Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 29, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 333-179121 | |
Entity Registrant Name | Hughes Satellite Systems Corporation | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 45-0897865 | |
Entity Address, Address Line One | 100 Inverness Terrace East, | |
Entity Address, City or Town | Englewood, | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112-5308 | |
City Area Code | (303) | |
Local Phone Number | 706-4000 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,078 | |
Entity Central Index Key | 0001533758 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,076,271 | $ 847,823 |
Marketable investment securities, at fair value | 695,596 | 1,609,196 |
Trade accounts receivable and contract assets, net (Note 3) | 200,779 | 201,096 |
Trade accounts receivable - DISH Network | 13,182 | 13,550 |
Inventory | 82,677 | 75,379 |
Prepaids and deposits | 52,678 | 45,198 |
Advances to affiliates, net | 73,836 | 103,550 |
Other current assets | 17,379 | 18,539 |
Current assets of discontinued operations | 5,866 | 3,483 |
Total current assets | 2,218,264 | 2,917,814 |
Noncurrent assets: | ||
Property and equipment, net | 1,786,236 | 1,921,911 |
Operating lease right-of-use assets | 111,011 | |
Goodwill | 504,173 | 504,173 |
Regulatory authorizations | 400,000 | 400,043 |
Other intangible assets, net | 32,979 | 43,952 |
Investments in unconsolidated entities | 118,574 | 126,369 |
Advances to affiliates | 19,284 | 0 |
Other noncurrent assets, net | 229,003 | 236,449 |
Noncurrent assets of discontinued operations | 0 | 742,461 |
Total noncurrent assets | 3,201,260 | 3,975,358 |
Total assets | 5,419,524 | 6,893,172 |
Current liabilities: | ||
Trade accounts payable | 119,252 | 104,751 |
Trade accounts payable - DISH Network | 87 | 752 |
Current portion of long-term debt and finance lease obligations | 407 | 919,582 |
Advances from affiliates, net | 852 | 868 |
Contract liabilities | 109,557 | 72,249 |
Accrued interest | 36,849 | 45,131 |
Accrued compensation | 35,701 | 42,796 |
Accrued taxes | 9,278 | 7,609 |
Accrued expenses and other | 119,930 | 61,366 |
Current liabilities of discontinued operations | 3,492 | 49,055 |
Total current liabilities | 435,405 | 1,304,159 |
Noncurrent liabilities: | ||
Long-term debt and finance lease obligations, net | 2,388,931 | 2,386,202 |
Deferred tax liabilities, net | 341,426 | 355,356 |
Operating lease liabilities | 94,232 | |
Advances from affiliates, net | 33,139 | 33,438 |
Other noncurrent liabilities | 68,865 | 71,647 |
Noncurrent liabilities of discontinued operations | 0 | 349,875 |
Total noncurrent liabilities | 2,926,593 | 3,196,518 |
Total liabilities | 3,361,998 | 4,500,677 |
Commitments and contingencies (Note 14) | ||
Shareholders’ equity: | ||
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding at both September 30, 2019 and December 31, 2018 | 0 | 0 |
Common stock, $0.01 par value; 1,000,000 shares authorized, 1,078 shares issued and outstanding at both September 30, 2019 and December 31, 2018 | 0 | 0 |
Additional paid-in capital | 1,426,978 | 1,767,037 |
Accumulated other comprehensive loss | (95,913) | (83,774) |
Accumulated earnings | 717,267 | 693,957 |
Total HSS shareholders’ equity | 2,048,332 | 2,377,220 |
Noncontrolling interests | 9,194 | 15,275 |
Total shareholders’ equity | 2,057,526 | 2,392,495 |
Total liabilities and shareholders’ equity | $ 5,419,524 | $ 6,893,172 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
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 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Revenue | $ 473,121 | $ 457,650 | $ 1,389,560 | $ 1,311,723 |
Costs and expenses: | ||||
Selling, general and administrative expenses | 111,987 | 97,653 | 353,559 | 285,662 |
Research and development expenses | 6,136 | 6,544 | 19,411 | 20,328 |
Depreciation and amortization | 115,948 | 107,846 | 342,086 | 315,930 |
Total costs and expenses | 427,688 | 399,694 | 1,283,696 | 1,167,825 |
Operating income (loss) | 45,433 | 57,956 | 105,864 | 143,898 |
Other income (expense): | ||||
Interest income | 12,300 | 15,697 | 47,341 | 41,362 |
Interest expense, net of amounts capitalized | (55,608) | (58,067) | (172,502) | (171,835) |
Gains (losses) on investments, net | 70 | 145 | (290) | 262 |
Equity in earnings (losses) of unconsolidated affiliates, net | (894) | 992 | (2,882) | 3,722 |
Other, net | (13,197) | (3,618) | (12,129) | (3,764) |
Total other income (expense), net | (57,329) | (44,851) | (140,462) | (130,253) |
Income (loss) from continuing operations before income taxes | (11,896) | 13,105 | (34,598) | 13,645 |
Income tax provision, net | (5,176) | (10,967) | (1,185) | (13,756) |
Net income (loss) from continuing operations | (17,072) | 2,138 | (35,783) | (111) |
Net income from discontinued operations | 14,382 | 26,782 | 57,734 | 90,105 |
Net income (loss) | (2,690) | 28,920 | 21,951 | 89,994 |
Less: Net income (loss) attributable to noncontrolling interests | (2,797) | 450 | (1,359) | 1,292 |
Net income (loss) attributable to HSS | 107 | 28,470 | 23,310 | 88,702 |
Services and other revenue | ||||
Revenue: | ||||
Revenue | 397,649 | 386,820 | 1,182,455 | 1,113,471 |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | 142,429 | 141,333 | 425,896 | 418,651 |
Equipment | ||||
Revenue: | ||||
Revenue | 65,725 | 56,846 | 175,084 | 150,134 |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | 51,188 | 46,318 | 142,744 | 127,254 |
DISH Network | Services and other revenue | ||||
Revenue: | ||||
Revenue | $ 9,747 | $ 13,984 | $ 32,021 | $ 48,118 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (2,690) | $ 28,920 | $ 21,951 | $ 89,994 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (16,247) | (9,460) | (13,927) | (39,874) |
Unrealized gains (losses) on available-for-sale securities and other | (117) | (117) | 2,188 | (199) |
Amounts reclassified to net income (loss): | ||||
Realized gains on available-for-sale securities | 0 | (1) | (400) | (4) |
Other comprehensive income (loss) | (16,364) | (9,578) | (12,139) | (40,077) |
Comprehensive income (loss) | (19,054) | 19,342 | 9,812 | 49,917 |
Less: Comprehensive loss attributable to noncontrolling interests | (2,797) | (140) | (1,359) | (97) |
Comprehensive income (loss) attributable to HSS | $ (16,257) | $ 19,482 | $ 11,171 | $ 50,014 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHARESHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Earnings | Noncontrolling Interests |
Beginning balance at Dec. 31, 2017 | $ 2,299,244 | $ 1,754,561 | $ (52,822) | $ 582,683 | $ 14,822 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 4,108 | 4,108 | |||
Capital contributions from EchoStar Corporation | 7,125 | 7,125 | |||
Other comprehensive loss | (40,077) | (38,688) | (1,389) | ||
Net income (loss) | 89,994 | 88,702 | 1,292 | ||
Other, net | (458) | (458) | |||
Ending balance at Sep. 30, 2018 | 2,378,144 | 1,765,336 | (91,077) | 689,160 | 14,725 |
Beginning balance at Jun. 30, 2018 | 2,357,597 | 1,764,131 | (82,089) | 660,690 | 14,865 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 1,425 | 1,425 | |||
Other comprehensive loss | (9,578) | (8,988) | (590) | ||
Net income (loss) | 28,920 | 28,470 | 450 | ||
Other, net | (220) | (220) | |||
Ending balance at Sep. 30, 2018 | 2,378,144 | 1,765,336 | (91,077) | 689,160 | 14,725 |
Beginning balance at Dec. 31, 2018 | 2,392,495 | 1,767,037 | (83,774) | 693,957 | 15,275 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 4,116 | 4,116 | |||
BSS Transaction (Note 5) | (342,823) | (342,823) | |||
Purchase of noncontrolling interest | (7,313) | (833) | (6,480) | ||
Other comprehensive loss | (12,139) | (12,139) | |||
Net income (loss) | 21,951 | 23,310 | (1,359) | ||
Other, net | 1,239 | (519) | 1,758 | ||
Ending balance at Sep. 30, 2019 | 2,057,526 | 1,426,978 | (95,913) | 717,267 | 9,194 |
Beginning balance at Jun. 30, 2019 | 2,416,319 | 1,766,642 | (79,549) | 717,160 | 12,066 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 1,260 | 1,260 | |||
BSS Transaction (Note 5) | (342,823) | (342,823) | |||
Purchase of noncontrolling interest | 0 | 1,833 | (1,833) | ||
Other comprehensive loss | (16,364) | (16,364) | |||
Net income (loss) | (2,690) | 107 | (2,797) | ||
Other, net | 1,824 | 66 | 1,758 | ||
Ending balance at Sep. 30, 2019 | $ 2,057,526 | $ 1,426,978 | $ (95,913) | $ 717,267 | $ 9,194 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 21,951 | $ 89,994 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation and amortization | 428,012 | 409,377 |
Equity in (earnings) losses of unconsolidated affiliates, net | 2,882 | (3,722) |
Amortization of debt issuance costs | 4,882 | 5,910 |
(Gains) losses on investments, net | 290 | (259) |
Stock-based compensation | 4,116 | 4,108 |
Deferred tax (benefit) provision | (34,092) | 29,345 |
Dividend received from unconsolidated entity | 2,716 | 5,000 |
Changes in current assets and current liabilities, net: | ||
Trade accounts receivable, net | (5,435) | (35,776) |
Advances to and from affiliates, net | 23,396 | 10,596 |
Trade accounts receivable - DISH Network | (26,486) | 28,053 |
Inventory | (7,941) | 10,667 |
Other current assets | (8,036) | (6,660) |
Trade accounts payable | 15,857 | 3,669 |
Trade accounts payable - DISH Network | (665) | (3,313) |
Accrued expenses and other | 83,843 | 14,979 |
Changes in noncurrent assets and noncurrent liabilities, net | 6,129 | (13,561) |
Other, net | 9,821 | 7,223 |
Net cash flows from operating activities | 521,240 | 555,630 |
Cash flows from investing activities: | ||
Purchases of marketable investment securities | (462,625) | (1,546,479) |
Sales and maturities of marketable investment securities | 1,375,242 | 799,250 |
Expenditures for property and equipment | (224,994) | (286,223) |
Refunds and other receipts related to property and equipment | 0 | 77,524 |
Expenditures for externally marketed software | (21,364) | (24,568) |
Dividend received from unconsolidated entity | 2,284 | 0 |
Payment for satellite launch services | 0 | (7,125) |
Other | 0 | (991) |
Net cash flows from investing activities | 668,543 | (988,612) |
Cash flows from financing activities: | ||
Repayment of debt and finance lease obligations | (29,135) | (27,764) |
Repurchase and maturity of debt | (920,923) | 0 |
Purchase of noncontrolling interest | (7,313) | 0 |
Repayment of in-orbit incentive obligations | (5,269) | (4,048) |
Capital contribution from EchoStar Corporation | 0 | 7,125 |
Proceeds from issuance of debt | 1,172 | 0 |
Net cash flows from financing activities | (961,468) | (24,687) |
Effect of exchange rates on cash and cash equivalents | 310 | (3,350) |
Net increase (decrease) in cash and cash equivalents, including restricted amounts | 228,625 | (461,019) |
Cash and cash equivalents, including restricted amounts, beginning of period | 848,619 | 1,823,354 |
Cash and cash equivalents, including restricted amounts, end of period | 1,077,244 | 1,362,335 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 176,919 | 176,228 |
Cash paid for income taxes | $ 1,919 | $ 2,998 |
Organization and Business Activ
Organization and Business Activities | 9 Months Ended |
Sep. 30, 2019 | |
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 broadband satellite technologies, broadband internet services for home and small to medium-sized business customers, satellite operations and satellite services. We also deliver innovative network technologies, managed services and 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 to medium-sized business customers and broadband network technologies, managed services, equipment, hardware, satellite services and communication solutions to service providers, 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 services on a full-time and/or occasional-use basis to United States (“U.S.”) government service providers, internet service providers, broadcast news organizations, content providers and private enterprise customers. Our operations also include various corporate departments (primarily Executive, Treasury, Strategic Development, Human Resources, IT, Finance, Real Estate, Accounting and Legal) and other activities that have not been assigned to our operating segments such as costs incurred in certain satellite development programs and other business development activities, and gains or losses from certain of our investments. These activities, costs and income, as well as eliminations of intersegment transactions, are accounted for in Corporate and Other in our segment reporting. In May 2019, EchoStar and one of our former subsidiaries, EchoStar BSS Corporation (“BSS Corp.”), entered into a master transaction agreement (the “Master Transaction Agreement”) with DISH Network Corporation (“DISH”) and a wholly-owned subsidiary of DISH (“Merger Sub”). Pursuant to the terms of the Master Transaction Agreement, on September 10, 2019: (i) EchoStar and its subsidiaries and we and our subsidiaries transferred to BSS Corp. certain real property and the various businesses, products, licenses, technology, revenues, billings, operating activities, assets and liabilities primarily relating to the portion of our ESS satellite services business that manages, markets and provides (1) broadcast satellite services primarily to DISH and its subsidiaries (together with DISH, “DISH Network”) and EchoStar’s joint venture Dish Mexico, S. de R.L. de C.V., (“Dish Mexico”) and its subsidiaries and (2) telemetry, tracking and control (“TT&C”) services for satellites owned by DISH Network and a portion of EchoStar’s and our other businesses (collectively, the “BSS Business”); (ii) EchoStar distributed to each holder of shares of EchoStar Class A or Class B common stock entitled to receive consideration in the transaction an amount of shares of common stock of BSS Corp., par value $0.001 per share (“BSS Common Stock”), equal to one share of BSS Common Stock for each share of EchoStar Class A or Class B common stock owned by such EchoStar stockholder (the “Distribution”); and (iii) immediately after the Distribution, (1) Merger Sub merged with and into BSS Corp. (the “Merger”), such that BSS Corp. became a wholly-owned subsidiary of DISH and DISH owns and operates the BSS Business, and (2) each issued and outstanding share of BSS Common Stock owned by EchoStar stockholders was converted into the right to receive 0.23523769 shares of DISH Class A common stock, par value $0.001 per share (“DISH Common Stock”) ((i) - (iii) collectively, the “BSS Transaction”). The BSS Transaction was structured in a manner intended to be tax-free to EchoStar and its stockholders for U.S. federal income tax purposes. In connection with the BSS Transaction, EchoStar and DISH Network have agreed to indemnify each other against certain losses with respect to breaches of certain representations and covenants and certain retained and assumed liabilities, respectively. Additionally, EchoStar and DISH and certain of our, EchoStar’s and DISH’s subsidiaries, as applicable, have (i) entered into certain customary agreements covering, among other things, matters relating to taxes, employees, intellectual property and the provision of transitional services, (ii) terminated certain previously existing agreements, and (iii) amended certain existing agreements and entered into certain new agreements pursuant to which we and DISH Network will obtain and provide certain products, services and rights from and to each other. Following the consummation of the BSS Transaction, we no longer operate the BSS Business, which was a substantial portion of our ESS business segment. The BSS Transaction has been accounted for as a spin-off to EchoStar’s stockholders as EchoStar did not receive any consideration. As a result, the operating results of the BSS Business have been presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. See Note 5 for further discussion of our discontinued operations. During 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. EchoStar, and certain of its and our subsidiaries, received all the shares of the Hughes Retail Preferred Tracking Stock previously issued by EchoStar and us (together, the “Tracking Stock”) in exchange for 100% of the equity interests of certain of EchoStar’s subsidiaries that held substantially all of EchoStar’s former EchoStar Technologies businesses and certain other assets (collectively, the “Share Exchange”). Following the consummation of the Share Exchange, EchoStar no longer operates its former EchoStar Technologies businesses, the Tracking Stock was retired and is no longer outstanding, and all agreements, arrangements and policy statements with respect to the Tracking Stock terminated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
