unit. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Tabular disclosure of the effect of income (loss) on the entity's basic and diluted earnings per share | The following table presents basic and diluted EPS amounts for all periods and the corresponding weighted-average shares outstanding used in the calculations. For the Years Ended December 31, 2016 2015 2014 (In thousands, except per share amounts) Net income attributable to EchoStar $ 179,930 $ 153,357 $ 152,874 Less: Net loss attributable to EchoStar Tracking Stock (1,743 ) (10,343 ) (12,394 ) Net income attributable to EchoStar common stock $ 181,673 $ 163,700 $ 165,268 Weighted-average common shares outstanding : Class A and B common stock: Basic 93,795 92,397 91,190 Dilutive impact of stock awards outstanding 615 1,069 1,426 Diluted 94,410 93,466 92,616 Earnings per share: Class A and B common stock: Basic $ 1.94 $ 1.77 $ 1.81 Diluted $ 1.92 $ 1.75 $ 1.78 |
Hughes Retail Preferred Track32
Hughes Retail Preferred Tracking Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Hughes Retail Preferred Tracking Stock | |
Schedule of carrying amounts of net assets transferred from DISH Network to EchoStar and HSS | The historical carrying amounts of net assets transferred to EchoStar and HSS at the date of transfer were as follows: EchoStar(1) HSS Total (In thousands) Cash $ — $ 11,404 $ 11,404 Property and equipment, net 349,243 82,837 432,080 Current liabilities (3,479 ) (3,076 ) (6,555 ) Noncurrent liabilities (30,121 ) (8,713 ) (38,834 ) Transferred net assets $ 315,643 $ 82,452 $ 398,095 (1) |
Schedule of net amounts credited to stockholders' equity | The net amounts credited to EchoStar stockholders’ equity for the EchoStar Tracking Stock (primarily additional paid-in capital) and the noncontrolling interest in the HSS Tracking Stock were as follows: EchoStar Stockholders Noncontrolling Interest Total (In thousands) Transferred net assets $ 315,643 $ 82,452 $ 398,095 Offering costs, net of tax (2,302 ) (610 ) (2,912 ) Deferred income taxes (114,525 ) (29,971 ) (144,496 ) Reallocation based on relative liquidation values (35,300 ) 35,300 — Net increase in stockholders’ equity $ 163,516 $ 87,171 $ 250,687 |
Other Comprehensive Income (L33
Other Comprehensive Income (Loss) and Related Tax Effects (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of reclassifications out of accumulated other comprehensive loss | Reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2016 , 2015 and 2014 were as follows: Accumulated Other Comprehensive Loss Components Affected Line Item in our Consolidated Statements of Operations For the Years Ended December 31, 2016 2015 2014 (In thousands) Recognition of realized gains on available-for-sale securities in net income (1) Gains (losses) on marketable investment securities, net $ (5,590 ) $ (35 ) $ (41 ) Recognition of other-than-temporary impairment loss on available-for-sale securities in net income (2) Other-than-temporary impairment loss on available-for-sale securities — 11,226 — Recognition of foreign currency translation losses in net income (3) Other, net — 1,889 — Total reclassifications, net of tax and noncontrolling interests $ (5,590 ) $ 13,080 $ (41 ) (1) When available-for-sale securities are sold, the related unrealized gains and losses that were previously recognized in other comprehensive income (loss) are reclassified and recognized as “Gains (losses) on marketable investment securities, net” in our consolidated statements of operations and comprehensive income (loss). (2) We recorded other-than-temporary impairment losses on shares of certain common stock included in our strategic equity securities. (3) As a result of the deconsolidation of several of our European subsidiaries in connection with our investment in SmarDTV SA in May 2015, the related cumulative translation adjustments that were previously recognized in other comprehensive income (loss) were reclassified and recognized as a loss within “Other income (expense)” in our consolidated statements of operations and comprehensive income (loss). See Note 6 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments [Abstract] | |
Schedule of marketable investment securities, restricted cash and cash equivalents, and investments in unconsolidated entities | Our marketable investment securities, restricted cash and cash equivalents, and investments in unconsolidated entities consisted of the following: As of December 31, 2016 2015 (In thousands) Marketable investment securities—current, at fair value: Corporate bonds $ 402,670 $ 562,236 Strategic equity securities 94,816 38,864 Other 25,030 11,238 Total marketable investment securities—current 522,516 612,338 Restricted marketable investment securities (1) 12,203 13,227 Total 534,719 625,565 Restricted cash and cash equivalents (1) 723 7,775 Investments in unconsolidated entities—noncurrent: Cost method 81,174 81,174 Equity method 116,045 128,090 Total investments in unconsolidated entities—noncurrent 197,219 209,264 Total marketable investment securities, restricted cash and cash equivalents, and investments in unconsolidated entities $ 732,661 $ 842,604 (1) |
Schedule of unrealized gains (losses) on available-for-sale securities | The components of our available-for-sale securities are summarized in the table below. Amortized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) As of December 31, 2016 Debt securities: Corporate bonds $ 402,472 $ 285 $ (87 ) $ 402,670 Other (including restricted) 32,488 3 (23 ) 32,468 Equity securities - strategic 77,149 13,120 (2,652 ) 87,617 Total available-for-sale securities $ 512,109 $ 13,408 $ (2,762 ) $ 522,755 As of December 31, 2015 Debt securities: Corporate bonds $ 562,849 $ 10 $ (623 ) $ 562,236 Other (including restricted) 24,495 — (30 ) 24,465 Equity securities - strategic 20,855 7,748 (82 ) 28,521 Total available-for-sale securities $ 608,199 $ 7,758 $ (735 ) $ 615,222 |
Schedule of available-for-sale securities in continuous unrealized loss position by length of time and their fair value | The following table reflects the length of time that our available-for-sale securities have been in an unrealized loss position. We do not intend to sell these securities before they recover or mature, and it is more likely than not that we will hold these securities until they recover or mature. We believe that changes in the estimated fair values of these securities are primarily related to temporary market conditions . As of December 31, 2016 2015 Fair Unrealized Fair Unrealized (In thousands) Less than 12 months $ 154,826 $ (2,760 ) $ 364,160 $ (609 ) 12 months or more 1,571 (2 ) 149,889 (126 ) Total $ 156,397 $ (2,762 ) $ 514,049 $ (735 ) |
Schedule of fair value measurements | Our current marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of December 31, 2016 and 2015 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of December 31, 2016 2015 Total Level 1 Level 2 Total Level 1 Level 2 (In thousands) Cash equivalents (including restricted) $ 2,490,168 $ 62,332 $ 2,427,836 $ 840,950 $ 38,771 $ 802,179 Debt securities: Corporate bonds $ 402,670 $ — $ 402,670 $ 562,236 $ — $ 562,236 Other (including restricted) 37,233 13,517 23,716 24,465 12,078 12,387 Equity securities - strategic 94,816 94,816 — 38,864 38,864 — Total marketable investment securities $ 534,719 $ 108,333 $ 426,386 $ 625,565 $ 50,942 $ 574,623 |
Trade Accounts Receivable (Tabl
Trade Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule of trade accounts receivable | Our trade accounts receivable consisted of the following: As of December 31, 2016 2015 (In thousands) Trade accounts receivable $ 187,018 $ 168,714 Contracts in process, net 36,170 23,011 Total trade accounts receivable 223,188 191,725 Allowance for doubtful accounts (13,400 ) (12,485 ) Trade accounts receivable - DISH Network 278,615 277,159 Total trade accounts receivable, net $ 488,403 $ 456,399 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory, Net [Abstract] | |
Schedule of inventory | Our inventory consisted of the following: As of December 31, 2016 2015 (In thousands) Finished goods $ 58,797 $ 52,839 Raw materials 7,361 9,042 Work in process 6,286 5,129 Total inventory $ 72,444 $ 67,010 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: Depreciable Life (In Years) As of December 31, 2016 2015 (In thousands) Land — $ 42,363 $ 41,457 Buildings and improvements 1-40 370,980 367,947 Furniture, fixtures, equipment and other 1-12 1,372,158 1,254,325 Customer rental equipment 2-4 689,579 588,430 Satellites - owned 2-15 2,381,120 2,381,120 Satellites acquired under capital leases 10-15 781,761 665,518 Construction in progress — 1,438,812 1,112,267 Total property and equipment 7,076,773 6,411,064 Accumulated depreciation (3,407,470 ) (2,998,074 ) Property and equipment, net $ 3,669,303 $ 3,412,990 Depreciation expense associated with our property and equipment consisted of the following: For the Years Ended December 31, 2016 2015 2014 (In thousands) Satellites $ 191,729 $ 197,469 $ 210,763 Furniture, fixtures, equipment and other 118,082 135,536 123,360 Customer rental equipment 114,568 105,725 116,685 Buildings and improvements 12,275 13,513 13,734 Total depreciation expense $ 436,654 $ 452,243 $ 464,542 |
Schedule of construction in progress | Construction in progress consisted of the following: As of December 31, 2016 2015 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 1,235,577 $ 963,103 Satellite related equipment 168,929 126,373 Other 34,306 22,791 Construction in progress $ 1,438,812 $ 1,112,267 Construction in progress included the following owned and leased satellites under construction or undergoing in-orbit testing as of December 31, 2016 . Satellites Segment Expected Launch Date EchoStar XIX Other (3) Fourth quarter of 2016 (1) EchoStar XXI Other Second or third quarter of 2017 EchoStar XXIII Other First quarter of 2017 EchoStar 105/SES-11 ESS Second quarter of 2017 Telesat T19V (“63 West”) (2) Hughes Second quarter of 2018 (1) This satellite was launched in December 2016 and is expected to be placed into service late in the first quarter of 2017. (2) We entered into a satellite services agreement for certain capacity on this satellite once launched, but are not party to the construction contract. (3) EchoStar contributed the EchoStar XIX satellite to its Hughes segment in February 2017. |
Schedule of satellites | Our operating satellite fleet consists of both owned and leased satellites detailed in the table below as of December 31, 2016 . Satellites Segment Launch Date Nominal Degree Orbital Location (Longitude) Depreciable Life (In Years) Owned: SPACEWAY 3 (1) Hughes August 2007 95 W 12 EchoStar XVII Hughes July 2012 107 W 15 EchoStar I (2)(3)(4) ESS December 1995 77 W — EchoStar III (4) ESS October 1997 61.5 W 12 EchoStar VI (4) ESS July 2000 96.2 W 12 EchoStar VII (2)(3) ESS February 2002 119 W 3 EchoStar VIII (2)(4) ESS August 2002 77 W 12 EchoStar IX (2)(4) ESS August 2003 121 W 12 EchoStar X (2)(3) ESS February 2006 110 W 7 EchoStar XI (2)(3) ESS July 2008 110 W 9 EchoStar XII (2)(4)(5) ESS July 2003 61.5 W 2 EchoStar XIV (2)(3) ESS March 2010 119 W 11 EchoStar XVI (2) ESS November 2012 61.5W 15 EUTELSAT 10A (“W2A”) (6) Other April 2009 10 E — Capital Leases: Nimiq 5 (2) ESS September 2009 72.7 W 15 QuetzSat-1 (2) ESS September 2011 77 W 10 Eutelsat 65 West A Hughes March 2016 65 W 15 Operating Lease: AMC-15 ESS October 2004 105 W — (1) Depreciable life represents the remaining useful life as of June 8, 2011, the date EchoStar completed its acquisition of Hughes Communications, Inc. and its subsidiaries. (2) See Note 19 for discussion of related party transactions with DISH Network. (3) Depreciable life represents the remaining useful life as of March 1, 2014, the effective date of our receipt of the satellites from DISH Network as part of the Satellite and Tracking Stock Transaction (See Note 4 ). (4) Fully depreciated assets. (5) Depreciable life represents the remaining useful life as of June 30, 2013, the date the EchoStar XII satellite was impaired. (6) |
Goodwill, Regulatory Authoriz38
Goodwill, Regulatory Authorizations and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of regulatory authorizations with finite and indefinite useful lives | Regulatory authorizations included amounts with finite and indefinite useful lives, as follows: As of Additions Currency Translation Adjustment As of (In thousands) Finite useful lives: Cost $ 82,007 $ — $ 5,952 $ 87,959 Accumulated amortization (9,852 ) (4,685 ) (446 ) (14,983 ) Net 72,155 (4,685 ) 5,506 72,976 Indefinite lives 471,657 — — 471,657 Total regulatory authorizations, net $ 543,812 $ (4,685 ) $ 5,506 $ 544,633 |
Schedule of other intangible assets subject to amortization | Our other intangible assets, which are subject to amortization, consisted of the following: Weighted Average Useful Life (in Years) As of December 31, 2016 2015 Cost Accumulated Amortization Carrying Amount Cost Accumulated Amortization Carrying Amount (In thousands) Customer relationships 8 $ 293,932 $ (238,176 ) $ 55,756 $ 293,932 $ (213,543 ) $ 80,389 Contract-based 4 69,440 (69,440 ) — 255,366 (251,493 ) 3,873 Technology-based 7 137,197 (125,908 ) 11,289 137,337 (111,840 ) 25,497 Trademark portfolio 20 29,700 (8,291 ) 21,409 29,700 (6,806 ) 22,894 Total other intangible assets $ 530,269 $ (441,815 ) $ 88,454 $ 716,335 $ (583,682 ) $ 132,653 |
Schedule of estimated future amortization of intangible assets | As of December 31, 2016 , our estimated future amortization of intangible assets, including regulatory authorizations with finite lives, was as follows: Amount (In thousands) For the Years Ending December 31, 2017 $ 30,253 2018 22,538 2019 21,324 2020 15,988 2021 9,350 Thereafter 65,997 Total $ 165,450 |
Debt and Capital Lease Obliga39
Debt and Capital Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Schedule of carrying amounts and fair values of the entity's debt | The following table summarizes the carrying amounts and fair values of our debt: Effective Interest Rate As of December 31, 2016 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ 990,000 $ 1,084,050 $ 990,000 $ 1,071,675 5 1/4% Senior Secured Notes due 2026 5.316% 750,000 739,688 — — Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 990,189 900,000 954,000 6 5/8% Senior Unsecured Notes due 2026 6.685% 750,000 760,245 — — Other — — 803 803 Less: Unamortized debt issuance costs (31,821 ) — (31,276 ) — Subtotal 3,358,179 $ 3,574,172 1,859,527 $ 2,026,478 Capital lease obligations 302,007 332,838 Total debt and capital lease obligations 3,660,186 2,192,365 Less: Current portion (37,307 ) (35,698 ) Long-term debt and capital lease obligations, net of unamortized debt issuance costs $ 3,622,879 $ 2,156,667 |
Schedule of future minimum lease payments under capital lease obligations | Future minimum lease payments under our capital lease obligations, together with the present value of the net minimum lease payments as of December 31, 2016 , are as follows: Amount (In thousands) For the Years Ending December 31, 2017 $ 93,092 2018 88,923 2019 88,221 2020 88,033 2021 83,995 Thereafter 174,240 Total minimum lease payments 616,504 Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments (188,216 ) Net minimum lease payments 428,288 Less: Amount representing interest (126,281 ) Present value of net minimum lease payments 302,007 Less: Current portion (37,307 ) Long-term portion of capital lease obligations $ 264,700 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income (loss) before income taxes | The components of income before income taxes are as follows: For the Years Ended December 31, 2016 2015 2014 (In thousands) Domestic $ 313,203 $ 224,058 $ 172,276 Foreign (26,359 ) (2,486 ) 6,057 Income before income taxes $ 286,844 $ 221,572 $ 178,333 |
Schedule of components of the benefit (provision) for income taxes | The components of the provision for income taxes are as follows: For the Years Ended December 31, 2016 2015 2014 (In thousands) Current benefit (provision): Federal $ (4,788 ) $ (165 ) $ (2,593 ) State (305 ) (9,601 ) 9,006 Foreign (2,911 ) (6,303 ) (5,455 ) Total current benefit (provision) (8,004 ) (16,069 ) 958 Deferred benefit (provision): Federal (93,681 ) (62,572 ) (31,905 ) State (10,023 ) 4,818 (1,283 ) Foreign 5,556 1,622 1,446 Total deferred provision (98,148 ) (56,132 ) (31,742 ) Total income tax provision, net $ (106,152 ) $ (72,201 ) $ (30,784 ) |
