Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 11, 2019 | Jun. 30, 2018 | |
Entity Registrant Name | EchoStar CORP | ||
Entity Central Index Key | 1,415,404 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
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 Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2.1 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Class A common stock | |||
Entity Common Stock, Shares Outstanding | 47,658,409 | ||
Class B common stock | |||
Entity Common Stock, Shares Outstanding | 47,687,039 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 928,306 | $ 2,431,456 |
Marketable investment securities, at fair value | 2,282,152 | 814,161 |
Trade accounts receivable and contract assets, net (Note 3) | 201,096 | 196,840 |
Trade accounts receivable - DISH Network | 14,200 | 43,295 |
Inventory | 75,379 | 83,595 |
Prepaids and deposits | 61,177 | 54,533 |
Other current assets | 18,539 | 91,671 |
Total current assets | 3,580,849 | 3,715,551 |
Noncurrent assets: | ||
Property and equipment, net | 3,414,908 | 3,465,471 |
Regulatory authorizations, net | 495,654 | 536,936 |
Goodwill | 504,173 | 504,173 |
Other intangible assets, net | 44,231 | 58,955 |
Investments in unconsolidated entities | 262,473 | 161,427 |
Other receivables - DISH Network | 95,114 | 92,687 |
Other noncurrent assets, net | 263,892 | 214,814 |
Total noncurrent assets | 5,080,445 | 5,034,463 |
Total assets | 8,661,294 | 8,750,014 |
Current liabilities: | ||
Trade accounts payable | 121,437 | 108,406 |
Trade accounts payable - DISH Network | 1,698 | 4,753 |
Current portion of long-term debt and capital lease obligations | 959,577 | 40,631 |
Contract liabilities | 72,284 | 65,959 |
Accrued interest | 47,416 | 47,616 |
Accrued compensation | 54,242 | 47,756 |
Accrued taxes | 16,013 | 16,122 |
Accrued expenses and other | 72,470 | 82,647 |
Total current liabilities | 1,345,137 | 413,890 |
Noncurrent liabilities: | ||
Long-term debt and capital lease obligations, net | 2,573,204 | 3,594,213 |
Deferred tax liabilities, net | 465,933 | 436,023 |
Other noncurrent liabilities | 121,546 | 128,503 |
Total noncurrent liabilities | 3,160,683 | 4,158,739 |
Total liabilities | 4,505,820 | 4,572,629 |
Commitments and Contingencies | 0 | 0 |
Stockholders’ equity: | ||
Additional paid-in capital | 3,702,522 | 3,669,461 |
Accumulated other comprehensive loss | (125,100) | |
Accumulated earnings | 694,129 | |
Treasury stock, at cost | (131,454) | (98,162) |
Total EchoStar Corporation stockholders’ equity | 4,140,199 | 4,162,563 |
Other noncontrolling interests | 15,275 | 14,822 |
Total stockholders’ equity | 4,155,474 | 4,177,385 |
Total liabilities and stockholders’ equity | 8,661,294 | |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | 54 | 54 |
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 | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred Stock: | ||
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
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) | 54,142,566 | 53,663,859 |
Common stock, shares outstanding (in shares) | 47,657,645 | 48,131,541 |
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 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total revenue | $ 2,091,363 | $ 1,885,508 | $ 1,810,466 |
Costs and expenses: | |||
Selling, general and administrative expenses | 436,247 | 366,007 | 325,044 |
Research and development expenses | 27,570 | 31,745 | 31,170 |
Depreciation and amortization | 598,178 | 522,190 | 432,904 |
Impairment of long-lived assets | 65,220 | 10,762 | 0 |
Total costs and expenses | 1,908,120 | 1,689,201 | 1,514,303 |
Operating income | 183,243 | 196,307 | 296,163 |
Other income (expense): | |||
Interest income | 80,275 | 44,619 | 21,244 |
Interest expense, net of amounts capitalized | (248,568) | (217,240) | (123,481) |
Gains (losses) on investments, net | (12,207) | 53,453 | 9,767 |
Equity in earnings (losses) of unconsolidated affiliates, net | (5,954) | 16,973 | 10,802 |
Other, net | (4,749) | 6,582 | 2,131 |
Total other income (expense), net | (191,203) | (95,613) | (79,537) |
Income (loss) from continuing operations before income taxes | (7,960) | 100,694 | 216,626 |
Income tax benefit (provision), net | (30,673) | 284,286 | (80,254) |
Net income (loss) from continuing operations | (38,633) | 384,980 | 136,372 |
Net income from discontinued operations | 0 | 8,509 | 44,320 |
Net income (loss) | (38,633) | 393,489 | 180,692 |
Less: Net income attributable to noncontrolling interests | 1,842 | 928 | 762 |
Net income (loss) attributable to EchoStar Corporation | (40,475) | 392,561 | 179,930 |
Less: Net loss attributable to Hughes Retail Preferred Tracking Stock (Note 1) | 0 | (1,209) | (1,743) |
Net income (loss) attributable to EchoStar Corporation common stock | $ (40,475) | $ 393,770 | $ 181,673 |
Earnings per share - Class A and B common stock: | |||
Basic earnings (loss) from continuing operations per share (in dollars per share) | $ (0.42) | $ 4.04 | $ 1.46 |
Total basic earnings (loss) per share (in dollars per share) | (0.42) | 4.13 | 1.94 |
Diluted earnings (loss) from continuing operations per share (in dollars per share) | (0.42) | 3.98 | 1.45 |
Total diluted earnings (loss) per share (in dollars per share) | $ (0.42) | $ 4.07 | $ 1.92 |
Services and other revenue | |||
Total revenue | $ 1,507,259 | $ 1,200,321 | $ 1,100,828 |
Costs and expenses: | |||
Cost of sales - services/equipment (exclusive of depreciation and amortization) | 604,305 | 563,346 | 536,568 |
Services and other revenue | DISH Network | |||
Total revenue | 378,694 | 445,698 | 463,442 |
Equipment | |||
Total revenue | 205,410 | 239,489 | 246,196 |
Costs and expenses: | |||
Cost of sales - services/equipment (exclusive of depreciation and amortization) | $ 176,600 | $ 195,151 | $ 188,617 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (38,633) | $ 393,489 | $ 180,692 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (34,399) | 16,413 | (11,315) |
Unrealized gains (losses) on available-for-sale securities and other | (2,872) | (21,895) | 9,149 |
Foreign currency translation realized to due impairment of long lived assets | 32,136 | 0 | 0 |
Realized gains on available-for-sale securities | 0 | (2,758) | (5,590) |
Other-than-temporary impairment loss on available-for-sale securities | (278) | 3,298 | 0 |
Total other comprehensive income (loss), net of tax | (5,413) | (4,942) | (7,756) |
Comprehensive income (loss) | (44,046) | 388,547 | 172,936 |
Less: Comprehensive income attributable to noncontrolling interests | 453 | 1,337 | 576 |
Comprehensive income (loss) attributable to EchoStar Corporation | $ (44,499) | $ 387,210 | $ 172,360 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Class A and B 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, 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 Comprehensive Income (Loss), Net of Tax, Excluding Other Equity Components | (7,692) | (7,506) | (186) | ||||||
Net income (loss) | 180,692 | 179,930 | (944) | 1,706 | |||||
Other, net | (878) | (814) | (64) | ||||||
Ending balance at Dec. 31, 2016 | 4,006,805 | 100 | 6 | 3,828,677 | (124,803) | 314,247 | (98,162) | 73,910 | 12,830 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Exercise of stock options | 36,505 | 2 | 36,503 | ||||||
Employee benefits | 11,200 | 11,200 | |||||||
Employee Stock Purchase Plan | 8,758 | 8,758 | |||||||
Stock-based compensation | 10,103 | 10,103 | |||||||
Reacquisition and retirement of Tracking Stock pursuant to the Share Exchange (Note 1) | (300,539) | (6) | (227,278) | (73,255) | |||||
R&D tax credits utilized by DISH Network | 1,624 | 1,624 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Excluding Other Equity Components | (5,034) | (5,443) | 409 | ||||||
Net income (loss) | 393,489 | 392,561 | (655) | 1,583 | |||||
Other, net | (34) | (126) | 92 | ||||||
Ending balance at Dec. 31, 2017 | 4,177,385 | 102 | 0 | 3,669,461 | (130,154) | 721,316 | (98,162) | 0 | 14,822 |
Increase (Decrease) in Stockholders' Equity | |||||||||
Exercise of stock options | 4,404 | 4,404 | |||||||
Employee benefits | 7,605 | 7,605 | |||||||
Employee Stock Purchase Plan | 9,368 | 9,368 | |||||||
Stock-based compensation | 9,990 | 9,990 | |||||||
R&D tax credits utilized by DISH Network | 1,822 | 1,822 | |||||||
Other Comprehensive Income (Loss), Net of Tax, Excluding Other Equity Components | (4,851) | (3,462) | (1,389) | ||||||
Net income (loss) | (38,633) | (40,475) | 0 | 1,842 | |||||
Treasury share repurchase | (33,292) | (33,292) | |||||||
Other, net | (1,447) | (128) | (1,951) | 632 | |||||
Ending balance at Dec. 31, 2018 | $ 4,155,474 | $ 102 | $ 0 | $ 3,702,522 | $ (125,100) | $ 694,129 | $ (131,454) | $ 0 | $ 15,275 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (38,633) | $ 393,489 | $ 180,692 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 598,178 | 533,849 | 495,068 |
Impairment of long-lived assets | 65,220 | 10,762 | 0 |
Equity in earnings (losses) of unconsolidated affiliates, net | 6,037 | (15,814) | (13,310) |
Amortization of debt issuance costs | 7,923 | 7,378 | 6,551 |
Gains and losses on investments, net | 12,109 | (53,453) | (9,767) |
Stock-based compensation | 9,990 | 10,103 | 15,234 |
Deferred tax provision (benefit) | 26,327 | (288,577) | 98,148 |
Dividends received from unconsolidated entities | 10,000 | 19,000 | 15,000 |
Proceeds from sale of trading securities | 0 | 8,922 | 7,140 |
Changes in current assets and current liabilities, net: | |||
Trade accounts receivable, net | (17,842) | 421 | (26,942) |
Trade accounts receivable - DISH Network | 29,188 | 235,227 | (1,456) |
Inventory | 5,650 | (19,291) | (4,814) |
Other current assets | (16,261) | (15,352) | 2,263 |
Trade accounts payable | 9,562 | (78,419) | (24,571) |
Trade accounts payable - DISH Network | (3,055) | 731 | (19,650) |
Accrued expenses and other | 23,105 | 11,993 | 55,998 |
Changes in noncurrent assets and noncurrent liabilities, net | (5,070) | (36,975) | 9,459 |
Other, net | 12,094 | 2,898 | 18,300 |
Net cash flows from operating activities | 734,522 | 726,892 | 803,343 |
Cash flows from investing activities: | |||
Purchases of marketable investment securities | (2,973,254) | (855,717) | (921,247) |
Sales and maturities of marketable investment securities | 1,498,463 | 580,235 | 1,009,310 |
Expenditures for property and equipment | (555,141) | (583,211) | (722,341) |
Refunds and other receipts related to property and equipment | 77,524 | 4,311 | 24,087 |
Sale of investment in unconsolidated entity | 1,558 | 17,781 | 0 |
Expenditures for externally marketed software | (31,639) | (31,331) | (23,252) |
Investments in unconsolidated entities | (115,991) | 0 | (1,636) |
Other, net | 0 | 0 | 2,880 |
Net cash flows from investing activities | (2,098,480) | (867,932) | (632,199) |
Cash flows from financing activities: | |||
Proceeds from issuance of long-term debt | 0 | 0 | 1,500,000 |
Payments of debt issuance costs | 0 | (414) | (7,097) |
Repurchase of the 2019 Senior Secured Notes (Note 12) | (70,173) | 0 | 0 |
Purchase of treasury shares (Note 14) | (33,292) | 0 | 0 |
Repayment of debt and capital lease obligations | (41,019) | (37,670) | (40,364) |
Net proceeds from Class A common stock options exercised | 4,424 | 35,536 | 13,065 |
Net proceeds from Class A common stock issued under the Employee Stock Purchase Plan | 9,368 | 8,758 | 14,367 |
Repayment of in-orbit incentive obligations | (5,350) | (5,487) | (5,499) |
Cash exchanged for Tracking Stock (Note 1) | 0 | (651) | 0 |
Other, net | (521) | 0 | 1,217 |
Net cash flows from financing activities | (136,563) | 72 | 1,475,689 |
Effect of exchange rates on cash and cash equivalents | (2,233) | 1,351 | 138 |
Net increase (decrease) in cash and cash equivalents | (1,502,754) | (139,617) | 1,646,971 |
Cash and cash equivalents, including restricted amounts, beginning of period | 2,432,249 | 2,571,866 | 924,895 |
Cash and cash equivalents, including restricted amounts, end of period | 929,495 | 2,432,249 | 2,571,866 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest, net of amounts capitalized | 240,596 | 207,617 | 78,312 |
Cash paid for income taxes | $ 5,209 | $ 11,033 | $ 11,700 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - 6 1/2% Senior Secured Notes due 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Interest rate | 6.50% | |
Senior Secured Notes: | ||
Interest rate | 6.50% |
Organization and Business Activ
Organization and Business Activities | 12 Months Ended |
Dec. 31, 2018 | |
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 and has operated as a separately traded public company from Dish Network Corporation (“DISH”) since 2008. Our Class A common stock is publicly traded on the Nasdaq Global Select Market under the symbol “SATS.” We are a global provider of broadband satellite technologies, broadband internet services for home and small office customers, satellite operations and satellite services. We also deliver innovative network technologies, managed services and various communications solutions for aeronautical, enterprise and government customers. We primarily operate in the following two business segments: • Hughes — which provides broadband satellite technologies and broadband internet services to domestic and international home and small office customers and broadband network technologies, managed services, equipment, hardware, satellite services and communication solutions to domestic and international consumers and aeronautical, enterprise and government customers. The Hughes segment also designs, provides and installs gateway and terminal equipment to customers for other satellite systems. In addition, our Hughes segment designs, develops, constructs and provides telecommunication networks comprising satellite ground segment systems and terminals to mobile system operators and our enterprise customers. • EchoStar Satellite Services (“ESS”) — which uses certain of our owned and leased in-orbit satellites and related licenses to provide satellite operations and satellite services on a full-time and/or occasional-use basis primarily to DISH Network Corporation and its subsidiaries (“DISH Network”), Dish Mexico, S. de R.L. de C.V., a joint venture we entered into in 2008 (“Dish Mexico”), United States (“U.S.”) government service providers, internet service providers, broadcast news organizations, content providers and private enterprise customers. Our operations also include various corporate departments (primarily Executive, Treasury, Strategic Development, Human Resources, IT, Finance, Real Estate, Accounting and Legal) and other activities that have not been assigned to our operating segments such as costs incurred in certain satellite development programs and other business development activities, and gains or losses from certain of our investments. These activities, costs and income, as well as eliminations of intersegment transactions, are accounted for in Corporate and Other in our segment reporting. During 2017, we and certain of our subsidiaries entered into a share exchange agreement with DISH and certain of its subsidiaries. We, and certain of our subsidiaries, received all of the shares of the Hughes Retail Preferred Tracking Stock previously issued by us and one of our subsidiaries (together, the “Tracking Stock”) in exchange for 100% of the equity interests of certain of our subsidiaries that held substantially all of our former EchoStar Technologies businesses and certain other assets (collectively, the “Share Exchange”). Following the consummation of the Share Exchange, we no longer operate our former EchoStar Technologies businesses, the Tracking Stock was retired and is no longer outstanding, and all agreements, arrangements and policy statements with respect to the Tracking Stock terminated. As a result of the Share Exchange, the operating results of the EchoStar Technologies businesses have been presented as discontinued operations and as such, have been excluded from continuing operations and segment results for all periods presented in our accompanying Consolidated Financial Statements . See Note 4 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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% 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. Prior to the consummation of the Share Exchange, noncontrolling interests consisted primarily of the Hughes Retail Preferred Tracking Stock issued by our subsidiary, Hughes Network Systems Corporation (“HSS”), (the “HSS Tracking Stock”) owned by DISH Network as described in Notes 1 and 4. All significant intercompany balances and transactions have been eliminated in consolidation. Reclassification Certain prior period amounts have been reclassified to conform with the current period presentation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. (“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 financial statements. Estimates are used in accounting for, among other things, (i) amortization periods for deferred contract acquisition costs, (ii) inputs used to recognize revenue over time, (iii) allowances for doubtful accounts, (iv) warranty obligations, (v) self-insurance obligations, (vi) deferred taxes and related valuation allowances, (vii) uncertain tax positions, (viii) loss contingencies, (ix) fair value of financial instruments, (x) fair value of stock-based compensation awards, (xi) fair value of assets and liabilities acquired in business combinations, (xii) lease classifications, (xiii) asset impairment testing and (xiv) useful lives and methods for depreciation and amortization of long-lived assets. 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 financial statements. Additionally, 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 thereto are reflected in the period they occur or prospectively if the revised estimate affects future periods. 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. 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 Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements, as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Fair values for our outstanding debt (see Note 12 ) are based on quoted market prices in less active markets and are categorized as Level 2 measurements. Additionally, 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. 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, 2018 and 2017 . As of December 31, 2018 and 2017 , the carrying amounts of our cash and cash equivalents, trade and other receivables, net of allowance for doubtful accounts, accounts payable and accrued liabilities were equal to or approximated their fair value due to their short-term nature or proximity to current market rates. Revenue Recognition Overview We account for our sales and services revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”) , which we adopted on January 1, 2018, using the modified retrospective approach to contracts not completed as of the adoption date. Topic 606 provides a five-step revenue recognition model that we apply to our customer contracts. Under this model we (i) identify the contract with the customer, (ii) identify our performance obligations in the contract, (iii) determine the transaction price for the contract, (iv) allocate the transaction price to our performance obligations and (v) recognize revenue when or as we satisfy our performance obligations. Revenue is recognized upon transfer of control of the promised goods or our performance of the services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We enter into contracts that may include various combinations of products and services, which are generally distinct and accounted for as separate performance obligations. Additionally, a significant portion of our revenue is derived from leases of property and equipment that is reported in Services and other revenue - other and Services and other revenue - DISH Network in our Consolidated Statements of Operations . Certain of our customer contracts contain embedded equipment leases, which we separate from non-lease components of the contract based on the relative standalone selling prices of the lease and non-lease components. Hughes Our Hughes segment provides various communication and networking services to consumer and enterprise customers in both domestic and international markets. Our service contracts typically obligate us to provide substantially the same services on a recurring basis in exchange for fixed recurring fees over the term of the contract. We satisfy such performance obligations over time and recognize revenue ratably as services are rendered over the service period. Certain of our contracts with service obligations provide for fees based on usage, capacity or volume. We satisfy these performance obligations and recognize the related revenue at the point in time or over the period when the services are rendered. Our Hughes segment also sells and leases communications equipment to its customers. Revenue from equipment sales generally is recognized upon shipment of the equipment. Our equipment sales contracts typically include standard product warranties, but generally do not provide for returns or refunds. Revenue for extended warranties is recognized ratably over the extended warranty period. For contracts with multiple performance obligations, we typically allocate the contract’s transaction price to each performance obligation based on their relative standalone selling prices. When the standalone selling price is not observable, our primary method used to estimate standalone selling price is the expected cost plus a margin. Our contracts generally require customer payments to be made at or shortly after the time we transfer control of goods or perform the services. In addition to equipment and service offerings, our Hughes segment also enters into long-term contracts to design, develop, construct and install complex telecommunication networks to customers in its enterprise and mobile satellite systems markets. Revenue from such contracts is generally recognized over time at a measure of progress that depicts the transfer of control of the goods or services to the customer. Depending on the nature of the arrangement, we measure progress toward contract completion using an appropriate input method or output method. Under the input method, we recognize the transaction price as revenue based on the ratio of costs incurred to estimated total costs at completion. Under the output method, revenue and cost of sales are recognized as products are delivered based on the expected profit for the entire agreement. Profit margins on long-term contracts generally 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 generally receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. ESS Our ESS segment provides satellite operations through leasing arrangements and satellite services on a full-time and/or occasional-use basis to DISH Network and Dish Mexico, as well as government service providers, internet service providers, broadcast news organizations, content providers and private enterprise customers. Our ESS segment also provides telemetry, tracking and control (“TT&C”) services for satellites owned by DISH Network and technical consulting services that are billed by the hour. Generally, our service contracts with customers contain a single performance obligation and therefore there is no need to allocate the transaction price. We transfer control and recognize revenue for satellite services at the point in time or over the period when the services are rendered. Other Sales and Value Added Taxes, Universal Service Fees and other taxes that we collect concurrent with revenue producing activities are excluded from revenue. Shipping and handling costs associated with outbound freight are accounted for as a fulfillment cost after control over a product has transferred to the customer and are included in Cost of sales - equipment in our Consolidated Statements of Operations at the time of shipment. Contract Balances Trade Accounts Receivable Trade accounts receivable includes amounts billed and currently due from customers and represents our unconditional rights to consideration arising from our performance under our customer contracts. Trade accounts receivable also includes amounts due from customers under our leasing arrangements. We make ongoing estimates relating to the collectibility of our trade accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make the required payments. In determining the amount of the allowance, we consider historical levels of credit losses and make judgments about the creditworthiness of our customers based on ongoing credit evaluations. Past due trade accounts receivable balances are written off when our internal collection efforts have been unsuccessful. Bad debt expense related to our trade accounts receivable and other contract assets is included in Selling, general and administrative expenses in our Consolidated Statements of Operations . Contract Assets and Contract Liabilities Contract assets represent revenue that we have recognized in advance of billing the customer and are included in Trade accounts receivable and contract assets, net or Other noncurrent assets, net in our Consolidated Balance Sheets based on the expected timing of customer payment. Our contract assets include amounts that we referred to as Contracts in Process in prior periods. Our contract assets typically relate to our long-term contracts where we recognize revenue using the cost-based input method and the revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized under customer contracts and are included in Contract liabilities or Other noncurrent liabilities in our Consolidated Balance Sheets based on the timing of when we expect to recognize revenue. Contract liabilities include amounts that we referred to as deferred revenue in prior periods. We recognize contract liabilities as revenue after all revenue recognition criteria have been met. Contract Acquisition and Fulfillment Costs Contract Acquisition Costs Our contract acquisition costs represent incremental direct costs of obtaining a contract and consist primarily of sales incentives paid to employees and third-party representatives. When we determine that our contract acquisition costs are recoverable, we defer and amortize the costs over the contract term, or over the estimated life of the customer relationship if anticipated renewals are expected and the incentives payable upon renewal are not commensurate with the initial incentive. We amortize contract acquisition costs in proportion to the revenue to which the costs relate. We expense sales incentives as incurred if the expected amortization period is one year or less. Unamortized contract acquisition costs are included in Other noncurrent assets, net in our Consolidated Balance Sheets and related amortization expense is included in Selling, general and administrative expenses in our Consolidated Statements of Operations . Contract Fulfillment Costs We recognize costs to fulfill a contract as an asset when the costs relate directly to a specific contract, the costs generate or enhance our resources that will be used in satisfying future performance obligations and the costs are expected to be recovered. We may incur such costs on certain contracts that require initial setup activities in advance of the transfer of goods or services to the customer. We amortize these costs in proportion to the revenue to which the costs relate. Unamortized contract fulfillment costs are included in Other noncurrent assets, net in our Consolidated Balance Sheets and related amortization expense is included in Cost of sales - services and other in our Consolidated Statements of Operations . 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 reported in other comprehensive income (loss) as Foreign currency translation adjustments in our Consolidated Statements of Comprehensive Income (Loss) . Except in certain uncommon circumstances, 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 . 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, 2018 and 2017 primarily consisted of commercial paper, government bonds, corporate notes, and money market funds. The amortized cost of these investments approximates their fair value. Inventory Inventory is stated at the lower of cost, determined using the first-in, first-out (“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. Capitalized Software Costs Internal-Use Software Costs related to the procurement and development of software for internal-use 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 in our Consolidated Balance Sheets . Externally Marketed Software Costs related to the procurement and development of software for 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 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 or lease 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. Marketable Investment Securities Our marketable investment securities portfolio consists of investments in debt and equity instruments with readily determinable fair values. Debt Securities We classify all of our debt securities as available-for-sale based on our investment strategy for the securities. Generally, we recognize periodic changes in the difference between fair value and amortized cost in Unrealized gains (losses) on available-for-sale securities and other in our Consolidated Statements of Comprehensive Income (Loss) . Realized gains and losses upon sales of debt securities are reclassified from other comprehensive income (loss) and recognized on the trade date in Gains (losses) on investments, net in our Consolidated Statements of Operations . We use the FIFO method to determine the cost basis on sales of debt securities. Interest income from debt securities is reported in Interest income in our Consolidated Statements of Operations . We could realize proceeds from certain investments prior to their contractual maturity if we sell these securities before such maturity. We evaluate our available-for-sale debt securities portfolio periodically to determine whether declines in the fair value of these securities are other-than-temporary. Our evaluation considers, among other things, the length of time and the extent to which the fair value of such security has been lower than amortized cost, market and company-specific factors related to the security and our intent and ability to hold the investment to maturity or when it recovers its value. We generally consider a decline to be other-than-temporary when: (i) we intend to sell the security, (ii) it is more likely than not that we will be required to sell the security before maturity or when it recovers its value, or (iii) we do not expect to recover the amortized cost of the security at maturity. Declines in the fair value of available-for-sale debt securities that are determined to be other-than-temporary are reclassified from other comprehensive income (loss) and recognized in Net income (loss) in our Consolidated Statements of Operations , thus establishing a new cost basis for the investment. From time to time we make strategic investments in corporate debt securities. Generally, we elect to account for these debt securities using the fair value option because it results in consistency in accounting for unrealized gains and losses for all securities in our portfolio of strategic investments. When we elect the fair value option for investments in debt securities, we recognize periodic changes in fair value of these securities in Gains (losses) on investments, net in our Consolidated Statements of Operations . Interest income from these securities is reported in Interest income in our Consolidated Statements of Operations . Equity Securities Prior to January 1, 2018, we classified our marketable equity securities as available-for-sale or trading securities, depending on our investment strategy for the securities. For available-for-sale securities, we recognized periodic changes in the difference between fair value and cost in Unrealized gains (losses) on available-for-sale securities and other in our Consolidated Statements of Comprehensive Income (Loss) . Realized gains and losses upon sale of available-for-sale securities were reclassified from other comprehensive income (loss) and recognized on the trade date in Gains (losses) on investments, net in our Consolidated Statements of Operations . We used the FIFO method to determine the cost basis on sales of available-for-sale securities. For trading securities, we recognized periodic changes in the fair value of the securities in Gains (losses) on investments, net in our Consolidated Statements of Operations . Effective January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments (the “New Investment Standard”) , which established new requirements for investments in equity securities in ASC Topic 321, Investments - Equity Securities . Accordingly, beginning in 2018, we recognize periodic changes in the fair value of all of our equity securities with a readily determinable fair value that are not accounted for using the equity method in Gains (losses) on investments, net in our Consolidated Statements of Operations . We recognize dividend income on equity securities on the ex-dividend date and report such income in Other, net in our Consolidated Statements of Operations . Restricted Marketable Investment Securities Restricted marketable investment securities that are pledged as collateral for our letters of credit or surety bonds are included in Other noncurrent assets, net in our Consolidated Balance Sheets . Restricted marketable securities are accounted for in the same manner as marketable securities that are not restricted, however, the restricted marketable securities are presented differently in the consolidated financial statements. Investments in Unconsolidated Entities Our investments in unconsolidated entities consist of investments in equity securities that are not publicly traded and do not have readily determinable fair values. Equity Method We use the equity method to account for investments when we have the ability to exercise significant influence on the operating decisions of the investee. Such investments in unconsolidated entities 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 (losses) of unconsolidated affiliates, net in our Consolidated Statements of Operations . The carrying amount of such 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 Consolidated Statements of Operations and include the intra-entity profit eliminations within Equity in earnings (losses) of unconsolidated affiliates, net in our Consolidated Statements of Operations . Other Investments Prior to January 1, 2018, we accounted for other investments without a readily determinable fair value using the cost method. In connection with our adoption of the New Investment Standard as of January 1, 2018, we have elected to measure such investments at cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. We consider information in periodic financial statements and other documentation provided by our investees and we may make inquiries of investee management to determine whether observable price changes have occurred. Impairment Considerations We evaluate all of our investments in unconsolidated entities periodically to determine whether events or changes in circumstances have 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, we adjust the carrying amount of the investment to its estimated fair value and recognize the impairment loss in Gains (losses) on investments, net in our Consolidated Statements of Operations . Property and Equipment Property and equipment is stated at cost, less accumulated depreciation. Depreciation is recorded on a straight-line basis over lives ranging from one to 40 years. 