Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document and Entity Information | ||
Entity Registrant Name | Hughes Satellite Systems Corp | |
Entity Central Index Key | 1,533,758 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 1,078 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,509,238 | $ 1,822,561 |
Marketable investment securities, at fair value | 993,126 | 455,602 |
Trade accounts receivable and contract assets, net (Note 3) | 186,956 | 196,840 |
Trade accounts receivable - DISH Network, net | 25,703 | 38,641 |
Inventory | 81,388 | 83,595 |
Prepaids and deposits | 44,038 | 38,797 |
Advances to affiliates, net | 103,631 | 114,858 |
Other current assets | 15,887 | 91,544 |
Total current assets | 2,959,967 | 2,842,438 |
Noncurrent assets: | ||
Property and equipment, net | 2,642,664 | 2,753,098 |
Regulatory authorizations | 465,658 | 465,658 |
Goodwill | 504,173 | 504,173 |
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively | 51,267 | 58,582 |
Investments in unconsolidated entities | 28,317 | 30,587 |
Other noncurrent assets, net | 247,902 | 202,814 |
Total noncurrent assets | 3,939,981 | 4,014,912 |
Total assets | 6,899,948 | 6,857,350 |
Current liabilities: | ||
Trade accounts payable | 97,116 | 102,816 |
Trade accounts payable - DISH Network | 445 | 3,769 |
Current portion of long-term debt and capital lease obligations | 1,028,119 | 40,631 |
Advances from affiliates, net | 771 | 477 |
Contract liabilities | 72,776 | 65,959 |
Accrued interest | 45,602 | 46,834 |
Accrued compensation | 32,680 | 36,924 |
Accrued taxes | 9,142 | 8,198 |
Accrued expenses and other | 60,990 | 77,312 |
Total current liabilities | 1,347,641 | 382,920 |
Noncurrent liabilities: | ||
Long-term debt and capital lease obligations, net | 2,592,174 | 3,594,213 |
Deferred tax liabilities, net | 464,722 | 439,631 |
Advances from affiliates | 33,525 | 33,715 |
Other noncurrent liabilities | 104,289 | 107,627 |
Total noncurrent liabilities | 3,194,710 | 4,175,186 |
Total liabilities | 4,542,351 | 4,558,106 |
Commitments and Contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued and outstanding at each of June 30, 2018 and December 31, 2017 | 0 | 0 |
Common stock, $0.01 par value; 1,000,000 shares authorized, 1,078 shares issued and outstanding at June 30, 2018 and 1,000 shares issued and outstanding at December 31, 2017 | 0 | 0 |
Additional paid-in capital | 1,764,131 | 1,754,561 |
Accumulated other comprehensive loss | (82,089) | (52,822) |
Accumulated earnings | 660,690 | 582,683 |
Total HSS shareholders’ equity | 2,342,732 | 2,284,422 |
Noncontrolling interests | 14,865 | 14,822 |
Total shareholders’ equity | 2,357,597 | 2,299,244 |
Total liabilities and shareholders’ equity | $ 6,899,948 | $ 6,857,350 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Noncurrent assets: | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 300,133 | $ 292,835 |
Preferred stock | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
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) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, shares issued (in shares) | 1,078 | 1,078 |
Common stock, shares outstanding (in shares) | 1,078 | 1,078 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Services and other revenue - DISH Network | $ 97,140 | $ 110,921 | $ 197,754 | $ 222,411 |
Services and other revenue - other | 380,115 | 285,055 | 739,449 | 555,278 |
Equipment revenue | 50,341 | 66,289 | 93,288 | 114,694 |
Total revenue | 527,596 | 462,265 | 1,030,491 | 892,383 |
Costs and expenses: | ||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 150,223 | 137,274 | 297,878 | 271,578 |
Cost of sales - equipment (exclusive of depreciation and amortization) | 41,865 | 53,662 | 80,936 | 94,483 |
Selling, general and administrative expenses | 93,375 | 86,115 | 188,025 | 160,493 |
Research and development expenses | 6,647 | 7,437 | 13,784 | 15,142 |
Depreciation and amortization | 136,708 | 124,743 | 270,426 | 236,963 |
Total costs and expenses | 428,818 | 409,231 | 851,049 | 778,659 |
Operating income | 98,778 | 53,034 | 179,442 | 113,724 |
Other income (expense): | ||||
Interest income | 14,286 | 7,086 | 25,665 | 12,927 |
Interest expense, net of amounts capitalized | (64,122) | (61,376) | (128,535) | (121,213) |
Gain (Loss) on Investments | 509 | 1,632 | 117 | (1,575) |
Equity in earnings of unconsolidated affiliate | 1,238 | 1,639 | 2,730 | 3,350 |
Other, net | 467 | (2,222) | (146) | (1,575) |
Total other expense, net | (47,622) | (53,241) | (100,169) | (108,086) |
Income (loss) before income taxes | 51,156 | (207) | 79,273 | 5,638 |
Income tax benefit (provision) | (10,463) | 509 | (18,199) | 4,091 |
Net income | 40,693 | 302 | 61,074 | 9,729 |
Less: Net income attributable to noncontrolling interests | 462 | 182 | 842 | 474 |
Net income attributable to HSS | 40,231 | 120 | 60,232 | 9,255 |
Comprehensive income: | ||||
Net income | 40,693 | 302 | 61,074 | 9,729 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | (32,314) | (6,736) | (30,414) | 5,385 |
Unrealized gains (losses) on available-for-sale securities and other | 329 | (11) | (82) | (1,511) |
Realized gains on available-for-sale securities in net income | (3) | 0 | (3) | 0 |
Other-than-temporary impairment loss on available-for-sale securities in net income | 0 | 0 | 0 | 3,298 |
Total other comprehensive income (loss), net of tax | (31,988) | (6,747) | (30,499) | 7,172 |
Comprehensive income (loss) | 8,705 | (6,445) | 30,575 | 16,901 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (123) | 182 | 43 | 474 |
Comprehensive income (loss) attributable to HSS | $ 8,828 | $ (6,627) | $ 30,532 | $ 16,427 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHARESHOLDERS' EQUITY Statement - USD ($) $ in Thousands | Total | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Earnings | Noncontrolling Interests |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2016 | $ 1,755,023 | $ 1,516,199 | $ (60,719) | $ 286,713 | $ 12,830 |
Stock-based compensation | 2,480 | 2,480 | 0 | 0 | 0 |
Transfer of launch service contracts to EchoStar | (145,114) | (145,114) | 0 | 0 | 0 |
Contribution of EchoStar XIX satellite, net of deferred tax | 369,263 | 369,263 | 0 | 0 | 0 |
Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1) | 219,662 | 219,662 | 0 | 0 | 0 |
Exchange of noncash net assets for HSS Tracking Stock (Note 1) | (190,221) | (190,221) | 0 | 0 | 0 |
Net income | 9,729 | 0 | 0 | 9,255 | 474 |
Foreign currency translation adjustments | 5,385 | 0 | 5,385 | 0 | 0 |
Unrealized gains (losses) on available-for-sale securities, net | 1,762 | 0 | 1,762 | 0 | 0 |
Other | (102) | (127) | 25 | 0 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2017 | 2,027,867 | 1,772,142 | (53,547) | 295,968 | 13,304 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2017 | 2,299,244 | 1,754,561 | (52,822) | 582,683 | 14,822 |
Cumulative Effect on Retained Earnings, Net of Tax | 18,208 | 433 | 17,775 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 01, 2018 | 2,317,452 | 1,754,561 | (52,389) | 600,458 | 14,822 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2017 | 2,299,244 | 1,754,561 | (52,822) | 582,683 | 14,822 |
Stock-based compensation | 2,683 | 2,683 | 0 | 0 | 0 |
Capital contribution from EchoStar Corporation | 7,125 | 7,125 | 0 | 0 | 0 |
Net income | 61,074 | 0 | 0 | 60,232 | 842 |
Foreign currency translation adjustments | (30,414) | 0 | (29,615) | 0 | (799) |
Unrealized gains (losses) on available-for-sale securities, net | 156 | 0 | 156 | 0 | 0 |
Other | (479) | (238) | (241) | 0 | 0 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jun. 30, 2018 | $ 2,357,597 | $ 1,764,131 | $ (82,089) | $ 660,690 | $ 14,865 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 61,074 | $ 9,729 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 270,426 | 236,963 |
Equity in earnings of unconsolidated affiliate | (2,730) | (3,350) |
Amortization of debt issuance costs | 3,905 | 3,617 |
Losses (gains) on investments, net | (114) | 1,575 |
Stock-based compensation | 2,683 | 2,480 |
Deferred tax (benefit) provision | 16,742 | (6,683) |
Dividends received from unconsolidated entity | 5,000 | 7,500 |
Proceeds from sale of trading securities | 0 | 8,922 |
Trade accounts receivable, net | (3,061) | (8,286) |
Advances to and from affiliates, net | 8,842 | (3,242) |
Trade accounts receivable - DISH Network | 12,938 | (29,306) |
Inventory | 238 | (28,411) |
Other current assets | (5,829) | (1,710) |
Trade accounts payable | 3,348 | 2,441 |
Trade accounts payable - DISH Network | (3,324) | 0 |
Accrued expenses and other | 4,542 | 2,161 |
Changes in noncurrent assets and noncurrent liabilities, net | (16,698) | (7,456) |
Other, net | 3,143 | 2,300 |
Net cash flows from operating activities | 361,125 | 189,244 |
Cash flows from investing activities: | ||
Purchases of marketable investment securities | (1,098,527) | (992) |
Sales and maturities of marketable investment securities | 560,194 | 118,648 |
Expenditures for property and equipment | (175,644) | (175,344) |
Refunds and other receipts related to property and equipment | 77,524 | 0 |
Expenditures for externally marketed software | (15,000) | (17,119) |
Payment for satellite launch services | (7,125) | 0 |
Net cash flows from investing activities | (658,578) | (74,807) |
Cash flows from financing activities: | ||
Repayment of debt and capital lease obligations | (18,417) | (17,111) |
Advances from (to) affiliates, net | (36) | |
Capital contribution from EchoStar Corporation | 7,125 | 0 |
Payment of in-orbit incentive obligations | (2,718) | (3,194) |
Other, net | 0 | 1,312 |
Net cash flows from financing activities | (14,010) | (19,029) |
Effect of exchange rates on cash and cash equivalents | (1,865) | 925 |
Net increase (decrease) in cash and cash equivalents, including restricted amounts | (313,328) | 96,333 |
Cash and cash equivalents, including restricted amounts, beginning of period | 1,823,354 | 2,071,687 |
Cash and cash equivalents, including restricted amounts, end of period | 1,510,026 | 2,168,020 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 125,098 | 116,902 |
Cash paid for income taxes | $ 2,204 | $ 2,141 |
Organization and Business Activ
Organization and Business Activities | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business Activities | ORGANIZATION AND BUSINESS ACTIVITIES Principal Business Hughes Satellite Systems Corporation (which, together with its subsidiaries, is referred to as “HSS,” the “Company,” “we,” “us” and/or “our”) is a holding company and a subsidiary of EchoStar Corporation (“EchoStar”). We are a global provider of satellite service operations, video delivery services, broadband satellite technologies and broadband internet services for home and small office customers. 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 service operations and video delivery services on a full-time and occasional-use basis primarily to DISH Network, U.S. government service providers, internet service providers, broadcast news organizations, programmers and private enterprise customers. ESS also manages satellite operations for certain satellites owned by DISH Network. Our operations also include various corporate departments (primarily Executive, Treasury, Strategic Development, Human Resources, IT, Finance, Real Estate 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. We were formed as a Colorado corporation in March 2011 to facilitate the acquisition by EchoStar of Hughes Communications, Inc. and its subsidiaries and related financing transactions. In connection with our formation, EchoStar contributed the assets and liabilities of its satellite services business to us, including the principal operating subsidiary of its satellite services business, EchoStar Satellite Services L.L.C. A substantial majority of the voting power of the shares of each of EchoStar and DISH Network Corporation (“DISH”) is owned beneficially by Charles W. Ergen, our Chairman, and by certain entities established by Mr. Ergen for the benefit of his family. On January 31, 2017, EchoStar and certain of its and our subsidiaries entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with DISH and certain of its subsidiaries. Pursuant to the Share Exchange Agreement, on February 28, 2017, among other things, EchoStar and certain of its and our subsidiaries received all of the shares of the Hughes Retail Preferred Tracking Stock issued by EchoStar (the “EchoStar Tracking Stock”) and the Hughes Retail Preferred Tracking Stock issued by us (the “HSS Tracking Stock”, together with the EchoStar Tracking Stock, the “Tracking Stock”) in exchange for 100% of the equity interests of certain EchoStar subsidiaries that held substantially all of EchoStar’s former EchoStar Technologies businesses and certain other assets (collectively, the “Share Exchange”). The EchoStar Technologies businesses designed, developed and distributed secure end-to-end video technology solutions including digital set-top boxes and related products and technology, primarily for satellite TV service providers and telecommunication companies, and provided digital broadcast operations, including satellite uplinking/downlinking, transmission services, signal processing, conditional access management and other services. The Tracking Stock tracked the economic performance of the residential retail satellite broadband business of our Hughes segment, including certain operations, assets and liabilities attributed to such business (collectively, the “Hughes Retail Group”), and represented an aggregate 80.0% |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information and notes required for complete financial statements prepared in conformity with U.S. GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2017 . Principles of Consolidation 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 shareholders’ equity for the portion of the entity’s equity attributed to the noncontrolling ownership interests. 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 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 EchoStar’s 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. 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 10 ) are based on quoted market prices in less active markets and are categorized as Level 2 measurements. 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 six months ended June 30, 2018 and 2017 . As of June 30, 2018 and December 31, 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 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). 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 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 generally 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 generally 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 generally 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 our input method, we recognize the transaction price as revenue based on the ratio of costs incurred to estimated total costs at completion. Under our 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 service operations through leasing arrangements and video delivery services on a full-time and occasional-use basis to DISH Network, government service providers, internet service providers, broadcast news organizations, programmers 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 after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales 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 accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make 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 contract assets is included in Selling, general and administrative expenses in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). 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 Condensed 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 is included in Contract liabilities or Other noncurrent liabilities in our Condensed 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 we have transferred control of the goods or services to the customer and 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 Condensed Consolidated Balance Sheets and related amortization expense is included in Selling, general and administrative expenses in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Contract Fulfillment Costs We recognize costs to fulfill a contract as an asset when the costs relate directly to a 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 Condensed Consolidated Balance Sheets and related amortization expense is included in Cost of sales - services and other in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). 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 order. In such instances, the amounts for these customer funded development efforts are included in cost of sales. Capitalized Software Costs Costs related to the procurement and development of software for internal-use and externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years . Capitalized costs of internal-use software are included in Property and equipment, net and capitalized costs of externally marketed software are included in Other noncurrent assets, net in our Condensed Consolidated Balance Sheets. Externally marketed software generally is installed in the equipment we sell to customers. We conduct software program reviews for externally marketed capitalized software costs at least annually, or as events and circumstances warrant such a review, to determine if capitalized software development costs are recoverable and to ensure that costs associated with programs that are no longer generating revenue are expensed. 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 Condensed Consolidated Statements of Operations and 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We use the first-in, first out method to determine the cost basis on sales of debt securities. Interest income from debt securities is reported in Interest income in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We could realize proceeds from certain investments prior to their contractual maturity if we actually 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, thus establishing a new cost basis for the investment. Additionally, from time to time we make strategic investments in corporate debt securities. We may elect to account for these investments using the fair value option when it reduces accounting complexity. When we have made this election, we recognize periodic changes in fair value of these investments in Gains (losses) on investments, net in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Interest income from these securities is reported in Interest income in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). 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 Condensed Consolidated Statements of Operations and 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We used the first in, first out 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We recognize dividend income on equity securities on the ex-dividend date and report such income in Other, net in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). 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. We use the equity method to account for such investments when we have the ability to significantly influence the operating decisions of the investee. 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. Our investments in unconsolidated entities that are accounted for using the equity method are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in Equity in earnings of unconsolidated affiliate in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and include the intra-entity profit eliminations within Equity in earnings of unconsolidated affiliate . 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 earnings. Other Significant Accounting Policies See Note 2, Summary of Significant Accounting Policies to our consolidated financial statements included in our Form 10-K for the year ended December 31, 2017 for a summary of our other significant accounting policies. Recently Adopted Accounting Pronouncements 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 of $ 18.2 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 (See Contract Acquisition and Fulfillment Costs above). 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 assets on our Condensed Consolidated Balance Sheet and the costs generally are recognized as expenses over a longer period of time in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The adoption of the New Revenue Standard by one of our unconsolidated entities 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 $0.4 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 Condensed 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. The cumulative effects of changes to the impacted line items on our Condensed Consolidated Balance Sheet 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 $ 91,544 $ 533 $ — $ 92,077 Other noncurrent assets, net $ 202,814 $ 22,545 $ — $ 225,359 Total assets $ 6,857,350 $ 15,975 $ — $ 6,873,325 Liabilities: Contract liabilities $ 65,959 $ (1,542 ) $ — $ 64,417 Accrued expenses and other $ 77,312 $ 255 $ — $ 77,567 Deferred tax liabilities, net $ 439,631 $ 3,122 $ — $ 442,753 Other noncurrent liabilities $ 107,627 $ (4,068 ) $ — $ 103,559 Total liabilities $ 4,558,106 $ (2,233 ) $ — $ 4,555,873 Shareholders’ Equity: Accumulated other comprehensive income (loss) $ (52,822 ) $ — $ 433 $ (52,389 ) Accumulated earnings (losses) $ 582,683 $ 18,208 $ (433 ) $ 600,458 Total shareholders’ equity $ 2,299,244 $ 18,208 $ — $ 2,317,452 Total liabilities and shareholders’ equity $ 6,857,350 $ 15,975 $ — $ 6,873,325 Our adoption of these standards impacted the referenced line items on our Condensed Consolidated Balance Sheet, Statement of Operations and Statements of Comprehensive Income (Loss) as follows: As of June 30, 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 $ 186,956 $ 7,129 $ — $ 194,085 Other current assets $ 15,887 $ (533 ) $ — $ 15,354 Other noncurrent assets, net $ 247,902 $ (29,878 ) $ — $ 218,024 Total assets $ 6,899,948 $ (23,282 ) $ — $ 6,876,666 Liabilities: Contract liabilities $ 72,776 $ 978 $ — $ 73,754 Accrued expenses and other $ 60,990 $ (255 ) $ — $ 60,735 Deferred tax liabilities, net $ 464,722 $ (4,297 ) $ — $ 460,425 Other noncurrent liabilities $ 104,289 $ 2,414 $ — $ 106,703 Total liabilities $ 4,542,351 $ (1,160 ) $ — $ 4,541,191 Shareholders’ Equity: Accumulated other comprehensive loss $ (82,089 ) $ — $ 505 $ (81,584 ) Accumulated earnings $ 660,690 $ (22,122 ) $ (505 ) $ 638,063 Total shareholders’ equity $ 2,357,597 $ (22,122 ) $ — $ 2,335,475 Total liabilities and shareholders’ equity $ 6,899,948 $ (23,282 ) $ — $ 6,876,666 For the three months ended June 30, 2018 As Reported Adjustments Due to the Balances If We Had Not Adopted the New Standards State |
Revenue Recognition Revenue fro
Revenue Recognition Revenue from Contract with Customer (Notes) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 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 June 30, 2018 January 1, 2018 (In thousands) Trade accounts receivable: Sales and services $ 145,475 $ 156,794 Leasing 8,215 10,355 Total 153,690 167,149 Contract assets 42,553 34,615 Allowance for doubtful accounts (9,287 ) (12,027 ) Total trade accounts receivable and contract assets, net $ 186,956 $ 189,737 Trade accounts receivable - DISH Network: Sales and services $ 25,449 $ 16,118 Leasing 254 22,523 Total trade accounts receivable - DISH Network, net $ 25,703 $ 38,641 Contract liabilities: Current $ 72,776 $ 64,417 Noncurrent 10,187 13,036 Total contract liabilities $ 82,963 $ 77,453 For the six months ended June 30, 2018 , revenue recognized that was previously included in the contract liability balance at January 1, 2018 was $52.5 million . Our bad debt expense was $2.3 million and $3.2 million for the three months ended June 30, 2018 and 2017 , respectively, and $6.8 million and $5.7 million for the six months ended June 30, 2018 and 2017 , respectively. Transaction Price Allocated to Remaining Performance Obligations As of June 30, 2018 , the remaining performance obligations for our customer contracts with original expected durations of more than one year was $1.26 billion . We expect to recognize approximately 18.8% of our remaining performance obligations of these contracts as revenue by December 31, 2018. This amount excludes agreements with consumer customers in our Hughes segment that have expected durations of one year or less and our leasing arrangements. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Related Tax Effects | 6 Months Ended |
Jun. 30, 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 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. We have not recognized any tax effects on unrealized gains or losses on available-for-sale securities because such gains or losses would affect the amount of unrealized capital losses for which the related deferred tax asset has been fully offset by a valuation allowance. Accumulated other comprehensive loss includes net cumulative foreign currency translation losses of $81.9 million and $52.3 million as of June 30, 2018 and December 31, 2017 , respectively. For the six months ended June 30, 2017, we recorded an other-than-temporary impairment loss on shares of certain common stock included in our strategic equity securities of $ 3.3 million in Gains (losses) on investments, net |
Marketable Investment Securitie