Schedule of income tax rate reconciliation | The actual tax provisions for the years ended December 31, 2016 , 2015 and 2014 reconcile to the amounts computed by applying the statutory federal tax rate to income before income taxes as shown below: For the Years Ended December 31, 2016 2015 2014 Statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of Federal benefit 4.6 % 2.1 % (0.2 )% Permanent differences 3.2 % 3.6 % 0.6 % Tax credits (6.2 )% (10.1 )% (18.6 )% Valuation allowance — % 2.8 % (0.9 )% Other 0.4 % (0.8 )% 1.4 % Total effective tax rate 37.0 % 32.6 % 17.3 % |
Schedule of deferred tax assets and liabilities | The components of our deferred tax assets and liabilities are as follows: As of December 31, 2016 2015 (In thousands) Deferred tax assets: Net operating losses, credit and other carryforwards $ 178,925 $ 315,924 Unrealized losses on investments, net 47,737 47,678 Accrued expenses 39,596 34,037 Stock-based compensation 14,389 13,345 Other assets 15,008 9,534 Total deferred tax assets 295,655 420,518 Valuation allowance (75,372 ) (72,131 ) Deferred tax assets after valuation allowance 220,283 348,387 Deferred tax liabilities: Depreciation and amortization (962,838 ) (993,326 ) Other liabilities (1,319 ) (1,412 ) Total deferred tax liabilities (964,157 ) (994,738 ) Total net deferred tax liabilities $ (743,874 ) $ (646,351 ) Noncurrent portion of net deferred tax liabilities $ (743,874 ) $ (646,351 ) Total net deferred tax liabilities $ (743,874 ) $ (646,351 ) |
Schedule of reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows: For the Years Ended December 31, Unrecognized tax benefit 2016 2015 2014 (In thousands) Balance as of beginning of period $ 62,366 $ 44,839 $ 43,319 Additions based on tax positions related to the current year 2,132 11,748 3,806 Additions based on tax positions related to prior years 3 5,779 4,643 Reductions based on tax positions related to prior years (734 ) — (81 ) Reductions based on tax settlements (265 ) — (6,848 ) Balance as of end of period $ 63,502 $ 62,366 $ 44,839 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share-based Compensation [Abstract] | |
Schedule of exercise prices for stock options outstanding and exercisable | Exercise prices for stock options outstanding and exercisable as of December 31, 2016 are as follows: Options Outstanding Options Exercisable Price Range Number Outstanding as of December 31, 2016 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price Number Exercisable as of December 31, 2016 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price $0.00 - $20.00 196,834 3 $ 17.93 196,834 3 $ 17.93 $20.01 - $25.00 489,947 3 $ 20.26 489,947 3 $ 20.26 $25.01 - $30.00 163,013 3 $ 27.80 128,013 3 $ 28.12 $30.01 - $35.00 365,000 6 $ 34.22 338,000 6 $ 34.22 $35.01 - $40.00 2,528,369 6 $ 38.07 1,811,969 5 $ 37.74 $40.01 - $45.00 415,500 9 $ 43.93 2,000 9 $ 43.83 $45.01 - $50.00 981,100 8 $ 47.47 392,500 7 $ 47.51 $50.01 and over 829,000 8 $ 51.90 191,800 8 $ 51.98 5,968,763 7 $ 39.30 3,551,063 5 $ 35.40 |
Schedule of stock option activity | Our stock option activity was as follows: For the Years Ended December 31, 2016 2015 2014 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period 5,893,241 $ 38.38 6,669,614 $ 34.02 6,271,058 $ 30.43 Granted 732,000 $ 41.86 929,000 $ 51.59 1,161,000 $ 47.84 Exercised (453,182 ) $ 28.83 (894,071 ) $ 27.78 (697,544 ) $ 24.87 Forfeited and canceled (203,296 ) $ 45.15 (811,302 ) $ 29.45 (64,900 ) $ 32.65 Total options outstanding, end of period 5,968,763 $ 39.30 5,893,241 $ 38.38 6,669,614 $ 34.02 Performance-based options outstanding, end of period (1) — $ — — $ — 623,100 $ 25.27 Exercisable at end of period 3,551,063 $ 35.40 3,082,241 $ 32.61 3,013,114 $ 29.66 (1) |
Schedule of restricted stock unit activity | Our restricted stock unit activity was as follows: For the Years Ended December 31, 2016 2015 2014 Restricted Stock Units Weighted- Average Grant Date Fair Value Restricted Stock Units Weighted- Average Grant Date Fair Value Restricted Stock Units Weighted- Average Grant Date Fair Value Total restricted stock units outstanding, beginning of period 57,328 $ 42.31 96,768 $ 29.29 121,877 $ 29.93 Granted — $ — 100,000 $ 50.00 — $ — Vested (50,661 ) $ 43.38 (83,992 ) $ 45.72 (22,877 ) $ 33.08 Forfeited and canceled — $ — (55,448 ) $ 27.01 (2,232 ) $ 25.51 Total restricted stock units outstanding, end of period 6,667 $ 34.22 57,328 $ 42.31 96,768 $ 29.29 Restricted Performance Units outstanding, end of period — $ — 33,334 $ 50.00 55,448 $ 27.00 |
Schedule of allocated non-cash, stock-based compensation expense for all employees | Total non-cash, stock-based compensation expense for all of our employees is shown in the following table for the years ended December 31, 2016 , 2015 and 2014 and was assigned to the same expense categories as the base compensation for such employees: For the Years Ended December 31, 2016 2015 2014 (In thousands) Research and development expenses $ 3,003 $ 4,570 $ 2,403 Selling, general and administrative expenses 12,231 17,269 12,280 Total stock-based compensation $ 15,234 $ 21,839 $ 14,683 |
Schedule of assumptions of Black-Scholes option valuation model | The fair value of each stock option granted for the years ended December 31, 2016 , 2015 and 2014 was estimated at the date of the grant using a Black-Scholes option valuation model. The estimated grant-date fair values and related assumptions were as follows: For the Years Ended December 31, Assumptions: 2016 2015 2014 Risk-free interest rate 1.10% - 1.87% 1.38% - 1.80% 1.72% - 1.85% Volatility factor 27.22% - 27.37% 27.16% - 27.85% 29.05% - 35.02% Expected term of options in years 5.7 - 5.8 5.3 - 5.4 5.2 - 5.3 Weighted-average grant-date fair value $11.15 - $12.49 $12.25 - $15.05 $13.79 - $17.21 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of contractual obligations | The following table summarizes our contractual obligations at December 31, 2016 : Payments Due in the Year Ending December 31, Total 2017 2018 2019 2020 2021 Thereafter (In thousands) Long-term debt $ 3,390,000 $ — $ — $ 990,000 $ — $ 900,000 $ 1,500,000 Capital lease obligations 302,007 37,307 36,927 40,370 44,733 46,131 96,539 Interest on long-term debt and capital lease obligations 1,487,583 252,999 248,428 212,318 175,799 136,673 461,366 Satellite-related obligations 732,004 220,421 135,987 63,499 60,479 45,308 206,310 Operating lease obligations 87,558 34,974 14,920 11,484 8,425 7,385 10,370 Purchase and other obligations 105,923 105,923 — — — — — Total $ 6,105,075 $ 651,624 $ 436,262 $ 1,317,671 $ 289,436 $ 1,135,497 $ 2,274,585 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of revenue, EBITDA, and capital expenditures by operating segments | The following table presents revenue, EBITDA, and capital expenditures for each of our operating segments: Hughes EchoStar Technologies EchoStar Satellite Services All Other and Eliminations Consolidated Total (In thousands) For The Year Ended December 31, 2016 External revenue $ 1,389,152 $ 1,248,534 $ 406,970 $ 12,074 $ 3,056,730 Intersegment revenue $ 3,209 $ 663 $ 690 $ (4,562 ) $ — Total revenue $ 1,392,361 $ 1,249,197 $ 407,660 $ 7,512 $ 3,056,730 EBITDA $ 427,802 $ 89,549 $ 339,496 $ 26,684 $ 883,531 Capital expenditures $ 322,362 $ 69,744 $ 58,925 $ 247,223 $ 698,254 For The Year Ended December 31, 2015 External revenue $ 1,344,945 $ 1,297,510 $ 489,842 $ 11,417 $ 3,143,714 Intersegment revenue $ 2,395 $ 688 $ 749 $ (3,832 ) $ — Total revenue $ 1,347,340 $ 1,298,198 $ 490,591 $ 7,585 $ 3,143,714 EBITDA $ 396,684 $ 106,745 $ 412,607 $ (50,683 ) $ 865,353 Capital expenditures $ 285,499 $ 50,593 $ 101,215 $ 266,213 $ 703,520 For The Year Ended December 31, 2014 External revenue $ 1,325,887 $ 1,626,826 $ 481,579 $ 11,286 $ 3,445,578 Intersegment revenue $ 1,831 $ 540 $ 2,876 $ (5,247 ) $ — Total revenue $ 1,327,718 $ 1,627,366 $ 484,455 $ 6,039 $ 3,445,578 EBITDA $ 356,871 $ 154,786 $ 419,442 $ (28,518 ) $ 902,581 Capital expenditures $ 218,607 $ 48,616 $ 28,734 $ 384,069 $ 680,026 |
Schedule of reconciliation of EBITDA to reported income (loss) before income taxes | The following table reconciles total consolidated EBITDA to reported “ Income before income taxes ” in our consolidated statements of operations and comprehensive income (loss) : For the Years Ended December 31, 2016 2015 2014 (In thousands) EBITDA $ 883,531 $ 865,353 $ 902,581 Interest income and expense, net (102,381 ) (111,637 ) (162,247 ) Depreciation and amortization (495,068 ) (528,158 ) (556,676 ) Net income (loss) attributable to noncontrolling interest in HSS Tracking Stock and other noncontrolling interests 762 (3,986 ) (5,325 ) Income before income taxes $ 286,844 $ 221,572 $ 178,333 |
Summary of total long-lived assets and revenue attributed to the North American and other foreign locations | The following table summarizes total long-lived assets and revenue attributed to the North America and other foreign locations. As of December 31, Long-lived assets: 2016 2015 (In thousands) North America: United States $ 4,499,384 $ 4,440,590 Canada and Mexico 16,668 1,242 All other 296,968 158,253 Total long-lived assets $ 4,813,020 $ 4,600,085 For the Years Ended December 31, Revenue: 2016 2015 2014 (In thousands) North America: United States $ 2,623,967 $ 2,685,665 $ 2,958,539 Canada and Mexico 187,442 203,813 220,122 All other 245,321 254,236 266,917 Total revenue $ 3,056,730 $ 3,143,714 $ 3,445,578 |
Summary of sales to major customer and its percentage of total revenue | The following table summarizes sales to this customer and its percentage of total revenue. For the Years Ended December 31, 2016 2015 2014 (In thousands) Total revenue: DISH Network: Hughes segment $ 107,300 $ 105,181 $ 112,692 EchoStar Technologies segment 1,130,985 1,141,435 1,443,419 EchoStar Satellite Services segment 349,549 423,465 407,236 All Other and Eliminations 12,058 11,404 11,244 Total DISH Network 1,599,892 1,681,485 1,974,591 All other 1,456,838 1,462,229 1,470,987 Total revenue $ 3,056,730 $ 3,143,714 $ 3,445,578 Percentage of total revenue: DISH Network 52.3 % 53.5 % 57.3 % All other 47.7 % 46.5 % 42.7 % |
Quarterly Financial Data (Una44
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results of operations | Our quarterly results of operations are summarized as follows: For the Three Months Ended March 31 June 30 September 30 December 31 (In thousands, except per share amounts) Year ended December 31, 2016 Total revenue $ 816,359 $ 757,629 $ 742,349 $ 740,393 Operating income $ 86,465 $ 89,886 $ 81,981 $ 106,066 Net income attributable to EchoStar common stock $ 50,674 $ 56,133 $ 36,644 $ 38,222 Basic earnings per share $ 0.54 $ 0.60 $ 0.39 $ 0.41 Diluted earnings per share $ 0.54 $ 0.60 $ 0.39 $ 0.40 Year ended December 31, 2015 Total revenue $ 798,653 $ 793,595 $ 760,879 $ 790,587 Operating income $ 81,205 $ 94,348 $ 88,607 $ 91,873 Net income attributable to EchoStar common stock $ 33,402 $ 33,900 $ 30,102 $ 66,296 Basic earnings per share $ 0.36 $ 0.37 $ 0.33 $ 0.71 Diluted earnings per share $ 0.36 $ 0.36 $ 0.32 $ 0.71 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Dish Mexico | |
Related party transactions | |
Schedule of related party transactions | The following table summarizes revenue from sales of hardware and services we provided to Dish Mexico. For the Years Ended December 31, 2016 2015 2014 (In thousands) Digital set-top boxes and related accessories $ 52,324 $ 66,779 $ 60,464 Satellite services $ 23,347 $ 23,347 $ 23,327 Uplink services $ 4,059 $ 4,996 $ 6,251 |
Organization and Business Act46
Organization and Business Activities (Details) - segment | 12 Months Ended | |
Dec. 31, 2016 | Jan. 31, 2017 | |
Principal Business | ||
Number of business segments | 3 | |
DISH Network | Hughes Retail Preferred Tracking Stock | ||
Principal Business | ||
Percentage of economic interest held | 80.00% | |
Hughes Retail Group | DISH Network | Satellite and Tracking Stock Transaction | Hughes Retail Preferred Tracking Stock | ||
Principal Business | ||
Percentage of economic interest held | 80.00% | |
EchoStar Technologies segment | Subsequent Event | DISH Network | Share Exchange Agreement | ||
Principal Business | ||
Ownership interest acquired by related party (as a percent) | 100.00% |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Foreign Currency | |||
Foreign currency transaction gain (loss) | $ (500,000) | $ (7,700,000) | $ (3,000,000) |
Fair value measurements | |||
Amount of transfers between levels within the fair value hierarchy | 0 | 0 | |
Research and Development | |||
Research and development expenses | 76,024,000 | 78,287,000 | 60,886,000 |
Other noncurrent assets, net | |||
Capitalized Software Costs | |||
Net carrying amount of externally marketed software | 76,300,000 | 62,800,000 | |
Capitalized cost for software not yet placed in service | 50,100,000 | 32,600,000 | |
Capitalized costs related to development of externally marketed software | 23,300,000 | 22,400,000 | 23,100,000 |
Amortization expense relating to externally marketed software | 9,700,000 | 8,400,000 | 5,400,000 |
Cost of sales | |||
Research and Development | |||
Research and development expenses | 67,800,000 | 59,200,000 | 68,400,000 |
Research and development expenses | |||
Research and Development | |||
Research and development expenses | 76,000,000 | 78,300,000 | 60,900,000 |
Selling, general and administrative expenses | |||
Advertising Costs | |||
Advertising expenses | 56,300,000 | 49,900,000 | $ 50,800,000 |
Level 2 | |||
Fair value measurements | |||
Orbital incentive obligations | $ 74,100,000 | $ 79,300,000 | |
Minimum | |||
Property, Plant and Equipment [Abstract] | |||
Useful life | 1 year | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Useful life | 1 year | ||
Maximum | |||
Property, Plant and Equipment [Abstract] | |||
Useful life | 40 years | ||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Useful life | 30 years | ||
Capitalized Software Costs | |||
Software useful life | 5 years | ||
Weighted-average | |||
Capitalized Software Costs | |||
Software useful life | 3 years |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jan. 01, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
New accounting pronouncement disclosures | |||
Deferred tax assets after valuation allowance | $ 220,283 | $ 348,387 | |
Accounting Standards Update 2015-03 | Other noncurrent assets, net | |||
New accounting pronouncement disclosures | |||
Unamortized deferred cost | (31,300) | ||
Accounting Standards Update 2015-03 | Long-term Debt and Capital Lease Obligations | |||
New accounting pronouncement disclosures | |||
Unamortized deferred cost | $ 31,300 | ||
Subsequent Event | Accounting Standards Update 2016-09 | |||
New accounting pronouncement disclosures | |||
Deferred tax assets after valuation allowance | $ 14,500 | ||
Retained Earnings | Subsequent Event | Accounting Standards Update 2016-09 | |||
New accounting pronouncement disclosures | |||
Cumulative effect of new accounting principle in period of adoption | $ 14,500 |
Earnings per Share - Related Pa
Earnings per Share - Related Party (Details) | Mar. 01, 2014 | Mar. 31, 2014 | Dec. 31, 2016 |
Hughes Retail Group | EchoStar Corporation | Satellite and Tracking Stock Transaction | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Percentage of economic interest held | 20.00% | ||
Hughes Retail Group | DISH Network | EchoStar Corporation | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Percentage of economic interest held | 51.89% | ||
Hughes Retail Group | DISH Network | EchoStar Corporation | Satellite and Tracking Stock Transaction | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Percentage of economic interest held | 51.89% | 51.89% | |
Hughes Retail Group | DISH Network | Hughes Satellite Systems Corporation (HSSC) | Satellite and Tracking Stock Transaction | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Percentage of economic interest held | 28.11% | 28.11% | |
Hughes Retail Preferred Tracking Stock | DISH Network | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Percentage of economic interest held | 80.00% | ||