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. 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 in our Consolidated Statements of Operations. 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, 2018 and 2017 is assigned to reporting units of our Hughes segment. We test such goodwill for impairment in the second fiscal quarter. The goodwill impairment test involves a comparison of the fair value of a reporting unit with its carrying amount, including goodwill. We typically estimate fair value of 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, we recognize an impairment loss equal to such excess, not to exceed the carrying amount of goodwill. We may bypass the quantitative 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 their useful lives. 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 (see Impairment of Long-lived Assets above). 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. 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 . We report unamortized debt issuance costs as a reduction of the related long-term debt in our Consolidated Balance Sheets . Income Taxes We recognize a provision or benefit for income taxes currently payable or receivable and for income tax amounts |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE RECOGNITION Information About Contract Balances The following table provides information about our contract balances with customers, including amounts for certain embedded leases. As of December 31, 2018 January 1, 2018 (In thousands) Trade accounts receivable: Sales and services $ 154,415 $ 156,794 Leasing 7,990 10,355 Total 162,405 167,149 Contract assets 55,295 34,615 Allowance for doubtful accounts (16,604 ) (12,027 ) Total trade accounts receivable and contract assets, net $ 201,096 $ 189,737 Trade accounts receivable - DISH Network: Sales and services $ 12,274 $ 16,118 Leasing 1,926 27,177 Total trade accounts receivable - DISH Network, net $ 14,200 $ 43,295 Contract liabilities: Current $ 72,284 $ 64,417 Noncurrent 10,133 13,036 Total contract liabilities $ 82,417 $ 77,453 For the year ended December 31, 2018 , we recognized revenue of $52 million that was previously included in the contract liability balance at January 1, 2018. Our bad debt expense was $25 million , $10 million and $14 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Transaction Price Allocated to Remaining Performance Obligations As of December 31, 2018 , the remaining performance obligations for our customer contracts with original expected durations of more than one year was $939 million . We expect to recognize approximately 35.7% of our remaining performance obligations of these contracts as revenue in the next twelve months. This amount excludes agreements with consumer customers in our Hughes segment and our leasing arrangements. Disaggregation of Revenue In the following tables, revenue is disaggregated by segment, primary geographic market, nature of the products and services and transactions with major customers. Geographic Information The following table disaggregates revenue from customer contracts attributed to our North America (the U.S and its territories, Mexico and Canada), South and Central America and other foreign locations as well as by segment, based on the location where the goods or services are provided. All other revenue includes transactions with customers in Asia, Africa, Australia, Europe, and the Middle East. Hughes ESS Corporate and Other Consolidated (In thousands) For the year ended December 31, 2018 North America $ 1,444,628 $ 357,357 $ 17,478 $ 1,819,463 South and Central America 101,632 — — 101,632 All other 170,268 701 (701 ) 170,268 Total revenue $ 1,716,528 $ 358,058 $ 16,777 $ 2,091,363 Nature of Products and Services The following table disaggregates revenue based on the nature of products and services and by segment. Hughes ESS Corporate and Other Consolidated (In thousands) For the year ended December 31, 2018 Equipment $ 119,657 $ — $ — $ 119,657 Services 1,313,059 24,113 18,908 1,356,080 Design, development and construction services 85,753 — — 85,753 Revenue from sales and services 1,518,469 24,113 18,908 1,561,490 Leasing income 198,059 333,945 (2,131 ) 529,873 Total revenue $ 1,716,528 $ 358,058 $ 16,777 $ 2,091,363 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS On February 28, 2017, EchoStar Corporation and certain of our subsidiaries consummated the Share Exchange, pursuant to which, among other things, we received all of the shares of the Tracking Stock in exchange for 100% of the equity interests of certain of our subsidiaries that held substantially all of our former EchoStar Technologies businesses and certain other assets . Following the consummation of the Share Exchange, we no longer operate our former EchoStar Technologies businesses, the Tracking Stock was retired and is no longer outstanding, and all agreements, arrangements and policy statements with respect to the Tracking Stock terminated. As a result of the Share Exchange, the historical financial results of our EchoStar Technologies segment prior to the closing of the Share Exchange are reflected in our accompanying Consolidated Financial Statements as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The noncontrolling interest in HSS Tracking Stock, as reflected in our stockholders’ equity, was extinguished as of February 28, 2017 as a result of the Share Exchange. We have had de minimis activity from our discontinued operations for the year ended December 31, 2018 . The following table presents the operating results of our discontinued operations for the years ended December 31, 2017 and 2016 : For the years 2017 2016 (In thousands) Revenue: Equipment, services and other revenue - DISH Network $ 143,118 $ 1,127,610 Equipment, services and other revenue - other 10,344 118,654 Total revenue 153,462 1,246,264 Costs and expenses: Cost of equipment, services and other 121,967 1,010,421 Selling, general and administrative expenses 5,439 60,590 Research and development expenses 4,635 44,854 Depreciation and amortization 11,659 62,164 Total costs and expenses 143,700 1,178,029 Operating income 9,762 68,235 Other income (expense): Interest expense (15 ) (144 ) Equity in earnings (losses) of unconsolidated affiliates, net (1,159 ) 2,508 Other, net (57 ) (381 ) Total income (expense), net (1,231 ) 1,983 Income from discontinued operations before income taxes 8,531 70,218 Income tax provision (22 ) (25,898 ) Net income from discontinued operations $ 8,509 $ 44,320 Expenditures for property and equipment from our discontinued operations totaled $12 million and $70 million for the years ended December 31, 2017 and 2016 , respectively. Total assets and total liabilities of the discontinued operations were $0.1 million and $1 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE We present basic earnings or losses per share (“EPS”) and diluted EPS for our Class A and Class B common stock. Basic EPS for our Class A and Class B common stock excludes potential dilution and is computed by dividing Net income (loss) attributable to EchoStar Corporation 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 1 million and 4 million shares for the years ended December 31, 2017 and 2016 , respectively. 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, 2018 2017 2016 (In thousands, except per share amounts) Amounts attributable to EchoStar Corporation common stock: Net income from continuing operations $ (40,475 ) $ 385,261 $ 137,353 Net income from discontinued operations — 8,509 44,320 Net income (loss) attributable to EchoStar Corporation common stock $ (40,475 ) $ 393,770 $ 181,673 Weighted-average common shares outstanding: Basic 96,250 95,425 93,795 Dilutive impact of stock awards outstanding — 1,316 615 Diluted 96,250 96,741 94,410 Earnings per share: Basic: Continuing operations $ (0.42 ) $ 4.04 $ 1.46 Discontinued operations — 0.09 0.48 Total basic earnings (loss) per share $ (0.42 ) $ 4.13 $ 1.94 Diluted: Continuing operations $ (0.42 ) $ 3.98 $ 1.45 Discontinued operations — 0.09 0.47 Total diluted earnings (loss) per share $ (0.42 ) $ 4.07 $ 1.92 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Related Tax Effects | 12 Months Ended |
Dec. 31, 2018 | |
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 The changes in the balances of Accumulated other comprehensive loss by component were as follows: Cumulative Foreign Currency Translation Losses Unrealized Gain (Loss) On Available-For-Sale Securities Other Accumulated Other Comprehensive Loss (In thousands) Balance, December 31, 2016 (135,434 ) 10,646 (15 ) (124,803 ) Other comprehensive income before reclassifications 16,004 (21,987 ) 92 (5,891 ) Amounts reclassified to net income — 540 — 540 Other comprehensive income (loss) 16,004 (21,447 ) 92 (5,351 ) Balance, December 31, 2017 (119,430 ) (10,801 ) 77 (130,154 ) Cumulative effect of adoption of the New Investment Standard — 10,467 — 10,467 Balance, January 1, 2018 (119,430 ) (334 ) 77 (119,687 ) Other comprehensive loss before reclassifications (34,399 ) (962 ) (1,910 ) (37,271 ) Amounts reclassified to net income 32,136 (278 ) — 31,858 Other comprehensive loss (2,263 ) (1,240 ) (1,910 ) (5,413 ) Balance, December 31, 2018 (121,693 ) (1,574 ) (1,833 ) (125,100 ) The amounts reclassified to net income related to unrealized gain or loss on available-for-sale securities in the table above are included in Gains (losses) on investments, net in our Consolidated Statements of Operations . Except in unusual circumstances, we do not recognize tax effects on foreign currency translation adjustments because they are not expected to result in future taxable income or deductions. Other comprehensive income includes deferred tax benefits for foreign currency translation losses related to assets that were transferred from a foreign subsidiary to a domestic subsidiary of $7 million for year ended December 31, 2017 |
Marketable Investment Securitie
Marketable Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Marketable Investment Securities | MARKETABLE INVESTMENT SECURITIES Overview Our marketable investment securities portfolio consists of various debt and equity instruments summarized in the table below. Certain of our investments in debt and equity instruments have historically experienced and are likely to continue experiencing volatility. As of December 31, 2018 2017 (In thousands) Marketable investment securities: Debt securities: Corporate bonds $ 1,735,653 $ 542,573 Other debt securities 464,997 142,036 Total debt securities 2,200,650 684,609 Equity securities 90,976 139,571 Total marketable investment securities 2,291,626 824,180 Less: Restricted marketable investment securities 9,474 10,019 Total marketable investment securities - current $ 2,282,152 $ 814,161 Debt Securities Our corporate bond portfolio includes debt instruments issued by individual corporations, primarily in the industrial and financial services industries. Our other debt securities portfolio includes investments in various debt instruments, including U.S. government bonds , commercial paper and mutual funds. A summary of our available-for-sale debt securities, exclusive of securities where we have elected the fair value option, is presented in the table below. Amortized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) As of December 31, 2018 Corporate bonds $ 1,689,093 $ 318 $ (1,896 ) $ 1,687,515 Other debt securities 464,993 7 (3 ) 464,997 Total available-for-sale debt securities $ 2,154,086 $ 325 $ (1,899 ) $ 2,152,512 As of December 31, 2017 Corporate bonds $ 542,861 $ — $ (288 ) $ 542,573 Other debt securities 142,082 — (46 ) 142,036 Total available-for-sale debt securities $ 684,943 $ — $ (334 ) $ 684,609 As of December 31, 2018 , corporate bonds where we have elected the fair value option have a fair value of $48 million . We recognized gains of $4 million on these securities for the year ended December 31, 2018 . We had no debt securities that were accounted for using the fair value option during the year ended December 31, 2017 . As of December 31, 2018 , we have $1.6 billion of available-for-sale debt securities with contractual maturities of one year or less and $512 million with contractual maturities greater than one year. Equity Securities Our marketable equity securities consist primarily of shares of common stock of public companies. Prior to January 1, 2018, we classified our marketable equity securities as available-for-sale or trading securities, depending on our investment strategy for the securities. As of December 31, 2017, our marketable equity securities consisted of available-for-sale securities with a fair value of $87 million and trading securities with a fair value of $53 million . Our available-for-sale securities as of December 31, 2017 reflected an adjusted cost basis of $97 million and unrealized gains and losses of $8 million and $18 million , respectively. Substantially all unrealized losses on our available-for-sale securities related to securities that were in a continuous loss position for less than 12 months. We recognized a $3 million other-than-temporary impairment for the year ended December 31, 2017 on one of our available-for-sale securities which had experienced a decline in market value as a result of adverse developments during the year ended December 31, 2017. For the years ended December 31, 2017 and 2016, Gains (losses) on investments, net in our Consolidated Statements of Operations included gains of $43 million and $1 million , respectively, related to trading securities that we held as of December 31, 2017 and 2016, respectively. The fair values of our trading securities were $47 million and $7 million as of December 31, 2017 and 2016, respectively. Upon adoption of the New Investment Standard as of January 1, 2018 (see Note 2 ), we account for investments in equity securities at their fair value and we recognize unrealized gains and losses in Gains (losses) on investments, net in our Consolidated Statements of Operations . For the year ended December 31, 2018 , Gains (losses) on investments, net in our Consolidated Statements of Operations included net losses of $17 million related to equity securities that we held as of December 31, 2018 . The fair value of our equity securities was $91 million as of December 31, 2018. Sales of Available-for-Sale Securities Proceeds from sales of our available-for-sale securities, including securities accounted for using the fair value option, were $151 million , $31 million and $80 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. We recognized gains as a result of such sales of nil , $3 million and $6 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Sales of securities accounted for using the fair value option do not result in gains or losses because we recognize unrealized gains and losses on such securities prior to the time of sale. Fair Value Measurements Our marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of December 31, 2018 and 2017 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of December 31, 2018 2017 Level 1 Level 2 Total Level 1 Level 2 Total (In thousands) Debt securities: Corporate bonds $ — $ 1,735,653 $ 1,735,653 $ — $ 542,573 $ 542,573 Other debt securities 9,474 455,523 464,997 13,311 128,725 142,036 Total debt securities 9,474 2,191,176 2,200,650 13,311 671,298 684,609 Equity securities 85,298 5,678 90,976 133,736 5,835 139,571 Total marketable investment securities $ 94,772 $ 2,196,854 $ 2,291,626 $ 147,047 $ 677,133 $ 824,180 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Inventory | INVENTORY Our inventory consisted of the following: As of December 31, 2018 2017 (In thousands) Raw materials $ 4,856 $ 5,484 Work-in-process 13,901 7,442 Finished goods 56,622 70,669 Total inventory $ 75,379 $ 83,595 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 (In thousands) Land — $ 33,606 $ 33,713 Buildings and improvements 1 to 40 174,227 185,148 Furniture, fixtures, equipment and other 1 to 12 812,566 736,533 Customer rental equipment 2 to 4 1,159,977 929,775 Satellites - owned 2 to 15 2,816,628 3,064,391 Satellites - acquired under capital leases 10 to 15 1,051,110 916,820 Construction in progress — 307,026 260,220 Total property and equipment 6,355,140 6,126,600 Accumulated depreciation (2,940,232 ) (2,661,129 ) Property and equipment, net $ 3,414,908 $ 3,465,471 As of December 31, 2018 and 2017 , accumulated depreciation included amounts for satellites acquired under capital leases of $468 million and $394 million , respectively. Construction in progress consisted of the following: As of December 31, 2018 2017 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 277,583 $ 211,765 Satellite related equipment 13,001 28,358 Other 16,442 20,097 Construction in progress $ 307,026 $ 260,220 Construction in progress as of December 31, 2018 included our EchoStar XXIV satellite, which is expected to launch in 2021. In August 2017, we entered into a contract for the design and construction of the EchoStar XXIV, a new, next-generation, high throughput geostationary satellite, with a planned 2021 launch. The EchoStar XXIV satellite is primarily intended to provide additional capacity for our HughesNet service in North, Central and South America as well as aeronautical and enterprise broadband services. The Federal Communications Commission (“FCC”) granted authorization to construct, deploy and operate the EchoStar XXIV satellite. In the second half of 2018, Maxar Technologies Inc. (“Maxar”) , the parent company of Space Systems/Loral (“SSL”), the manufacturer of our EchoStar XXIV satellite, announced that it was reviewing strategic alternatives for its geostationary communications satellite business to improve its financial performance and that it was in active discussions with potential buyers of the business. SSL has indicated to us that it intends to meet its contractual obligations regarding the timely manufacture and delivery of the EchoStar XXIV satellite. However, if SSL or any potential successor fails to meet or is delayed in meeting these obligations for any reason, including if Maxar decides to discontinue, wind down or otherwise significantly modify its geostationary communications satellite business, such failure could have a material adverse impact on our business operations, future revenues, financial position and prospects, completing the manufacture of the EchoStar XXIV satellite and our planned expansion of satellite broadband services throughout North, South and Central America. We recorded capitalized interest related to our satellites, satellite payloads and related ground facilities under construction of $18 million , $52 million and $94 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Depreciation expense associated with our property and equipment consisted of the following: For the years ended December 31, 2018 2017 2016 (In thousands) Buildings and improvements $ 11,596 $ 17,285 $ 7,505 Furniture, fixtures, equipment and other 83,746 72,387 64,767 Customer rental equipment 174,749 146,562 114,568 Satellites 285,206 239,072 191,729 Total depreciation expense $ 555,297 $ 475,306 $ 378,569 Satellites depreciation expense includes amortization of satellites under capital lease agreements of $76 million , $66 million and $56 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Satellites As of December 31, 2018 , our satellite fleet consisted of 18 satellites, 13 of which are owned and five of which are leased. They are all 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. We depreciate our leased satellites on a straight-line basis over their respective lease terms. Our operating satellite fleet consists of both owned and leased satellites detailed in the table below as of December 31, 2018 . 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 XIX Hughes December 2016 97.1 W 15 EchoStar VII (2)(3)(4) ESS February 2002 119 W 3 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 86.4 W 2 EchoStar XIV (2)(3) ESS March 2010 119 W 11 EchoStar XVI (2) ESS November 2012 61.5 W 15 EchoStar XXI Corporate and Other June 2017 10.25 E 15 EchoStar XXIII Corporate and Other March 2017 45 W 15 EUTELSAT 10A (“W2A”) (6) Corporate and Other April 2009 10 E — Capital Leases: Eutelsat 65 West A Hughes March 2016 65 W 15 Telesat T19V Hughes July 2018 63 W 15 Nimiq 5 (2) ESS September 2009 72.7 W 15 QuetzSat-1 (2) ESS September 2011 77 W 10 EchoStar 105/SES-11 ESS October 2017 105 W 15 (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 (the “Hughes Acquisition”). (2) See Note 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 20 ). (4) Fully depreciated assets as of December 31, 2018. (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 I and EchoStar VI. The EchoStar I and EchoStar VI satellites were removed from their orbital locations and retired from commercial service in January 2018 and May 2018, respectively. The retirement of these satellites has not had, and is not expected to have, a material impact on our results of operations or financial position. EchoStar 105/SES-11. $77 million receivable from SES in Other current assets in the Consolidated Balance Sheets , representing capitalized costs allocable to certain satellite payloads controlled by SES, and we reduced our carrying amount of the satellite by such amount. In January 2018, we received payment from SES for the receivable plus accrued interest. Our leased Ku-band payload on the EchoStar 105/SES-11 satellite has replaced the capacity we had on the AMC-15 satellite. $77 million receivable from SES in Other current assets in the Consolidated Balance Sheets , representing capitalized costs allocable to certain satellite payloads controlled by SES, and we reduced our carrying amount of the satellite by such amount. In January 2018, we received payment from SES for the receivable plus accrued interest. Our leased Ku-band payload on the EchoStar 105/SES-11 satellite has replaced the capacity we had on the AMC-15 satellite. The EchoStar 105/SES-11 satellite was launched in October 2017 and was placed into service in November 2017 at the 105 degree west longitude orbital location. Pursuant to agreements that we entered into in August 2014, we funded substantially all construction, launch and other costs associated with the EchoStar 105/SES-11 satellite and transferred the C-, Ku- and Ka-band payloads to two affiliates of SES Americom, Inc. (“SES”) after the launch date, while retaining the right to use the entire Ku-band payload on the satellite for an initial ten-year term, with an option for us to renew the agreement on a year-to-year basis. In October 2017, we recorded a $77 million receivable from SES in Other current assets in the Consolidated Balance Sheets , representing capitalized costs allocable to certain satellite payl oads controlled by SES, and we reduced our carrying amount of the satellite by such amount. In January 2018, we received payment from SES for the receivable plus accrued interest. Our leased Ku-band payload on the EchoStar 105/SES-11 satellite has replaced the capacity we had on the AMC-15 satellite. Telesat T19V. In September 2015, we entered into agreements pursuant to which affiliates of Telesat Canada will provide to us Ka-band capacity on the Telesat T19V satellite at the 63 degree west longitude orbital location for a 15-year term. The Telesat T19V satellite was launched in July 2018 and placed into service in October 2018. This satellite augments the capacity being provided by the EUTELSAT 65 West A and EchoStar XIX satellites in Central and South America. Satellite Anomalies and Impairments Our satellites may experience anomalies from time to time, some of which may have a significant adverse effect on their remaining useful lives, the commercial operation of the satellites or our operating results or financial position. We are not aware of any anomalies with respect to our owned or leased satellites that have had any such significant adverse effect during the year ended December 31, 2018 . There can be no assurance, however, that anomalies will not have any such adverse effects 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 satellites were to fail. The EchoStar X satellite experienced anomalies in the past which affected seven solar array circuits. In December 2017, the satellite experienced anomalies which affected one additional solar array circuit reducing the number of functional solar array circuits to 16. As a result of these anomalies, we had a reduction in revenue of $4 million for the year ended December 31, 2018 . We historically have not carried in-orbit insurance on our satellites because we have assessed that the cost of insurance is not economical 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. Our 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, 2018 | |
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, 2018 and 2017 , all of our goodwill was assigned to reporting units of our Hughes segment. We test this goodwill for impairment annually in the second quarter. Based on our impairment testing in the second quarter of 2018 , our goodwill is considered to be not impaired. Regulatory Authorizations Regulatory Authorizations included amounts with both finite and indefinite useful lives, as follows: As of Additions Impairment Currency Translation Adjustment As of (In thousands) Finite useful lives: Cost $ 92,621 $ — $ (37,476 ) $ (8,358 ) $ 46,787 Accumulated amortization (21,342 ) (5,190 ) 7,848 1,894 (16,790 ) Net 71,279 (5,190 ) (29,628 ) (6,464 ) 29,997 Indefinite lives 465,657 — — — 465,657 Total regulatory authorizations, net $ 536,936 $ (5,190 ) $ (29,628 ) $ (6,464 ) $ 495,654 Amortization expense for the Regulatory Authorizations with finite lives was $5 million for each of the years ended December 31, 2018 , 2017 and 2016 , respectively. Prior to the fourth quarter of 2017, our Regulatory Authorizations with indefinite lives included $6 million for contractual rights to utilize certain frequencies, in addition to those specified in the Brazilian license, at the 45 degree west longitude orbital location. We acquired such contractual rights in 2012 and have evaluated potential opportunities to utilize the frequencies in conjunction with our Brazilian license. We determined in the fourth quarter of 2017 that certain actions required to utilize the frequencies had become impractical with the passage of time. As a result of these circumstances, we determined that the fair value of such contractual rights was de minimis and we recognized a $6 million impairment loss in our ESS segment in the fourth quarter of 2017. In January 2019, we determined that we are not able to develop a business using our 45 degree west longitude regulatory authorization. We determined that the fair value of this authorization and certain related ground infrastructure have a fair value that is de minimus and we have recognized a loss on those assets of $33 million . In addition we have included a loss related to foreign currency of $32 million as a result of the in-substance liquidation of our business related to the 45 degree west longitude regulatory authorization. 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, 2018 2017 Cost Accumulated Amortization Carrying Amount Cost Accumulated Amortization Carrying Amount (In thousands) Customer relationships 8 $ 270,300 $ (244,787 ) $ 25,513 $ 270,300 $ (231,642 ) $ 38,658 Technology-based 6 61,283 (61,004 ) 279 61,300 (60,927 ) 373 Trademark portfolio 20 29,700 (11,261 ) 18,439 29,700 (9,776 ) 19,924 Total other intangible assets $ 361,283 $ (317,052 ) $ 44,231 $ 361,300 $ (302,345 ) $ 58,955 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 $43 million , $47 million and $54 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Future Amortization As of December 31, 2018 , 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, 2019 $ 18,304 2020 14,663 2021 8,029 2022 5,065 2023 5,065 Thereafter 23,102 Total $ 74,228 |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | INVESTMENTS IN UNCONSOLIDATED ENTITIES We have strategic investments in certain non-publicly traded equity securities that do not have a readily determinable fair value. We account for most of these investments using the equity method. We accounted for other investments in such equity securities using the cost method of accounting prior to January 1, 2018. In connection with our adoption of the New Investment Standard effective January 1, 2018 (see Note 2), we elected to measure our equity securities without a readily determinable fair value, other than those accounted for using the equity method, at cost adjusted for changes resulting from impairments, if any, and observable price changes in orderly transactions for the identical or similar securities of the same issuer. For the year ended December 31, 2018 , we did not identify any observable price changes requiring an adjustment to our investments. Our investments in unconsolidated entities consisted of the following: As of December 31, 2018 2017 (In thousands) Investments in unconsolidated entities: Equity method $ 182,035 $ 91,702 Other equity investments without a readily determinable fair value 80,438 69,725 Total investments in unconsolidated entities $ 262,473 $ 161,427 As of December 31, 2018 , our aggregate investment in our equity method investees exceeded our proportionate share of the net assets of the investees by $24 million . This difference is attributable to goodwill recorded at acquisition and certain adjustments related to intra-entity transactions subsequent to acquisition. We recorded cash distributions from our investments accounted for using the equity method of $10 million , $19 million and $10 million for the years ended December 31, 2018, 2017 and 2016, 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. A summary of financial information for Dish Mexico and our equity method investees in the aggregate is as follows: As of December 31, 2018 2017 Dish Mexico Aggregate Dish Mexico Aggregate (In thousands) Balance sheet data: Current assets $ 147,140 162,593 $ 146,851 172,234 Noncurrent assets 187,130 188,077 185,345 187,067 Total assets $ 334,270 350,670 $ 332,196 359,301 Current liabilities $ 128,708 129,837 $ 129,087 130,443 Noncurrent liabilities 109,643 110,460 109,428 110,472 Total liabilities $ 238,351 240,297 $ 238,515 240,915 As of December 31, 2018 2017 2016 Dish Mexico Aggregate Dish Mexico Aggregate Dish Mexico Aggregate (In thousands) Income statement data: Revenue $ 444,264 $ 475,559 $ 497,096 $ 535,153 $ 498,069 $ 541,066 Operating income (loss) $ (55,062 ) $ (43,553 ) $ 15,094 $ 31,919 $ 32,280 $ 52,656 Income (loss) before income taxes $ (33,449 ) $ (23,701 ) $ 18,267 $ 32,739 $ 10,195 $ 29,083 Net income (loss) $ (20,126 ) $ (10,378 ) $ 15,658 $ 30,130 $ 6,374 $ 25,262 Net income (loss) attributable to EchoStar $ (10,828 ) $ (5,954 ) $ 9,946 $ 16,973 $ 1,358 $ 10,802 In January 2017, we sold our investment in Invidi Technologies Corporation (“Invidi”) to an entity owned in part by DISH Network for $19 million . Our investment was accounted for using the cost method and had a carrying amount of $11 million on the date of sale and as a result we recognized a gain of $9 million in connection with this transaction for the year ended December 31, 2017. See Note 20 for additional information about this transaction. In connection with the Share Exchange (see Notes 4 and 20 |
Long-Term Debt and Capital Leas