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. However, 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, 2018 . 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. Recently Adopted Accounting Pronouncements Leases We adopted Accounting Standard Update (“ASU”) No. 2016-02 - Leases (Topic 842) , as amended, or Accounting Standard Codification (“ASC 842”), as of January 1, 2019. The primary impact of ASC 842 on our consolidated financial statements is the recognition of right-of-use assets and related liabilities on our consolidated balance sheet for operating leases where we are the lessee. We elected to apply the requirements of the new standard on January 1, 2019 and we have not restated our consolidated financial statements for prior periods. Consequently, certain amounts reported in our Condensed Consolidated Balance Sheet as of September 30, 2019 are not comparable to those reported as of December 31, 2018 or earlier dates. Our adoption of ASC 842 did not have a material impact on the results of our operations or on our cash flows for the three and nine months ended September 30, 2019. Under ASC 842, leases are classified either as operating leases or finance leases. The lease classification affects the recognition of lease expense by lessees in the statement of operations. Consistent with prior accounting standards, operating lease expense is included in operating expenses, while finance lease expense is split between depreciation expense and interest expense. ASC 842 does not fundamentally change the lessor accounting model, which requires leases to be classified as operating leases or sales-type leases. Operating lease revenue generally is recognized over the lease term, while sales-type lease revenue is recognized primarily upon lease commencement, except for amounts representing interest on related accounts receivable. Except for the new requirement to recognize assets and liabilities on the balance sheet for operating leases where we are the lessee, under our ASC 842 transition method we continue to apply prior accounting standards to leases that commenced prior to 2019. We fully apply ASC 842 requirements only to leases that commenced or were modified on or after January 1, 2019. We elected certain practical expedients under our transition method, including elections to not reassess (i) whether a contract is or contains a lease and (ii) the classification of existing leases. We also elected not to apply hindsight in determining whether optional renewal periods should be included in the lease term, which in some instances may impact the initial measurement of the lease liability and the calculation of straight-line expense over the lease term for operating leases. As a result of our transition elections, there was no change in our recognition of revenue and expense for leases that commenced prior to 2019. In addition, the application of ASC 842 requirements to new and modified leases did not materially affect our recognition of revenue or expenses for the three and nine months ended September 30, 2019. Our adoption of ASC 842 resulted in the following adjustments from our continuing operations to our Condensed Consolidated Balance Sheet as of December 31, 2018 (amounts in thousands) : Balance December 31,2018 Adoption of ASC 842 Increase (Decrease) Balance January 1, 2019 Prepaids and deposits $ 45,198 $ (28 ) $ 45,170 Operating lease right-of-use assets $ — $ 117,006 $ 117,006 Other noncurrent assets, net $ 236,449 $ (7,272 ) $ 229,177 Total assets $ 6,893,172 $ 109,706 $ 7,002,878 Accrued expenses and other $ 61,366 $ 14,444 $ 75,810 Operating lease liabilities $ — $ 99,133 $ 99,133 Other noncurrent liabilities $ 71,647 $ (3,871 ) $ 67,776 Total liabilities $ 4,500,677 $ 109,706 $ 4,610,383 Total liabilities and shareholders’ equity $ 6,893,172 $ 109,706 $ 7,002,878 Our accounting policies under ASC 842 are summarized below. Additional disclosures required by the new standard are included in Note 4 . Lessee Accounting We lease real estate, satellite capacity and equipment in the conduct of our business operations. For contracts entered into on or after January 1, 2019, we assess at contract inception whether the contract is, or contains, a lease. Generally, we determine that a lease exists when (i) the contract involves the use of a distinct identified asset, (ii) we obtain the right to substantially all economic benefits from use of the asset and (iii) we have the right to direct the use of the asset. A lease is classified as a finance lease when one or more of the following criteria are met: (i) the lease transfers ownership of the asset by the end of the lease term, (ii) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (iii) the lease term is for a major part of the remaining useful life of the asset, (iv) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset or (v) the asset is of a specialized nature and there is not expected to be an alternative use to the lessor at the end of the lease term. A lease is classified as an operating lease if it does not meet any of these criteria. At the lease commencement date, we recognize a right-of-use asset and a lease liability for all leases, except short-term leases with an original term of 12 months or less. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any prepayments to the lessor and initial direct costs such as brokerage commissions, less any lease incentives received. All right-of-use assets are periodically reviewed for impairment in accordance with standards that apply to long-lived assets. The lease liability is initially measured at the present value of the lease payments, discounted using an estimate of our incremental borrowing rate for a collateralized loan with the same term as the underlying lease. The incremental borrowing rates used for the initial measurement of lease liabilities as of January 1, 2019 were based on the original lease terms . Lease payments included in the measurement of lease liabilities consist of (i) fixed lease payments for the noncancelable lease term, (ii) fixed lease payments for optional renewal periods where it is reasonably certain the renewal option will be exercised, and (iii) variable lease payments that depend on an underlying index or rate, based on the index or rate in effect at lease commencement. Certain of our real estate lease agreements require payments for non-lease costs such as utilities and common area maintenance. We have elected an accounting policy, as permitted by ASC 842, not to account for such payments separately from the related lease payments. Our policy election results in a higher initial measurement of lease liabilities when such non-lease payments are fixed amounts. Certain of our real estate lease agreements require variable lease payments that do not depend on an underlying index or rate, such as sales and value-added taxes and our proportionate share of actual property taxes, insurance and utilities. Such payments and changes in payments based on a rate or index are recognized in operating expenses when incurred. Lease expense for operating leases consists of the fixed lease payments recognized on a straight-line basis over the lease term plus variable lease payments as incurred. Lease expense for finance leases consists of the amortization of the right-of-use asset on a straight-line basis over the lease term and interest expense on the lease liability based on the discount rate at lease commencement. For both operating and finance leases, lease payments are allocated between a reduction of the lease liability and interest expense. Amortization of the right-of-use asset for operating leases reflects amortization of the lease liability, any differences between straight-line expense and related lease payments during the accounting period, and any impairments. Lessor Accounting We lease satellite capacity, communications equipment and real estate to certain of our customers. We identify and determine the classification of such leases as operating leases or sales-type leases based on the criteria discussed above for lessees. A lease is classified as a sales-type lease if it meets the above criteria for a finance lease; otherwise it is classified as an operating lease. Some of our leases are embedded in contracts with customers that include non-lease performance obligations. For such contracts, except where we have elected otherwise as discussed below, we allocate consideration in the contract between lease and non-lease components based on their relative standalone selling prices. We have elected an accounting policy, as permitted by ASC 842, to not separate the lease of equipment from related services in our HughesNet satellite internet service (the “HughesNet service”) contracts with consumers. We account for all revenue from such contracts as non-lease service revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Our accounting for revenue from operating leases and sales-type leases was not substantially changed by our adoption of ASC 842. However, we anticipate that certain leases that would have been classified as operating leases under prior accounting standards may be classified as sales-type leases under ASC 842. Operating lease revenue generally is recognized on a straight-line basis over the lease term. Sales-type lease revenue and a corresponding receivable generally are recognized at lease commencement based on the present value of the future lease payments and related interest income on the receivable is recognized over the lease term. Payments under sales-type leases generally are discounted at the interest rate implicit in the lease. Recently Issued Accounting Pronouncements Not Yet Adopted Credit Losses In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments , which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses instead of incurred losses. It also modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are currently assessing the impact of adopting this new accounting standard on our Consolidated Financial Statements and related disclosures. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Information About Contract Balances The following table provides information about our contract balances from our continuing operations with customers, including amounts for certain embedded leases (amounts in thousands): As of September 30, 2019 December 31, 2018 Trade accounts receivable: Sales and services $ 163,006 $ 154,415 Leasing 3,013 7,990 Total 166,019 162,405 Contract assets 60,012 55,295 Allowance for doubtful accounts (25,252 ) (16,604 ) Total trade accounts receivable and contract assets, net $ 200,779 $ 201,096 Trade accounts receivable - DISH Network: Sales and services $ 12,272 $ 12,274 Leasing 910 1,276 Total trade accounts receivable - DISH Network, net $ 13,182 $ 13,550 Contract liabilities: Current $ 109,557 $ 72,249 Noncurrent 10,730 10,133 Total contract liabilities $ 120,287 $ 82,382 For the nine months ended September 30, 2019 , we recognized revenue of $67.3 million that was previously included in the contract liability balance at December 31, 2018 . Our bad debt expense was $3.2 million and $8.6 million for the three months ended September 30, 2019 and 2018 , respectively, and $23.2 million and $16.6 million for the nine months ended September 30, 2019 and 2018 , respectively. Transaction Price Allocated to Remaining Performance Obligations As of September 30, 2019 , the remaining performance obligations for our customer contracts with original expected durations of more than one year was $1.1 billion . We expect to recognize approximately 37.8% of our remaining performance obligations of these contracts as revenue in the next twelve months. This amount e xcludes agreements with consumer customers in our Hughes segment, our leasing arrangements and agreements with certain customers under which collectibility of all amounts due through the term of contracts is uncertain. Disaggregation of Revenue In the following tables, revenue from our continuing operations is disaggregated by segment, primary geographic market, nature of the products and services and transactions with major customers. See Note 4 for additional information about revenue associated with leases. Geographic Information The following table disaggregates revenue from customer contracts attributed to our North America (the U.S. and its territories, Mexico and Canada), South and Central America and other foreign locations (Asia, Africa, Australia, Europe, and the Middle East) as well as by segment, based on the location where the goods or services are provided (amounts in thousands): Hughes ESS Corporate and Other Consolidated For the three months ended September 30, 2019 North America $ 389,264 $ 4,098 $ 571 $ 393,933 South and Central America 31,747 — — 31,747 All other 42,724 — 4,717 47,441 Total revenue $ 463,735 $ 4,098 $ 5,288 $ 473,121 For the three months ended September 30, 2018 North America $ 373,460 $ 6,802 $ 1,187 $ 381,449 South and Central America 27,593 — — 27,593 All other 43,709 — 4,899 48,608 Total revenue $ 444,762 $ 6,802 $ 6,086 $ 457,650 For the nine months ended September 30, 2019 North America $ 1,129,491 $ 11,873 $ 2,454 $ 1,143,818 South and Central America 89,005 — — 89,005 All other 142,423 — 14,314 156,737 Total revenue $ 1,360,919 $ 11,873 $ 16,768 $ 1,389,560 For the nine months ended September 30, 2018 North America $ 1,072,187 $ 22,562 $ 3,590 $ 1,098,339 South and Central America 75,813 — — 75,813 All other 123,886 — 13,685 137,571 Total revenue $ 1,271,886 $ 22,562 $ 17,275 $ 1,311,723 Nature of Products and Services The following table disaggregates revenue based on the nature of products and services and by segment (amounts in thousands) : Hughes ESS Corporate and Other Consolidated For the three months ended September 30, 2019 Equipment $ 21,106 $ — $ — $ 21,106 Services 385,477 2,737 234 388,448 Design, development and construction services 42,328 — — 42,328 Revenue from sales and services 448,911 2,737 234 451,882 Lease revenue 14,824 1,361 5,054 21,239 Total revenue $ 463,735 $ 4,098 $ 5,288 $ 473,121 For the three months ended September 30, 2018 Equipment $ 40,222 $ — $ — $ 40,222 Services 337,585 5,766 322 343,673 Design, development and construction services 16,624 — — 16,624 Revenue from sales and services 394,431 5,766 322 400,519 Lease revenue 50,331 1,036 5,764 57,131 Total revenue $ 444,762 $ 6,802 $ 6,086 $ 457,650 For the nine months ended September 30, 2019 Equipment $ 77,663 $ — $ — $ 77,663 Services 1,147,868 7,953 878 1,156,699 Design, development and construction services 93,254 — — 93,254 Revenue from sales and services 1,318,785 7,953 878 1,327,616 Lease revenue 42,134 3,920 15,890 61,944 Total revenue $ 1,360,919 $ 11,873 $ 16,768 $ 1,389,560 For the nine months ended September 30, 2018 Equipment $ 103,458 $ — $ — $ 103,458 Services 975,647 17,632 1,026 994,305 Design, development and construction services 46,676 — — 46,676 Revenue from sales and services 1,125,781 17,632 1,026 1,144,439 Lease revenue 146,105 4,930 16,249 167,284 Total revenue $ 1,271,886 $ 22,562 $ 17,275 $ 1,311,723 Effective January 1, 2019, we account for and report revenue from leases of Hughes consumer broadband equipment as services revenue under ASC 606 rather than lease revenue due to our election to not separate lease and non-lease components in consumer broadband service contracts in connection with our adoption of ASC 842 (see |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES Lessee Disclosures Our operating leases consist primarily of leases for office space, data centers and satellite ground facilities. We recognized right-of-use assets and lease liabilities for such leases in connection with our adoption of ASC 842 as of January 1, 2019 (see Note 2 ). We report operating lease right-of-use assets in Operating lease right-of-use assets and we report the current and noncurrent portions of our operating lease liabilities in Accrued expenses and other and Operating lease liabilities , respectively. Our finance leases consist primarily of leases of satellite capacity. We report finance lease right-of-use assets in Property and equipment, net and we report the current and noncurrent portions of our finance lease liabilities in Current portion of long-term debt and finance lease obligations and Long-term debt and finance lease obligations, net , respectively. Our Condensed Consolidated Balance Sheets includes the following amounts for right-of-use assets and lease liabilities from our continuing operations as of September 30, 2019 (amounts in thousands) : As of Right-of-use assets: Operating $ 111,011 Finance 328,519 Total right-of-use assets $ 439,530 Lease liabilities: Current: Operating $ 14,204 Finance 407 Noncurrent: Operating 94,232 Finance 793 Total lease liabilities $ 109,636 As of September 30, 2019 , we have prepaid our obligations regarding most of our finance right-of-use assets. Finance lease assets from our continuing operations that have a corresponding liability are reported net of accumulated amortization of $50.9 million as of September 30, 2019 . The following tables detail components of lease cost and weighted average lease terms and discount rates for operating leases and finance leases from our continuing operations (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Lease cost: Operating lease cost $ 5,400 $ 15,957 Finance lease cost: Amortization of right-of-use assets 6,506 19,656 Interest on lease liabilities 46 135 Short-term lease cost 105 381 Variable lease cost 2,690 6,253 Total lease cost $ 14,747 $ 42,382 As of Lease term and discount rate: Weighted average remaining lease term (in years): Finance leases 1.90 Operating leases 10.08 Weighted average discount rate: Finance leases 11.47 % Operating leases 6.12 % The following table details cash flows for operating leases and finance leases from our continuing operations (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,025 $ 14,731 Operating cash flows from finance leases $ 46 $ 135 Financing cash flows from finance leases $ 168 $ 505 We obtained right-of-use assets in exchange for lease liabilities of $1.1 million and $2.5 million upon commencement of operating leases for the three and nine months ended September 30, 2019 , respectively. The following table presents maturities of our lease liabilities from our continuing operations as of September 30, 2019 (amounts in thousands) : Operating Leases Finance Leases Total Year ending December 31, 2019 (remainder) $ 5,195 $ 174 $ 5,369 2020 19,761 636 20,397 2021 17,272 493 17,765 2022 14,988 96 15,084 2023 14,069 — 14,069 After 2023 80,795 — 80,795 Total lease payments 152,080 1,399 153,479 Less: Interest (43,644 ) (199 ) (43,843 ) Present value of lease liabilities $ 108,436 $ 1,200 $ 109,636 Lessor Disclosures We report revenue from sales-type leases at the commencement date in Equipment revenue and we report periodic interest income on sales-type lease receivables in Services and other revenue. We report operating lease revenue in Services and other revenue . The following table details our lease revenue from our continuing operations as follows (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Sales-type lease revenue: Revenue at lease commencement $ 2,291 $ 4,167 Interest income 206 716 Operating lease revenue 18,742 57,061 Total lease revenue $ 21,239 $ 61,944 Substantially all of our net investment in sales-type leases consisted of lease receivables totaling $5.6 million as of September 30, 2019 . The following table presents maturities of our operating lease payments from our continuing operations as of September 30, 2019 (amounts in thousands) : Amounts Year ending December 31, 2019 (remainder) $ 9,566 2020 36,154 2021 33,352 2022 31,912 2023 30,241 After 2023 151,284 Total lease payments $ 292,509 Property and equipment, net as of September 30, 2019 and Depreciation and amortization for the three and nine months then ended included the following amounts for assets subject to operating leases from our continuing operations (amounts in thousands): As of For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Cost Accumulated Depreciation Net Depreciation Expense Customer premises equipment $ 1,400,325 $ (1,026,135 ) $ 374,190 $ 49,314 $ 149,724 Satellites 104,620 (29,616 ) 75,004 1,802 5,277 Total $ 1,504,945 $ (1,055,751 ) $ 449,194 $ 51,116 $ 155,001 |