Hughes Retail Preferred Tracking Stock | Hughes Retail Group | DISH Network | Satellite and Tracking Stock Transaction | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Percentage of economic interest held | 80.00% | 80.00% | 80.00% |
Earnings per Share - Antidiluti
Earnings per Share - Antidilutive Securities (Details) - shares shares in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term performance based plans | Class A common stock | ||||
Dilutive securities excluded from computation of earnings per share | ||||
Dilutive securities excluded from computation of earnings per share (in shares) | 0.7 | 0.7 | ||
Stock awards | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 3.5 | 2.3 | 2.3 |
Earnings per Share - Basic and
Earnings per Share - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income attributable to EchoStar | |||||||||||
Net income attributable to EchoStar | $ 179,930 | $ 153,357 | $ 152,874 | ||||||||
Less: Net loss attributable to EchoStar Tracking Stock | (1,743) | (10,343) | (12,394) | ||||||||
Net income attributable to EchoStar common stock | $ 38,222 | $ 36,644 | $ 56,133 | $ 50,674 | $ 66,296 | $ 30,102 | $ 33,900 | $ 33,402 | $ 181,673 | $ 163,700 | $ 165,268 |
Weighted-average common shares outstanding - Class A and B common stock: | |||||||||||
Basic (in shares) | 93,795 | 92,397 | 91,190 | ||||||||
Dilutive impact of stock awards outstanding (in shares) | 615 | 1,069 | 1,426 | ||||||||
Diluted (in shares) | 94,410 | 93,466 | 92,616 | ||||||||
Earnings per share: | |||||||||||
Basic (in dollars per share) | $ 0.41 | $ 0.39 | $ 0.60 | $ 0.54 | $ 0.71 | $ 0.33 | $ 0.37 | $ 0.36 | $ 1.94 | $ 1.77 | $ 1.81 |
Diluted (in dollars per share) | $ 0.40 | $ 0.39 | $ 0.60 | $ 0.54 | $ 0.71 | $ 0.32 | $ 0.36 | $ 0.36 | $ 1.92 | $ 1.75 | $ 1.78 |
Hughes Retail Preferred Track52
Hughes Retail Preferred Tracking Stock - Agreement (Details) | Mar. 01, 2014USD ($)satellite$ / sharesshares | Mar. 31, 2014USD ($)satellite | Feb. 28, 2014USD ($) | Dec. 31, 2016USD ($)vote | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 31, 2017 |
Hughes Retail Group Tracking Stock | |||||||
Cash received | $ | $ 0 | $ 0 | $ 7,526,000 | ||||
Hughes Retail Preferred Tracking Stock | |||||||
Hughes Retail Group Tracking Stock | |||||||
Preferred stock, shares authorized (in shares) | shares | 13,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||
Portion of one vote entitled to each share | vote | 0.10 | ||||||
Dividend or other distributions paid on preferred stock | $ | $ 0 | ||||||
Hughes Satellite Systems Corporation (HSSC) | Hughes Retail Preferred Tracking Stock | |||||||
Hughes Retail Group Tracking Stock | |||||||
Preferred stock, shares authorized (in shares) | shares | 300 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||||
DISH Network | Hughes Retail Preferred Tracking Stock | |||||||
Hughes Retail Group Tracking Stock | |||||||
Percentage of economic interest held | 80.00% | ||||||
DISH Network | EchoStar Corporation | |||||||
Hughes Retail Group Tracking Stock | |||||||
Percentage of capital stock held | 6.50% | 6.30% | |||||
DISH Network | EchoStar Corporation | Hughes Retail Group | |||||||
Hughes Retail Group Tracking Stock | |||||||
Percentage of economic interest held | 51.89% | ||||||
DISH Network | Hughes Satellite Systems Corporation (HSSC) | |||||||
Hughes Retail Group Tracking Stock | |||||||
Percentage of capital stock held | 7.50% | 7.50% | |||||
Satellite and Tracking Stock Transaction | EchoStar Corporation | Hughes Retail Group | |||||||
Hughes Retail Group Tracking Stock | |||||||
Percentage of economic interest held | 20.00% | ||||||
Satellite and Tracking Stock Transaction | DISH Network | |||||||
Hughes Retail Group Tracking Stock | |||||||
Cash received | $ | $ 11,400,000 | $ 11,400,000 | |||||
Satellite and Tracking Stock Transaction | DISH Network | Hughes Retail Group | Hughes Retail Preferred Tracking Stock | |||||||
Hughes Retail Group Tracking Stock | |||||||
Percentage of economic interest held | 80.00% | 80.00% | 80.00% | ||||
Satellite and Tracking Stock Transaction | DISH Network | EchoStar and HSSC | |||||||
Hughes Retail Group Tracking Stock | |||||||
Number of owned satellites transferred | satellite | 5 | 5 | |||||
Cash received | $ | $ 11,400,000 | ||||||
Satellite and Tracking Stock Transaction | DISH Network | EchoStar Corporation | Hughes Retail Preferred Tracking Stock | |||||||
Hughes Retail Group Tracking Stock | |||||||
Number of shares issued during the period | shares | 6,290,499 | ||||||
Satellite and Tracking Stock Transaction | DISH Network | EchoStar Corporation | Hughes Retail Group | |||||||
Hughes Retail Group Tracking Stock | |||||||
Percentage of economic interest held | 51.89% | 51.89% | |||||
Satellite and Tracking Stock Transaction | DISH Network | Hughes Satellite Systems Corporation (HSSC) | Hughes Retail Preferred Tracking Stock | |||||||
Hughes Retail Group Tracking Stock | |||||||
Number of shares issued during the period | shares | 81.128 | ||||||
Satellite and Tracking Stock Transaction | DISH Network | Hughes Satellite Systems Corporation (HSSC) | Hughes Retail Group | |||||||
Hughes Retail Group Tracking Stock | |||||||
Percentage of economic interest held | 28.11% | 28.11% | |||||
Subsequent Event | EchoStar Technologies segment | Share Exchange Agreement | DISH Network | |||||||
Hughes Retail Group Tracking Stock | |||||||
Ownership interest acquired by related party (as a percent) | 100.00% |
Hughes Retail Preferred Track53
Hughes Retail Preferred Tracking Stock - Net Assets Transferred (Details) - Satellite and Tracking Stock Transaction $ in Thousands | Feb. 28, 2014USD ($) |
Hughes Retail Group Tracking Stock | |
Transferred net assets | $ 398,095 |
DISH Network | |
Hughes Retail Group Tracking Stock | |
Cash | 11,404 |
Property and equipment, net | 432,080 |
Current liabilities | (6,555) |
Noncurrent liabilities | (38,834) |
Transferred net assets | 398,095 |
DISH Network | EchoStar Corporation | |
Hughes Retail Group Tracking Stock | |
Cash | 0 |
Property and equipment, net | 349,243 |
Current liabilities | (3,479) |
Noncurrent liabilities | (30,121) |
Transferred net assets | 315,643 |
DISH Network | Hughes Satellite Systems Corporation (HSSC) | |
Hughes Retail Group Tracking Stock | |
Cash | 11,404 |
Property and equipment, net | 82,837 |
Current liabilities | (3,076) |
Noncurrent liabilities | (8,713) |
Transferred net assets | $ 82,452 |
Hughes Retail Preferred Track54
Hughes Retail Preferred Tracking Stock - Changes in Shareholders' Equity (Details) - Satellite and Tracking Stock Transaction $ in Thousands | Feb. 28, 2014USD ($) |
Net amount credited to stockholders' equity | |
Transferred net assets | $ 398,095 |
Offering costs, net of tax | (2,912) |
Deferred income taxes | (144,496) |
Reallocation based on relative liquidation values | 0 |
Net increase in stockholders’ equity | 250,687 |
EchoStar Stockholders | |
Net amount credited to stockholders' equity | |
Transferred net assets | 315,643 |
Offering costs, net of tax | (2,302) |
Deferred income taxes | (114,525) |
Reallocation based on relative liquidation values | (35,300) |
Net increase in stockholders’ equity | 163,516 |
Noncontrolling Interest | |
Net amount credited to stockholders' equity | |
Transferred net assets | 82,452 |
Offering costs, net of tax | (610) |
Deferred income taxes | (29,971) |
Reallocation based on relative liquidation values | 35,300 |
Net increase in stockholders’ equity | $ 87,171 |
Other Comprehensive Income (L55
Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other comprehensive income, tax (expense) benefit | |||
Tax effects on foreign currency translation adjustments | $ 0 | ||
Tax effects on unrealized gains or losses on available-for-sale securities | 0 | ||
Cumulative foreign currency translation losses | (135,400,000) | $ (124,300,000) | $ (63,800,000) |
Reclassifications out of accumulated other comprehensive loss | |||
Gains (losses) on marketable investment securities, net | 9,767,000 | (6,443,000) | 41,000 |
Other-than-temporary impairment loss on available-for-sale securities | 0 | 11,226,000 | 0 |
Other, net | 1,750,000 | (2,006,000) | 4,251,000 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassifications out of accumulated other comprehensive loss | |||
Total reclassifications, net of tax and noncontrolling interests | (5,590,000) | 13,080,000 | (41,000) |
Reclassification out of Accumulated Other Comprehensive Income | Recognition of realized gains on marketable investment securities in net income | |||
Reclassifications out of accumulated other comprehensive loss | |||
Gains (losses) on marketable investment securities, net | (5,590,000) | (35,000) | (41,000) |
Reclassification out of Accumulated Other Comprehensive Income | Recognition of other-than-temporary impairment loss on available-for-sale securities in net income | |||
Reclassifications out of accumulated other comprehensive loss | |||
Other-than-temporary impairment loss on available-for-sale securities | 0 | 11,226,000 | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Recognition of foreign currency translation losses in net income | |||
Reclassifications out of accumulated other comprehensive loss | |||
Other, net | $ 0 | $ 1,889,000 | $ 0 |
Investment Securities - Schedul
Investment Securities - Schedule of Investments and Investments in Unconsolidated Entities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Marketable investment securities, restricted cash and cash equivalents, and investments in unconsolidated entities | |||
Marketable investment securities, at fair value | $ 522,516,000 | $ 612,338,000 | |
Restricted marketable investment securities | 12,203,000 | 13,227,000 | |
Total marketable investment securities | 534,719,000 | 625,565,000 | |
Restricted cash and cash equivalents | 723,000 | 7,775,000 | |
Total marketable investment securities, restricted cash and cash equivalents, and investments in unconsolidated entities | 732,661,000 | 842,604,000 | |
Long-term Investments [Abstract] | |||
Cost method | 81,174,000 | 81,174,000 | |
Equity method | 116,045,000 | 128,090,000 | |
Total investments in unconsolidated entities—noncurrent | 197,219,000 | 209,264,000 | |
Corporate bonds | |||
Marketable investment securities, restricted cash and cash equivalents, and investments in unconsolidated entities | |||
Marketable investment securities, at fair value | 402,670,000 | 562,236,000 | |
Strategic equity securities | |||
Marketable investment securities, restricted cash and cash equivalents, and investments in unconsolidated entities | |||
Marketable investment securities, at fair value | 94,816,000 | 38,864,000 | |
Dividend income from strategic equity securities | 0 | 0 | $ 0 |
Trading Securities, Equity | 7,200,000 | 10,300,000 | |
Strategic equity securities | Gain (loss) on marketable investment securities, net | |||
Marketable investment securities, restricted cash and cash equivalents, and investments in unconsolidated entities | |||
Losses related to trading securities | 600,000 | (6,500,000) | |
Other | |||
Marketable investment securities, restricted cash and cash equivalents, and investments in unconsolidated entities | |||
Marketable investment securities, at fair value | $ 25,030,000 | $ 11,238,000 |
Investment Securities - Unreali
Investment Securities - Unrealized Gains (Losses) on Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | $ 512,109 | $ 608,199 |
Unrealized Gains | 13,408 | 7,758 |
Unrealized Losses | (2,762) | (735) |
Total available-for-sale securities | 522,755 | 615,222 |
Corporate bonds | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | 402,472 | 562,849 |
Unrealized Gains | 285 | 10 |
Unrealized Losses | (87) | (623) |
Estimated Fair Value | 402,670 | 562,236 |
Other | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | 32,488 | 24,495 |
Unrealized Gains | 3 | 0 |
Unrealized Losses | (23) | (30) |
Estimated Fair Value | 32,468 | 24,465 |
Strategic equity securities | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | 77,149 | 20,855 |
Unrealized Gains | 13,120 | 7,748 |
Unrealized Losses | (2,652) | (82) |
Estimated Fair Value | $ 87,617 | $ 28,521 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities (Details) $ in Millions | Dec. 31, 2016USD ($) |
Available-for-sale Securities, Debt Maturities [Abstract] | |
Debt securities with contractual maturities of one year or less | $ 426.7 |
Debt securities with contractual maturities exceeding one year | $ 8.4 |
Investment Securities - Availab
Investment Securities - Available-for-Sale Securities in a Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair value of available-for-sale securities in a loss position | ||
Less than 12 months | $ 154,826 | $ 364,160 |
12 months or more | 1,571 | 149,889 |
Total | 156,397 | 514,049 |
Unrealized losses on available-for-sale securities in a loss position | ||
Less than 12 months | (2,760) | (609) |
12 months or more | (2) | (126) |
Total | $ (2,762) | $ (735) |
Investment Securities - Sales o
Investment Securities - Sales of Available-for-Sale Securities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Proceeds from Sale of Available-for-Sale Securities | |||
Realized gains from the sales of available-for-sale securities | $ 5.6 | $ 0.1 | |
Proceeds from sales of available-for-sale securities | $ 80.4 | $ 111.5 | $ 190.5 |
Investment Securities - Fair Va
Investment Securities - Fair Value Measurements (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair value of marketable securities | ||
Total marketable investment securities | $ 534,719,000 | $ 625,565,000 |
Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 402,670,000 | 562,236,000 |
Other | ||
Fair value of marketable securities | ||
Debt securities | 32,468,000 | 24,465,000 |
Strategic equity securities | ||
Fair value of marketable securities | ||
Equity securities | 94,816,000 | 38,864,000 |
Level 3 | ||
Fair value of marketable securities | ||
Fair value of investments | 0 | 0 |
Fair value measurements on recurring basis | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 2,490,168,000 | 840,950,000 |
Total marketable investment securities | 534,719,000 | 625,565,000 |
Fair value measurements on recurring basis | Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 402,670,000 | 562,236,000 |
Fair value measurements on recurring basis | Other | ||
Fair value of marketable securities | ||
Total marketable investment securities | 37,233,000 | 24,465,000 |
Fair value measurements on recurring basis | Strategic equity securities | ||
Fair value of marketable securities | ||
Equity securities | 94,816,000 | 38,864,000 |
Fair value measurements on recurring basis | Level 1 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 62,332,000 | 38,771,000 |
Total marketable investment securities | 108,333,000 | 50,942,000 |
Fair value measurements on recurring basis | Level 1 | Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 0 | 0 |
Fair value measurements on recurring basis | Level 1 | Other | ||
Fair value of marketable securities | ||
Total marketable investment securities | 13,517,000 | 12,078,000 |
Fair value measurements on recurring basis | Level 1 | Strategic equity securities | ||
Fair value of marketable securities | ||
Equity securities | 94,816,000 | 38,864,000 |
Fair value measurements on recurring basis | Level 2 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 2,427,836,000 | 802,179,000 |
Total marketable investment securities | 426,386,000 | 574,623,000 |
Fair value measurements on recurring basis | Level 2 | Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 402,670,000 | 562,236,000 |
Fair value measurements on recurring basis | Level 2 | Other | ||
Fair value of marketable securities | ||
Total marketable investment securities | 23,716,000 | 12,387,000 |
Fair value measurements on recurring basis | Level 2 | Strategic equity securities | ||
Fair value of marketable securities | ||
Equity securities | $ 0 | $ 0 |
Investment Securities - Investm
Investment Securities - Investment in Unconsolidated Entities (Details) - USD ($) $ in Thousands | Aug. 08, 2014 | Aug. 01, 2014 | May 31, 2015 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2008 | Aug. 31, 2014 | Jul. 31, 2012 |