Long-Term Debt and Capital Lease Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Long-Term Debt and Capital Lease Obligations | LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS As of December 31, 2018 , our debt primarily consisted of the 2019 Senior Secured Notes, the 2021 Senior Unsecured Notes, the 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes, each as defined below, and our capital lease obligations. The following table summarizes the carrying amounts and fair values of our long-term debt and capital lease obligations. Effective Interest Rate As of December 31, 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ 920,836 $ 932,696 $ 990,000 $ 1,042,609 5 1/4% Senior Secured Notes due 2026 5.320% 750,000 695,865 750,000 769,305 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 934,902 900,000 992,745 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 696,353 750,000 791,865 Less: Unamortized debt issuance costs (16,757 ) — (24,857 ) — Subtotal 3,304,079 $ 3,259,816 3,365,143 $ 3,596,524 Capital lease obligations 228,702 269,701 Total debt and capital lease obligations 3,532,781 3,634,844 Less: Current portion (959,577 ) (40,631 ) Long-term debt and capital lease obligations, net $ 2,573,204 $ 3,594,213 2019 Senior Secured Notes and 2021 Senior Unsecured Notes On June 1, 2011, HSS issued $1.1 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, 2018 and 2017 , the outstanding principal balance on the 2019 Senior Secured Notes was $921 million and $990 million , respectively. The decrease in the principal outstanding was due to our repurchase of $69 million in the open market during 2018. We recorded a loss on the repurchase of $1 million . On June 1, 2011, HSS also issued $900 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, 2018 and 2017 , the outstanding principal balance on the 2021 Senior Unsecured Notes was $900 million . 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. At each of December 31, 2018 and 2017 , the outstanding principal balance on each of the 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes was $750 million , respectively. 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. Pursuant to the terms of a registration rights agreement, HSS registered notes having substantially identical terms as the 2026 Notes with the Securities and Exchange Commission as part of an offer to exchange registered notes for the 2026 Notes. This exchange offer expired May 11, 2017 with 99.98% of the 2026 Notes being tendered for exchange. Debt Issuance Costs In connection with the issuance of the 2026 Notes, we incurred $8 million of debt issuance costs. For the years ended December 31, 2018 , 2017 and 2016 , we amortized $8 million , $7 million and $7 million of debt issuance costs incurred for all debt issuances, respectively, which are included in Interest expense, net of amounts capitalized in our Consolidated Statements of Operations . 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 10.7% as of December 31, 2018 . 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 20 , 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, 2018 , are as follows: Amount (In thousands) For the Years Ending December 31, 2019 $ 88,615 2020 88,395 2021 84,248 2022 63,484 2023 63,360 Thereafter 47,520 Total minimum lease payments 435,622 Less: Amount representing use of the orbital location and estimated executory costs including profit thereon, included in total minimum lease payments (136,799 ) Net minimum lease payments 298,823 Less: Amount representing interest (70,121 ) Present value of net minimum lease payments 228,702 Less: Current portion (40,662 ) Long-term portion of capital lease obligations $ 188,040 We received rental income from the sublease of our capital lease satellites of approximately $132 million for each of the years ended December 31, 2018 , 2017 and 2016 . As of December 31, 2018 , our future minimum sublease rental income was $216 million relating to such satellites. The subleases have a remaining weighted average term of two years |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The components of Income (loss) from continuing operations before income taxes in our Consolidated Statements of Operations are as follows: For the years ended December 31, 2018 2017 2016 (In thousands) Domestic $ 151,002 $ 146,383 $ 236,200 Foreign (158,962 ) (45,689 ) (19,574 ) Income from continuing operations before income taxes $ (7,960 ) $ 100,694 $ 216,626 The components of Income tax benefit (provision), net , in our Consolidated Statements of Operations are as follows: For the years ended December 31, 2018 2017 2016 (In thousands) Current benefit (provision): Federal $ (1,472 ) $ (8,652 ) $ (19,385 ) State (184 ) (1,237 ) 267 Foreign (2,690 ) (2,335 ) (2,481 ) Total current benefit (provision) (4,346 ) (12,224 ) (21,599 ) Deferred benefit (provision): Federal (19,189 ) 299,693 (58,250 ) State (7,365 ) 2,356 (6,232 ) Foreign 227 (5,539 ) 5,827 Total deferred benefit (provision) (26,327 ) 296,510 (58,655 ) Total income tax benefit (provision), net $ (30,673 ) $ 284,286 $ (80,254 ) The actual tax provisions for the years ended December 31, 2018 , 2017 and 2016 reconcile to the amounts computed by applying the statutory federal tax rate to Income (loss) from continuing operations before income taxes in our Consolidated Statements of Operations as shown below: For the years ended December 31, 2018 2017 2016 Statutory rate 21.0 % 35.0 % 35.0 % State income taxes, net of Federal benefit (94.4 )% (12.2 )% 5.0 % Permanent differences (16.9 )% (0.3 )% 1.4 % Tax credits 68.6 % (8.1 )% (4.2 )% Valuation allowance (491.9 )% 4.6 % (0.3 )% Enactment of Tax Cuts and Job Act of 2017 — % (301.4 )% — % Rates different than statutory 116.6 % — % — % Other 11.6 % 0.1 % 0.1 % Total effective tax rate (385.4 )% (282.3 )% 37.0 % The components of our deferred tax assets and liabilities are as follows: As of December 31, 2018 2017 (In thousands) Deferred tax assets: Net operating losses, credit and other carryforwards $ 284,300 $ 278,540 Unrealized losses on investments, net 41,852 22,260 Accrued expenses 22,148 23,583 Stock-based compensation 10,210 9,148 Other assets 22,366 11,890 Total deferred tax assets 380,876 345,421 Valuation allowance (109,762 ) (66,886 ) Deferred tax assets after valuation allowance 271,114 278,535 Deferred tax liabilities: Depreciation and amortization (731,447 ) (708,599 ) Other liabilities (1,290 ) (1,509 ) Total deferred tax liabilities (732,737 ) (710,108 ) Total net deferred tax liabilities $ (461,623 ) $ (431,573 ) Deferred tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between the accompanying 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 $110 million and $67 million as of December 31, 2018 and 2017 , respectively. The change in the valuation allowance primarily relates to an increase in the net operating loss carryforwards of certain foreign subsidiaries and a decrease associated with unrealized gains that are capital in nature. 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, 2018 , we had net operating loss carryforwards of $797 million , including $237 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, 2018 , we have tax credit carryforwards of $133 million and $98 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. As of December 31, 2018 , 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. However, due to the one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiary earnings, the majority of previously unremitted earnings have now been subjected to U.S. federal income tax. Accounting for the U.S. Tax Cuts and Jobs Act The Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) was enacted in December 2017 and has significantly impacted our effective tax rate and the tax benefit calculated for the year ended December 31, 2017. For the year ended December 31, 2017, we recorded a benefit of $304 million to reflect the change in the value of our deferred tax assets and liabilities resulting from the change in the federal corporate tax rate from 35% to 21% . For the year ended December 31, 2018, we recorded an additional tax benefit of $1 million upon the completion of our analysis. This amount included an estimate of zero related to valuation allowances on foreign tax credit carryforwards. We account for the effects, if any, of the global intangible low-taxed income provisions (“GILTI”) of the 2017 Tax Act as incurred. We also recorded a tax provision of nil related to the tax on deemed mandatory repatriation of our unrepatriated foreign earnings. 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. As of December 31, 2018 , we are not currently under a U.S. federal income tax examination, however, the IRS can perform tax examination as early as tax year 2008. We are also subject to frequent state income tax audits and have open state examinations in years as early as 2008. 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, 2018 , 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 2018 2017 2016 (In thousands) Balance as of beginning of period $ 63,296 $ 63,502 $ 62,366 Additions based on tax positions related to the current year 4,361 1,116 2,132 Additions based on tax positions related to prior years 2,539 258 3 Reductions based on tax positions related to prior years (656 ) (852 ) (734 ) Reductions based on tax settlements — — (265 ) Reductions based on expirations of statute of limitations — (728 ) — Balance as of end of period $ 69,540 $ 63,296 $ 63,502 As of December 31, 2018 , we had $70 million of unrecognized income tax benefits, all of which, if recognized, would affect our effective tax rate. As of December 31, 2017 , we had $63 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, 2018 , 2017 and 2016 , 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, 2018 | |
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 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. Following the consummation of the Share Exchange, we no longer operate our former EchoStar Technologies businesses, the Tracking Stock was retired and is no longer outstanding, and all agreements, arrangements and policy statements with respect to the Tracking Stock terminated. See Note 20 for additional information about the Share Exchange. 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 and certain entities established by him for the benefit of his family own all outstanding Class B 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 on October 30, 2018, we are authorized to repurchase up to $500 million of our outstanding shares of Class A common stock through and including December 31, 2019. For the year ended December 31, 2018 , we repurchased 952,603 shares of our common stock at an average price per share of $34.95 for a total purchase price of $33 million . For the year ended December 31, 2017 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [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 5.0 million shares of Class A common stock. As of December 31, 2018 , we had approximately 2.5 million shares of Class A common stock which remain available for issuance under the ESPP. Generally, all full-time employees who have been employed by EchoStar 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, 2018 , 2017 and 2016 , employee purchases of Class A common stock through the ESPP totaled approximately 245,000 shares, 176,000 shares and 227,000 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 eligible compensation subject to the maximum contribution limit provided by the Internal Revenue Code of 1986, as amended (the “Code”). Eligible employees have the option to contribute up to 75% of their eligible compensation on a pre-tax and/or after-tax basis subject to the Code limits. All employee contributions to the Plan are immediately vested. We match 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. Our match is calculated each pay period there is an employee contribution. In addition, we may make an annual discretionary contribution to the Plan to be made in cash or our stock. Our 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. During the years ended December 31, 2018 , 2017 and 2016 , we recognized matching contributions, net of forfeitures, of $5 million , $5 million and $6 million , respectively, and made discretionary contributions of shares of our Class A common stock, net of forfeitures, with a fair value of $8 million , $7 million and $8 million , respectively (approximately 127,000 , 130,000 and 210,500 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
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 employees. Stock awards under these plans may include both performance-based and non-performance based stock incentives. As of December 31, 2018 , we had outstanding under these plans stock options to acquire approximately 5.0 million shares of our Class A common stock. Stock options granted prior to December 31, 2018 were granted with exercise prices equal to or greater than the market value of our Class A common stock at the date of grant or the last trading day prior to the date of grant (if the grant date is not a trading day) and generally with a maximum term of ten years for our officers and employees and five years for our non-employee directors. While generally we issue stock awards subject to vesting, typically over five years , some stock awards have been granted with immediate or longer vesting and other stock awards vest also or only upon the achievement of certain performance objectives. Under these plans, we grant to certain of our employees awards of fully vested shares of Class A common stock under our Employee Innovator Recognition Program, which is available to all of our eligible employees. As of December 31, 2018 , we had approximately 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, 2018 are as follows: Options Outstanding Options Exercisable Price Range Number Outstanding as of December 31, 2018 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price Number Exercisable as of December 31, 2018 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price $0.00 - $20.00 51,359 2 $ 18.74 51,359 2 $ 18.74 $20.01 - $25.00 429,306 1 $ 20.18 429,306 1 $ 20.18 $25.01 - $30.00 3,300 3 $ 26.42 3,300 3 $ 26.42 $30.01 - $35.00 352,500 4 $ 34.22 352,500 4 $ 34.22 $35.01 - $40.00 1,985,200 4 $ 38.19 1,832,500 3 $ 38.09 $40.01 - $45.00 277,000 7 $ 43.98 111,400 7 $ 44.04 $45.01 - $50.00 766,973 6 $ 47.58 577,473 5 $ 47.64 $50.01 - $55.00 487,400 7 $ 52.24 197,300 6 $ 51.99 $55.01 - $60.00 600,000 8 $ 56.97 127,000 8 $ 56.95 $60.01 and over 60,000 7 $ 60.70 28,000 5 $ 60.70 5,013,038 5 $ 41.80 3,710,138 4 $ 38.59 Stock Award Activity Our stock option activity was as follows: For the years ended December 31, 2018 2017 2016 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period 4,951,256 $ 41.42 5,968,763 $ 39.30 5,893,241 $ 38.38 Granted 215,500 $ 51.71 1,262,500 $ 57.12 732,000 $ 41.86 Exercised (108,318 ) $ 40.67 (1,018,507 ) $ 35.84 (453,182 ) $ 28.83 Forfeited and canceled (45,400 ) $ 50.21 (1,261,500 ) $ 51.63 (203,296 ) $ 45.15 Total options outstanding, end of period 5,013,038 $ 41.80 4,951,256 $ 41.42 5,968,763 $ 39.30 Exercisable at end of period 3,710,138 $ 38.59 3,143,656 $ 36.98 3,551,063 $ 35.40 On April 1, 2017, we granted to Mr. Ergen, our Chairman, an option to purchase 1,100,000 shares of Class A common stock. On April 24, 2017, Mr. Ergen voluntarily forfeited a portion of the option covering 600,000 shares and we canceled such forfeited portion of the option. We realized total tax benefits from stock options exercised of $0.4 million , $3 million and $2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The aggregate intrinsic value of our stock options exercised was $2 million , $20 million and $8 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Our restricted stock unit activity was as follows: For the years ended December 31, 2018 2017 2016 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 — $ — 6,667 $ 34.22 57,328 $ 42.31 Vested — $ — (6,667 ) $ 34.22 (50,661 ) $ 43.38 Total restricted stock units outstanding, end of period — $ — — $ — 6,667 $ 34.22 The total fair value of restricted stock units vested was nil , $0.2 million and $2 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Stock-Based Compensation Total noncash, stock-based compensation expense for all of our employees is shown in the following table for the years ended December 31, 2018 , 2017 and 2016 , respectively, and was assigned to the same expense categories as the base compensation for such employees: For the years ended December 31, 2018 2017 2016 (In thousands) Research and development expenses $ 634 $ 1,010 $ 1,046 Selling, general and administrative expenses 9,356 10,630 9,865 Total stock-based compensation $ 9,990 $ 11,640 $ 10,911 The income tax benefits related to stock-based compensation expense was $2 million , $4 million and $4 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , total unrecognized stock-based compensation cost, net of estimated forfeitures, related to our unvested stock awards was $14 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, 2018 , 2017 and 2016 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: 2018 2017 2016 Risk-free interest rate 2.25% - 2.99% 1.98% - 2.05% 1.10% - 1.87% Volatility factor 22.77% - 23.28% 24.20% - 26.69% 27.22% - 27.37% Expected term of options in years 5.7 - 5.8 5.7 - 5.8 5.7 - 5.8 Weighted-average grant-date fair value $12.38 - $16.23 $15.25 - $16.49 $11.15 - $12.49 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, 2018 , the aggregate intrinsic value of our stock options was $9 million for options outstanding and $9 million for options exercisable as of December 31, 2018 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments The following table summarizes our contractual obligations at December 31, 2018 : Payments Due in the Year Ending December 31, Total 2019 2020 2021 2022 2023 Thereafter (In thousands) Long-term debt $ 3,320,836 $ 920,836 $ — $ 900,000 $ — $ — $ 1,500,000 Capital lease obligations 228,702 40,662 45,031 46,353 31,857 35,476 29,323 Interest on long-term debt and capital lease obligations 983,824 209,989 175,808 136,662 98,265 94,529 268,571 Satellite-related obligations 731,684 207,403 166,601 60,852 47,996 47,907 200,925 Operating lease obligations 93,918 21,146 18,081 13,873 10,118 8,814 21,886 Service commitments 866 176 181 186 192 131 — Total $ 5,359,830 $ 1,400,212 $ 405,702 $ 1,157,926 $ 188,428 $ 186,857 $ 2,020,705 Our satellite-related obligations primarily include payments pursuant to agreements for the construction of the EchoStar XXIV satellite; payments pursuant to Regulatory Authorizations; executory costs for our capital lease satellites; and in-orbit incentives relating to certain satellites; as well as commitments for satellite service arrangements. We incurred satellite-related expenses of $101 million , $140 million and $144 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Our operating lease obligations consist of minimum rental payments under noncancelable leases. Certain of our lease agreements require us to pay additional amounts for utilities, common area maintenance, property taxes, and other executory costs. 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, 2018 , 2017 and 2016 , we recorded $27 million , $30 million and $21 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 have in the future 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 tripled. 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 our products and services. We cannot be certain that these parties 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 parties 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 and Share Exchange In connection with our spin-off from DISH in 2008 (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 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, we will generally 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. Additionally, in connection with the Share Exchange, we entered into a share exchange agreement and other agreements which provide, among other things, for the division of certain liabilities, including liabilities relating to taxes, intellectual property and employees and liabilities resulting from litigation and the assumption of certain liabilities that relate to the transferred businesses and assets. These agreements also contain additional indemnification provisions between us and DISH Network for certain pre-existing liabilities and legal proceedings. Litigation We are involved in a number of legal proceedings 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 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, 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 trials, 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). Except as described below, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material 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 or jury 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. 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 Hughes Network Systems, L.L.C. (“HNS”), as well as against Black Elk Energy Offshore Operations, LLC, Bluetide Communications, Inc. and Helm Hotels Group, in the U.S. District Court for the Eastern District of Texas, alleging infringement of U.S. 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 (“USPTO”) challenging the validity of the patents in suit, which the USPTO subsequently declined to institute. On April 13, 2016, the defendants answered Elbit’s complaint. At Elbit’s request, on June 26, 2017, the court dismissed Elbit’s claims of infringement against all parties other than HNS. Trial commenced on July 31, 2017. On August 7, 2017, the jury returned a verdict that the 073 patent was valid and infringed, and awarded Elbit approximately $21 million. The jury also found that such infringement of the 073 patent was not willful and that the 874 patent was not infringed. On March 30, 2018, the court ruled on post-trial motions, upholding the jury’s findings and awarding Elbit attorneys’ fees in an amount that has not yet been specified. As a result of pre-judgment interest, costs and unit sales through the 073 patent’s expiration in November 2017, the jury verdict would result in a payment of approximately $29 million plus post-judgment interest if not overturned or modified on appeal. Elbit has requested an award of approximately $14 million of attorneys’ fees. HNS is contesting Elbit’s claims as inappropriate and unreasonable in light of the court’s decision and prevailing law. On April 27, 2018, HNS filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit. The parties have briefed the appeal and are awaiting a date for oral arguments. We cannot predict with certainty the outcome of the appeal. As of December 31, 2018 and 2017, we have recorded an accrual of approximately $3 million and $3 million, respectively, with respect to this liability. Any eventual payments made with respect to the ultimate outcome of this matter may be different from our accruals and such differences could be significant. Realtime Data LLC On May 8, 2015, Realtime Data LLC (“Realtime”) filed suit against EchoStar Corporation and our subsidiary HNS in the U.S. District Court for the Eastern District of Texas alleging infringement of U.S. Patent Nos. 7,378,992 (the “992 patent”), entitled “Content Independent Data Compression Method and System;” 7,415,530 (the “530 patent”), entitled “System and Methods for Accelerated Data Storage and Retrieval,” and 8,643,513 (the “513 patent”), entitled “Data Compression System and Methods.” On September 14, 2015, Realtime amended its complaint, additionally alleging infringement of U.S. Patent No. 9,116,908 (the “908 patent”), entitled “System and Methods for Accelerated Data Storage and Retrieval.” 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 U.S. Patents, Nos. 7,358,867 (the “867 patent”), entitled “Content Independent Data Compression Method and System;” 8,502,707 (the “707 patent”), entitled “Data Compression Systems and Methods;” 8,717,204 (the “204 patent”), entitled “Methods for Encoding and Decoding Data;” and 9,054,728 (the “728 patent”), entitled “Data Compression System and Methods.” On February 13, 2018, we filed petitions before the USPTO challenging the validity of all claims asserted against us from the 707 patent, as well as one of the asserted claims of the 728 patent. On September 5, 2018, the USPTO declined to institute proceedings for the petition that we had filed against the 728 patent. On September 12, 2018, the USPTO instituted proceedings to review the validity of the asserted claims of the 707 patent. In a stipulation filed on October 24, 2018, Realtime voluntarily elected not to pursue any previously asserted claims from the 992, 530, 513, 908, 867 and 204 patents. Realtime is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. In February 2019, we entered into a settlement agreement with Realtime and the case was dismissed with prejudice. Other In addition to the above actions, we are subject to various other legal proceedings and claims, which arise in the ordinary course of business. As part of our ongoing operations, we are subject to various inspections, audits, inquiries, investigations and similar actions by third parties, as well as by governmental/regulatory authorities responsible for enforcing the laws and regulations to which we may be subject. Further, under the federal False Claims Act, private parties have the right to bring qui tam, or “whistleblower,” suits against companies that submit false claims for payments to, or improperly retain overpayments from, the federal government. Some states have adopted similar state whistleblower and false claims provisions. In addition, we from time to time receive inquiries from federal, state and foreign agencies regarding compliance with various laws and regulations. In our opinion, the amount of ultimate liability with respect to any of these other actions is unlikely to materially affect our financial position, results of operations or cash flows, though the resolutions and outcomes, individually or in the aggregate, could be material to our financial position, operating results or cash flows for any particular period, depending, in part, upon the operating results for such period. We also indemnify our directors, officers and employees for certain liabilities that might arise from the performance of their responsibilities for us. Additionally, in the normal course of its business, we enter into contracts pursuant to which we may make a variety of representations and warranties and indemnify the counterparty for certain losses. Our possible exposure under these arrangements cannot be reasonably estimated as this involves the resolution of claims made, or future claims that may be made, against us or our officers, directors or employees, the outcomes of which are unknown and not currently predictable or estimable. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
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 our chief operating decision maker (“CODM”), who is our Chief Executive Officer. We primarily operate in two business segments, Hughes and ESS, as described in Note 1. The primary measure of segment profitability that is reported regularly to our CODM is earnings before interest, taxes, depreciation and amortization, or EBITDA. Our operations also include various corporate departments (primarily Executive, Treasury, Strategic Development, Human Resources, IT, Finance, Real Estate, Accounting and Legal) and other activities that have not been assigned to our operating segments such as costs incurred in certain satellite development programs and other business development activities, and gains or losses from certain of our investments. These activities, costs and income, as well as eliminations of intersegment transactions, are accounted for in Corporate and Other in the tables below or in the reconciliation of EBITDA below. Total assets by segment have not been reported herein because the information is not provided to our CODM on a regular basis. The following table presents revenue, EBITDA and capital expenditures for each of our operating segments. Capital expenditures are net of refunds and other receipts related to property and equipment and exclude capital expenditures from discontinued operations of $12 million and $70 million for the years ended December 31, 2017 and 2016 , respectively. Hughes ESS Corporate and Other Consolidated Total (In thousands) For the year ended December 31, 2018 External revenue $ 1,716,169 $ 355,734 $ 19,460 $ 2,091,363 Intersegment revenue $ 359 $ 2,324 $ (2,683 ) $ — Total revenue $ 1,716,528 $ 358,058 $ 16,777 $ 2,091,363 EBITDA $ 601,319 $ 308,058 $ (152,708 ) $ 756,669 Capital expenditures $ 390,108 $ (76,582 ) $ 164,091 $ 477,617 For the year ended December 31, 2017 External revenue $ 1,476,131 $ 390,831 $ 18,546 $ 1,885,508 Intersegment revenue $ 1,787 $ 1,413 $ (3,200 ) $ — Total revenue $ 1,477,918 $ 392,244 $ 15,346 $ 1,885,508 EBITDA $ 475,222 $ 315,285 $ 4,070 $ 794,577 Capital expenditures $ 376,502 $ 20,725 $ 169,157 $ 566,384 For the year ended December 31, 2016 External revenue $ 1,389,152 $ 406,970 $ 14,344 $ 1,810,466 Intersegment revenue $ 3,209 $ 690 $ (3,899 ) $ — Total revenue $ 1,392,361 $ 407,660 $ 10,445 $ 1,810,466 EBITDA $ 477,165 $ 341,516 $ (67,676 ) $ 751,005 Capital expenditures $ 322,362 $ 58,925 $ 247,223 $ 628,510 The following table reconciles total consolidated EBITDA to reported Income (loss) from continuing operations before income taxes in our Consolidated Statements of Operations : For the Years Ended December 31, 2018 2017 2016 (In thousands) EBITDA $ 756,669 $ 794,577 $ 751,005 Interest income and expense, net (168,293 ) (172,621 ) (102,237 ) Depreciation and amortization (598,178 ) (522,190 ) (432,904 ) Net income attributable to noncontrolling interests 1,842 928 762 Income (loss) from continuing operations before income taxes $ (7,960 ) $ 100,694 $ 216,626 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 customers in the U.S. and its territories, Mexico and Canada. Central and South America revenue includes transactions with customers in Brazil, Colombia, Peru, Ecuador and other countries in this region. All other revenue includes transactions with customers in Asia, Africa, Australia, Europe, and the Middle East. The following table summarizes total long-lived assets and revenue attributed to the North America, South and Central America and other foreign locations. As of December 31, Long-lived assets: 2018 2017 (In thousands) North America $ 4,114,087 $ 4,221,793 Central and South America 226,232 213,890 All other 118,647 129,852 Total long-lived assets $ 4,458,966 $ 4,565,535 For the Years Ended December 31, Revenue: 2018 2017 2016 (In thousands) North America $ 1,819,463 $ 1,612,349 $ 1,566,576 Central and South America 101,632 90,000 50,952 All other 170,268 183,159 192,938 Total revenue $ 2,091,363 $ 1,885,508 $ 1,810,466 Transactions with Major Customers For the years ended December 31, 2018 , 2017 and 2016 , 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, 2018 2017 2016 (In thousands) Total revenue: DISH Network: Hughes segment $ 50,275 $ 82,625 $ 107,300 EchoStar Satellite Services segment 309,815 344,841 349,549 Corporate and Other 19,075 18,522 15,433 Total DISH Network 379,165 445,988 472,282 All other 1,712,198 1,439,520 1,338,184 Total revenue $ 2,091,363 $ 1,885,508 $ 1,810,466 Percentage of total revenue: DISH Network 18.1 % 23.7 % 26.1 % All other 81.9 % 76.3 % 73.9 % |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
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 (2) (In thousands, except per share amounts) Year Ended December 31, 2018 Total revenue $ 501,792 $ 525,957 $ 532,953 $ 530,661 Operating income $ 58,010 $ 74,765 $ 70,035 $ (19,567 ) Net income (loss) $ (21,171 ) $ 77,684 $ 16,502 $ (111,648 ) Net income (loss) attributable to EchoStar common stock $ (21,551 ) $ 77,222 $ 16,052 $ (112,198 ) Basic earnings per share $ (0.22 ) $ 0.80 $ 0.17 $ (1.17 ) Diluted earnings per share $ (0.22 ) $ 0.80 $ 0.17 $ (1.17 ) Year Ended December 31, 2017 Total revenue (1) $ 433,151 $ 465,076 $ 481,233 $ 506,048 Operating income (1) $ 51,651 $ 45,890 $ 56,414 $ 42,352 Net income $ 37,352 $ 7,122 $ 35,201 $ 313,814 Net income attributable to EchoStar common stock $ 38,924 $ 6,940 $ 34,669 $ 313,237 Basic earnings per share $ 0.41 $ 0.07 $ 0.36 $ 3.29 Diluted earnings per share $ 0.41 $ 0.07 $ 0.36 $ 3.23 (1) As a result of the Share Exchange, the consolidated financial statements of the EchoStar Technologies businesses have been presented as discontinued operations and, as such, have been excluded from the quarterly financial data presented above for all periods presented. See Note in the notes to our accompanying Consolidated Financial Statements for further discussion of our discontinued operations. (2) Net income and related per share amounts for the three months ended December 31, 2018 include an impairment charge of $65 million related to certain long-lived assets in Brazil. See Note 10 for additional information related to the impairment charge. Net income and related per share amounts for the three months ended December 31, 2017 include a discrete income tax benefit of $304 million related to the enactment of federal tax legislation in December 2017, a gain of $23 on our trading securities, and an impairment loss of $11 million relating to our regulatory authorizations with indefinite lives and certain projects in construction in progress. See Note 13 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS DISH Network EchoStar Corporation and DISH have operated as separate publicly-traded companies since 2008. In addition, prior to the consummation of the Share Exchange in February 2017, DISH Network owned the Tracking Stock, which represented an aggregate 80.0% economic interest in the residential retail satellite broadband business of our Hughes segment. Following the consummation of the Share Exchange, the Tracking Stock was retired. A substantial majority of the voting power of the shares of each of EchoStar Corporation and DISH is owned beneficially by Charles W. Ergen, our Chairman, and by certain entities established by Mr. Ergen for the benefit of his family. In connection with and following both the Spin-off and the Share Exchange, we and DISH Network 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 indemnify 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 we or DISH Network pay for products and services provided under the agreements are based on 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. Services and Other Revenue — DISH Network Satellite Capacity Leased to DISH Network. We have entered into certain agreements to lease satellite capacity pursuant to which we provide satellite services to DISH Network on certain satellites owned or leased by us. The fees for the services provided under these 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 VII, EchoStar X, EchoStar XI and EchoStar XIV . In March 2014, as part of the Satellite and Tracking Stock Transaction, described below in Other Agreements - DISH Network, we began leasing certain satellite capacity to DISH Network on the EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV satellites. These agreements to lease satellite capacity generally terminate 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 agreement to lease satellite capacity 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. The agreement to lease satellite capacity on the EchoStar VII satellite expired at the end of June 2018. EchoStar IX. Effective January 2008, DISH Network began leasing satellite capacity from us on the EchoStar IX satellite. Subject to availability, DISH Network generally has the right to continue leasing satellite capacity from us on the EchoStar IX satellite on a month-to-month basis. EchoStar XII. DISH Network leased satellite capacity from us on the EchoStar XII satellite. The agreement to lease satellite capacity expired at the end of September 2017. EchoStar XVI. In December 2009, we entered into an initial ten -year agreement to lease satellite capacity to DISH Network, pursuant to which DISH Network has leased satellite capacity from us on the EchoStar XVI satellite since January 2013. Effective December 2012, we and DISH Network amended the 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 agreement to, among other things, extend the initial term by one additional year through January 2018 and to reduce the term of the first renewal option by one year . In May 2017, DISH Network renewed the agreement through January 2023. DISH Network has the option to renew for an additional five -year period prior to expiration of the current term. There can be no assurance that such option to renew this agreement will be exercised. In the event that DISH Network does not exercise its 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. We and DISH Network have amended the agreement to allow DISH Network to place and use certain satellites at the 61.5 degree west longitude orbital location. Nimiq 5 Agreement. In September 2009, we entered into a fifteen -year agreement with Telesat Canada to lease satellite capacity from Telesat Canada on all 32 direct broadcast satellite (“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 an agreement with DISH Network, pursuant to which DISH Network leases satellite capacity from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement (the “DISH Nimiq 5 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 in October 2019. 