LEASES | LEASES Lessee Disclosures Our operating leases consist primarily of leases for office space, data centers and satellite ground facilities. We recognized right-of-use assets and lease liabilities for such leases in connection with our adoption of ASC 842 as of January 1, 2019 (see Note 2 ). We report operating lease right-of-use assets in Operating lease right-of-use assets and we report the current and noncurrent portions of our operating lease liabilities in Accrued expenses and other and Operating lease liabilities , respectively. Our finance leases consist primarily of leases of satellite capacity. We report finance lease right-of-use assets in Property and equipment, net and we report the current and noncurrent portions of our finance lease liabilities in Current portion of long-term debt and finance lease obligations and Long-term debt and finance lease obligations, net , respectively. Our Condensed Consolidated Balance Sheets includes the following amounts for right-of-use assets and lease liabilities from our continuing operations as of September 30, 2019 (amounts in thousands) : As of Right-of-use assets: Operating $ 111,011 Finance 328,519 Total right-of-use assets $ 439,530 Lease liabilities: Current: Operating $ 14,204 Finance 407 Noncurrent: Operating 94,232 Finance 793 Total lease liabilities $ 109,636 As of September 30, 2019 , we have prepaid our obligations regarding most of our finance right-of-use assets. Finance lease assets from our continuing operations that have a corresponding liability are reported net of accumulated amortization of $50.9 million as of September 30, 2019 . The following tables detail components of lease cost and weighted average lease terms and discount rates for operating leases and finance leases from our continuing operations (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Lease cost: Operating lease cost $ 5,400 $ 15,957 Finance lease cost: Amortization of right-of-use assets 6,506 19,656 Interest on lease liabilities 46 135 Short-term lease cost 105 381 Variable lease cost 2,690 6,253 Total lease cost $ 14,747 $ 42,382 As of Lease term and discount rate: Weighted average remaining lease term (in years): Finance leases 1.90 Operating leases 10.08 Weighted average discount rate: Finance leases 11.47 % Operating leases 6.12 % The following table details cash flows for operating leases and finance leases from our continuing operations (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,025 $ 14,731 Operating cash flows from finance leases $ 46 $ 135 Financing cash flows from finance leases $ 168 $ 505 We obtained right-of-use assets in exchange for lease liabilities of $1.1 million and $2.5 million upon commencement of operating leases for the three and nine months ended September 30, 2019 , respectively. The following table presents maturities of our lease liabilities from our continuing operations as of September 30, 2019 (amounts in thousands) : Operating Leases Finance Leases Total Year ending December 31, 2019 (remainder) $ 5,195 $ 174 $ 5,369 2020 19,761 636 20,397 2021 17,272 493 17,765 2022 14,988 96 15,084 2023 14,069 — 14,069 After 2023 80,795 — 80,795 Total lease payments 152,080 1,399 153,479 Less: Interest (43,644 ) (199 ) (43,843 ) Present value of lease liabilities $ 108,436 $ 1,200 $ 109,636 Lessor Disclosures We report revenue from sales-type leases at the commencement date in Equipment revenue and we report periodic interest income on sales-type lease receivables in Services and other revenue. We report operating lease revenue in Services and other revenue . The following table details our lease revenue from our continuing operations as follows (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Sales-type lease revenue: Revenue at lease commencement $ 2,291 $ 4,167 Interest income 206 716 Operating lease revenue 18,742 57,061 Total lease revenue $ 21,239 $ 61,944 Substantially all of our net investment in sales-type leases consisted of lease receivables totaling $5.6 million as of September 30, 2019 . The following table presents maturities of our operating lease payments from our continuing operations as of September 30, 2019 (amounts in thousands) : Amounts Year ending December 31, 2019 (remainder) $ 9,566 2020 36,154 2021 33,352 2022 31,912 2023 30,241 After 2023 151,284 Total lease payments $ 292,509 Property and equipment, net as of September 30, 2019 and Depreciation and amortization for the three and nine months then ended included the following amounts for assets subject to operating leases from our continuing operations (amounts in thousands): As of For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Cost Accumulated Depreciation Net Depreciation Expense Customer premises equipment $ 1,400,325 $ (1,026,135 ) $ 374,190 $ 49,314 $ 149,724 Satellites 104,620 (29,616 ) 75,004 1,802 5,277 Total $ 1,504,945 $ (1,055,751 ) $ 449,194 $ 51,116 $ 155,001 |
LEASES | LEASES Lessee Disclosures Our operating leases consist primarily of leases for office space, data centers and satellite ground facilities. We recognized right-of-use assets and lease liabilities for such leases in connection with our adoption of ASC 842 as of January 1, 2019 (see Note 2 ). We report operating lease right-of-use assets in Operating lease right-of-use assets and we report the current and noncurrent portions of our operating lease liabilities in Accrued expenses and other and Operating lease liabilities , respectively. Our finance leases consist primarily of leases of satellite capacity. We report finance lease right-of-use assets in Property and equipment, net and we report the current and noncurrent portions of our finance lease liabilities in Current portion of long-term debt and finance lease obligations and Long-term debt and finance lease obligations, net , respectively. Our Condensed Consolidated Balance Sheets includes the following amounts for right-of-use assets and lease liabilities from our continuing operations as of September 30, 2019 (amounts in thousands) : As of Right-of-use assets: Operating $ 111,011 Finance 328,519 Total right-of-use assets $ 439,530 Lease liabilities: Current: Operating $ 14,204 Finance 407 Noncurrent: Operating 94,232 Finance 793 Total lease liabilities $ 109,636 As of September 30, 2019 , we have prepaid our obligations regarding most of our finance right-of-use assets. Finance lease assets from our continuing operations that have a corresponding liability are reported net of accumulated amortization of $50.9 million as of September 30, 2019 . The following tables detail components of lease cost and weighted average lease terms and discount rates for operating leases and finance leases from our continuing operations (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Lease cost: Operating lease cost $ 5,400 $ 15,957 Finance lease cost: Amortization of right-of-use assets 6,506 19,656 Interest on lease liabilities 46 135 Short-term lease cost 105 381 Variable lease cost 2,690 6,253 Total lease cost $ 14,747 $ 42,382 As of Lease term and discount rate: Weighted average remaining lease term (in years): Finance leases 1.90 Operating leases 10.08 Weighted average discount rate: Finance leases 11.47 % Operating leases 6.12 % The following table details cash flows for operating leases and finance leases from our continuing operations (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,025 $ 14,731 Operating cash flows from finance leases $ 46 $ 135 Financing cash flows from finance leases $ 168 $ 505 We obtained right-of-use assets in exchange for lease liabilities of $1.1 million and $2.5 million upon commencement of operating leases for the three and nine months ended September 30, 2019 , respectively. The following table presents maturities of our lease liabilities from our continuing operations as of September 30, 2019 (amounts in thousands) : Operating Leases Finance Leases Total Year ending December 31, 2019 (remainder) $ 5,195 $ 174 $ 5,369 2020 19,761 636 20,397 2021 17,272 493 17,765 2022 14,988 96 15,084 2023 14,069 — 14,069 After 2023 80,795 — 80,795 Total lease payments 152,080 1,399 153,479 Less: Interest (43,644 ) (199 ) (43,843 ) Present value of lease liabilities $ 108,436 $ 1,200 $ 109,636 Lessor Disclosures We report revenue from sales-type leases at the commencement date in Equipment revenue and we report periodic interest income on sales-type lease receivables in Services and other revenue. We report operating lease revenue in Services and other revenue . The following table details our lease revenue from our continuing operations as follows (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Sales-type lease revenue: Revenue at lease commencement $ 2,291 $ 4,167 Interest income 206 716 Operating lease revenue 18,742 57,061 Total lease revenue $ 21,239 $ 61,944 Substantially all of our net investment in sales-type leases consisted of lease receivables totaling $5.6 million as of September 30, 2019 . The following table presents maturities of our operating lease payments from our continuing operations as of September 30, 2019 (amounts in thousands) : Amounts Year ending December 31, 2019 (remainder) $ 9,566 2020 36,154 2021 33,352 2022 31,912 2023 30,241 After 2023 151,284 Total lease payments $ 292,509 Property and equipment, net as of September 30, 2019 and Depreciation and amortization for the three and nine months then ended included the following amounts for assets subject to operating leases from our continuing operations (amounts in thousands): As of For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Cost Accumulated Depreciation Net Depreciation Expense Customer premises equipment $ 1,400,325 $ (1,026,135 ) $ 374,190 $ 49,314 $ 149,724 Satellites 104,620 (29,616 ) 75,004 1,802 5,277 Total $ 1,504,945 $ (1,055,751 ) $ 449,194 $ 51,116 $ 155,001 |
LEASES | LEASES Lessee Disclosures Our operating leases consist primarily of leases for office space, data centers and satellite ground facilities. We recognized right-of-use assets and lease liabilities for such leases in connection with our adoption of ASC 842 as of January 1, 2019 (see Note 2 ). We report operating lease right-of-use assets in Operating lease right-of-use assets and we report the current and noncurrent portions of our operating lease liabilities in Accrued expenses and other and Operating lease liabilities , respectively. Our finance leases consist primarily of leases of satellite capacity. We report finance lease right-of-use assets in Property and equipment, net and we report the current and noncurrent portions of our finance lease liabilities in Current portion of long-term debt and finance lease obligations and Long-term debt and finance lease obligations, net , respectively. Our Condensed Consolidated Balance Sheets includes the following amounts for right-of-use assets and lease liabilities from our continuing operations as of September 30, 2019 (amounts in thousands) : As of Right-of-use assets: Operating $ 111,011 Finance 328,519 Total right-of-use assets $ 439,530 Lease liabilities: Current: Operating $ 14,204 Finance 407 Noncurrent: Operating 94,232 Finance 793 Total lease liabilities $ 109,636 As of September 30, 2019 , we have prepaid our obligations regarding most of our finance right-of-use assets. Finance lease assets from our continuing operations that have a corresponding liability are reported net of accumulated amortization of $50.9 million as of September 30, 2019 . The following tables detail components of lease cost and weighted average lease terms and discount rates for operating leases and finance leases from our continuing operations (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Lease cost: Operating lease cost $ 5,400 $ 15,957 Finance lease cost: Amortization of right-of-use assets 6,506 19,656 Interest on lease liabilities 46 135 Short-term lease cost 105 381 Variable lease cost 2,690 6,253 Total lease cost $ 14,747 $ 42,382 As of Lease term and discount rate: Weighted average remaining lease term (in years): Finance leases 1.90 Operating leases 10.08 Weighted average discount rate: Finance leases 11.47 % Operating leases 6.12 % The following table details cash flows for operating leases and finance leases from our continuing operations (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,025 $ 14,731 Operating cash flows from finance leases $ 46 $ 135 Financing cash flows from finance leases $ 168 $ 505 We obtained right-of-use assets in exchange for lease liabilities of $1.1 million and $2.5 million upon commencement of operating leases for the three and nine months ended September 30, 2019 , respectively. The following table presents maturities of our lease liabilities from our continuing operations as of September 30, 2019 (amounts in thousands) : Operating Leases Finance Leases Total Year ending December 31, 2019 (remainder) $ 5,195 $ 174 $ 5,369 2020 19,761 636 20,397 2021 17,272 493 17,765 2022 14,988 96 15,084 2023 14,069 — 14,069 After 2023 80,795 — 80,795 Total lease payments 152,080 1,399 153,479 Less: Interest (43,644 ) (199 ) (43,843 ) Present value of lease liabilities $ 108,436 $ 1,200 $ 109,636 Lessor Disclosures We report revenue from sales-type leases at the commencement date in Equipment revenue and we report periodic interest income on sales-type lease receivables in Services and other revenue. We report operating lease revenue in Services and other revenue . The following table details our lease revenue from our continuing operations as follows (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Sales-type lease revenue: Revenue at lease commencement $ 2,291 $ 4,167 Interest income 206 716 Operating lease revenue 18,742 57,061 Total lease revenue $ 21,239 $ 61,944 Substantially all of our net investment in sales-type leases consisted of lease receivables totaling $5.6 million as of September 30, 2019 . The following table presents maturities of our operating lease payments from our continuing operations as of September 30, 2019 (amounts in thousands) : Amounts Year ending December 31, 2019 (remainder) $ 9,566 2020 36,154 2021 33,352 2022 31,912 2023 30,241 After 2023 151,284 Total lease payments $ 292,509 Property and equipment, net as of September 30, 2019 and Depreciation and amortization for the three and nine months then ended included the following amounts for assets subject to operating leases from our continuing operations (amounts in thousands): As of For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Cost Accumulated Depreciation Net Depreciation Expense Customer premises equipment $ 1,400,325 $ (1,026,135 ) $ 374,190 $ 49,314 $ 149,724 Satellites 104,620 (29,616 ) 75,004 1,802 5,277 Total $ 1,504,945 $ (1,055,751 ) $ 449,194 $ 51,116 $ 155,001 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Following the consummation of the BSS Transaction in September 2019, we no longer operate the BSS Business, which was a substantial portion of our ESS business segment. The BSS Transaction has been accounted for as a spin-off to EchoStar’s stockholders as EchoStar did not receive any consideration. As a result, the operating results of the BSS Business have been presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented. The following table presents the operating results of our discontinued operations (amounts in thousands) : For the three months For the nine months 2019 2018 2019 2018 