Investments in unconsolidated entities-noncurrent: | ||||||||||||
Dividends received from unconsolidated entities | $ 15,000 | $ 5,000 | $ 7,400 | |||||||||
Equity method investment amount | 116,045 | 128,090 | ||||||||||
Reclassification from accumulated other comprehensive loss for foreign currency translation adjustments | 0 | (1,889) | 0 | |||||||||
Net assets of deconsolidated entities included property and equipment | 0 | 6,651 | 0 | |||||||||
Equity in earnings of unconsolidated affiliates, net | 13,310 | 1,895 | 8,198 | |||||||||
Noncash assets received from Sling TV Holding | 0 | 0 | 34,075 | |||||||||
Additional paid in capital from Sling TV Holding exchange | 8,843 | |||||||||||
Cash contributed to Sling TV Holding | $ 1,636 | $ 64,655 | $ 18,569 | |||||||||
SmarDTV | ||||||||||||
Investments in unconsolidated entities-noncurrent: | ||||||||||||
Ownership interest percentage | 22.50% | |||||||||||
Payments to acquire investments | $ 13,900 | |||||||||||
Equity method investment amount | 20,000 | |||||||||||
Net assets of deconsolidated entities included property and equipment | 6,700 | |||||||||||
Net assets of deconsolidated entities included cash | 800 | |||||||||||
SmarDTV | Other, net | ||||||||||||
Investments in unconsolidated entities-noncurrent: | ||||||||||||
Loss recognized from the deconsolidation of contributed entities | (2,600) | |||||||||||
Loss resulting from changes in fair value | (700) | |||||||||||
Reclassification from accumulated other comprehensive loss for foreign currency translation adjustments | $ (1,900) | |||||||||||
Dish Mexico | ||||||||||||
Investments in unconsolidated entities-noncurrent: | ||||||||||||
Ownership interest percentage | 49.00% | 49.00% | ||||||||||
Equity interest percentage | 51.00% | |||||||||||
Equity investment percent based on assumed dilution | 24.00% | |||||||||||
Equity in earnings of unconsolidated affiliates, net | $ 10,300 | |||||||||||
Sling TV Holding | ||||||||||||
Investments in unconsolidated entities-noncurrent: | ||||||||||||
Ownership interest percentage | 33.00% | |||||||||||
Equity method investment amount | $ 18,000 | |||||||||||
Contribution of cash and noncash assets to Sling TV Holdings | $ 44,700 | |||||||||||
Equity in earnings of unconsolidated affiliates, net | $ (16,500) | $ (10,200) | ||||||||||
Noncash assets received from Sling TV Holding | $ 34,100 | |||||||||||
Non-voting interest in cost method investment percentage | 10.00% | 10.00% | ||||||||||
Non-voting interest amount | $ 1,100 | |||||||||||
Additional paid in capital from Sling TV Holding exchange | $ 8,800 | |||||||||||
Cash contributed to Sling TV Holding | $ 18,600 |
Investment Securities - Inves63
Investment Securities - Investment in TerreStar (Details) - TerreStar Networks Inc. (TerreStar) - Exchangeable Notes - USD ($) | 1 Months Ended | ||
Jan. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2011 | |
Investment disclosures | |||
Fair value of investments | $ 0 | ||
Other, net | |||
Investment disclosures | |||
Gain on investments account for at fair value | $ 800,000 | $ 5,800,000 |
Trade Accounts Receivable (Deta
Trade Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Trade Accounts Receivable | ||
Trade accounts receivable | $ 223,188 | $ 191,725 |
Allowance for doubtful accounts | (13,400) | (12,485) |
Trade accounts receivable - DISH Network | 278,615 | 277,159 |
Total trade accounts receivable, net | 488,403 | 456,399 |
Progress billings offset against contracts in process | 14,600 | 2,900 |
Trade accounts receivable | ||
Trade Accounts Receivable | ||
Trade accounts receivable | 187,018 | 168,714 |
Contracts in process, net | ||
Trade Accounts Receivable | ||
Trade accounts receivable | $ 36,170 | $ 23,011 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory, Net [Abstract] | ||
Finished goods | $ 58,797 | $ 52,839 |
Raw materials | 7,361 | 9,042 |
Work in process | 6,286 | 5,129 |
Total inventory | 72,444 | $ 67,010 |
Adjustment to reduce inventory and related purchase commitments to estimated net realizable value | $ 9,300 |
Property and Equipment - Schedu
Property and Equipment - Schedule of PP&E (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment | $ 6,411,064 | $ 7,076,773 | $ 6,411,064 | |
Accumulated depreciation | (2,998,074) | (3,407,470) | (2,998,074) | |
Property and equipment, net | 3,412,990 | 3,669,303 | 3,412,990 | |
Accumulated depreciation on satellites acquired under capital leases | 268,100 | 328,200 | 268,100 | |
Impairment loss related to building and equipment | $ 0 | 2,400 | $ 0 | |
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 1 year | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 40 years | |||
Land | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment | 41,457 | $ 42,363 | 41,457 | |
Buildings and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment | 367,947 | $ 370,980 | 367,947 | |
Buildings and improvements | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 1 year | |||
Buildings and improvements | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 40 years | |||
Furniture, fixtures, equipment and other | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment | 1,254,325 | $ 1,372,158 | 1,254,325 | |
Furniture, fixtures, equipment and other | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 1 year | |||
Furniture, fixtures, equipment and other | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 12 years | |||
Customer rental equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment | 588,430 | $ 689,579 | 588,430 | |
Customer rental equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 2 years | |||
Customer rental equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 4 years | |||
Satellites - owned | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment | 2,381,120 | $ 2,381,120 | 2,381,120 | |
Satellites - owned | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 2 years | |||
Satellites - owned | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 15 years | |||
Satellites acquired under capital leases | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment | 665,518 | $ 781,761 | 665,518 | |
Satellites acquired under capital leases | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 10 years | |||
Satellites acquired under capital leases | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciable life | 15 years | |||
Construction in progress | ||||
Property, Plant and Equipment [Line Items] | ||||
Total property and equipment | 1,112,267 | $ 1,438,812 | $ 1,112,267 | |
EchoStar Technologies segment | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment loss related to building and equipment | $ 2,400 |
Property and Equipment - Constr
Property and Equipment - Construction in Progress (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Construction in progress | $ 1,438,812 | $ 1,112,267 | |
Capitalized interest related to satellites under construction | 94,395 | 63,808 | $ 23,774 |
Progress amounts for satellite construction, including prepayments under capital leases and launch services costs | |||
Property, Plant and Equipment [Line Items] | |||
Construction in progress | 1,235,577 | 963,103 | |
Satellite related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Construction in progress | 168,929 | 126,373 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Construction in progress | $ 34,306 | $ 22,791 |
Property and Equipment - Deprec
Property and Equipment - Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Depreciation expense | |||
Total depreciation expense | $ 436,654 | $ 452,243 | $ 464,542 |
Satellites | |||
Depreciation expense | |||
Total depreciation expense | 191,729 | 197,469 | 210,763 |
Amortization of satellites under capital lease agreements | 56,200 | 56,200 | 59,700 |
Furniture, fixtures, equipment and other | |||
Depreciation expense | |||
Total depreciation expense | 118,082 | 135,536 | 123,360 |
Customer rental equipment | |||
Depreciation expense | |||
Total depreciation expense | 114,568 | 105,725 | 116,685 |
Buildings and improvements | |||
Depreciation expense | |||
Total depreciation expense | $ 12,275 | $ 13,513 | $ 13,734 |
Property and Equipment - Satell
Property and Equipment - Satellites (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)satellitemi | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Carrying amount | $ 3,669,303,000 | $ 3,412,990,000 | |
Reduction of capital lease obligation recognized as gains | $ 0 | 4,500,000 | $ 0 |
Satellites | |||
Property, Plant and Equipment [Line Items] | |||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | satellite | 18 | ||
Length of satellites utilized in geosynchronous orbit above the equator (in miles) | mi | 22,300 | ||
Number of satellites utilized under capital lease | satellite | 3 | ||
Number of satellites utilized under operating lease | satellite | 1 | ||
SPACEWAY 3 | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 12 years | ||
EchoStar XVII | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 15 years | ||
EchoStar III | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 12 years | ||
EchoStar VI | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 12 years | ||
EchoStar VII | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 3 years | ||
EchoStar VIII | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 12 years | ||
EchoStar IX | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 12 years | ||
EchoStar X | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 7 years | ||
EchoStar XI | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 9 years | ||
EchoStar XII | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 2 years | ||
EchoStar XIV | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 11 years | ||
EchoStar XVI | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 15 years | ||
Nimiq 5 | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 15 years | ||
QuetzSat1 | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 10 years | ||
AMC16 | |||
Property, Plant and Equipment [Line Items] | |||
Capital lease additional term | 1 year | ||
AMC-15 and AMC-16 | |||
Property, Plant and Equipment [Line Items] | |||
Carrying amount | $ 0 | ||
AMC-15 and AMC-16 | Other Income | |||
Property, Plant and Equipment [Line Items] | |||
Reduction of capital lease obligation recognized as gains | $ 0 | $ 4,500,000 | $ 0 |
Eutelsat 65 West A [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciable life | 15 years |
Goodwill, Regulatory Authoriz70
Goodwill, Regulatory Authorizations and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill associated with various acquisitions | ||
Goodwill | $ 510,630 | $ 510,630 |
Hughes segment | ||
Goodwill associated with various acquisitions | ||
Goodwill | 504,200 | 504,200 |
EchoStar Technologies segment | ||
Goodwill associated with various acquisitions | ||
Goodwill | $ 6,400 | $ 6,400 |
Goodwill, Regulatory Authoriz71
Goodwill, Regulatory Authorizations and Other Intangible Assets - Regulatory Authorizations - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets Gross [RollForward] | |||
Balance at the beginning of the period | $ 716,335 | ||
Balance at the end of the period | 530,269 | $ 716,335 | |
Accumulated amortization | |||
Balance at the beginning of the period | (583,682) | ||
Balance at the end of the period | (441,815) | (583,682) | |
Net | |||
Balance at the beginning of the period | 132,653 | ||
Balance at the end of the period | 88,454 | 132,653 | |
Total regulatory authorizations, net | |||
Balance at the beginning of the period | 543,812 | ||
Additions | (4,685) | ||
Currency Translation Adjustment | 5,506 | ||
Balance at the end of the period | 544,633 | 543,812 | |
Amortization of regulatory authorizations | 58,400 | 75,900 | $ 92,100 |
Indefinite Lives | |||
Indefinite lives | |||
Balance at the beginning of the period | 471,657 | ||
Balance at the end of the period | 471,657 | 471,657 | |
Finite lives | |||
Finite-Lived Intangible Assets Gross [RollForward] | |||
Balance at the beginning of the period | 82,007 | ||
Currency Translation Adjustment | 5,952 | ||
Balance at the end of the period | 87,959 | 82,007 | |
Accumulated amortization | |||
Balance at the beginning of the period | (9,852) | ||
Additions | (4,685) | ||
Currency Translation Adjustment | (446) | ||
Balance at the end of the period | (14,983) | (9,852) | |
Net | |||
Balance at the beginning of the period | 72,155 | ||
Additions | (4,685) | ||
Currency Translation Adjustment | 5,506 | ||
Balance at the end of the period | 72,976 | 72,155 | |
Total regulatory authorizations, net | |||
Amortization of regulatory authorizations | $ 4,700 | $ 4,700 | $ 6,100 |
Goodwill, Regulatory Authoriz72
Goodwill, Regulatory Authorizations and Other Intangible Assets- Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other intangible assets | |||
Cost | $ 530,269 | $ 716,335 | |
Accumulated Amortization | (441,815) | (583,682) | |
Carrying Amount | 88,454 | 132,653 | |
Amortization expense | 58,400 | 75,900 | $ 92,100 |
Customer relationships | |||
Other intangible assets | |||
Cost | 293,932 | 293,932 | |
Accumulated Amortization | (238,176) | (213,543) | |
Carrying Amount | $ 55,756 | 80,389 | |
Customer relationships | Weighted-average | |||
Other intangible assets | |||
Weighted Average Useful life | 8 years | ||
Contract-based | |||
Other intangible assets | |||
Cost | $ 69,440 | 255,366 | |
Accumulated Amortization | (69,440) | (251,493) | |
Carrying Amount | $ 0 | 3,873 | |
Contract-based | Weighted-average | |||
Other intangible assets | |||
Weighted Average Useful life | 4 years | ||
Technology-based | |||
Other intangible assets | |||
Cost | $ 137,197 | 137,337 | |
Accumulated Amortization | (125,908) | (111,840) | |
Carrying Amount | $ 11,289 | 25,497 | |
Technology-based | Weighted-average | |||
Other intangible assets | |||
Weighted Average Useful life | 7 years | ||
Trademark portfolio | |||
Other intangible assets | |||
Cost | $ 29,700 | 29,700 | |
Accumulated Amortization | (8,291) | (6,806) | |
Carrying Amount | $ 21,409 | $ 22,894 | |
Trademark portfolio | Weighted-average | |||
Other intangible assets | |||
Weighted Average Useful life | 20 years |
Goodwill, Regulatory Authoriz73
Goodwill, Regulatory Authorizations and Other Intangible Assets - Future Amortization of Intangible Assets (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Estimated future amortization of intangible assets | |
2,017 | $ 30,253 |
2,018 | 22,538 |
2,019 | 21,324 |
2,020 | 15,988 |
2,021 | 9,350 |
Thereafter | 65,997 |
Total | $ 165,450 |
Debt and Capital Lease Obliga74
Debt and Capital Lease Obligations - Schedule of Debt and Capital Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt and Capital Lease Obligations | ||
Fair Value | $ 3,574,172 | $ 2,026,478 |
Subtotal | 3,358,179 | 1,859,527 |
Capital lease obligations | 302,007 | 332,838 |
Total debt and capital lease obligations | 3,660,186 | 2,192,365 |
Less: Current portion | (37,307) | (35,698) |
Long-term debt and capital lease obligations, net of unamortized debt issuance costs | $ 3,622,879 | 2,156,667 |
6 1/2% Senior Secured Notes due 2019 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.50% | |
Other | ||
Debt and Capital Lease Obligations | ||
Carrying Amount | $ 0 | 803 |
Fair Value | 0 | 803 |
Unamortized debt issuance costs | ||
Debt and Capital Lease Obligations | ||
Less: Unamortized debt issuance costs | $ (31,821) | $ (31,276) |
Senior Secured Notes: | 6 1/2% Senior Secured Notes due 2019 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.50% | 6.50% |
Effective Interest Rate | 6.959% | |
Carrying Amount | $ 990,000 | $ 990,000 |
Fair Value | $ 1,084,050 | 1,071,675 |
Senior Secured Notes: | 5 1/4% Senior Secured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 5.25% | |
Effective Interest Rate | 5.316% | |
Carrying Amount | $ 750,000 | 0 |
Fair Value | $ 739,688 | $ 0 |
Senior Unsecured Notes: | 7 5/8% Senior Unsecured Notes due 2021 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 7.625% | 7.625% |
Effective Interest Rate | 8.062% | |
Carrying Amount | $ 900,000 | $ 900,000 |
Fair Value | $ 990,189 | 954,000 |
Senior Unsecured Notes: | 6 5/8% Senior Unsecured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.625% | |
Effective Interest Rate | 6.685% | |