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 lease satellite capacity 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 lease satellite capacity on a replacement satellite. QuetzSat-1 Agreement. In November 2008, we entered into a ten -year agreement to lease satellite capacity from SES Latin America, which provides, among other things, for the provision by SES Latin America to us of leased satellite capacity on 32 DBS transponders on the QuetzSat-1 satellite. Concurrently, in 2008, we entered into an agreement pursuant to which DISH Network leases from us satellite capacity 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 January 2013, the QuetzSat-1 satellite was moved to the 77 degree west longitude orbital location. In February 2013, we and DISH Network entered into an agreement pursuant to which we lease back from DISH Network certain satellite capacity on five DBS transponders on the QuetzSat-1 satellite through November 2021, unless extended or earlier terminated under the terms and conditions of our agreement. Under the terms of our contractual arrangements with DISH Network, we began leasing satellite capacity to DISH Network on the QuetzSat-1 satellite in February 2013 and will continue leasing such capacity through November 2021, unless extended or earlier terminated under the terms and conditions of our agreement with DISH Network for the QuetzSat-1 satellite. 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 lease satellite capacity 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 lease satellite capacity 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. Effective in March 2018, DISH Network exercised its right to terminate the DISH 103 Spectrum Development Agreement and we exercised our right to terminate the 103 Spectrum Development Agreement. In connection with the 103 Spectrum Development Agreement, in May 2012, we also entered into a ten -year agreement with Ciel pursuant to which we leased certain satellite capacity from Ciel on the SES-3 satellite at the 103 degree west longitude orbital location (the “Ciel 103 Agreement”). In June 2013, we and DISH Network entered into an agreement pursuant to which DISH Network leased certain satellite capacity from us on the SES-3 satellite (the “DISH 103 Agreement”). Under the terms of the DISH 103 Agreement, DISH Network made certain monthly payments to us through the service term. Effective in March 2018, DISH Network exercised its right to terminate the DISH 103 Agreement and we exercised our right to terminate the Ciel 103 Agreement. TT&C Agreement. Effective January 2012, we entered into a TT&C agreement pursuant to which we provided TT&C services to DISH Network for a period ending in December 2016 (the “TT&C Agreement”). We and DISH Network have amended the TT&C Agreement over time to, among other things, extend the term through February 2023. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. DISH Network is able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. 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 Leases to DISH Network. 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: 100 Inverness Agreement . Effective March 2017, DISH Network is licensed to use certain of our space at 100 Inverness Terrace East, Englewood, Colorado for a period ending in December 2020. This agreement may be terminated by either party upon 180 days ’ prior notice. 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, either party has the right to terminate this agreement upon 30 days ’ notice. 90 Inverness Lease Agreement. The lease for certain space at 90 Inverness Circle East, Englewood, Colorado was 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., Englewood, Colorado was for a period ending in December 2016. We and DISH Network have amended this lease over time to, among other things, extend the term through December 2019. After December 2019, this agreement may be converted by mutual consent to a month-to-month lease agreement with either party having the right to terminate upon 30 days ’ notice. Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr., Littleton, Colorado was for a period ending in December 2016. We and DISH Network have amended this lease over time to, among other things, extend the term through December 2019. After December 2019, this agreement may be converted by mutual consent to a month-to-month lease agreement with either party having the right to terminate upon 30 days ’ notice. Atlanta Sublease Agreement. The sublease for certain space at 211 Perimeter Center, Atlanta, Georgia terminated in October 2016. Cheyenne Lease Agreement. Prior to the Share Exchange, we leased to DISH Network certain space at 530 EchoStar Drive, Cheyenne, Wyoming. In connection with the Share Exchange, we transferred ownership of a portion of this property to DISH Network and we and DISH Network amended this agreement to (i) terminate the lease for the transferred space and (ii) provide for a continued lease to DISH Network of the portion of the property we retained for a period ending in December 2031. After December 2031, this agreement may be converted by mutual consent to a month-to-month lease agreement with either party having the right to terminate upon 30 days ’ notice. 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 we provide, among other things, warranty, operations and maintenance and hosting services for TerreStar’s ground-based communications equipment. In December 2017, we and DISH Network amended these agreements, effective as of January 1, 2018, to reduce certain pricing terms through December 31, 2023 and to modify certain termination provisions. DISH Network generally has the right to continue to receive warranty services from us for our products on a month-to-month basis unless terminated by DISH Network upon at least 21 days ’ written notice to us. DISH Network generally has the right to continue to receive operations and maintenance services from us on a quarter-to-quarter basis unless operations and maintenance services are terminated by DISH Network upon at least 90 days ’ written notice to us. The provision of hosting services will continue until May 2022. In addition, DISH Network generally may terminate any and all services for convenience subject to providing us with prior notice and/or payment of termination charges. Hughes Broadband Distribution Agreement. 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, we and DISH Network 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, we and DISH Network will continue to provide our HughesNet service to the Effective October 2012, we and DISH Network, entered into a distribution agreement (the “Distribution Agreement”) pursuant to which DISH Network has the right, but not the obligation, to market, sell and distribute our HughesNet satellite internet service (the “HughesNet service”). DISH Network pays us a monthly per subscriber wholesale service fee for the HughesNet service based upon a subscriber’s service level and based upon certain volume subscription thresholds. The Distribution Agreement also provides that DISH Network has the right, but not the ob then-current DISH Network subscribers pursuant to the terms and conditions of the Distribution Agreement. ligation, to purchase certain broadband equipment from us to support the sale of the HughesNet 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, we and DISH Network 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, we and DISH Network will continue to provide our HughesNet service to the then-current DISH Network subscribers pursuant to the terms and conditions of the Distribution Agreement. 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 we provide, among other things, warranty, operations and maintenance and hosting services of DBSD North America’s gateway and ground-based communications equipment. In December 2017, we and DBSD North America amended these agreements, effective as of January 1, 2018, to reduce certain pricing terms through December 31, 2023 and to modify certain termination provisions. DBSD North America has the right to continue to receive operations and maintenance services from us on a quarter-to-quarter basis, unless terminated by DBSD North America upon at least 120 days’ written notice to us. In February 2019, we further amended these agreements to provide DBSD North America with the right to continue to receive warranty services from us on a month-to-month basis until December 2023, unless terminated by DBSD North America upon at least 21 days’ written notice to us . 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. In addition, DBSD North America generally may terminate any and all such services for convenience, subject to providing us with prior notice and/or payment of termination charges. RUS Implementation Agreement. In September 2010, DISH Network was selected by the Rural Utilities Service (“RUS”) of the U.S. Department of Agriculture to receive up to approximately $14 million in broadband stimulus grant funds. Effective November 2011, we and DISH Network entered into a RUS Implementation Agreement (the “RUS Agreement”) pursuant to which we provided certain portions of the equipment and broadband service used to implement DISH Network’s RUS program. While the RUS Agreement expired in June 2013 when the broadband stimulus grant funds were exhausted, we are required to continue providing services to DISH Network’s customers activated prior to the expiration of the RUS Agreement in accordance with the terms and conditions of the RUS Agreement. Hughes Equipment and Services Agreement . In February 2019, we and DISH Network entered into an agreement pursuant to which we will sell to DISH Network our HughesNet Service and HughesNet equipment that has been modified to meet DISH Network’s internet-of-things specifications for the transfer of data to DISH Network’s network operations centers. This agreement has an initial term of five years expiring February 2024 with automatic renewal for successive one-year terms unless terminated by DISH Network with at least 180 days’ written notice to us or by us with at least 365 days’ written notice to DISH Network. General and Administrative Expenses — DISH Network Amended and Restated Professional Services Agreement . In connection with the Spin-off, we entered into various agreements with DISH Network including a transition services agreement, satellite procurement agreement and services agreement, which all expired in January 2010 and were replaced by a professional services agreement (the “Professional Services Agreement”). In January 2010, we and DISH Network agreed that we continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under a transition services agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Mr. Vivek Khemka, who was then employed as DISH Network’s Executive Vice President and Chief Technology Officer, provided services to us during portions of 2016 and through February 2017 pursuant to the Professional Services Agreement as President -- EchoStar Technologies L.L.C. Additionally, we and DISH Network agreed that DISH Network would continue to have the right, but not the obligation, to engage us to manage the process of procuring new satellite capacity for DISH Network (previously provided under a satellite procurement agreement), receive logistics, procurement and quality assurance services from us (previously provided under a services agreement) and provide other support services. In connection with the consummation of the Share Exchange, we and DISH amended and restated the Professional Services Agreement (the “Amended and Restated Professional Services Agreement”) to provide that we and DISH Network shall have the right to receive additional services that either we or DISH Network may require as a result of the Share Exchange, including access to antennas owned by DISH Network for our use in performing TT&C services and maintenance and support services for our antennas. The term of the Amended and Restated Professional Services Agreement is through January 2020 and renews automatically for successive one -year periods thereafter, unless the agreement is terminated earlier by either party upon at least 60 days ’ notice. We or DISH Network may generally terminate the Amended and Restated Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days ’ notice, unless the statement of work for particular services states otherwise. Certain services being provided for under the Amended and Restated Professional Services Agreement may survive the termination of the agreement. Real Estate Leases from DISH Network. We have entered into lease agreements pursuant to which we lease certain real estate from DISH Network. The rent on a per square foot basis is comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the leases, and for certain properties, we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises. Cheyenne Lease Agreement . Effective March 2017 we lease from DISH Network certain space at 530 EchoStar Drive in Cheyenne, Wyoming for a period ending in February 2019. In August 2018, we exercised our option to renew this lease for a one year period ending in February 2020. We have the option to renew this lease for twelve one -year periods. Gilbert Lease Agreement . Effective March 2017 we lease from DISH Network certain space at 801 N. DISH Dr. in Gilbert, Arizona for a period ending in February 2019. In August 2018, we exercised our option to renew this lease for a one year period ending in February 2020. We have the option to renew this lease for twelve one -year periods. American Fork Occupancy License Agreement . In connection with the Share Exchange, effective March 2017, we subleased from DISH Network certain space at 796 East Utah Valley Drive in American Fork, Utah for a period ending in August 2017. We exercised our option to renew this sublease for a five -year period ending in August 2022. Employee Matters Agreement . Effective March 2017 in connection with the Share Exchange, we and DISH Network entered into an employee matters agreement that addressed the transfer of employees from EchoStar to DISH Network, including certain benefit and compensation matters and the allocation of responsibility for employee related liabilities relating to current and past employees of the transferred businesses. DISH Network assumed employee-related liabilities relating to the transferred businesses as part of the Share Exchange, except that we are responsible for certain existing employee related litigation as well as certain pre-Share Exchange compensation and benefits for employees transferring to DISH Network in connection with the Share Exchange. Collocation and Antenna Space Agreements . We and DISH Network have entered into an agreement pursuant to which DISH Network provides us with collocation space in El Paso, Texas. This agreement was for an initial period ending in August 2015, and provides us with renewal options for four consecutive years. Effective August 2015, we exercised our first renewal option for a period ending in August 2018, and in April 2018 we exercised our second renewal option for a period ending in August 2021. In connection with the Share Exchange, effective March 2017, we also entered into certain agreements pursuant to which DISH Network provides collocation and antenna space to EchoStar through February 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Spokane, Washington; and Englewood, Colorado. In August 2017, we and DISH Network also entered into certain other agreements pursuant to which DISH Network provides additional collocation and antenna space to EchoStar in Monee, Illinois and Spokane, Washington through August 2022. We generally may renew our collocation and antenna space agreements for three -year periods by providing DISH Network with prior written notice no more than 120 days but no less than 90 days prior to the end of the then-current term. We may terminate certain of these agreements with 180 days ’ prior written notice. The fees for the services provided under these agreements depend on the number of racks leased at the location. Other Agreements — DISH Network 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 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 million in cash; and (ii) in March 2014, DISH Network began receiving certain satellite services from us as discussed above on these five satellites (collectively, the “Satellite and Tracking Stock Transaction.”) The Tracking Stock was retired in March 2017 and is no longer outstanding and all agreements, arrangements and policy statements with respect to such Tracking Stock terminated and are of no further effect. Share Exchange Agreement . On January 31, 2017, EchoStar Corporation and certain of our subsidiaries entered into a share exchange agreement (the “Share Exchange Agreement”) with DISH and certain of its subsidiaries pursuant to which, on February 28, 2017, we received all of the shares of the Tracking Stock in exchange for 100% of the equity interests of certain EchoStar subsidiaries that held substantially all of our EchoStar Technologies businesses and certain other assets. Following consummation of the Share Exchange on February 28, 2017, we no longer operate the transferred EchoStar Technologies businesses and the Tracking Stock was retired and is no longer outstanding and all agreements, arrangements and policy statements with respect to such Tracking Stock terminated and are of no further effect. Pursuant to the Share Exchange Agreement, we transferred certain assets, investments in joint ventures, spectrum licenses and real estate properties and DISH Network assumed certain liabilities relating to the transferred assets and businesses. The Share Exchange Agreement contained customary representations and warranties by the parties, including representations by us related to the transferred assets, assumed liabilities and the financial condition of the transferred businesses. We and DISH Network also agreed to customary indemnification provisions whereby each party indemnifies the other against certain losses with respect to breaches of representations, warranties or covenants and certain liabilities and if certain actions undertaken by us or DISH causes the transaction to be taxable to the other party after closing. See Notes 1 and 4 for further information. Hughes Broadband Master Services Agreement . In March 2017, we and DISH Network entered into a master service agreement (the “Hughes Broadband MSA”) pursuant to which DISH Network, among other things: (i) has the right, but not the obligation, to market, promote and solicit orders and upgrades for our HughesNet service and related equipment and other telecommunication services and (ii) installs HughesNet service equipment with respect to activations generated by DISH Network. Under the Hughes Broadband MSA, we and DISH Network make certain payments to each other relating to sales, upgrades, purchases and installation services. The Hughes Broadband MSA has an initial term of five years until March 2022 with automatic renewal for successive one -year terms. Upon expiration or termination of the Hughes Broadband MSA, we will continue to provide our HughesNet service to subscribers and make certain payments to DISH Network pursuant to the terms and conditions of the Hughes Broadband MSA. We incurred sales incentives and other costs under the Hughes Broadband MSA totaling $33 million and $29 million for the year ended December 31, 2018 and 2017 , respectively. Intellectual Property and Technology License Agreement . Effective March 2017 in connection with the Share Exchange, we and DISH Network entered into an Intellectual Property and Technology License Agreement (“IPTLA”) pursuant to which we and DISH Network license to each other certain intellectual property and technology. The IPTLA will continue in perpetuity, unless mutually terminated by the parties. Pursuant to the IPTLA, we granted to DISH Network a license to our intellectual property and technology for use by DISH Network, among other things, in connection with its continued operation of the businesses acquired pursuant to the Share Exchange, including a limited license to use the “ECHOSTAR” trademark during a transition period. EchoStar retains full ownership of the “ECHOSTAR” trademark. In addition, DISH Network granted a license back to us, among other things, for the continued use of all intellectual property and technology that is used in our retained businesses but the ownership of which was transferred to DISH Network pursuant to the Share Exchange. Tax Matters Agreement . Effective March 2017, in connection with the Share Exchange, we and DISH entered into a tax matters agreement. This agreement governs certain of our rights, responsibilities and obligations with respect to taxes of the transferred businesses pursuant to the Share Exchange. Generally, we are responsible for all tax returns and tax liabilities for the transferred businesses and assets for periods prior to the Share Exchange and DISH Network is responsible for all tax returns and tax liabilities for the transferred businesses and assets from and after the Share Exchange. Both we and DISH Network made certain tax-related representations and are subject to various tax-related covenants after the consummation of the Share Exchange. Both we and DISH Network have agreed to indemnify each other if there is a breach of any such tax representation or violation of any such tax covenant and that breach or |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | SUPPLEMENTAL FINANCIAL INFORMATION Noncash Investing and Financing Activities For the years ended December 31, 2018 2017 2016 (In thousands) Employee benefits paid in Class A common stock $ 7,605 $ 11,200 $ 11,126 Property and equipment financed under capital lease obligations $ 364 $ 8,484 $ 7,652 Increase (decrease) in capital expenditures included in accounts payable, net $ 7,318 $ (3,831 ) $ 3,054 E $ — $ 43,890 $ — Noncash net assets exchanged for Tracking Stock (Note 1) $ — $ 299,888 $ — Restricted Cash and Cash Equivalents The beginning and ending balances of cash and cash equivalents presented in our Consolidated Statements of Cash Flows included restricted cash and cash equivalents of $1 million and $1 million , respectively, for the year ended December 31, 2018 , and $1 million and $1 million , respectively, for the year ended December 31, 2017 . These amounts are included in Other noncurrent assets, net in our Consolidated Balance Sheets . Foreign Currency We recognized net foreign currency transaction losses of $16 million , gains of $1 million and losses of $0.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Fair Value of In-Orbit Incentives As of December 31, 2018 and 2017 , 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 $107 million and $112 million , respectively. Contract Acquisition and Fulfillment Costs Unamortized contract acquisition costs totaled $104 million as of December 31, 2018 and related amortization expense totaled $83 million for the year ended December 31, 2018 , respectively. Unamortized contract fulfillment costs totaled $3 million as of December 31, 2018 and related amortization expense was de minimis for the year ended December 31, 2018 . Research and Development The table below summarizes the research and development costs incurred in connection with customers’ orders included in cost of sales and other expenses we incurred for research and development. For the years ended December 31, 2018 2017 2016 (In thousands) Cost of sales $ 23,422 $ 27,899 $ 23,663 Research and development $ 27,570 $ 31,745 $ 31,170 Capitalized Software Costs As of December 31, 2018 and 2017 , the net carrying amount of externally marketed software was $97 million and $88 million , respectively, of which $29 million and $20 million , respectively, is under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $32 million , $31 million and $23 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. We recorded amortization expense relating to the development of externally marketed software of $23 million , $20 million and $10 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. The weighted average useful life of our externally marketed software was approximately three years as of December 31, 2018 . Advertising Costs We incurred advertising expense of $76 million , $64 million and $44 million for the years ended December 31, 2018 , 2017 and 2016 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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, 2018 , 2017 and 2016 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, 2018 $ 12,027 $ 22,184 $ (17,607 ) $ 16,604 December 31, 2017 $ 12,955 $ 9,551 $ (10,479 ) $ 12,027 December 31, 2016 $ 11,687 $ 14,393 $ (13,125 ) $ 12,955 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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% 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. Prior to the consummation of the Share Exchange, noncontrolling interests consisted primarily of the Hughes Retail Preferred Tracking Stock issued by our subsidiary, Hughes Network Systems Corporation (“HSS”), (the “HSS Tracking Stock”) owned by DISH Network as described in Notes 1 and 4. 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 U.S. (“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 financial statements. Estimates are used in accounting for, among other things, (i) amortization periods for deferred contract acquisition costs, (ii) inputs used to recognize revenue over time, (iii) allowances for doubtful accounts, (iv) warranty obligations, (v) self-insurance obligations, (vi) deferred taxes and related valuation allowances, (vii) uncertain tax positions, (viii) loss contingencies, (ix) fair value of financial instruments, (x) fair value of stock-based compensation awards, (xi) fair value of assets and liabilities acquired in business combinations, (xii) lease classifications, (xiii) asset impairment testing and (xiv) useful lives and methods for depreciation and amortization of long-lived assets. 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 financial statements. Additionally, 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 thereto are reflected in the period they occur or prospectively if the revised estimate affects future periods. |
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. 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 Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements, as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Fair values for our outstanding debt (see Note 12 ) are based on quoted market prices in less active markets and are categorized as Level 2 measurements. Additionally, 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. 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, 2018 and 2017 |
Revenue Recognition | Revenue Recognition Overview We account for our sales and services revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”) , which we adopted on January 1, 2018, using the modified retrospective approach to contracts not completed as of the adoption date. Topic 606 provides a five-step revenue recognition model that we apply to our customer contracts. Under this model we (i) identify the contract with the customer, (ii) identify our performance obligations in the contract, (iii) determine the transaction price for the contract, (iv) allocate the transaction price to our performance obligations and (v) recognize revenue when or as we satisfy our performance obligations. Revenue is recognized upon transfer of control of the promised goods or our performance of the services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We enter into contracts that may include various combinations of products and services, which are generally distinct and accounted for as separate performance obligations. Additionally, a significant portion of our revenue is derived from leases of property and equipment that is reported in Services and other revenue - other and Services and other revenue - DISH Network in our Consolidated Statements of Operations . Certain of our customer contracts contain embedded equipment leases, which we separate from non-lease components of the contract based on the relative standalone selling prices of the lease and non-lease components. Hughes Our Hughes segment provides various communication and networking services to consumer and enterprise customers in both domestic and international markets. Our service contracts typically obligate us to provide substantially the same services on a recurring basis in exchange for fixed recurring fees over the term of the contract. We satisfy such performance obligations over time and recognize revenue ratably as services are rendered over the service period. Certain of our contracts with service obligations provide for fees based on usage, capacity or volume. We satisfy these performance obligations and recognize the related revenue at the point in time or over the period when the services are rendered. Our Hughes segment also sells and leases communications equipment to its customers. Revenue from equipment sales generally is recognized upon shipment of the equipment. Our equipment sales contracts typically include standard product warranties, but generally do not provide for returns or refunds. Revenue for extended warranties is recognized ratably over the extended warranty period. For contracts with multiple performance obligations, we typically allocate the contract’s transaction price to each performance obligation based on their relative standalone selling prices. When the standalone selling price is not observable, our primary method used to estimate standalone selling price is the expected cost plus a margin. Our contracts generally require customer payments to be made at or shortly after the time we transfer control of goods or perform the services. In addition to equipment and service offerings, our Hughes segment also enters into long-term contracts to design, develop, construct and install complex telecommunication networks to customers in its enterprise and mobile satellite systems markets. Revenue from such contracts is generally recognized over time at a measure of progress that depicts the transfer of control of the goods or services to the customer. Depending on the nature of the arrangement, we measure progress toward contract completion using an appropriate input method or output method. Under the input method, we recognize the transaction price as revenue based on the ratio of costs incurred to estimated total costs at completion. Under the output method, revenue and cost of sales are recognized as products are delivered based on the expected profit for the entire agreement. Profit margins on long-term contracts generally 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 generally receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. ESS Our ESS segment provides satellite operations through leasing arrangements and satellite services on a full-time and/or occasional-use basis to DISH Network and Dish Mexico, as well as government service providers, internet service providers, broadcast news organizations, content providers and private enterprise customers. Our ESS segment also provides telemetry, tracking and control (“TT&C”) services for satellites owned by DISH Network and technical consulting services that are billed by the hour. Generally, our service contracts with customers contain a single performance obligation and therefore there is no need to allocate the transaction price. We transfer control and recognize revenue for satellite services at the point in time or over the period when the services are rendered. Other Sales and Value Added Taxes, Universal Service Fees and other taxes that we collect concurrent with revenue producing activities are excluded from revenue. Shipping and handling costs associated with outbound freight are accounted for as a fulfillment cost after control over a product has transferred to the customer and are included in Cost of sales - equipment in our Consolidated Statements of Operations at the time of shipment. Contract Balances Trade Accounts Receivable Trade accounts receivable includes amounts billed and currently due from customers and represents our unconditional rights to consideration arising from our performance under our customer contracts. Trade accounts receivable also includes amounts due from customers under our leasing arrangements. We make ongoing estimates relating to the collectibility of our trade accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make the required payments. In determining the amount of the allowance, we consider historical levels of credit losses and make judgments about the creditworthiness of our customers based on ongoing credit evaluations. Past due trade accounts receivable balances are written off when our internal collection efforts have been unsuccessful. Bad debt expense related to our trade accounts receivable and other contract assets is included in Selling, general and administrative expenses in our Consolidated Statements of Operations . Contract Assets and Contract Liabilities Contract assets represent revenue that we have recognized in advance of billing the customer and are included in Trade accounts receivable and contract assets, net or Other noncurrent assets, net in our Consolidated Balance Sheets based on the expected timing of customer payment. Our contract assets include amounts that we referred to as Contracts in Process in prior periods. Our contract assets typically relate to our long-term contracts where we recognize revenue using the cost-based input method and the revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized under customer contracts and are included in Contract liabilities or Other noncurrent liabilities in our Consolidated Balance Sheets based on the timing of when we expect to recognize revenue. Contract liabilities include amounts that we referred to as deferred revenue in prior periods. We recognize contract liabilities as revenue after all revenue recognition criteria have been met. Contract Acquisition and Fulfillment Costs Contract Acquisition Costs Our contract acquisition costs represent incremental direct costs of obtaining a contract and consist primarily of sales incentives paid to employees and third-party representatives. When we determine that our contract acquisition costs are recoverable, we defer and amortize the costs over the contract term, or over the estimated life of the customer relationship if anticipated renewals are expected and the incentives payable upon renewal are not commensurate with the initial incentive. We amortize contract acquisition costs in proportion to the revenue to which the costs relate. We expense sales incentives as incurred if the expected amortization period is one year or less. Unamortized contract acquisition costs are included in Other noncurrent assets, net in our Consolidated Balance Sheets and related amortization expense is included in Selling, general and administrative expenses in our Consolidated Statements of Operations . Contract Fulfillment Costs We recognize costs to fulfill a contract as an asset when the costs relate directly to a specific contract, the costs generate or enhance our resources that will be used in satisfying future performance obligations and the costs are expected to be recovered. We may incur such costs on certain contracts that require initial setup activities in advance of the transfer of goods or services to the customer. We amortize these costs in proportion to the revenue to which the costs relate. Unamortized contract fulfillment costs are included in Other noncurrent assets, net in our Consolidated Balance Sheets and related amortization expense is included in Cost of sales - services and other in our Consolidated Statements of Operations |