Marketable Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Investment Securities | MARKETABLE INVESTMENT SECURITIES Overview Our marketable investment securities portfolio consists of various debt and equity instruments as follows: As of June 30, 2018 December 31, 2017 (In thousands) Marketable investment securities: Debt securities: Corporate bonds $ 757,647 $ 368,083 Other debt securities 234,266 86,417 Total debt securities 991,913 454,500 Equity securities 1,213 1,102 Total marketable investment securities $ 993,126 $ 455,602 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 and commercial paper. 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 June 30, 2018 Corporate bonds $ 757,703 $ 171 $ (227 ) $ 757,647 Other debt securities 234,269 — (3 ) 234,266 Total available-for-sale debt securities $ 991,972 $ 171 $ (230 ) $ 991,913 As of December 31, 2017 Corporate bonds $ 368,291 $ — $ (208 ) $ 368,083 Other debt securities 86,425 — (8 ) 86,417 Total available-for-sale debt securities $ 454,716 $ — $ (216 ) $ 454,500 As of June 30, 2018 , we have $783.8 million of available-for-sale debt securities with contractual maturities of one year or less and $208.1 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 $1.1 million , reflecting an adjusted cost basis of $1.5 million and unrealized losses of $0.4 million . 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 $3.3 million other-than-temporary impairment for the six months ended June 30, 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 six months ended June 30, 2017 . 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 Condensed Consolidated Statement of Operations and Comprehensive Income (Loss). For the three and six months ended June 30, 2018 , Gains (losses) on investments, net included net gains of $0.5 million and $0.1 million , respectively, related to equity securities that we held as of June 30, 2018 . Sales of Available-for-Sale Securities We did not sell any securities in our available-for-sale portfolio during the three or six months ended June 30, 2018 . Proceeds from sales of our available-for-sale securities for each of the three and six months ended June 30, 2017 were $8.9 million . We recognized zero gains and losses from the sales of our available-for-sale securities for each of the three and six months ended June 30, 2017 . Fair Value Measurements Our marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of June 30, 2018 and December 31, 2017 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of June 30, 2018 December 31, 2017 Level 1 Level 2 Total Level 1 Level 2 Total (In thousands) Debt securities: Corporate bonds $ — $ 757,647 $ 757,647 $ — $ 368,083 $ 368,083 Other — 234,266 234,266 — 86,417 86,417 Total debt securities — 991,913 991,913 — 454,500 454,500 Equity securities 1,213 — 1,213 1,102 — 1,102 Total marketable investment securities $ 1,213 $ 991,913 $ 993,126 $ 1,102 $ 454,500 $ 455,602 |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2018 | |
Inventory, Net [Abstract] | |
Inventory | INVENTORY Our inventory consisted of the following: As of June 30, 2018 December 31, 2017 (In thousands) Raw materials $ 6,291 $ 5,484 Work-in-process 8,691 7,442 Finished goods 66,406 70,669 Total inventory $ 81,388 $ 83,595 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 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 June 30, 2018 December 31, 2017 (In thousands) Land — $ 13,402 $ 13,475 Buildings and improvements 1 to 40 128,043 128,292 Furniture, fixtures, equipment and other 1 to 12 672,596 650,385 Customer rental equipment 2 to 4 1,032,591 929,775 Satellites - owned 2 to 15 2,268,862 2,516,685 Satellites - acquired under capital leases 10 to 15 899,310 916,820 Construction in progress — 174,046 149,570 Total property and equipment 5,188,850 5,305,002 Accumulated depreciation (2,546,186 ) (2,551,904 ) Property and equipment, net $ 2,642,664 $ 2,753,098 Construction in progress consisted of the following: As of June 30, 2018 December 31, 2017 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 113,658 $ 101,733 Satellite related equipment 25,738 28,358 Other 34,650 19,479 Construction in progress $ 174,046 $ 149,570 Construction in progress as of June 30, 2018 included payments related to our payload on Telesat T19V satellite, which launched in July 2018 and is expected to be placed in service during the fourth quarter of 2018. We were not party to the construction contract for this satellite. Depreciation expense associated with our property and equipment consisted of the following: For the three months For the six months 2018 2017 2018 2017 (In thousands) Satellites $ 61,910 $ 57,322 $ 120,943 $ 109,466 Furniture, fixtures, equipment and other 18,633 15,875 39,407 32,557 Customer rental equipment 42,875 34,081 86,323 64,677 Buildings and improvements 3,967 5,502 5,265 6,759 Total depreciation expense $ 127,385 $ 112,780 $ 251,938 $ 213,459 Satellites As of June 30, 2018 , our satellite fleet consisted of 14 of our owned and leased satellites in geosynchronous orbit, approximately 22,300 miles above the equator. We depreciate our owned satellites on a straight-line basis over the estimated useful life of each satellite. As of June 30, 2018 , four of our satellites are accounted for as capital leases and are depreciated on a straight-line basis over their respective lease terms. 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 . 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 $77.5 million receivable from SES in Other current assets , 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. Telesat T19V . In September 2015, we entered into agreements pursuant to which affiliates of Telesat Canada will provide to us the Ka-band capacity on the Telesat T19V satellite at the 63 degree west longitude orbital location for a 15-year term. We were not party to the construction contract. The Telesat T19V satellite was launched in July 2018. We expect this satellite to be placed into service during the fourth quarter of 2018 and to augment 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 six months ended June 30, 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 in-orbit 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 $1.1 million and $2.3 million for the three and six months ended June 30, 2018 as compared to the same period in 2017, respectively. 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
Goodwill | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | GOODWILL 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 June 30, 2018 and December 31, 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. |
Investment in Unconsolidated En
Investment in Unconsolidated Entities Investment in Unconsolidated Entities | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment 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 certain 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 six months ended June 30, 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 June 30, 2018 December 31, 2017 (In thousands) Investments in unconsolidated entities: Equity method $ 12,879 $ 15,149 Other equity investments without a readily determinable fair value 15,438 15,438 Total investments in unconsolidated entities $ 28,317 $ 30,587 |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations | 6 Months Ended |
Jun. 30, 2018 | |
Debt and Capital Lease Obligations [Abstract] | |
Debt and Capital Lease Obligations | DEBT AND CAPITAL LEASE OBLIGATIONS The following table summarizes the carrying amounts and fair values of our debt: Effective Interest Rate As of June 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ 990,000 $ 1,014,651 $ 990,000 $ 1,042,609 5 1/4% Senior Secured Notes due 2026 5.320% 750,000 707,828 750,000 769,305 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 962,586 900,000 992,745 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 698,693 750,000 791,865 Less: Unamortized debt issuance costs (20,952 ) — (24,857 ) — Subtotal 3,369,048 $ 3,383,758 3,365,143 $ 3,596,524 Capital lease obligations 251,245 269,701 Total debt and capital lease obligations 3,620,293 3,634,844 Less: Current portion (1,028,119 ) (40,631 ) Long-term debt and capital lease obligations, net $ 2,592,174 $ 3,594,213 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our income tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Our interim income tax provision and our interim estimate of our annual effective tax rate are influenced by several factors, including foreign losses and capital gains and losses for which related deferred tax assets are offset by a valuation allowance, changes in tax laws and relative changes in unrecognized tax benefits. Additionally, our effective tax rate can be affected by the amount of pre-tax income or loss. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income or loss is lower. Our income tax provision was approximately $10.5 million for the three months ended June 30, 2018 compared to an income tax benefit of $0.5 million for the three months ended June 30, 2017. Our estimated effective income tax rate was 20.5% and 245.9% for the three months ended June 30, 2018 and 2017 , respectively. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended June 30, 2018 were primarily due to the change in our valuation allowance associated with net unrealized losses that are capital in nature. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended June 30, 2017 were primarily due to various permanent tax differences. Income tax provision was approximately $18.2 million for the six months ended June 30, 2018 compared to an income tax benefit of $4.1 million for the six months ended June 30, 2017 . Our estimated effective income tax rate was 23.0% and (72.6)% for the six months ended June 30, 2018 and 2017 , respectively. The variations in our effective tax rate from the U.S. federal statutory rate for the six months ended June 30, 2018 were primarily due to various permanent tax differences, the impact of state and local taxes, increase in our valuation allowance associated with certain foreign losses, and the change in our valuation allowance associated with net unrealized losses that are capital in nature. For the six months ended June 30, 2017 , the variations in our effective tax rate from the U.S. federal statutory rate were primarily due to the recognition of a one-time tax benefit for the revaluation of our deferred tax assets and liabilities due to a change in our state effective tax rate as a result of the Share Exchange . Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”), we made reasonable estimates of the effects and recorded provisional amounts in our accompanying condensed consolidated financial statements. See Note 10 , Income Taxes to our consolidated financial statements included in our Form 10-K for the year ended December 31, 2017 for a summary of the benefit that we have provisionally recorded to reflect the change in the value of our deferred tax assets and liabilities resulting from the 2017 Tax Act. The tax effects of the 2017 Tax Act that we recorded in our financial statements for the year ended December 31, 2017 remain provisional and we have not made any adjustments to such provisional amounts in the six months ended June 30, 2018. As we collect and prepare necessary data, and interpret the 2017 Tax Act and any additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service (“IRS”) or other standard-setting bodies, we may make adjustments to the provisional amounts. Those adjustment may materially impact the provision for income taxes and the effective tax rate in the period in which the adjustments are made. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments As of June 30, 2018 , our satellite-related obligations were approximately $562.0 million . Our satellite-related obligations primarily include payments pursuant to regulatory authorizations; executory costs for our capital lease satellites; costs under agreements to lease satellite capacity; and in-orbit incentives relating to certain satellites; as well as commitments for long-term satellite operating leases and satellite service arrangements. 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 trebled. Further, we cannot estimate the extent to which we may be required in the future to obtain licenses with respect to intellectual property rights held by others and the availability and cost of any such licenses. Various parties have asserted patent and other intellectual property rights with respect to our products and services. We cannot be certain that these persons do not own the rights they claim, that these rights are not valid or that our products and services do not infringe on these rights. Further, we cannot be certain that we would be able to obtain licenses from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our products and services to avoid infringement. Separation Agreement and Share Exchange In connection with DISH Network’s distribution to EchoStar in 2008 of its digital set-top box business, certain infrastructure, and other assets and related liabilities, including certain satellites, uplink and satellite transmission assets and real estate (the “Spin-off”), EchoStar 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, EchoStar assumed certain liabilities that relate to its and our business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar and its subsidiaries will only be liable for their acts or omissions following the Spin-off and DISH Network will indemnify EchoStar and its subsidiaries 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, EchoStar and certain of its subsidiaries entered into the 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 EchoStar and 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 or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. We record an accrual for litigation and other loss contingencies when we determine that a loss is probable and the amount of the loss can be reasonably estimated. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made. There can be no assurance that legal proceedings against us will be resolved in amounts that will not differ from the amounts of our recorded accruals. Legal fees and other costs of defending litigation are charged to expense as incurred. For certain cases, 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 $21.1 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 $28.5 million plus post-judgment interest if not overturned or modified on appeal. Elbit has requested an award of $13.9 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 and HNS filed its appeal brief to the U.S. Court of Appeals for the Federal Circuit on August 1, 2018. We cannot predict with certainty the outcome of the appeal. As of June 30, 2018, we have recorded an accrual of approximately $2.8 million 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.” Realtime generally alleges that the asserted patents are infringed by certain HNS data compression products and services. Realtime is no longer asserting the 992 patent against us. Over April 29, 2016 and May 5, 2016, the defendants filed petitions before the USPTO challenging the validity of the asserted patents. The USPTO instituted proceedings on each of those petitions. The USPTO invalidated the asserted claims of the 513 patent, but Realtime is still asserting this patent against us and may appeal this ruling. The USPTO is still reviewing the 530 patent; however, two of the four claims from that patent asserted against us were invalidated in a separate litigation between Realtime and a third party, which Realtime may appeal. The USPTO did not invalidate the asserted claims of the 908 patent. 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.” In response to petitions filed by third parties, the USPTO has found all remaining asserted claims of the 867 patent to be invalid and certain asserted claims of the 728 patent to not be invalid. The USPTO has instituted proceedings regarding the validity of all asserted claims of the 204 patent. Additional third party petitions challenging the validity of all claims asserted in the 204 and 728 patents are awaiting institution decisions. On February 13, 2018 we filed petitions before the USPTO challenging the validity of all claims asserted against us from the 707 and 204 patents, as well as the one asserted claim of the 728 patent for which the USPTO has not yet instituted a proceeding. These petitions are also awaiting institution decisions at the USPTO. Trial is scheduled for January 21, 2019. Realtime is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. 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, the Company is 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 the Company 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, the Company from time to time receives 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. The Company also indemnifies its directors, officers and employees for certain liabilities that might arise from the performance of their responsibilities for the Company. Additionally, in the normal course of its business, the Company enters into contracts pursuant to which the Company may make a variety of representations and warranties and indemnify the counterparty for certain losses. The Company’s 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 the Company or its officers, directors or employees, the outcomes of which are unknown and not currently predictable or estimable. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 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 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. Costs and income associated with these departments and activities are accounted for in the Corporate and Other column in the tables below or in the reconciliation of EBITDA below. Eliminations of intersegment transactions are included in the Corporate and Other column in the tables 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. Hughes ESS Corporate and Other Consolidated Total (In thousands) For the three months ended June 30, 2018 External revenue $ 426,306 $ 94,904 $ 6,386 $ 527,596 Intersegment revenue $ — $ 521 $ (521 ) $ — Total revenue $ 426,306 $ 95,425 $ 5,865 $ 527,596 EBITDA $ 152,134 $ 82,483 $ 2,621 $ 237,238 Capital expenditures $ 87,511 $ 356 $ — $ 87,867 For the three months ended June 30, 2017 External revenue $ 362,403 $ 97,945 $ 1,917 $ 462,265 Intersegment revenue $ 359 $ 421 $ (780 ) $ — Total revenue $ 362,762 $ 98,366 $ 1,137 $ 462,265 EBITDA $ 110,024 $ 80,465 $ (11,845 ) $ 178,644 Capital expenditures $ 96,529 $ 4,640 $ — $ 101,169 For the six months ended June 30, 2018 External revenue $ 826,765 $ 191,127 $ 12,599 $ 1,030,491 Intersegment revenue $ 359 $ 1,051 $ (1,410 ) $ — Total revenue $ 827,124 $ 192,178 $ 11,189 $ 1,030,491 EBITDA $ 288,847 $ 166,633 $ (3,753 ) $ 451,727 Capital expenditures $ 174,802 $ (76,682 ) $ — $ 98,120 For the six months ended June 30, 2017 External revenue $ 691,013 $ 198,096 $ 3,274 $ 892,383 Intersegment revenue $ 1,069 $ 596 $ (1,665 ) $ — Total revenue $ 692,082 $ 198,692 $ 1,609 $ 892,383 EBITDA $ 210,876 $ 163,528 $ (23,991 ) $ 350,413 Capital expenditures $ 162,196 $ 13,148 $ — $ 175,344 The following table reconciles total consolidated EBITDA to reported Income before income taxes in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss): For the three months ended June 30, For the six months ended June 30, 2018 2017 2018 2017 (In thousands) EBITDA $ 237,238 $ 178,644 $ 451,727 $ 350,413 Interest income and expense, net (49,836 ) (54,290 ) (102,870 ) (108,286 ) Depreciation and amortization (136,708 ) (124,743 ) (270,426 ) (236,963 ) Net income attributable to noncontrolling interests 462 182 842 474 Income before income taxes $ 51,156 $ (207 ) $ 79,273 $ 5,638 Disaggregation of Revenue In the following tables, revenue is disaggregated by segment, primary geographic market and nature of the products and services. Geographic Information The following table disaggregates revenue from customer contracts attributed to North 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, South America and the Middle East. Hughes ESS Corporate and Other Consolidated Total (In thousands) For the three months ended June 30, 2018 North America: U.S. $ 347,575 $ 89,412 $ 1,199 $ 438,186 Canada and Mexico 15,132 5,837 — 20,969 All other 63,599 176 4,666 68,441 Total revenue $ 426,306 $ 95,425 $ 5,865 $ 527,596 For the six months ended June 30, 2018 North America: U.S. $ 668,013 $ 180,153 $ 2,405 $ 850,571 Canada and Mexico 30,714 11,674 — 42,388 All other 128,397 351 8,784 137,532 Total revenue $ 827,124 $ 192,178 $ 11,189 $ 1,030,491 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 three months ended June 30, 2018 Equipment $ 50,341 $ — $ — $ 50,341 Services 310,225 6,890 329 317,444 Design, development and construction services 13,876 — — 13,876 Revenue from sales and services 374,442 6,890 329 381,661 Leasing income 51,864 88,535 5,536 145,935 Total revenue $ 426,306 $ 95,425 $ 5,865 $ 527,596 For the six months ended June 30, 2018 Equipment $ 93,288 $ — $ — $ 93,288 Services 608,010 14,293 704 623,007 Design, development and construction services 30,052 — — 30,052 Revenue from sales and services 731,350 14,293 704 746,347 Leasing income 95,774 177,885 10,485 284,144 Total revenue $ 827,124 $ 192,178 $ 11,189 $ 1,030,491 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | EchoStar We and EchoStar have agreed that we shall have the right, but not the obligation, to receive from EchoStar certain corporate services, including among other things: treasury, tax, accounting and reporting, risk management, cybersecurity, legal, internal audit, human resources, and information technology. These services are generally provided at cost. Effective March 2017, and as a result of the Share Exchange Agreement, we implemented a new methodology for determining the cost of these services. We may terminate a particular service we receive from EchoStar for any reason upon at least 30 days ’ notice. We recorded expenses for services received from EchoStar of $5.2 million and $6.5 million for the three months ended June 30, 2018 and 2017 , respectively, and $9.6 million and $11.5 million for the six months ended June 30, 2018 and 2017 , respectively. In addition, we occupy certain office space in buildings owned or leased by EchoStar and pay a portion of the taxes, insurance, utilities and maintenance of the premises in accordance with the percentage of the space we occupy. We participate in certain of EchoStar’s shared services arrangements for its subsidiaries in the ordinary course of business, including arrangements for payroll, accounts payable and cash management. From time to time in connection with the processing of transactions under these arrangements, we may pay or receive amounts attributable to other domestic subsidiaries of EchoStar. We report net payments on behalf of other subsidiaries in Advances to affiliates, net within current assets and we report net receipts on behalf of other subsidiaries in Advances from affiliates, net within current liabilities in our Condensed Consolidated Balance Sheets. No repayment schedule for these net advances has been determined. EchoStar and certain of its subsidiaries have provided cash advances to certain of our foreign subsidiaries to fund certain expenditures pursuant to loan agreements that mature in 2021 and 2022. Advances under these agreements bear interest at annual rates ranging from one to three percent, subject to periodic adjustment based on the one-year U.S. LIBOR rate. We report amounts payable under these agreements in Advances from affiliates within noncurrent liabilities in our Condensed Consolidated Balance Sheets. Contribution of EchoStar XIX Satellite . On February 1, 2017, EchoStar contributed the EchoStar XIX satellite and assigned the related construction contract with the satellite manufacturer to us. We recorded a $349.3 million increase in Additional paid-in capital, reflecting EchoStar’s $514.4 million carrying amount of the satellite, including capitalized interest that was previously charged to expense in our consolidated financial statements, less related deferred taxes of $165.1 million . EchoStar XXI and EchoStar XXIII Launch Facilitation and Operational Control Agreements. As part of applying for launch licenses for the EchoStar XXI and XXIII satellites through the UK Space Agency, our subsidiary, Hughes Network Systems, Ltd. (“HNS Ltd.”) and a subsidiary of EchoStar, EchoStar Operating L.L.C. (“EOC”), entered into agreements in June 2015 and March 2016 to transfer to HNS Ltd. EOC’s launch service contracts for the EchoStar XXI and EchoStar XXIII satellites, respectively, and to grant HNS Ltd. certain rights to control the in-orbit operations of these satellites. EOC retained ownership of the satellites and agreed to make additional payments to HNS Ltd. for amounts that HNS Ltd. is required to pay under both launch service contracts. In 2016, we recorded additions to Other noncurrent assets, net and corresponding increases in Additional paid-in capital in our Condensed Consolidated Balance Sheet to reflect EOC’s cumulative payments under the launch service contracts prior to the transfer dates and to reflect EOC’s funding of additional cash payments to the launch service provider. The EchoStar XXIII and the EchoStar XXI satellites were successfully launched in March 2017 and June 2017, respectively. We recorded decreases in Other noncurrent assets, net and Additional paid-in capital of $61.8 million and $83.3 million , respectively, representing the carrying amounts of the launch service contracts at the time of launch to reflect the consumption of the contracts’ economic benefits by EOC, the owner of the satellites. Share Exchange Agreement. Prior to consummation of the Share Exchange, EchoStar was required to complete steps necessary for the transferring of certain assets and liabilities to DISH and certain of its subsidiaries. As part of these steps, subsidiaries of EchoStar that, prior to the consummation of the Share Exchange, owned EchoStar’s business of providing online video delivery and satellite video delivery for broadcasters and pay-TV operators, including satellite uplinking/downlinking, transmission services, signal processing, conditional access management and other services and related assets and liabilities were contributed to one of our subsidiaries in consideration for additional shares of HSS’ common stock that were then issued to a subsidiary of EchoStar. Certain data center assets that were included in the contribution of certain assets and liabilities to one of our subsidiaries were not included in the Share Exchange and continue to be owned by one of our subsidiaries and are pledged as collateral to support our obligations under the indentures relating to our 6 1/2% Senior Secured Notes due 2019 (the “2019 Senior Secured Note”) and our 5.250% Senior Secured Notes due 2026 (the “2026 Senior Secured Notes). EchoStar Mobile Limited Service Agreements. Certain of our subsidiaries provide services and lease equipment to subsidiaries of EchoStar to support the business of EchoStar Mobile Limited, a subsidiary of EchoStar that is licensed by the European Union and its member states (“EU”) to provide mobile satellite services and complementary ground component services covering the entire EU using S-band spectrum. Generally, the amounts EchoStar’s subsidiaries pay for these services are based on cost plus a fixed margin. We recorded revenue in Services and other revenue - other of $4.7 million and zero for the three months ended June 30, 2018 and 2017 , respectively, and $8.8 million and zero for the six months ended June 30, 2018 and 2017 , respectively, related to these services. DBS Transponder Lease . EchoStar leases satellite capacity from us on eight DBS transponders on the QuetzSat-1 satellite through November 2021. At such time, EchoStar has certain options to renew the agreement on a year-to year basis through the end of life of the QuetzSat-1 satellite. We recognized revenue in connection with this agreement of approximately $5.8 million for each of the three months ended June 30, 2018 and 2017 , and $11.7 million for each of the six months ended June 30, 2018 and 2017 . As of June 30, 2018 and December 31, 2017 , we had related trade accounts receivable of approximately $5.9 million and $7.6 million , respectively. DISH Network Following the Spin-off, EchoStar and DISH have operated as separate publicly-traded companies. However, prior to the consummation of the Share Exchange on February 28, 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. In addition, a substantial majority of the voting power of the shares of each of EchoStar 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, EchoStar, we and certain other of EchoStar’s subsidiaries and DISH and certain of its subsidiaries entered into certain agreements pursuant to which we and EchoStar obtain certain products, services and rights from DISH Network; DISH Network obtains certain products, services and rights from us and EchoStar; and we and DISH Network indemnify each other against certain liabilities arising from our respective businesses. We and/or EchoStar 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 or in our most recent Form 10-K), 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 . Since the Spin-off, 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 . As part of the Satellite and Tracking Stock Transaction, described below in Other agreements - DISH Network, in March 2014, 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 for five -years to 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. In May 2018, we and DISH Network further amended the agreement to allow DISH Network to place and use certain satellites at the 61.5 west longitude orbital location for backup satellite capacity on an interim basis in the event of certain failures of the EchoStar XVI satellite. 