Carrying Amount | $ 750,000 | 0 |
Fair Value | $ 760,245 | $ 0 |
Debt and Capital Lease Obliga75
Debt and Capital Lease Obligations - Debt (Details) - USD ($) | Jun. 12, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 27, 2016 | Jun. 01, 2011 |
Debt and Capital Lease Obligations | ||||||
Loss from partial redemption of debt | $ 0 | $ 5,044,000 | $ 0 | |||
Payments of debt issuance costs | $ (7,097,000) | 0 | 0 | |||
6 1/2% Senior Secured Notes due 2019 | ||||||
Debt and Capital Lease Obligations | ||||||
Interest rate | 6.50% | |||||
6 1/2% Senior Secured Notes due 2019 | Hughes Satellite Systems Corporation (HSSC) | ||||||
Debt and Capital Lease Obligations | ||||||
Principal amount of debt issuance | $ 1,100,000,000 | |||||
Issue price as percent of principal | 100.00% | |||||
Outstanding principal balance | $ 990,000,000 | |||||
Debt redemption price as a percentage of the principal amount | 103.00% | 100.00% | ||||
Debt redeemed | $ 110,000,000 | |||||
Loss from partial redemption of debt | 5,000,000 | |||||
Redemption premium | 3,300,000 | |||||
Write off of related unamortized debt issuance costs | $ 1,700,000 | |||||
Purchase price due to change of control, as percentage of aggregate principal amount | 101.00% | |||||
Percent of debt holders required to call debt | 25.00% | |||||
7 5/8% Senior Unsecured Notes due 2021 | Hughes Satellite Systems Corporation (HSSC) | ||||||
Debt and Capital Lease Obligations | ||||||
Principal amount of debt issuance | $ 900,000,000 | |||||
Issue price as percent of principal | 100.00% | |||||
Outstanding principal balance | $ 900,000,000 | |||||
Debt redemption price as a percentage of the principal amount | 100.00% | |||||
Purchase price due to change of control, as percentage of aggregate principal amount | 101.00% | |||||
Percent of debt holders required to call debt | 25.00% | |||||
5 1/4% Senior Secured Notes due 2026 | ||||||
Debt and Capital Lease Obligations | ||||||
Principal amount of debt issuance | $ 750,000,000 | |||||
Issue price as percent of principal | 100.00% | |||||
Debt redemption price as a percentage of the principal amount | 100.00% | |||||
Purchase price due to change of control, as percentage of aggregate principal amount | 101.00% | |||||
Percent of debt holders required to call debt | 25.00% | |||||
5 1/4% Senior Secured Notes due 2026 | Prior to August 1, 2019 | ||||||
Debt and Capital Lease Obligations | ||||||
Debt redemption price as a percentage of the principal amount | 105.25% | |||||
Potential redemption as a percentage of principal | 35.00% | |||||
5 1/4% Senior Secured Notes due 2026 | Prior to August 1, 2020 | ||||||
Debt and Capital Lease Obligations | ||||||
Debt redemption price as a percentage of the principal amount | 103.00% | |||||
Potential annual redemption, as a percentage of amount outstanding | 10.00% | |||||
6 5/8% Senior Unsecured Notes due 2026 | ||||||
Debt and Capital Lease Obligations | ||||||
Principal amount of debt issuance | $ 750,000,000 | |||||
Issue price as percent of principal | 100.00% | |||||
6 5/8% Senior Unsecured Notes due 2026 | Prior to August 1, 2019 | ||||||
Debt and Capital Lease Obligations | ||||||
Debt redemption price as a percentage of the principal amount | 106.625% | |||||
Potential redemption as a percentage of principal | 35.00% | |||||
6 5/8% Senior Unsecured Notes due 2026 | Hughes Satellite Systems Corporation (HSSC) | ||||||
Debt and Capital Lease Obligations | ||||||
Debt redemption price as a percentage of the principal amount | 100.00% | |||||
Purchase price due to change of control, as percentage of aggregate principal amount | 101.00% | |||||
Percent of debt holders required to call debt | 25.00% | |||||
2026 Senior Secured and Unsecured Notes | ||||||
Debt and Capital Lease Obligations | ||||||
Payments of debt issuance costs | $ (7,100,000) | |||||
Debt default, maximum additional interest per $1,000 principal | 0.025% | |||||
Interest on long-term debt and capital lease obligations | ||||||
Debt and Capital Lease Obligations | ||||||
Debt issuance costs amortized | $ 6,600,000 | $ 6,000,000 | $ 5,800,000 | |||
Senior Secured Notes: | 6 1/2% Senior Secured Notes due 2019 | ||||||
Debt and Capital Lease Obligations | ||||||
Interest rate | 6.50% | 6.50% | ||||
Outstanding principal balance | $ 990,000,000 | $ 990,000,000 | ||||
Senior Secured Notes: | 5 1/4% Senior Secured Notes due 2026 | ||||||
Debt and Capital Lease Obligations | ||||||
Interest rate | 5.25% | |||||
Outstanding principal balance | $ 750,000,000 | 0 | ||||
Senior Unsecured Notes: | 7 5/8% Senior Unsecured Notes due 2021 | ||||||
Debt and Capital Lease Obligations | ||||||
Interest rate | 7.625% | |||||
Senior Unsecured Notes: | 6 5/8% Senior Unsecured Notes due 2026 | ||||||
Debt and Capital Lease Obligations | ||||||
Interest rate | 6.625% | |||||
Outstanding principal balance | $ 750,000,000 | $ 0 |
Debt and Capital Lease Obliga76
Debt and Capital Lease Obligations - Capital Lease Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Future minimum lease payments under capital lease obligations, together with the present value of the net minimum lease payments | |||
2,017 | $ 93,092 | ||
2,018 | 88,923 | ||
2,019 | 88,221 | ||
2,020 | 88,033 | ||
2,021 | 83,995 | ||
Thereafter | 174,240 | ||
Total minimum lease payments | 616,504 | ||
Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments | (188,216) | ||
Net minimum lease payments | 428,288 | ||
Less: Amount representing interest | (126,281) | ||
Present value of net minimum lease payments | 302,007 | ||
Less: Current portion | (37,307) | ||
Long-term portion of capital lease obligations | 264,700 | ||
Sublease rental income | 132,400 | $ 132,400 | $ 132,400 |
Future minimum sublease rental income | $ 480,900 | ||
Weighted-average | |||
Future minimum lease payments under capital lease obligations, together with the present value of the net minimum lease payments | |||
Sublease remaining term | 4 years | ||
Capital lease obligations | Minimum | |||
Capital lease obligation | |||
Effective interest rate | 9.10% | ||
Capital lease obligations | Maximum | |||
Capital lease obligation | |||
Effective interest rate | 11.20% | ||
Capital lease obligations | Weighted-average | |||
Capital lease obligation | |||
Weighted average interest rate | 10.60% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of income (loss) before income taxes | ||||
Domestic | $ 313,203 | $ 224,058 | $ 172,276 | |
Foreign | (26,359) | (2,486) | 6,057 | |
Income before income taxes | 286,844 | 221,572 | 178,333 | |
Current benefit (provision): | ||||
Federal | (4,788) | (165) | (2,593) | |
State | (305) | (9,601) | 9,006 | |
Foreign | (2,911) | (6,303) | (5,455) | |
Total current benefit (provision) | (8,004) | (16,069) | 958 | |
Deferred benefit (provision): | ||||
Federal | (93,681) | (62,572) | (31,905) | |
State | (10,023) | 4,818 | (1,283) | |
Foreign | 5,556 | 1,622 | 1,446 | |
Total deferred provision | (98,148) | (56,132) | (31,742) | |
Total income tax provision, net | $ 23,200 | $ (106,152) | $ (72,201) | $ (30,784) |
Actual tax provision reconciliation to the amounts computed by applying statutory Federal tax rate to income (loss) before taxes | ||||
Statutory rate | 35.00% | 35.00% | 35.00% | |
State income taxes, net of Federal benefit | 4.60% | 2.10% | (0.20%) | |
Permanent differences | 3.20% | 3.60% | 0.60% | |
Tax credits | (6.20%) | (10.10%) | (18.60%) | |
Valuation allowance | 0.00% | 2.80% | (0.90%) | |
Other | 0.40% | (0.80%) | 1.40% | |
Total effective tax rate | 37.00% | 32.60% | 17.30% | |
Deferred tax assets: | ||||
Net operating losses, credit and other carryforwards | 178,925 | $ 178,925 | $ 315,924 | |
Unrealized losses on investments, net | 47,737 | 47,737 | 47,678 | |
Accrued expenses | 39,596 | 39,596 | 34,037 | |
Stock-based compensation | 14,389 | 14,389 | 13,345 | |
Other assets | 15,008 | 15,008 | 9,534 | |
Total deferred tax assets | 295,655 | 295,655 | 420,518 | |
Valuation allowance | (75,372) | (75,372) | (72,131) | |
Deferred tax assets after valuation allowance | 220,283 | 220,283 | 348,387 | |
Deferred tax liabilities: | ||||
Depreciation and amortization | (962,838) | (962,838) | (993,326) | |
Other liabilities | (1,319) | (1,319) | (1,412) | |
Total deferred tax liabilities | (964,157) | (964,157) | (994,738) | |
Total net deferred tax liabilities | (743,874) | (743,874) | (646,351) | |
Deferred Taxes by classification | ||||
Noncurrent portion of net deferred tax liabilities | (743,874) | (743,874) | (646,351) | |
Total net deferred tax liabilities | (743,874) | (743,874) | (646,351) | |
Net operating loss carryforwards | 351,300 | 351,300 | ||
Net operating loss carryforwards attributable to stock-based compensation | 38,400 | 38,400 | ||
Undistributed earnings of foreign subsidiaries | 0 | 0 | ||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||||
Balance as of beginning of period | 62,366 | 44,839 | $ 43,319 | |
Additions based on tax positions related to the current year | 2,132 | 11,748 | 3,806 | |
Additions based on tax positions related to prior years | 3 | 5,779 | 4,643 | |
Reductions based on tax positions related to prior years | (734) | 0 | (81) | |
Reductions based on tax settlements | (265) | 0 | (6,848) | |
Balance as of end of period | 63,502 | 63,502 | 62,366 | $ 44,839 |
Unrecognized tax benefits if recognized, could affect our effective tax rate | 63,500 | 63,500 | $ 62,400 | |
Foreign | ||||
Deferred Taxes by classification | ||||
Net operating loss carryforwards | 115,900 | 115,900 | ||
Federal | ||||
Deferred Taxes by classification | ||||
Tax credit available to offset future tax liabilities | 117,100 | 117,100 | ||
State | ||||
Deferred Taxes by classification | ||||
Tax credit available to offset future tax liabilities | $ 52,600 | $ 52,600 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock and Common Stock (Details) | 12 Months Ended | |||
Dec. 31, 2016voteshares$ / shares | Dec. 31, 2015$ / sharesshares | Mar. 01, 2014shares | Feb. 28, 2014$ / sharesshares | |
Class A common stock | ||||
Stockholders Equity (Deficit) | ||||
Votes per share | vote | 1 | |||
Common stock, shares outstanding (in shares) | 46,711,147 | 45,555,521 | ||
Class B common stock | ||||
Stockholders Equity (Deficit) | ||||
Votes per share | vote | 10 | |||
Number of shares of Class A common stock into which each share of common stock is convertible | 1 | |||
Common stock, shares outstanding (in shares) | 47,687,039 | 47,687,039 | ||
Class C common stock | ||||
Stockholders Equity (Deficit) | ||||
Votes per share | vote | 1 | |||
Votes per share in event of change of control | vote | 10 | |||
Number of shares of Class A common stock into which each share of common stock is convertible | 1 | |||
Common stock, shares outstanding (in shares) | 0 | 0 | ||
Class D common stock | ||||
Stockholders Equity (Deficit) | ||||
Common stock, shares outstanding (in shares) | 0 | 0 | ||
Hughes Retail Preferred Tracking Stock | ||||
Stockholders Equity (Deficit) | ||||
Preferred stock, shares authorized (in shares) | 13,000,000 | 13,000,000 | 13,000,000 | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred stock, shares issued (in shares) | 6,290,499 | 6,290,499 | ||
Hughes Retail Preferred Tracking Stock | DISH Network | ||||
Stockholders Equity (Deficit) | ||||
Preferred stock, shares issued (in shares) | 6,290,499 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Repurchase Program (Details) - Class A common stock - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Common Stock Repurchase Program | |||
Amount of shares authorized for repurchase | $ 500,000,000 | ||
Number of common stock shares repurchased | 0 | 0 | 0 |
Employee Benefit Plans - Employ
Employee Benefit Plans - Employee Stock Purchase Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Purchase Plan | |||
Employee benefit plans | |||
Requisite service period | 3 months | ||
Class A common stock | |||
Employee benefit plans | |||
Number of common stock available for future grant under stock incentive plans (in shares) | 3,800,000 | ||
Class A common stock | Employee Stock Purchase Plan | |||
Employee benefit plans | |||
Number of shares authorized for issue | 2,500,000 | ||
Number of common stock available for future grant under stock incentive plans (in shares) | 400,000 | ||
Maximum allowed purchase under the ESPP | $ 25,000 | ||
Purchase price as percentage of closing market price on the last business day of each calendar quarter under ESPP | 85.00% | ||
Number of shares of common stock purchased under ESPP | 383,000 | 362,000 | 283,000 |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) Employee Savings Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
EchoStar 401(k) Plan | |||
Employee benefit plans | |||
Contribution limit per employee, as a percentage of eligible compensation | 75.00% | ||
Employer matching contribution as a percentage of voluntary employee contributions under 401(k) plan (as a percent) | 50.00% | ||
Percentage of eligible compensation, matched 50% by employer | 6.00% | ||
Percentage of eligible compensation, matched 100% by employer | 3.00% | ||
Employer maximum annual contribution per employee under 401(k) plan | $ 7,500 | ||
Vesting percentage of matching contributions to eligible employees per year | 20.00% | ||
Vesting percentage of matching contributions to eligible employees after specified period of service | 100.00% | ||
Eligibility for employer matching contributions, period of service | 5 years | ||
Matching contributions made by the company during the year | $ 7,800,000 | $ 7,400,000 | $ 6,800,000 |
EchoStar 401(k) Plan | Class A common stock | |||
Employee benefit plans | |||
Discretionary contributions, net of forfeitures, fair value, under 401(k) plan | $ 10,900,000 | $ 10,400,000 | $ 10,200,000 |
Discretionary contributions, Shares, under 401(k) plan | 284,500 | 204,000 | 207,000 |
Roth 401(k) Plan | |||
Employee benefit plans | |||
Contribution limit per employee, as a percentage of eligible compensation | 75.00% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Incentive Plans (Details) - shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class A common stock | ||||
Stock-Based Compensation | ||||
Number of common stock available for future grant under stock incentive plans (in shares) | 3,800,000 | |||
Stock options | ||||
Stock-Based Compensation | ||||
Shares outstanding under stock incentive plans (in shares) | 5,968,763 | 5,893,241 | 6,669,614 | 6,271,058 |
Expiration term | 10 years | |||
Stock options | Minimum | ||||
Stock-Based Compensation | ||||
Vesting period | 3 years | |||
Stock options | Maximum | ||||
Stock-Based Compensation | ||||
Vesting period | 5 years | |||
Restricted stock units | ||||
Stock-Based Compensation | ||||
Restricted stock units (in shares) | 6,667 | 57,328 | 96,768 | 121,877 |
Stock-Based Compensation - Exer
Stock-Based Compensation - Exercise Prices for Stock Options (Details) - Stock options | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Exercise prices for stock options outstanding and exercisable: | |
Number of stock options outstanding (in shares) | shares | 5,968,763 |
Options outstanding, Weighted-average remaining contractual term | 7 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 39.30 |
Number of stock options exercisable (in shares) | shares | 3,551,063 |
Options exercisable, Weighted-average remaining contractual life | 5 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 35.40 |
Range of Exercise Prices $0.00 - $20.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 0 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 20 |
Number of stock options outstanding (in shares) | shares | 196,834 |
Options outstanding, Weighted-average remaining contractual term | 3 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 17.93 |
Number of stock options exercisable (in shares) | shares | 196,834 |
Options exercisable, Weighted-average remaining contractual life | 3 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 17.93 |
Range of Exercise Prices $20.01 - $25.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 20.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 25 |
Number of stock options outstanding (in shares) | shares | 489,947 |