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 reported in other comprehensive income (loss) as Foreign currency translation adjustments in our Consolidated Statements of Comprehensive Income (Loss) . Except in certain uncommon circumstances, 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 |
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, 2018 and 2017 primarily consisted of commercial paper, government bonds, corporate notes, and money market funds. The amortized cost of these investments approximates their fair value. |
Inventory | nventory Inventory is stated at the lower of cost, determined using the first-in, first-out (“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. |
Capitalized Software Costs | Capitalized Software Costs Internal-Use Software Costs related to the procurement and development of software for internal-use 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 in our Consolidated Balance Sheets . Externally Marketed Software Costs related to the procurement and development of software for 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 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 or lease 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. |
Marketable Investment Securities | Marketable Investment Securities Our marketable investment securities portfolio consists of investments in debt and equity instruments with readily determinable fair values. Debt Securities We classify all of our debt securities as available-for-sale based on our investment strategy for the securities. Generally, we recognize periodic changes in the difference between fair value and amortized cost in Unrealized gains (losses) on available-for-sale securities and other in our Consolidated Statements of Comprehensive Income (Loss) . Realized gains and losses upon sales of debt securities are reclassified from other comprehensive income (loss) and recognized on the trade date in Gains (losses) on investments, net in our Consolidated Statements of Operations . We use the FIFO method to determine the cost basis on sales of debt securities. Interest income from debt securities is reported in Interest income in our Consolidated Statements of Operations . We could realize proceeds from certain investments prior to their contractual maturity if we sell these securities before such maturity. We evaluate our available-for-sale debt securities portfolio periodically to determine whether declines in the fair value of these securities are other-than-temporary. Our evaluation considers, among other things, the length of time and the extent to which the fair value of such security has been lower than amortized cost, market and company-specific factors related to the security and our intent and ability to hold the investment to maturity or when it recovers its value. We generally consider a decline to be other-than-temporary when: (i) we intend to sell the security, (ii) it is more likely than not that we will be required to sell the security before maturity or when it recovers its value, or (iii) we do not expect to recover the amortized cost of the security at maturity. Declines in the fair value of available-for-sale debt securities that are determined to be other-than-temporary are reclassified from other comprehensive income (loss) and recognized in Net income (loss) in our Consolidated Statements of Operations , thus establishing a new cost basis for the investment. From time to time we make strategic investments in corporate debt securities. Generally, we elect to account for these debt securities using the fair value option because it results in consistency in accounting for unrealized gains and losses for all securities in our portfolio of strategic investments. When we elect the fair value option for investments in debt securities, we recognize periodic changes in fair value of these securities in Gains (losses) on investments, net in our Consolidated Statements of Operations . Interest income from these securities is reported in Interest income in our Consolidated Statements of Operations . Equity Securities Prior to January 1, 2018, we classified our marketable equity securities as available-for-sale or trading securities, depending on our investment strategy for the securities. For available-for-sale securities, we recognized periodic changes in the difference between fair value and cost in Unrealized gains (losses) on available-for-sale securities and other in our Consolidated Statements of Comprehensive Income (Loss) . Realized gains and losses upon sale of available-for-sale securities were reclassified from other comprehensive income (loss) and recognized on the trade date in Gains (losses) on investments, net in our Consolidated Statements of Operations . We used the FIFO method to determine the cost basis on sales of available-for-sale securities. For trading securities, we recognized periodic changes in the fair value of the securities in Gains (losses) on investments, net in our Consolidated Statements of Operations . Effective January 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments (the “New Investment Standard”) , which established new requirements for investments in equity securities in ASC Topic 321, Investments - Equity Securities . Accordingly, beginning in 2018, we recognize periodic changes in the fair value of all of our equity securities with a readily determinable fair value that are not accounted for using the equity method in Gains (losses) on investments, net in our Consolidated Statements of Operations . We recognize dividend income on equity securities on the ex-dividend date and report such income in Other, net in our Consolidated Statements of Operations . Restricted Marketable Investment Securities Restricted marketable investment securities that are pledged as collateral for our letters of credit or surety bonds are included in Other noncurrent assets, net in our Consolidated Balance Sheets . Restricted marketable securities are accounted for in the same manner as marketable securities that are not restricted, however, the restricted marketable securities are presented differently in the consolidated financial statements. |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Our investments in unconsolidated entities consist of investments in equity securities that are not publicly traded and do not have readily determinable fair values. Equity Method We use the equity method to account for investments when we have the ability to exercise significant influence on the operating decisions of the investee. Such investments in unconsolidated entities 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 (losses) of unconsolidated affiliates, net in our Consolidated Statements of Operations . The carrying amount of such 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 Consolidated Statements of Operations and include the intra-entity profit eliminations within Equity in earnings (losses) of unconsolidated affiliates, net in our Consolidated Statements of Operations . Other Investments Prior to January 1, 2018, we accounted for other investments without a readily determinable fair value using the cost method. In connection with our adoption of the New Investment Standard as of January 1, 2018, we have elected to measure such investments at cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. We consider information in periodic financial statements and other documentation provided by our investees and we may make inquiries of investee management to determine whether observable price changes have occurred. Impairment Considerations We evaluate all of our investments in unconsolidated entities periodically to determine whether events or changes in circumstances have 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, we adjust the carrying amount of the investment to its estimated fair value and recognize the impairment loss in Gains (losses) on investments, net in our Consolidated Statements of Operations |
Property and Equipment | Property and Equipment Property and equipment is stated at cost, less accumulated depreciation. Depreciation is recorded on a straight-line basis over lives ranging from one to 40 years. 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. 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 in our Consolidated Statements of Operations. 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, 2018 and 2017 is assigned to reporting units of our Hughes segment. We test such goodwill for impairment in the second fiscal quarter. The goodwill impairment test involves a comparison of the fair value of a reporting unit with its carrying amount, including goodwill. We typically estimate fair value of 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, we recognize an impairment loss equal to such excess, not to exceed the carrying amount of goodwill. We may bypass the quantitative 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 their useful lives. 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 (see Impairment of Long-lived Assets above). 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. |
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 . We report unamortized debt issuance costs as a reduction of the related long-term debt in our Consolidated Balance Sheets |
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 based on enacted tax laws 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. |
Cost of Sales - Services and Equipment | Cost of Sales - Services and Equipment Cost of sales - services and other in our Consolidated Statements of Operations primarily consists of costs of satellite capacity and services, hub infrastructure, customer care, wireline and wireless capacity, and direct labor costs associated with the services provided. Cost of sales - services and other generally are charged to expense as incurred. Cost of sales - equipment in our Consolidated Statements of Operations primarily consists of inventory costs, including freight and royalties. Cost of sales - equipment |
Research and Development | Research and Development Costs incurred in research and development activities are generally expensed as incurred. A significant portion of our research and development costs are incurred in connection with the specific requirements of a customer’s ord er. In such instances, the amounts for these customer funded development efforts are included in |
Stock-based Compensation Expense | 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. We adopted ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, prospectively as of January 1, 2017. 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. Upon adoption of this standard as of January 1, 2017, we recorded a $14 million deferred tax asset and a corresponding credit to Accumulated earnings in our Consolidated Balance Sheets for excess tax benefits that had not previously been recognized because the related tax deductions had not reduced taxes payable. We did not change our accounting policy to estimate forfeitures in determining compensation cost. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in Selling, general and administrative expenses in Consolidated Statements of Operations |
Recently Adopted and Not Yet Adopted Accounting Pronouncements | Restricted Cash and Cash Equivalents ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents in our Statement of Cash Flows. We adopted ASU No. 2016-18 as of January 1, 2018. As a result, the beginning and ending balances of cash and cash equivalents presented in our Consolidated Statements of Cash Flows include amounts for restricted cash and cash equivalents, which historically were not included in such balances, and receipts and payments of restricted cash and cash equivalents, exclusive of transfers to and from unrestricted accounts, are reported in our Consolidated Statements of Cash Flows . The adoption of this accounting standard did not have a material impact on our Statements of Cash Flows and related disclosures. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This standard requires lessees to recognize assets and liabilities for all leases with lease terms greater 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, finance or sales-type leases and requires certain additional disclosures. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The new standard, as amended in July 2018, may be applied either on a modified retrospective basis or prospectively as of the adoption date without restating prior periods, with certain practical expedients available. We adopted the new standard prospectively as of January 1, 2019 and elected certain practical expedients permitted under the new standard’s transition guidance. This allows us to carry forward the historical lease classification and to not reassess the lease term for leases in existence as of the adoption date and to carry forward our historical accounting treatment for land easements on agreements existing on the adoption date. We also made policy elections for certain classes of underlying assets to not separate lease and non-lease components in a contract as permitted under the new standard. We currently lease real estate and equipment from third parties under operating leases and we lease certain satellites from third parties under capital leases. We also lease satellites, real estate and equipment to some of our customers. Upon adoption of the new standard, we recognized right-of-use assets and liabilities related to substantially all operating leases where we are the lessee. While our work is not finalized, we expect that the aggregate increase in our operating lease assets and liabilities will be approximately 1% of total assets as of January 1, 2019. Our accounting for capital leases was not significantly impacted on the adoption date. Based on our transition method, practical expedients and policy elections, our leases existing as of the adoption date will continue to be reported in our Consolidated Statements of Operations in accordance with current accounting standards throughout their remaining terms unless the leases are modified. However, all leases entered into or modified after the adoption date will be accounted for in accordance with the new standard. The classification of those leases as operating, finance or sales type may be impacted by the new standard and affect our future operating results and the classification of our cash flows. Recently Issued Accounting Pronouncements Not Yet Adopted Credit Losses In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments , which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses instead of incurred losses. It also modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are currently assessing the impact of adopting this new accounting standard on our Consolidated Financial Statements and related disclosures. Revenue Recognition and Financial Instruments On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers and related amendments (collectively, the “New Revenue Standard”) . The New Revenue Standard established a comprehensive new model for revenue recognition, which is codified in Topic 606 (see Revenue Recognition above), and provided guidance for certain costs associated with customer contracts. We adopted the New Revenue Standard using the modified retrospective method for contracts that were not completed as of January 1, 2018. Accordingly, comparative information for prior periods has not been restated and continues to be reported under the accounting standards in effect for those periods. Upon adoption of the New Revenue Standard, we recognized the cumulative effect of its initial application as a net increase to Accumulated earnings in our Consolidated Balance Sheets of $23 million , net of related income taxes. The adoption of the New Revenue Standard also impacted the timing of recognition of certain fees charged to our customers in our consumer markets; however, the adoption has not had, and we do not expect it to have, a material impact on the overall timing or amount of revenue recognition. The primary impacts of the New Revenue Standard on our operating results relate to how we account for sales incentive costs. Historically, we charged sales incentives to expense as incurred, except for incentives related to the consumer business in our Hughes segment, which were initially deferred and subsequently amortized over the related service agreement term. Under the New Revenue Standard, we continue to defer incentives for our consumer business; however, we now amortize those incentives over the estimated customer life, which includes expected contract renewal periods. In addition, we now defer certain sales incentives related to other businesses in our Hughes segment and amortize those incentives over the related service agreement term. As a result of these changes, we have recognized additional contract acquisition costs on our Consolidated Balance Sheets and the costs generally are recognized as expenses over a longer period of time in our Consolidated Statements of Operations . The adoption of the New Revenue Standard by an unconsolidated entity had a similar impact on our investment in the unconsolidated entity, which we account for using the equity method. Additionally, on January 1, 2018, we prospectively adopted the applicable requirements of the New Investment Standard. The New Investment Standard substantially revises standards for the recognition, measurement and presentation of financial instruments, including requiring all equity investments, except for investments in consolidated subsidiaries and investments accounted for using the equity method, to be measured at fair value with changes in the fair value recognized through earnings. The New Investment Standard permits an entity to elect to measure an equity security without a readily determinable fair value at its cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. It also amends certain disclosure requirements associated with equity investments and the fair value of financial instruments. Upon adoption of the New Investment Standard on January 1, 2018, we recorded a $10 million charge to Accumulated earnings to include net unrealized losses on our marketable equity securities then designated as available-for-sale, which previously were recorded in Accumulated other comprehensive loss in our Consolidated Balance Sheets . For our equity investments without a readily determinable fair value that were previously accounted for using the cost method, we have elected to measure such securities at cost, adjusted for impairments and observable price changes. We expect our future net income or loss to be more volatile as a result of these changes in accounting for our investments in equity securities that were previously accounted for as available-for-sale or using the cost method. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The cumulative effects of changes to the impacted line items on our Consolidated Balance Sheets as of January 1, 2018 for the adoption of these standards were as follows: Balance at December 31, 2017 Adjustments Due to the Balance at January 1, 2018 New Revenue Standard New Investment Standard (In thousands) Assets: Trade accounts receivable and contract assets, net $ 196,840 $ (7,103 ) $ — $ 189,737 Other current assets $ 91,671 $ 533 $ — $ 92,204 Investments in unconsolidated entities $ 161,427 $ 6,917 $ — $ 168,344 Other noncurrent assets, net $ 214,814 $ 22,545 $ — $ 237,359 Total assets $ 8,750,014 $ 22,892 $ — $ 8,772,906 Liabilities: Contract liabilities $ 65,959 $ (1,542 ) $ — $ 64,417 Accrued expenses and other $ 82,647 $ 255 $ — $ 82,902 Deferred tax liabilities, net $ 436,023 $ 5,124 $ — $ 441,147 Other noncurrent liabilities $ 128,503 $ (4,068 ) $ — $ 124,435 Total liabilities $ 4,572,629 $ (231 ) $ — $ 4,572,398 Stockholders’ Equity: Accumulated other comprehensive income (loss) $ (130,154 ) $ — $ 10,467 $ (119,687 ) Accumulated earnings (losses) $ 721,316 $ 23,123 $ (10,467 ) $ 733,972 Total stockholders’ equity $ 4,177,385 $ 23,123 $ — $ 4,200,508 Total liabilities and stockholders’ equity $ 8,750,014 $ 22,892 $ — $ 8,772,906 Our adoption of these standards impacted the referenced line items on our Consolidated Balance Sheets , Statement of Operations and Statements of Comprehensive Income (Loss) as follows: As of December 31, 2018 As Reported Adjustments Due to the Balances If We Had Not Adopted the New Standards Balance Sheet New Revenue Standard New Investment Standard (In thousands) Assets: Trade accounts receivable and contract assets, net $ 201,096 $ 8,379 $ — $ 209,475 Other current assets $ 18,539 $ (533 ) $ — $ 18,006 Investments in unconsolidated entities $ 262,473 $ (5,639 ) $ — $ 256,834 Other noncurrent assets, net $ 263,892 $ (35,314 ) $ — $ 228,578 Total assets $ 8,661,294 $ (33,107 ) $ — $ 8,628,187 Liabilities: Contract liabilities $ 72,284 $ 878 $ — $ 73,162 Accrued expenses and other $ 72,470 $ (255 ) $ — $ 72,215 Deferred tax liabilities, net $ 465,933 $ (6,976 ) $ — $ 458,957 Other noncurrent liabilities $ 121,546 $ 1,635 $ — $ 123,181 Total liabilities $ 4,505,820 $ (4,718 ) $ — $ 4,501,102 Stockholders’ Equity: Accumulated other comprehensive income (loss) $ (125,100 ) $ — $ 20,064 $ (105,036 ) Accumulated earnings (losses) $ 694,129 $ (28,389 ) $ (20,064 ) $ 645,676 Total stockholders’ equity $ 4,155,474 $ (28,389 ) $ — $ 4,127,085 Total liabilities and stockholders’ equity $ 8,661,294 $ (33,107 ) $ — $ 8,628,187 For the year ended December 31, 2018 As Reported Adjustments Due to the Balances If We Had Not Adopted the New Standards Statement of Operations New Revenue Standard New Investment Standard (In thousands, except per share amounts) Revenue: Services and other revenue - other $ 1,507,259 $ 2,323 $ — $ 1,509,582 Total revenue $ 2,091,363 $ 2,323 $ — $ 2,093,686 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) $ 604,305 $ 2,738 $ — $ 607,043 Selling, general and administrative expenses $ 436,247 $ 8,520 $ — $ 444,767 Total costs and expenses $ 1,908,120 $ 11,258 $ — $ 1,919,378 Operating income (loss) $ 183,243 $ (8,935 ) $ — $ 174,308 Other income (expense): Interest expense, net of amounts capitalized $ (248,568 ) $ 539 $ — $ (248,029 ) Gains and losses on investments, net $ (12,207 ) $ — $ (30,531 ) $ (42,738 ) Equity in earnings (losses) of unconsolidated affiliates, net $ (5,954 ) $ 1,278 $ — $ (4,676 ) Total other income (expense), net $ (191,203 ) $ 1,817 $ (30,531 ) $ (219,917 ) Income (loss) from continuing operations before income taxes $ (7,960 ) $ (7,118 ) $ (30,531 ) $ (45,609 ) Income tax benefit (provision) $ (30,673 ) $ 1,852 $ — $ (28,821 ) Net income (loss) $ (38,633 ) $ (5,266 ) $ (30,531 ) $ (74,430 ) Net income (loss) attributable to EchoStar Corporation common stock $ (40,475 ) $ (5,266 ) $ (30,531 ) $ (76,272 ) Earnings (losses) per share: Basic $ (0.42 ) $ (0.05 ) $ (0.32 ) $ (0.79 ) Diluted $ (0.42 ) $ (0.05 ) $ (0.32 ) $ (0.79 ) For the year ended December 31, 2018 As Reported Adjustments Due to the Balances If We Had Not Adopted the New Standards Statement of Comprehensive Income (Loss) New Revenue Standard New Investment Standard (In thousands) Net income (loss) $ (38,633 ) $ (5,266 ) $ (30,531 ) $ (74,430 ) Other comprehensive income (loss), net of tax: Unrealized gains (losses) on available-for-sale securities and other $ (2,872 ) $ — $ (6,485 ) $ (9,357 ) Other-than-temporary impairment loss on available-for-sale securities in net income $ — $ — $ 37,016 $ 37,016 Total other comprehensive income (loss), net of tax $ (5,413 ) $ — $ 30,531 $ 25,118 Comprehensive income (loss) $ (44,046 ) $ (5,266 ) $ — $ (49,312 ) Comprehensive income (loss) attributable to EchoStar Corporation $ (44,499 ) $ (5,266 ) $ — $ (49,765 ) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table provides information about our contract balances with customers, including amounts for certain embedded leases. As of December 31, 2018 January 1, 2018 (In thousands) Trade accounts receivable: Sales and services $ 154,415 $ 156,794 Leasing 7,990 10,355 Total 162,405 167,149 Contract assets 55,295 34,615 Allowance for doubtful accounts (16,604 ) (12,027 ) Total trade accounts receivable and contract assets, net $ 201,096 $ 189,737 Trade accounts receivable - DISH Network: Sales and services $ 12,274 $ 16,118 Leasing 1,926 27,177 Total trade accounts receivable - DISH Network, net $ 14,200 $ 43,295 Contract liabilities: Current $ 72,284 $ 64,417 Noncurrent 10,133 13,036 Total contract liabilities $ 82,417 $ 77,453 |
Schedule of Disaggregation of Revenue | The following table disaggregates revenue based on the nature of products and services and by segment. Hughes ESS Corporate and Other Consolidated (In thousands) For the year ended December 31, 2018 Equipment $ 119,657 $ — $ — $ 119,657 Services 1,313,059 24,113 18,908 1,356,080 Design, development and construction services 85,753 — — 85,753 Revenue from sales and services 1,518,469 24,113 18,908 1,561,490 Leasing income 198,059 333,945 (2,131 ) 529,873 Total revenue $ 1,716,528 $ 358,058 $ 16,777 $ 2,091,363 The following table disaggregates revenue from customer contracts attributed to our North America (the U.S and its territories, Mexico and Canada), South and Central America and other foreign locations as well as by segment, based on the location where the goods or services are provided. All other revenue includes transactions with customers in Asia, Africa, Australia, Europe, and the Middle East. Hughes ESS Corporate and Other Consolidated (In thousands) For the year ended December 31, 2018 North America $ 1,444,628 $ 357,357 $ 17,478 $ 1,819,463 South and Central America 101,632 — — 101,632 All other 170,268 701 (701 ) 170,268 Total revenue $ 1,716,528 $ 358,058 $ 16,777 $ 2,091,363 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The following table presents the operating results of our discontinued operations for the years ended December 31, 2017 and 2016 : For the years 2017 2016 (In thousands) Revenue: Equipment, services and other revenue - DISH Network $ 143,118 $ 1,127,610 Equipment, services and other revenue - other 10,344 118,654 Total revenue 153,462 1,246,264 Costs and expenses: Cost of equipment, services and other 121,967 1,010,421 Selling, general and administrative expenses 5,439 60,590 Research and development expenses 4,635 44,854 Depreciation and amortization 11,659 62,164 Total costs and expenses 143,700 1,178,029 Operating income 9,762 68,235 Other income (expense): Interest expense (15 ) (144 ) Equity in earnings (losses) of unconsolidated affiliates, net (1,159 ) 2,508 Other, net (57 ) (381 ) Total income (expense), net (1,231 ) 1,983 Income from discontinued operations before income taxes 8,531 70,218 Income tax provision (22 ) (25,898 ) Net income from discontinued operations $ 8,509 $ 44,320 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of 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, 2018 2017 2016 (In thousands, except per share amounts) Amounts attributable to EchoStar Corporation common stock: Net income from continuing operations $ (40,475 ) $ 385,261 $ 137,353 Net income from discontinued operations — 8,509 44,320 Net income (loss) attributable to EchoStar Corporation common stock $ (40,475 ) $ 393,770 $ 181,673 Weighted-average common shares outstanding: Basic 96,250 95,425 93,795 Dilutive impact of stock awards outstanding — 1,316 615 Diluted 96,250 96,741 94,410 Earnings per share: Basic: Continuing operations $ (0.42 ) $ 4.04 $ 1.46 Discontinued operations — 0.09 0.48 Total basic earnings (loss) per share $ (0.42 ) $ 4.13 $ 1.94 Diluted: Continuing operations $ (0.42 ) $ 3.98 $ 1.45 Discontinued operations — 0.09 0.47 Total diluted earnings (loss) per share $ (0.42 ) $ 4.07 $ 1.92 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) and Related Tax Effects (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |
Schedule of reclassifications out of accumulated other comprehensive loss | The changes in the balances of Accumulated other comprehensive loss by component were as follows: Cumulative Foreign Currency Translation Losses Unrealized Gain (Loss) On Available-For-Sale Securities Other Accumulated Other Comprehensive Loss (In thousands) Balance, December 31, 2016 (135,434 ) 10,646 (15 ) (124,803 ) Other comprehensive income before reclassifications 16,004 (21,987 ) 92 (5,891 ) Amounts reclassified to net income — 540 — 540 Other comprehensive income (loss) 16,004 (21,447 ) 92 (5,351 ) Balance, December 31, 2017 (119,430 ) (10,801 ) 77 (130,154 ) Cumulative effect of adoption of the New Investment Standard — 10,467 — 10,467 Balance, January 1, 2018 (119,430 ) (334 ) 77 (119,687 ) Other comprehensive loss before reclassifications (34,399 ) (962 ) (1,910 ) (37,271 ) Amounts reclassified to net income 32,136 (278 ) — 31,858 Other comprehensive loss (2,263 ) (1,240 ) (1,910 ) (5,413 ) Balance, December 31, 2018 (121,693 ) (1,574 ) (1,833 ) (125,100 ) |
Marketable Investment Securit_2
Marketable Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Schedule of Investments | Our marketable investment securities portfolio consists of various debt and equity instruments summarized in the table below. Certain of our investments in debt and equity instruments have historically experienced and are likely to continue experiencing volatility. As of December 31, 2018 2017 (In thousands) Marketable investment securities: Debt securities: Corporate bonds $ 1,735,653 $ 542,573 Other debt securities 464,997 142,036 Total debt securities 2,200,650 684,609 Equity securities 90,976 139,571 Total marketable investment securities 2,291,626 824,180 Less: Restricted marketable investment securities 9,474 10,019 Total marketable investment securities - current $ 2,282,152 $ 814,161 |
Schedule of Unrealized Gains (Losses) on Available for Sale Securities | A summary of our available-for-sale debt securities, exclusive of securities where we have elected the fair value option, is presented in the table below. Amortized Unrealized Estimated Cost Gains Losses Fair Value (In thousands) As of December 31, 2018 Corporate bonds $ 1,689,093 $ 318 $ (1,896 ) $ 1,687,515 Other debt securities 464,993 7 (3 ) 464,997 Total available-for-sale debt securities $ 2,154,086 $ 325 $ (1,899 ) $ 2,152,512 As of December 31, 2017 Corporate bonds $ 542,861 $ — $ (288 ) $ 542,573 Other debt securities 142,082 — (46 ) 142,036 Total available-for-sale debt securities $ 684,943 $ — $ (334 ) $ 684,609 |
Schedule of Fair Value Measurements | Our marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of December 31, 2018 and 2017 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of December 31, 2018 2017 Level 1 Level 2 Total Level 1 Level 2 Total (In thousands) Debt securities: Corporate bonds $ — $ 1,735,653 $ 1,735,653 $ — $ 542,573 $ 542,573 Other debt securities 9,474 455,523 464,997 13,311 128,725 142,036 Total debt securities 9,474 2,191,176 2,200,650 13,311 671,298 684,609 Equity securities 85,298 5,678 90,976 133,736 5,835 139,571 Total marketable investment securities $ 94,772 $ 2,196,854 $ 2,291,626 $ 147,047 $ 677,133 $ 824,180 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Schedule of inventory | Our inventory consisted of the following: As of December 31, 2018 2017 (In thousands) Raw materials $ 4,856 $ 5,484 Work-in-process 13,901 7,442 Finished goods 56,622 70,669 Total inventory $ 75,379 $ 83,595 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Depreciation expense associated with our property and equipment consisted of the following: For the years ended December 31, 2018 2017 2016 (In thousands) Buildings and improvements $ 11,596 $ 17,285 $ 7,505 Furniture, fixtures, equipment and other 83,746 72,387 64,767 Customer rental equipment 174,749 146,562 114,568 Satellites 285,206 239,072 191,729 Total depreciation expense $ 555,297 $ 475,306 $ 378,569 Depreciable Life In Years As of December 31, 2018 2017 (In thousands) Land — $ 33,606 $ 33,713 Buildings and improvements 1 to 40 174,227 185,148 Furniture, fixtures, equipment and other 1 to 12 812,566 736,533 Customer rental equipment 2 to 4 1,159,977 929,775 Satellites - owned 2 to 15 2,816,628 3,064,391 Satellites - acquired under capital leases 10 to 15 1,051,110 916,820 Construction in progress — 307,026 260,220 Total property and equipment 6,355,140 6,126,600 Accumulated depreciation (2,940,232 ) (2,661,129 ) Property and equipment, net $ 3,414,908 $ 3,465,471 |
Schedule of Construction in Progress | Construction in progress consisted of the following: As of December 31, 2018 2017 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 277,583 $ 211,765 Satellite related equipment 13,001 28,358 Other 16,442 20,097 Construction in progress $ 307,026 $ 260,220 |
Schedule of Satellites | Our operating satellite fleet consists of both owned and leased satellites detailed in the table below as of December 31, 2018 . 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 XIX Hughes December 2016 97.1 W 15 EchoStar VII (2)(3)(4) ESS February 2002 119 W 3 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 86.4 W 2 EchoStar XIV (2)(3) ESS March 2010 119 W 11 EchoStar XVI (2) ESS November 2012 61.5 W 15 EchoStar XXI Corporate and Other June 2017 10.25 E 15 EchoStar XXIII Corporate and Other March 2017 45 W 15 EUTELSAT 10A (“W2A”) (6) Corporate and Other April 2009 10 E — Capital Leases: Eutelsat 65 West A Hughes March 2016 65 W 15 Telesat T19V Hughes July 2018 63 W 15 Nimiq 5 (2) ESS September 2009 72.7 W 15 QuetzSat-1 (2) ESS September 2011 77 W 10 EchoStar 105/SES-11 ESS October 2017 105 W 15 (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 (the “Hughes Acquisition”). (2) See Note 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 20 ). (4) Fully depreciated assets as of December 31, 2018. (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. |