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 February 2013, EchoStar and DISH Network entered into an agreement pursuant to which EchoStar leases certain satellite capacity from DISH Network on five DBS transponders on the QuetzSat-1 satellite. In January 2013, the QuetzSat-1 satellite was moved to the 77 degree west longitude orbital location and DISH Network commenced commercial operations at such location in February 2013. Under the terms of our contractual arrangements with DISH Network, we began leasing satellite capacity to DISH Network on the QuetzSat-1 satellite in February 2013 and will continue leasing such capacity through the remainder of the service term. Unless extended or earlier terminated under the terms and conditions of our agreement with DISH Network for the QuetzSat-1 satellite, the initial service term will expire in November 2021. Upon expiration of the initial service term, DISH Network has the option to renew the agreement for the QuetzSat-1 satellite on a year-to-year basis through the end of life of the QuetzSat-1 satellite. Upon an in-orbit failure or end of life of the QuetzSat-1 satellite, and in certain other circumstances, DISH Network has certain rights to 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”). In November 2016, we and DISH Network amended the TT&C Agreement to extend the term for one year through December 2017. In December 2017, we and DISH Network amended the TT&C Agreement to extend the term for one month through January 2018. In February 2018, we and DISH Network amended the TT&C Agreement 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 . In connection with the Satellite and Tracking Stock Transaction, described below in Other agreements - DISH Network, in February 2014, we amended the TT&C Agreement to cease the provision of TT&C services to DISH Network for the EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV satellites. Effective March 2014, we provide TT&C services for the D-1 and EchoStar XV satellites; however, for the period that we received satellite services on the EchoStar XV satellite from DISH Network, we waived the fees for the TT&C services on the EchoStar XV satellite. Effective August 2016, we provide TT&C services to DISH Network for the EchoStar XVIII satellite. Real Estate Lease. Prior to the Share Exchange, EchoStar leased to DISH Network certain space at 530 EchoStar Drive, Cheyenne, Wyoming. In connection with the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network and contributed a portion to us and we amended the 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 contributed to us for a period ending in December 2031. The rent on a per square foot basis for the lease 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. 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 the completion of the acquisition of all of the outstanding equity of Hughes Communications, Inc. on June 8, 2011, TerreStar and HNS entered into various agreements pursuant to which our Hughes segment provides, among other things, warranty, operations and maintenance and hosting services for TerreStar’s ground-based communications equipment. 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 and will not renew beyond May 2022 unless the parties enter into a new agreement or amend the existing agreement. 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 . Effective October 2012, HNS and dishNET Satellite Broadband L.L.C. (“dishNET”), a wholly-owned subsidiary of DISH, entered into a distribution agreement (the “Distribution Agreement”) pursuant to which dishNET has the right, but not the obligation, to market, sell and distribute the Hughes satellite internet service (the “Hughes service”). dishNET pays HNS a monthly per subscriber wholesale service fee for the Hughes service based upon a subscriber’s service level and based upon certain volume subscription thresholds. The Distribution Agreement also provides that dishNET has the right, but not the obligation, to purchase certain broadband equipment from us to support the sale of the Hughes service. The Distribution Agreement had an initial term of five years with automatic renewal for successive one year terms unless terminated by either party with a written notice at least 180 days before the expiration of the then-current term. In February 2014, HNS and dishNET entered into an amendment to the Distribution Agreement which, among other things, extended the initial term of the Distribution Agreement until March 2024. Upon expiration or termination of the Distribution Agreement, the parties will continue to provide the Hughes service to the then-current dishNET subscribers pursuant to the terms and conditions of the Distribution Agreement. 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 EchoStar’s completion of the acquisition of all of the outstanding equity of Hughes Communications, Inc. on June 8, 2011, DBSD North America and HNS entered into various agreements pursuant to which our Hughes segment provides, among other things, warranty, operations and maintenance and hosting services of DBSD North America’s gateway and ground-based communications equipment. 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 generally has the right to continue to receive warranty services from us on a month-to-month basis until February 2019, unless terminated by DBSD North America upon at least 21 days’ written notice to us, and 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. 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 Broadband L.L.C. (“DISH Broadband”), DISH’s indirect, wholly-owned subsidiary, was selected by the Rural Utilities Service (“RUS”) of the U.S. Department of Agriculture to receive up to approximately $14.1 million in broadband stimulus grant funds. Effective November 2011, HNS and DISH Broadband entered into a RUS Implementation Agreement (the “RUS Agreement”) pursuant to which HNS provided certain portions of the equipment and broadband service used to implement DISH Broadband’s RUS program. While the RUS Agreement expired in June 2013 when the broadband stimulus grant funds were exhausted, HNS is required to continue providing services to DISH Broadband’s customers activated prior to the expiration of the RUS Agreement in accordance with the terms and conditions of the RUS Agreement. General and Administrative Expenses — DISH Network Amended and Restated Professional Services Agreement. In connection with the Spin-off, EchoStar 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, EchoStar and DISH Network agreed that EchoStar and its subsidiaries shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under 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. Additionally, EchoStar and DISH Network agreed that DISH Network would continue to have the right, but not the obligation, to engage EchoStar and its subsidiaries 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 EchoStar and its subsidiaries (previously provided under a services agreement) and other support services. In connection with the consummation of the Share Exchange, EchoStar and DISH amended and restated the Professional Services Agreement (the “Amended and Restated Professional Services Agreement”) to provide that EchoStar and its subsidiaries and DISH Network shall have the right to receive additional services that either EchoStar and its subsidiaries 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. A portion of these costs and expenses have been allocated to us in the manner described above under the caption “EchoStar.” The term of the Amended and Restated Professional Services Agreement is through January 2019 and renews automatically for successive one -year periods thereafter, unless the agreement is terminated earlier by either party upon at least 60 days ’ notice. However, either party 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 Lease from DISH Network. In connection with the Share Exchange, effective March 2017, we sublease 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. The rent on a per square foot basis for the lease is comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the lease, and we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises. 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 and EchoStar 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 $11.4 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 and certain of its subsidiaries entered into the Share Exchange Agreement with DISH and certain of its subsidiaries, pursuant to which, on February 28, 2017, EchoStar and its subsidiaries 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 EchoStar’s EchoStar Technologies businesses and certain other assets. Following consummation of the Share Exchange on February 28, 2017, EchoStar no longer operates 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, EchoStar 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 contains customary representations and warranties by the parties, including representations by EchoStar related to the transferred assets, assumed liabilities and the financial condition of the transfe |
Supplemental Guarantor and Non-
Supplemental Guarantor and Non-Guarantor Financial Information | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Guarantor and Non-Guarantor Financial Information | |
Supplemental Guarantor and Non-Guarantor Financial Information | SUPPLEMENTAL GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION Certain of our wholly-owned subsidiaries (together, the “Guarantor Subsidiaries”) have fully and unconditionally guaranteed, on a joint and several basis, the obligations of our 2019 Senior Secured Notes and 7 5/8% Senior Unsecured Notes due 2021 (the “2021 Senior Unsecured Notes”), which were issued on June 1, 2011, and our 2026 Senior Secured Notes and 6.625% Senior Unsecured Notes due 2016, which were issued on July 27, 2016 (the “2026 Senior Unsecured Notes” and together with the 2026 Senior Secured Notes, the “2026 Notes”). See Note 10 for further information on the 2019 Senior Secured Notes, the 2021 Senior Unsecured Notes and the 2026 Notes. In lieu of separate financial statements of the Guarantor Subsidiaries, accompanying condensed consolidating financial information prepared in accordance with Rule 3-10(f) of Regulation S-X is presented below, including the accompanying condensed balance sheet information, the accompanying condensed statement of operations and comprehensive income (loss) information and the accompanying condensed statement of cash flows information of HSS, the Guarantor Subsidiaries on a combined basis and the non-guarantor subsidiaries of HSS on a combined basis and the eliminations necessary to arrive at the corresponding information of HSS on a consolidated basis. The indentures governing the 2019 Senior Secured Notes, the 2021 Senior Unsecured Notes and the 2026 Notes contain restrictive covenants that, among other things, impose limitations on our ability and the ability of certain of our subsidiaries to pay dividends or make distributions, incur additional debt, make certain investments, create liens or enter into sale and leaseback transactions, merge or consolidate with another company, transfer and sell assets, enter into transactions with affiliates or allow to exist certain restrictions on the ability of certain of our subsidiaries to pay dividends, make distributions, make other payments, or transfer assets to us. June 30, 2018 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 1,439,619 $ 42,385 $ 27,234 $ — $ 1,509,238 Marketable investment securities, at fair value 991,913 1,213 — — 993,126 Trade accounts receivable and contract assets, net — 122,726 64,230 — 186,956 Trade accounts receivable - DISH Network, net — 25,217 486 — 25,703 Inventory — 54,030 27,358 — 81,388 Advances to affiliates, net 7,829 399,924 17,431 (321,553 ) 103,631 Other current assets 109 25,111 34,792 (87 ) 59,925 Total current assets 2,439,470 670,606 171,531 (321,640 ) 2,959,967 Property and equipment, net — 2,371,631 271,033 — 2,642,664 Regulatory authorizations — 465,658 — — 465,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 51,267 — — 51,267 Investments in unconsolidated entities — 28,317 — — 28,317 Investment in subsidiaries 3,249,869 187,349 — (3,437,218 ) — Advances to affiliates 700 86,661 — (87,361 ) — Deferred tax asset 130,728 — 8,229 (130,728 ) 8,229 Other noncurrent assets, net — 228,965 10,708 — 239,673 Total assets $ 5,820,767 $ 4,594,627 $ 461,501 $ (3,976,947 ) $ 6,899,948 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 85,524 $ 11,592 $ — $ 97,116 Trade accounts payable - DISH Network — 445 — — 445 Current portion of long-term debt and capital lease obligations 985,773 37,888 4,458 — 1,028,119 Advances from affiliates, net 63,264 185,102 73,958 (321,553 ) 771 Accrued expenses and other 45,723 132,295 43,259 (87 ) 221,190 Total current liabilities 1,094,760 441,254 133,267 (321,640 ) 1,347,641 Long-term debt and capital lease obligations, net 2,383,275 207,540 1,359 — 2,592,174 Deferred tax liabilities, net — 594,493 957 (130,728 ) 464,722 Advances from affiliates — — 120,886 (87,361 ) 33,525 Other non-current liabilities — 101,884 2,405 — 104,289 Total HSS shareholders’ equity (deficit) 2,342,732 3,249,456 187,762 (3,437,218 ) 2,342,732 Noncontrolling interests — — 14,865 — 14,865 Total liabilities and shareholders’ equity (deficit) $ 5,820,767 $ 4,594,627 $ 461,501 $ (3,976,947 ) $ 6,899,948 December 31, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 1,746,878 $ 42,373 $ 33,310 $ — $ 1,822,561 Marketable investment securities, at fair value 454,500 1,102 — — 455,602 Trade accounts receivable and contract assets, net — 133,735 63,105 — 196,840 Trade accounts receivable - DISH Network, net — 38,286 355 — 38,641 Inventory — 59,711 23,884 — 83,595 Advances to affiliates, net 119,605 229,488 7,313 (241,548 ) 114,858 Other current assets 64 98,890 31,788 (401 ) 130,341 Total current assets 2,321,047 603,585 159,755 (241,949 ) 2,842,438 Property and equipment, net — 2,459,703 293,395 — 2,753,098 Regulatory authorizations — 465,658 — — 465,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 58,582 — — 58,582 Investments in unconsolidated entities — 30,587 — — 30,587 Investment in subsidiaries 3,260,790 204,208 — (3,464,998 ) — Advances to affiliates 700 80,744 — (81,444 ) — Deferred tax asset 110,546 — 3,700 (110,546 ) 3,700 Other noncurrent assets, net — 185,839 13,275 — 199,114 Total assets $ 5,693,083 $ 4,593,079 $ 470,125 $ (3,898,937 ) $ 6,857,350 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 82,300 $ 20,516 $ — $ 102,816 Trade accounts payable - DISH Network — 3,769 — — 3,769 Current portion of long-term debt and capital lease obligations — 35,886 4,745 — 40,631 Advances from affiliates, net — 185,161 56,864 (241,548 ) 477 Accrued expenses and other 43,518 145,362 46,748 (401 ) 235,227 Total current liabilities 43,518 452,478 128,873 (241,949 ) 382,920 Long-term debt and capital lease obligations, net 3,365,143 226,997 2,073 — 3,594,213 Deferred tax liabilities, net — 549,217 960 (110,546 ) 439,631 Advances from affiliates — — 115,159 (81,444 ) 33,715 Other non-current liabilities — 104,249 3,378 — 107,627 Total HSS shareholders’ equity (deficit) 2,284,422 3,260,138 204,860 (3,464,998 ) 2,284,422 Noncontrolling interests — — 14,822 — 14,822 Total liabilities and shareholders’ equity (deficit) $ 5,693,083 $ 4,593,079 $ 470,125 $ (3,898,937 ) $ 6,857,350 For the Three Months Ended June 30, 2018 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 96,653 $ 487 $ — $ 97,140 Services and other revenue - other — 331,875 57,379 (9,139 ) 380,115 Equipment revenue — 53,643 4,557 (7,859 ) 50,341 Total revenue — 482,171 62,423 (16,998 ) 527,596 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 122,259 36,509 (8,545 ) 150,223 Cost of sales - equipment (exclusive of depreciation and amortization) — 46,217 3,539 (7,891 ) 41,865 Selling, general and administrative expenses — 82,477 11,460 (562 ) 93,375 Research and development expenses — 6,647 — — 6,647 Depreciation and amortization — 124,249 12,459 — 136,708 Total costs and expenses — 381,849 63,967 (16,998 ) 428,818 Operating income — 100,322 (1,544 ) — 98,778 Other Income (Expense): Interest income 13,768 1,609 508 (1,599 ) 14,286 Interest expense, net of amounts capitalized (57,479 ) (6,574 ) (1,668 ) 1,599 (64,122 ) Gains (losses) on investments, net — 509 — — 509 Equity in earnings of unconsolidated affiliate — 1,238 — — 1,238 Equity in earnings (losses) of subsidiaries, net 74,180 (8,161 ) — (66,019 ) — Other, net 3 9,489 (9,025 ) — 467 Total other income (expense), net 30,472 (1,890 ) (10,185 ) (66,019 ) (47,622 ) Income (loss) before income taxes 30,472 98,432 (11,729 ) (66,019 ) 51,156 Income tax benefit (provision) 9,759 (24,103 ) 3,881 — (10,463 ) Net income (loss) 40,231 74,329 (7,848 ) (66,019 ) 40,693 Less: Net income attributable to noncontrolling interests — — 462 — 462 Net income (loss) attributable to HSS $ 40,231 $ 74,329 $ (8,310 ) $ (66,019 ) $ 40,231 Comprehensive Income (Loss): Net income (loss) $ 40,231 $ 74,329 $ (7,848 ) $ (66,019 ) $ 40,693 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (32,314 ) — (32,314 ) Unrealized gains (losses) on available-for-sale securities and other 470 — (141 ) — 329 Realized gains on available-for-sale securities in net income (3 ) — — — (3 ) Equity in other comprehensive income (loss) of subsidiaries, net (31,870 ) (31,870 ) — 63,740 — Total other comprehensive income (loss), net of tax (31,403 ) (31,870 ) (32,455 ) 63,740 (31,988 ) Comprehensive income (loss) 8,828 42,459 (40,303 ) (2,279 ) 8,705 Less: Comprehensive loss attributable to noncontrolling interests — — (123 ) — (123 ) Comprehensive income (loss) attributable to HSS $ 8,828 $ 42,459 $ (40,180 ) $ (2,279 ) $ 8,828 For the Three Months Ended June 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 110,388 $ 533 $ — $ 110,921 Services and other revenue - other — 248,361 43,611 (6,917 ) 285,055 Equipment revenue — 81,831 5,033 (20,575 ) 66,289 Total revenue — 440,580 49,177 (27,492 ) 462,265 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 112,989 29,941 (5,656 ) 137,274 Cost of sales - equipment (exclusive of depreciation and amortization) — 70,297 4,532 (21,167 ) 53,662 Selling, general and administrative expenses — 75,035 11,749 (669 ) 86,115 Research and development expenses — 7,437 — — 7,437 Depreciation and amortization — 116,193 8,550 — 124,743 Total costs and expenses — 381,951 54,772 (27,492 ) 409,231 Operating income — 58,629 (5,595 ) — 53,034 Other Income (Expense): Interest income 6,733 231 321 (199 ) 7,086 Interest expense, net of amounts capitalized (57,336 ) (4,797 ) 558 199 (61,376 ) Gains (losses) on investments, net — 1,632 — — 1,632 Equity in earnings of unconsolidated affiliate — 1,639 — — 1,639 Equity in earnings (losses) of subsidiaries, net 33,078 (4,438 ) — (28,640 ) — Other, net — (702 ) (1,520 ) — (2,222 ) Total other income (expense), net (17,525 ) (6,435 ) (641 ) (28,640 ) (53,241 ) Income (loss) before income taxes (17,525 ) 52,194 (6,236 ) (28,640 ) (207 ) Income tax benefit (provision) 17,645 (19,026 ) 1,890 — 509 Net income (loss) 120 33,168 (4,346 ) (28,640 ) 302 Less: Net income attributable to noncontrolling interests — — 182 — 182 Net income (loss) attributable to HSS $ 120 $ 33,168 $ (4,528 ) $ (28,640 ) $ 120 Comprehensive Income (Loss): Net income (loss) $ 120 $ 33,168 $ (4,346 ) $ (28,640 ) $ 302 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (6,736 ) — (6,736 ) Unrealized gains (losses) on available-for-sale securities and other (21 ) 86 (76 ) — (11 ) Equity in other comprehensive income (loss) of subsidiaries, net (6,726 ) (6,812 ) — 13,538 — Total other comprehensive income (loss), net of tax (6,747 ) (6,726 ) (6,812 ) 13,538 (6,747 ) Comprehensive income (loss) (6,627 ) 26,442 (11,158 ) (15,102 ) (6,445 ) Less: Comprehensive income attributable to noncontrolling interests — — 182 — 182 Comprehensive income (loss) attributable to HSS $ (6,627 ) $ 26,442 $ (11,340 ) $ (15,102 ) $ (6,627 ) For the Six Months Ended June 30, 2018 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 196,740 $ 1,014 $ — $ 197,754 Services and other revenue - other — 643,983 114,455 (18,989 ) 739,449 Equipment revenue — 100,052 9,164 (15,928 ) 93,288 Total revenue — 940,775 124,633 (34,917 ) 1,030,491 Costs and expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 241,585 74,235 (17,942 ) 297,878 Cost of sales - equipment (exclusive of depreciation and amortization) — 89,860 7,004 (15,928 ) 80,936 Selling, general and administrative expenses — 165,869 23,203 (1,047 ) 188,025 Research and development expenses — 13,784 — — 13,784 Depreciation and amortization — 245,588 24,838 — 270,426 Total costs and expenses — 756,686 129,280 (34,917 ) 851,049 Operating income — 184,089 (4,647 ) — 179,442 Other income (expense): Interest income 24,529 1,925 1,009 (1,798 ) 25,665 Interest expense, net of amounts capitalized (114,924 ) (13,530 ) (1,879 ) 1,798 (128,535 ) Gains (losses) on investments, net — 117 — — 117 Equity in earnings of unconsolidated affiliate — 2,730 — — 2,730 Equity in earnings (losses) of subsidiaries, net 130,439 (11,858 ) — (118,581 ) — Other, net 6 9,392 (9,544 ) — (146 ) Total other income (expense), net 40,050 (11,224 ) (10,414 ) (118,581 ) (100,169 ) Income (loss) before income taxes 40,050 172,865 (15,061 ) (118,581 ) 79,273 Income tax benefit (provision) 20,182 (42,187 ) 3,806 — (18,199 ) Net income (loss) 60,232 130,678 (11,255 ) (118,581 ) 61,074 Less: Net income attributable to noncontrolling interests — — 842 — 842 Net income (loss) attributable to HSS $ 60,232 $ 130,678 $ (12,097 ) $ (118,581 ) $ 60,232 Comprehensive income (loss): Net income (loss) $ 60,232 $ 130,678 $ (11,255 ) $ (118,581 ) $ 61,074 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (30,414 ) — (30,414 ) Unrealized gains (losses) on available-for-sale securities and other 159 — (241 ) — (82 ) Recognition of realized gains (losses) on available-for-sale securities in net income (3 ) — — — (3 ) Equity in other comprehensive income (loss) of subsidiaries, net (29,856 ) (29,856 ) — 59,712 — Total other comprehensive income (loss), net of tax (29,700 ) (29,856 ) (30,655 ) 59,712 (30,499 ) Comprehensive income (loss) 30,532 100,822 (41,910 ) (58,869 ) 30,575 Less: Comprehensive income attributable to noncontrolling interests — — 43 — 43 Comprehensive income (loss) attributable to HSS $ 30,532 $ 100,822 $ (41,953 ) $ (58,869 ) $ 30,532 For the Six Months Ended June 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 221,692 $ 719 $ — $ 222,411 Services and other revenue - other — 489,733 77,974 (12,429 ) 555,278 Equipment revenue — 133,066 9,710 (28,082 ) 114,694 Total revenue — 844,491 88,403 (40,511 ) 892,383 Costs and expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 222,938 59,651 (11,011 ) 271,578 Cost of sales - equipment (exclusive of depreciation and amortization) — 114,704 7,806 (28,027 ) 94,483 Selling, general and administrative expenses — 140,720 21,246 (1,473 ) 160,493 Research and development expenses — 15,142 — — 15,142 Depreciation and amortization — 221,640 15,323 — 236,963 Total costs and expenses — 715,144 104,026 (40,511 ) 778,659 Operating income — 129,347 (15,623 ) — 113,724 Other income (expense): Interest income 12,223 433 669 (398 ) 12,927 Interest expense, net of amounts capitalized (114,635 ) (8,019 ) 1,043 398 (121,213 ) Gains (losses) on investments, net — (1,575 ) — — (1,575 ) Equity in earnings of unconsolidated affiliate — 3,350 — — 3,350 Equity in earnings (losses) of subsidiaries, net 74,937 (10,639 ) — (64,298 ) — Other, net — (840 ) (735 ) — (1,575 ) Total other income (expense), net (27,475 ) (17,290 ) 977 (64,298 ) (108,086 ) Income (loss) before income taxes (27,475 ) 112,057 (14,646 ) (64,298 ) 5,638 Income tax benefit (provision) 36,730 (36,882 ) 4,243 — 4,091 Net income (loss) 9,255 75,175 (10,403 ) (64,298 ) 9,729 Less: Net income attributable to noncontrolling interests — — 474 — 474 Net income (loss) attributable to HSS $ 9,255 $ 75,175 $ (10,877 ) $ (64,298 ) $ 9,255 Comprehensive income (loss): Net income (loss) $ 9,255 $ 75,175 $ (10,403 ) $ (64,298 ) $ 9,729 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 5,385 — 5,385 Unrealized gains (losses) on available-for-sale securities and other (48 ) (1,488 ) 25 — (1,511 ) Recognition of other-than-temporary loss on available-for-sale securities in net income (loss) — 3,298 — — 3,298 Equity in other comprehensive income (loss) of subsidiaries, net 7,220 5,410 — (12,630 ) — Total other comprehensive income (loss), net of tax 7,172 7,220 5,410 (12,630 ) 7,172 Comprehensive income (loss) 16,427 82,395 (4,993 ) (76,928 ) 16,901 Less: Comprehensive income attributable to noncontrolling interests — — 474 — 474 Comprehensive income (loss) attributable to HSS $ 16,427 $ 82,395 $ (5,467 ) $ (76,928 ) $ 16,427 For the Six Months Ended June 30, 2018 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 60,232 $ 130,678 $ (11,255 ) $ (118,581 ) $ 61,074 Adjustments to reconcile net income (loss) to net cash flows from operating activities (143,241 ) 305,364 19,347 118,581 300,051 Net cash flows from operating activities (83,009 ) 436,042 8,092 — 361,125 Cash flows from investing activities: Purchases of marketable investment securities (1,098,527 ) — — — (1,098,527 ) Sales and maturities of marketable investment securities 560,194 — — — 560,194 Expenditures for property and equipment — (148,208 ) (27,436 ) — (175,644 ) Refunds and other receipts related to property and equipment — 77,524 — — 77,524 Expenditures for externally marketed software — (15,000 ) — — (15,000 ) Payment for satellite launch services — — (7,125 ) — (7,125 ) Distributions (contributions) and advances from (to) subsidiaries, net 306,958 (23,215 ) — (283,743 ) — Net cash flows from investing activities (231,375 ) (108,899 ) (34,561 ) (283,743 ) (658,578 ) Cash flows from financing activities: Contributions (distributions) and advances (to) from parent, net — (306,958 ) 23,215 283,743 — Repayment of debt and capital lease obligations — (17,455 ) (962 ) — (18,417 ) Capital contribution from EchoStar 7,125 — — — 7,125 Payment of in-orbit incentive obligations — (2,718 ) — — (2,718 ) Net cash flows from financing activities 7,125 (327,131 ) 22,253 283,743 (14,010 ) Effect of exchange rates on cash and cash equivalents — — (1,865 ) — (1,865 ) Net increase (decrease) in cash and cash equivalents, including restricted amounts (307,259 ) 12 (6,081 ) — (313,328 ) Cash and cash equivalents, including restricted amounts, beginning of period 1,746,878 42,373 34,103 — 1,823,354 Cash and cash equivalents, including restricted amounts, end of period $ 1,439,619 $ 42,385 $ 28,022 $ — $ 1,510,026 For the Six Months Ended June 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 9,255 $ 75,175 $ (10,403 ) $ (64,298 ) $ 9,729 Adjustments to reconcile net income (loss) to net cash flows from operating activities 22,394 80,566 12,257 64,298 179,515 Net cash flows from operating activities 31,649 155,741 1,854 — 189,244 Cash flows from investing activities: Purchases of marketable investment securities (992 ) — — — (992 ) Sales and maturities of marketable investment securities 118,648 — — — 118,648 Expenditures for property and equipment — (141,385 ) (33,959 ) — (175,344 ) Expenditures for externally marketed software — (17,119 ) — — (17,119 ) Investment in subsidiary (36,000 ) (39,025 ) — 75,025 — Net cash flows from investing activities 81,656 (197,529 ) (33,959 ) 75,025 (74,807 ) Cash flows from financing activities: Proceeds from capital contributions from parent — 36,000 39,025 (75,025 ) — Repayment of debt and capital lease obligations — (15,648 ) (1,463 ) — (17,111 ) Advances from affiliates — — (36 ) — (36 ) Payment of in-orbit incentive obligations — (3,194 ) — — (3,194 ) Other, net 426 — 886 — 1,312 Net cash flows from financing activities 426 17,158 38,412 (75,025 ) (19,029 ) Effect of exchange rates on cash and cash equivalents — — 925 — 925 Net increase (decrease) in cash and cash equivalents, including restricted amounts 113,731 (24,630 ) 7,232 — 96,333 Cash and cash equivalents, including restricted amounts, beginning of period 1,991,949 53,905 25,833 — 2,071,687 Cash and cash equivalents, including restricted amounts, end of period $ 2,105,680 $ 29,275 $ 33,065 $ — $ 2,168,020 |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Jun. 30, 2018 | |
Text Block [Abstract] | |
Supplemental Financial Information | SUPPLEMENTAL FINANCIAL INFORMATION Noncash Investing and Financing Activities For The Six Months Ended June 30, 2018 2017 Property and equipment financed under capital lease obligations $ 123 $ 8,189 Decrease in capital expenditures included in accounts payable, net $ (1,158 ) $ (2,120 ) Transfer of launch service contracts from (to) EchoStar $ — $ (145,114 ) Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1) $ — $ 219,662 Noncash net assets exchanged for HSS Tracking Stock (Note 1) $ — $ (190,221 ) Capitalized in-orbit incentive obligations $ — $ 31,000 Contribution of EchoStar XIX satellite $ — $ 514,448 Restricted Cash and Cash Equivalents The beginning and ending balances of cash and cash equivalents presented in our Condensed Consolidated Statements of Cash Flows included restricted cash and cash equivalents of $0.8 million and $0.8 million , respectively, for the six months ended June 30, 2018 and $0.7 million and $0.8 million , respectively, for the six months ended June 30, 2017 . These amounts are included in Other noncurrent assets, net in our Condensed Consolidated Balance Sheets. Fair Value of In-Orbit Incentives As of June 30, 2018 and December 31, 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 $96.6 million and $99.3 million , respectively. Contract Acquisition and Fulfillment Costs Unamortized contract acquisition costs totaled $103.6 million as of June 30, 2018 and related amortization expense totaled $20.7 million and $40.7 million for the three and six months ended June 30, 2018 , respectively. Unamortized contract fulfillment costs totaled $3.3 million as of June 30, 2018 and related amortization expense was de minimis for the three and six months ended June 30, 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 three months For the six months 2018 2017 2018 2017 (In thousands) Cost of sales $ 6,290 $ 6,785 $ 12,888 $ 13,686 Research and development $ 6,647 $ 7,437 $ 13,784 $ 15,142 Capitalized Software Costs As of June 30, 2018 and December 31, 2017 , the net carrying amount of externally marketed software was $91.9 million and $88.1 million , respectively, of which $28.3 million and $19.6 million , respectively, is under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $7.9 million and $6.3 million for the three months ended June 30, 2018 and 2017 , respectively, and $15.0 million and $17.1 million for the six months ended June 30, 2018 and 2017 , respectively. We recorded amortization expense relating to the development of externally marketed software of $5.6 million and $5.3 million for the three months ended June 30, 2018 and 2017 , respectively, and $11.1 million and $8.6 million for the six months ended June 30, 2018 and 2017 , respectively. The weighted average useful life of our externally marketed software was approximately four years as of June 30, 2018 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information and notes required for complete financial statements prepared in conformity with U.S. GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the consolidated financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2017 |
Principles of Consolidation | Principles of Consolidation 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 shareholders’ equity for the portion of the entity’s equity attributed to the noncontrolling ownership interests. All significant intercompany balances and transactions have been eliminated in consolidation. |
Reclassification, Policy [Policy Text Block] | Reclassification Certain prior period amounts have been reclassified to conform with the current period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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 EchoStar’s 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. 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 10 ) are based on quoted market prices in less active markets and are categorized as Level 2 measurements. 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 six months ended June 30, 2018 and 2017 . As of June 30, 2018 and December 31, 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, Policy [Policy Text Block] | Revenue Recognition Overview We account for our sales and services revenue in accordance with Accounting Standards Codification 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). 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 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 generally 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 generally 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 generally 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 our input method, we recognize the transaction price as revenue based on the ratio of costs incurred to estimated total costs at completion. Under our 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 service operations through leasing arrangements and video delivery services on a full-time and occasional-use basis to DISH Network, government service providers, internet service providers, broadcast news organizations, programmers 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 Cost, Policy [Policy Text Block] | Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales at the time of shipment. |
Receivables, Policy [Policy Text Block] | 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 accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make 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 contract assets is included in Selling, general and administrative expenses |
Contract Asset | 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 Condensed 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 | Contract liabilities consist of advance payments and billings in excess of revenue recognized under customer contracts and is included in Contract liabilities or Other noncurrent liabilities in our Condensed 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 we have transferred control of the goods or services to the customer and all revenue recognition criteria have been met. |
Revenue Recognition, Customer Acquisitions [Policy Text Block] | 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 Condensed Consolidated Balance Sheets and related amortization expense is included in Selling, general and administrative expenses |
Contract Fulfillment Costs | Contract Fulfillment Costs We recognize costs to fulfill a contract as an asset when the costs relate directly to a 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 Condensed Consolidated Balance Sheets and related amortization expense is included in Cost of sales - services and other |
Research and Development Expense | 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 order. In such instances, the amounts for these customer funded development efforts are included in cost of sales. |
Capitalized Software Costs | Costs related to the procurement and development of software for internal-use and externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years . Capitalized costs of internal-use software are included in Property and equipment, net and capitalized costs of externally marketed software are included in Other noncurrent assets, net |
Marketable Securities, Policy | 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 Condensed Consolidated Statements of Operations and 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We use the first-in, first out method to determine the cost basis on sales of debt securities. Interest income from debt securities is reported in Interest income in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We could realize proceeds from certain investments prior to their contractual maturity if we actually 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, thus establishing a new cost basis for the investment. Additionally, from time to time we make strategic investments in corporate debt securities. We may elect to account for these investments using the fair value option when it reduces accounting complexity. When we have made this election, we recognize periodic changes in fair value of these investments in Gains (losses) on investments, net in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Interest income from these securities is reported in Interest income in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). 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 Condensed Consolidated Statements of Operations and 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We used the first in, first out 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We recognize dividend income on equity securities on the ex-dividend date and report such income in Other, net |
Investment 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. We use the equity method to account for such investments when we have the ability to significantly influence the operating decisions of the investee. 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. Our investments in unconsolidated entities that are accounted for using the equity method are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in Equity in earnings of unconsolidated affiliate in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). 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 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and include the intra-entity profit eliminations within Equity in earnings of unconsolidated affiliate . 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 earnings. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements 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 of $ 18.2 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 (See Contract Acquisition and Fulfillment Costs above). 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 assets on our Condensed Consolidated Balance Sheet and the costs generally are recognized as expenses over a longer period of time in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The adoption of the New Revenue Standard by one of our unconsolidated entities 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 $0.4 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 Condensed 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. The cumulative effects of changes to the impacted line items on our Condensed Consolidated Balance Sheet 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 $ 91,544 $ 533 $ — $ 92,077 Other noncurrent assets, net $ 202,814 $ 22,545 $ — $ 225,359 Total assets $ 6,857,350 $ 15,975 $ — $ 6,873,325 Liabilities: Contract liabilities $ 65,959 $ (1,542 ) $ — $ 64,417 Accrued expenses and other $ 77,312 $ 255 $ — $ 77,567 Deferred tax liabilities, net $ 439,631 $ 3,122 $ — $ 442,753 Other noncurrent liabilities $ 107,627 $ (4,068 ) $ — $ 103,559 Total liabilities $ 4,558,106 $ (2,233 ) $ — $ 4,555,873 Shareholders’ Equity: Accumulated other comprehensive income (loss) $ (52,822 ) $ — $ 433 $ (52,389 ) Accumulated earnings (losses) $ 582,683 $ 18,208 $ (433 ) $ 600,458 Total shareholders’ equity $ 2,299,244 $ 18,208 $ — $ 2,317,452 Total liabilities and shareholders’ equity $ 6,857,350 $ 15,975 $ — $ 6,873,325 Our adoption of these standards impacted the referenced line items on our Condensed Consolidated Balance Sheet, Statement of Operations and Statements of Comprehensive Income (Loss) as follows: As of June 30, 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 $ 186,956 $ 7,129 $ — $ 194,085 Other current assets $ 15,887 $ (533 ) $ — $ 15,354 Other noncurrent assets, net $ 247,902 $ (29,878 ) $ — $ 218,024 Total assets $ 6,899,948 $ (23,282 ) $ — $ 6,876,666 Liabilities: Contract liabilities $ 72,776 $ 978 $ — $ 73,754 Accrued expenses and other $ 60,990 $ (255 ) $ — $ 60,735 Deferred tax liabilities, net $ 464,722 $ (4,297 ) $ — $ 460,425 Other noncurrent liabilities $ 104,289 $ 2,414 $ — $ 106,703 Total liabilities $ 4,542,351 $ (1,160 ) $ — $ 4,541,191 Shareholders’ Equity: Accumulated other comprehensive loss $ (82,089 ) $ — $ 505 $ (81,584 ) Accumulated earnings $ 660,690 $ (22,122 ) $ (505 ) $ 638,063 Total shareholders’ equity $ 2,357,597 $ (22,122 ) $ — $ 2,335,475 Total liabilities and shareholders’ equity $ 6,899,948 $ (23,282 ) $ — $ 6,876,666 For the three months ended June 30, 2018 As Reported Adjustments Due to the Balances If We Had Not Adopted the New Standards Statement of Operations and Comprehensive Income New Revenue Standard New Investment Standard (In thousands) Revenue: Services and other revenue - other $ 380,115 $ 808 $ — $ 380,923 Total revenue $ 527,596 $ 808 $ — $ 528,404 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) $ 150,223 $ 1,548 $ — $ 151,771 Selling, general and administrative expenses $ 93,375 $ 2,434 $ — $ 95,809 Total costs and expenses $ 428,818 $ 3,982 $ — $ 432,800 Operating income $ 98,778 $ (3,174 ) $ — $ 95,604 Other income (expense): Interest expense, net of amounts capitalized $ (64,122 ) $ 126 $ — $ (63,996 ) Gains (losses) on investments, net $ 509 $ — $ (505 ) $ 4 Total other expense, net $ (47,622 ) $ 126 $ (505 ) $ (48,001 ) Income before income taxes $ 51,156 $ (3,048 ) $ (505 ) $ 47,603 Income tax provision $ (10,463 ) $ 794 $ — $ (9,669 ) Net income $ 40,693 $ (2,254 ) $ (505 ) $ 37,934 Net income attributable to HSS $ 40,231 $ (2,254 ) $ (505 ) $ 37,472 Comprehensive income Net income $ 40,693 $ (2,254 ) $ (505 ) $ 37,934 Other comprehensive income (loss), net of tax: Unrealized gains on available-for-sale securities and other $ 329 $ — $ 505 $ 834 Total other comprehensive income, net of tax $ (31,988 ) $ — $ 505 $ (31,483 ) Comprehensive income $ 8,705 $ (2,254 ) $ — $ 6,451 Comprehensive income attributable to HSS $ 8,828 $ (2,254 ) $ — $ 6,574 For the six months ended June 30, 2018 As Reported Adjustments Due to the Balances If We Had Not Adopted the New Standards Statement of Operations and Comprehensive Income New Revenue Standard New Investment Standard (In thousands) Revenue: Services and other revenue - other $ 739,449 $ 2,026 $ — $ 741,475 Total revenue $ 1,030,491 $ 2,026 $ — $ 1,032,517 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) $ 297,878 $ 2,477 $ — $ 300,355 Selling, general and administrative expenses $ 188,025 $ 4,855 $ — $ 192,880 Total costs and expenses $ 851,049 $ 7,332 $ — $ 858,381 Operating income $ 179,442 $ (5,306 ) $ — $ 174,136 Other income (expense): Interest expense, net of amounts capitalized $ (128,535 ) $ 218 $ — $ (128,317 ) Gains (losses) on investments, net $ 117 $ — $ (938 ) $ (821 ) Total other expense, net $ (100,169 ) $ 218 $ (938 ) $ (100,889 ) Income before income taxes $ 79,273 $ (5,088 ) $ (938 ) $ 73,247 Income tax provision $ (18,199 ) $ 1,175 $ — $ (17,024 ) Net income $ 61,074 $ (3,913 ) $ (938 ) $ 56,223 Net income attributable to HSS $ 60,232 $ (3,913 ) $ (938 ) $ 55,381 Comprehensive income Net income $ 61,074 $ (3,913 ) $ (938 ) $ 56,223 Other comprehensive income (loss), net of tax: Unrealized losses on available-for-sale securities and other $ (82 ) $ — $ 110 $ 28 Other-than-temporary impairment loss on available-for-sale securities in net income $ — $ — $ 828 $ 828 Total other comprehensive income, net of tax $ (30,499 ) $ — $ 938 $ (29,561 ) Comprehensive income $ 30,575 $ (3,913 ) $ — $ 26,662 Comprehensive income attributable to HSS $ 30,532 $ (3,913 ) $ — $ 26,619 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 the 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 Condensed 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 Condensed 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. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842) . This standard requires lessees to recognize assets and liabilities for all leases with lease terms more than 12 months, including leases classified as operating leases. The standard also modifies the definition of a lease and the criteria for classifying leases as operating leases or finance leases. ASU No. 2016-02 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. We plan to adopt the new standard as of January 1, 2019. As amended in July 2018, the new standard may be applied either on a modified retrospective basis to the earliest period presented in our consolidated financial statements or as of the adoption date without restating prior periods. The new standard provides certain practical expedients that we may elect to apply on the adoption date. We continue to evaluate the impact of the new standard and available ad option methods on our consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments , which introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments rather than incurred losses. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU 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 assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities . This update shortens the amortization period of premiums on certain purchased callable debt securities to the earliest call date, effectively reducing interest income on such securities prior to the earliest call date. ASU No. 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. We are assessing the impact of adopting this new accounting standard on our consolidated financial statements and related disclosures. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | For the three months ended June 30, 2018 As Reported Adjustments Due to the Balances If We Had Not Adopted the New Standards Statement of Operations and Comprehensive Income New Revenue Standard New Investment Standard (In thousands) Revenue: Services and other revenue - other $ 380,115 $ 808 $ — $ 380,923 Total revenue $ 527,596 $ 808 $ — $ 528,404 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) $ 150,223 $ 1,548 $ — $ 151,771 Selling, general and administrative expenses $ 93,375 $ 2,434 $ — $ 95,809 Total costs and expenses $ 428,818 $ 3,982 $ — $ 432,800 Operating income $ 98,778 $ (3,174 ) $ — $ 95,604 Other income (expense): Interest expense, net of amounts capitalized $ (64,122 ) $ 126 $ — $ (63,996 ) Gains (losses) on investments, net $ 509 $ — $ (505 ) $ 4 Total other expense, net $ (47,622 ) $ 126 $ (505 ) $ (48,001 ) Income before income taxes $ 51,156 $ (3,048 ) $ (505 ) $ 47,603 Income tax provision $ (10,463 ) $ 794 $ — $ (9,669 ) Net income $ 40,693 $ (2,254 ) $ (505 ) $ 37,934 Net income attributable to HSS $ 40,231 $ (2,254 ) $ (505 ) $ 37,472 Comprehensive income Net income $ 40,693 $ (2,254 ) $ (505 ) $ 37,934 Other comprehensive income (loss), net of tax: Unrealized gains on available-for-sale securities and other $ 329 $ — $ 505 $ 834 Total other comprehensive income, net of tax $ (31,988 ) $ — $ 505 $ (31,483 ) Comprehensive income $ 8,705 $ (2,254 ) $ — $ 6,451 Comprehensive income attributable to HSS $ 8,828 $ (2,254 ) $ — $ 6,574 For the six months ended June 30, 2018 As Reported Adjustments Due to the Balances If We Had Not Adopted the New Standards Statement of Operations and Comprehensive Income New Revenue Standard New Investment Standard (In thousands) Revenue: Services and other revenue - other $ 739,449 $ 2,026 $ — $ 741,475 Total revenue $ 1,030,491 $ 2,026 $ — $ 1,032,517 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) $ 297,878 $ 2,477 $ — $ 300,355 Selling, general and administrative expenses $ 188,025 $ 4,855 $ — $ 192,880 Total costs and expenses $ 851,049 $ 7,332 $ — $ 858,381 Operating income $ 179,442 $ (5,306 ) $ — $ 174,136 Other income (expense): Interest expense, net of amounts capitalized $ (128,535 ) $ 218 $ — $ (128,317 ) Gains (losses) on investments, net $ 117 $ — $ (938 ) $ (821 ) Total other expense, net $ (100,169 ) $ 218 $ (938 ) $ (100,889 ) Income before income taxes $ 79,273 $ (5,088 ) $ (938 ) $ 73,247 Income tax provision $ (18,199 ) $ 1,175 $ — $ (17,024 ) Net income $ 61,074 $ (3,913 ) $ (938 ) $ 56,223 Net income attributable to HSS $ 60,232 $ (3,913 ) $ (938 ) $ 55,381 Comprehensive income Net income $ 61,074 $ (3,913 ) $ (938 ) $ 56,223 Other comprehensive income (loss), net of tax: Unrealized losses on available-for-sale securities and other $ (82 ) $ — $ 110 $ 28 Other-than-temporary impairment loss on available-for-sale securities in net income $ — $ — $ 828 $ 828 Total other comprehensive income, net of tax $ (30,499 ) $ — $ 938 $ (29,561 ) Comprehensive income $ 30,575 $ (3,913 ) $ — $ 26,662 Comprehensive income attributable to HSS $ 30,532 $ (3,913 ) $ — $ 26,619 The cumulative effects of changes to the impacted line items on our Condensed Consolidated Balance Sheet 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 $ 91,544 $ 533 $ — $ 92,077 Other noncurrent assets, net $ 202,814 $ 22,545 $ — $ 225,359 Total assets $ 6,857,350 $ 15,975 $ — $ 6,873,325 Liabilities: Contract liabilities $ 65,959 $ (1,542 ) $ — $ 64,417 Accrued expenses and other $ 77,312 $ 255 $ — $ 77,567 Deferred tax liabilities, net $ 439,631 $ 3,122 $ — $ 442,753 Other noncurrent liabilities $ 107,627 $ (4,068 ) $ — $ 103,559 Total liabilities $ 4,558,106 $ (2,233 ) $ — $ 4,555,873 Shareholders’ Equity: Accumulated other comprehensive income (loss) $ (52,822 ) $ — $ 433 $ (52,389 ) Accumulated earnings (losses) $ 582,683 $ 18,208 $ (433 ) $ 600,458 Total shareholders’ equity $ 2,299,244 $ 18,208 $ — $ 2,317,452 Total liabilities and shareholders’ equity $ 6,857,350 $ 15,975 $ — $ 6,873,325 Our adoption of these standards impacted the referenced line items on our Condensed Consolidated Balance Sheet, Statement of Operations and Statements of Comprehensive Income (Loss) as follows: As of June 30, 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 $ 186,956 $ 7,129 $ — $ 194,085 Other current assets $ 15,887 $ (533 ) $ — $ 15,354 Other noncurrent assets, net $ 247,902 $ (29,878 ) $ — $ 218,024 Total assets $ 6,899,948 $ (23,282 ) $ — $ 6,876,666 Liabilities: Contract liabilities $ 72,776 $ 978 $ — $ 73,754 Accrued expenses and other $ 60,990 $ (255 ) $ — $ 60,735 Deferred tax liabilities, net $ 464,722 $ (4,297 ) $ — $ 460,425 Other noncurrent liabilities $ 104,289 $ 2,414 $ — $ 106,703 Total liabilities $ 4,542,351 $ (1,160 ) $ — $ 4,541,191 Shareholders’ Equity: Accumulated other comprehensive loss $ (82,089 ) $ — $ 505 $ (81,584 ) Accumulated earnings $ 660,690 $ (22,122 ) $ (505 ) $ 638,063 Total shareholders’ equity $ 2,357,597 $ (22,122 ) $ — $ 2,335,475 Total liabilities and shareholders’ equity $ 6,899,948 $ (23,282 ) $ — $ 6,876,666 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | As of June 30, 2018 January 1, 2018 (In thousands) Trade accounts receivable: Sales and services $ 145,475 $ 156,794 Leasing 8,215 10,355 Total 153,690 167,149 Contract assets 42,553 34,615 Allowance for doubtful accounts (9,287 ) (12,027 ) Total trade accounts receivable and contract assets, net $ 186,956 $ 189,737 Trade accounts receivable - DISH Network: Sales and services $ 25,449 $ 16,118 Leasing 254 22,523 Total trade accounts receivable - DISH Network, net $ 25,703 $ 38,641 Contract liabilities: Current $ 72,776 $ 64,417 Noncurrent 10,187 13,036 Total contract liabilities $ 82,963 $ 77,453 |