Options outstanding, Weighted-average remaining contractual term | 3 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 20.26 |
Number of stock options exercisable (in shares) | shares | 489,947 |
Options exercisable, Weighted-average remaining contractual life | 3 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 20.26 |
Range of Exercise Prices $25.01 - $30.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 25.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 30 |
Number of stock options outstanding (in shares) | shares | 163,013 |
Options outstanding, Weighted-average remaining contractual term | 3 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 27.80 |
Number of stock options exercisable (in shares) | shares | 128,013 |
Options exercisable, Weighted-average remaining contractual life | 3 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 28.12 |
Range of Exercise Prices $30.01 - $35.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 30.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 35 |
Number of stock options outstanding (in shares) | shares | 365,000 |
Options outstanding, Weighted-average remaining contractual term | 6 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 34.22 |
Number of stock options exercisable (in shares) | shares | 338,000 |
Options exercisable, Weighted-average remaining contractual life | 6 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 34.22 |
Range of Exercise Prices $35.01 - $40.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 35.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 40 |
Number of stock options outstanding (in shares) | shares | 2,528,369 |
Options outstanding, Weighted-average remaining contractual term | 6 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 38.07 |
Number of stock options exercisable (in shares) | shares | 1,811,969 |
Options exercisable, Weighted-average remaining contractual life | 5 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 37.74 |
Range of Exercise Prices $40.01 to $45.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 40.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 45 |
Number of stock options outstanding (in shares) | shares | 415,500 |
Options outstanding, Weighted-average remaining contractual term | 9 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 43.93 |
Number of stock options exercisable (in shares) | shares | 2,000 |
Options exercisable, Weighted-average remaining contractual life | 9 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 43.83 |
Range of Exercise Prices $45.01 to $50.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 45.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 50 |
Number of stock options outstanding (in shares) | shares | 981,100 |
Options outstanding, Weighted-average remaining contractual term | 8 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 47.47 |
Number of stock options exercisable (in shares) | shares | 392,500 |
Options exercisable, Weighted-average remaining contractual life | 7 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 47.51 |
Range of Exercise Prices $50.01 and above | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $ 50 |
Number of stock options outstanding (in shares) | shares | 829,000 |
Options outstanding, Weighted-average remaining contractual term | 8 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 51.90 |
Number of stock options exercisable (in shares) | shares | 191,800 |
Options exercisable, Weighted-average remaining contractual life | 8 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 51.98 |
Stock-Based Compensation - St84
Stock-Based Compensation - Stock Award Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 29, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term performance based plans | ||||
Stock option activity | ||||
Total options outstanding, beginning of period (in shares) | 0 | 623,100 | ||
Total options outstanding, end of period (in shares) | 0 | 0 | 623,100 | |
Weighted-Average Exercise Price | ||||
Total options outstanding, beginning of period (in dollars per share) | $ 0 | $ 25.27 | ||
Total options outstanding, end of period (in dollars per share) | $ 0 | $ 0 | $ 25.27 | |
Stock options | ||||
Stock option activity | ||||
Total options outstanding, beginning of period (in shares) | 5,893,241 | 6,669,614 | 6,271,058 | |
Granted (in shares) | 732,000 | 929,000 | 1,161,000 | |
Exercised (in shares) | (453,182) | (894,071) | (697,544) | |
Forfeited and canceled (in shares) | (203,296) | (811,302) | (64,900) | |
Total options outstanding, end of period (in shares) | 5,968,763 | 5,893,241 | 6,669,614 | |
Exercisable at end of period (in shares) | 3,551,063 | 3,082,241 | 3,013,114 | |
Weighted-Average Exercise Price | ||||
Total options outstanding, beginning of period (in dollars per share) | $ 38.38 | $ 34.02 | $ 30.43 | |
Granted (in dollars per share) | 41.86 | 51.59 | 47.84 | |
Exercised (in dollars per share) | 28.83 | 27.78 | 24.87 | |
Forfeited and canceled (in dollars per share) | 45.15 | 29.45 | 32.65 | |
Total options outstanding, end of period (in dollars per share) | 39.30 | 38.38 | 34.02 | |
Exercisable at end of period (in dollars per share) | $ 35.40 | $ 32.61 | $ 29.66 | |
Share-based compensation additional disclosures | ||||
Tax benefits from stock options exercised | $ 3.3 | $ 7.9 | $ 7.2 | |
Restricted stock units | ||||
Restricted stock unit activity | ||||
Total restricted stock units outstanding, beginning of period (in shares) | 57,328 | 96,768 | 121,877 | |
Granted (in shares) | 0 | 100,000 | 0 | |
Vested (in shares) | (50,661) | (83,992) | (22,877) | |
Forfeited and canceled (in shares) | 0 | (55,448) | (2,232) | |
Total restricted stock units outstanding, end of period (in shares) | 6,667 | 57,328 | 96,768 | |
Weighted - Average Grant Date Fair Value | ||||
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ 42.31 | $ 29.29 | $ 29.93 | |
Granted (in dollars per share) | 0 | 50 | 0 | |
Vested (in dollars per share) | 43.38 | 45.72 | 33.08 | |
Forfeited and canceled (in dollars per share) | 0 | 27.01 | 25.51 | |
Total restricted stock units outstanding, end of period (in dollars per share) | $ 34.22 | $ 42.31 | $ 29.29 | |
Restricted stock units | Vesting Based On Performance Measurements | ||||
Restricted stock unit activity | ||||
Granted (in shares) | 100,000 | |||
Vested (in shares) | (33,334) | (66,666) | ||
Restricted Performance Units | ||||
Restricted stock unit activity | ||||
Total restricted stock units outstanding, beginning of period (in shares) | 33,334 | 55,448 | ||
Total restricted stock units outstanding, end of period (in shares) | 0 | 33,334 | 55,448 | |
Weighted - Average Grant Date Fair Value | ||||
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ 50 | $ 27 | ||
Total restricted stock units outstanding, end of period (in dollars per share) | $ 0 | $ 50 | $ 27 |
Stock-Based Compensation - 2005
Stock-Based Compensation - 2005 LTIP Vesting Period (Details) - LTIP 2005 | 12 Months Ended |
Dec. 31, 2016 | |
LTIP Terms | |
Awards vesting period | 7 years |
Percentage of awards vesting per annum during first four years | 10.00% |
Percentage of awards vesting per annum after first four years | 20.00% |
Stock-Based Compensation - St86
Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation | |||
Total stock-based compensation | $ 15,234 | $ 21,839 | $ 14,683 |
Stock-Based Compensation | |||
Unrecognized compensation expense | $ 27,100 | ||
Future forfeiture rate (as a percent) | 2.00% | ||
Period for recognition of compensation cost | 2 years | ||
Research and development expenses | |||
Stock-Based Compensation | |||
Total stock-based compensation | $ 3,003 | 4,570 | 2,403 |
Selling, general and administrative expenses | |||
Stock-Based Compensation | |||
Total stock-based compensation | $ 12,231 | $ 17,269 | $ 12,280 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation of Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Black-Scholes option valuation model assumptions | |||
Aggregate intrinsic value of stock options outstanding | $ 72.6 | ||
Aggregate intrinsic value of stock options exercisable | $ 56.9 | ||
Stock options | |||
Black-Scholes option valuation model assumptions | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Stock options | Minimum | |||
Black-Scholes option valuation model assumptions | |||
Risk-free interest rate | 1.10% | 1.38% | 1.72% |
Volatility factor | 27.22% | 27.16% | 29.05% |
Expected term of options | 5 years 8 months 24 days | 5 years 3 months 18 days | 5 years 2 months 12 days |
Weighted-average grant-date fair value (in dollars per share) | $ 11.15 | $ 12.25 | $ 13.79 |
Stock options | Maximum | |||
Black-Scholes option valuation model assumptions | |||
Risk-free interest rate | 1.87% | 1.80% | 1.85% |
Volatility factor | 27.37% | 27.85% | 35.02% |
Expected term of options | 5 years 9 months 24 days | 5 years 4 months 24 days | 5 years 3 months 18 days |
Weighted-average grant-date fair value (in dollars per share) | $ 12.49 | $ 15.05 | $ 17.21 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Commitments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Contractual Obligations [Line Items] | |
2,017 | $ 651,624 |
2,018 | 436,262 |
2,019 | 1,317,671 |
2,020 | 289,436 |
2,021 | 1,135,497 |
Thereafter | 2,274,585 |
Total | 6,105,075 |
Long-term debt | |
Contractual Obligations [Line Items] | |
2,017 | 0 |
2,018 | 0 |
2,019 | 990,000 |
2,020 | 0 |
2,021 | 900,000 |
Thereafter | 1,500,000 |
Total | 3,390,000 |
Capital lease obligations | |
Contractual Obligations [Line Items] | |
2,017 | 37,307 |
2,018 | 36,927 |
2,019 | 40,370 |
2,020 | 44,733 |
2,021 | 46,131 |
Thereafter | 96,539 |
Total | 302,007 |
Interest on long-term debt and capital lease obligations | |
Contractual Obligations [Line Items] | |
2,017 | 252,999 |
2,018 | 248,428 |
2,019 | 212,318 |
2,020 | 175,799 |
2,021 | 136,673 |
Thereafter | 461,366 |
Total | 1,487,583 |
Satellite-related obligations | |
Contractual Obligations [Line Items] | |
2,017 | 220,421 |
2,018 | 135,987 |
2,019 | 63,499 |
2,020 | 60,479 |
2,021 | 45,308 |
Thereafter | 206,310 |
Total | 732,004 |
Operating lease obligations | |
Contractual Obligations [Line Items] | |
2,017 | 34,974 |
2,018 | 14,920 |
2,019 | 11,484 |
2,020 | 8,425 |
2,021 | 7,385 |
Thereafter | 10,370 |
Total | 87,558 |
Purchase and other obligations | |
Contractual Obligations [Line Items] | |
2,017 | 105,923 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Total | $ 105,923 |
Commitments and Contingencies89
Commitments and Contingencies - Satellite Leases and Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Satellite-related expenses | $ 144.2 | $ 160.8 | $ 178.8 |
Total rent expense | $ 24.7 | $ 22 | $ 21.3 |
Commitments and Contingencies90
Commitments and Contingencies - Contingencies (Details) | Jan. 26, 2015petition | Aug. 31, 2015claim | Mar. 31, 2011shares | Dec. 31, 2011shares | Jun. 01, 2016claim | Oct. 02, 2013subsidiary | Jul. 31, 2009petition |
Caltech | |||||||
Commitment and Contingencies | |||||||
Number of subsidiaries against lawsuit was filed | subsidiary | 2 | ||||||
CRFD | |||||||
Commitment and Contingencies | |||||||
Number of third-party petitions challenging the validity | petition | 2 | ||||||
Number of unpatentable claims | 4 | ||||||
Number of pending claims | 30 | ||||||
Breach of fiduciary duties | |||||||
Commitment and Contingencies | |||||||
Stock option grants attempted (in shares) | shares | 1,500,000 | ||||||
Stock option grants (in shares) | shares | 800,000 | ||||||
Stock options outstanding (in shares) | shares | 800,000 | ||||||
Technology Development and Licensing, LLC | |||||||
Commitment and Contingencies | |||||||
Number of unpatentable claims | 4 | ||||||
Number of pending claims | 2 | ||||||
Total number of claims | 53 | ||||||
Number of reexamination petitions pending before the United States Patents and Trademark Office | petition | 2 | ||||||
Number of claims cancelled | 42 |
Segment Reporting - Reporting S
Segment Reporting - Reporting Segments (Details) | 12 Months Ended |
Dec. 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of business segments | 3 |
Segment Reporting - Revenue, Ca
Segment Reporting - Revenue, Capital Expenditures, and EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting | |||||||||||
Total revenue | $ 740,393 | $ 742,349 | $ 757,629 | $ 816,359 | $ 790,587 | $ 760,879 | $ 793,595 | $ 798,653 | $ 3,056,730 | $ 3,143,714 | $ 3,445,578 |
EBITDA | 883,531 | 865,353 | 902,581 | ||||||||
Capital expenditures | 698,254 | 703,520 | 680,026 | ||||||||
Interest income and expense, net | (102,381) | (111,637) | (162,247) | ||||||||
Depreciation and amortization | (495,068) | (528,158) | (556,676) | ||||||||
Net income (loss) attributable to noncontrolling interest in HSS Tracking Stock and other noncontrolling interests | 762 | (3,986) | (5,325) | ||||||||
Income before income taxes | 286,844 | 221,572 | 178,333 | ||||||||
Intersegment Elimination | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Hughes segment | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,389,152 | 1,344,945 | 1,325,887 | ||||||||
Hughes segment | Intersegment Elimination | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 3,209 | 2,395 | 1,831 | ||||||||
Hughes segment | Operating segments | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,392,361 | 1,347,340 | 1,327,718 | ||||||||
EBITDA | 427,802 | 396,684 | 356,871 | ||||||||
Capital expenditures | 322,362 | 285,499 | 218,607 | ||||||||
EchoStar Technologies segment | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,248,534 | 1,297,510 | 1,626,826 | ||||||||
EchoStar Technologies segment | Intersegment Elimination | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 663 | 688 | 540 | ||||||||
EchoStar Technologies segment | Operating segments | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,249,197 | 1,298,198 | 1,627,366 | ||||||||
EBITDA | 89,549 | 106,745 | 154,786 | ||||||||
Capital expenditures | 69,744 | 50,593 | 48,616 | ||||||||
EchoStar Satellite Services segment | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 406,970 | 489,842 | 481,579 | ||||||||
EchoStar Satellite Services segment | Intersegment Elimination | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 690 | 749 | 2,876 | ||||||||
EchoStar Satellite Services segment | Operating segments | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 407,660 | 490,591 | 484,455 | ||||||||
EBITDA | 339,496 | 412,607 | 419,442 | ||||||||
Capital expenditures | 58,925 | 101,215 | 28,734 | ||||||||
All Other and Eliminations | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 12,074 | 11,417 | 11,286 | ||||||||
All Other and Eliminations | Intersegment Elimination | |||||||||||
Segment Reporting | |||||||||||
Total revenue | (4,562) | (3,832) | (5,247) | ||||||||
All Other and Eliminations | All Other and Eliminations | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 7,512 | 7,585 | 6,039 | ||||||||
EBITDA | 26,684 | (50,683) | (28,518) | ||||||||
Capital expenditures | $ 247,223 | $ 266,213 | $ 384,069 |
Segment Reporting - Geographic
Segment Reporting - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Geographic Information | |||||||||||
Long-lived assets | $ 4,813,020 | $ 4,600,085 | $ 4,813,020 | $ 4,600,085 | |||||||
Total revenue | 740,393 | $ 742,349 | $ 757,629 | $ 816,359 | 790,587 | $ 760,879 | $ 793,595 | $ 798,653 | 3,056,730 | 3,143,714 | $ 3,445,578 |
United States | |||||||||||
Geographic Information | |||||||||||
Long-lived assets | 4,499,384 | 4,440,590 | 4,499,384 | 4,440,590 | |||||||
Total revenue | 2,623,967 | 2,685,665 | 2,958,539 | ||||||||
Canada and Mexico | |||||||||||
Geographic Information | |||||||||||
Long-lived assets | 16,668 | 1,242 | 16,668 | 1,242 | |||||||
Total revenue | 187,442 | 203,813 | 220,122 | ||||||||
All other | |||||||||||
Geographic Information | |||||||||||
Long-lived assets | $ 296,968 | $ 158,253 | 296,968 | 158,253 | |||||||
Total revenue | $ 245,321 | $ 254,236 | $ 266,917 |
Segment Reporting - Transaction
Segment Reporting - Transactions with Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 740,393 | $ 742,349 | $ 757,629 | $ 816,359 | $ 790,587 | $ 760,879 | $ 793,595 | $ 798,653 | $ 3,056,730 | $ 3,143,714 | $ 3,445,578 |