Goodwill, Regulatory Authoriz_2
Goodwill, Regulatory Authorizations and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of regulatory authorizations with finite and indefinite useful lives | Regulatory Authorizations included amounts with both finite and indefinite useful lives, as follows: As of Additions Impairment Currency Translation Adjustment As of (In thousands) Finite useful lives: Cost $ 92,621 $ — $ (37,476 ) $ (8,358 ) $ 46,787 Accumulated amortization (21,342 ) (5,190 ) 7,848 1,894 (16,790 ) Net 71,279 (5,190 ) (29,628 ) (6,464 ) 29,997 Indefinite lives 465,657 — — — 465,657 Total regulatory authorizations, net $ 536,936 $ (5,190 ) $ (29,628 ) $ (6,464 ) $ 495,654 |
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, 2018 2017 Cost Accumulated Amortization Carrying Amount Cost Accumulated Amortization Carrying Amount (In thousands) Customer relationships 8 $ 270,300 $ (244,787 ) $ 25,513 $ 270,300 $ (231,642 ) $ 38,658 Technology-based 6 61,283 (61,004 ) 279 61,300 (60,927 ) 373 Trademark portfolio 20 29,700 (11,261 ) 18,439 29,700 (9,776 ) 19,924 Total other intangible assets $ 361,283 $ (317,052 ) $ 44,231 $ 361,300 $ (302,345 ) $ 58,955 |
Schedule of estimated future amortization of intangible assets | As of December 31, 2018 , 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, 2019 $ 18,304 2020 14,663 2021 8,029 2022 5,065 2023 5,065 Thereafter 23,102 Total $ 74,228 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Entities | A summary of financial information for Dish Mexico and our equity method investees in the aggregate is as follows: As of December 31, 2018 2017 Dish Mexico Aggregate Dish Mexico Aggregate (In thousands) Balance sheet data: Current assets $ 147,140 162,593 $ 146,851 172,234 Noncurrent assets 187,130 188,077 185,345 187,067 Total assets $ 334,270 350,670 $ 332,196 359,301 Current liabilities $ 128,708 129,837 $ 129,087 130,443 Noncurrent liabilities 109,643 110,460 109,428 110,472 Total liabilities $ 238,351 240,297 $ 238,515 240,915 As of December 31, 2018 2017 2016 Dish Mexico Aggregate Dish Mexico Aggregate Dish Mexico Aggregate (In thousands) Income statement data: Revenue $ 444,264 $ 475,559 $ 497,096 $ 535,153 $ 498,069 $ 541,066 Operating income (loss) $ (55,062 ) $ (43,553 ) $ 15,094 $ 31,919 $ 32,280 $ 52,656 Income (loss) before income taxes $ (33,449 ) $ (23,701 ) $ 18,267 $ 32,739 $ 10,195 $ 29,083 Net income (loss) $ (20,126 ) $ (10,378 ) $ 15,658 $ 30,130 $ 6,374 $ 25,262 Net income (loss) attributable to EchoStar $ (10,828 ) $ (5,954 ) $ 9,946 $ 16,973 $ 1,358 $ 10,802 As of December 31, 2018 2017 (In thousands) Investments in unconsolidated entities: Equity method $ 182,035 $ 91,702 Other equity investments without a readily determinable fair value 80,438 69,725 Total investments in unconsolidated entities $ 262,473 $ 161,427 |
Long-Term Debt and Capital Le_2
Long-Term Debt and Capital Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 long-term debt and capital lease obligations. Effective Interest Rate As of December 31, 2018 2017 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ 920,836 $ 932,696 $ 990,000 $ 1,042,609 5 1/4% Senior Secured Notes due 2026 5.320% 750,000 695,865 750,000 769,305 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 934,902 900,000 992,745 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 696,353 750,000 791,865 Less: Unamortized debt issuance costs (16,757 ) — (24,857 ) — Subtotal 3,304,079 $ 3,259,816 3,365,143 $ 3,596,524 Capital lease obligations 228,702 269,701 Total debt and capital lease obligations 3,532,781 3,634,844 Less: Current portion (959,577 ) (40,631 ) Long-term debt and capital lease obligations, net $ 2,573,204 $ 3,594,213 |
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, 2018 , are as follows: Amount (In thousands) For the Years Ending December 31, 2019 $ 88,615 2020 88,395 2021 84,248 2022 63,484 2023 63,360 Thereafter 47,520 Total minimum lease payments 435,622 Less: Amount representing use of the orbital location and estimated executory costs including profit thereon, included in total minimum lease payments (136,799 ) Net minimum lease payments 298,823 Less: Amount representing interest (70,121 ) Present value of net minimum lease payments 228,702 Less: Current portion (40,662 ) Long-term portion of capital lease obligations $ 188,040 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income (loss) before income taxes | The components of Income (loss) from continuing operations before income taxes in our Consolidated Statements of Operations are as follows: For the years ended December 31, 2018 2017 2016 (In thousands) Domestic $ 151,002 $ 146,383 $ 236,200 Foreign (158,962 ) (45,689 ) (19,574 ) Income from continuing operations before income taxes $ (7,960 ) $ 100,694 $ 216,626 |
Schedule of components of the benefit (provision) for income taxes | The components of Income tax benefit (provision), net , in our Consolidated Statements of Operations are as follows: For the years ended December 31, 2018 2017 2016 (In thousands) Current benefit (provision): Federal $ (1,472 ) $ (8,652 ) $ (19,385 ) State (184 ) (1,237 ) 267 Foreign (2,690 ) (2,335 ) (2,481 ) Total current benefit (provision) (4,346 ) (12,224 ) (21,599 ) Deferred benefit (provision): Federal (19,189 ) 299,693 (58,250 ) State (7,365 ) 2,356 (6,232 ) Foreign 227 (5,539 ) 5,827 Total deferred benefit (provision) (26,327 ) 296,510 (58,655 ) Total income tax benefit (provision), net $ (30,673 ) $ 284,286 $ (80,254 ) |
Schedule of income tax rate reconciliation | The actual tax provisions for the years ended December 31, 2018 , 2017 and 2016 reconcile to the amounts computed by applying the statutory federal tax rate to Income (loss) from continuing operations before income taxes in our Consolidated Statements of Operations as shown below: For the years ended December 31, 2018 2017 2016 Statutory rate 21.0 % 35.0 % 35.0 % State income taxes, net of Federal benefit (94.4 )% (12.2 )% 5.0 % Permanent differences (16.9 )% (0.3 )% 1.4 % Tax credits 68.6 % (8.1 )% (4.2 )% Valuation allowance (491.9 )% 4.6 % (0.3 )% Enactment of Tax Cuts and Job Act of 2017 — % (301.4 )% — % Rates different than statutory 116.6 % — % — % Other 11.6 % 0.1 % 0.1 % Total effective tax rate (385.4 )% (282.3 )% 37.0 % |
Schedule of deferred tax assets and liabilities | The components of our deferred tax assets and liabilities are as follows: As of December 31, 2018 2017 (In thousands) Deferred tax assets: Net operating losses, credit and other carryforwards $ 284,300 $ 278,540 Unrealized losses on investments, net 41,852 22,260 Accrued expenses 22,148 23,583 Stock-based compensation 10,210 9,148 Other assets 22,366 11,890 Total deferred tax assets 380,876 345,421 Valuation allowance (109,762 ) (66,886 ) Deferred tax assets after valuation allowance 271,114 278,535 Deferred tax liabilities: Depreciation and amortization (731,447 ) (708,599 ) Other liabilities (1,290 ) (1,509 ) Total deferred tax liabilities (732,737 ) (710,108 ) Total net deferred tax liabilities $ (461,623 ) $ (431,573 ) |
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 2018 2017 2016 (In thousands) Balance as of beginning of period $ 63,296 $ 63,502 $ 62,366 Additions based on tax positions related to the current year 4,361 1,116 2,132 Additions based on tax positions related to prior years 2,539 258 3 Reductions based on tax positions related to prior years (656 ) (852 ) (734 ) Reductions based on tax settlements — — (265 ) Reductions based on expirations of statute of limitations — (728 ) — Balance as of end of period $ 69,540 $ 63,296 $ 63,502 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 are as follows: Options Outstanding Options Exercisable Price Range Number Outstanding as of December 31, 2018 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price Number Exercisable as of December 31, 2018 Weighted- Average Remaining Contractual Term (In Years) Weighted- Average Exercise Price $0.00 - $20.00 51,359 2 $ 18.74 51,359 2 $ 18.74 $20.01 - $25.00 429,306 1 $ 20.18 429,306 1 $ 20.18 $25.01 - $30.00 3,300 3 $ 26.42 3,300 3 $ 26.42 $30.01 - $35.00 352,500 4 $ 34.22 352,500 4 $ 34.22 $35.01 - $40.00 1,985,200 4 $ 38.19 1,832,500 3 $ 38.09 $40.01 - $45.00 277,000 7 $ 43.98 111,400 7 $ 44.04 $45.01 - $50.00 766,973 6 $ 47.58 577,473 5 $ 47.64 $50.01 - $55.00 487,400 7 $ 52.24 197,300 6 $ 51.99 $55.01 - $60.00 600,000 8 $ 56.97 127,000 8 $ 56.95 $60.01 and over 60,000 7 $ 60.70 28,000 5 $ 60.70 5,013,038 5 $ 41.80 3,710,138 4 $ 38.59 |
Schedule of stock option activity | Our stock option activity was as follows: For the years ended December 31, 2018 2017 2016 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period 4,951,256 $ 41.42 5,968,763 $ 39.30 5,893,241 $ 38.38 Granted 215,500 $ 51.71 1,262,500 $ 57.12 732,000 $ 41.86 Exercised (108,318 ) $ 40.67 (1,018,507 ) $ 35.84 (453,182 ) $ 28.83 Forfeited and canceled (45,400 ) $ 50.21 (1,261,500 ) $ 51.63 (203,296 ) $ 45.15 Total options outstanding, end of period 5,013,038 $ 41.80 4,951,256 $ 41.42 5,968,763 $ 39.30 Exercisable at end of period 3,710,138 $ 38.59 3,143,656 $ 36.98 3,551,063 $ 35.40 |
Schedule of restricted stock unit activity | Our restricted stock unit activity was as follows: For the years ended December 31, 2018 2017 2016 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 — $ — 6,667 $ 34.22 57,328 $ 42.31 Vested — $ — (6,667 ) $ 34.22 (50,661 ) $ 43.38 Total restricted stock units outstanding, end of period — $ — — $ — 6,667 $ 34.22 |
Schedule of allocated non-cash, stock-based compensation expense for all employees | Total noncash, stock-based compensation expense for all of our employees is shown in the following table for the years ended December 31, 2018 , 2017 and 2016 , respectively, and was assigned to the same expense categories as the base compensation for such employees: For the years ended December 31, 2018 2017 2016 (In thousands) Research and development expenses $ 634 $ 1,010 $ 1,046 Selling, general and administrative expenses 9,356 10,630 9,865 Total stock-based compensation $ 9,990 $ 11,640 $ 10,911 |
Schedule of assumptions of Black-Scholes option valuation model | The fair value of each stock option granted for the years ended December 31, 2018 , 2017 and 2016 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: 2018 2017 2016 Risk-free interest rate 2.25% - 2.99% 1.98% - 2.05% 1.10% - 1.87% Volatility factor 22.77% - 23.28% 24.20% - 26.69% 27.22% - 27.37% Expected term of options in years 5.7 - 5.8 5.7 - 5.8 5.7 - 5.8 Weighted-average grant-date fair value $12.38 - $16.23 $15.25 - $16.49 $11.15 - $12.49 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of contractual obligations | The following table summarizes our contractual obligations at December 31, 2018 : Payments Due in the Year Ending December 31, Total 2019 2020 2021 2022 2023 Thereafter (In thousands) Long-term debt $ 3,320,836 $ 920,836 $ — $ 900,000 $ — $ — $ 1,500,000 Capital lease obligations 228,702 40,662 45,031 46,353 31,857 35,476 29,323 Interest on long-term debt and capital lease obligations 983,824 209,989 175,808 136,662 98,265 94,529 268,571 Satellite-related obligations 731,684 207,403 166,601 60,852 47,996 47,907 200,925 Operating lease obligations 93,918 21,146 18,081 13,873 10,118 8,814 21,886 Service commitments 866 176 181 186 192 131 — Total $ 5,359,830 $ 1,400,212 $ 405,702 $ 1,157,926 $ 188,428 $ 186,857 $ 2,020,705 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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. Capital expenditures are net of refunds and other receipts related to property and equipment and exclude capital expenditures from discontinued operations of $12 million and $70 million for the years ended December 31, 2017 and 2016 , respectively. Hughes ESS Corporate and Other Consolidated Total (In thousands) For the year ended December 31, 2018 External revenue $ 1,716,169 $ 355,734 $ 19,460 $ 2,091,363 Intersegment revenue $ 359 $ 2,324 $ (2,683 ) $ — Total revenue $ 1,716,528 $ 358,058 $ 16,777 $ 2,091,363 EBITDA $ 601,319 $ 308,058 $ (152,708 ) $ 756,669 Capital expenditures $ 390,108 $ (76,582 ) $ 164,091 $ 477,617 For the year ended December 31, 2017 External revenue $ 1,476,131 $ 390,831 $ 18,546 $ 1,885,508 Intersegment revenue $ 1,787 $ 1,413 $ (3,200 ) $ — Total revenue $ 1,477,918 $ 392,244 $ 15,346 $ 1,885,508 EBITDA $ 475,222 $ 315,285 $ 4,070 $ 794,577 Capital expenditures $ 376,502 $ 20,725 $ 169,157 $ 566,384 For the year ended December 31, 2016 External revenue $ 1,389,152 $ 406,970 $ 14,344 $ 1,810,466 Intersegment revenue $ 3,209 $ 690 $ (3,899 ) $ — Total revenue $ 1,392,361 $ 407,660 $ 10,445 $ 1,810,466 EBITDA $ 477,165 $ 341,516 $ (67,676 ) $ 751,005 Capital expenditures $ 322,362 $ 58,925 $ 247,223 $ 628,510 |
Schedule of reconciliation of EBITDA to reported income (loss) before income taxes | The following table reconciles total consolidated EBITDA to reported Income (loss) from continuing operations before income taxes in our Consolidated Statements of Operations : For the Years Ended December 31, 2018 2017 2016 (In thousands) EBITDA $ 756,669 $ 794,577 $ 751,005 Interest income and expense, net (168,293 ) (172,621 ) (102,237 ) Depreciation and amortization (598,178 ) (522,190 ) (432,904 ) Net income attributable to noncontrolling interests 1,842 928 762 Income (loss) from continuing operations before income taxes $ (7,960 ) $ 100,694 $ 216,626 |
Summary of total long-lived assets and revenue attributed to the North American and other foreign locations | 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 customers in the U.S. and its territories, Mexico and Canada. Central and South America revenue includes transactions with customers in Brazil, Colombia, Peru, Ecuador and other countries in this region. All other revenue includes transactions with customers in Asia, Africa, Australia, Europe, and the Middle East. The following table summarizes total long-lived assets and revenue attributed to the North America, South and Central America and other foreign locations. As of December 31, Long-lived assets: 2018 2017 (In thousands) North America $ 4,114,087 $ 4,221,793 Central and South America 226,232 213,890 All other 118,647 129,852 Total long-lived assets $ 4,458,966 $ 4,565,535 For the Years Ended December 31, Revenue: 2018 2017 2016 (In thousands) North America $ 1,819,463 $ 1,612,349 $ 1,566,576 Central and South America 101,632 90,000 50,952 All other 170,268 183,159 192,938 Total revenue $ 2,091,363 $ 1,885,508 $ 1,810,466 |
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, 2018 2017 2016 (In thousands) Total revenue: DISH Network: Hughes segment $ 50,275 $ 82,625 $ 107,300 EchoStar Satellite Services segment 309,815 344,841 349,549 Corporate and Other 19,075 18,522 15,433 Total DISH Network 379,165 445,988 472,282 All other 1,712,198 1,439,520 1,338,184 Total revenue $ 2,091,363 $ 1,885,508 $ 1,810,466 Percentage of total revenue: DISH Network 18.1 % 23.7 % 26.1 % All other 81.9 % 76.3 % 73.9 % |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 (2) (In thousands, except per share amounts) Year Ended December 31, 2018 Total revenue $ 501,792 $ 525,957 $ 532,953 $ 530,661 Operating income $ 58,010 $ 74,765 $ 70,035 $ (19,567 ) Net income (loss) $ (21,171 ) $ 77,684 $ 16,502 $ (111,648 ) Net income (loss) attributable to EchoStar common stock $ (21,551 ) $ 77,222 $ 16,052 $ (112,198 ) Basic earnings per share $ (0.22 ) $ 0.80 $ 0.17 $ (1.17 ) Diluted earnings per share $ (0.22 ) $ 0.80 $ 0.17 $ (1.17 ) Year Ended December 31, 2017 Total revenue (1) $ 433,151 $ 465,076 $ 481,233 $ 506,048 Operating income (1) $ 51,651 $ 45,890 $ 56,414 $ 42,352 Net income $ 37,352 $ 7,122 $ 35,201 $ 313,814 Net income attributable to EchoStar common stock $ 38,924 $ 6,940 $ 34,669 $ 313,237 Basic earnings per share $ 0.41 $ 0.07 $ 0.36 $ 3.29 Diluted earnings per share $ 0.41 $ 0.07 $ 0.36 $ 3.23 (1) As a result of the Share Exchange, the consolidated financial statements of the EchoStar Technologies businesses have been presented as discontinued operations and, as such, have been excluded from the quarterly financial data presented above for all periods presented. See Note in the notes to our accompanying Consolidated Financial Statements for further discussion of our discontinued operations. (2) Net income and related per share amounts for the three months ended December 31, 2018 include an impairment charge of $65 million related to certain long-lived assets in Brazil. See Note 10 for additional information related to the impairment charge. Net income and related per share amounts for the three months ended December 31, 2017 include a discrete income tax benefit of $304 million related to the enactment of federal tax legislation in December 2017, a gain of $23 on our trading securities, and an impairment loss of $11 million relating to our regulatory authorizations with indefinite lives and certain projects in construction in progress. See Note 13 for additional information relating to the income tax benefit. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Noncash Investing and Financing Activities | Noncash Investing and Financing Activities For the years ended December 31, 2018 2017 2016 (In thousands) Employee benefits paid in Class A common stock $ 7,605 $ 11,200 $ 11,126 Property and equipment financed under capital lease obligations $ 364 $ 8,484 $ 7,652 Increase (decrease) in capital expenditures included in accounts payable, net $ 7,318 $ (3,831 ) $ 3,054 E $ — $ 43,890 $ — Noncash net assets exchanged for Tracking Stock (Note 1) $ — $ 299,888 $ — |
Schedule of Cost of Sales and Research and Development Costs | The table below summarizes the research and development costs incurred in connection with customers’ orders included in cost of sales and other expenses we incurred for research and development. For the years ended December 31, 2018 2017 2016 (In thousands) Cost of sales $ 23,422 $ 27,899 $ 23,663 Research and development $ 27,570 $ 31,745 $ 31,170 |
Organization and Business Act_2
Organization and Business Activities (Details) - segment | 12 Months Ended | |
Dec. 31, 2018 | Feb. 28, 2017 | |
Principal Business | ||
Number of business segments | 2 | |
EchoStar Technologies segment | DISH Network | Share Exchange Agreement | ||
Principal Business | ||
Ownership interest acquired by related party (as a percent) | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | Jan. 01, 2017 | |
Accounting Policies [Line Items] | ||||
Amount of transfers between levels within the fair value hierarchy | $ 0 | $ 0 | ||
Cumulative effect of adoption | $ 23,123,000 | $ 14,508,000 | ||
Accumulated earnings | $ (694,129,000) | (733,972,000) | ||
Expected increase in operating lease assets and lIabilities as percent of total assets | 1.00% | |||
Minimum | ||||
Accounting Policies [Line Items] | ||||
Useful life | 1 year | |||
Useful life | 1 year | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Useful life | 40 years | |||
Useful life | 30 years | |||
Software Development | Maximum | ||||
Accounting Policies [Line Items] | ||||
Software useful life | 5 years | |||
Computer Software, Intangible Asset | Maximum | ||||
Accounting Policies [Line Items] | ||||
Software useful life | 5 years | |||
Accounting Standards Update 2016-09 | ||||
Accounting Policies [Line Items] | ||||
Deferred tax assets | 14,000,000 | |||
Accounting Standards Update 2016-01 | ||||
Accounting Policies [Line Items] | ||||
Accumulated earnings | $ 20,064,000 | 10,467,000 | ||
Retained Earnings | ||||
Accounting Policies [Line Items] | ||||
Cumulative effect of adoption | 12,656,000 | 14,508,000 | ||
Retained Earnings | Accounting Standards Update 2016-09 | ||||
Accounting Policies [Line Items] | ||||
Cumulative effect of adoption | $ 14,000,000 | |||
New Revenue Standard | Accounting Standards Update 2014-09 | ||||
Accounting Policies [Line Items] | ||||
Accumulated earnings | $ 28,389,000 | $ (23,123,000) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Impact of Adoption of New Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Dec. 31, 2015 | |
Assets | |||||||||||||
Trade accounts receivable and contract assets, net | $ 201,096 | $ 196,840 | $ 201,096 | $ 196,840 | $ 189,737 | ||||||||
Other current assets | 18,539 | 91,671 | 18,539 | 91,671 | 92,204 | ||||||||
Investments in unconsolidated entities | 262,473 | 161,427 | 262,473 | 161,427 | 168,344 | ||||||||
Other noncurrent assets, net | 263,892 | 214,814 | 263,892 | 214,814 | 237,359 | ||||||||
Total assets | 8,661,294 | 8,750,014 | 8,661,294 | 8,750,014 | 8,772,906 | ||||||||
Liabilities: | |||||||||||||
Contract liabilities | 72,284 | 65,959 | 72,284 | 65,959 | 64,417 | ||||||||
Accrued expenses and other | 72,470 | 82,647 | 72,470 | 82,647 | 82,902 | ||||||||
Deferred tax liabilities, net | 465,933 | 436,023 | 465,933 | 436,023 | 441,147 | ||||||||
Other noncurrent liabilities | 121,546 | 128,503 | 121,546 | 128,503 | 124,435 | ||||||||
Total liabilities | 4,505,820 | 4,572,629 | 4,505,820 | 4,572,629 | 4,572,398 | ||||||||
Stockholders’ Equity: | |||||||||||||
Accumulated other comprehensive loss | (125,100) | (125,100) | (119,687) | ||||||||||
Accumulated earnings | 694,129 | 694,129 | 733,972 | ||||||||||
Total stockholders’ equity | 4,155,474 | 4,177,385 | 4,155,474 | 4,177,385 | $ 4,006,805 | 4,200,508 | $ 3,781,642 | ||||||
Total liabilities and stockholders’ equity | 8,661,294 | 8,661,294 | 8,772,906 | ||||||||||
Revenue: | |||||||||||||
Total revenue | 530,661 | $ 532,953 | $ 525,957 | $ 501,792 | 506,048 | $ 481,233 | $ 465,076 | $ 433,151 | 2,091,363 | 1,885,508 | 1,810,466 | ||
Costs and expenses: | |||||||||||||
Selling, general and administrative expenses | 436,247 | 366,007 | 325,044 | ||||||||||
Total costs and expenses | 1,908,120 | 1,689,201 | 1,514,303 | ||||||||||
Operating income (loss) | (19,567) | 70,035 | 74,765 | 58,010 | 42,352 | 56,414 | 45,890 | 51,651 | 183,243 | 196,307 | 296,163 | ||
Other income (expense): | |||||||||||||
Interest expense, net of amounts capitalized | (248,568) | (217,240) | (123,481) | ||||||||||
Gains (losses) on investments, net | (12,207) | 53,453 | 9,767 | ||||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | (5,954) | 16,973 | 10,802 | ||||||||||
Total other income (expense), net | (191,203) | (95,613) | (79,537) | ||||||||||
Income (loss) from continuing operations before income taxes | (7,960) | 100,694 | 216,626 | ||||||||||
Income tax benefit (provision), net | (30,673) | 284,286 | (80,254) | ||||||||||
Net income (loss) | (111,648) | 16,502 | 77,684 | (21,171) | 313,814 | 35,201 | 7,122 | 37,352 | (38,633) | 393,489 | 180,692 | ||
Net income (loss) attributable to EchoStar common stock | $ (112,198) | $ 16,052 | $ 77,222 | $ (21,551) | $ 313,237 | $ 34,669 | $ 6,940 | $ 38,924 | $ (40,475) | $ 393,770 | $ 181,673 | ||
Earnings (losses) per share: | |||||||||||||
Basic (in dollars per share) | $ (1.17) | $ 0.17 | $ 0.80 | $ (0.22) | $ 3.29 | $ 0.36 | $ 0.07 | $ 0.41 | $ (0.42) | $ 4.13 | $ 1.94 | ||
Diluted (in dollars per share) | $ (1.17) | $ 0.17 | $ 0.80 | $ (0.22) | $ 3.23 | $ 0.36 | $ 0.07 | $ 0.41 | $ (0.42) | $ 4.07 | $ 1.92 | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||
Net income (loss) | $ (111,648) | $ 16,502 | $ 77,684 | $ (21,171) | $ 313,814 | $ 35,201 | $ 7,122 | $ 37,352 | $ (38,633) | $ 393,489 | $ 180,692 | ||
Other comprehensive income (loss), net of tax: | |||||||||||||
Unrealized gains (losses) on available-for-sale securities and other | (2,872) | (21,895) | 9,149 | ||||||||||
Other-than-temporary impairment loss on available-for-sale securities | 0 | ||||||||||||
Total other comprehensive income (loss), net of tax | (5,413) | (4,942) | (7,756) | ||||||||||
Comprehensive income (loss) | (44,046) | 388,547 | 172,936 | ||||||||||
Comprehensive income (loss) attributable to EchoStar Corporation | (44,499) | 387,210 | 172,360 | ||||||||||
Accounting Standards Update 2016-01 | |||||||||||||
Stockholders’ Equity: | |||||||||||||
Accumulated other comprehensive loss | 20,064 | 20,064 | 10,467 | ||||||||||
Accumulated earnings | (20,064) | (20,064) | (10,467) | ||||||||||
Other income (expense): | |||||||||||||
Gains (losses) on investments, net | (30,531) | ||||||||||||
Total other income (expense), net | (30,531) | ||||||||||||
Income (loss) from continuing operations before income taxes | (30,531) | ||||||||||||
Net income (loss) | (30,531) | ||||||||||||
Net income (loss) attributable to EchoStar common stock | $ (30,531) | ||||||||||||
Earnings (losses) per share: | |||||||||||||
Basic (in dollars per share) | $ (0.32) | ||||||||||||
Diluted (in dollars per share) | $ (0.32) | ||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||
Net income (loss) | $ (30,531) | ||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||
Unrealized gains (losses) on available-for-sale securities and other | (6,485) | ||||||||||||
Other-than-temporary impairment loss on available-for-sale securities | 37,016 | ||||||||||||
Total other comprehensive income (loss), net of tax | 30,531 | ||||||||||||
Balances If We Had Not Adopted the New Standards | |||||||||||||
Assets | |||||||||||||
Trade accounts receivable and contract assets, net | 196,840 | 196,840 | |||||||||||
Other current assets | 91,671 | 91,671 | |||||||||||
Investments in unconsolidated entities | 161,427 | 161,427 | |||||||||||
Other noncurrent assets, net | 214,814 | 214,814 | |||||||||||
Total assets | 8,750,014 | 8,750,014 | |||||||||||
Liabilities: | |||||||||||||
Contract liabilities | 65,959 | 65,959 | |||||||||||
Accrued expenses and other | 82,647 | 82,647 | |||||||||||
Deferred tax liabilities, net | 436,023 | 436,023 | |||||||||||
Other noncurrent liabilities | 128,503 | 128,503 | |||||||||||
Total liabilities | 4,572,629 | 4,572,629 | |||||||||||
Stockholders’ Equity: | |||||||||||||
Total stockholders’ equity | 4,177,385 | 4,177,385 | |||||||||||
Total liabilities and stockholders’ equity | 8,750,014 | 8,750,014 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||
Comprehensive income (loss) | (49,312) | ||||||||||||
Comprehensive income (loss) attributable to EchoStar Corporation | (49,765) | ||||||||||||
Balances If We Had Not Adopted the New Standards | Accounting Standards Update 2014-09 | |||||||||||||
Assets | |||||||||||||
Trade accounts receivable and contract assets, net | 209,475 | 209,475 | |||||||||||
Other current assets | 18,006 | 18,006 | |||||||||||
Investments in unconsolidated entities | 256,834 | 256,834 | |||||||||||
Other noncurrent assets, net | 228,578 | 228,578 | |||||||||||
Total assets | 8,628,187 | 8,628,187 | |||||||||||
Liabilities: | |||||||||||||
Contract liabilities | 73,162 | 73,162 | |||||||||||
Accrued expenses and other | 72,215 | 72,215 | |||||||||||
Deferred tax liabilities, net | 458,957 | 458,957 | |||||||||||
Other noncurrent liabilities | 123,181 | 123,181 | |||||||||||
Total liabilities | 4,501,102 | 4,501,102 | |||||||||||
Stockholders’ Equity: | |||||||||||||
Total stockholders’ equity | 4,127,085 | 4,127,085 | |||||||||||
Total liabilities and stockholders’ equity | 8,628,187 | 8,628,187 | |||||||||||
Revenue: | |||||||||||||
Total revenue | 2,093,686 | ||||||||||||
Costs and expenses: | |||||||||||||
Selling, general and administrative expenses | 444,767 | ||||||||||||
Total costs and expenses | 1,919,378 | ||||||||||||
Operating income (loss) | 174,308 | ||||||||||||
Other income (expense): | |||||||||||||
Interest expense, net of amounts capitalized | (248,029) | ||||||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | (4,676) | ||||||||||||
Income tax benefit (provision), net | (28,821) | ||||||||||||
Balances If We Had Not Adopted the New Standards | |||||||||||||
Stockholders’ Equity: | |||||||||||||
Accumulated other comprehensive loss | (130,154) | (130,154) | |||||||||||
Accumulated earnings | $ 721,316 | 721,316 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||
Unrealized gains (losses) on available-for-sale securities and other | (9,357) | ||||||||||||
Other-than-temporary impairment loss on available-for-sale securities | 37,016 | ||||||||||||
Total other comprehensive income (loss), net of tax | 25,118 | ||||||||||||
Balances If We Had Not Adopted the New Standards | Accounting Standards Update 2014-09 And 2016-01 | |||||||||||||
Stockholders’ Equity: | |||||||||||||
Accumulated other comprehensive loss | (105,036) | (105,036) | |||||||||||
Accumulated earnings | 645,676 | 645,676 | |||||||||||
Other income (expense): | |||||||||||||
Gains (losses) on investments, net | (42,738) | ||||||||||||
Total other income (expense), net | (219,917) | ||||||||||||
Income (loss) from continuing operations before income taxes | (45,609) | ||||||||||||
Net income (loss) | (74,430) | ||||||||||||
Net income (loss) attributable to EchoStar common stock | $ (76,272) | ||||||||||||
Earnings (losses) per share: | |||||||||||||
Basic (in dollars per share) | $ (0.79) | ||||||||||||
Diluted (in dollars per share) | $ (0.79) | ||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||
Net income (loss) | $ (74,430) | ||||||||||||
New Revenue Standard | Accounting Standards Update 2014-09 | |||||||||||||
Assets | |||||||||||||
Trade accounts receivable and contract assets, net | 8,379 | 8,379 | (7,103) | ||||||||||
Other current assets | (533) | (533) | 533 | ||||||||||
Investments in unconsolidated entities | (5,639) | (5,639) | 6,917 | ||||||||||
Other noncurrent assets, net | (35,314) | (35,314) | 22,545 | ||||||||||
Total assets | (33,107) | (33,107) | 22,892 | ||||||||||
Liabilities: | |||||||||||||
Contract liabilities | 878 | 878 | (1,542) | ||||||||||
Accrued expenses and other | (255) | (255) | 255 | ||||||||||
Deferred tax liabilities, net | (6,976) | (6,976) | 5,124 | ||||||||||
Other noncurrent liabilities | 1,635 | 1,635 | (4,068) | ||||||||||
Total liabilities | (4,718) | (4,718) | (231) | ||||||||||
Stockholders’ Equity: | |||||||||||||
Accumulated other comprehensive loss | 0 | 0 | 0 | ||||||||||
Accumulated earnings | (28,389) | (28,389) | 23,123 | ||||||||||
Total stockholders’ equity | (28,389) | (28,389) | 23,123 | ||||||||||
Total liabilities and stockholders’ equity | $ (33,107) | (33,107) | $ 22,892 | ||||||||||
Revenue: | |||||||||||||
Total revenue | 2,323 | ||||||||||||
Costs and expenses: | |||||||||||||
Selling, general and administrative expenses | 8,520 | ||||||||||||
Total costs and expenses | 11,258 | ||||||||||||
Operating income (loss) | (8,935) | ||||||||||||
Other income (expense): | |||||||||||||
Interest expense, net of amounts capitalized | 539 | ||||||||||||
Gains (losses) on investments, net | 0 | ||||||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | 1,278 | ||||||||||||
Total other income (expense), net | 1,817 | ||||||||||||
Income (loss) from continuing operations before income taxes | (7,118) | ||||||||||||
Income tax benefit (provision), net | 1,852 | ||||||||||||
Net income (loss) | (5,266) | ||||||||||||
Net income (loss) attributable to EchoStar common stock | $ (5,266) | ||||||||||||
Earnings (losses) per share: | |||||||||||||
Basic (in dollars per share) | $ (0.05) | ||||||||||||
Diluted (in dollars per share) | $ (0.05) | ||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||
Net income (loss) | $ (5,266) | ||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||
Comprehensive income (loss) | (5,266) | ||||||||||||
Comprehensive income (loss) attributable to EchoStar Corporation | (5,266) | ||||||||||||
Services and other revenue | |||||||||||||
Revenue: | |||||||||||||
Total revenue | 1,507,259 | 1,200,321 | 1,100,828 | ||||||||||
Costs and expenses: | |||||||||||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 604,305 | $ 563,346 | $ 536,568 | ||||||||||
Services and other revenue | Balances If We Had Not Adopted the New Standards | Accounting Standards Update 2014-09 | |||||||||||||
Revenue: | |||||||||||||
Total revenue | 1,509,582 | ||||||||||||
Costs and expenses: | |||||||||||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 607,043 | ||||||||||||
Services and other revenue | New Revenue Standard | Accounting Standards Update 2014-09 | |||||||||||||
Revenue: | |||||||||||||
Total revenue | 2,323 | ||||||||||||
Costs and expenses: | |||||||||||||
Cost of sales - services and other (exclusive of depreciation and amortization) | $ 2,738 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contract with Customer, Assets and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue from External Customer [Line Items] | |||
Trade accounts receivable | $ 162,405 | $ 167,149 | |
Contract assets | 55,295 | 34,615 | |
Allowance for doubtful accounts | (16,604) | (12,027) | |
Total trade accounts receivable and contract assets, net | 201,096 | 189,737 | $ 196,840 |
Trade accounts receivable - DISH Network | 14,200 | 43,295 | 43,295 |
Contract liabilities: | |||
Current | 72,284 | 64,417 | $ 65,959 |
Noncurrent | 10,133 | 13,036 | |
Total contract liabilities | 82,417 | 77,453 | |
Sales and services | |||
Revenue from External Customer [Line Items] | |||
Trade accounts receivable | 154,415 | 156,794 | |
Trade accounts receivable - DISH Network | 12,274 | 16,118 | |
Leasing | |||
Revenue from External Customer [Line Items] | |||
Trade accounts receivable | 7,990 | 10,355 | |
Trade accounts receivable - DISH Network | $ 1,926 | $ 27,177 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized | $ 52 | ||
Bad debt expense | 25 | $ 10 | $ 14 |
Remaining performance obligation | $ 939 | ||
Expected percent recognized in next twelve months | 35.70% |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 530,661 | $ 532,953 | $ 525,957 | $ 501,792 | $ 506,048 | $ 481,233 | $ 465,076 | $ 433,151 | $ 2,091,363 | $ 1,885,508 | $ 1,810,466 |
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,819,463 | 1,612,349 | 1,566,576 | ||||||||
South and Central America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 101,632 | 90,000 | 50,952 | ||||||||
All other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 170,268 | 183,159 | 192,938 | ||||||||
Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 119,657 | ||||||||||
Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,356,080 | ||||||||||
Design, development and construction services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 85,753 | ||||||||||
Revenue from sales and services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,561,490 | ||||||||||