Marketable Investment Securit26
Marketable Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of marketable investment securities | Our marketable investment securities portfolio consists of various debt and equity instruments as follows: As of June 30, 2018 December 31, 2017 (In thousands) Marketable investment securities: Debt securities: Corporate bonds $ 757,647 $ 368,083 Other debt securities 234,266 86,417 Total debt securities 991,913 454,500 Equity securities 1,213 1,102 Total marketable investment securities $ 993,126 $ 455,602 |
Schedule of unrealized gains (losses) on marketable investment 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 June 30, 2018 Corporate bonds $ 757,703 $ 171 $ (227 ) $ 757,647 Other debt securities 234,269 — (3 ) 234,266 Total available-for-sale debt securities $ 991,972 $ 171 $ (230 ) $ 991,913 As of December 31, 2017 Corporate bonds $ 368,291 $ — $ (208 ) $ 368,083 Other debt securities 86,425 — (8 ) 86,417 Total available-for-sale debt securities $ 454,716 $ — $ (216 ) $ 454,500 |
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 June 30, 2018 and December 31, 2017 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of June 30, 2018 December 31, 2017 Level 1 Level 2 Total Level 1 Level 2 Total (In thousands) Debt securities: Corporate bonds $ — $ 757,647 $ 757,647 $ — $ 368,083 $ 368,083 Other — 234,266 234,266 — 86,417 86,417 Total debt securities — 991,913 991,913 — 454,500 454,500 Equity securities 1,213 — 1,213 1,102 — 1,102 Total marketable investment securities $ 1,213 $ 991,913 $ 993,126 $ 1,102 $ 454,500 $ 455,602 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory, Net [Abstract] | |
Schedule of inventory | Our inventory consisted of the following: As of June 30, 2018 December 31, 2017 (In thousands) Raw materials $ 6,291 $ 5,484 Work-in-process 8,691 7,442 Finished goods 66,406 70,669 Total inventory $ 81,388 $ 83,595 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 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 three months For the six months 2018 2017 2018 2017 (In thousands) Satellites $ 61,910 $ 57,322 $ 120,943 $ 109,466 Furniture, fixtures, equipment and other 18,633 15,875 39,407 32,557 Customer rental equipment 42,875 34,081 86,323 64,677 Buildings and improvements 3,967 5,502 5,265 6,759 Total depreciation expense $ 127,385 $ 112,780 $ 251,938 $ 213,459 Property and equipment consisted of the following: Depreciable Life In Years As of June 30, 2018 December 31, 2017 (In thousands) Land — $ 13,402 $ 13,475 Buildings and improvements 1 to 40 128,043 128,292 Furniture, fixtures, equipment and other 1 to 12 672,596 650,385 Customer rental equipment 2 to 4 1,032,591 929,775 Satellites - owned 2 to 15 2,268,862 2,516,685 Satellites - acquired under capital leases 10 to 15 899,310 916,820 Construction in progress — 174,046 149,570 Total property and equipment 5,188,850 5,305,002 Accumulated depreciation (2,546,186 ) (2,551,904 ) Property and equipment, net $ 2,642,664 $ 2,753,098 |
Schedule of construction in progress | Construction in progress consisted of the following: As of June 30, 2018 December 31, 2017 (In thousands) Progress amounts for satellite construction, including prepayments under capital leases and launch services costs $ 113,658 $ 101,733 Satellite related equipment 25,738 28,358 Other 34,650 19,479 Construction in progress $ 174,046 $ 149,570 |
Investment in Unconsolidated 29
Investment in Unconsolidated Entities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment in Unconsolidated Entities | Our investments in unconsolidated entities consisted of the following: As of June 30, 2018 December 31, 2017 (In thousands) Investments in unconsolidated entities: Equity method $ 12,879 $ 15,149 Other equity investments without a readily determinable fair value 15,438 15,438 Total investments in unconsolidated entities $ 28,317 $ 30,587 |
Debt and Capital Lease Obliga30
Debt and Capital Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt and Capital Lease Obligations [Abstract] | |
Schedule of carrying amounts and fair values of the entity's debt | The following table summarizes the carrying amounts and fair values of our debt: Effective Interest Rate As of June 30, 2018 December 31, 2017 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ 990,000 $ 1,014,651 $ 990,000 $ 1,042,609 5 1/4% Senior Secured Notes due 2026 5.320% 750,000 707,828 750,000 769,305 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 962,586 900,000 992,745 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 698,693 750,000 791,865 Less: Unamortized debt issuance costs (20,952 ) — (24,857 ) — Subtotal 3,369,048 $ 3,383,758 3,365,143 $ 3,596,524 Capital lease obligations 251,245 269,701 Total debt and capital lease obligations 3,620,293 3,634,844 Less: Current portion (1,028,119 ) (40,631 ) Long-term debt and capital lease obligations, net $ 2,592,174 $ 3,594,213 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 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. Hughes ESS Corporate and Other Consolidated Total (In thousands) For the three months ended June 30, 2018 External revenue $ 426,306 $ 94,904 $ 6,386 $ 527,596 Intersegment revenue $ — $ 521 $ (521 ) $ — Total revenue $ 426,306 $ 95,425 $ 5,865 $ 527,596 EBITDA $ 152,134 $ 82,483 $ 2,621 $ 237,238 Capital expenditures $ 87,511 $ 356 $ — $ 87,867 For the three months ended June 30, 2017 External revenue $ 362,403 $ 97,945 $ 1,917 $ 462,265 Intersegment revenue $ 359 $ 421 $ (780 ) $ — Total revenue $ 362,762 $ 98,366 $ 1,137 $ 462,265 EBITDA $ 110,024 $ 80,465 $ (11,845 ) $ 178,644 Capital expenditures $ 96,529 $ 4,640 $ — $ 101,169 For the six months ended June 30, 2018 External revenue $ 826,765 $ 191,127 $ 12,599 $ 1,030,491 Intersegment revenue $ 359 $ 1,051 $ (1,410 ) $ — Total revenue $ 827,124 $ 192,178 $ 11,189 $ 1,030,491 EBITDA $ 288,847 $ 166,633 $ (3,753 ) $ 451,727 Capital expenditures $ 174,802 $ (76,682 ) $ — $ 98,120 For the six months ended June 30, 2017 External revenue $ 691,013 $ 198,096 $ 3,274 $ 892,383 Intersegment revenue $ 1,069 $ 596 $ (1,665 ) $ — Total revenue $ 692,082 $ 198,692 $ 1,609 $ 892,383 EBITDA $ 210,876 $ 163,528 $ (23,991 ) $ 350,413 Capital expenditures $ 162,196 $ 13,148 $ — $ 175,344 |
Schedule of reconciliation of EBITDA to reported income before income taxes | The following table reconciles total consolidated EBITDA to reported Income before income taxes in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss): For the three months ended June 30, For the six months ended June 30, 2018 2017 2018 2017 (In thousands) EBITDA $ 237,238 $ 178,644 $ 451,727 $ 350,413 Interest income and expense, net (49,836 ) (54,290 ) (102,870 ) (108,286 ) Depreciation and amortization (136,708 ) (124,743 ) (270,426 ) (236,963 ) Net income attributable to noncontrolling interests 462 182 842 474 Income before income taxes $ 51,156 $ (207 ) $ 79,273 $ 5,638 |
Disaggregation of Revenue [Table Text Block] | 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 three months ended June 30, 2018 Equipment $ 50,341 $ — $ — $ 50,341 Services 310,225 6,890 329 317,444 Design, development and construction services 13,876 — — 13,876 Revenue from sales and services 374,442 6,890 329 381,661 Leasing income 51,864 88,535 5,536 145,935 Total revenue $ 426,306 $ 95,425 $ 5,865 $ 527,596 For the six months ended June 30, 2018 Equipment $ 93,288 $ — $ — $ 93,288 Services 608,010 14,293 704 623,007 Design, development and construction services 30,052 — — 30,052 Revenue from sales and services 731,350 14,293 704 746,347 Leasing income 95,774 177,885 10,485 284,144 Total revenue $ 827,124 $ 192,178 $ 11,189 $ 1,030,491 Hughes ESS Corporate and Other Consolidated Total (In thousands) For the three months ended June 30, 2018 North America: U.S. $ 347,575 $ 89,412 $ 1,199 $ 438,186 Canada and Mexico 15,132 5,837 — 20,969 All other 63,599 176 4,666 68,441 Total revenue $ 426,306 $ 95,425 $ 5,865 $ 527,596 For the six months ended June 30, 2018 North America: U.S. $ 668,013 $ 180,153 $ 2,405 $ 850,571 Canada and Mexico 30,714 11,674 — 42,388 All other 128,397 351 8,784 137,532 Total revenue $ 827,124 $ 192,178 $ 11,189 $ 1,030,491 |
Supplemental Guarantor and No32
Supplemental Guarantor and Non-Guarantor Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Supplemental Guarantor and Non-Guarantor Financial Information | |
Schedule of consolidating balance sheet | Condensed Consolidating Balance Sheet as of June 30, 2018 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 1,439,619 $ 42,385 $ 27,234 $ — $ 1,509,238 Marketable investment securities, at fair value 991,913 1,213 — — 993,126 Trade accounts receivable and contract assets, net — 122,726 64,230 — 186,956 Trade accounts receivable - DISH Network, net — 25,217 486 — 25,703 Inventory — 54,030 27,358 — 81,388 Advances to affiliates, net 7,829 399,924 17,431 (321,553 ) 103,631 Other current assets 109 25,111 34,792 (87 ) 59,925 Total current assets 2,439,470 670,606 171,531 (321,640 ) 2,959,967 Property and equipment, net — 2,371,631 271,033 — 2,642,664 Regulatory authorizations — 465,658 — — 465,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 51,267 — — 51,267 Investments in unconsolidated entities — 28,317 — — 28,317 Investment in subsidiaries 3,249,869 187,349 — (3,437,218 ) — Advances to affiliates 700 86,661 — (87,361 ) — Deferred tax asset 130,728 — 8,229 (130,728 ) 8,229 Other noncurrent assets, net — 228,965 10,708 — 239,673 Total assets $ 5,820,767 $ 4,594,627 $ 461,501 $ (3,976,947 ) $ 6,899,948 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 85,524 $ 11,592 $ — $ 97,116 Trade accounts payable - DISH Network — 445 — — 445 Current portion of long-term debt and capital lease obligations 985,773 37,888 4,458 — 1,028,119 Advances from affiliates, net 63,264 185,102 73,958 (321,553 ) 771 Accrued expenses and other 45,723 132,295 43,259 (87 ) 221,190 Total current liabilities 1,094,760 441,254 133,267 (321,640 ) 1,347,641 Long-term debt and capital lease obligations, net 2,383,275 207,540 1,359 — 2,592,174 Deferred tax liabilities, net — 594,493 957 (130,728 ) 464,722 Advances from affiliates — — 120,886 (87,361 ) 33,525 Other non-current liabilities — 101,884 2,405 — 104,289 Total HSS shareholders’ equity (deficit) 2,342,732 3,249,456 187,762 (3,437,218 ) 2,342,732 Noncontrolling interests — — 14,865 — 14,865 Total liabilities and shareholders’ equity (deficit) $ 5,820,767 $ 4,594,627 $ 461,501 $ (3,976,947 ) $ 6,899,948 December 31, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 1,746,878 $ 42,373 $ 33,310 $ — $ 1,822,561 Marketable investment securities, at fair value 454,500 1,102 — — 455,602 Trade accounts receivable and contract assets, net — 133,735 63,105 — 196,840 Trade accounts receivable - DISH Network, net — 38,286 355 — 38,641 Inventory — 59,711 23,884 — 83,595 Advances to affiliates, net 119,605 229,488 7,313 (241,548 ) 114,858 Other current assets 64 98,890 31,788 (401 ) 130,341 Total current assets 2,321,047 603,585 159,755 (241,949 ) 2,842,438 Property and equipment, net — 2,459,703 293,395 — 2,753,098 Regulatory authorizations — 465,658 — — 465,658 Goodwill — 504,173 — — 504,173 Other intangible assets, net — 58,582 — — 58,582 Investments in unconsolidated entities — 30,587 — — 30,587 Investment in subsidiaries 3,260,790 204,208 — (3,464,998 ) — Advances to affiliates 700 80,744 — (81,444 ) — Deferred tax asset 110,546 — 3,700 (110,546 ) 3,700 Other noncurrent assets, net — 185,839 13,275 — 199,114 Total assets $ 5,693,083 $ 4,593,079 $ 470,125 $ (3,898,937 ) $ 6,857,350 Liabilities and Shareholders’ Equity (Deficit) Trade accounts payable $ — $ 82,300 $ 20,516 $ — $ 102,816 Trade accounts payable - DISH Network — 3,769 — — 3,769 Current portion of long-term debt and capital lease obligations — 35,886 4,745 — 40,631 Advances from affiliates, net — 185,161 56,864 (241,548 ) 477 Accrued expenses and other 43,518 145,362 46,748 (401 ) 235,227 Total current liabilities 43,518 452,478 128,873 (241,949 ) 382,920 Long-term debt and capital lease obligations, net 3,365,143 226,997 2,073 — 3,594,213 Deferred tax liabilities, net — 549,217 960 (110,546 ) 439,631 Advances from affiliates — — 115,159 (81,444 ) 33,715 Other non-current liabilities — 104,249 3,378 — 107,627 Total HSS shareholders’ equity (deficit) 2,284,422 3,260,138 204,860 (3,464,998 ) 2,284,422 Noncontrolling interests — — 14,822 — 14,822 Total liabilities and shareholders’ equity (deficit) $ 5,693,083 $ 4,593,079 $ 470,125 $ (3,898,937 ) $ 6,857,350 |
Schedule of consolidating statement of operations and comprehensive income (loss) | Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended June 30, 2018 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 96,653 $ 487 $ — $ 97,140 Services and other revenue - other — 331,875 57,379 (9,139 ) 380,115 Equipment revenue — 53,643 4,557 (7,859 ) 50,341 Total revenue — 482,171 62,423 (16,998 ) 527,596 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 122,259 36,509 (8,545 ) 150,223 Cost of sales - equipment (exclusive of depreciation and amortization) — 46,217 3,539 (7,891 ) 41,865 Selling, general and administrative expenses — 82,477 11,460 (562 ) 93,375 Research and development expenses — 6,647 — — 6,647 Depreciation and amortization — 124,249 12,459 — 136,708 Total costs and expenses — 381,849 63,967 (16,998 ) 428,818 Operating income — 100,322 (1,544 ) — 98,778 Other Income (Expense): Interest income 13,768 1,609 508 (1,599 ) 14,286 Interest expense, net of amounts capitalized (57,479 ) (6,574 ) (1,668 ) 1,599 (64,122 ) Gains (losses) on investments, net — 509 — — 509 Equity in earnings of unconsolidated affiliate — 1,238 — — 1,238 Equity in earnings (losses) of subsidiaries, net 74,180 (8,161 ) — (66,019 ) — Other, net 3 9,489 (9,025 ) — 467 Total other income (expense), net 30,472 (1,890 ) (10,185 ) (66,019 ) (47,622 ) Income (loss) before income taxes 30,472 98,432 (11,729 ) (66,019 ) 51,156 Income tax benefit (provision) 9,759 (24,103 ) 3,881 — (10,463 ) Net income (loss) 40,231 74,329 (7,848 ) (66,019 ) 40,693 Less: Net income attributable to noncontrolling interests — — 462 — 462 Net income (loss) attributable to HSS $ 40,231 $ 74,329 $ (8,310 ) $ (66,019 ) $ 40,231 Comprehensive Income (Loss): Net income (loss) $ 40,231 $ 74,329 $ (7,848 ) $ (66,019 ) $ 40,693 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (32,314 ) — (32,314 ) Unrealized gains (losses) on available-for-sale securities and other 470 — (141 ) — 329 Realized gains on available-for-sale securities in net income (3 ) — — — (3 ) Equity in other comprehensive income (loss) of subsidiaries, net (31,870 ) (31,870 ) — 63,740 — Total other comprehensive income (loss), net of tax (31,403 ) (31,870 ) (32,455 ) 63,740 (31,988 ) Comprehensive income (loss) 8,828 42,459 (40,303 ) (2,279 ) 8,705 Less: Comprehensive loss attributable to noncontrolling interests — — (123 ) — (123 ) Comprehensive income (loss) attributable to HSS $ 8,828 $ 42,459 $ (40,180 ) $ (2,279 ) $ 8,828 For the Three Months Ended June 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 110,388 $ 533 $ — $ 110,921 Services and other revenue - other — 248,361 43,611 (6,917 ) 285,055 Equipment revenue — 81,831 5,033 (20,575 ) 66,289 Total revenue — 440,580 49,177 (27,492 ) 462,265 Costs and Expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 112,989 29,941 (5,656 ) 137,274 Cost of sales - equipment (exclusive of depreciation and amortization) — 70,297 4,532 (21,167 ) 53,662 Selling, general and administrative expenses — 75,035 11,749 (669 ) 86,115 Research and development expenses — 7,437 — — 7,437 Depreciation and amortization — 116,193 8,550 — 124,743 Total costs and expenses — 381,951 54,772 (27,492 ) 409,231 Operating income — 58,629 (5,595 ) — 53,034 Other Income (Expense): Interest income 6,733 231 321 (199 ) 7,086 Interest expense, net of amounts capitalized (57,336 ) (4,797 ) 558 199 (61,376 ) Gains (losses) on investments, net — 1,632 — — 1,632 Equity in earnings of unconsolidated affiliate — 1,639 — — 1,639 Equity in earnings (losses) of subsidiaries, net 33,078 (4,438 ) — (28,640 ) — Other, net — (702 ) (1,520 ) — (2,222 ) Total other income (expense), net (17,525 ) (6,435 ) (641 ) (28,640 ) (53,241 ) Income (loss) before income taxes (17,525 ) 52,194 (6,236 ) (28,640 ) (207 ) Income tax benefit (provision) 17,645 (19,026 ) 1,890 — 509 Net income (loss) 120 33,168 (4,346 ) (28,640 ) 302 Less: Net income attributable to noncontrolling interests — — 182 — 182 Net income (loss) attributable to HSS $ 120 $ 33,168 $ (4,528 ) $ (28,640 ) $ 120 Comprehensive Income (Loss): Net income (loss) $ 120 $ 33,168 $ (4,346 ) $ (28,640 ) $ 302 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (6,736 ) — (6,736 ) Unrealized gains (losses) on available-for-sale securities and other (21 ) 86 (76 ) — (11 ) Equity in other comprehensive income (loss) of subsidiaries, net (6,726 ) (6,812 ) — 13,538 — Total other comprehensive income (loss), net of tax (6,747 ) (6,726 ) (6,812 ) 13,538 (6,747 ) Comprehensive income (loss) (6,627 ) 26,442 (11,158 ) (15,102 ) (6,445 ) Less: Comprehensive income attributable to noncontrolling interests — — 182 — 182 Comprehensive income (loss) attributable to HSS $ (6,627 ) $ 26,442 $ (11,340 ) $ (15,102 ) $ (6,627 ) For the Six Months Ended June 30, 2018 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 196,740 $ 1,014 $ — $ 197,754 Services and other revenue - other — 643,983 114,455 (18,989 ) 739,449 Equipment revenue — 100,052 9,164 (15,928 ) 93,288 Total revenue — 940,775 124,633 (34,917 ) 1,030,491 Costs and expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 241,585 74,235 (17,942 ) 297,878 Cost of sales - equipment (exclusive of depreciation and amortization) — 89,860 7,004 (15,928 ) 80,936 Selling, general and administrative expenses — 165,869 23,203 (1,047 ) 188,025 Research and development expenses — 13,784 — — 13,784 Depreciation and amortization — 245,588 24,838 — 270,426 Total costs and expenses — 756,686 129,280 (34,917 ) 851,049 Operating income — 184,089 (4,647 ) — 179,442 Other income (expense): Interest income 24,529 1,925 1,009 (1,798 ) 25,665 Interest expense, net of amounts capitalized (114,924 ) (13,530 ) (1,879 ) 1,798 (128,535 ) Gains (losses) on investments, net — 117 — — 117 Equity in earnings of unconsolidated affiliate — 2,730 — — 2,730 Equity in earnings (losses) of subsidiaries, net 130,439 (11,858 ) — (118,581 ) — Other, net 6 9,392 (9,544 ) — (146 ) Total other income (expense), net 40,050 (11,224 ) (10,414 ) (118,581 ) (100,169 ) Income (loss) before income taxes 40,050 172,865 (15,061 ) (118,581 ) 79,273 Income tax benefit (provision) 20,182 (42,187 ) 3,806 — (18,199 ) Net income (loss) 60,232 130,678 (11,255 ) (118,581 ) 61,074 Less: Net income attributable to noncontrolling interests — — 842 — 842 Net income (loss) attributable to HSS $ 60,232 $ 130,678 $ (12,097 ) $ (118,581 ) $ 60,232 Comprehensive income (loss): Net income (loss) $ 60,232 $ 130,678 $ (11,255 ) $ (118,581 ) $ 61,074 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (30,414 ) — (30,414 ) Unrealized gains (losses) on available-for-sale securities and other 159 — (241 ) — (82 ) Recognition of realized gains (losses) on available-for-sale securities in net income (3 ) — — — (3 ) Equity in other comprehensive income (loss) of subsidiaries, net (29,856 ) (29,856 ) — 59,712 — Total other comprehensive income (loss), net of tax (29,700 ) (29,856 ) (30,655 ) 59,712 (30,499 ) Comprehensive income (loss) 30,532 100,822 (41,910 ) (58,869 ) 30,575 Less: Comprehensive income attributable to noncontrolling interests — — 43 — 43 Comprehensive income (loss) attributable to HSS $ 30,532 $ 100,822 $ (41,953 ) $ (58,869 ) $ 30,532 For the Six Months Ended June 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 221,692 $ 719 $ — $ 222,411 Services and other revenue - other — 489,733 77,974 (12,429 ) 555,278 Equipment revenue — 133,066 9,710 (28,082 ) 114,694 Total revenue — 844,491 88,403 (40,511 ) 892,383 Costs and expenses: Costs of sales - services and other (exclusive of depreciation and amortization) — 222,938 59,651 (11,011 ) 271,578 Cost of sales - equipment (exclusive of depreciation and amortization) — 114,704 7,806 (28,027 ) 94,483 Selling, general and administrative expenses — 140,720 21,246 (1,473 ) 160,493 Research and development expenses — 15,142 — — 15,142 Depreciation and amortization — 221,640 15,323 — 236,963 Total costs and expenses — 715,144 104,026 (40,511 ) 778,659 Operating income — 129,347 (15,623 ) — 113,724 Other income (expense): Interest income 12,223 433 669 (398 ) 12,927 Interest expense, net of amounts capitalized (114,635 ) (8,019 ) 1,043 398 (121,213 ) Gains (losses) on investments, net — (1,575 ) — — (1,575 ) Equity in earnings of unconsolidated affiliate — 3,350 — — 3,350 Equity in earnings (losses) of subsidiaries, net 74,937 (10,639 ) — (64,298 ) — Other, net — (840 ) (735 ) — (1,575 ) Total other income (expense), net (27,475 ) (17,290 ) 977 (64,298 ) (108,086 ) Income (loss) before income taxes (27,475 ) 112,057 (14,646 ) (64,298 ) 5,638 Income tax benefit (provision) 36,730 (36,882 ) 4,243 — 4,091 Net income (loss) 9,255 75,175 (10,403 ) (64,298 ) 9,729 Less: Net income attributable to noncontrolling interests — — 474 — 474 Net income (loss) attributable to HSS $ 9,255 $ 75,175 $ (10,877 ) $ (64,298 ) $ 9,255 Comprehensive income (loss): Net income (loss) $ 9,255 $ 75,175 $ (10,403 ) $ (64,298 ) $ 9,729 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 5,385 — 5,385 Unrealized gains (losses) on available-for-sale securities and other (48 ) (1,488 ) 25 — (1,511 ) Recognition of other-than-temporary loss on available-for-sale securities in net income (loss) — 3,298 — — 3,298 Equity in other comprehensive income (loss) of subsidiaries, net 7,220 5,410 — (12,630 ) — Total other comprehensive income (loss), net of tax 7,172 7,220 5,410 (12,630 ) 7,172 Comprehensive income (loss) 16,427 82,395 (4,993 ) (76,928 ) 16,901 Less: Comprehensive income attributable to noncontrolling interests — — 474 — 474 Comprehensive income (loss) attributable to HSS $ 16,427 $ 82,395 $ (5,467 ) $ (76,928 ) $ 16,427 |
Schedule of consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows For the Six Months Ended June 30, 2018 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 60,232 $ 130,678 $ (11,255 ) $ (118,581 ) $ 61,074 Adjustments to reconcile net income (loss) to net cash flows from operating activities (143,241 ) 305,364 19,347 118,581 300,051 Net cash flows from operating activities (83,009 ) 436,042 8,092 — 361,125 Cash flows from investing activities: Purchases of marketable investment securities (1,098,527 ) — — — (1,098,527 ) Sales and maturities of marketable investment securities 560,194 — — — 560,194 Expenditures for property and equipment — (148,208 ) (27,436 ) — (175,644 ) Refunds and other receipts related to property and equipment — 77,524 — — 77,524 Expenditures for externally marketed software — (15,000 ) — — (15,000 ) Payment for satellite launch services — — (7,125 ) — (7,125 ) Distributions (contributions) and advances from (to) subsidiaries, net 306,958 (23,215 ) — (283,743 ) — Net cash flows from investing activities (231,375 ) (108,899 ) (34,561 ) (283,743 ) (658,578 ) Cash flows from financing activities: Contributions (distributions) and advances (to) from parent, net — (306,958 ) 23,215 283,743 — Repayment of debt and capital lease obligations — (17,455 ) (962 ) — (18,417 ) Capital contribution from EchoStar 7,125 — — — 7,125 Payment of in-orbit incentive obligations — (2,718 ) — — (2,718 ) Net cash flows from financing activities 7,125 (327,131 ) 22,253 283,743 (14,010 ) Effect of exchange rates on cash and cash equivalents — — (1,865 ) — (1,865 ) Net increase (decrease) in cash and cash equivalents, including restricted amounts (307,259 ) 12 (6,081 ) — (313,328 ) Cash and cash equivalents, including restricted amounts, beginning of period 1,746,878 42,373 34,103 — 1,823,354 Cash and cash equivalents, including restricted amounts, end of period $ 1,439,619 $ 42,385 $ 28,022 $ — $ 1,510,026 For the Six Months Ended June 30, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 9,255 $ 75,175 $ (10,403 ) $ (64,298 ) $ 9,729 Adjustments to reconcile net income (loss) to net cash flows from operating activities 22,394 80,566 12,257 64,298 179,515 Net cash flows from operating activities 31,649 155,741 1,854 — 189,244 Cash flows from investing activities: Purchases of marketable investment securities (992 ) — — — (992 ) Sales and maturities of marketable investment securities 118,648 — — — 118,648 Expenditures for property and equipment — (141,385 ) (33,959 ) — (175,344 ) Expenditures for externally marketed software — (17,119 ) — — (17,119 ) Investment in subsidiary (36,000 ) (39,025 ) — 75,025 — Net cash flows from investing activities 81,656 (197,529 ) (33,959 ) 75,025 (74,807 ) Cash flows from financing activities: Proceeds from capital contributions from parent — 36,000 39,025 (75,025 ) — Repayment of debt and capital lease obligations — (15,648 ) (1,463 ) — (17,111 ) Advances from affiliates — — (36 ) — (36 ) Payment of in-orbit incentive obligations — (3,194 ) — — (3,194 ) Other, net 426 — 886 — 1,312 Net cash flows from financing activities 426 17,158 38,412 (75,025 ) (19,029 ) Effect of exchange rates on cash and cash equivalents — — 925 — 925 Net increase (decrease) in cash and cash equivalents, including restricted amounts 113,731 (24,630 ) 7,232 — 96,333 Cash and cash equivalents, including restricted amounts, beginning of period 1,991,949 53,905 25,833 — 2,071,687 Cash and cash equivalents, including restricted amounts, end of period $ 2,105,680 $ 29,275 $ 33,065 $ — $ 2,168,020 |