Revenue: Services and other revenue - DISH Network $ 54,297 $ 70,805 $ 195,942 $ 234,425 Services and other revenue - other 4,915 6,400 17,715 19,198 Total revenue 59,212 77,205 213,657 253,623 Costs and Expenses: Cost of equipment, services and other 7,307 9,714 28,033 30,274 Selling, general and administrative expenses 4,107 22 6,749 38 Depreciation and amortization 23,788 31,105 85,926 93,447 Total costs and expenses 35,202 40,841 120,708 123,759 Operating income 24,010 36,364 92,949 129,864 Other Income (Expense): Interest expense (4,632 ) (7,023 ) (17,365 ) (21,790 ) Total other income (expense), net (4,632 ) (7,023 ) (17,365 ) (21,790 ) Income from discontinued operations before income taxes 19,378 29,341 75,584 108,074 Income tax benefit (provision), net (4,996 ) (2,559 ) (17,850 ) (17,969 ) Net income (loss) from discontinued operations $ 14,382 $ 26,782 $ 57,734 $ 90,105 Expenditures for property and equipment of our discontinued operations totaled $0.3 million and de minimis three months ended September 30, 2019 and 2018 , respectively, and $0.5 million and $0.1 million for the nine months ended September 30, 2019 and 2018 , respectively. The following table presents the aggregate carrying amounts of assets and liabilities of our discontinued operations (amounts in thousands) : As of September 30, 2019 December 31, 2018 Assets Trade accounts receivable and contract assets, net $ 5,866 $ — Prepaids and deposits — 3,483 Current assets of discontinued operations 5,866 3,483 Property and equipment, net — 660,270 Regulatory authorizations, net — 65,615 Other noncurrent assets, net — 16,576 Noncurrent assets of discontinued operations — 742,461 Total assets of discontinued operations $ 5,866 $ 745,944 Liabilities: Trade accounts payable $ 506 $ — Current portion of finance lease obligations — 39,995 Accrued interest — 1,572 Accrued expenses and other 2,986 7,488 Current liabilities of discontinued operations 3,492 49,055 Finance lease obligations — 187,002 Deferred tax liabilities, net — 133,380 Other noncurrent liabilities — 29,493 Noncurrent liabilities of discontinued operations — 349,875 Total liabilities of discontinued operations $ 3,492 $ 398,930 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Related Tax Effects | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) AND RELATED TAX EFFECTS | OTHER COMPREHENSIVE INCOME (LOSS) AND RELATED TAX EFFECTS The changes in the balances of Accumulated other comprehensive loss by component were as follows (amounts in thousands) : Cumulative Foreign Currency Translation Losses Unrealized Gain (Loss) On Available-For-Sale Securities Other Accumulated Balance, December 31, 2017 $ (52,251 ) $ (648 ) $ 77 $ (52,822 ) Cumulative effect of accounting changes as of January 1, 2018 — 433 — 433 Balance, January 1, 2018 (52,251 ) (215 ) 77 (52,389 ) Other comprehensive income (loss) before reclassifications (38,485 ) (199 ) — (38,684 ) Amounts reclassified to net income — (4 ) — (4 ) Other comprehensive income (loss) (38,485 ) (203 ) — (38,688 ) Balance, September 30, 2018 $ (90,736 ) $ (418 ) $ 77 $ (91,077 ) Balance, December 31, 2018 $ (82,800 ) $ (1,092 ) $ 118 $ (83,774 ) Other comprehensive income (loss) before reclassifications (13,927 ) 2,333 (145 ) (11,739 ) Amounts reclassified to net income — (400 ) — (400 ) Other comprehensive income (loss) (13,927 ) 1,933 (145 ) (12,139 ) Balance, September 30, 2019 $ (96,727 ) $ 841 $ (27 ) $ (95,913 ) The amounts reclassified to net income related to unrealized gain (loss) on available-for-sale securities in the table above are included in Gains (losses) on investments, net in our Condensed Consolidated Statements of Operations . Except in unusual circumstances, we do not recognize tax effects on foreign currency translation adjustments because they are not expected to result in future taxable income or deductions. We do not recognize tax effects on unrealized gains or losses on available-for-sale securities until such gains or losses are realized. |
Marketable Investment Securitie
Marketable Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
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 summarized in the table below (amounts in thousands) : As of September 30, 2019 December 31, 2018 Marketable investment securities: Debt securities: Corporate bonds $ 540,683 $ 1,234,017 Other debt securities 154,566 374,106 Total debt securities 695,249 1,608,123 Equity securities 347 1,073 Total marketable investment securities $ 695,596 $ 1,609,196 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 is presented in the table below (amounts in thousands) : Amortized Unrealized Estimated Cost Gains Losses Fair Value As of September 30, 2019 Corporate bonds $ 539,844 $ 842 $ (3 ) $ 540,683 Other debt securities 154,565 1 — 154,566 Total available-for-sale debt securities $ 694,409 $ 843 $ (3 ) $ 695,249 As of December 31, 2018 Corporate bonds $ 1,235,110 $ 230 $ (1,323 ) $ 1,234,017 Other debt securities 374,106 — — 374,106 Total available-for-sale debt securities $ 1,609,216 $ 230 $ (1,323 ) $ 1,608,123 As of September 30, 2019 , we have $695.2 million of available-for-sale debt securities with contractual maturities of one year or less and nil with contractual maturities greater than one year. Equity Securities Our marketable equity securities consist primarily of shares of common stock of public companies. Gains (losses) on investments, net related to equity securities that we held each period were net gains of de minimis and $0.1 million for the three months ended September 30, 2019 and 2018 , respectively, and $0.7 million in net loss and 0.3 million in net gains for the nine months ended September 30, 2019 and 2018 , respectively. Sales of Available-for-Sale Securities Proceeds from sales of our available-for-sale securities were nil and $312.0 million for the three and nine months ended September 30, 2019 , respectively. Proceeds from sales of our available-for-sale securities were $ 50.0 million for both the three and nine months ended September 30, 2018 . Fair Value Measurements Our marketable investment securities are measured at fair value on a recurring basis as summarized in the table below (amounts in thousands). As of September 30, 2019 and December 31, 2018 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of September 30, 2019 December 31, 2018 Level 1 Level 2 Total Level 1 Level 2 Total Debt securities: Corporate bonds $ — $ 540,683 $ 540,683 $ — $ 1,234,017 $ 1,234,017 Other debt securities — 154,566 154,566 — 374,106 374,106 Total debt securities — 695,249 695,249 — 1,608,123 1,608,123 Equity securities 347 — 347 1,073 — 1,073 Total marketable investment securities $ 347 $ 695,249 $ 695,596 $ 1,073 $ 1,608,123 $ 1,609,196 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Our inventory consisted of the following (amounts in thousands): As of September 30, 2019 December 31, 2018 Raw materials $ 5,441 $ 4,856 Work-in-process 10,869 13,901 Finished goods 66,367 56,622 Total inventory $ 82,677 $ 75,379 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment from our continuing operations consisted of the following (amounts in thousands): Depreciable Life In Years As of September 30, 2019 December 31, 2018 Land — $ 13,298 $ 13,366 Buildings and improvements 1 to 40 73,387 114,153 Furniture, fixtures, equipment and other 1 to 12 736,792 725,924 Customer premises equipment 2 to 4 1,322,084 1,159,977 Satellites - owned 2 to 15 1,463,472 1,459,955 Satellites - acquired under finance leases 10 to 15 376,321 385,592 Construction in progress — 38,897 28,087 Total property and equipment 4,024,251 3,887,054 Accumulated depreciation (2,238,015 ) (1,965,143 ) Property and equipment, net $ 1,786,236 $ 1,921,911 Construction in progress consisted of the following (amounts in thousands): As of September 30, 2019 December 31, 2018 Progress amounts for satellite construction $ — $ 246 Satellite related equipment 25,027 13,001 Other 13,870 14,840 Construction in progress $ 38,897 $ 28,087 We recorded capitalized interest related to our satellites, satellite payloads and related ground facilities under construction of $0.3 million and $1.4 million for the three months ended September 30, 2019 and 2018 , respectively, and $0.6 million and $5.8 million for the nine months ended September 30, 2019 and 2018 , respectively. Depreciation expense associated with our property and equipment from our continuing operations consisted of the following (amounts in thousands): For the three months For the nine months 2019 2018 2019 2018 Buildings and improvements $ 1,028 $ 2,520 $ 3,502 $ 7,630 Furniture, fixtures, equipment and other 21,240 19,750 63,666 58,697 Customer premises equipment 49,074 43,584 142,541 129,907 Satellites 33,993 32,553 100,904 91,770 Total depreciation expense $ 105,335 $ 98,407 $ 310,613 $ 288,004 Satellites depreciation expense includes amortization of satellites under finance lease agreements of $6.4 million and $5.5 million for the three months ended September 30, 2019 and 2018 , respectively, and $19.3 million and $13.8 million for the nine months ended September 30, 2019 and 2018 , respectively. Satellites As of September 30, 2019 , our satellite fleet consisted of seven satellites, four of which are owned and three of which are leased. They are all in geosynchronous orbit, approximately 22,300 miles above the equator. We depreciate our owned satellites on a straight-line basis over the estimated useful life of each satellite. We depreciate our leased satellites on a straight-line basis over their respective lease terms. In connection with the BSS Transaction, six of our owned satellites and the leases for two of our leased satellites were transferred to DISH Network. Our operating satellite fleet consists of both owned and leased satellites detailed in the table below as of September 30, 2019 . Satellites Segment Launch Date Nominal Degree Orbital Location (Longitude) Depreciable Life In Years Owned: SPACEWAY 3 (1) Hughes August 2007 95 W 12 EchoStar XVII Hughes July 2012 107 W 15 EchoStar XIX Hughes December 2016 97.1 W 15 EchoStar IX (2)(3) ESS August 2003 121 W 12 Capital Leases: Eutelsat 65 West A Hughes March 2016 65 W 15 Telesat T19V Hughes July 2018 63 W 15 EchoStar 105/SES-11 ESS October 2017 105 W 15 (1) Depreciable life represents the remaining useful life as of June 8, 2011, the date EchoStar completed its acquisition of Hughes Communications, Inc. and its subsidiaries (the “Hughes Acquisition”). (2) See Note 16 for discussion of related party transactions with DISH Network. (3) Fully depreciated assets as of December 31, 2015. 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 nine months ended September 30, 2019 . There can be no assurance, however, that anomalies will not have any such adverse effects in the future. In addition, there can be no assurance that we can recover critical transmission capacity in the event one or more of our satellites were to fail. 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 only for our SPACEWAY 3 and EchoStar XVII satellites insurance or other contractual arrangements during the commercial in-orbit service of such satellite. We were required pursuant to such agreements to maintain similar insurance or other contractual arrangements for the EchoStar XVI satellite, which we transferred to DISH Network pursuant to the BSS Transaction. Our other satellites, either in orbit or under construction, are not covered by launch or in-orbit insurance. We will continue to assess circumstances going forward and make insurance decisions on a case-by-case basis. We evaluate our satellites for impairment and test for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Certain of the anomalies previously disclosed may be considered to represent a significant adverse change in the physical condition of a particular satellite. However, based on the redundancy designed within each satellite, certain of these anomalies are not necessarily considered to be significant events that would require a test of recoverability. |
Goodwill, Regulatory Authorizat
Goodwill, Regulatory Authorizations and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, REGULATORY AUTHORIZATIONS AND OTHER INTANGIBLE ASSETS | GOODWILL, REGULATORY AUTHORIZATIONS AND OTHER INTANGIBLE ASSETS Goodwill The excess of the cost of an acquired business over the fair values of net tangible and identifiable intangible assets at the time of the acquisition is recorded as goodwill. Goodwill is assigned to the reporting units within our operating segments and is subject to impairment testing annually, or more frequently when events or changes in circumstances indicate the fair value of a reporting unit is more likely than not less than its carrying amount. As of September 30, 2019 and December 31, 2018 , all of our goodwill related to our continuing operations was assigned to reporting units. We test this goodwill for impairment annually in the second quarter. Based on our impairment testing in the second quarter of 2019, our goodwill is considered to be not impaired. Regulatory Authorizations Regulatory authorizations included amounts with indefinite useful lives. As of both September 30, 2019 and December 31, 2018 , regulatory authorization balances, net of accumulated amortization, from our continuing operations were $400.0 million . Other Intangible Assets As of September 30, 2019 and December 31, 2018 , accumulated amortization for our other intangible assets was $318.4 million and $307.4 million , respectively. |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | INVESTMENTS IN UNCONSOLIDATED ENTITIES We have strategic investments in certain non-publicly traded equity securities that do not have a readily determinable fair value. Our investments in these unconsolidated entities consisted of the following (amounts in thousands): As of September 30, 2019 December 31, 2018 Investments in unconsolidated entities: Equity method $ 103,136 $ 110,931 Other equity investments without a readily determinable fair value 15,438 15,438 Total investments in unconsolidated entities $ 118,574 $ 126,369 We 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 nine months ended September 30, 2019 and 2018, we did not identify any observable price changes requiring an adjustment to our investments. |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS | LONG-TERM DEBT AND FINANCE LEASE OBLIGATIONS The following table summarizes the carrying amounts and fair values of our long-term debt and finance lease obligations from our continuing operations (amounts in thousands): Effective Interest Rate As of September 30, 2019 December 31, 2018 Carrying Fair Carrying Fair Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ — $ — $ 920,836 $ 932,696 5 1/4% Senior Secured Notes due 2026 5.320% 750,000 806,295 750,000 695,865 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 973,908 900,000 934,902 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 815,273 750,000 696,353 Less: Unamortized debt issuance costs (11,862 ) — (16,757 ) — Subtotal 2,388,138 $ 2,595,476 3,304,079 $ 3,259,816 Finance lease obligations 1,200 1,705 Total debt and finance lease obligations 2,389,338 3,305,784 Less: Current portion (407 ) (919,582 ) Long-term debt and finance lease obligations, net $ 2,388,931 $ 2,386,202 During the three and nine months ended September 30, 2019 , we repurchased nil and $11.5 million , respectively, of our 6 1/2% Senior Secured Notes due 2019 in open market trades. The outstanding balance of the 6 1/2% Senior Secured Notes due 2019 matured in June 2019. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Provision For 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 from our continuing operations was $5.2 million for the three months ended September 30, 2019 compared to an income tax provision of $11.0 million for the three months ended September 30, 2018 . Our estimated effective income tax rate was (43.5)% and 83.7% for the three months ended September 30, 2019 and 2018, respectively. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended September 30, 2019 were primarily due to the increase in our valuation allowance associated with certain foreign losses. The variations in our effective tax rate from the U.S. federal statutory rate for the three months ended September 30, 2018 were primarily due to the change in our valuation allowance associated with net unrealized losses that are capital in nature. Our income tax provision from our continuing operations was $1.2 million for the nine months ended September 30, 2019 compared to an income tax provision of $13.8 million for the nine months ended September 30, 2018 . Our estimated effective income tax rate was (3.4)% and 100.8% for the nine months ended September 30, 2019 and 2018, respectively. The variations in our effective tax rate from the U.S. federal statutory rate for the nine months ended September 30, 2019 were primarily due to the change in net unrealized gains that are capital in nature, various permanent tax differences, the impact of state and local taxes, and increase in our valuation allowance associated with certain foreign losses. The variations in our effective tax rate from the U.S. federal statutory rate for the nine months ended September 30, 2018 were primarily due to various permanent tax differences, the impact of state and local taxes, the 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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments As of September 30, 2019 and December 31, 2018 , our satellite-related obligations from our continuing operations were $263.7 million and $298.9 million , respectively. Our satellite-related obligations primarily include payments pursuant to regulatory authorizations; non-lease costs associated with our finance lease satellites; and in-orbit incentives relating to certain satellites; as well as commitments for 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 tripled. Further, we cannot estimate the extent to which we may be required in the future to obtain licenses with respect to intellectual property rights held by others and the availability and cost of any such licenses. Various parties have asserted patent and other intellectual property rights with respect to our products and services. We cannot be certain that these parties do not own the rights they claim, that these rights are not valid or that our products and services do not infringe on these rights. Further, we cannot be certain that we would be able to obtain licenses from these parties on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our products and services to avoid infringement. Separation Agreement, Share Exchange and BSS Transaction In connection with EchoStar’s spin-off from DISH in 2008 (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 will only be liable for its acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off, as well as DISH Network’s acts or omissions following the Spin-off. Additionally, in connection with the Share Exchange and BSS Transaction, EchoStar entered into the Share Exchange Agreement and the Master Transaction Agreement, respectively, 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, in the case of the Share Exchange, certain pre-existing liabilities and legal proceedings and, in the case of the BSS Transaction, certain losses with respect to breaches of certain representations and covenants and certain liabilities. Litigation We are involved in a number of legal proceedings concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages and/or seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable and to determine if accruals are appropriate. We record an accrual for litigation and other loss contingencies when we determine that a loss is probable and the amount of the loss can be reasonably estimated. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of possible loss or range of loss can be made. There can be no assurance that legal proceedings against us will be resolved in amounts that will not differ from the amounts of our recorded accruals. Legal fees and other costs of defending legal proceedings 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 $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. Elbit initially requested an award of approximately $13.9 million of attorneys’ fees. On April 27, 2018, HNS filed a notice of appeal to the U.S. Court of Appeals for the Federal Circuit. Oral argument was held on May 8, 2019. On June 25, 2019, the Fede ral Circuit issued an Opinion and Order affirming the court’s judgment and holding that it did not yet have jurisdiction to review the court’s decision to award attorney’s fees. On August 8, 2019, HNS filed a combined petition for panel rehearing or rehearing en banc with the Federal Circuit , which was denied on September 10, 2019 . In an order dated September 18, 2019, the District Court questioned the attorneys’ fees calculations proposed by both parties and asked for further briefing, which the parties submitted on October 25, 2019. As a result of the Federal Circuit’s rulings, as of September 30, 2019, w e have recorded an accrual of $33.7 million , reflecting the $21.1 million jury verdict and $12.6 million of pre- and post-judgment interest, costs, attorney’s fees, pre-verdict supplemental damages and post-verdict damages through the 073 patent’s expiration. As of December 31, 2018, we recorded an accrual of $3.2 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.” On February 14, 2017, Realtime filed a second suit against EchoStar Corporation and our subsidiary HNS in the same District Court, alleging infringement of four additional U.S. Patents, Nos. 7,358,867 (the “867 patent”), entitled “Content Independent Data Compression Method and System;” 8,502,707 (the “707 patent”), entitled “Data Compression Systems and Methods;” 8,717,204 (the “204 patent”), entitled “Methods for Encoding and Decoding Data;” and 9,054,728 (the “728 patent”), entitled “Data Compression System and Methods.” On February 13, 2018, we filed petitions before the USPTO challenging the validity of all claims asserted against us from the 707 patent, as well as one of the asserted claims of the 728 patent. On September 5, 2018, the USPTO declined to institute proceedings for the petition that we had filed against the 728 patent. On September 12, 2018, the USPTO instituted proceedings to review the validity of the asserted claims of the 707 patent. In a stipulation filed on October 24, 2018, Realtime voluntarily elected not to pursue any previously asserted claims from the 992, 530, 513, 908, 867 and 204 patents. Realtime is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. In February 2019, we entered into a settlement agreement with Realtime and the case was dismissed with prejudice. Shareholder Litigation On July 2, 2019, the City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust, purporting to sue on behalf of a class of EchoStar’s stockholders, filed a complaint in the District Court of Clark County, Nevada against EchoStar’s directors, Charles W. Ergen, R. Stanton Dodge, Anthony M. Federico, Pradman P. Kaul, C. Michael Schroeder, Jeffrey R. Tarr, William D. Wade, and Michael T. Dugan; EchoStar’s officer, David J. Rayner; EchoStar, Hughes Satellite Systems Corporation and our former subsidiary BSS Corp.; and DISH and its subsidiary Merger Sub. On September 5, 2019, the defendants filed motions to dismiss. On October 11, 2019, the plaintiffs filed an amended complaint removing Messrs. Dodge, Federico, Kaul, Schroeder, Tarr and Wade as defendants. The amended complaint alleges that Mr. Ergen, as EchoStar’s controlling stockholder, breached fiduciary duties to EchoStar’s minority stockholders by structuring the BSS Transaction with inadequate consideration and improperly influencing EchoStar’s board of directors to approve the BSS Transaction. The amended complaint also alleges that the other defendants aided and abetted such alleged breaches. The plaintiffs seek equitable and monetary relief, including the issuance of additional DISH Common Stock, and other costs and disbursements, including attorneys’ fees on behalf of the purported class. We intend to vigorously defend this case. We cannot predict its outcome with any degree of certainty. License Fee Dispute with Government of India, Department of Telecommunications In 1994, the Government of India promulgated a “National Telecommunications Policy” under which the government liberalized the telecommunications sector and required telecommunications service providers to pay fixed license fees. Pursuant to this policy, our subsidiary Hughes Communications India Private Limited (“HCIPL”), formerly known as Hughes Escorts Communications Limited, obtained a license to operate a data network over satellite using VSAT systems. In 1999, HCIPL’s license was amended pursuant to a new government policy that eliminated the fixed license fees and instead required each telecommunications service provider to pay license fees based on its adjusted gross revenue (“AGR”). In March 2005, the Indian Department of Telecommunications (“DOT”) notified HCIPL that, based on its review of HCIPL’s audited accounts and AGR statements, HCIPL must pay additional license fees, interest on such fees and penalties and interest on the penalties. HCIPL responded that the DOT had improperly calculated its AGR by including revenue from licensed and unlicensed activities. The DOT rejected this explanation and in 2006, HCIPL filed a petition with an administrative tribunal (the “Tribunal”), challenging the DOT’s calculation of its AGR. The DOT also issued license fee assessments to other telecommunications service providers and a number of similar petitions were filed by several other such providers with the Tribunal. These petitions were amended, consolidated, remanded and re-appealed several times over the following twelve years. On April 23, 2015, the Tribunal issued a judgment affirming the DOT’s calculation of AGR for the telecommunications service providers but reversing the DOT’s imposition of interest, penalties and interest on such penalties as excessive. Over subsequent years, the DOT and HCIPL and other telecommunications service providers, respectively, filed several appeals of the Tribunal’s ruling. As of March 31, 2018, the DOT had assessed HCIPL $4.2 million for additional license fees and $17.8 million for interest, penalties and interest on penalties. On October 24, 2019, the Supreme Court of India issued an order affirming the license fee assessments imposed by the DOT, including its imposition of interest, penalties and interest on the penalties. We expect the DOT will issue an updated assessment that could possibly have additional interest, penalties and interest on penalties in light of the Supreme Court’s recent decision. As of September 30, 2019 and December 31, 2018, we have recorded an accrual of $22.0 million and $1.3 million , respectively. The eventual payments made with respect to the ultimate outcome of this matter may be different from our accruals and such differences could be significant. Other In addition to the above actions, we are subject to various other legal proceedings and claims, which arise in the ordinary course of business. As part of our ongoing operations, we are subject to various inspections, audits, inquiries, investigations and similar actions by third parties, as well as by governmental/regulatory authorities responsible for enforcing the laws and regulations to which we may be subject. Further, under the federal False Claims Act, private parties have the right to bring qui tam, or “whistleblower,” suits against companies that submit false claims for payments to, or improperly retain overpayments from, the federal government. Some states have adopted similar state whistleblower and false claims provisions. In addition, we from time to time receive inquiries from federal, state and foreign agencies regarding compliance with various laws and regulations. In our opinion, the amount of ultimate liability with respect to any of these other actions is unlikely to materially affect our financial position, results of operations or cash flows, though the resolutions and outcomes, individually or in the aggregate, could be material to our financial position, operating results or cash flows for any particular period, depending, in part, upon the operating results for such period. We also indemnify our directors, officers and employees for certain liabilities that might arise from the performance of their responsibilities for us. Additionally, in the normal course of its business, we enter into contracts pursuant to which we may make a variety of representations and warranties and indemnify the counterparty for certain losses. Our possible exposure under these arrangements cannot be reasonably estimated as this involves the resolution of claims made, or future claims that may be made, against us or our officers, directors or employees, the outcomes of which are unknown and not currently predictable or estimable. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2019 | |
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. Following the consummation of the BSS Transaction, we no longer operate the BSS Business, which was a substantial portion of our ESS business segment. The primary measure of segment profitability that is reported regularly to our CODM is earnings before interest, taxes, depreciation and amortization and net income (loss) attributable to noncontrolling interests, or EBITDA. Our operations also include various corporate departments (primarily Executive, Treasury, Strategic Development, Human Resources, IT, Finance, Real Estate, Accounting and Legal) and other activities that have not been assigned to our operating segments such as costs incurred in certain satellite development programs and other business development activities, and gains or losses from certain of our investments. These activities, costs and income, as well as eliminations of intersegment transactions, are accounted for in Corporate and Other in the tables below or in the reconciliation of EBITDA below. Total assets by segment have not been reported herein because the information is not provided to our CODM on a regular basis. The following table presents revenue, EBITDA and capital expenditures for each of our operating segments from our continuing operations (amounts in thousands) . Capital expenditures are net of refunds and other receipts related to property and equipment and exclude capital expenditures from discontinued operations of $0.3 million and de minimis three months ended September 30, 2019 and 2018 , respectively, and $0.5 million and $0.1 million for the nine months ended September 30, 2019 and 2018 , respectively. Hughes ESS Corporate and Other Consolidated For the three months ended September 30, 2019 External revenue $ 463,735 $ 3,772 $ 5,614 $ 473,121 Intersegment revenue — 326 (326 ) — Total revenue $ 463,735 $ 4,098 $ 5,288 $ 473,121 EBITDA $ 155,940 $ 1,791 $ (7,574 ) $ 150,157 Capital expenditures $ 76,572 $ — $ — $ 76,572 For the three months ended September 30, 2018 External revenue $ 444,762 $ 6,802 $ 6,086 $ 457,650 Intersegment revenue — — — — Total revenue $ 444,762 $ 6,802 $ 6,086 $ 457,650 EBITDA $ 164,135 $ 4,687 $ (5,951 ) $ 162,871 Capital expenditures $ 110,550 $ 18 $ — $ 110,568 For the nine months ended September 30, 2019 External revenue $ 1,360,919 $ 11,058 $ 17,583 $ 1,389,560 Intersegment revenue — 815 (815 ) — Total revenue $ 1,360,919 $ 11,873 $ 16,768 $ 1,389,560 EBITDA $ 448,837 $ 5,006 $ (19,835 ) $ 434,008 Capital expenditures $ 224,483 $ — $ — $ 224,483 For the nine months ended September 30, 2018 External revenue $ 1,271,527 $ 22,562 $ 17,634 $ 1,311,723 Intersegment revenue 359 — (359 ) — Total revenue $ 1,271,886 $ 22,562 $ 17,275 $ 1,311,723 EBITDA $ 452,982 $ 15,478 $ (9,704 ) $ 458,756 Capital expenditures $ 285,352 $ (76,757 ) $ — $ 208,595 The following table reconciles total consolidated EBITDA to reported Income (loss) from continuing operations before income taxes in our Condensed Consolidated Statements of Operations (amounts in thousands) : For the three months For the nine months 2019 2018 2019 2018 EBITDA $ 150,157 $ 162,871 $ 434,008 $ 458,756 Interest income and expense, net (43,308 ) (42,370 ) (125,161 ) (130,473 ) Depreciation and amortization (115,948 ) (107,846 ) (342,086 ) (315,930 ) Net income attributable to noncontrolling interests (2,797 ) 450 (1,359 ) 1,292 Income (loss) from continuing operations before income taxes $ (11,896 ) $ 13,105 $ (34,598 ) $ 13,645 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS EchoStar We and EchoStar, including EchoStar’s other subsidiaries, have agreed that we shall each have the right, but not the obligation, to receive from the other certain shared corporate services, including among other things: treasury, tax, accounting and reporting, risk management, cybersecurity, legal, internal audit, human resources, and information technology. These shared corporate services are generally provided at cost. Effective March 2017, and as a result of the Share Exchange, we implemented a new methodology for determining the cost of these shared corporate services. We and EchoStar, including EchoStar’s other subsidiaries, may each terminate a particular shared corporate service for any reason upon at least 30 days ’ notice. We recorded net expenses for shared corporate services received from EchoStar and its other subsidiaries of $1.2 million and $4.5 million for the three months ended September 30, 2019 and 2018, respectively, and $6.1 million and $14.1 million for the nine months ended September 30, 2019 and 2018 , respectively. We also reimburse EchoStar and its other subsidiaries from time to time for amounts paid by EchoStar and its other subsidiaries for costs and expenses attributable to us, and EchoStar and its other subsidiaries similarly reimburse us from time to time for amounts paid by us for costs and expenses attributable to EchoStar and its other subsidiaries. We report net payments under these arrangements in Advances to affiliates, net within current assets and we report net receipts under these arrangements in Advances from affiliates, net within current liabilities in our Condensed Consolidated Balance Sheets. No repayment schedule for these net advances has been determined. In addition, we occupy certain office space in buildings owned or leased by EchoStar and its other subsidiaries and pay a portion of the taxes, insurance, utilities and maintenance of the premises in accordance with the percentage of the space we occupy. EchoStar and certain of its other subsidiaries have also 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, net within noncurrent liabilities in our Condensed Consolidated Balance Sheets. BSS Transaction . Pursuant to the pre-closing restructuring contemplated by the Master Transaction Agreement, and as part of the BSS Transaction, we and our subsidiaries transferred certain of the BSS Business to BSS Corp., and we distributed all of the shares of BSS Corp. to EchoStar as a dividend. See Note 1 for further information. 