Leasing income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 529,873 | ||||||||||
Corporate and Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 16,777 | ||||||||||
Corporate and Other | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 17,478 | ||||||||||
Corporate and Other | South and Central America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | ||||||||||
Corporate and Other | All other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | (701) | ||||||||||
Corporate and Other | Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | ||||||||||
Corporate and Other | Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 18,908 | ||||||||||
Corporate and Other | Design, development and construction services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | ||||||||||
Corporate and Other | Revenue from sales and services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 18,908 | ||||||||||
Corporate and Other | Leasing income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | (2,131) | ||||||||||
Hughes | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,716,169 | 1,476,131 | 1,389,152 | ||||||||
Hughes | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,716,528 | 1,477,918 | 1,392,361 | ||||||||
Hughes | Operating segments | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,444,628 | ||||||||||
Hughes | Operating segments | South and Central America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 101,632 | ||||||||||
Hughes | Operating segments | All other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 170,268 | ||||||||||
Hughes | Operating segments | Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 119,657 | ||||||||||
Hughes | Operating segments | Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,313,059 | ||||||||||
Hughes | Operating segments | Design, development and construction services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 85,753 | ||||||||||
Hughes | Operating segments | Revenue from sales and services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,518,469 | ||||||||||
Hughes | Operating segments | Leasing income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 198,059 | ||||||||||
ESS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 355,734 | 390,831 | 406,970 | ||||||||
ESS | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 358,058 | $ 392,244 | $ 407,660 | ||||||||
ESS | Operating segments | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 357,357 | ||||||||||
ESS | Operating segments | South and Central America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | ||||||||||
ESS | Operating segments | All other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 701 | ||||||||||
ESS | Operating segments | Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | ||||||||||
ESS | Operating segments | Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 24,113 | ||||||||||
ESS | Operating segments | Design, development and construction services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | ||||||||||
ESS | Operating segments | Revenue from sales and services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 24,113 | ||||||||||
ESS | Operating segments | Leasing income | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 333,945 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 28, 2017 | |
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | ||||
Net income from discontinued operations | $ 0 | $ 8,509 | $ 44,320 | |
Discontinued Operations | ||||
Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract] | ||||
Equipment, services and other revenue - DISH Network | 143,118 | 1,127,610 | ||
Equipment, services and other revenue - other | 10,344 | 118,654 | ||
Total revenue | 153,462 | 1,246,264 | ||
Cost of equipment, services and other | 121,967 | 1,010,421 | ||
Selling, general and administrative expenses | 5,439 | 60,590 | ||
Research and development expenses | 4,635 | 44,854 | ||
Depreciation and amortization | 11,659 | 62,164 | ||
Total costs and expenses | 143,700 | 1,178,029 | ||
Operating income | 9,762 | 68,235 | ||
Interest expense | (15) | (144) | ||
Equity in earnings (losses) of unconsolidated affiliates, net | (1,159) | 2,508 | ||
Other, net | (57) | (381) | ||
Total income (expense), net | (1,231) | 1,983 | ||
Income from discontinued operations before income taxes | 8,531 | 70,218 | ||
Income tax provision | (22) | (25,898) | ||
Net income from discontinued operations | 8,509 | 44,320 | ||
Discontinued Operation, Alternative Cash Flow Information [Abstract] | ||||
Discontinued operations capital expenditures | 12,000 | $ 70,000 | ||
Disposal Group, Including Discontinued Operation, Classified Balance Sheet Disclosures [Abstract] | ||||
Total assets of discontinued operations | 100 | |||
Total liabilities of discontinued operations | $ 1,000 | |||
EchoStar Technologies segment | DISH Network | Share Exchange Agreement | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Ownership interest acquired by related party (as a percent) | 100.00% |
Earnings Per Share - Antidiluti
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Stock awards | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 1 | 4 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts attributable to EchoStar Corporation common stock: | |||||||||||
Net income from continuing operations | $ (40,475) | $ 385,261 | $ 137,353 | ||||||||
Net income from discontinued operations | 0 | 8,509 | 44,320 | ||||||||
Net income (loss) attributable to EchoStar Corporation common stock | $ (112,198) | $ 16,052 | $ 77,222 | $ (21,551) | $ 313,237 | $ 34,669 | $ 6,940 | $ 38,924 | $ (40,475) | $ 393,770 | $ 181,673 |
Weighted-average common shares outstanding: | |||||||||||
Basic (in shares) | 96,250 | 95,425 | 93,795 | ||||||||
Dilutive impact of stock awards outstanding (in shares) | 0 | 1,316 | 615 | ||||||||
Diluted (in shares) | 96,250 | 96,741 | 94,410 | ||||||||
Basic: | |||||||||||
Continuing operations (in dollars per share) | $ (0.42) | $ 4.04 | $ 1.46 | ||||||||
Discontinued operations (in dollars per share) | 0 | 0.09 | 0.48 | ||||||||
Total basic earnings (loss) per share (in dollars per share) | $ (1.17) | $ 0.17 | $ 0.80 | $ (0.22) | $ 3.29 | $ 0.36 | $ 0.07 | $ 0.41 | (0.42) | 4.13 | 1.94 |
Diluted: | |||||||||||
Continuing operations (in dollars per share) | (0.42) | 3.98 | 1.45 | ||||||||
Discontinued operation (in dollars per share) | 0 | 0.09 | 0.47 | ||||||||
Total diluted earnings (loss) per share (in dollars per share) | $ (1.17) | $ 0.17 | $ 0.80 | $ (0.22) | $ 3.23 | $ 0.36 | $ 0.07 | $ 0.41 | $ (0.42) | $ 4.07 | $ 1.92 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | Jan. 01, 2017 | |
Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ 4,177,385 | $ 4,006,805 | $ 3,781,642 | ||
Cumulative effect of adoption of the New Investment Standard | $ 23,123 | $ 14,508 | |||
Adjusted opening balance | 4,200,508 | 4,021,313 | |||
Other comprehensive income before reclassifications | (37,271) | (5,891) | |||
Amounts reclassified to net income | 31,858 | 540 | |||
Other comprehensive loss | (5,413) | (4,942) | (7,756) | ||
Ending balance | 4,155,474 | 4,177,385 | 4,006,805 | ||
Unrecognized foreign currency translation tax benefits | 7,000 | ||||
Cumulative Foreign Currency Translation Losses | |||||
Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (119,430) | (135,434) | |||
Cumulative effect of adoption of the New Investment Standard | 0 | ||||
Adjusted opening balance | (119,430) | ||||
Other comprehensive income before reclassifications | (34,399) | 16,004 | |||
Amounts reclassified to net income | 32,136 | 0 | |||
Other comprehensive loss | (2,263) | 16,004 | |||
Ending balance | (121,693) | (119,430) | (135,434) | ||
Unrealized Gain (Loss) On Available-For-Sale Securities | |||||
Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (10,801) | 10,646 | |||
Cumulative effect of adoption of the New Investment Standard | 10,467 | ||||
Adjusted opening balance | (334) | ||||
Other comprehensive income before reclassifications | (962) | (21,987) | |||
Amounts reclassified to net income | (278) | 540 | |||
Other comprehensive loss | (1,240) | (21,447) | |||
Ending balance | (1,574) | (10,801) | 10,646 | ||
Other | |||||
Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | 77 | (15) | |||
Cumulative effect of adoption of the New Investment Standard | 0 | ||||
Adjusted opening balance | 77 | ||||
Other comprehensive income before reclassifications | (1,910) | 92 | |||
Amounts reclassified to net income | 0 | 0 | |||
Other comprehensive loss | (1,910) | 92 | |||
Ending balance | (1,833) | 77 | (15) | ||
Accumulated Other Comprehensive Income (Loss) | |||||
Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (130,154) | (124,803) | (117,233) | ||
Cumulative effect of adoption of the New Investment Standard | 10,467 | ||||
Adjusted opening balance | $ (119,687) | $ (124,803) | |||
Other comprehensive loss | (5,413) | (5,351) | |||
Ending balance | $ (125,100) | $ (130,154) | $ (124,803) |
Marketable Investment Securit_3
Marketable Investment Securities - Schedule of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Investments [Line Items] | ||
Debt securities | $ 2,200,650 | $ 684,609 |
Equity securities | 90,976 | 139,571 |
Total marketable investment securities | 2,291,626 | 824,180 |
Less: Restricted marketable investment securities | 9,474 | 10,019 |
Marketable investment securities, at fair value | 2,282,152 | 814,161 |
Corporate bonds | ||
Schedule of Investments [Line Items] | ||
Debt securities | 1,735,653 | 542,573 |
Other debt securities | ||
Schedule of Investments [Line Items] | ||
Debt securities | $ 464,997 | $ 142,036 |
Marketable Investment Securit_4
Marketable Investment Securities - Schedule of Unrealized Gains (Losses) on Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | $ 684,943 | |
Unrealized Gains | 0 | |
Unrealized Losses | (334) | |
Estimated Fair Value | $ 2,200,650 | 684,609 |
Corporate bonds | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | 1,689,093 | |
Unrealized Gains | 318 | |
Unrealized Losses | (1,896) | |
Estimated Fair Value | 1,687,515 | |
Corporate bonds | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | 542,861 | |
Unrealized Gains | 0 | |
Unrealized Losses | (288) | |
Estimated Fair Value | 1,735,653 | 542,573 |
Other debt securities | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | 464,993 | 142,082 |
Unrealized Gains | 7 | 0 |
Unrealized Losses | (3) | (46) |
Estimated Fair Value | 464,997 | $ 142,036 |
Total available-for-sale debt securities | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||
Amortized cost | 2,154,086 | |
Unrealized Gains | 325 | |
Unrealized Losses | (1,899) | |
Estimated Fair Value | $ 2,152,512 |
Marketable Investment Securit_5
Marketable Investment Securities - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Schedule of Investments [Line Items] | |||||
Debt securities with contractual maturities of one year or less | $ 1,600,000,000 | ||||
Debt securities with contractual maturities exceeding one year | 512,000,000 | ||||
Equity trading securities | $ 47,000,000 | $ 47,000,000 | $ 7,000,000 | ||
Other than temporary impairment losses recognized in earnings | 3,000,000 | ||||
Gains (losses) related to trading securities | 23,000,000 | 43,000,000 | 1,000,000 | ||
Equity securities realized gain (loss) | (17,000,000) | ||||
Equity securities | 139,571,000 | 90,976,000 | 139,571,000 | ||
Proceeds from sales of available-for-sale securities | 151,000,000 | 31,000,000 | 80,000,000 | ||
Realized gains from the sales of available-for-sale securities | 0 | 3,000,000 | $ 6,000,000 | ||
Corporate bonds | |||||
Schedule of Investments [Line Items] | |||||
Fair value of investments | 48,000,000 | $ 0 | |||
Gain on investment | $ 4,000,000 | ||||
Equity Securities [Member] | |||||
Schedule of Investments [Line Items] | |||||
Equity securities available for sale | 87,000,000 | 87,000,000 | |||
Equity trading securities | 53,000,000 | 53,000,000 | |||
Available-for-sale equity securities cost | 97,000,000 | 97,000,000 | |||
Available-for-sale equity securities unrealized gain | 8,000,000 | 8,000,000 | |||
Available-for-sale equity securities unrealized loss | $ 18,000,000 | $ 18,000,000 |
Marketable Investment Securit_6
Marketable Investment Securities - Schedule of Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value of marketable securities | ||
Debt securities | $ 2,200,650 | $ 684,609 |
Equity securities | 90,976 | 139,571 |
Total marketable investment securities | 2,291,626 | 824,180 |
Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 1,735,653 | 542,573 |
Other debt securities | ||
Fair value of marketable securities | ||
Debt securities | 464,997 | 142,036 |
Level 1 | ||
Fair value of marketable securities | ||
Debt securities | 9,474 | 13,311 |
Equity securities | 85,298 | 133,736 |
Total marketable investment securities | 94,772 | 147,047 |
Level 1 | Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 0 | 0 |
Level 1 | Other debt securities | ||
Fair value of marketable securities | ||
Debt securities | 9,474 | 13,311 |
Level 2 | ||
Fair value of marketable securities | ||
Debt securities | 2,191,176 | 671,298 |
Equity securities | 5,678 | 5,835 |
Total marketable investment securities | 2,196,854 | 677,133 |
Level 2 | Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 1,735,653 | 542,573 |
Level 2 | Other debt securities | ||
Fair value of marketable securities | ||
Debt securities | $ 455,523 | $ 128,725 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 4,856 | $ 5,484 |
Work-in-process | 13,901 | 7,442 |
Finished goods | 56,622 | 70,669 |
Total inventory | $ 75,379 | $ 83,595 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 6,355,140 | $ 6,126,600 |
Accumulated depreciation | (2,940,232) | (2,661,129) |
Property and equipment, net | $ 3,414,908 | 3,465,471 |
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 | $ 33,606 | 33,713 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 174,227 | 185,148 |
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 | $ 812,566 | 736,533 |
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 | $ 1,159,977 | 929,775 |
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 | $ 2,816,628 | 3,064,391 |
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 | $ 1,051,110 | 916,820 |
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 | $ 307,026 | $ 260,220 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($)solar_array_circuit | Oct. 31, 2017USD ($) | Dec. 31, 2018USD ($)satellitesolar_array_circuitmi | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Capital leases, accumulated depreciation | $ 394 | $ 468 | $ 394 | ||
Capitalized interest related to satellites, satellite payloads and related ground facilities under construction | 18 | 52 | $ 94 | ||
Satellites | |||||
Property, Plant and Equipment [Line Items] | |||||
Amortization of satellites under capital lease agreements | $ 76 | $ 66 | $ 56 | ||
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 | ||||
Satellites, Leased | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of satellites utilized under capital lease | satellite | 5 | ||||
Satellites, Owned | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | satellite | 13 | ||||
EchoStar 105/SES-11 | |||||
Property, Plant and Equipment [Line Items] | |||||
Term of lease contract | 10 years | ||||
EchoStar X | |||||
Property, Plant and Equipment [Line Items] | |||||
Solar array circuits affected | solar_array_circuit | 1 | 7 | |||
Functional solar array circuits | solar_array_circuit | 16 | ||||
Reduction in revenue in period | $ 4 | ||||
Other Current Assets | EchoStar 105/SES-11 | |||||
Property, Plant and Equipment [Line Items] | |||||
Transfer of EchoStar 105/SES-11 payloads to SES in exchange for receivable | $ 77 |
Property and Equipment - Constr
Property and Equipment - Construction in Progress (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $ 307,026 | $ 260,220 |
Progress amounts for satellite construction, including prepayments under capital leases and launch services costs | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 277,583 | 211,765 |
Satellite related equipment | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 13,001 | 28,358 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $ 16,442 | $ 20,097 |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Depreciation expense | |||
Total depreciation expense | $ 555,297 | $ 475,306 | $ 378,569 |
Buildings and improvements | |||
Depreciation expense | |||
Total depreciation expense | 11,596 | 17,285 | 7,505 |
Furniture, fixtures, equipment and other | |||
Depreciation expense | |||
Total depreciation expense | 83,746 | 72,387 | 64,767 |
Customer rental equipment | |||
Depreciation expense | |||
Total depreciation expense | 174,749 | 146,562 | 114,568 |
Satellites | |||
Depreciation expense | |||
Total depreciation expense | $ 285,206 | $ 239,072 | $ 191,729 |
Property and Equipment - Sche_3
Property and Equipment - Schedule of Satellites (Details) | 12 Months Ended |
Dec. 31, 2018 | |
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 XIX | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 15 years |
EchoStar VII | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 3 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 |
EchoStar XXI | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 15 years |
EchoStar XXIII | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 15 years |
Eutelsat 65 West A | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 15 years |
Telesat 19V satellite | |
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 |
EchoStar 105/SES-11 | |
Property, Plant and Equipment [Line Items] | |
Depreciable life | 15 years |
Goodwill, Regulatory Authoriz_3
Goodwill, Regulatory Authorizations and Other Intangible Assets - Regulatory Authorizations (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Finite-Lived Intangible Assets Gross [RollForward] | |
Balance at the beginning of the period | $ 361,300 |
Balance at the end of the period | 361,283 |
Accumulated amortization | |
Balance at the beginning of the period | (302,345) |
Balance at the end of the period | (317,052) |
Net | |
Balance at the beginning of the period | 58,955 |
Balance at the end of the period | 44,231 |
Total regulatory authorizations, net | |
Balance at the beginning of the period | 536,936 |
Additions | (5,190) |
Impairment | (29,628) |
Currency Translation Adjustment | (6,464) |
Balance at the end of the period | 495,654 |
Indefinite Lives | |
Indefinite lives | |
Balance at the beginning of the period | 465,657 |
Additions | 0 |
Impairment | 0 |
Currency Translation Adjustment | 0 |
Balance at the end of the period | 465,657 |
Finite lives | |
Finite-Lived Intangible Assets Gross [RollForward] | |
Balance at the beginning of the period | 92,621 |
Additions | 0 |
Impairment | (37,476) |
Currency Translation Adjustment | (8,358) |
Balance at the end of the period | 46,787 |
Accumulated amortization | |
Balance at the beginning of the period | (21,342) |
Additions | (5,190) |
Impairment | 7,848 |
Currency Translation Adjustment | 1,894 |
Balance at the end of the period | (16,790) |
Net | |
Balance at the beginning of the period | 71,279 |
Additions | (5,190) |
Impairment | (29,628) |
Currency Translation Adjustment | (6,464) |
Balance at the end of the period | $ 29,997 |
Goodwill, Regulatory Authoriz_4
Goodwill, Regulatory Authorizations and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization expense | $ 43,000 | $ 47,000 | $ 54,000 | |||
Loss from foreign currency transactions | 6,464 | |||||
Finite lives | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization expense | $ 5,000 | $ 5,000 | $ 5,000 | |||
Contractual Rights | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets | $ 6,000 | |||||
Intangible asset impairment | $ 6,000 | |||||
Subsequent Event | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Loss on impairment of asset | $ 33,000 | |||||
Loss from foreign currency transactions | $ 32,000 |
Goodwill, Regulatory Authoriz_5
Goodwill, Regulatory Authorizations and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other intangible assets | ||
Cost | $ 361,283 | $ 361,300 |
Accumulated Amortization | (317,052) | (302,345) |
Carrying Amount | 44,231 | 58,955 |
Customer relationships | ||
Other intangible assets | ||
Cost | 270,300 | 270,300 |
Accumulated Amortization | (244,787) | (231,642) |
Carrying Amount | $ 25,513 | 38,658 |
Customer relationships | Weighted-average | ||
Other intangible assets | ||
Weighted Average Useful Life (in Years) | 8 years | |
Technology-based | ||
Other intangible assets | ||
Cost | $ 61,283 | 61,300 |
Accumulated Amortization | (61,004) | (60,927) |
Carrying Amount | $ 279 | 373 |
Technology-based | Weighted-average | ||
Other intangible assets | ||
Weighted Average Useful Life (in Years) | 6 years | |
Trademark portfolio | ||
Other intangible assets | ||
Cost | $ 29,700 | 29,700 |
Accumulated Amortization | (11,261) | (9,776) |
Carrying Amount | $ 18,439 | $ 19,924 |
Trademark portfolio | Weighted-average | ||
Other intangible assets | ||
Weighted Average Useful Life (in Years) | 20 years |
Goodwill, Regulatory Authoriz_6
Goodwill, Regulatory Authorizations and Other Intangible Assets - Future Amortization of Intangible Assets (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Estimated future amortization of intangible assets | |
2,019 | $ 18,304 |
2,020 | 14,663 |
2,021 | 8,029 |
2,022 | 5,065 |
2,023 | 5,065 |
Thereafter | 23,102 |
Total | $ 74,228 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities - Schedule of Investments in Unconsolidated Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity method | $ 182,035 | $ 91,702 | |
Other equity investments without a readily determinable fair value | 80,438 | 69,725 | |
Total investments in unconsolidated entities | $ 262,473 | $ 168,344 | $ 161,427 |
Investments in Unconsolidated_4
Investments in Unconsolidated Entities - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Goodwill | $ 504,173 | $ 504,173 | ||
Proceeds from equity method investment, distribution | 10,000 | 19,000 | $ 10,000 | |
Invidi Technologies Corporation | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Cost method investment sold | $ 19,000 | |||
Cost method investments | $ 11,000 | |||
Gain on sale of cost method investment | $ 9,000 | |||
Equity Method Investments | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Goodwill | $ 24,000 |
Investments in Unconsolidated_5
Investments in Unconsolidated Entities - Schedule of Equity Method Investee Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net income (loss) attributable to EchoStar | $ (5,954) | $ 16,973 | $ 10,802 |
Dish Mexico | |||
Statement of Financial Position [Abstract] | |||
Current assets | 147,140 | 146,851 | |
Noncurrent assets | 187,130 | 185,345 | |
Total assets | 334,270 | 332,196 | |
Current liabilities | 128,708 | 129,087 | |
Noncurrent liabilities | 109,643 | 109,428 | |
Total liabilities | 238,351 | 238,515 | |
Income Statement [Abstract] | |||
Revenue | 444,264 | 497,096 | 498,069 |
Operating income (loss) | (55,062) | 15,094 | 32,280 |
Income (loss) before income taxes | (33,449) | 18,267 | 10,195 |
Net income (loss) | (20,126) | 15,658 | 6,374 |
Net income (loss) attributable to EchoStar | (10,828) | 9,946 | 1,358 |
Aggregate | |||
Statement of Financial Position [Abstract] | |||
Current assets | 162,593 | 172,234 | |
Noncurrent assets | 188,077 | 187,067 | |
Total assets | 350,670 | 359,301 | |
Current liabilities | 129,837 | 130,443 | |
Noncurrent liabilities | 110,460 | 110,472 | |
Total liabilities | 240,297 | 240,915 | |
Income Statement [Abstract] | |||
Revenue | 475,559 | 535,153 | 541,066 |
Operating income (loss) | (43,553) | 31,919 | 52,656 |
Income (loss) before income taxes | (23,701) | 32,739 | 29,083 |
Net income (loss) | (10,378) | 30,130 | 25,262 |
Net income (loss) attributable to EchoStar | $ (5,954) | $ 16,973 | $ 10,802 |
Long-Term Debt and Capital Le_3
Long-Term Debt and Capital Lease Obligations - Schedule of Debt and Capital Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt and Capital Lease Obligations | ||
Fair Value | $ 3,259,816 | $ 3,596,524 |
Subtotal | 3,304,079 | 3,365,143 |
Capital lease obligations | 228,702 | 269,701 |
Total debt and capital lease obligations | 3,532,781 | 3,634,844 |
Less: Current portion | (959,577) | (40,631) |
Long-term debt and capital lease obligations, net | 2,573,204 | $ 3,594,213 |
6 1/2% Senior Secured Notes due 2019 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.50% | |
5 1/4% Senior Secured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 5.25% | |
7 5/8% Senior Unsecured Notes due 2021 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 7.625% | |
6 5/8% Senior Unsecured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.625% | |
Unamortized debt issuance costs | ||
Debt and Capital Lease Obligations | ||
Less: Unamortized debt issuance costs | $ (16,757) | $ (24,857) |
Senior Secured Notes: | 6 1/2% Senior Secured Notes due 2019 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.50% | |
Effective Interest Rate | 6.959% | |
Carrying Amount | $ 920,836 | 990,000 |
Fair Value | $ 932,696 | 1,042,609 |
Senior Secured Notes: | 5 1/4% Senior Secured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 5.25% | |
Effective Interest Rate | 5.32% | |
Carrying Amount | $ 750,000 | 750,000 |
Fair Value | $ 695,865 | 769,305 |
Senior Unsecured Notes: | 7 5/8% Senior Unsecured Notes due 2021 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 7.625% | |
Effective Interest Rate | 8.062% | |
Carrying Amount | $ 900,000 | 900,000 |
Fair Value | $ 934,902 | 992,745 |
Senior Unsecured Notes: | 6 5/8% Senior Unsecured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.625% | |
Effective Interest Rate | 6.688% | |
Carrying Amount | $ 750,000 | 750,000 |
Fair Value | $ 696,353 | $ 791,865 |
Long-Term Debt and Capital Le_4
Long-Term Debt and Capital Lease Obligations - Narrative (Details) - USD ($) | May 11, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 27, 2016 | Jun. 01, 2011 |
Debt and Capital Lease Obligations | ||||||
Payments of debt issuance costs | $ 0 | $ 414,000 | $ 7,097,000 | |||
Amortization of debt issuance costs | 7,923,000 | 7,378,000 | 6,551,000 | |||
Sublease rental income | 132,000,000 | 132,000,000 | 132,000,000 | |||
Future minimum sublease rental income | 216,000,000 | |||||
Interest on long-term debt and capital lease obligations | ||||||
Debt and Capital Lease Obligations | ||||||
Amortization of debt issuance costs | $ 8,000,000 | $ 7,000,000 | $ 7,000,000 | |||
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 | 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% | |||||
7 5/8% Senior Unsecured Notes due 2021 | ||||||
Debt and Capital Lease Obligations | ||||||
Interest rate | 7.625% | |||||
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 | $ 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 | ||||||
Interest rate | 5.25% | |||||
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, 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% | |||||
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 | Hughes Satellite Systems Corporation (HSSC) | ||||||
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 | ||||||
Debt and Capital Lease Obligations | ||||||
Interest rate | 6.625% | |||||
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 | ||||||
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% | |||||
2026 Senior Secured and Unsecured Notes | ||||||
Debt and Capital Lease Obligations | ||||||
Unregistered note percent exchange | 99.98% | |||||
Payments of debt issuance costs | $ 8,000,000 | |||||
Senior Secured Notes: | 6 1/2% Senior Secured Notes due 2019 | ||||||
Debt and Capital Lease Obligations | ||||||
Interest rate | 6.50% | |||||
Outstanding principal balance | $ 920,836,000 | $ 990,000,000 | ||||
Debt repurchase amount | 69,000,000 | |||||
Loss repurchase of debt | $ 1,000,000 | |||||
Effective Interest Rate | 6.959% | |||||
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 | 750,000,000 | ||||
Effective Interest Rate | 5.32% | |||||
Senior Secured Notes: | 5 1/4% Senior Secured Notes due 2026 | Hughes Satellite Systems Corporation (HSSC) | ||||||
Debt and Capital Lease Obligations | ||||||
Outstanding principal balance | $ 750,000,000 | 750,000,000 | ||||
Unsecured Debt | 7 5/8% Senior Unsecured Notes due 2021 | ||||||
Debt and Capital Lease Obligations | ||||||
Interest rate | 7.625% | |||||
Outstanding principal balance | $ 900,000,000 | 900,000,000 | ||||
Effective Interest Rate | 8.062% | |||||
Unsecured Debt | 6 5/8% Senior Unsecured Notes due 2026 | ||||||
Debt and Capital Lease Obligations | ||||||
Interest rate | 6.625% | |||||
Outstanding principal balance | $ 750,000,000 | $ 750,000,000 | ||||
Effective Interest Rate | 6.688% | |||||
Minimum | Capital lease obligations | ||||||
Debt and Capital Lease Obligations | ||||||
Effective Interest Rate | 9.10% | |||||
Maximum | Capital lease obligations | ||||||
Debt and Capital Lease Obligations | ||||||
Effective Interest Rate | 11.20% | |||||
Weighted-average | ||||||
Debt and Capital Lease Obligations | ||||||
Sublease remaining term | 2 years | |||||
Weighted-average | Capital lease obligations | ||||||
Debt and Capital Lease Obligations | ||||||
Weighted average interest rate | 10.70% |
Long-Term Debt and Capital Le_5
Long-Term Debt and Capital Lease Obligations - Capital Lease Obligations (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Long-term Debt and Capital Lease Obligations [Abstract] | |
2,019 | $ 88,615 |
2,020 | 88,395 |
2,021 | 84,248 |
2,022 | 63,484 |
2,023 | 63,360 |
Thereafter | 47,520 |
Total minimum lease payments | 435,622 |
Less: Amount representing use of the orbital location and estimated executory costs including profit thereon, included in total minimum lease payments | (136,799) |
Net minimum lease payments | 298,823 |
Less: Amount representing interest | (70,121) |
Present value of net minimum lease payments | 228,702 |
Less: Current portion | (40,662) |
Long-term portion of capital lease obligations | $ 188,040 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of income (loss) from continuing operations before income taxes | ||||
Domestic | $ 151,002,000 | $ 146,383,000 | $ 236,200,000 | |
Foreign | (158,962,000) | (45,689,000) | (19,574,000) | |
Income (loss) from continuing operations before income taxes | (7,960,000) | 100,694,000 | 216,626,000 | |
Current benefit (provision): | ||||
Federal | (1,472,000) | (8,652,000) | (19,385,000) | |
State | (184,000) | (1,237,000) | 267,000 | |
Foreign | (2,690,000) | (2,335,000) | (2,481,000) | |
Total current benefit (provision) | (4,346,000) | (12,224,000) | (21,599,000) | |
Deferred benefit (provision): | ||||
Federal | (19,189,000) | 299,693,000 | (58,250,000) | |
State | (7,365,000) | 2,356,000 | (6,232,000) | |
Foreign | 227,000 | (5,539,000) | 5,827,000 | |
Total deferred benefit (provision) | (26,327,000) | 296,510,000 | (58,655,000) | |
Total income tax benefit (provision), net | $ (30,673,000) | $ 284,286,000 | $ (80,254,000) | |
Actual tax provision reconciliation to the amounts computed by applying statutory federal tax rate to income (loss) from continuing operations before taxes | ||||
Statutory rate | 21.00% | 35.00% | 35.00% | |
State income taxes, net of Federal benefit | (94.40%) | (12.20%) | 5.00% | |
Permanent differences | (16.90%) | (0.30%) | 1.40% | |
Tax credits | 68.60% | (8.10%) | (4.20%) | |
Valuation allowance | (491.90%) | 4.60% | (0.30%) | |
Enactment of Tax Cuts and Job Act of 2017 | 0.00% | (301.40%) | 0.00% | |
Rates different than statutory | 116.60% | 0.00% | 0.00% | |
Other | 11.60% | 0.10% | 0.10% | |
Total effective tax rate | (385.40%) | (282.30%) | 37.00% | |
Deferred tax assets: | ||||
Net operating losses, credit and other carryforwards | $ 278,540,000 | $ 284,300,000 | $ 278,540,000 | |
Unrealized losses on investments, net | 22,260,000 | 41,852,000 | 22,260,000 | |
Accrued expenses | 23,583,000 | 22,148,000 | 23,583,000 | |
Stock-based compensation | 9,148,000 | 10,210,000 | 9,148,000 | |
Other assets | 11,890,000 | 22,366,000 | 11,890,000 | |
Total deferred tax assets | 345,421,000 | 380,876,000 | 345,421,000 | |
Valuation allowance | (66,886,000) | (109,762,000) | (66,886,000) | |
Deferred tax assets after valuation allowance | 278,535,000 | 271,114,000 | 278,535,000 | |
Deferred tax liabilities: | ||||
Depreciation and amortization | (708,599,000) | (731,447,000) | (708,599,000) | |
Other liabilities | (1,509,000) | (1,290,000) | (1,509,000) | |
Total deferred tax liabilities | (710,108,000) | (732,737,000) | (710,108,000) | |
Total net deferred tax liabilities | (431,573,000) | (461,623,000) | (431,573,000) | |
Net operating loss carryforwards | 797,000,000 | |||
Amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | 0 | |||
Benefit as result of change in enacted tax rate | (304,000,000) | 1,000,000 | 304,000,000 | |
Change in allowance for foreign tax credit carryover as result of the Tax Cuts and Jobs Act | 0 | |||
Income tax provision on deemed mandatory repatriation of foreign earnings | 0 | |||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ||||
Balance as of beginning of period | 63,296,000 | 63,502,000 | $ 62,366,000 | |
Additions based on tax positions related to the current year | 4,361,000 | 1,116,000 | 2,132,000 | |
Additions based on tax positions related to prior years | 2,539,000 | 258,000 | 3,000 | |
Reductions based on tax positions related to prior years | (656,000) | (852,000) | (734,000) | |
Reductions based on tax settlements | 0 | 0 | (265,000) | |
Reductions based on expirations of statute of limitations | 0 | (728,000) | 0 | |
Balance as of end of period | 63,296,000 | 69,540,000 | 63,296,000 | $ 63,502,000 |
Unrecognized tax benefits if recognized, could affect our effective tax rate | $ 63,000,000 | 70,000,000 | $ 63,000,000 | |
Foreign | ||||
Deferred tax liabilities: | ||||
Net operating loss carryforwards | 237,000,000 | |||
Federal | ||||
Deferred tax liabilities: | ||||
Tax credit available to offset future tax liabilities | 133,000,000 | |||
State | ||||
Deferred tax liabilities: | ||||
Tax credit available to offset future tax liabilities | $ 98,000,000 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock and Common Stock (Details) | 12 Months Ended | |||
Dec. 31, 2018sharesvote | Dec. 31, 2017shares | Mar. 01, 2014shares | Feb. 28, 2014$ / sharesshares | |
Stockholders Equity (Deficit) | ||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||
Class A common stock | ||||
Stockholders Equity (Deficit) | ||||
Votes per share | vote | 1 | |||
Common stock, shares outstanding (in shares) | 47,657,645 | 48,131,541 | ||