Supplemental Financial Inform33
Supplemental Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Text Block [Abstract] | |
Schedule of Other Significant Noncash Transactions [Table Text Block] | For The Six Months Ended June 30, 2018 2017 Property and equipment financed under capital lease obligations $ 123 $ 8,189 Decrease in capital expenditures included in accounts payable, net $ (1,158 ) $ (2,120 ) Transfer of launch service contracts from (to) EchoStar $ — $ (145,114 ) Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1) $ — $ 219,662 Noncash net assets exchanged for HSS Tracking Stock (Note 1) $ — $ (190,221 ) Capitalized in-orbit incentive obligations $ — $ 31,000 Contribution of EchoStar XIX satellite $ — $ 514,448 |
Schedule of Cost of Sales and Research and Development Costs [Table Text Block] | For the three months For the six months 2018 2017 2018 2017 (In thousands) Cost of sales $ 6,290 $ 6,785 $ 12,888 $ 13,686 Research and development $ 6,647 $ 7,437 $ 13,784 $ 15,142 |
Organization and Business Act34
Organization and Business Activities (Details) - segment | Feb. 28, 2017 | Jun. 30, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of business segments | 2 | |
Hughes Retail Group | DISH Network | Satellite And Tracking Stock Transaction | Hughes Retail Preferred Tracking Stock | ||
Related party transactions | ||
Percentage of economic interest in the Hughes Retail Group | 80.00% | |
EchoStar Technologies Business | DISH Network | Share Exchange Agreement | ||
Related party transactions | ||
Ownership interest acquired by related party | 100.00% |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value Measurements | ||
Amount of transfers between levels within the fair value hierarchy | $ 0 | $ 0 |
Maximum | ||
Capitalized Software Costs | ||
Software Useful Life | 5 years | |
Weighted Average | ||
Capitalized Software Costs | ||
Software Useful Life | 4 years |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Schedule Of Cumulative Effects Change (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | |||||
Trade accounts receivable and contract assets, net | $ 186,956 | $ 189,737 | $ 196,840 | ||
Other current assets | 15,887 | 92,077 | 91,544 | ||
Other noncurrent assets, net | 247,902 | 225,359 | 202,814 | ||
Assets | 6,899,948 | 6,873,325 | 6,857,350 | ||
Liabilities | |||||
Contract liabilities | 72,776 | 64,417 | 65,959 | ||
Accrued expenses and other | 60,990 | 77,567 | 77,312 | ||
Deferred Income Tax Liabilities, Net | 442,753 | ||||
Other noncurrent liabilities | 104,289 | 103,559 | 107,627 | ||
Liabilities | 4,542,351 | 4,555,873 | 4,558,106 | ||
Equity [Abstract] | |||||
Accumulated other comprehensive loss | (82,089) | (52,389) | (52,822) | ||
Accumulated earnings | 660,690 | 600,458 | 582,683 | ||
Total shareholders’ equity | 2,357,597 | 2,317,452 | 2,299,244 | $ 2,027,867 | $ 1,755,023 |
Liabilities and Equity | 6,899,948 | 6,873,325 | 6,857,350 | ||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Assets | |||||
Trade accounts receivable and contract assets, net | 196,840 | ||||
Other current assets | 91,544 | ||||
Other noncurrent assets, net | 202,814 | ||||
Assets | 6,857,350 | ||||
Liabilities | |||||
Contract liabilities | 65,959 | ||||
Accrued expenses and other | 77,312 | ||||
Deferred Income Tax Liabilities, Net | 439,631 | ||||
Other noncurrent liabilities | 107,627 | ||||
Liabilities | 4,558,106 | ||||
Equity [Abstract] | |||||
Total shareholders’ equity | 2,299,244 | ||||
Liabilities and Equity | 6,857,350 | ||||
Calculated Under Revenue Guidance In Effect Before Topic 606 And Accounting Standards Update 2016-01 [Member] | |||||
Equity [Abstract] | |||||
Accumulated other comprehensive loss | (52,822) | ||||
Accumulated earnings | $ 582,683 | ||||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Assets | |||||
Trade accounts receivable and contract assets, net | 194,085 | ||||
Other current assets | 15,354 | ||||
Other noncurrent assets, net | 218,024 | ||||
Assets | 6,876,666 | ||||
Liabilities | |||||
Contract liabilities | 73,754 | ||||
Accrued expenses and other | 60,735 | ||||
Other noncurrent liabilities | 106,703 | ||||
Liabilities | 4,541,191 | ||||
Equity [Abstract] | |||||
Total shareholders’ equity | 2,335,475 | ||||
Liabilities and Equity | 6,876,666 | ||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
Assets | |||||
Trade accounts receivable and contract assets, net | 7,129 | (7,103) | |||
Other current assets | (533) | 533 | |||
Other noncurrent assets, net | (29,878) | 22,545 | |||
Assets | (23,282) | 15,975 | |||
Liabilities | |||||
Contract liabilities | 978 | (1,542) | |||
Accrued expenses and other | (255) | 255 | |||
Deferred Income Tax Liabilities, Net | 3,122 | ||||
Other noncurrent liabilities | 2,414 | (4,068) | |||
Liabilities | (1,160) | (2,233) | |||
Equity [Abstract] | |||||
Accumulated other comprehensive loss | 0 | ||||
Accumulated earnings | (22,122) | 18,208 | |||
Total shareholders’ equity | (22,122) | 18,208 | |||
Liabilities and Equity | (23,282) | 15,975 | |||
Accounting Standards Update 2016-01 [Member] | |||||
Equity [Abstract] | |||||
Accumulated other comprehensive loss | 505 | 433 | |||
Accumulated earnings | $ (505) | (433) | |||
Accumulated Earnings | Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 18,200 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Schedule of ASU Adoption Impact (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | |||||||
Trade accounts receivable and contract assets, net | $ 186,956 | $ 186,956 | $ 189,737 | $ 196,840 | |||
Other current assets | 15,887 | 15,887 | 92,077 | 91,544 | |||
Other noncurrent assets, net | 247,902 | 247,902 | 225,359 | 202,814 | |||
Assets | 6,899,948 | 6,899,948 | 6,873,325 | 6,857,350 | |||
Liabilities | |||||||
Contract liabilities | 72,776 | 72,776 | 64,417 | 65,959 | |||
Accrued expenses and other | 60,990 | 60,990 | 77,567 | 77,312 | |||
Deferred tax liabilities, net | 464,722 | 464,722 | 439,631 | ||||
Other noncurrent liabilities | 104,289 | 104,289 | 103,559 | 107,627 | |||
Liabilities | 4,542,351 | 4,542,351 | 4,555,873 | 4,558,106 | |||
Equity [Abstract] | |||||||
Accumulated other comprehensive loss | (82,089) | (82,089) | (52,389) | (52,822) | |||
Accumulated earnings | 660,690 | 660,690 | 600,458 | 582,683 | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,357,597 | $ 2,027,867 | 2,357,597 | $ 2,027,867 | 2,317,452 | 2,299,244 | $ 1,755,023 |
Liabilities and Equity | 6,899,948 | 6,899,948 | 6,873,325 | 6,857,350 | |||
Revenue: | |||||||
Services and other revenue - other | 380,115 | 285,055 | 739,449 | 555,278 | |||
Total revenue | 527,596 | 462,265 | 1,030,491 | 892,383 | |||
Costs and expenses: | |||||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 150,223 | 137,274 | 297,878 | 271,578 | |||
Selling, general and administrative expenses | 93,375 | 86,115 | 188,025 | 160,493 | |||
Total costs and expenses | 428,818 | 409,231 | 851,049 | 778,659 | |||
Operating Income (Loss) | 98,778 | 53,034 | 179,442 | 113,724 | |||
Other income (expense): | |||||||
Interest expense, net of amounts capitalized | (64,122) | (61,376) | (128,535) | (121,213) | |||
Gain (Loss) on Investments | 509 | 1,632 | 117 | (1,575) | |||
Total Nonoperating Income (Expense), Interest And Debt Expense, and Income (Loss) From Equity Method Investments | (47,622) | (53,241) | (100,169) | (108,086) | |||
Income (loss) before income taxes | 51,156 | (207) | 79,273 | 5,638 | |||
Income tax benefit (provision) | (10,463) | 509 | (18,199) | 4,091 | |||
Net income | 40,693 | 302 | 61,074 | 9,729 | |||
Net income attributable to HSS | 40,231 | 120 | 60,232 | 9,255 | |||
Comprehensive income | |||||||
Net income | 40,693 | 302 | 61,074 | 9,729 | |||
Unrealized gains (losses) on available-for-sale securities and other | 329 | (11) | (82) | (1,511) | |||
Other-than-temporary impairment loss on available-for-sale securities in net income | 0 | 0 | 0 | 3,298 | |||
Other Comprehensive Income (Loss), Net of Tax | (31,988) | (6,747) | (30,499) | 7,172 | |||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 8,705 | (6,445) | 30,575 | 16,901 | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 8,828 | $ (6,627) | 30,532 | $ 16,427 | |||
Calculated Under Revenue Guidance In Effect Before Topic 606 And Accounting Standards Update 2016-01 [Member] | |||||||
Equity [Abstract] | |||||||
Accumulated other comprehensive loss | (52,822) | ||||||
Accumulated earnings | 582,683 | ||||||
Comprehensive income | |||||||
Unrealized gains (losses) on available-for-sale securities and other | 834 | 28 | |||||
Other-than-temporary impairment loss on available-for-sale securities in net income | 828 | ||||||
Other Comprehensive Income (Loss), Net of Tax | (31,483) | (29,561) | |||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||
Assets | |||||||
Trade accounts receivable and contract assets, net | 196,840 | ||||||
Other current assets | 91,544 | ||||||
Other noncurrent assets, net | 202,814 | ||||||
Assets | 6,857,350 | ||||||
Liabilities | |||||||
Contract liabilities | 65,959 | ||||||
Accrued expenses and other | 77,312 | ||||||
Other noncurrent liabilities | 107,627 | ||||||
Liabilities | 4,558,106 | ||||||
Equity [Abstract] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,299,244 | ||||||
Liabilities and Equity | $ 6,857,350 | ||||||
Comprehensive income | |||||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 6,451 | 26,662 | |||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 6,574 | 26,619 | |||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||||||
Assets | |||||||
Trade accounts receivable and contract assets, net | 7,129 | 7,129 | (7,103) | ||||
Other current assets | (533) | (533) | 533 | ||||
Other noncurrent assets, net | (29,878) | (29,878) | 22,545 | ||||
Assets | (23,282) | (23,282) | 15,975 | ||||
Liabilities | |||||||
Contract liabilities | 978 | 978 | (1,542) | ||||
Accrued expenses and other | (255) | (255) | 255 | ||||
Deferred tax liabilities, net | (4,297) | (4,297) | |||||
Other noncurrent liabilities | 2,414 | 2,414 | (4,068) | ||||
Liabilities | (1,160) | (1,160) | (2,233) | ||||
Equity [Abstract] | |||||||
Accumulated other comprehensive loss | 0 | ||||||
Accumulated earnings | (22,122) | (22,122) | 18,208 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (22,122) | (22,122) | 18,208 | ||||
Liabilities and Equity | (23,282) | (23,282) | 15,975 | ||||
Revenue: | |||||||
Services and other revenue - other | 808 | 2,026 | |||||
Total revenue | 808 | 2,026 | |||||
Costs and expenses: | |||||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 1,548 | 2,477 | |||||
Selling, general and administrative expenses | 2,434 | 4,855 | |||||
Total costs and expenses | 3,982 | 7,332 | |||||
Operating Income (Loss) | (3,174) | (5,306) | |||||
Other income (expense): | |||||||
Interest expense, net of amounts capitalized | 126 | 218 | |||||
Gain (Loss) on Investments | 0 | 0 | |||||
Total Nonoperating Income (Expense), Interest And Debt Expense, and Income (Loss) From Equity Method Investments | 126 | 218 | |||||
Income (loss) before income taxes | (3,048) | (5,088) | |||||
Income tax benefit (provision) | 794 | 1,175 | |||||
Net income | (2,254) | (3,913) | |||||
Net income attributable to HSS | (2,254) | (3,913) | |||||
Comprehensive income | |||||||
Net income | (2,254) | (3,913) | |||||
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | (2,254) | (3,913) | |||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | (2,254) | (3,913) | |||||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||
Assets | |||||||
Trade accounts receivable and contract assets, net | 194,085 | 194,085 | |||||
Other current assets | 15,354 | 15,354 | |||||
Other noncurrent assets, net | 218,024 | 218,024 | |||||
Assets | 6,876,666 | 6,876,666 | |||||
Liabilities | |||||||
Contract liabilities | 73,754 | 73,754 | |||||
Accrued expenses and other | 60,735 | 60,735 | |||||
Deferred tax liabilities, net | 460,425 | 460,425 | |||||
Other noncurrent liabilities | 106,703 | 106,703 | |||||
Liabilities | 4,541,191 | 4,541,191 | |||||
Equity [Abstract] | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,335,475 | 2,335,475 | |||||
Liabilities and Equity | 6,876,666 | 6,876,666 | |||||
Revenue: | |||||||
Services and other revenue - other | 380,923 | 741,475 | |||||
Total revenue | 528,404 | 1,032,517 | |||||
Costs and expenses: | |||||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 151,771 | 300,355 | |||||
Selling, general and administrative expenses | 95,809 | 192,880 | |||||
Total costs and expenses | 432,800 | 858,381 | |||||
Operating Income (Loss) | 95,604 | 174,136 | |||||
Other income (expense): | |||||||
Interest expense, net of amounts capitalized | (63,996) | (128,317) | |||||
Income tax benefit (provision) | (9,669) | (17,024) | |||||
Accounting Standards Update 2016-01 [Member] | |||||||
Equity [Abstract] | |||||||
Accumulated other comprehensive loss | 505 | 505 | 433 | ||||
Accumulated earnings | (505) | (505) | $ (433) | ||||
Other income (expense): | |||||||
Gain (Loss) on Investments | (505) | (938) | |||||
Total Nonoperating Income (Expense), Interest And Debt Expense, and Income (Loss) From Equity Method Investments | (505) | (938) | |||||
Income (loss) before income taxes | (505) | (938) | |||||
Net income | (505) | (938) | |||||
Net income attributable to HSS | (505) | (938) | |||||
Comprehensive income | |||||||
Net income | (505) | (938) | |||||
Unrealized gains (losses) on available-for-sale securities and other | 505 | 110 | |||||
Other-than-temporary impairment loss on available-for-sale securities in net income | 828 | ||||||
Other Comprehensive Income (Loss), Net of Tax | 505 | 938 | |||||
Accounting Standards Update 2014-09 And 2016-01 [Member] | Calculated Under Revenue Guidance In Effect Before Topic 606 And Accounting Standards Update 2016-01 [Member] | |||||||
Equity [Abstract] | |||||||
Accumulated other comprehensive loss | (81,584) | (81,584) | |||||
Accumulated earnings | 638,063 | 638,063 | |||||
Other income (expense): | |||||||
Gain (Loss) on Investments | 4 | (821) | |||||
Total Nonoperating Income (Expense), Interest And Debt Expense, and Income (Loss) From Equity Method Investments | (48,001) | (100,889) | |||||
Income (loss) before income taxes | 47,603 | 73,247 | |||||
Net income | 37,934 | 56,223 | |||||
Net income attributable to HSS | 37,472 | 55,381 | |||||
Comprehensive income | |||||||
Net income | $ 37,934 | $ 56,223 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||||||
Total trade accounts receivable | $ 153,690 | $ 153,690 | $ 167,149 | ||||
Contract Asset | 42,553 | 42,553 | 34,615 | ||||
Allowance for doubtful accounts | (9,287) | (9,287) | (12,027) | ||||
Total trade accounts receivable and contract assets, net | 186,956 | 186,956 | 189,737 | $ 196,840 | |||
Trade accounts receivable - DISH Network | 25,703 | 25,703 | 38,641 | 38,641 | |||
Contract with Customer, Asset and Liability [Abstract] | |||||||
Contract liabilities | 72,776 | 72,776 | 64,417 | $ 65,959 | |||
Contract with Customer, Liability, Noncurrent | 10,187 | 10,187 | 13,036 | ||||
Contract with Customer, Liability | 82,963 | 82,963 | 77,453 | ||||
Change in Contract with Customer, Asset and Liability [Abstract] | |||||||
Contract with Customer, Liability, Revenue Recognized | 52,500 | ||||||
Revenue, Performance Obligation [Abstract] | |||||||
Allowance for Loan and Lease Loss, Recovery of Bad Debts | 2,300 | $ 3,200 | 6,800 | $ 5,700 | |||
Revenue, Remaining Performance Obligation | 1,260,000 | 1,260,000 | |||||
Trade accounts receivable | |||||||
Receivables [Abstract] | |||||||
Total trade accounts receivable | 145,475 | 145,475 | 156,794 | ||||
Trade accounts receivable - DISH Network | 25,449 | 25,449 | 16,118 | ||||
Lease Receivable [Member] | |||||||
Receivables [Abstract] | |||||||
Total trade accounts receivable | 8,215 | 8,215 | 10,355 | ||||
Trade accounts receivable - DISH Network | $ 254 | $ 254 | $ 22,523 | ||||
Scenario, Forecast [Member] | |||||||
Revenue, Performance Obligation [Abstract] | |||||||
Revenue, Remaining Performance Obligation, Recognition In Period, Percentage | 18.80% |
Other Comprehensive Income (L39
Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Tax effects on unrealized gains or losses on available-for-sale securities | $ 0 | $ 0 | |||
Tax effects on foreign currency translation adjustments | 0 | 0 | |||
Cumulative foreign currency translation losses | $ (81,900,000) | (81,900,000) | $ (52,300,000) | ||
Other-than-temporary impairment loss on available-for-sale securities | $ 509,000 | $ 1,632,000 | $ 117,000 | (1,575,000) | |
Reclassification out of Accumulated Other Comprehensive Income | Recognition of other-than-temporary impairment loss on available-for-sale securities in net income (1) | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other-than-temporary impairment loss on available-for-sale securities | $ 3,300,000 |
Marketable Investment Securit40
Marketable Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Marketable investment securities - current, at fair value: | ||
Debt securities | $ 991,913 | $ 454,500 |
Equity securities | 1,213 | 1,102 |
Total marketable investment securities | 993,126 | 455,602 |
Corporate bonds | ||
Marketable investment securities - current, at fair value: | ||
Debt securities | 757,647 | 368,083 |
Other debt securities | ||
Marketable investment securities - current, at fair value: | ||
Debt securities | $ 234,266 | $ 86,417 |
Marketable Investment Securit41
Marketable Investment Securities (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Unrealized Gains (Losses) on Available-For-Sale Securities | ||
Amortized Cost | $ 991,972 | $ 454,716 |
Unrealized Gains | 171 | 0 |
Unrealized Losses | (230) | (216) |
Available-for-sale Securities, Debt Securities | 991,913 | 454,500 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Available-for-sale Securities, Debt Maturities, Next Rolling Twelve Months, Fair Value | 783,800 | |
Available For Sale Securities Debt Maturities After Next Rolling Twelve Months Fair Value | 208,100 | |
Corporate bonds | ||
Unrealized Gains (Losses) on Available-For-Sale Securities | ||
Amortized Cost | 757,703 | 368,291 |
Unrealized Gains | 171 | 0 |
Unrealized Losses | (227) | (208) |
Available-for-sale Securities, Debt Securities | 757,647 | 368,083 |
Other debt securities | ||
Unrealized Gains (Losses) on Available-For-Sale Securities | ||
Amortized Cost | 234,269 | 86,425 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (3) | (8) |
Available-for-sale Securities, Debt Securities | $ 234,266 | $ 86,417 |
Marketable Investment Securit42
Marketable Investment Securities (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Gain (Loss) on Investments [Line Items] | |||||
Proceeds from Sale of Available-for-sale Securities | $ 0 | $ 8,900,000 | $ 0 | $ 8,900,000 | |
Available-for-sale Securities, Gross Realized Gains | $ 0 | 0 | |||
Equity securities | |||||
Gain (Loss) on Investments [Line Items] | |||||
Available-for-sale Securities, Equity Securities, Current | $ 1,100,000 | ||||
Available-for-sale Equity Securities, Amortized Cost Basis | 1,500,000 | ||||
Available-for-sale Equity Securities, Accumulated Gross Unrealized Loss, before Tax | $ 400,000 | ||||
Other Nonoperating Income (Expense) [Member] | Equity securities | |||||
Gain (Loss) on Investments [Line Items] | |||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 3,300,000 | ||||
Gain (Loss) on Investments [Member] | Equity securities | |||||
Gain (Loss) on Investments [Line Items] | |||||
Marketable Securities, Unrealized Gain (Loss), Excluding Other than Temporary Impairments | $ 500,000 | $ 100,000 |
Marketable Investment Securit43
Marketable Investment Securities (Details 4) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair value of marketable securities | |||||
Debt securities | $ 991,913,000 | $ 991,913,000 | $ 454,500,000 | ||
Equity securities | 1,213,000 | 1,213,000 | 1,102,000 | ||
Proceeds from Sale of Available-for-sale Securities | 0 | $ 8,900,000 | 0 | $ 8,900,000 | |
Corporate bonds | |||||
Fair value of marketable securities | |||||
Debt securities | 757,647,000 | 757,647,000 | 368,083,000 | ||
Other debt securities | |||||
Fair value of marketable securities | |||||
Debt securities | 234,266,000 | 234,266,000 | 86,417,000 | ||
Level 3 | |||||
Fair value of marketable securities | |||||
Fair value of investments | 0 | 0 | 0 | ||
Fair value measurements on recurring basis | |||||
Fair value of marketable securities | |||||
Debt securities | 991,913,000 | 991,913,000 | 454,500,000 | ||
Equity securities | 1,213,000 | 1,213,000 | 1,102,000 | ||
Total marketable investment securities | 993,126,000 | 993,126,000 | 455,602,000 | ||
Fair value measurements on recurring basis | Corporate bonds | |||||
Fair value of marketable securities | |||||
Debt securities | 757,647,000 | 757,647,000 | 368,083,000 | ||
Fair value measurements on recurring basis | Other debt securities | |||||
Fair value of marketable securities | |||||
Debt securities | 234,266,000 | 234,266,000 | 86,417,000 | ||
Fair value measurements on recurring basis | Level 1 | |||||
Fair value of marketable securities | |||||
Debt securities | 0 | 0 | 0 | ||
Equity securities | 1,213,000 | 1,213,000 | 1,102,000 | ||
Total marketable investment securities | 1,213,000 | 1,213,000 | 1,102,000 | ||
Fair value measurements on recurring basis | Level 1 | Corporate bonds | |||||
Fair value of marketable securities | |||||
Debt securities | 0 | 0 | 0 | ||
Fair value measurements on recurring basis | Level 1 | Other debt securities | |||||
Fair value of marketable securities | |||||
Debt securities | 0 | 0 | 0 | ||
Fair value measurements on recurring basis | Level 2 | |||||
Fair value of marketable securities | |||||
Debt securities | 991,913,000 | 991,913,000 | 454,500,000 | ||
Equity securities | 0 | 0 | 0 | ||
Total marketable investment securities | 991,913,000 | 991,913,000 | 454,500,000 | ||
Fair value measurements on recurring basis | Level 2 | Corporate bonds | |||||
Fair value of marketable securities | |||||
Debt securities | 757,647,000 | 757,647,000 | 368,083,000 | ||
Fair value measurements on recurring basis | Level 2 | Other debt securities | |||||
Fair value of marketable securities | |||||
Debt securities | $ 234,266,000 | $ 234,266,000 | $ 86,417,000 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 6,291 | $ 5,484 |
Work-in-process | 8,691 | 7,442 |
Finished goods | 66,406 | 70,669 |
Total inventory | $ 81,388 | $ 83,595 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Property and equipment | ||
Total property and equipment | $ 5,188,850 | $ 5,305,002 |
Accumulated depreciation | (2,546,186) | (2,551,904) |
Property and equipment, net | 2,642,664 | 2,753,098 |
Land | ||
Property and equipment | ||
Total property and equipment | 13,402 | 13,475 |
Buildings and improvements | ||
Property and equipment | ||
Total property and equipment | $ 128,043 | 128,292 |
Buildings and improvements | Minimum | ||
Property and equipment | ||
Depreciable Life | 1 year | |
Buildings and improvements | Maximum | ||
Property and equipment | ||
Depreciable Life | 40 years | |
Furniture, fixtures, equipment and other | ||
Property and equipment | ||
Total property and equipment | $ 672,596 | 650,385 |
Furniture, fixtures, equipment and other | Minimum | ||
Property and equipment | ||
Depreciable Life | 1 year | |
Furniture, fixtures, equipment and other | Maximum | ||
Property and equipment | ||
Depreciable Life | 12 years | |
Customer rental equipment | ||
Property and equipment | ||
Total property and equipment | $ 1,032,591 | 929,775 |
Customer rental equipment | Minimum | ||
Property and equipment | ||
Depreciable Life | 2 years | |
Customer rental equipment | Maximum | ||
Property and equipment | ||
Depreciable Life | 4 years | |
Satellites - owned | ||
Property and equipment | ||
Total property and equipment | $ 2,268,862 | 2,516,685 |
Satellites - owned | Minimum | ||
Property and equipment | ||
Depreciable Life | 2 years | |
Satellites - owned | Maximum | ||
Property and equipment | ||
Depreciable Life | 15 years | |
Satellites - acquired under capital leases | ||
Property and equipment | ||
Total property and equipment | $ 899,310 | 916,820 |
Satellites - acquired under capital leases | Minimum | ||
Property and equipment | ||
Depreciable Life | 10 years | |
Satellites - acquired under capital leases | Maximum | ||
Property and equipment | ||
Depreciable Life | 15 years | |
Construction in progress | ||
Property and equipment | ||
Total property and equipment | $ 174,046 | $ 149,570 |
Property and Equipment (Detai46
Property and Equipment (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property and equipment | ||
Construction in progress | $ 174,046 | $ 149,570 |
Progress amounts for satellite construction, including prepayments under capital leases and launch services costs | ||
Property and equipment | ||
Construction in progress | 113,658 | 101,733 |
Satellite related equipment | ||
Property and equipment | ||
Construction in progress | 25,738 | 28,358 |
Other | ||
Property and equipment | ||
Construction in progress | $ 34,650 | $ 19,479 |
Property and Equipment (Detai47
Property and Equipment (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Depreciation expense | ||||
Total depreciation expense | $ 127,385 | $ 112,780 | $ 251,938 | $ 213,459 |
Satellites | ||||
Depreciation expense | ||||
Total depreciation expense | 61,910 | 57,322 | 120,943 | 109,466 |
Furniture, fixtures, equipment and other | ||||
Depreciation expense | ||||
Total depreciation expense | 18,633 | 15,875 | 39,407 | 32,557 |
Customer rental equipment | ||||
Depreciation expense | ||||
Total depreciation expense | 42,875 | 34,081 | 86,323 | 64,677 |
Buildings and improvements | ||||
Depreciation expense | ||||
Total depreciation expense | $ 3,967 | $ 5,502 | $ 5,265 | $ 6,759 |
Property and Equipment (Detai48
Property and Equipment (Details 4) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2017solar_array_circuit | Oct. 31, 2017USD ($) | Jun. 30, 2018USD ($)satellite | Jun. 30, 2018USD ($)satellitemi | Nov. 30, 2017solar_array_circuit | Dec. 31, 2017solar_array_circuit | |