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, we and a subsidiary of EchoStar, EchoStar Operating L.L.C. (“EOC”), entered into agreements in June 2015 and March 2016 to transfer to us EOC’s launch service contracts for the EchoStar XXI and EchoStar XXIII satellites, respectively, and to grant us certain rights to control the in-orbit operations of these satellites. EOC retained ownership of the satellites and agreed to make additional payments to us for amounts that we are 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. In connection with the BSS Transaction, the agreement relating to the EchoStar XXIII satellite was transferred to DISH Network. 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. EchoStar Mobile Limited Service Agreements. We provide services and lease equipment 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 other subsidiaries pay for these services are based on cost plus a fixed margin. We have converted the receivables for certain of these services into loans, bearing an annual interest rate of 5% , that mature in 2023. We recorded revenue in Services and other revenue - other of $4.9 million for each of the three months ended September 30, 2019 and 2018, and $14.8 million and $13.7 million for the nine months ended September 30, 2019 and 2018 , respectively, related to these services. Construction Management Services for EchoStar XXIV satellite . In August 2017, a subsidiary of EchoStar entered into a contract with Space Systems Loral, LLC for the design and construction of the EchoStar XXIV satellite, a new, next-generation, high throughput geostationary satellite, with a planned 2021 launch. We provide construction management services to EchoStar’s subsidiary for the construction of the EchoStar XXIV satellite. We charged EchoStar’s subsidiary and reduced our operating expenses by the costs of such services of $0.3 million for each of the three months ended September 30, 2019 and 2018, and $1.1 million and $0.8 million for each of the nine months ended September 30, 2019 and 2018 , respectively. DISH Network EchoStar and DISH have operated as separate publicly-traded companies since 2008. In addition, prior to the consummation of the Share Exchange in February 2017, DISH Network owned the Tracking Stock, which represented an aggregate 80.0% economic interest in the residential retail satellite broadband business of our Hughes segment. Following the consummation of the Share Exchange, the Tracking Stock was retired. A substantial majority of the voting power of the shares of each of EchoStar 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 the Spin-off, the Share Exchange and the BSS Transaction, EchoStar, we and certain other of EchoStar’s subsidiaries and DISH Network entered into certain agreements pursuant to which we and EchoStar and its other subsidiaries obtain certain products, services and rights from DISH Network; DISH Network obtains certain products, services and rights from us and EchoStar and its other subsidiaries; and such entities indemnify each other against certain liabilities arising from the respective businesses. Generally, the amounts we and/or EchoStar and its other subsidiaries or DISH Network pay for products and services provided under the agreements are based on cost plus a fixed margin (unless noted differently below), which varies depending on the nature of the products and services provided. We and/or EchoStar and its other subsidiaries also may enter into additional agreements with DISH Network in the future. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. Services and Other Revenue — DISH Network Satellite Capacity Leased to DISH Network. We have entered into certain agreements to lease satellite capacity pursuant to which we provide satellite services to DISH Network on certain satellites owned or leased by us. The fees for the services provided under these agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are providing services on the applicable satellite and the length of the service arrangements. The terms of each service arrangement is set forth below: EchoStar 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. 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. Telesat Obligation Agreement . In September 2009, we entered into an 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”). We transferred the Telesat Transponder Agreement to DISH Network as part of the BSS Transaction; however, we retained certain obligations related to DISH Network’s performance under that agreement. In September 2019, we and DISH Network entered into an agreement whereby DISH Network compensates us for retaining such obligations. 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 EchoStar’s completion of the acquisition of Hughes Communications, Inc. and its subsidiaries (the “Hughes Acquisition”), TerreStar and HNS entered into various agreements pursuant to which we provide, among other things, warranty, operations and maintenance and hosting services for TerreStar’s ground-based communications equipment. In December 2017, we and DISH Network amended these agreements, effective as of January 1, 2018, to reduce certain pricing terms through December 31, 2023 and to modify certain termination provisions. DISH Network generally has the right to continue to receive warranty services from us for our products on a month-to-month basis unless terminated by DISH Network upon at least 21 days ’ written notice to us. DISH Network generally has the right to continue to receive operations and maintenance services from us on a quarter-to-quarter basis unless operations and maintenance services are terminated by DISH Network upon at least 90 days ’ written notice to us. The provision of hosting services will continue until May 2022. In addition, DISH Network generally may terminate any and all services for convenience subject to providing us with prior notice and/or payment of termination charges. Hughes Broadband Distribution Agreement . Effective October 2012, we and DISH Network, entered into a distribution agreement (the “Distribution Agreement”) pursuant to which DISH Network has the right, but not the obligation, to market, sell and distribute our HughesNet service. DISH Network pays us a monthly per subscriber wholesale service fee for the HughesNet service based upon a subscriber’s service level and based upon certain volume subscription thresholds. The Distribution Agreement also provides that DISH Network has the right, but not the obligation, to purchase certain broadband equipment from us to support the sale of the HughesNet service. The Distribution Agreement had an initial term of five years with automatic renewal for successive one year terms unless terminated by either party with a written notice at least 180 days before the expiration of the then-current term. In February 2014, we and DISH Network entered into an amendment to the Distribution Agreement which, among other things, extended the initial term of the Distribution Agreement until March 2024. Upon expiration or termination of the Distribution Agreement, we and DISH Network will continue to provide our HughesNet service to the then-current DISH Network subscribers pursuant to the terms and conditions of the Distribution Agreement. DBSD North America Agreement . In March 2012, DISH Network completed its acquisition of all 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 Hughes Acquisition, DBSD North America and HNS entered into various agreements pursuant to which we provide, among other things, warranty, operations and maintenance and hosting services of DBSD North America’s gateway and ground-based communications equipment. In December 2017, we and DBSD North America amended these agreements, effective as of January 1, 2018, to reduce certain pricing terms through December 31, 2023 and to modify certain termination provisions. DBSD North America has the right to continue to receive operations and maintenance services from us on a quarter-to-quarter basis, unless terminated by DBSD North America upon at least 120 days ’ written notice to us. In February 2019, we further amended these agreements to provide DBSD North America with the right to continue to receive warranty services from us on a month-to-month basis until December 2023, unless terminated by DBSD North America upon at least 21 days’ written notice to us. The provision of hosting services will continue until February 2022 and will automatically renew for an additional five -year period until February 2027 unless terminated by DBSD North America upon at least 180 days ’ written notice to us. In addition, DBSD North America generally may terminate any and all such services for convenience, subject to providing us with prior notice and/or payment of termination charges. Hughes Equipment and Services Agreement. In February 2019, we and DISH Network entered into an agreement pursuant to which we will sell to DISH Network our HughesNet Service and HughesNet equipment that has been modified to meet DISH Network’s internet-of-things specifications for the transfer of data to DISH Network’s network operations centers. This agreement has an initial term of five years expiring February 2024 with automatic renewal for successive one-year terms unless terminated by DISH Network with at least 180 days ’ written notice to us or by us with at least 365 days ’ written notice to DISH Network. General and Administrative Expenses — DISH Network Amended and Restated Professional Services Agreement. In connection with the Spin-off, 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 provide 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 (collectively, the “TT&C Antennas”). In September 2019, in connection with the BSS Transaction, EchoStar amended 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 BSS Transaction and to remove our access to and the maintenance and support services for the TT&C 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 2020 and renews automatically for successive one -year periods thereafter, unless the agreement is terminated earlier by either party upon at least 60 days ’ notice. 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. Effective March 2017, we subleased from DISH Network certain space at 796 East Utah Valley Drive in American Fork, Utah for a period ending in August 2017. We exercised our option to renew this sublease for a five -year period ending in August 2022. We and DISH Network amended this sublease to, among other things, terminate this sublease in March 2019. The rent on a per square foot basis for the lease was comparable to per square foot rental rates of similar commercial property in the same geographic area at the time of the lease, and we were 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 October 2019, we provided a termination notice for our New Braunfels, Texas agreement to be effective May 2020. 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. In connection with the BSS Transaction, in September 2019, we entered into an agreement pursuant to which DISH Network will provide us with antenna space and power in Cheyenne, Wyoming for a period of five years commencing no later than October 2020, with four three-year renewal terms, with prior written notice no more than 120 days but no less than 90 days prior to the end of the then-current term. Other Agreements — DISH Network Master Transaction Agreement. In May 2019, EchoStar and BSS Corp. entered into the Master Transaction Agreement with DISH and Merger Sub with respect to the BSS Transaction. Pursuant to the terms of the Master Transaction Agreement, on September 10, 2019: (i) EchoStar and its subsidiaries and we and our subsidiaries transferred the BSS Business to BSS Corp.; (ii) EchoStar completed the Distribution; and (iii) immediately after the Distribution, (1) BSS Corp. became a wholly-owned subsidiary of DISH such that DISH owns and operates the BSS Business and (2) each issued and outstanding share of BSS Common Stock owned by EchoStar stockholders was converted into the right to receive 0.23523769 shares of DISH Common Stock. Following the consummation of the BSS Transaction, we no longer operate the BSS Business, which was a substantial portion of our ESS segment. The Master Transaction Agreement contained customary representations and warranties by the parties, including EchoStar’s representations relating to the assets, liabilities and financial condition of the BSS Business, and representations by DISH Network relating to its financial condition and liabilities. EchoStar and DISH Network have agreed to indemnify each other against certain losses with respect to breaches of certain representations and covenants and certain retained and assumed liabilities, respectively. See Note 1 for further information. 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 Hughes Satellite Systems Corporation 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 $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 and our subsidiaries entered into a share exchange agreement (the “Share Exchange Agreement”) with DISH and certain of its subsidiaries, pursuant to which, on February 28, 2017, EchoStar and certain of its and our subsidiaries received all of the shares of the Tracking Stock in exchange for 100% of the equity interests of certain of EchoStar’s subsidiaries that held substantially all of EchoStar’s EchoStar Technologies businesses and certain other assets. Following consummation of the Share Exchange, 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 contained customary representations and warranties by the parties, including representations by EchoStar related to the transferred assets, assumed liabilities and the financial condition of the transferred businesses. EchoStar and DISH Network also agreed to customary indemnification provisions whereby each party indemnifies the other against certain losses with respect to breaches of representations, warranties or covenants and certain liabilities and if certain actions undertaken by EchoStar or DISH causes the transaction to be taxable to the other party after closing. See Note 1 for further information. Hughes Broadband Master Services Agreement . In March 2017, we and DISH Network entered into a master service agreement (the “Hughes Broadband MSA”) pursuant to which DISH Network, among other things: (i) has the right, but not the obligation, to market, promote and solicit orders and upgrades for our HughesNet service and related equipment and other telecommunication services and (ii) installs HughesNet service equipment with respect to activations generated by DISH Network. Under the Hughes Broadband MSA, we and DISH Network make certain payments to each other relating to sales, upgrades, purchases and installation services. The Hughes Broadband MSA has an initial term of five years until March 2022 with automatic renewal for successive one -year terms. Either party has the ability to terminate the Hughes Broadband MSA, in whole or in part, for any reason upon at least 90 days ’ notice to the other party. Upon expiration or termination of the Hughes Broadband MSA, we will continue to provide our HughesNet service to subscribers and make certain payments to DISH Network pursuant to the terms and conditions of the Hughes Broadband MSA. We incurred sales incentives and other costs under the Hughes Broadband MSA totaling $3.7 million and $6.4 million for the three months ended September 30, 2019 and 2018 , respectively, and $13.2 million and $26.3 million for the nine months ended September 30, 2019 and 2018 , respectively. Share Exchange Intellectual Property and Technology License Agreement. Effective March 2017 in connection with the Share Exchange, EchoStar and one of its other subsidiaries and DISH Network entered into an intellectual property and technology license agreement (“IPTLA”) pursuant to which we, EchoStar and its other subsidiaries and DISH Network license to each other certain intellectual property and technology. The IPTLA will continue in perpetuity, unless mutually terminated by the parties. Pursuant to the IPTLA, we, EchoStar and its other subsidiaries granted to DISH Network a license to our and their intellectual property and technology for use by DISH Network, among other things, in connection with its continued operation of the businesses acquired pursuant to the Share Exchange, including a limited license to use the “ECHOSTAR” trademark during a transition period. EchoStar retains full ownership of the “ECHOSTAR” trademark. In addition, DISH Network granted a license back to us, EchoStar and its other subsidiaries, among other things, for the continued use of all intellectual property and technology that is used in our, EchoStar and its other subsidiaries’ retained businesses but the ownership of which was transferred to DISH Network pursuant to the Share Exchange. BSS Transaction Intellectual Property and Technology License Agreement . Effective September 2019, in connection with the BSS Transaction, we, EchoStar and DISH Network entered into an intellectual property and technology license agreement (the “BSS IPTLA”) pursuant to which we, EchoStar and its other subsidiaries and DISH Network license to each other certain intellectual property and technology. The BSS IPTLA will continue in perpetuity, unless mutually terminated by the parties. Pursuant to the BSS IPTLA, we, EchoStar and its other subsidiaries granted to DISH Network a license to our and their intellectual property and technology for use by DISH Network, among other things, in connection with its continued operation of the BSS Business acquired pursuant to the BSS Transaction, including a limited license to use the “ESS” and “ECHOSTAR SATELLITE SERVICES” trademarks during a transition period. EchoStar retains full ownership of the “ESS” and “ECHOSTAR SATELLITE SERVICES” trademarks. In addition, DISH Network granted a license back to us, EchoStar and its other subsidiaries, among other things, for the continued use of all intellectual property and technology that is used in our, EchoStar and its other subsidiaries’ retained businesses but the ownership of which was transferred to DISH Network pursuant to the BSS Transaction. TT&C Agreement . In September 2019, in connection with the BSS Transaction, we and a subsidiary of EchoStar entered into an agreement pursuant to which DISH Network provides TT&C services to us, EchoStar and its other subsidiaries for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon written notice at least 90 days prior to the initial expiration (the “TT&C Agreement”). 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. Any party is able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. Share Exchange Tax Matters Agreement. Effective March 2017, in connection with the Share Exchange, EchoStar and DISH entered into a tax matters agreement. This agreement governs certain rights, responsibilities and obligations of EchoStar and its subsidiaries with respect to taxes of the transferred businesses pursuant to the Share Exchange. Generally, EchoStar is responsible for all tax returns and tax liabilities for the transferred businesses and assets for periods prior to the Share Exchange and DISH Network is responsible for all tax returns and tax liabilities for the transferred businesses and assets from and after the Share Exchange. Both EchoStar and DISH Network made certain tax-related representations a |