Hughes segment | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 1,389,152 | 1,344,945 | 1,325,887 | ||||||||
Hughes segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 1,392,361 | 1,347,340 | 1,327,718 | ||||||||
EchoStar Technologies segment | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 1,248,534 | 1,297,510 | 1,626,826 | ||||||||
EchoStar Technologies segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 1,249,197 | 1,298,198 | 1,627,366 | ||||||||
EchoStar Satellite Services segment | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 406,970 | 489,842 | 481,579 | ||||||||
EchoStar Satellite Services segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 407,660 | 490,591 | 484,455 | ||||||||
DISH Network | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 1,599,892 | $ 1,681,485 | $ 1,974,591 | ||||||||
DISH Network | Revenue | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Percentage of total revenue | 52.30% | 53.50% | 57.30% | ||||||||
DISH Network | All Other and Eliminations | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 12,058 | $ 11,404 | $ 11,244 | ||||||||
DISH Network | Hughes segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 107,300 | 105,181 | 112,692 | ||||||||
DISH Network | EchoStar Technologies segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 1,130,985 | 1,141,435 | 1,443,419 | ||||||||
DISH Network | EchoStar Satellite Services segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 349,549 | 423,465 | 407,236 | ||||||||
All other | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 1,456,838 | $ 1,462,229 | $ 1,470,987 | ||||||||
All other | Revenue | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Percentage of total revenue | 47.70% | 46.50% | 42.70% |
Quarterly Financial Data (Una95
Quarterly Financial Data (Unaudited) - Summary of Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 740,393 | $ 742,349 | $ 757,629 | $ 816,359 | $ 790,587 | $ 760,879 | $ 793,595 | $ 798,653 | $ 3,056,730 | $ 3,143,714 | $ 3,445,578 |
Operating income | 106,066 | 81,981 | 89,886 | 86,465 | 91,873 | 88,607 | 94,348 | 81,205 | 364,398 | 356,033 | 328,090 |
Net income attributable to EchoStar common stock | $ 38,222 | $ 36,644 | $ 56,133 | $ 50,674 | $ 66,296 | $ 30,102 | $ 33,900 | $ 33,402 | $ 181,673 | $ 163,700 | $ 165,268 |
Basic earnings per share (in dollars per share) | $ 0.41 | $ 0.39 | $ 0.60 | $ 0.54 | $ 0.71 | $ 0.33 | $ 0.37 | $ 0.36 | $ 1.94 | $ 1.77 | $ 1.81 |
Diluted earnings per share (in dollars per share) | $ 0.40 | $ 0.39 | $ 0.60 | $ 0.54 | $ 0.71 | $ 0.32 | $ 0.36 | $ 0.36 | $ 1.92 | $ 1.75 | $ 1.78 |
Quarterly Financial Data (Una96
Quarterly Financial Data (Unaudited) - Explanatory (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (23,200) | $ 106,152 | $ 72,201 | $ 30,784 |
Related Party Transactions - DI
Related Party Transactions - DISH Network (Details) $ in Thousands | Mar. 01, 2014USD ($)satellite | Feb. 28, 2022 | Apr. 30, 2018 | Mar. 31, 2018 | Feb. 28, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2016 | Jul. 31, 2016 | Nov. 30, 2015 | Nov. 30, 2014 | Oct. 31, 2014 | May 31, 2014 | Mar. 31, 2014USD ($)satellite | Feb. 28, 2014USD ($) | Dec. 31, 2012 | Oct. 31, 2012 | May 31, 2012 | May 31, 2010 | Feb. 28, 2010 | Jan. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2009transponder | Nov. 30, 2008transponder | Dec. 31, 2016USD ($)term | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Aug. 31, 2014 | Aug. 01, 2014 | Feb. 28, 2013transponder | Jul. 31, 2012 | Mar. 31, 2012 | Sep. 30, 2010USD ($) |
Related party transactions | |||||||||||||||||||||||||||||||||
Net proceeds from issuance of Tracking Stock (Note 4) | $ | $ 0 | $ 0 | $ 7,526 | ||||||||||||||||||||||||||||||
Sling TV Holding | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Non-voting interest in cost method investment percentage | 10.00% | 10.00% | |||||||||||||||||||||||||||||||
Equity interest, percentage in joint venture | 33.00% | ||||||||||||||||||||||||||||||||
Hughes Broadband Distribution Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 5 years | ||||||||||||||||||||||||||||||||
Required minimum notice for termination of agreement | 180 days | ||||||||||||||||||||||||||||||||
Automatic renewal period | 1 year | ||||||||||||||||||||||||||||||||
DISH Network | Sling TV Holding | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Ownership interest acquired by related party (as a percent) | 90.00% | 67.00% | |||||||||||||||||||||||||||||||
Voting interests acquired by related party (as a percent) | 100.00% | ||||||||||||||||||||||||||||||||
DISH Network | 2012 Receiver Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 60 days | ||||||||||||||||||||||||||||||||
Agreement term | 1 year | 1 year | 1 year | ||||||||||||||||||||||||||||||
DISH Network | Broadcast Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 60 days | ||||||||||||||||||||||||||||||||
Agreement term | 1 year | ||||||||||||||||||||||||||||||||
DISH Network | Broadcast Agreement for Certain Sports Related Programming | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 10 years | ||||||||||||||||||||||||||||||||
DISH Network | RUS Service Implementation Agreement [Member] | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Grants receivable by related parties | $ | $ 14,100 | ||||||||||||||||||||||||||||||||
DISH Network | EchoStar VII | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Term of renewal option | 1 year | ||||||||||||||||||||||||||||||||
DISH Network | EchoStar VIII capacity leased to Dish Network | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Required minimum notice for termination of agreement | 30 days | ||||||||||||||||||||||||||||||||
DISH Network | EchoStar XVI | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 1 year | 10 years | |||||||||||||||||||||||||||||||
Agreement term from commencement of service date | 4 years | ||||||||||||||||||||||||||||||||
Renewal option reduction | 1 year | ||||||||||||||||||||||||||||||||
Term of renewal option | 5 years | ||||||||||||||||||||||||||||||||
Additional term of renewal option | 5 years | ||||||||||||||||||||||||||||||||
DISH Network | DISH Nimiq 5 Agreement [Member] | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term from commencement of service date | 10 years | ||||||||||||||||||||||||||||||||
Number of DBS transponders available to receive services | 32 | ||||||||||||||||||||||||||||||||
DISH Network | QuetzSat-1 Transponder | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Number of DBS transponders currently receiving services | 24 | ||||||||||||||||||||||||||||||||
Number of DBS transponders currently receiving services subleased back from related party | 5 | ||||||||||||||||||||||||||||||||
DISH Network | Satellite Leasing Service Agreement | Ciel Satellite Holdings Inc [Member] | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 10 years | ||||||||||||||||||||||||||||||||
DISH Network | Satellite and Tracking Stock Transaction | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Net proceeds from issuance of Tracking Stock (Note 4) | $ | $ 11,400 | $ 11,400 | |||||||||||||||||||||||||||||||
DISH Network | Satellite and Tracking Stock Transaction | EchoStar and HSSC | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Number of owned satellites transferred | satellite | 5 | 5 | |||||||||||||||||||||||||||||||
Net proceeds from issuance of Tracking Stock (Note 4) | $ | $ 11,400 | ||||||||||||||||||||||||||||||||
DISH Network | TT&C Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 60 days | ||||||||||||||||||||||||||||||||
Agreement term | 1 year | ||||||||||||||||||||||||||||||||
DISH Network | Meridian Lease Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 1 year | ||||||||||||||||||||||||||||||||
Required minimum notice period for termination of agreement after extension | 30 days | ||||||||||||||||||||||||||||||||
DISH Network | Santa Fe Lease Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 1 year | ||||||||||||||||||||||||||||||||
Required minimum notice period for termination of agreement after extension | 30 days | ||||||||||||||||||||||||||||||||
DISH Network | Gilbert Lease Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 1 year | ||||||||||||||||||||||||||||||||
Required minimum notice for termination of agreement | 30 days | ||||||||||||||||||||||||||||||||
DISH Network | Cheyenne Lease Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Required minimum notice period for termination of agreement after extension | 30 days | ||||||||||||||||||||||||||||||||
DISH Network | Product Support Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 60 days | ||||||||||||||||||||||||||||||||
DISH Network | DISH Online.com Services Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 120 days | ||||||||||||||||||||||||||||||||
Agreement term | 1 year | 1 year | 1 year | 2 years | |||||||||||||||||||||||||||||
Term of renewal option | 1 year | ||||||||||||||||||||||||||||||||
DISH Network | DISH Remote Access Services Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 120 days | ||||||||||||||||||||||||||||||||
Agreement term | 5 years | ||||||||||||||||||||||||||||||||
Automatic renewal period | 1 year | ||||||||||||||||||||||||||||||||
DISH Network | SlingService Services Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 120 days | ||||||||||||||||||||||||||||||||
Agreement term | 5 years | ||||||||||||||||||||||||||||||||
Automatic renewal period | 1 year | ||||||||||||||||||||||||||||||||
DISH Network | Set-Top Box Application Development Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Required minimum notice for termination of agreement | 90 days | ||||||||||||||||||||||||||||||||
Automatic renewal period | 1 year | ||||||||||||||||||||||||||||||||
DISH Network | XiP Encryption Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 30 days | ||||||||||||||||||||||||||||||||
Required minimum notice period for termination of agreement by the reporting entity | 180 days | ||||||||||||||||||||||||||||||||
DISH Network | DBSD North America Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Ownership interest acquired by related party (as a percent) | 100.00% | ||||||||||||||||||||||||||||||||
DISH Network | Remanufactured Receiver and Services Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 1 year | 1 year | 1 year | ||||||||||||||||||||||||||||||
Required minimum notice period for termination of agreement by the reporting entity | 60 days | ||||||||||||||||||||||||||||||||
DISH Network | EchoStar XV capacity leased from Dish Network | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Required minimum notice for termination of agreement | 30 days | ||||||||||||||||||||||||||||||||
DISH Network | Professional Services Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Required minimum notice for termination of agreement | 60 days | ||||||||||||||||||||||||||||||||
Automatic renewal period | 1 year | ||||||||||||||||||||||||||||||||
Required minimum notice for termination of individual service | 30 days | ||||||||||||||||||||||||||||||||
DISH Network | Professional Services Agreement | Subsequent Event | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 1 year | ||||||||||||||||||||||||||||||||
DISH Network | El Paso Lease Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Term of renewal option | 3 years | ||||||||||||||||||||||||||||||||
Number of successive three year renewal options | term | 4 | ||||||||||||||||||||||||||||||||
Telesat Canada | TeleSat Transponder Agreement [Member] | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 15 years | ||||||||||||||||||||||||||||||||
Number of DBS transponders available to receive services | 32 | ||||||||||||||||||||||||||||||||
SES Latin America | QuetzSat-1 Lease Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 10 years | ||||||||||||||||||||||||||||||||
Number of DBS transponders expected to receive services | 32 | ||||||||||||||||||||||||||||||||
Hughes Retail Preferred Tracking Stock | DISH Network | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Percentage of economic interest held | 80.00% | ||||||||||||||||||||||||||||||||
Hughes Retail Group | Hughes Retail Preferred Tracking Stock | DISH Network | Satellite and Tracking Stock Transaction | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Percentage of economic interest held | 80.00% | 80.00% | 80.00% | ||||||||||||||||||||||||||||||
Forecast | DISH Network | DISH Remote Access Services Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 1 year | ||||||||||||||||||||||||||||||||
Forecast | DISH Network | SlingService Services Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 1 year | ||||||||||||||||||||||||||||||||
Forecast | DISH Network | TerreStar Agreement [Member] | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 60 days | ||||||||||||||||||||||||||||||||
Agreement term | 1 year | 1 year | |||||||||||||||||||||||||||||||
Required minimum notice for termination of agreement | 90 days | ||||||||||||||||||||||||||||||||
Forecast | DISH Network | Set-Top Box Application Development Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Agreement term | 1 year | ||||||||||||||||||||||||||||||||
Forecast | DISH Network | DBSD North America Agreement | |||||||||||||||||||||||||||||||||
Related party transactions | |||||||||||||||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 180 days | 120 days | |||||||||||||||||||||||||||||||
Agreement term | 5 years | 1 year |
Related Party Transactions - Ta
Related Party Transactions - Tax Sharing and Patent Cross-License Agreements (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2016parcel | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2011USD ($) | Apr. 30, 2011USD ($)installment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jan. 31, 2017 | Oct. 02, 2013subsidiary | Oct. 01, 2013subsidiary | |
Related party transactions | |||||||||||
Net amount of the allocated tax attributes receivable | $ 90,586 | $ 90,966 | |||||||||
Payments to Acquire Property, Plant, and Equipment | $ 722,341 | $ 809,270 | $ 680,026 | ||||||||
Option Payment to Purchase Satellite | 9,569 | ||||||||||
Caltech | |||||||||||
Related party transactions | |||||||||||
Number of subsidiaries against lawsuit was filed | subsidiary | 2 | ||||||||||
TerreStar-2 Development Agreement | |||||||||||
Related party transactions | |||||||||||
Payments to Acquire Property, Plant, and Equipment | $ 55,000 | ||||||||||
DISH Network | Caltech | |||||||||||
Related party transactions | |||||||||||
Number of subsidiaries against lawsuit was filed | subsidiary | 2 | ||||||||||
DISH Network | TiVo vs. Dish Network and Echostar Corporation | |||||||||||
Related party transactions | |||||||||||
Settlement amount | $ 500,000 | ||||||||||
Initial settlement amount paid | 300,000 | ||||||||||
Aggregate of six annual installment amounts between 2012 and 2017 | $ 200,000 | ||||||||||
Litigation settlement, number of annual installments | installment | 6 | ||||||||||
Portion of the $300 million initial settlement agreement payment paid by EchoStar | $ 10,000 | ||||||||||
Estimated percentage of annual future payments payable by EchoStar | 5.00% | ||||||||||
DISH Network | Professional Services Agreement | |||||||||||
Related party transactions | |||||||||||
Required minimum notice for termination of agreement | 60 days | ||||||||||
DISH Network | Patent Cross-License Agreements | |||||||||||
Related party transactions | |||||||||||
Maximum aggregate payments required under cross license agreements | $ 10,000 | ||||||||||
Maximum additional aggregate payments required under cross license agreements if options are exercised | $ 3,000 | ||||||||||
DISH Network | Personalized Media Communications, Inc. | |||||||||||
Related party transactions | |||||||||||
One-time payment towards settlement under the agreements | $ 5,000 | ||||||||||
DISH Network | Orange New Jersey | |||||||||||
Related party transactions | |||||||||||
Number of parcels sold | parcel | 2 | ||||||||||
Sling TV Holdings | |||||||||||
Related party transactions | |||||||||||
Required minimum notice for termination of agreement | 21 days | ||||||||||
Additional Paid-In Capital | |||||||||||
Related party transactions | |||||||||||
Option Payment to Purchase Satellite | $ 9,569 | ||||||||||