Satellites | ||||||
Property and equipment | ||||||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | satellite | 14 | |||||
Satellites in Geosynchronous Orbit Length Above Equator | mi | 22,300 | |||||
Number of satellites utilized under capital lease | satellite | 4 | 4 | ||||
EchoStar 105/SES-11 [Member] | ||||||
Property and equipment | ||||||
Lessee, Finance Lease, Term of Contract | 10 years | |||||
Echo Star X [Member] | ||||||
Property and equipment | ||||||
Revenue, Net, Reduction In Period | $ | $ (1.1) | $ (2.3) | ||||
Number Of Solar Array Circuits Affected | solar_array_circuit | 1 | 7 | ||||
Number Of Functional Solar Array Circuits | solar_array_circuit | 16 | 16 | ||||
Telesat 19V satellite [Member] | ||||||
Property and equipment | ||||||
Lessee, Finance Lease, Term of Contract | 15 years | |||||
Other Current Assets [Member] | EchoStar 105/SES-11 [Member] | ||||||
Property and equipment | ||||||
Other Significant Noncash Transaction, Value of Consideration Received | $ | $ 77.5 |
Investment in Unconsolidated 49
Investment in Unconsolidated Entities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Equity method | $ 12,879 | $ 15,149 |
Other equity investments without a readily determinable fair value | 15,438 | 15,438 |
Total investments in unconsolidated entities | $ 28,317 | $ 30,587 |
Debt and Capital Lease Obliga50
Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt and Capital Lease Obligations | ||
Fair Value | $ 3,383,758 | $ 3,596,524 |
Carrying amount | 3,369,048 | 3,365,143 |
Capital lease obligations | 251,245 | 269,701 |
Total debt and capital lease obligations | 3,620,293 | 3,634,844 |
Less: Current portion | (1,028,119) | (40,631) |
Long-term debt and capital lease obligations, net | $ 2,592,174 | $ 3,594,213 |
6 1/2% Senior Secured Notes due 2019 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.50% | 6.50% |
Effective Interest Rate | 6.959% | |
Carrying Amount | $ 990,000 | $ 990,000 |
Fair Value | $ 1,014,651 | $ 1,042,609 |
5 1/4% Senior Secured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 5.25% | 5.25% |
Effective Interest Rate | 5.32% | |
Carrying Amount | $ 750,000 | $ 750,000 |
Fair Value | $ 707,828 | $ 769,305 |
7 5/8% Senior Unsecured Notes due 2021 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 7.625% | 7.625% |
Effective Interest Rate | 8.062% | |
Carrying Amount | $ 900,000 | $ 900,000 |
Fair Value | $ 962,586 | $ 992,745 |
6 5/8% Senior Unsecured Notes due 2026 | ||
Debt and Capital Lease Obligations | ||
Interest rate | 6.625% | 6.625% |
Effective Interest Rate | 6.688% | |
Carrying Amount | $ 750,000 | $ 750,000 |
Fair Value | 698,693 | 791,865 |
Unamortized debt issuance costs | ||
Debt and Capital Lease Obligations | ||
Less: Unamortized debt issuance costs | $ (20,952) | $ (24,857) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit (provision) | $ (10,463) | $ 509 | $ (18,199) | $ 4,091 |
Effective income tax rate | 20.50% | 245.90% | 23.00% | (72.60%) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Aug. 07, 2017USD ($) | Feb. 14, 2017claimpatent | Nov. 30, 2017USD ($) | Jun. 30, 2018USD ($)claim |
Realtime Data LLC [Member] | ||||
Loss Contingency [Abstract] | ||||
Loss Contingency, Invalidated Claims, Number | claim | 2 | |||
Loss Contingency, Pending Claims, Number | claim | 4 | |||
Loss Contingency, Patents Allegedly Infringed, Number | patent | 4 | |||
Subsidiaries | Hughes Network Systems | Elbit | ||||
Loss Contingency [Abstract] | ||||
Loss Contingency, Damages Awarded, Value | $ 21.1 | $ 28.5 | ||
Loss Contingency, Attorney's Fees Sought, Value | $ 13.9 | |||
Loss Contingency Accrual | 2.8 | |||
Satellite-related obligations | ||||
Other Commitments [Line Items] | ||||
Satellite-related obligations | $ 562 | |||
Patent 728 [Member] | Realtime Data LLC [Member] | ||||
Loss Contingency [Abstract] | ||||
Loss Contingency, Pending Claims, Validity Not Challenged | claim | 1 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | |
Segment Reporting [Abstract] | ||||
Number of business segments | segment | 2 | |||
Segment Reporting | ||||
Total revenue | $ 527,596 | $ 462,265 | $ 1,030,491 | $ 892,383 |
EBITDA | 237,238 | 178,644 | 451,727 | 350,413 |
Capital Expenditures, Net of Refunds and Other Receipts Related to Capital Expenditures | 87,867 | 101,169 | 98,120 | 175,344 |
Interest income and expense, net | (49,836) | (54,290) | (102,870) | (108,286) |
Depreciation and amortization | (136,708) | (124,743) | (270,426) | (236,963) |
Net income attributable to noncontrolling interests | 462 | 182 | 842 | 474 |
Income (loss) before income taxes | 51,156 | (207) | 79,273 | 5,638 |
Hughes Business | ||||
Segment Reporting | ||||
Total revenue | 426,306 | 362,403 | 826,765 | 691,013 |
Hughes Business | Intersegment Elimination | ||||
Segment Reporting | ||||
Total revenue | 0 | 359 | 359 | 1,069 |
Hughes Business | Operating segments | ||||
Segment Reporting | ||||
Total revenue | 426,306 | 362,762 | 827,124 | 692,082 |
EBITDA | 152,134 | 110,024 | 288,847 | 210,876 |
Capital Expenditures, Net of Refunds and Other Receipts Related to Capital Expenditures | 87,511 | 96,529 | 174,802 | 162,196 |
EchoStar Satellite Services Business [Member] | ||||
Segment Reporting | ||||
Total revenue | 94,904 | 97,945 | 191,127 | 198,096 |
EchoStar Satellite Services Business [Member] | Intersegment Elimination | ||||
Segment Reporting | ||||
Total revenue | 521 | 421 | 1,051 | 596 |
EchoStar Satellite Services Business [Member] | Operating segments | ||||
Segment Reporting | ||||
Total revenue | 95,425 | 98,366 | 192,178 | 198,692 |
EBITDA | 82,483 | 80,465 | 166,633 | 163,528 |
Capital Expenditures, Net of Refunds and Other Receipts Related to Capital Expenditures | 356 | 4,640 | (76,682) | 13,148 |
Corporate and Other | ||||
Segment Reporting | ||||
Total revenue | 6,386 | 1,917 | 12,599 | 3,274 |
Corporate and Other | Intersegment Elimination | ||||
Segment Reporting | ||||
Total revenue | (521) | (780) | (1,410) | (1,665) |
Corporate and Other | Corporate and Other | ||||
Segment Reporting | ||||
Total revenue | 5,865 | 1,137 | 11,189 | 1,609 |
EBITDA | 2,621 | (11,845) | (3,753) | (23,991) |
Capital Expenditures, Net of Refunds and Other Receipts Related to Capital Expenditures | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Reporting Disaggregatio
Segment Reporting Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 381,661 | $ 746,347 | ||
Lease Income | 145,935 | 284,144 | ||
Revenue, Net | 527,596 | $ 462,265 | 1,030,491 | $ 892,383 |
Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 50,341 | 93,288 | ||
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 317,444 | 623,007 | ||
Design, development and construction services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 13,876 | 30,052 | ||
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 438,186 | 850,571 | ||
Canada and Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 20,969 | 42,388 | ||
All Other Geographic Regions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 68,441 | 137,532 | ||
Hughes Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 426,306 | 362,403 | 826,765 | 691,013 |
EchoStar Satellite Services Business [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 94,904 | 97,945 | 191,127 | 198,096 |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 6,386 | 1,917 | 12,599 | 3,274 |
Operating segments | Hughes Business | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 374,442 | 731,350 | ||
Lease Income | 51,864 | 95,774 | ||
Revenue, Net | 426,306 | 362,762 | 827,124 | 692,082 |
Operating segments | Hughes Business | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 50,341 | 93,288 | ||
Operating segments | Hughes Business | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 310,225 | 608,010 | ||
Operating segments | Hughes Business | Design, development and construction services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 13,876 | 30,052 | ||
Operating segments | Hughes Business | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 347,575 | 668,013 | ||
Operating segments | Hughes Business | Canada and Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 15,132 | 30,714 | ||
Operating segments | Hughes Business | All Other Geographic Regions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 63,599 | 128,397 | ||
Operating segments | EchoStar Satellite Services Business [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,890 | 14,293 | ||
Lease Income | 88,535 | 177,885 | ||
Revenue, Net | 95,425 | 98,366 | 192,178 | 198,692 |
Operating segments | EchoStar Satellite Services Business [Member] | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | ||
Operating segments | EchoStar Satellite Services Business [Member] | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,890 | 14,293 | ||
Operating segments | EchoStar Satellite Services Business [Member] | Design, development and construction services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | ||
Operating segments | EchoStar Satellite Services Business [Member] | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 89,412 | 180,153 | ||
Operating segments | EchoStar Satellite Services Business [Member] | Canada and Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 5,837 | 11,674 | ||
Operating segments | EchoStar Satellite Services Business [Member] | All Other Geographic Regions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 176 | 351 | ||
Corporate and Other | Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 329 | 704 | ||
Lease Income | 5,536 | 10,485 | ||
Revenue, Net | 5,865 | $ 1,137 | 11,189 | $ 1,609 |
Corporate and Other | Corporate and Other | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | ||
Corporate and Other | Corporate and Other | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 329 | 704 | ||
Corporate and Other | Corporate and Other | Design, development and construction services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | ||
Corporate and Other | Corporate and Other | U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 1,199 | 2,405 | ||
Corporate and Other | Corporate and Other | Canada and Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | 0 | 0 | ||
Corporate and Other | Corporate and Other | All Other Geographic Regions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Net | $ 4,666 | $ 8,784 |
Related Party Transactions (Det
Related Party Transactions (Details) | Feb. 28, 2017 | Feb. 01, 2017USD ($) | Feb. 28, 2022 | Dec. 31, 2017USD ($) | Aug. 31, 2017 | Jun. 30, 2017USD ($) | May 31, 2017 | Mar. 31, 2017USD ($) | Nov. 30, 2016 | Jul. 31, 2016 | Aug. 31, 2015 | Dec. 31, 2012 | Oct. 31, 2012 | May 31, 2012 | Dec. 31, 2009 | Sep. 30, 2009transponder | Nov. 30, 2008transponder | Jun. 30, 2018USD ($)transponder | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)transponder | Jun. 30, 2017USD ($) | Feb. 28, 2013transponder | Mar. 31, 2012 | Sep. 30, 2010USD ($) |
Related party transactions | ||||||||||||||||||||||||
Contribution of EchoStar XIX satellite | $ 369,263,000 | |||||||||||||||||||||||
Contribution of Property | 219,662,000 | |||||||||||||||||||||||
Transfer of launch service contracts to EchoStar | 145,114,000 | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
Ciel | Satellite Capacity Lease Agreement [Member] | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Lessee, Operating Lease, Term of Contract | 10 years | |||||||||||||||||||||||
Additional Paid-In Capital | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Contribution of EchoStar XIX satellite | 369,263,000 | |||||||||||||||||||||||
One-year LIBOR | Related-Party Advances | Minimum | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Variable interest rates | 1.00% | |||||||||||||||||||||||
One-year LIBOR | Related-Party Advances | Maximum | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Variable interest rates | 3.00% | |||||||||||||||||||||||
EchoStar | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 5,200,000 | $ 6,500,000 | $ 9,600,000 | 11,500,000 | ||||||||||||||||||||
Related Party Transactions Agreement Termination Required Notice Period from Related Party, Minimum | 30 days | |||||||||||||||||||||||
EchoStar Operating | DBS Transponder Lease [Member] | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Revenue from Related Parties | 5,800,000 | 5,800,000 | $ 11,700,000 | 11,700,000 | ||||||||||||||||||||
Receivables from related parties | $ 7,600,000 | 5,900,000 | 5,900,000 | |||||||||||||||||||||
EchoStar Mobile Limited | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Revenue from Related Parties | $ 4,700,000 | $ 0 | $ 8,800,000 | $ 0 | ||||||||||||||||||||
DISH Network | Satellite And Tracking Stock Transaction | Hughes Retail Preferred Tracking Stock | Hughes Retail Group | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Percentage of economic interest in the Hughes Retail Group | 80.00% | |||||||||||||||||||||||
DISH Network | TT&C Agreement | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Agreement term | 1 month | 1 year | ||||||||||||||||||||||
Related Party Transactions Agreement Termination Required Notice Period from Related Party, Minimum | 12 months | |||||||||||||||||||||||
DISH Network | TerreStar Agreement | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Related Party Transactions Agreement Termination Required Notice Period from Related Party, Minimum | 21 days | |||||||||||||||||||||||
Required minimum notice for termination of agreement | 90 days | |||||||||||||||||||||||
DISH Network | DBSD North America Agreement | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Related Party Transactions Agreement Termination Required Notice Period from Related Party, Minimum | 120 days | |||||||||||||||||||||||
Required minimum notice for termination of agreement | 21 days | |||||||||||||||||||||||
Ownership interest acquired by related party | 100.00% | |||||||||||||||||||||||
DISH Network | DBSD North America Agreement | Subsequent Event | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||||||
Related Party Transactions Agreement Termination Required Notice Period from Related Party, Minimum | 180 days | |||||||||||||||||||||||
DISH Network | RUS Implementation Agreement | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Grants receivable by related party | $ 14,100,000 | |||||||||||||||||||||||
DISH Network | Amended and Restated Professional Services Agreement [Member] | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Required minimum notice period for termination of agreement by the reporting entity | 180 days | |||||||||||||||||||||||
Related Party Transactions Agreement, Renewal Option, Term | 4 years | 3 years | ||||||||||||||||||||||
DISH Network | Minimum | Collocation and Antenna Space Agreements | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Related Party Transactions Agreement, Renewal Notice Required by Reporting Entity | 90 days | |||||||||||||||||||||||
DISH Network | Maximum | Collocation and Antenna Space Agreements | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Related Party Transactions Agreement, Renewal Notice Required by Reporting Entity | 120 days | |||||||||||||||||||||||
EchoStar XIX | EchoStar | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Contribution of Property | $ 514,400,000 | |||||||||||||||||||||||
Deferred Tax Liabilities, Deferred Expense | 165,100,000 | |||||||||||||||||||||||
EchoStar XIX | EchoStar | Additional Paid-In Capital | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Contribution of EchoStar XIX satellite | $ 349,300,000 | |||||||||||||||||||||||
EchoStar XXI [Member] | EchoStar Operating | Other Noncurrent Assets | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Transfer of launch service contracts to EchoStar | $ (83,300,000) | |||||||||||||||||||||||
EchoStar XXI [Member] | EchoStar Operating | Additional Paid-In Capital | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Transfer of launch service contracts to EchoStar | $ (83,300,000) | |||||||||||||||||||||||
EchoStar XXIII [Member] | EchoStar Operating | Other Noncurrent Assets | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Transfer of launch service contracts to EchoStar | $ (61,800,000) | |||||||||||||||||||||||
EchoStar XXIII [Member] | EchoStar Operating | Additional Paid-In Capital | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Transfer of launch service contracts to EchoStar | $ (61,800,000) | |||||||||||||||||||||||
EchoStar XVI | DISH Network | Satellite Capacity Lease Agreement [Member] | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Lessor, Operating Lease, Term of Contract | 10 years | |||||||||||||||||||||||
Lessor, Operating Lease, Renewal Term | 5 years | 1 year | ||||||||||||||||||||||
Related Party Transactions Agreement Term from Commencement of Service Date | 4 years | |||||||||||||||||||||||
Renewal option reduction in years | 1 year | |||||||||||||||||||||||
Additional term of renewal option | 5 years | |||||||||||||||||||||||
Nimiq5 [Member] | Telesat | Satellite Capacity Lease Agreement [Member] | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Lessee, Operating Lease, Term of Contract | 15 years | |||||||||||||||||||||||
Number of DBS transponders available | transponder | 32 | |||||||||||||||||||||||
Nimiq5 [Member] | DISH Network | Satellite Capacity Lease Agreement [Member] | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Number of DBS transponders available | transponder | 32 | |||||||||||||||||||||||
QuetzSat-1 [Member] | SES Latin America | Satellite Capacity Lease Agreement [Member] | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Lessee, Operating Lease, Term of Contract | 10 years | |||||||||||||||||||||||
Related Party Transactions Number of DBS Transponders Expected to Receive Services Per Agreement | transponder | 32 | |||||||||||||||||||||||
QuetzSat-1 [Member] | EchoStar Operating | DBS Transponder Lease [Member] | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Number of DBS transponders currently receiving services | transponder | 8 | 8 | ||||||||||||||||||||||
QuetzSat-1 [Member] | DISH Network | Satellite Capacity Lease Agreement [Member] | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Number of DBS transponders currently receiving services | transponder | 24 | |||||||||||||||||||||||
Number of DBS transponders currently receiving services subleased back from related party | transponder | 5 | |||||||||||||||||||||||
Related Party Transactions, Lessor, Operating Lease, Real Estate [Member] | DISH Network | Cheyenne Lease Agreement [Member] | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Related Party Transactions, Required Minimum Notice Period for Termination of Agreement After Lease Extension | 30 days | |||||||||||||||||||||||
Related Party Transactions, Lessee, Operating Lease, Real Estate | DISH Network | American Fork Occupancy License Agreement [Member] | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Lessee, Operating Lease, Term of Contract | 5 years | |||||||||||||||||||||||
6 1/2% Senior Secured Notes due 2019 | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Interest rate | 6.50% | 6.50% | 6.50% | |||||||||||||||||||||
5 1/4% Senior Secured Notes due 2026 | ||||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||||
Interest rate | 5.25% | 5.25% | 5.25% |
Related Party Transactions (D56
Related Party Transactions (Details 2) $ in Millions | Mar. 02, 2014USD ($)satellite | Mar. 31, 2017 | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Feb. 28, 2017 | Oct. 01, 2013subsidiary |
California Institute Of Technology | ||||||||
Related party transactions | ||||||||
Number of Subsidiaries Against which Lawsuit Filed | subsidiary | 2 | |||||||
Satellite And Tracking Stock Transaction | DISH Network | ||||||||
Related party transactions | ||||||||
Proceeds from issuance of Tracking Stock | $ 11.4 | |||||||
Hughes Broadband Master Services Agreement [Member] | DISH Network | ||||||||
Related party transactions | ||||||||
Agreement term | 5 years | |||||||
Automatic renewal period | 1 year | |||||||
Required minimum notice for termination of agreement | 90 days | |||||||
Contract Revenue Cost | $ 6.2 | $ 4.8 | $ 19.9 | $ 4.8 | ||||
EchoStar and HSSC | Satellite And Tracking Stock Transaction | DISH Network | ||||||||
Related party transactions | ||||||||
Related Party Transactions Number of Owned Satellites Transferred | satellite | 5 | |||||||
EchoStar Technologies Business | Share Exchange Agreement | DISH Network | ||||||||
Related party transactions | ||||||||
Ownership interest acquired by related party | 100.00% |
Related Party Transactions (D57
Related Party Transactions (Details 3) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Hughes Systique | |||||
Related party transactions | |||||
Ownership interest in related party | 43.70% | ||||
Ownership interest percentage by related party | 25.60% | ||||
Deluxe/EchoStar LLC | |||||
Related party transactions | |||||
Equity interest in joint ventures | 50.00% | 50.00% | |||
Revenue from Related Parties | $ 1,100,000 | $ 1,100,000 | $ 2,200,000 | $ 2,400,000 | |
Receivables from related parties | 1,000,000 | 1,000,000 | $ 1,100,000 | ||
AsiaSat | |||||
Related party transactions | |||||
Related Party Transaction, Expenses from Transactions with Related Party | 0 | 0 | |||
Global IP Revenue [Member] | |||||
Related party transactions | |||||
Revenue from Related Parties | 500,000 | $ 0 | 600,000 | $ 0 | |
TerreStar Solutions, Inc. [Member] | |||||
Related party transactions | |||||
Revenue from Related Parties | $ 300,000 | $ 300,000 | |||
Cost Method Investment Nonvoting Interest Ownership Percentage | 33.00% | 33.00% | |||
Receivables from related parties | $ 1,100,000 | $ 1,100,000 |
Supplemental Guarantor and No58
Supplemental Guarantor and Non-Guarantor Financial Information (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Cash and cash equivalents | $ 1,509,238 | $ 1,822,561 | |
Marketable investment securities, at fair value | 993,126 | 455,602 | |
Trade accounts receivable and contract assets, net | 186,956 | $ 189,737 | 196,840 |
Trade accounts receivable - DISH Network | 25,703 | 38,641 | 38,641 |
Inventory | 81,388 | 83,595 | |
Advances to affiliates, net | 103,631 | 114,858 | |
Other current assets | 59,925 | 130,341 | |
Total current assets | 2,959,967 | 2,842,438 | |
Property and equipment, net | 2,642,664 | 2,753,098 | |
Regulatory authorizations | 465,658 | 465,658 | |
Goodwill | 504,173 | 504,173 | |
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively | 51,267 | 58,582 | |
Investments in unconsolidated entities | 28,317 | 30,587 | |
Investment in subsidiaries | 0 | 0 | |
Advances to affiliates | 0 | 0 | |
Deferred tax asset | 8,229 | 3,700 | |
Other noncurrent assets, net | 239,673 | 199,114 | |
Total assets | 6,899,948 | 6,873,325 | 6,857,350 |
Liabilities and Shareholders’ Equity (Deficit) | |||
Trade accounts payable | 97,116 | 102,816 | |
Trade accounts payable - DISH Network | 445 | 3,769 | |
Current portion of long-term debt and capital lease obligations | 1,028,119 | 40,631 | |
Advances from affiliates, net | 771 | 477 | |
Accrued expenses and other | 221,190 | 235,227 | |
Total current liabilities | 1,347,641 | 382,920 | |
Long-term debt and capital lease obligations, net | 2,592,174 | 3,594,213 | |
Deferred tax liabilities, net | 464,722 | 439,631 | |
Advances from affiliates | 33,525 | 33,715 | |
Other non-current liabilities | 104,289 | 107,627 | |
Total HSS shareholders’ equity (deficit) | 2,342,732 | 2,284,422 | |
Noncontrolling interests | 14,865 | 14,822 | |
Total liabilities and shareholders’ equity | 6,899,948 | $ 6,873,325 | 6,857,350 |
Eliminations | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Marketable investment securities, at fair value | 0 | 0 | |
Trade accounts receivable and contract assets, net | 0 | 0 | |
Trade accounts receivable - DISH Network | 0 | 0 | |
Inventory | 0 | 0 | |
Advances to affiliates, net | (321,553) | (241,548) | |
Other current assets | (87) | (401) | |
Total current assets | (321,640) | (241,949) | |
Property and equipment, net | 0 | 0 | |
Regulatory authorizations | 0 | 0 | |
Goodwill | 0 | 0 | |
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively | 0 | 0 | |
Investments in unconsolidated entities | 0 | 0 | |
Investment in subsidiaries | (3,437,218) | (3,464,998) | |
Advances to affiliates | (87,361) | (81,444) | |
Deferred tax asset | (130,728) | (110,546) | |
Other noncurrent assets, net | 0 | 0 | |
Total assets | (3,976,947) | (3,898,937) | |
Liabilities and Shareholders’ Equity (Deficit) | |||
Trade accounts payable | 0 | 0 | |
Trade accounts payable - DISH Network | 0 | 0 | |
Current portion of long-term debt and capital lease obligations | 0 | 0 | |
Advances from affiliates, net | (321,553) | (241,548) | |
Accrued expenses and other | (87) | (401) | |
Total current liabilities | (321,640) | (241,949) | |
Long-term debt and capital lease obligations, net | 0 | 0 | |
Deferred tax liabilities, net | (130,728) | (110,546) | |
Advances from affiliates | (87,361) | (81,444) | |
Other non-current liabilities | 0 | 0 | |
Total HSS shareholders’ equity (deficit) | (3,437,218) | (3,464,998) | |
Noncontrolling interests | 0 | 0 | |
Total liabilities and shareholders’ equity | (3,976,947) | (3,898,937) | |
HSS | |||
Assets | |||
Cash and cash equivalents | 1,439,619 | 1,746,878 | |
Marketable investment securities, at fair value | 991,913 | 454,500 | |
Trade accounts receivable and contract assets, net | 0 | 0 | |
Trade accounts receivable - DISH Network | 0 | 0 | |
Inventory | 0 | 0 | |
Advances to affiliates, net | 7,829 | 119,605 | |
Other current assets | 109 | 64 | |
Total current assets | 2,439,470 | 2,321,047 | |
Property and equipment, net | 0 | 0 | |
Regulatory authorizations | 0 | 0 | |
Goodwill | 0 | 0 | |
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively | 0 | 0 | |
Investments in unconsolidated entities | 0 | 0 | |
Investment in subsidiaries | 3,249,869 | 3,260,790 | |
Advances to affiliates | 700 | 700 | |
Deferred tax asset | 130,728 | 110,546 | |
Other noncurrent assets, net | 0 | 0 | |
Total assets | 5,820,767 | 5,693,083 | |
Liabilities and Shareholders’ Equity (Deficit) | |||
Trade accounts payable | 0 | 0 | |
Trade accounts payable - DISH Network | 0 | 0 | |