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 (in shares) | 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 (in shares) | 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 | |||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||
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) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Common Stock Repurchase Program | |||
Shares repurchased amount | $ 33,292,000 | ||
Class A common stock | |||
Common Stock Repurchase Program | |||
Amount of shares authorized for repurchase | $ 500,000,000 | ||
Number of common stock shares repurchased (in shares) | 952,603 | 0 | 0 |
Average price per share of shares repurchased (in dollars per share) | $ 34.95 | ||
Shares repurchased amount | $ 33,000,000 |
Employee Benefit Plans - Employ
Employee Benefit Plans - Employee Stock Purchase Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Purchase Plan | |||
Employee benefit plans | |||
Required 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) | 8,000,000 | ||
Class A common stock | Employee Stock Purchase Plan | |||
Employee benefit plans | |||
Number of shares authorized for issue (in shares) | 5,000,000 | ||
Number of common stock available for future grant under stock incentive plans (in shares) | 2,500,000 | ||
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 | 245,000 | 176,000 | 227,000 |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) Employee Savings Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
EchoStar 401(k) Plan | |||
Employee benefit plans | |||
Maximum contribution limit | 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 | ||
EchoStar 401(k) Plan | Class A common stock | |||
Employee benefit plans | |||
Matching contributions made by the company during the year | $ 5,000,000 | $ 5,000,000 | $ 6,000,000 |
Discretionary contributions, net of forfeitures, fair value, under 401(k) plan | $ 8,000,000 | $ 7,000,000 | $ 8,000,000 |
Discretionary contributions, shares, under 401(k) plan (in shares) | 127,000 | 130,000 | 210,500 |
Roth 401(k) Plan | |||
Employee benefit plans | |||
Maximum contribution limit | 75.00% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | Apr. 24, 2017 | Apr. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Stock-Based Compensation | ||||||
Tax benefit from compensation expense | $ 2,000,000 | $ 4,000,000 | $ 4,000,000 | |||
Unrecognized compensation expense | $ 14,000,000 | |||||
Future forfeiture rate (as a percent) | 2.00% | |||||
Period for recognition of compensation cost | 2 years | |||||
Aggregate intrinsic value of stock options outstanding | $ 9,000,000 | |||||
Aggregate intrinsic value of stock options exercisable | $ 9,000,000 | |||||
Class A common stock | ||||||
Stock-Based Compensation | ||||||
Number of common stock available for future grant under stock incentive plans (in shares) | 8,000,000 | |||||
Employee And Non Employee Stock Option | ||||||
Stock-Based Compensation | ||||||
Shares outstanding under stock incentive plans (in shares) | 5,013,038 | 4,951,256 | 5,968,763 | 5,893,241 | ||
Granted (in shares) | 215,500 | 1,262,500 | 732,000 | |||
Tax benefits from stock options exercised | $ 400,000 | $ 3,000,000 | $ 2,000,000 | |||
Options exercised in period intrinsic value | $ 2,000,000 | 20,000,000 | 8,000,000 | |||
Employee Stock Options | ||||||
Stock-Based Compensation | ||||||
Maximum expiration term | 10 years | |||||
Vesting period | 5 years | |||||
Granted (in shares) | 1,100,000 | |||||
Nonvested options forfeited (in shares) | 600,000 | |||||
Non-Employee Stock Option | ||||||
Stock-Based Compensation | ||||||
Maximum expiration term | 5 years | |||||
Restricted stock units | ||||||
Stock-Based Compensation | ||||||
Equity instruments other than options vested in period | $ 0 | $ 200,000 | $ 2,000,000 |
Stock-Based Compensation - Exer
Stock-Based Compensation - Exercise Prices for Stock Options (Details) - Employee And Non Employee Stock Option | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Exercise prices for stock options outstanding and exercisable: | |
Number of stock options outstanding (in shares) | shares | 5,013,038 |
Options outstanding, Weighted-average remaining contractual term | 5 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 41.80 |
Number of stock options exercisable (in shares) | shares | 3,710,138 |
Options exercisable, Weighted-average remaining contractual life | 4 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 38.59 |
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 | 51,359 |
Options outstanding, Weighted-average remaining contractual term | 2 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 18.74 |
Number of stock options exercisable (in shares) | shares | 51,359 |
Options exercisable, Weighted-average remaining contractual life | 2 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 18.74 |
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 | 429,306 |
Options outstanding, Weighted-average remaining contractual term | 1 year |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 20.18 |
Number of stock options exercisable (in shares) | shares | 429,306 |
Options exercisable, Weighted-average remaining contractual life | 1 year |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 20.18 |
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 | 3,300 |
Options outstanding, Weighted-average remaining contractual term | 3 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 26.42 |
Number of stock options exercisable (in shares) | shares | 3,300 |
Options exercisable, Weighted-average remaining contractual life | 3 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 26.42 |
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 | 352,500 |
Options outstanding, Weighted-average remaining contractual term | 4 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 34.22 |
Number of stock options exercisable (in shares) | shares | 352,500 |
Options exercisable, Weighted-average remaining contractual life | 4 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 | 1,985,200 |
Options outstanding, Weighted-average remaining contractual term | 4 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 38.19 |
Number of stock options exercisable (in shares) | shares | 1,832,500 |
Options exercisable, Weighted-average remaining contractual life | 3 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 38.09 |
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 | 277,000 |
Options outstanding, Weighted-average remaining contractual term | 7 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 43.98 |
Number of stock options exercisable (in shares) | shares | 111,400 |
Options exercisable, Weighted-average remaining contractual life | 7 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 44.04 |
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 | 766,973 |
Options outstanding, Weighted-average remaining contractual term | 6 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 47.58 |
Number of stock options exercisable (in shares) | shares | 577,473 |
Options exercisable, Weighted-average remaining contractual life | 5 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 47.64 |
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) | 50.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 55 |
Number of stock options outstanding (in shares) | shares | 487,400 |
Options outstanding, Weighted-average remaining contractual term | 7 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 52.24 |
Number of stock options exercisable (in shares) | shares | 197,300 |
Options exercisable, Weighted-average remaining contractual life | 6 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 51.99 |
Range Of Exercise Prices From Dollars 55.01 To 60.00 | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 55.01 |
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 60 |
Number of stock options outstanding (in shares) | shares | 600,000 |
Options outstanding, Weighted-average remaining contractual term | 8 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 56.97 |
Number of stock options exercisable (in shares) | shares | 127,000 |
Options exercisable, Weighted-average remaining contractual life | 8 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 56.95 |
Range Of Exercise Prices From Dollars 60.01 And Above | |
Exercise prices for stock options outstanding and exercisable: | |
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | $ 60.01 |
Number of stock options outstanding (in shares) | shares | 60,000 |
Options outstanding, Weighted-average remaining contractual term | 7 years |
Options outstanding, Weighted-average exercise price (in dollars per share) | $ 60.70 |
Number of stock options exercisable (in shares) | shares | 28,000 |
Options exercisable, Weighted-average remaining contractual life | 5 years |
Options exercisable, Weighted-average exercise price (in dollars per share) | $ 60.70 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Award Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee And Non Employee Stock Option | |||
Stock option activity | |||
Total options outstanding, beginning of period (in shares) | 4,951,256 | 5,968,763 | 5,893,241 |
Granted (in shares) | 215,500 | 1,262,500 | 732,000 |
Exercised (in shares) | (108,318) | (1,018,507) | (453,182) |
Forfeited and canceled (in shares) | (45,400) | (1,261,500) | (203,296) |
Total options outstanding, end of period (in shares) | 5,013,038 | 4,951,256 | 5,968,763 |
Exercisable at end of period (in shares) | 3,710,138 | 3,143,656 | 3,551,063 |
Weighted-Average Exercise Price | |||
Total options outstanding, beginning of period (in dollars per share) | $ 41.42 | $ 39.30 | $ 38.38 |
Granted (in dollars per share) | 51.71 | 57.12 | 41.86 |
Exercised (in dollars per share) | 40.67 | 35.84 | 28.83 |
Forfeited and canceled (in dollars per share) | 50.21 | 51.63 | 45.15 |
Total options outstanding, end of period (in dollars per share) | 41.80 | 41.42 | 39.30 |
Exercisable at end of period (in dollars per share) | $ 38.59 | $ 36.98 | $ 35.40 |
Restricted stock units | |||
Restricted stock unit activity | |||
Total restricted stock units outstanding, beginning of period (in shares) | 0 | 6,667 | 57,328 |
Vested (in shares) | 0 | (6,667) | (50,661) |
Total restricted stock units outstanding, end of period (in shares) | 0 | 0 | 6,667 |
Weighted - Average Grant Date Fair Value | |||
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ 0 | $ 34.22 | $ 42.31 |
Vested (in dollars per share) | 0 | 34.22 | 43.38 |
Total restricted stock units outstanding, end of period (in dollars per share) | $ 0 | $ 0 | $ 34.22 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-Based Compensation | |||
Total stock-based compensation | $ 9,990 | $ 11,640 | $ 10,911 |
Research and development expenses | |||
Stock-Based Compensation | |||
Total stock-based compensation | 634 | 1,010 | 1,046 |
Selling, general and administrative expenses | |||
Stock-Based Compensation | |||
Total stock-based compensation | $ 9,356 | $ 10,630 | $ 9,865 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation of Stock Options (Details) - Employee And Non Employee Stock Option - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Black-Scholes option valuation model assumptions | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Black-Scholes option valuation model assumptions | |||
Risk-free interest rate | 2.25% | 1.98% | 1.10% |
Volatility factor | 22.77% | 24.20% | 27.22% |
Expected term of options | 5 years 8 months 24 days | 5 years 8 months 24 days | 5 years 8 months 24 days |
Weighted-average grant-date fair value (in dollars per share) | $ 12.38 | $ 15.25 | $ 11.15 |
Maximum | |||
Black-Scholes option valuation model assumptions | |||
Risk-free interest rate | 2.99% | 2.05% | 1.87% |
Volatility factor | 23.28% | 26.69% | 27.37% |
Expected term of options | 5 years 9 months 24 days | 5 years 9 months 24 days | 5 years 9 months 24 days |
Weighted-average grant-date fair value (in dollars per share) | $ 16.23 | $ 16.49 | $ 12.49 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Contractual Obligations [Line Items] | |
2,019 | $ 1,400,212 |
2,020 | 405,702 |
2,021 | 1,157,926 |
2,022 | 188,428 |
2,023 | 186,857 |
Thereafter | 2,020,705 |
Total | 5,359,830 |
Long-term debt | |
Contractual Obligations [Line Items] | |
2,019 | 920,836 |
2,020 | 0 |
2,021 | 900,000 |
2,022 | 0 |
2,023 | 0 |
Thereafter | 1,500,000 |
Total | 3,320,836 |
Capital lease obligations | |
Contractual Obligations [Line Items] | |
2,019 | 40,662 |
2,020 | 45,031 |
2,021 | 46,353 |
2,022 | 31,857 |
2,023 | 35,476 |
Thereafter | 29,323 |
Total | 228,702 |
Interest on long-term debt and capital lease obligations | |
Contractual Obligations [Line Items] | |
2,019 | 209,989 |
2,020 | 175,808 |
2,021 | 136,662 |
2,022 | 98,265 |
2,023 | 94,529 |
Thereafter | 268,571 |
Total | 983,824 |
Satellite-related obligations | |
Contractual Obligations [Line Items] | |
2,019 | 207,403 |
2,020 | 166,601 |
2,021 | 60,852 |
2,022 | 47,996 |
2,023 | 47,907 |
Thereafter | 200,925 |
Total | 731,684 |
Operating lease obligations | |
Contractual Obligations [Line Items] | |
2,019 | 21,146 |
2,020 | 18,081 |
2,021 | 13,873 |
2,022 | 10,118 |
2,023 | 8,814 |
Thereafter | 21,886 |
Total | 93,918 |
Service commitments | |
Contractual Obligations [Line Items] | |
2,019 | 176 |
2,020 | 181 |
2,021 | 186 |
2,022 | 192 |
2,023 | 131 |
Thereafter | 0 |
Total | $ 866 |
Commitments and Contingencies_2
Commitments and Contingencies - Satellite Leases and Rent Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Satellite-related expenses | $ 101 | $ 140 | $ 144 |
Total rent expense | $ 27 | $ 30 | $ 21 |
Commitments and Contingencies_3
Commitments and Contingencies - Contingencies (Details) $ in Millions | Feb. 13, 2018claim | Aug. 07, 2017USD ($) | Feb. 14, 2017patent | Nov. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Elbit | Hughes Satellite Systems Corporation (HSSC) | Hughes Network Systems | ||||||
Commitment and Contingencies | ||||||
Damages awarded | $ 21 | $ 29 | ||||
Attorney's fees sought | $ 14 | |||||
Loss contingency accrual | $ 3 | $ 3 | ||||
Realtime Data LLC | ||||||
Commitment and Contingencies | ||||||
Patents allegedly infringed | patent | 4 | |||||
Patent 728 | Realtime Data LLC | ||||||
Commitment and Contingencies | ||||||
Pending Claims validity challenged | claim | 1 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of business segments | segment | 2 | ||
Discontinued Operations | |||
Segment Reporting Information [Line Items] | |||
Discontinued operations capital expenditures | $ | $ 12 | $ 70 |
Segment Reporting - Revenue, Ca
Segment Reporting - Revenue, Capital Expenditures, and EBITDA (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | $ 530,661 | $ 532,953 | $ 525,957 | $ 501,792 | $ 506,048 | $ 481,233 | $ 465,076 | $ 433,151 | $ 2,091,363 | $ 1,885,508 | $ 1,810,466 |
EBITDA | 756,669 | 794,577 | 751,005 | ||||||||
Capital expenditures | 477,617 | 566,384 | 628,510 | ||||||||
Interest income and expense, net | (168,293) | (172,621) | (102,237) | ||||||||
Depreciation and amortization | (598,178) | (522,190) | (432,904) | ||||||||
Net income attributable to noncontrolling interests | 1,842 | 928 | 762 | ||||||||
Income (loss) from continuing operations before income taxes | (7,960) | 100,694 | 216,626 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 16,777 | ||||||||||
Hughes segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,716,169 | 1,476,131 | 1,389,152 | ||||||||
Hughes segment | Operating segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 1,716,528 | 1,477,918 | 1,392,361 | ||||||||
EBITDA | 601,319 | 475,222 | 477,165 | ||||||||
Capital expenditures | 390,108 | 376,502 | 322,362 | ||||||||
Hughes segment | Intersegment Elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 359 | 1,787 | 3,209 | ||||||||
EchoStar Satellite Services segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 355,734 | 390,831 | 406,970 | ||||||||
EchoStar Satellite Services segment | Operating segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 358,058 | 392,244 | 407,660 | ||||||||
EBITDA | 308,058 | 315,285 | 341,516 | ||||||||
Capital expenditures | (76,582) | 20,725 | 58,925 | ||||||||
EchoStar Satellite Services segment | Intersegment Elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 2,324 | 1,413 | 690 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 19,460 | 18,546 | 14,344 | ||||||||
Corporate and Other | Intersegment Elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | (2,683) | (3,200) | (3,899) | ||||||||
Corporate and Other | Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenue | 16,777 | 15,346 | 10,445 | ||||||||
EBITDA | (152,708) | 4,070 | (67,676) | ||||||||
Capital expenditures | $ 164,091 | $ 169,157 | $ 247,223 |
Segment Reporting - Geographic
Segment Reporting - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Geographic Information | |||||||||||
Long-lived assets | $ 4,458,966 | $ 4,565,535 | $ 4,458,966 | $ 4,565,535 | |||||||
Total revenue | 530,661 | $ 532,953 | $ 525,957 | $ 501,792 | 506,048 | $ 481,233 | $ 465,076 | $ 433,151 | 2,091,363 | 1,885,508 | $ 1,810,466 |
North America | |||||||||||
Geographic Information | |||||||||||
Long-lived assets | 4,114,087 | 4,221,793 | 4,114,087 | 4,221,793 | |||||||
Total revenue | 1,819,463 | 1,612,349 | 1,566,576 | ||||||||
South and Central America | |||||||||||
Geographic Information | |||||||||||
Long-lived assets | 226,232 | 213,890 | 226,232 | 213,890 | |||||||
Total revenue | 101,632 | 90,000 | 50,952 | ||||||||
All other | |||||||||||
Geographic Information | |||||||||||
Long-lived assets | $ 118,647 | $ 129,852 | 118,647 | 129,852 | |||||||
Total revenue | $ 170,268 | $ 183,159 | $ 192,938 |
Segment Reporting - Transaction
Segment Reporting - Transactions with Major Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 530,661 | $ 532,953 | $ 525,957 | $ 501,792 | $ 506,048 | $ 481,233 | $ 465,076 | $ 433,151 | $ 2,091,363 | $ 1,885,508 | $ 1,810,466 |
Corporate and Other | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 16,777 | ||||||||||
Hughes segment | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 1,716,169 | 1,476,131 | 1,389,152 | ||||||||
Hughes segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 1,716,528 | 1,477,918 | 1,392,361 | ||||||||
EchoStar Satellite Services segment | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 355,734 | 390,831 | 406,970 | ||||||||
EchoStar Satellite Services segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 358,058 | 392,244 | 407,660 | ||||||||
DISH Network | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 379,165 | $ 445,988 | $ 472,282 | ||||||||
DISH Network | Revenue | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Percentage of total revenue | 18.10% | 23.70% | 26.10% | ||||||||
DISH Network | Corporate and Other | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 19,075 | $ 18,522 | $ 15,433 | ||||||||
DISH Network | Hughes segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 50,275 | 82,625 | 107,300 | ||||||||
DISH Network | EchoStar Satellite Services segment | Operating segments | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | 309,815 | 344,841 | 349,549 | ||||||||
All other | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Total revenue | $ 1,712,198 | $ 1,439,520 | $ 1,338,184 | ||||||||
All other | Revenue | |||||||||||
Sales to each customer and its percentage of total revenue | |||||||||||
Percentage of total revenue | 81.90% | 76.30% | 73.90% |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - Summary of Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total revenue | $ 530,661 | $ 532,953 | $ 525,957 | $ 501,792 | $ 506,048 | $ 481,233 | $ 465,076 | $ 433,151 | $ 2,091,363 | $ 1,885,508 | $ 1,810,466 | |
Operating income | (19,567) | 70,035 | 74,765 | 58,010 | 42,352 | 56,414 | 45,890 | 51,651 | 183,243 | 196,307 | 296,163 | |
Net income (loss) | (111,648) | 16,502 | 77,684 | (21,171) | 313,814 | 35,201 | 7,122 | 37,352 | (38,633) | 393,489 | 180,692 | |
Net income (loss) attributable to EchoStar common stock | $ (112,198) | $ 16,052 | $ 77,222 | $ (21,551) | $ 313,237 | $ 34,669 | $ 6,940 | $ 38,924 | $ (40,475) | $ 393,770 | $ 181,673 | |
Basic earnings per share (in dollars per share) | $ (1.17) | $ 0.17 | $ 0.80 | $ (0.22) | $ 3.29 | $ 0.36 | $ 0.07 | $ 0.41 | $ (0.42) | $ 4.13 | $ 1.94 | |
Diluted earnings per share (in dollars per share) | $ (1.17) | $ 0.17 | $ 0.80 | $ (0.22) | $ 3.23 | $ 0.36 | $ 0.07 | $ 0.41 | $ (0.42) | $ 4.07 | $ 1.92 | |
Benefit as result of change in enacted tax rate | $ 304,000 | $ (1,000) | $ (304,000) | |||||||||
Gains (losses) related to trading securities | $ 23,000 | 43,000 | $ 1,000 | |||||||||
Impairment of long-lived assets | $ 11,000 | $ 65,220 | $ 10,762 | $ 0 | ||||||||
BRAZIL | ||||||||||||
Impairment of long-lived assets | $ 65,000 |
Related Party Transactions - DI
Related Party Transactions - DISH Network (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||
Feb. 28, 2022 | Feb. 28, 2019 | Feb. 28, 2018 | Dec. 31, 2017 | Aug. 31, 2017 | May 31, 2017 | Mar. 31, 2017 | Feb. 28, 2017 | Jul. 31, 2016 | Aug. 31, 2015 | Dec. 31, 2012 | Oct. 31, 2012 | May 31, 2012 | Jan. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2009transponder | Nov. 30, 2008transponder | Dec. 31, 2018term | Aug. 31, 2018 | Feb. 28, 2013transponder | Mar. 31, 2012 | Sep. 30, 2010USD ($) | |
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 | |||||||||||||||||||||
Subsequent Event | Hughes Equipment And Service Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Minimum termination notice period | 365 days | |||||||||||||||||||||
DISH Network | DISH Nimiq 5 Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Number of DBS transponders available to receive services | 32 | |||||||||||||||||||||
DISH Network | TT&C Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Minimum termination notice period | 12 months | |||||||||||||||||||||
DISH Network | TerreStar Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Minimum termination notice period | 21 days | |||||||||||||||||||||
Required minimum notice for termination of agreement | 90 days | |||||||||||||||||||||
DISH Network | DBSD North America Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Required minimum notice for termination of agreement | 120 days | |||||||||||||||||||||
Ownership interest acquired by related party (as a percent) | 100.00% | |||||||||||||||||||||
DISH Network | RUS Service Implementation Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Grants receivable by related parties | $ | $ 14 | |||||||||||||||||||||
DISH Network | Amended and Restated 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 | Collocation and Antenna Space Agreements | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Term of renewal option | 3 years | 4 years | ||||||||||||||||||||
Termination notice required | 180 days | |||||||||||||||||||||
DISH Network | Subsequent Event | DBSD North America Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Minimum termination notice period | 21 days | |||||||||||||||||||||
DISH Network | Subsequent Event | Hughes Equipment And Service Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||||
Minimum termination notice period | 180 days | |||||||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||||||
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% | |||||||||||||||||||||
Telesat Canada | TeleSat Transponder Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 15 years | |||||||||||||||||||||
Number of DBS transponders available to receive services | 32 | |||||||||||||||||||||
Ciel Satellite Holdings Inc | DISH Network | 103 Spectrum Development Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 10 years | |||||||||||||||||||||
Maximum | DISH Network | Collocation and Antenna Space Agreements | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Required renewal notice | 120 days | |||||||||||||||||||||
Minimum | DISH Network | Collocation and Antenna Space Agreements | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Required renewal notice | 90 days | |||||||||||||||||||||
EchoStar XVI | DISH Network | Satellite Capacity Lease Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 1 year | 10 years | ||||||||||||||||||||
Agreement term from commencement of service date | 4 years | |||||||||||||||||||||
Renewal option reduction | 1 year | |||||||||||||||||||||
EchoStar XVI | DISH Network | Satellite Services Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Additional term of renewal option | 5 years | |||||||||||||||||||||
QuetzSat-1 | DISH Network | Satellite Capacity Lease Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Number of DBS transponders currently receiving services | 24 | |||||||||||||||||||||
Number of DBS transponders receiving certain satellite services from related party | 5 | |||||||||||||||||||||
QuetzSat-1 | S E S Latin America | Satellite Services Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 10 years | |||||||||||||||||||||
Number of DBS transponders expected to receive services | 32 | |||||||||||||||||||||
Related Party Transactions, Lessor, Operating Lease, Real Estate | DISH Network | 100 Inverness Lease Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Required minimum notice for termination of agreement | 180 days | |||||||||||||||||||||
Required minimum notice period for termination of agreement after extension | 30 days | |||||||||||||||||||||
Related Party Transactions, Lessor, Operating Lease, Real Estate | DISH Network | Meridian Lease Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Required minimum notice period for termination of agreement after extension | 30 days | |||||||||||||||||||||
Related Party Transactions, Lessor, Operating Lease, Real Estate | DISH Network | Santa Fe Lease Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Required minimum notice period for termination of agreement after extension | 30 days | |||||||||||||||||||||
Related Party Transactions, Lessor, Operating Lease, Real Estate | DISH Network | Cheyenne Lease Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Required minimum notice period for termination of agreement after extension | 30 days | |||||||||||||||||||||
Related Party Transactions, Lessee, Operating Lease, Real Estate | DISH Network | Cheyenne Lease Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Operating lease contract term | 1 year | |||||||||||||||||||||
Maximum number of one year renewal options | term | 12 | |||||||||||||||||||||
Term of renewal option | 1 year | |||||||||||||||||||||
Related Party Transactions, Lessee, Operating Lease, Real Estate | DISH Network | Gilbert Lease Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Operating lease contract term | 1 year | |||||||||||||||||||||
Maximum number of one year renewal options | term | 12 | |||||||||||||||||||||
Term of renewal option | 1 year | |||||||||||||||||||||
Related Party Transactions, Lessee, Operating Lease, Real Estate | DISH Network | American Fork Occupancy License Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||||
Scenario, Forecast | DISH Network | DBSD North America Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Minimum termination notice period | 180 days | |||||||||||||||||||||
Automatic renewal period | 5 years |
Related Party Transactions - Ta
Related Party Transactions - Tax Sharing and Patent Cross-License Agreements (Details) - DISH Network $ in Millions | Mar. 02, 2014USD ($)satellite | Mar. 31, 2017 | Dec. 31, 2016USD ($) | Oct. 31, 2016parcel | Dec. 31, 2011USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 28, 2017 |
Satellite and Tracking Stock Transaction | ||||||||
Related party transactions | ||||||||
Proceeds from issuance of preferred stock | $ 11 | |||||||
Hughes Broadband Master Services Agreement | ||||||||
Related party transactions | ||||||||
Agreement term | 5 years | |||||||
Automatic renewal period | 1 year | |||||||
Cost of sales - services/equipment (exclusive of depreciation and amortization) | $ 33 | $ 29 | ||||||
Patent Cross-License Agreements | ||||||||
Related party transactions | ||||||||
Maximum aggregate payments required under cross license agreements | $ 10 | |||||||
Maximum additional aggregate payments required under cross license agreements if options are exercised | $ 3 | |||||||
Orange New Jersey | ||||||||
Related party transactions | ||||||||
Number of parcels sold | parcel | 2 | |||||||
EchoStar Technologies segment | Share Exchange Agreement | ||||||||
Related party transactions | ||||||||
Ownership interest acquired by related party (as a percent) | 100.00% | |||||||
EchoStar and HSSC | Satellite and Tracking Stock Transaction | ||||||||
Related party transactions | ||||||||
Number of owned satellites transferred | satellite | 5 |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Hughes Systique Corporation | ||||
Related party transactions | ||||
Ownership interest in related party (as a percent) | 43.40% | |||
Ownership percentage by related party | 25.50% | |||
Dish Mexico | ||||
Related party transactions | ||||
Equity interest, percentage in joint venture | 49.00% | 49.00% | ||
Revenue from related parties | $ 23 | $ 23 | $ 23 | |
Receivables from related party | $ 6 | $ 6 | 8 | |
Deluxe | ||||
Related party transactions | ||||
Equity interest, percentage in joint venture | 50.00% | 50.00% | ||
Revenue from related parties | $ 4 | 5 | $ 3 | |
Receivables from related party | $ 1 | 1 | 1 | |
AsiaSat | ||||
Related party transactions | ||||
Expenses from transaction with related party | 0.1 | |||
Global IP Revenue | ||||
Related party transactions | ||||
Revenue from related parties | 9 | $ 0.3 | ||
Receivables from related party | 7.5 | 7.5 | ||
TerreStar Solutions, Inc. | ||||
Related party transactions | ||||
Revenue from related parties | 6 | |||
Receivables from related party | $ 2 | $ 2 | ||
Ownership percentage in equity method investment (at least) | 15.00% | 15.00% | ||
Broadband Connectivity Solutions | ||||
Related party transactions | ||||
Revenue from related parties | $ 0.7 | |||
Receivables from related party | $ 3 | $ 3 | ||
Broadband Connectivity Solutions | ||||
Related party transactions | ||||
Equity interest, percentage in joint venture | 20.00% | 20.00% | ||
Payments to acquire equity method investments | $ 100 |
Related Party Transactions - _2
Related Party Transactions - Discontinued Operations (Details) - Discontinued Operations $ in Millions | 1 Months Ended | ||||
Apr. 30, 2011USD ($)installment | Jan. 31, 2010 | Feb. 28, 2017 | Aug. 31, 2014 | Jul. 31, 2012 | |
NagraStar | |||||
Related party transactions | |||||
Equity interest, percentage in joint venture | 50.00% | ||||
SmarDTV SA | |||||
Related party transactions | |||||
Equity interest, percentage in joint venture | 22.50% | ||||
TiVo vs Dish Network And Echostar Corporation | DISH Network | |||||
Related party transactions | |||||
Litigation settlement, amount awarded to other party | $ 500 | ||||
Initial settlement amount paid | 300 | ||||
Litigation settlement amount paid in six month installments | $ 200 | ||||
Litigation settlement, number of annual installments | installment | 6 | ||||
Portion of the $300 million initial settlement agreement payment paid by EchoStar | $ 10 | ||||
Estimated percentage of annual payments | 5.00% | ||||
Sling TV Holding | DISH Network | |||||
Related party transactions | |||||
Ownership interest acquired by related party (as a percent) | 90.00% | 67.00% | |||
Percentage of voting interests acquired by related party | 100.00% | ||||
EchoStar Corporation | Sling TV Holding | |||||
Related party transactions | |||||
Nonvoting ownership percentage | 10.00% | ||||
Equity interest, percentage in joint venture | 33.00% | ||||
D I S H Online. Com Services Agreement | DISH Network | |||||
Related party transactions | |||||
Agreement term | 2 years |
Supplemental Financial Inform_3
Supplemental Financial Information - Schedule of Noncash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Employee benefits paid in Class A common stock | $ 7,605 | $ 11,200 | $ 11,126 |
Property and equipment financed under capital lease obligations | 364 | 8,484 | 7,652 |
Increase (decrease) in capital expenditures included in accounts payable, net | 7,318 | (3,831) | 3,054 |
E | 0 | 43,890 | 0 |
Noncash net assets exchanged for Tracking Stock | $ 0 | $ 299,888 | $ 0 |
Supplemental Financial Inform_4
Supplemental Financial Information - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted cash | $ 1 | $ 1 | |
Cash equivalents | 1 | 1 | |
Gain (loss) from foreign currency transactions | (16) | 1 | $ (0.5) |
Level 2 | |||
In-orbit incentive obligations | 107 | 112 | |
Contract Acquisition Costs | |||
Contract acquisition costs | 104 | ||
Capitalized contract cost amortization | 83 | ||
Contract Fulfillment Costs | |||
Contract acquisition costs | 3 | ||
Other noncurrent assets, net | |||
Capitalized computer software, net | 97 | 88 | |
Capitalized software development costs for software sold to customers | 29 | 20 | |
Capitalized computer software costs | 32 | 31 | 23 |
Capitalized computer software, amortization | $ 23 | 20 | 10 |
Weighted-average | |||
Software useful life | 3 years | ||
Selling, general and administrative expenses | |||
Advertising expense | $ 76 | $ 64 | $ 44 |
Supplemental Financial Inform_5
Supplemental Financial Information - Schedule of Research and Development Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Research and development expenses | $ 27,570 | $ 31,745 | $ 31,170 |
Cost of sales | |||
Research and development expenses | 23,422 | 27,899 | 23,663 |
Research and development expenses | |||
Research and development expenses | $ 27,570 | $ 31,745 | $ 31,170 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 12,027 | $ 12,955 | $ 11,687 |
Charged to Costs and Expenses | 22,184 | 9,551 | 14,393 |
Deductions | (17,607) | (10,479) | (13,125) |
Balance at End of Year | $ 16,604 | $ 12,027 | $ 12,955 |
Uncategorized Items - sats12311
Label | Element | Value |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 3,828,677,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,669,461,000 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (98,162,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (98,162,000) |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 328,755,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 733,972,000 |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 73,910,000 |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 100,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 102,000 |
Other Noncontrolling Interests [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 12,830,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 14,822,000 |
Preferred Tracking Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 6,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 0 |