Additional Paid-In Capital | TerreStar-2 Development Agreement | |||||||||||
Related party transactions | |||||||||||
Option Payment to Purchase Satellite | $ (9,600) | ||||||||||
EchoStar Technologies segment | Subsequent Event | DISH Network | Share Exchange Agreement | |||||||||||
Related party transactions | |||||||||||
Ownership interest acquired by related party (as a percent) | 100.00% |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Apr. 30, 2016 | Feb. 29, 2016 | May 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2008 | May 31, 2015 | |
Related party transactions | ||||||||
Amount payable to related party | $ 5,032 | $ 24,682 | ||||||
Amount receivable from related party | 278,615 | 277,159 | ||||||
Hughes Systique Corporation | ||||||||
Related party transactions | ||||||||
Remaining balance of loan | $ 0 | |||||||
Ownership interest in related party (as a percent) | 43.90% | |||||||
Ownership percentage by related party | 25.80% | |||||||
Repayment of loan | $ 300 | $ 300 | 1,500 | |||||
Hughes Systique Corporation | HNS | ||||||||
Related party transactions | ||||||||
Amount agreed to be funded under term loan facility | $ 1,500 | |||||||
Interest rate (as a percent) | 8.00% | 6.00% | ||||||
NagraStar | ||||||||
Related party transactions | ||||||||
Equity interest, percentage in joint venture | 50.00% | |||||||
Purchases from related party | $ 11,900 | 19,600 | $ 22,600 | |||||
Amount payable to related party | $ 1,500 | 2,600 | ||||||
Dish Mexico | ||||||||
Related party transactions | ||||||||
Equity interest, percentage in joint venture | 49.00% | |||||||
Digital set-top boxes and related accessories | $ 52,324 | 66,779 | 60,464 | |||||
Satellite services | 23,347 | 23,347 | 23,327 | |||||
Uplink services | 4,059 | 4,996 | 6,251 | |||||
Receivables from related party | $ 24,200 | 32,900 | ||||||
Deluxe | ||||||||
Related party transactions | ||||||||
Equity interest, percentage in joint venture | 50.00% | |||||||
Receivables from related party | $ 700 | 100 | ||||||
Revenue recognized from equipment and services provided to related party | 3,000 | 2,700 | $ 3,300 | |||||
SmarDTV | ||||||||
Related party transactions | ||||||||
Equity interest, percentage in joint venture | 22.50% | |||||||
Purchases from related party | 6,300 | 3,600 | ||||||
Amount payable to related party | 2,400 | 900 | ||||||
Note receivable from related party | 0 | $ 500 | ||||||
AsiaSat | ||||||||
Related party transactions | ||||||||
Payable to related party | $ 1,450 |
Subsequent Event (Details)
Subsequent Event (Details) | Jan. 31, 2017 |
Share Exchange Agreement | DISH Network | EchoStar Technologies segment | Subsequent Event | |
Subsequent Event [Line Items] | |
Ownership interest acquired by related party (as a percent) | 100.00% |
SCHEDULE I - Parent Company 101
SCHEDULE I - Parent Company Information - Condensed Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2013 |
Current Assets: | |||||
Cash and cash equivalents | $ 2,571,143 | $ 924,240 | $ 549,053 | $ 634,119 | |
Marketable investment securities, at fair value | 522,516 | 612,338 | |||
Other current assets | 10,862 | 16,723 | |||
Total current assets | 3,723,287 | 2,133,659 | |||
Noncurrent Assets: | |||||
Restricted cash and marketable investment securities | 12,926 | 21,002 | |||
Other intangible assets, net | 88,454 | 132,653 | |||
Investments in unconsolidated entities | 197,219 | 209,264 | |||
Other noncurrent assets, net | 171,821 | 154,510 | |||
Total noncurrent assets | 5,285,572 | 5,075,827 | |||
Total assets | 9,008,859 | 7,209,486 | |||
Current Liabilities: | |||||
Accrued expenses and other | 108,519 | 117,005 | |||
Total current liabilities | 531,438 | 526,831 | |||
Total liabilities | 5,002,054 | 3,427,844 | |||
Commitments and Contingencies | 0 | 0 | |||
Stockholders’ Equity: | |||||
Additional paid-in capital | 3,828,677 | 3,776,451 | |||
Accumulated other comprehensive loss | (124,803) | (117,233) | |||
Accumulated earnings | 314,247 | 134,317 | |||
Treasury stock, at cost | (98,162) | (98,162) | |||
Total EchoStar stockholders’ equity | 3,920,065 | 3,695,478 | |||
Total liabilities and stockholders’ equity | $ 9,008,859 | $ 7,209,486 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized (in shares) | 4,000,000,000 | 4,000,000,000 | |||
Class A common stock | |||||
Stockholders’ Equity: | |||||
Common stock | $ 52 | $ 51 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized (in shares) | 1,600,000,000 | 1,600,000,000 | |||
Common stock, shares issued (in shares) | 52,243,465 | 51,087,839 | |||
Common stock, shares outstanding (in shares) | 46,711,147 | 45,555,521 | |||
Class B common stock | |||||
Stockholders’ Equity: | |||||
Common stock | $ 48 | $ 48 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |||
Common stock, shares issued (in shares) | 47,687,039 | 47,687,039 | |||
Common stock, shares outstanding (in shares) | 47,687,039 | 47,687,039 | |||
Class C common stock | |||||
Stockholders’ Equity: | |||||
Common stock | $ 0 | $ 0 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |||
Common stock, shares issued (in shares) | 0 | 0 | |||
Common stock, shares outstanding (in shares) | 0 | 0 | |||
Class D common stock | |||||
Stockholders’ Equity: | |||||
Common stock | $ 0 | $ 0 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |||
Common stock, shares issued (in shares) | 0 | 0 | |||
Common stock, shares outstanding (in shares) | 0 | 0 | |||
Preferred Stock | |||||
Stockholders’ Equity: | |||||
Preferred stock | $ 6 | $ 6 | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | |||
Hughes Retail Preferred Tracking Stock | |||||
Stockholders’ Equity: | |||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | ||
Preferred stock, shares authorized (in shares) | 13,000,000 | 13,000,000 | 13,000,000 | ||
Preferred stock, shares issued (in shares) | 6,290,499 | 6,290,499 | |||
Preferred stock, shares outstanding (in shares) | 6,290,499 | 6,290,499 | |||
EchoStar Corporation | |||||
Current Assets: | |||||
Cash and cash equivalents | $ 498,219 | $ 530,678 | $ 273,646 | $ 399,838 | |
Marketable investment securities, at fair value | 334,593 | 358,995 | |||
Other current assets | 2,258 | 2,560 | |||
Total current assets | 835,070 | 892,233 | |||
Noncurrent Assets: | |||||
Investments in consolidated subsidiaries, including intercompany balances | 2,854,218 | 2,446,916 | |||
Restricted cash and marketable investment securities | 1,106 | 862 | |||
Deferred tax assets | 122,124 | 245,457 | |||
Other intangible assets, net | 0 | 5,221 | |||
Investments in unconsolidated entities | 27,529 | 26,476 | |||
Other receivable - DISH Network | 88,252 | 88,503 | |||
Other noncurrent assets, net | 465 | 0 | |||
Total noncurrent assets | 3,093,694 | 2,813,435 | |||
Total assets | 3,928,764 | 3,705,668 | |||
Current Liabilities: | |||||
Accrued expenses and other | 8,699 | 10,190 | |||
Total current liabilities | 8,699 | 10,190 | |||
Total liabilities | 8,699 | 10,190 | |||
Stockholders’ Equity: | |||||
Additional paid-in capital | 3,828,677 | 3,776,451 | |||
Accumulated other comprehensive loss | (124,803) | (117,233) | |||
Accumulated earnings | 314,247 | 134,317 | |||
Treasury stock, at cost | (98,162) | (98,162) | |||
Total EchoStar stockholders’ equity | 3,920,065 | 3,695,478 | |||
Total liabilities and stockholders’ equity | $ 3,928,764 | $ 3,705,668 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized (in shares) | 4,000,000,000 | 4,000,000,000 | |||
EchoStar Corporation | Class A common stock | |||||
Stockholders’ Equity: | |||||
Common stock | $ 52 | $ 51 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized (in shares) | 1,600,000,000 | 1,600,000,000 | |||
Common stock, shares issued (in shares) | 52,243,465 | 51,087,839 | |||
Common stock, shares outstanding (in shares) | 46,711,147 | 45,555,521 | |||
EchoStar Corporation | Class B common stock | |||||
Stockholders’ Equity: | |||||
Common stock | $ 48 | $ 48 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |||
Common stock, shares issued (in shares) | 47,687,039 | 47,687,039 | |||
Common stock, shares outstanding (in shares) | 47,687,039 | 47,687,039 | |||
EchoStar Corporation | Class C common stock | |||||
Stockholders’ Equity: | |||||
Common stock | $ 0 | $ 0 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |||
Common stock, shares issued (in shares) | 0 | 0 | |||
Common stock, shares outstanding (in shares) | 0 | 0 | |||
EchoStar Corporation | Class D common stock | |||||
Stockholders’ Equity: | |||||
Common stock | $ 0 | $ 0 | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 | |||
Common stock, shares issued (in shares) | 0 | 0 | |||
Common stock, shares outstanding (in shares) | 0 | 0 | |||
EchoStar Corporation | Preferred Stock | |||||
Stockholders’ Equity: | |||||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | |||
EchoStar Corporation | Hughes Retail Preferred Tracking Stock | |||||
Stockholders’ Equity: | |||||
Preferred stock | $ 6 | $ 6 | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |||
Preferred stock, shares authorized (in shares) | 13,000,000 | 13,000,000 | |||
Preferred stock, shares issued (in shares) | 6,290,499 | 6,290,499 | |||
Preferred stock, shares outstanding (in shares) | 6,290,499 | 6,290,499 |
SCHEDULE I - Parent Company 102
SCHEDULE I - Parent Company Information - Condensed Statements of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Costs and Expenses: | |||||||||||
Selling, general and administrative expenses | $ 385,634 | $ 374,116 | $ 372,010 | ||||||||
Depreciation and amortization | 495,068 | 528,158 | 556,676 | ||||||||
Total costs and expenses | 2,692,332 | 2,787,681 | 3,117,488 | ||||||||
Operating income | $ 106,066 | $ 81,981 | $ 89,886 | $ 86,465 | $ 91,873 | $ 88,607 | $ 94,348 | $ 81,205 | 364,398 | 356,033 | 328,090 |
Other Income (Expense): | |||||||||||
Interest income and expense, net | (102,381) | (111,637) | (162,247) | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | 13,310 | 1,895 | 8,198 | ||||||||
Other, net | 1,750 | (2,006) | 4,251 | ||||||||
Total other expense, net | (77,554) | (134,461) | (149,757) | ||||||||
Income tax provision, net | $ 23,200 | (106,152) | (72,201) | (30,784) | |||||||
Net income attributable to EchoStar | 179,930 | 153,357 | 152,874 | ||||||||
Comprehensive Income (Loss) | |||||||||||
Net income | 179,930 | 153,357 | 152,874 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized gains (losses) on available-for-sale securities and other | 9,149 | (12,046) | (9,462) | ||||||||
Recognition of realized gains on available-for-sale securities in net income | (5,590) | (35) | (41) | ||||||||
Total other comprehensive loss, net of tax | (7,756) | (61,697) | (41,438) | ||||||||
Comprehensive income attributable to EchoStar | 172,360 | 91,980 | 111,673 | ||||||||
EchoStar Corporation | |||||||||||
Costs and Expenses: | |||||||||||
Selling, general and administrative expenses | 1,622 | 1,482 | 1,536 | ||||||||
Depreciation and amortization | 5,221 | 16,964 | 16,965 | ||||||||
Total costs and expenses | 6,843 | 18,446 | 18,501 | ||||||||
Operating income | (6,843) | (18,446) | (18,501) | ||||||||
Other Income (Expense): | |||||||||||
Interest income and expense, net | 10,348 | 7,941 | 8,880 | ||||||||
Gains (losses) on marketable investment securities, net | 2,772 | (5,067) | 73 | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | 6,053 | 6,157 | (4,389) | ||||||||
Other, net | (18) | 790 | 5,835 | ||||||||
Total other expense, net | 19,155 | 9,821 | 10,399 | ||||||||
Income (loss) before income taxes and equity in earnings of consolidated subsidiaries, net | 12,312 | (8,625) | (8,102) | ||||||||
Equity in earnings of consolidated subsidiaries, net | 172,466 | 166,731 | 159,871 | ||||||||
Income tax provision, net | (4,848) | (4,749) | 1,105 | ||||||||
Net income attributable to EchoStar | 179,930 | 153,357 | 152,874 | ||||||||
Comprehensive Income (Loss) | |||||||||||
Net income | 179,930 | 153,357 | 152,874 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Unrealized gains (losses) on available-for-sale securities and other | 7,565 | (7,844) | (5,280) | ||||||||
Recognition of realized gains on available-for-sale securities in net income | (2,594) | 5,086 | (73) | ||||||||
Equity in other comprehensive loss of consolidated subsidiaries, net | (12,541) | (58,619) | (35,848) | ||||||||
Total other comprehensive loss, net of tax | (7,570) | (61,377) | (41,201) | ||||||||
Comprehensive income attributable to EchoStar | $ 172,360 | $ 91,980 | $ 111,673 |
SCHEDULE I - Parent Company 103
SCHEDULE I - Parent Company Information - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities: | |||
Net income | $ 179,930 | $ 153,357 | $ 152,874 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 495,068 | 528,158 | 556,676 |
Equity in (earnings) losses of unconsolidated affiliates, net | (13,310) | (1,895) | (8,198) |
Deferred tax provision | 98,148 | 56,132 | 31,742 |
Dividends received from unconsolidated entities | 15,000 | 5,000 | 7,400 |
Changes in noncurrent assets and noncurrent liabilities, net | 9,459 | 1,616 | (8,305) |
Other, net | 24,851 | 22,173 | 4,325 |
Net cash flows from operating activities | 803,343 | 776,451 | 840,131 |
Cash Flows from Investing Activities: | |||
Purchases of marketable investment securities | (921,247) | (536,430) | (1,523,514) |
Sales and maturities of marketable investment securities | 1,001,166 | 1,057,034 | 1,353,157 |
Changes in restricted cash and marketable investment securities | 8,076 | (2,057) | (2,808) |
Other | 2,880 | 72 | 7,125 |
Net cash flows from investing activities | (632,267) | (275,311) | (887,590) |
Cash Flows from Financing Activities: | |||
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan | 27,432 | 38,729 | 28,857 |
Other, net | (5,130) | (4,811) | (1,105) |
Net cash flows from financing activities | 1,475,689 | (120,257) | (35,096) |
Net increase (decrease) in cash and cash equivalents | 1,646,903 | 375,187 | (85,066) |
Cash and cash equivalents, beginning of period | 924,240 | 549,053 | 634,119 |
Cash and cash equivalents, end of period | 2,571,143 | 924,240 | 549,053 |
EchoStar Corporation | |||
Cash Flows from Operating Activities: | |||
Net income | 179,930 | 153,357 | 152,874 |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 5,221 | 16,964 | 16,965 |
Equity in (earnings) losses of unconsolidated affiliates, net | (6,053) | (6,157) | 4,389 |
Equity in earnings of consolidated subsidiaries, net | (172,466) | (166,731) | (159,871) |
Losses (gains) and impairment on marketable investment securities, net | (2,772) | 5,067 | (73) |
Deferred tax provision | 4,848 | 4,749 | (1,105) |
Dividends received from unconsolidated entities | 5,000 | 5,000 | 5,000 |
Changes in current assets and current liabilities, net | 2,093 | 7,205 | 6,389 |
Changes in noncurrent assets and noncurrent liabilities, net | 251 | (566) | 35 |
Other, net | 4,661 | 7,705 | 13,319 |
Net cash flows from operating activities | 20,713 | 26,593 | 37,922 |
Cash Flows from Investing Activities: | |||
Purchases of marketable investment securities | (524,517) | (327,610) | (1,013,699) |
Sales and maturities of marketable investment securities | 548,721 | 701,832 | 1,118,187 |
Contributions to subsidiaries and affiliates, net | (104,099) | (182,943) | (275,545) |
Investments in unconsolidated entities | 0 | 0 | (18,569) |
Changes in restricted cash and marketable investment securities | (244) | 431 | (270) |
Other | (465) | 0 | 0 |
Net cash flows from investing activities | (80,604) | 191,710 | (189,896) |
Cash Flows from Financing Activities: | |||
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan | 27,432 | 38,729 | 28,857 |
Other, net | 0 | 0 | (3,075) |
Net cash flows from financing activities | 27,432 | 38,729 | 25,782 |
Net increase (decrease) in cash and cash equivalents | (32,459) | 257,032 | (126,192) |
Cash and cash equivalents, beginning of period | 530,678 | 273,646 | 399,838 |
Cash and cash equivalents, end of period | $ 498,219 | $ 530,678 | $ 273,646 |
SCHEDULE II - VALUATION AND 104
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 12,485 | $ 14,188 | $ 13,237 |
Charged to Costs and Expenses | 14,389 | 6,712 | 7,242 |
Deductions | (13,474) | (8,415) | (6,291) |
Balance at End of Year | $ 13,400 | $ 12,485 | $ 14,188 |