Current portion of long-term debt and capital lease obligations | 985,773 | 0 | |
Advances from affiliates, net | 63,264 | 0 | |
Accrued expenses and other | 45,723 | 43,518 | |
Total current liabilities | 1,094,760 | 43,518 | |
Long-term debt and capital lease obligations, net | 2,383,275 | 3,365,143 | |
Deferred tax liabilities, net | 0 | 0 | |
Advances from affiliates | 0 | 0 | |
Other non-current liabilities | 0 | 0 | |
Total HSS shareholders’ equity (deficit) | 2,342,732 | 2,284,422 | |
Noncontrolling interests | 0 | 0 | |
Total liabilities and shareholders’ equity | 5,820,767 | 5,693,083 | |
Guarantor Subsidiaries | |||
Assets | |||
Cash and cash equivalents | 42,385 | 42,373 | |
Marketable investment securities, at fair value | 1,213 | 1,102 | |
Trade accounts receivable and contract assets, net | 122,726 | 133,735 | |
Trade accounts receivable - DISH Network | 25,217 | 38,286 | |
Inventory | 54,030 | 59,711 | |
Advances to affiliates, net | 399,924 | 229,488 | |
Other current assets | 25,111 | 98,890 | |
Total current assets | 670,606 | 603,585 | |
Property and equipment, net | 2,371,631 | 2,459,703 | |
Regulatory authorizations | 465,658 | 465,658 | |
Goodwill | 504,173 | 504,173 | |
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively | 51,267 | 58,582 | |
Investments in unconsolidated entities | 28,317 | 30,587 | |
Investment in subsidiaries | 187,349 | 204,208 | |
Advances to affiliates | 86,661 | 80,744 | |
Deferred tax asset | 0 | 0 | |
Other noncurrent assets, net | 228,965 | 185,839 | |
Total assets | 4,594,627 | 4,593,079 | |
Liabilities and Shareholders’ Equity (Deficit) | |||
Trade accounts payable | 85,524 | 82,300 | |
Trade accounts payable - DISH Network | 445 | 3,769 | |
Current portion of long-term debt and capital lease obligations | 37,888 | 35,886 | |
Advances from affiliates, net | 185,102 | 185,161 | |
Accrued expenses and other | 132,295 | 145,362 | |
Total current liabilities | 441,254 | 452,478 | |
Long-term debt and capital lease obligations, net | 207,540 | 226,997 | |
Deferred tax liabilities, net | 594,493 | 549,217 | |
Advances from affiliates | 0 | 0 | |
Other non-current liabilities | 101,884 | 104,249 | |
Total HSS shareholders’ equity (deficit) | 3,249,456 | 3,260,138 | |
Noncontrolling interests | 0 | 0 | |
Total liabilities and shareholders’ equity | 4,594,627 | 4,593,079 | |
Non-Guarantor Subsidiaries | |||
Assets | |||
Cash and cash equivalents | 27,234 | 33,310 | |
Marketable investment securities, at fair value | 0 | 0 | |
Trade accounts receivable and contract assets, net | 64,230 | 63,105 | |
Trade accounts receivable - DISH Network | 486 | 355 | |
Inventory | 27,358 | 23,884 | |
Advances to affiliates, net | 17,431 | 7,313 | |
Other current assets | 34,792 | 31,788 | |
Total current assets | 171,531 | 159,755 | |
Property and equipment, net | 271,033 | 293,395 | |
Regulatory authorizations | 0 | 0 | |
Goodwill | 0 | 0 | |
Other intangible assets, net of accumulated amortization of $300,133 and $292,835, respectively | 0 | 0 | |
Investments in unconsolidated entities | 0 | 0 | |
Investment in subsidiaries | 0 | 0 | |
Advances to affiliates | 0 | 0 | |
Deferred tax asset | 8,229 | 3,700 | |
Other noncurrent assets, net | 10,708 | 13,275 | |
Total assets | 461,501 | 470,125 | |
Liabilities and Shareholders’ Equity (Deficit) | |||
Trade accounts payable | 11,592 | 20,516 | |
Trade accounts payable - DISH Network | 0 | 0 | |
Current portion of long-term debt and capital lease obligations | 4,458 | 4,745 | |
Advances from affiliates, net | 73,958 | 56,864 | |
Accrued expenses and other | 43,259 | 46,748 | |
Total current liabilities | 133,267 | 128,873 | |
Long-term debt and capital lease obligations, net | 1,359 | 2,073 | |
Deferred tax liabilities, net | 957 | 960 | |
Advances from affiliates | 120,886 | 115,159 | |
Other non-current liabilities | 2,405 | 3,378 | |
Total HSS shareholders’ equity (deficit) | 187,762 | 204,860 | |
Noncontrolling interests | 14,865 | 14,822 | |
Total liabilities and shareholders’ equity | $ 461,501 | $ 470,125 |
Supplemental Guarantor and No59
Supplemental Guarantor and Non-Guarantor Financial Information (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Services and other revenue - DISH Network | $ 97,140 | $ 110,921 | $ 197,754 | $ 222,411 |
Services and other revenue - other | 380,115 | 285,055 | 739,449 | 555,278 |
Equipment revenue | 50,341 | 66,289 | 93,288 | 114,694 |
Total revenue | 527,596 | 462,265 | 1,030,491 | 892,383 |
Costs and expenses: | ||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 150,223 | 137,274 | 297,878 | 271,578 |
Cost of sales - equipment (exclusive of depreciation and amortization) | 41,865 | 53,662 | 80,936 | 94,483 |
Selling, general and administrative expenses | 93,375 | 86,115 | 188,025 | 160,493 |
Research and development expenses | 6,647 | 7,437 | 13,784 | 15,142 |
Depreciation and amortization | 136,708 | 124,743 | 270,426 | 236,963 |
Total costs and expenses | 428,818 | 409,231 | 851,049 | 778,659 |
Operating income | 98,778 | 53,034 | 179,442 | 113,724 |
Other income (expense): | ||||
Interest income | 14,286 | 7,086 | 25,665 | 12,927 |
Interest expense, net of amounts capitalized | (64,122) | (61,376) | (128,535) | (121,213) |
Gain (Loss) on Investments | 509 | 1,632 | 117 | (1,575) |
Equity in earnings of unconsolidated affiliate | 1,238 | 1,639 | 2,730 | 3,350 |
Equity in earnings (losses) of subsidiaries, net | 0 | 0 | 0 | 0 |
Other, net | 467 | (2,222) | (146) | (1,575) |
Total other expense, net | (47,622) | (53,241) | (100,169) | (108,086) |
Income (loss) before income taxes | 51,156 | (207) | 79,273 | 5,638 |
Income tax benefit (provision) | (10,463) | 509 | (18,199) | 4,091 |
Net income (loss) | 40,693 | 302 | 61,074 | 9,729 |
Less: Net income attributable to noncontrolling interests | 462 | 182 | 842 | 474 |
Net income attributable to HSS | 40,231 | 120 | 60,232 | 9,255 |
Comprehensive Income (Loss): | ||||
Net income (loss) | 40,693 | 302 | 61,074 | 9,729 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | (32,314) | (6,736) | (30,414) | 5,385 |
Unrealized gains (losses) on available-for-sale securities and other | 329 | (11) | (82) | (1,511) |
Other-than-temporary impairment loss on available-for-sale securities in net income | 0 | 0 | 0 | 3,298 |
Realized gains on available-for-sale securities in net income | (3) | 0 | (3) | 0 |
Equity in other comprehensive income (loss) of subsidiaries, net | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | (31,988) | (6,747) | (30,499) | 7,172 |
Comprehensive income (loss) | 8,705 | (6,445) | 30,575 | 16,901 |
Less: Comprehensive income attributable to noncontrolling interests | (123) | 182 | 43 | 474 |
Comprehensive income (loss) attributable to HSS | 8,828 | (6,627) | 30,532 | 16,427 |
Eliminations | ||||
Revenue: | ||||
Services and other revenue - DISH Network | 0 | 0 | 0 | 0 |
Services and other revenue - other | (9,139) | (6,917) | (18,989) | (12,429) |
Equipment revenue | (7,859) | (20,575) | (15,928) | (28,082) |
Total revenue | (16,998) | (27,492) | (34,917) | (40,511) |
Costs and expenses: | ||||
Cost of sales - services and other (exclusive of depreciation and amortization) | (8,545) | (5,656) | (17,942) | (11,011) |
Cost of sales - equipment (exclusive of depreciation and amortization) | (7,891) | (21,167) | (15,928) | (28,027) |
Selling, general and administrative expenses | (562) | (669) | (1,047) | (1,473) |
Research and development expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total costs and expenses | (16,998) | (27,492) | (34,917) | (40,511) |
Operating income | 0 | 0 | 0 | 0 |
Other income (expense): | ||||
Interest income | (1,599) | (199) | (1,798) | (398) |
Interest expense, net of amounts capitalized | 1,599 | 199 | 1,798 | 398 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated affiliate | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of subsidiaries, net | (66,019) | (28,640) | (118,581) | (64,298) |
Other, net | 0 | 0 | 0 | 0 |
Total other expense, net | (66,019) | (28,640) | (118,581) | (64,298) |
Income (loss) before income taxes | (66,019) | (28,640) | (118,581) | (64,298) |
Income tax benefit (provision) | 0 | 0 | 0 | 0 |
Net income (loss) | (66,019) | (28,640) | (118,581) | (64,298) |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to HSS | (66,019) | (28,640) | (118,581) | (64,298) |
Comprehensive Income (Loss): | ||||
Net income (loss) | (66,019) | (28,640) | (118,581) | (64,298) |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on available-for-sale securities and other | 0 | 0 | 0 | 0 |
Other-than-temporary impairment loss on available-for-sale securities in net income | 0 | |||
Realized gains on available-for-sale securities in net income | 0 | 0 | ||
Equity in other comprehensive income (loss) of subsidiaries, net | 63,740 | 13,538 | 59,712 | (12,630) |
Total other comprehensive income (loss), net of tax | 63,740 | 13,538 | 59,712 | (12,630) |
Comprehensive income (loss) | (2,279) | (15,102) | (58,869) | (76,928) |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to HSS | (2,279) | (15,102) | (58,869) | (76,928) |
HSS | ||||
Revenue: | ||||
Services and other revenue - DISH Network | 0 | 0 | 0 | 0 |
Services and other revenue - other | 0 | 0 | 0 | 0 |
Equipment revenue | 0 | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 0 | 0 | 0 | 0 |
Cost of sales - equipment (exclusive of depreciation and amortization) | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Research and development expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total costs and expenses | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Other income (expense): | ||||
Interest income | 13,768 | 6,733 | 24,529 | 12,223 |
Interest expense, net of amounts capitalized | (57,479) | (57,336) | (114,924) | (114,635) |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated affiliate | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of subsidiaries, net | 74,180 | 33,078 | 130,439 | 74,937 |
Other, net | 3 | 0 | 6 | 0 |
Total other expense, net | 30,472 | (17,525) | 40,050 | (27,475) |
Income (loss) before income taxes | 30,472 | (17,525) | 40,050 | (27,475) |
Income tax benefit (provision) | 9,759 | 17,645 | 20,182 | 36,730 |
Net income (loss) | 40,231 | 120 | 60,232 | 9,255 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to HSS | 40,231 | 120 | 60,232 | 9,255 |
Comprehensive Income (Loss): | ||||
Net income (loss) | 40,231 | 120 | 60,232 | 9,255 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on available-for-sale securities and other | 470 | (21) | 159 | (48) |
Other-than-temporary impairment loss on available-for-sale securities in net income | 0 | |||
Realized gains on available-for-sale securities in net income | (3) | (3) | ||
Equity in other comprehensive income (loss) of subsidiaries, net | (31,870) | (6,726) | (29,856) | 7,220 |
Total other comprehensive income (loss), net of tax | (31,403) | (6,747) | (29,700) | 7,172 |
Comprehensive income (loss) | 8,828 | (6,627) | 30,532 | 16,427 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to HSS | 8,828 | (6,627) | 30,532 | 16,427 |
Guarantor Subsidiaries | ||||
Revenue: | ||||
Services and other revenue - DISH Network | 96,653 | 110,388 | 196,740 | 221,692 |
Services and other revenue - other | 331,875 | 248,361 | 643,983 | 489,733 |
Equipment revenue | 53,643 | 81,831 | 100,052 | 133,066 |
Total revenue | 482,171 | 440,580 | 940,775 | 844,491 |
Costs and expenses: | ||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 122,259 | 112,989 | 241,585 | 222,938 |
Cost of sales - equipment (exclusive of depreciation and amortization) | 46,217 | 70,297 | 89,860 | 114,704 |
Selling, general and administrative expenses | 82,477 | 75,035 | 165,869 | 140,720 |
Research and development expenses | 6,647 | 7,437 | 13,784 | 15,142 |
Depreciation and amortization | 124,249 | 116,193 | 245,588 | 221,640 |
Total costs and expenses | 381,849 | 381,951 | 756,686 | 715,144 |
Operating income | 100,322 | 58,629 | 184,089 | 129,347 |
Other income (expense): | ||||
Interest income | 1,609 | 231 | 1,925 | 433 |
Interest expense, net of amounts capitalized | (6,574) | (4,797) | (13,530) | (8,019) |
Gain (Loss) on Investments | 509 | 1,632 | 117 | (1,575) |
Equity in earnings of unconsolidated affiliate | 1,238 | 1,639 | 2,730 | 3,350 |
Equity in earnings (losses) of subsidiaries, net | (8,161) | (4,438) | (11,858) | (10,639) |
Other, net | 9,489 | (702) | 9,392 | (840) |
Total other expense, net | (1,890) | (6,435) | (11,224) | (17,290) |
Income (loss) before income taxes | 98,432 | 52,194 | 172,865 | 112,057 |
Income tax benefit (provision) | (24,103) | (19,026) | (42,187) | (36,882) |
Net income (loss) | 74,329 | 33,168 | 130,678 | 75,175 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to HSS | 74,329 | 33,168 | 130,678 | 75,175 |
Comprehensive Income (Loss): | ||||
Net income (loss) | 74,329 | 33,168 | 130,678 | 75,175 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on available-for-sale securities and other | 0 | 86 | 0 | (1,488) |
Other-than-temporary impairment loss on available-for-sale securities in net income | 3,298 | |||
Realized gains on available-for-sale securities in net income | 0 | 0 | ||
Equity in other comprehensive income (loss) of subsidiaries, net | (31,870) | (6,812) | (29,856) | 5,410 |
Total other comprehensive income (loss), net of tax | (31,870) | (6,726) | (29,856) | 7,220 |
Comprehensive income (loss) | 42,459 | 26,442 | 100,822 | 82,395 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to HSS | 42,459 | 26,442 | 100,822 | 82,395 |
Non-Guarantor Subsidiaries | ||||
Revenue: | ||||
Services and other revenue - DISH Network | 487 | 533 | 1,014 | 719 |
Services and other revenue - other | 57,379 | 43,611 | 114,455 | 77,974 |
Equipment revenue | 4,557 | 5,033 | 9,164 | 9,710 |
Total revenue | 62,423 | 49,177 | 124,633 | 88,403 |
Costs and expenses: | ||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 36,509 | 29,941 | 74,235 | 59,651 |
Cost of sales - equipment (exclusive of depreciation and amortization) | 3,539 | 4,532 | 7,004 | 7,806 |
Selling, general and administrative expenses | 11,460 | 11,749 | 23,203 | 21,246 |
Research and development expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 12,459 | 8,550 | 24,838 | 15,323 |
Total costs and expenses | 63,967 | 54,772 | 129,280 | 104,026 |
Operating income | (1,544) | (5,595) | (4,647) | (15,623) |
Other income (expense): | ||||
Interest income | 508 | 321 | 1,009 | 669 |
Interest expense, net of amounts capitalized | (1,668) | 558 | (1,879) | 1,043 |
Gain (Loss) on Investments | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated affiliate | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of subsidiaries, net | 0 | 0 | 0 | 0 |
Other, net | (9,025) | (1,520) | (9,544) | (735) |
Total other expense, net | (10,185) | (641) | (10,414) | 977 |
Income (loss) before income taxes | (11,729) | (6,236) | (15,061) | (14,646) |
Income tax benefit (provision) | 3,881 | 1,890 | 3,806 | 4,243 |
Net income (loss) | (7,848) | (4,346) | (11,255) | (10,403) |
Less: Net income attributable to noncontrolling interests | 462 | 182 | 842 | 474 |
Net income attributable to HSS | (8,310) | (4,528) | (12,097) | (10,877) |
Comprehensive Income (Loss): | ||||
Net income (loss) | (7,848) | (4,346) | (11,255) | (10,403) |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | (32,314) | (6,736) | (30,414) | 5,385 |
Unrealized gains (losses) on available-for-sale securities and other | (141) | (76) | (241) | 25 |
Other-than-temporary impairment loss on available-for-sale securities in net income | 0 | |||
Realized gains on available-for-sale securities in net income | 0 | 0 | ||
Equity in other comprehensive income (loss) of subsidiaries, net | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss), net of tax | (32,455) | (6,812) | (30,655) | 5,410 |
Comprehensive income (loss) | (40,303) | (11,158) | (41,910) | (4,993) |
Less: Comprehensive income attributable to noncontrolling interests | (123) | 182 | 43 | 474 |
Comprehensive income (loss) attributable to HSS | $ (40,180) | $ (11,340) | $ (41,953) | $ (5,467) |
Supplemental Guarantor and No60
Supplemental Guarantor and Non-Guarantor Financial Information (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ 40,693 | $ 302 | $ 61,074 | $ 9,729 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | 300,051 | 179,515 | ||
Net cash flows from operating activities | 361,125 | 189,244 | ||
Cash flows from investing activities: | ||||
Purchases of marketable investment securities | (1,098,527) | (992) | ||
Sales and maturities of marketable investment securities | 560,194 | 118,648 | ||
Expenditures for property and equipment | (175,644) | (175,344) | ||
Refunds and other receipts related to property and equipment | 77,524 | 0 | ||
Expenditures for externally marketed software | (15,000) | (17,119) | ||
Payment for satellite launch services | (7,125) | 0 | ||
Distributions (contributions) and advances from (to) subsidiaries, net | 0 | 0 | ||
Net cash flows from investing activities | (658,578) | (74,807) | ||
Cash flows from financing activities: | ||||
Contributions (distributions) and advances (to) from parent, net | 0 | 0 | ||
Repayment of debt and capital lease obligations | (18,417) | (17,111) | ||
Advances from (to) affiliates, net | (36) | |||
Capital contribution from EchoStar Corporation | (7,125) | 0 | ||
Payment of in-orbit incentive obligations | (2,718) | (3,194) | ||
Other, net | 0 | 1,312 | ||
Net cash flows from financing activities | (14,010) | (19,029) | ||
Effect of exchange rates on cash and cash equivalents | (1,865) | 925 | ||
Net increase (decrease) in cash and cash equivalents, including restricted amounts | (313,328) | 96,333 | ||
Cash and cash equivalents, including restricted amounts, beginning of period | 1,823,354 | 2,071,687 | ||
Cash and cash equivalents, including restricted amounts, end of period | 1,510,026 | 2,168,020 | 1,510,026 | 2,168,020 |
Eliminations | ||||
Cash flows from operating activities: | ||||
Net income (loss) | (66,019) | (28,640) | (118,581) | (64,298) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | 118,581 | 64,298 | ||
Net cash flows from operating activities | 0 | 0 | ||
Cash flows from investing activities: | ||||
Purchases of marketable investment securities | 0 | 0 | ||
Sales and maturities of marketable investment securities | 0 | 0 | ||
Expenditures for property and equipment | 0 | 0 | ||
Refunds and other receipts related to property and equipment | 0 | |||
Expenditures for externally marketed software | 0 | 0 | ||
Distributions (contributions) and advances from (to) subsidiaries, net | (283,743) | 75,025 | ||
Net cash flows from investing activities | (283,743) | 75,025 | ||
Cash flows from financing activities: | ||||
Contributions (distributions) and advances (to) from parent, net | 283,743 | (75,025) | ||
Repayment of debt and capital lease obligations | 0 | 0 | ||
Advances from (to) affiliates, net | 0 | |||
Payment of in-orbit incentive obligations | 0 | 0 | ||
Other, net | 0 | |||
Net cash flows from financing activities | 283,743 | (75,025) | ||
Effect of exchange rates on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents, including restricted amounts | 0 | 0 | ||
Cash and cash equivalents, including restricted amounts, beginning of period | 0 | 0 | ||
Cash and cash equivalents, including restricted amounts, end of period | 0 | 0 | 0 | 0 |
HSS | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 40,231 | 120 | 60,232 | 9,255 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | (143,241) | 22,394 | ||
Net cash flows from operating activities | (83,009) | 31,649 | ||
Cash flows from investing activities: | ||||
Purchases of marketable investment securities | (1,098,527) | (992) | ||
Sales and maturities of marketable investment securities | 560,194 | 118,648 | ||
Expenditures for property and equipment | 0 | 0 | ||
Refunds and other receipts related to property and equipment | 0 | |||
Expenditures for externally marketed software | 0 | 0 | ||
Distributions (contributions) and advances from (to) subsidiaries, net | 306,958 | (36,000) | ||
Net cash flows from investing activities | (231,375) | 81,656 | ||
Cash flows from financing activities: | ||||
Contributions (distributions) and advances (to) from parent, net | 0 | 0 | ||
Repayment of debt and capital lease obligations | 0 | 0 | ||
Advances from (to) affiliates, net | 0 | |||
Capital contribution from EchoStar Corporation | (7,125) | |||
Payment of in-orbit incentive obligations | 0 | 0 | ||
Other, net | 426 | |||
Net cash flows from financing activities | 7,125 | 426 | ||
Effect of exchange rates on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents, including restricted amounts | (307,259) | 113,731 | ||
Cash and cash equivalents, including restricted amounts, beginning of period | 1,746,878 | 1,991,949 | ||
Cash and cash equivalents, including restricted amounts, end of period | 1,439,619 | 2,105,680 | 1,439,619 | 2,105,680 |
Guarantor Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 74,329 | 33,168 | 130,678 | 75,175 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | 305,364 | 80,566 | ||
Net cash flows from operating activities | 436,042 | 155,741 | ||
Cash flows from investing activities: | ||||
Purchases of marketable investment securities | 0 | 0 | ||
Sales and maturities of marketable investment securities | 0 | 0 | ||
Expenditures for property and equipment | (148,208) | (141,385) | ||
Refunds and other receipts related to property and equipment | 77,524 | |||
Expenditures for externally marketed software | (15,000) | (17,119) | ||
Distributions (contributions) and advances from (to) subsidiaries, net | (23,215) | (39,025) | ||
Net cash flows from investing activities | (108,899) | (197,529) | ||
Cash flows from financing activities: | ||||
Contributions (distributions) and advances (to) from parent, net | (306,958) | 36,000 | ||
Repayment of debt and capital lease obligations | (17,455) | (15,648) | ||
Advances from (to) affiliates, net | 0 | |||
Capital contribution from EchoStar Corporation | 0 | |||
Payment of in-orbit incentive obligations | (2,718) | (3,194) | ||
Other, net | 0 | |||
Net cash flows from financing activities | (327,131) | 17,158 | ||
Effect of exchange rates on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents, including restricted amounts | 12 | (24,630) | ||
Cash and cash equivalents, including restricted amounts, beginning of period | 42,373 | 53,905 | ||
Cash and cash equivalents, including restricted amounts, end of period | 42,385 | 29,275 | 42,385 | 29,275 |
Non-Guarantor Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net income (loss) | (7,848) | (4,346) | (11,255) | (10,403) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | 19,347 | 12,257 | ||
Net cash flows from operating activities | 8,092 | 1,854 | ||
Cash flows from investing activities: | ||||
Purchases of marketable investment securities | 0 | 0 | ||
Sales and maturities of marketable investment securities | 0 | 0 | ||
Expenditures for property and equipment | (27,436) | (33,959) | ||
Refunds and other receipts related to property and equipment | 0 | |||
Expenditures for externally marketed software | 0 | 0 | ||
Payment for satellite launch services | (7,125) | |||
Distributions (contributions) and advances from (to) subsidiaries, net | 0 | 0 | ||
Net cash flows from investing activities | (34,561) | (33,959) | ||
Cash flows from financing activities: | ||||
Contributions (distributions) and advances (to) from parent, net | 23,215 | 39,025 | ||
Repayment of debt and capital lease obligations | (962) | (1,463) | ||
Advances from (to) affiliates, net | (36) | |||
Payment of in-orbit incentive obligations | 0 | 0 | ||
Other, net | 886 | |||
Net cash flows from financing activities | 22,253 | 38,412 | ||
Effect of exchange rates on cash and cash equivalents | (1,865) | 925 | ||
Net increase (decrease) in cash and cash equivalents, including restricted amounts | (6,081) | 7,232 | ||
Cash and cash equivalents, including restricted amounts, beginning of period | 34,103 | 25,833 | ||
Cash and cash equivalents, including restricted amounts, end of period | $ 28,022 | $ 33,065 | $ 28,022 | $ 33,065 |
Supplemental Financial Inform61
Supplemental Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | ||||||
Property and equipment financed under capital lease obligations | $ 123 | $ 8,189 | ||||
Decrease in capital expenditures included in accounts payable, net | (1,158) | (2,120) | ||||
Transfer of launch service contracts from (to) EchoStar | (145,114) | |||||
Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1) | 219,662 | |||||
Noncash net assets exchanged for HSS Tracking Stock (Note 1) | (190,221) | |||||
Capitalized in-orbit incentive obligations | 31,000 | |||||
Contribution of EchoStar XIX satellite | 514,448 | |||||
Research and Development Expense [Abstract] | ||||||
Research and development expenses | $ 6,647 | $ 7,437 | 13,784 | 15,142 | ||
Capitalized Software Costs | ||||||
Payments to Develop Software | 15,000 | 17,119 | ||||
Cost of Sales | ||||||
Research and Development Expense [Abstract] | ||||||
Research and development expenses | 6,290 | 6,785 | 12,888 | 13,686 | ||
Research and Development Expense | ||||||
Research and Development Expense [Abstract] | ||||||
Research and development expenses | 6,647 | 7,437 | 13,784 | 15,142 | ||
Contract Acquisition Costs | ||||||
Capitalized Contract Cost [Abstract] | ||||||
Capitalized Contract Cost, Net | 103,600 | 103,600 | ||||
Capitalized Contract Cost, Amortization | 20,700 | 40,700 | ||||
Contract Fulfillment Costs | ||||||
Capitalized Contract Cost [Abstract] | ||||||
Capitalized Contract Cost, Net | 3,300 | 3,300 | ||||
Other Noncurrent Assets | ||||||
Capitalized Software Costs | ||||||
Capitalized Computer Software, Net | 91,900 | 91,900 | $ 88,100 | |||
Capitalized Software Development Costs for Software Sold to Customers | 28,300 | 28,300 | 19,600 | |||
Payments to Develop Software | 7,900 | 6,300 | 15,000 | 17,100 | ||
Capitalized Computer Software, Amortization | 5,600 | 5,300 | 11,100 | 8,600 | ||
Level 2 | ||||||
Fair Value Measurements | ||||||
Obligations, Fair Value Disclosure | 96,600 | 96,600 | 99,300 | |||
Accounting Standards Update 2016-18 | ||||||
Restricted Cash and Cash Equivalents [Abstract] | ||||||
Restricted Cash | $ 800 | $ 800 | $ 800 | $ 800 | $ 800 | $ 700 |
Weighted Average | ||||||
Capitalized Software Costs | ||||||
Software Useful Life | 4 years |