Supplemental Guarantor and Non-
Supplemental Guarantor and Non-Guarantor Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
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 5 1/4% Senior Secured Notes due August 1, 2026 , 7 5/8% Senior Unsecured Notes due 2021 and 6 5/8% Senior Unsecured Notes due August 1, 2026 (collectively, the “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 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. The accompanying condensed consolidating financial information presented below should be read in conjunction with our accompanying condensed consolidated financial statements and notes thereto included herein. This financial information reflects the addition of a new Guarantor Subsidiary and the transfer of several former Guarantor Subsidiaries to DISH Network in connection with the BSS Transaction. Condensed Consolidating Balance Sheet as of September 30, 2019 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 1,013,313 $ 35,837 $ 27,121 $ — $ 1,076,271 Marketable investment securities, at fair value 695,249 347 — — 695,596 Trade accounts receivable and contract assets — 132,556 68,223 — 200,779 Trade accounts receivable - DISH Network — 12,516 666 — 13,182 Inventory — 57,852 24,825 — 82,677 Advances to affiliates, net 202,074 614,875 12,769 (755,882 ) 73,836 Other current assets 79 20,635 49,343 — 70,057 Current assets of discontinued operations — 5,866 — — 5,866 Total current assets 1,910,715 880,484 182,947 (755,882 ) 2,218,264 Property and equipment, net — 1,490,723 295,513 — 1,786,236 Operating lease right-of-use assets — 86,249 24,762 — 111,011 Goodwill — 504,173 — — 504,173 Regulatory authorizations — 400,000 — — 400,000 Other intangible assets, net — 32,979 — — 32,979 Investments in unconsolidated entities — 118,574 — — 118,574 Investment in subsidiaries 2,854,009 152,078 — (3,006,087 ) — Advances to affiliates 700 570,842 16,686 (568,944 ) 19,284 Deferred tax asset 79,228 — 5,425 (79,228 ) 5,425 Other noncurrent assets, net — 207,340 16,238 — 223,578 Total assets $ 4,844,652 $ 4,443,442 $ 541,571 $ (4,410,141 ) $ 5,419,524 Liabilities and Shareholders’ Equity Trade accounts payable $ — $ 104,251 $ 15,001 $ — $ 119,252 Trade accounts payable - DISH Network — 87 — — 87 Current portion of long-term debt and finance lease obligations — — 407 — 407 Advances from affiliates, net 369,651 228,368 158,715 (755,882 ) 852 Accrued expenses and other 38,531 200,019 72,765 — 311,315 Current liabilities of discontinued operations — 3,492 — — 3,492 Total current liabilities 408,182 536,217 246,888 (755,882 ) 435,405 Long-term debt and finance lease obligations, net 2,388,138 — 793 — 2,388,931 Deferred tax liabilities, net — 420,545 109 (79,228 ) 341,426 Operating lease liabilities — 74,564 19,668 — 94,232 Advances from affiliates, net — 493,918 108,165 (568,944 ) 33,139 Other noncurrent liabilities — 65,058 3,807 — 68,865 Total HSS shareholders’ equity 2,048,332 2,853,140 152,947 (3,006,087 ) 2,048,332 Noncontrolling interests — — 9,194 — 9,194 Total liabilities and shareholders’ equity $ 4,844,652 $ 4,443,442 $ 541,571 $ (4,410,141 ) $ 5,419,524 Condensed Consolidating Balance Sheet as of December 31, 2018 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 771,718 $ 46,353 $ 29,752 $ — $ 847,823 Marketable investment securities, at fair value 1,608,123 1,073 — — 1,609,196 Trade accounts receivable and contract assets — 128,831 72,265 — 201,096 Trade accounts receivable - DISH Network — 13,240 310 — 13,550 Inventory — 58,607 16,772 — 75,379 Advances to affiliates, net 109,433 536,600 27,174 (569,657 ) 103,550 Other current assets 72 22,848 41,378 (561 ) 63,737 Current assets of discontinued operations — 3,483 — — 3,483 Total current assets 2,489,346 811,035 187,651 (570,218 ) 2,917,814 Property and equipment, net — 1,620,534 301,377 — 1,921,911 Goodwill — 504,173 — — 504,173 Regulatory authorizations — 400,043 — — 400,043 Other intangible assets, net — 43,952 — — 43,952 Investments in unconsolidated entities — 126,369 — — 126,369 Investment in subsidiaries 3,362,589 192,370 — (3,554,959 ) — Advances to affiliates 700 86,280 — (86,980 ) — Deferred tax asset 54,001 — 3,581 (54,001 ) 3,581 Other noncurrent assets, net — 220,099 12,769 — 232,868 Noncurrent assets of discontinued operations — 742,461 — — 742,461 Total assets $ 5,906,636 $ 4,747,316 $ 505,378 $ (4,266,158 ) $ 6,893,172 Liabilities and Shareholders’ Equity Trade accounts payable $ — $ 88,342 $ 16,409 $ — $ 104,751 Trade accounts payable - DISH Network — 752 — — 752 Current portion of long-term debt and finance lease obligations 918,916 — 666 — 919,582 Advances from affiliates, net 181,926 282,268 106,331 (569,657 ) 868 Accrued expenses and other 43,410 137,995 48,307 (561 ) 229,151 Current liabilities of discontinued operations — 49,055 — — 49,055 Total current liabilities 1,144,252 558,412 171,713 (570,218 ) 1,304,159 Long-term debt and finance lease obligations, net 2,385,164 — 1,038 — 2,386,202 Deferred tax liabilities, net — 408,523 834 (54,001 ) 355,356 Advances from affiliates, net — — 120,418 (86,980 ) 33,438 Other noncurrent liabilities — 69,168 2,479 — 71,647 Noncurrent liabilities of discontinued operations — 349,875 — — 349,875 Total HSS shareholders’ equity 2,377,220 3,361,338 193,621 (3,554,959 ) 2,377,220 Noncontrolling interests — — 15,275 — 15,275 Total liabilities and shareholders’ equity $ 5,906,636 $ 4,747,316 $ 505,378 $ (4,266,158 ) $ 6,893,172 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended September 30, 2019 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 9,057 $ 690 $ — $ 9,747 Services and other revenue - other — 347,625 58,879 (8,855 ) 397,649 Equipment revenue — 76,905 4,246 (15,426 ) 65,725 Total revenue — 433,587 63,815 (24,281 ) 473,121 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 110,388 40,428 (8,387 ) 142,429 Cost of sales - equipment (exclusive of depreciation and amortization) — 63,437 3,177 (15,426 ) 51,188 Selling, general and administrative expenses — 88,853 23,602 (468 ) 111,987 Research and development expenses — 5,953 183 — 6,136 Depreciation and amortization — 99,099 16,849 — 115,948 Total costs and expenses — 367,730 84,239 (24,281 ) 427,688 Operating income (loss) — 65,857 (20,424 ) — 45,433 Other income (expense): Interest income 10,968 1,466 1,106 (1,240 ) 12,300 Interest expense, net of amounts capitalized (40,433 ) (1,016 ) (15,399 ) 1,240 (55,608 ) Gains (losses) on investments, net 37 33 — — 70 Equity in earnings (losses) of unconsolidated affiliates, net — (894 ) — — (894 ) Equity in earnings (losses) of subsidiaries, net 26,054 (44,409 ) — 18,355 — Other, net — (9 ) (13,188 ) — (13,197 ) Total other income (expense), net (3,374 ) (44,829 ) (27,481 ) 18,355 (57,329 ) Income (loss) from continuing operations before income taxes (3,374 ) 21,028 (47,905 ) 18,355 (11,896 ) Income tax benefit (provision) 7,590 (13,375 ) 609 — (5,176 ) Net income (loss) from continuing operations 4,216 7,653 (47,296 ) 18,355 (17,072 ) Net income (loss) from discontinued operations (4,109 ) 18,491 — — 14,382 Net income (loss) 107 26,144 (47,296 ) 18,355 (2,690 ) Less: Net loss attributable to noncontrolling interests — — (2,797 ) — (2,797 ) Net income (loss) attributable to HSS $ 107 $ 26,144 $ (44,499 ) $ 18,355 $ 107 Comprehensive income (loss): Net income (loss) $ 107 $ 26,144 $ (47,296 ) $ 18,355 $ (2,690 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (16,247 ) — (16,247 ) Unrealized gains (losses) on available-for-sale securities and other 15 — (132 ) — (117 ) Equity in other comprehensive income (loss) of subsidiaries, net (16,379 ) (16,379 ) — 32,758 — Total other comprehensive income (loss), net of tax (16,364 ) (16,379 ) (16,379 ) 32,758 (16,364 ) Comprehensive income (loss) (16,257 ) 9,765 (63,675 ) 51,113 (19,054 ) Less: Comprehensive loss attributable to noncontrolling interests — — (2,797 ) — (2,797 ) Comprehensive income (loss) attributable to HSS $ (16,257 ) $ 9,765 $ (60,878 ) $ 51,113 $ (16,257 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended September 30, 2018 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 13,493 $ 491 $ — $ 13,984 Services and other revenue - other — 339,066 57,312 (9,558 ) 386,820 Equipment revenue — 57,138 7,625 (7,917 ) 56,846 Total revenue — 409,697 65,428 (17,475 ) 457,650 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 113,982 36,206 (8,855 ) 141,333 Cost of sales - equipment (exclusive of depreciation and amortization) — 47,736 6,499 (7,917 ) 46,318 Selling, general and administrative expenses — 85,200 13,156 (703 ) 97,653 Research and development expenses — 6,544 — — 6,544 Depreciation and amortization — 94,643 13,203 — 107,846 Total costs and expenses — 348,105 69,064 (17,475 ) 399,694 Operating income (loss) — 61,592 (3,636 ) — 57,956 Other income (expense): Interest income 15,019 930 670 (922 ) 15,697 Interest expense, net of amounts capitalized (57,514 ) (254 ) (1,221 ) 922 (58,067 ) Gains (losses) on investments, net — 145 — — 145 Equity in earnings of unconsolidated affiliates, net — 992 — — 992 Equity in earnings (losses) of subsidiaries, net 61,476 (6,701 ) — (54,775 ) — Other, net 1 (15 ) (3,604 ) — (3,618 ) Total other income (expense), net 18,982 (4,903 ) (4,155 ) (54,775 ) (44,851 ) Income (loss) from continuing operations before income taxes 18,982 56,689 (7,791 ) (54,775 ) 13,105 Income tax benefit (provision) 9,488 (21,904 ) 1,449 — (10,967 ) Net income (loss) from continuing operations 28,470 34,785 (6,342 ) (54,775 ) 2,138 Net income from discontinued operations — 26,782 — — 26,782 Net income (loss) 28,470 61,567 (6,342 ) (54,775 ) 28,920 Less: Net income (loss) attributable to noncontrolling interests — — 450 — 450 Net income (loss) attributable to HSS $ 28,470 $ 61,567 $ (6,792 ) $ (54,775 ) $ 28,470 Comprehensive income (loss): Net income (loss) $ 28,470 $ 61,567 $ (6,342 ) $ (54,775 ) $ 28,920 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (9,460 ) — (9,460 ) Unrealized gains (losses) on available-for-sale securities and other 27 — (144 ) — (117 ) Equity in other comprehensive income (loss) of subsidiaries, net (9,014 ) (9,014 ) — 18,028 — Amounts reclassified to net income (loss): Realized gains on available-for-sale securities (1 ) — — — (1 ) Total other comprehensive income (loss), net of tax (8,988 ) (9,014 ) (9,604 ) 18,028 (9,578 ) Comprehensive income (loss) 19,482 52,553 (15,946 ) (36,747 ) 19,342 Less: Comprehensive loss attributable to noncontrolling interests — — (140 ) — (140 ) Comprehensive income (loss) attributable to HSS $ 19,482 $ 52,553 $ (15,806 ) $ (36,747 ) $ 19,482 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Nine Months Ended September 30, 2019 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 30,213 $ 1,808 $ — $ 32,021 Services and other revenue - other — 1,032,361 176,717 (26,623 ) 1,182,455 Equipment revenue — 190,394 21,961 (37,271 ) 175,084 Total revenue — 1,252,968 200,486 (63,894 ) 1,389,560 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 330,634 120,061 (24,799 ) 425,896 Cost of sales - equipment (exclusive of depreciation and amortization) — 164,027 15,988 (37,271 ) 142,744 Selling, general and administrative expenses 88 290,556 64,739 (1,824 ) 353,559 Research and development expenses — 18,893 518 — 19,411 Depreciation and amortization — 293,519 48,567 — 342,086 Total costs and expenses 88 1,097,629 249,873 (63,894 ) 1,283,696 Operating income (loss) (88 ) 155,339 (49,387 ) — 105,864 Other income (expense): Interest income 44,693 3,403 2,198 (2,953 ) 47,341 Interest expense, net of amounts capitalized (150,234 ) (7,302 ) (17,919 ) 2,953 (172,502 ) Gains (losses) on investments, net 437 (727 ) — — (290 ) Equity in earnings (losses) of unconsolidated affiliates, net — (2,882 ) — — (2,882 ) Equity in earnings (losses) of subsidiaries, net 110,118 (77,204 ) — (32,914 ) — Other, net (100 ) (57 ) (11,972 ) — (12,129 ) Total other income (expense), net 4,914 (84,769 ) (27,693 ) (32,914 ) (140,462 ) Income (loss) from continuing operations before income taxes 4,826 70,570 (77,080 ) (32,914 ) (34,598 ) Income tax benefit (provision) 25,193 (24,656 ) (1,722 ) — (1,185 ) Net income (loss) from continuing operations 30,019 45,914 (78,802 ) (32,914 ) (35,783 ) Net income (loss) from discontinued operations (6,709 ) 64,443 — — 57,734 Net income (loss) 23,310 110,357 (78,802 ) (32,914 ) 21,951 Less: Net loss attributable to noncontrolling interests — — (1,359 ) — (1,359 ) Net income (loss) attributable to HSS $ 23,310 $ 110,357 $ (77,443 ) $ (32,914 ) $ 23,310 Comprehensive income (loss): Net income (loss) $ 23,310 $ 110,357 $ (78,802 ) $ (32,914 ) $ 21,951 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (13,927 ) — (13,927 ) Unrealized gains (losses) on available-for-sale securities and other 2,333 — (145 ) — 2,188 Equity in other comprehensive income (loss) of subsidiaries, net (14,072 ) (14,072 ) — 28,144 — Amounts reclassified to net income (loss): Realized gains on available-for-sale securities (400 ) — — — (400 ) Total other comprehensive income (loss), net of tax (12,139 ) (14,072 ) (14,072 ) 28,144 (12,139 ) Comprehensive income (loss) 11,171 96,285 (92,874 ) (4,770 ) 9,812 Less: Comprehensive loss attributable to noncontrolling interests — — (1,359 ) — (1,359 ) Comprehensive income (loss) attributable to HSS $ 11,171 $ 96,285 $ (91,515 ) $ (4,770 ) $ 11,171 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Nine Months Ended September 30, 2018 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 46,613 $ 1,505 $ — $ 48,118 Services and other revenue - other — 970,251 171,767 (28,547 ) 1,113,471 Equipment revenue — 157,190 16,789 (23,845 ) 150,134 Total revenue — 1,174,054 190,061 (52,392 ) 1,311,723 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 335,007 110,441 (26,797 ) 418,651 Cost of sales - equipment (exclusive of depreciation and amortization) — 137,596 13,503 (23,845 ) 127,254 Selling, general and administrative expenses — 251,053 36,359 (1,750 ) 285,662 Research and development expenses — 20,328 — — 20,328 Depreciation and amortization — 277,889 38,041 — 315,930 Total costs and expenses — 1,021,873 198,344 (52,392 ) 1,167,825 Operating income (loss) — 152,181 (8,283 ) — 143,898 Other income (expense): Interest income 39,548 2,855 1,679 (2,720 ) 41,362 Interest expense, net of amounts capitalized (172,438 ) 983 (3,100 ) 2,720 (171,835 ) Gains (losses) on investments, net — 262 — — 262 Equity in earnings of unconsolidated affiliates, net — 3,722 — — 3,722 Equity in earnings (losses) of subsidiaries, net 191,915 (18,559 ) — (173,356 ) — Other, net 7 9,377 (13,148 ) — (3,764 ) Total other income (expense), net 59,032 (1,360 ) (14,569 ) (173,356 ) (130,253 ) Income (loss) from continuing operations before income taxes 59,032 150,821 (22,852 ) (173,356 ) 13,645 Income tax benefit (provision) 29,670 (48,681 ) 5,255 — (13,756 ) Net income (loss) from continuing operations 88,702 102,140 (17,597 ) (173,356 ) (111 ) Net income from discontinued operations — 90,105 — — 90,105 Net income (loss) 88,702 192,245 (17,597 ) (173,356 ) 89,994 Less: Net income (loss) attributable to noncontrolling interests — — 1,292 — 1,292 Net income (loss) attributable to HSS $ 88,702 $ 192,245 $ (18,889 ) $ (173,356 ) $ 88,702 Comprehensive income (loss): Net income (loss) $ 88,702 $ 192,245 $ (17,597 ) $ (173,356 ) $ 89,994 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (39,874 ) — (39,874 ) Unrealized gains (losses) on available-for-sale securities and other 186 — (385 ) — (199 ) Equity in other comprehensive income (loss) of subsidiaries, net (38,870 ) (38,870 ) — 77,740 — Amounts reclassified to net income (loss): Realized gains on available-for-sale securities (4 ) — — — (4 ) Total other comprehensive income (loss), net of tax (38,688 ) (38,870 ) (40,259 ) 77,740 (40,077 ) Comprehensive income (loss) 50,014 153,375 (57,856 ) (95,616 ) 49,917 Less: Comprehensive income attributable to noncontrolling interests — — (97 ) — (97 ) Comprehensive income (loss) attributable to HSS $ 50,014 $ 153,375 $ (57,759 ) $ (95,616 ) $ 50,014 Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2019 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 23,310 $ 110,357 $ (78,802 ) $ (32,914 ) $ 21,951 Adjustments to reconcile net income (loss) to net cash flows from operating activities (132,557 ) 493,418 105,514 32,914 499,289 Net cash flows from operating activities (109,247 ) 603,775 26,712 — 521,240 Cash flows from investing activities: Purchases of marketable investment securities (462,625 ) — — — (462,625 ) Sales and maturities of marketable investment securities 1,375,245 (3 ) — — 1,375,242 Expenditures for property and equipment — (162,643 ) (62,351 ) — (224,994 ) Expenditures for externally marketed software — (21,364 ) — — (21,364 ) Dividend received from unconsolidated entity — 2,284 — — 2,284 Distributions (contributions) and advances from (to) subsidiaries, net 359,145 (38,282 ) — (320,863 ) — Net cash flows from investing activities 1,271,765 (220,008 ) (62,351 ) (320,863 ) 668,543 Cash flows from financing activities: Repayment of debt and finance lease obligations — (27,203 ) (1,932 ) — (29,135 ) Repurchase and maturity of debt (920,923 ) — — — (920,923 ) Purchase of noncontrolling interest — (2,666 ) (4,647 ) — (7,313 ) Repayment of in-orbit incentive obligations — (5,269 ) — — (5,269 ) Contributions (distributions) and advances (to) from parent, net — (359,145 ) 38,282 320,863 — Proceeds from issuance of debt — — 1,172 — 1,172 Net cash flows from financing activities (920,923 ) (394,283 ) 32,875 320,863 (961,468 ) Effect of exchange rates on cash and cash equivalents — — 310 — 310 Net increase (decrease) in cash and cash equivalents, including restricted amounts 241,595 (10,516 ) (2,454 ) — 228,625 Cash and cash equivalents, including restricted amounts, beginning of period 771,718 46,353 30,548 — 848,619 Cash and cash equivalents, including restricted amounts, end of period $ 1,013,313 $ 35,837 $ 28,094 $ — $ 1,077,244 Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2018 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 88,702 $ 192,245 $ (17,597 ) $ (173,356 ) $ 89,994 Adjustments to reconcile net income (loss) to net cash flows from operating activities (201,774 ) 438,805 55,249 173,356 465,636 Net cash flows from operating activities (113,072 ) 631,050 37,652 — 555,630 Cash flows from investing activities: Purchases of marketable investment securities (1,546,479 ) — — — (1,546,479 ) Sales and maturities of marketable investment securities 799,250 — — 799,250 Expenditures for property and equipment — (223,484 ) (62,739 ) — (286,223 ) Refunds and other receipts related to property and equipment — 77,524 — — 77,524 Expenditures for externally marketed software — (24,568 ) — — (24,568 ) Payment for satellite launch services — — (7,125 ) — (7,125 ) Distributions (contributions) and advances from (to) subsidiaries, net 397,631 (32,985 ) — (364,646 ) — Other — (991 ) — — (991 ) Net cash flows from investing activities (349,598 ) (204,504 ) (69,864 ) (364,646 ) (988,612 ) Cash flows from financing activities: Repayment of debt and finance lease obligations — (26,545 ) (1,219 ) — (27,764 ) Repayment of in-orbit incentive obligations — (4,048 ) — — (4,048 ) Capital contribution from EchoStar Corporation 7,125 — — — 7,125 Contributions (distributions) and advances (to) from parent, net — (397,631 ) 32,985 364,646 — Net cash flows from financing activities 7,125 (428,224 ) 31,766 364,646 (24,687 ) Effect of exchange rates on cash and cash equivalents — — (3,350 ) — (3,350 ) Net increase (decrease) in cash and cash equivalents, including restricted amounts (455,545 ) (1,678 ) (3,796 ) — (461,019 ) 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 $ 1,291,333 $ 40,695 $ 30,307 $ — $ 1,362,335 |
Supplemental Financial Informat
Supplemental Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTAL FINANCIAL INFORMATION | SUPPLEMENTAL FINANCIAL INFORMATION Noncash Investing and Financing Activities The following table presents the noncash investing and financing activities (amounts in thousands) : For the nine months ended September 30, 2019 2018 Increase (decrease) in capital expenditures included in accounts payable, net $ (1,883 ) $ 24,408 Noncash net assets exchanged for BSS Transaction (Note 5) $ 342,823 $ — 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 $1.0 million , respectively, for the nine months ended September 30, 2019 and $0.8 million each for the nine months ended September 30, 2018 . These amounts are included in Other noncurrent assets, net in our Condensed Consolidated Balance Sheets . Fair Value of In-Orbit Incentives As of September 30, 2019 and December 31, 2018 , the fair values of our in-orbit incentive obligations from our continuing operations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $57.1 million and $57.9 million , respectively. Contract Acquisition and Fulfillment Costs Unamortized contract acquisition costs totaled $112.5 million and $103.6 million as of September 30, 2019 and December 31, 2018 , respectively, and related amortization expense totaled $23.8 million and $22.0 million for the three months ended September 30, 2019 and 2018, respectively, and $70.4 million and $64.3 million for the nine months ended September 30, 2019 and 2018 , respectively. Unamortized contract fulfillment costs were $3.0 million as of each of September 30, 2019 and December 31, 2018 and related amortization expense was de minimis for the three and nine months ended September 30, 2019 and 2018 , respectively. 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 (amounts in thousands) : For the three months For the nine months ended September 30, 2019 2018 2019 2018 Cost of sales $ 6,564 $ 5,555 $ 18,275 $ 18,443 Research and development $ 6,136 $ 6,544 $ 19,411 $ 20,328 Capitalized Software Costs As of September 30, 2019 and December 31, 2018 , the net carrying amount of externally marketed software was $99.7 million and $96.8 million , respectively, of which $33.1 million and $28.8 million , respectively, is under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $6.0 million and $9.6 million for the three months ended September 30, 2019 and 2018 , respectively, and $21.4 million and $24.6 million for the nine months ended September 30, 2019 and 2018 , respectively. We recorded amortization expense relating to the development of externally marketed software of $6.2 million and $5.8 million for the three months ended September 30, 2019 and 2018 , respectively, and $18.4 million and $16.9 million for the nine months ended September 30, 2019 and 2018 , respectively. The weighted average useful life of our externally marketed software was three years as of September 30, 2019 . Supplemental Cash Flows from Discontinued Operations Significant supplemental cash flow information and adjustments to reconcile net income to net cash flow from operating activities for discontinued operations for the nine months ended September 30, 2019 and 2018 are as below: For the nine months ended September 30, 2019 2018 Operating Activities Net income from discontinued operations $ 57,734 $ 90,105 Depreciation and amortization $ 85,926 $ 93,447 Investing Activities Expenditures for property and equipment $ (510 ) $ (104 ) Financing Activities Repayment of lease obligations $ 29,588 $ 26,545 Repayment of in-orbit incentive obligations $ 2,853 $ 1,953 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
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. However, 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, 2018 . |
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 | Reclassification Certain prior period amounts have been reclassified to conform with the current period presentation. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements Leases We adopted Accounting Standard Update (“ASU”) No. 2016-02 - Leases (Topic 842) , as amended, or Accounting Standard Codification (“ASC 842”), as of January 1, 2019. The primary impact of ASC 842 on our consolidated financial statements is the recognition of right-of-use assets and related liabilities on our consolidated balance sheet for operating leases where we are the lessee. We elected to apply the requirements of the new standard on January 1, 2019 and we have not restated our consolidated financial statements for prior periods. Consequently, certain amounts reported in our Condensed Consolidated Balance Sheet as of September 30, 2019 are not comparable to those reported as of December 31, 2018 or earlier dates. Our adoption of ASC 842 did not have a material impact on the results of our operations or on our cash flows for the three and nine months ended September 30, 2019. Under ASC 842, leases are classified either as operating leases or finance leases. The lease classification affects the recognition of lease expense by lessees in the statement of operations. Consistent with prior accounting standards, operating lease expense is included in operating expenses, while finance lease expense is split between depreciation expense and interest expense. ASC 842 does not fundamentally change the lessor accounting model, which requires leases to be classified as operating leases or sales-type leases. Operating lease revenue generally is recognized over the lease term, while sales-type lease revenue is recognized primarily upon lease commencement, except for amounts representing interest on related accounts receivable. Except for the new requirement to recognize assets and liabilities on the balance sheet for operating leases where we are the lessee, under our ASC 842 transition method we continue to apply prior accounting standards to leases that commenced prior to 2019. We fully apply ASC 842 requirements only to leases that commenced or were modified on or after January 1, 2019. We elected certain practical expedients under our transition method, including elections to not reassess (i) whether a contract is or contains a lease and (ii) the classification of existing leases. We also elected not to apply hindsight in determining whether optional renewal periods should be included in the lease term, which in some instances may impact the initial measurement of the lease liability and the calculation of straight-line expense over the lease term for operating leases. As a result of our transition elections, there was no change in our recognition of revenue and expense for leases that commenced prior to 2019. In addition, the application of ASC 842 requirements to new and modified leases did not materially affect our recognition of revenue or expenses for the three and nine months ended September 30, 2019. Our adoption of ASC 842 resulted in the following adjustments from our continuing operations to our Condensed Consolidated Balance Sheet as of December 31, 2018 (amounts in thousands) : Balance December 31,2018 Adoption of ASC 842 Increase (Decrease) Balance January 1, 2019 Prepaids and deposits $ 45,198 $ (28 ) $ 45,170 Operating lease right-of-use assets $ — $ 117,006 $ 117,006 Other noncurrent assets, net $ 236,449 $ (7,272 ) $ 229,177 Total assets $ 6,893,172 $ 109,706 $ 7,002,878 Accrued expenses and other $ 61,366 $ 14,444 $ 75,810 Operating lease liabilities $ — $ 99,133 $ 99,133 Other noncurrent liabilities $ 71,647 $ (3,871 ) $ 67,776 Total liabilities $ 4,500,677 $ 109,706 $ 4,610,383 Total liabilities and shareholders’ equity $ 6,893,172 $ 109,706 $ 7,002,878 Our accounting policies under ASC 842 are summarized below. Additional disclosures required by the new standard are included in Note 4 . Lessee Accounting We lease real estate, satellite capacity and equipment in the conduct of our business operations. For contracts entered into on or after January 1, 2019, we assess at contract inception whether the contract is, or contains, a lease. Generally, we determine that a lease exists when (i) the contract involves the use of a distinct identified asset, (ii) we obtain the right to substantially all economic benefits from use of the asset and (iii) we have the right to direct the use of the asset. A lease is classified as a finance lease when one or more of the following criteria are met: (i) the lease transfers ownership of the asset by the end of the lease term, (ii) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (iii) the lease term is for a major part of the remaining useful life of the asset, (iv) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset or (v) the asset is of a specialized nature and there is not expected to be an alternative use to the lessor at the end of the lease term. A lease is classified as an operating lease if it does not meet any of these criteria. At the lease commencement date, we recognize a right-of-use asset and a lease liability for all leases, except short-term leases with an original term of 12 months or less. The right-of-use asset represents the right to use the leased asset for the lease term. The lease liability represents the present value of the lease payments under the lease. The right-of-use asset is initially measured at cost, which primarily comprises the initial amount of the lease liability, plus any prepayments to the lessor and initial direct costs such as brokerage commissions, less any lease incentives received. All right-of-use assets are periodically reviewed for impairment in accordance with standards that apply to long-lived assets. The lease liability is initially measured at the present value of the lease payments, discounted using an estimate of our incremental borrowing rate for a collateralized loan with the same term as the underlying lease. The incremental borrowing rates used for the initial measurement of lease liabilities as of January 1, 2019 were based on the original lease terms . Lease payments included in the measurement of lease liabilities consist of (i) fixed lease payments for the noncancelable lease term, (ii) fixed lease payments for optional renewal periods where it is reasonably certain the renewal option will be exercised, and (iii) variable lease payments that depend on an underlying index or rate, based on the index or rate in effect at lease commencement. Certain of our real estate lease agreements require payments for non-lease costs such as utilities and common area maintenance. We have elected an accounting policy, as permitted by ASC 842, not to account for such payments separately from the related lease payments. Our policy election results in a higher initial measurement of lease liabilities when such non-lease payments are fixed amounts. Certain of our real estate lease agreements require variable lease payments that do not depend on an underlying index or rate, such as sales and value-added taxes and our proportionate share of actual property taxes, insurance and utilities. Such payments and changes in payments based on a rate or index are recognized in operating expenses when incurred. Lease expense for operating leases consists of the fixed lease payments recognized on a straight-line basis over the lease term plus variable lease payments as incurred. Lease expense for finance leases consists of the amortization of the right-of-use asset on a straight-line basis over the lease term and interest expense on the lease liability based on the discount rate at lease commencement. For both operating and finance leases, lease payments are allocated between a reduction of the lease liability and interest expense. Amortization of the right-of-use asset for operating leases reflects amortization of the lease liability, any differences between straight-line expense and related lease payments during the accounting period, and any impairments. Lessor Accounting We lease satellite capacity, communications equipment and real estate to certain of our customers. We identify and determine the classification of such leases as operating leases or sales-type leases based on the criteria discussed above for lessees. A lease is classified as a sales-type lease if it meets the above criteria for a finance lease; otherwise it is classified as an operating lease. Some of our leases are embedded in contracts with customers that include non-lease performance obligations. For such contracts, except where we have elected otherwise as discussed below, we allocate consideration in the contract between lease and non-lease components based on their relative standalone selling prices. We have elected an accounting policy, as permitted by ASC 842, to not separate the lease of equipment from related services in our HughesNet satellite internet service (the “HughesNet service”) contracts with consumers. We account for all revenue from such contracts as non-lease service revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Our accounting for revenue from operating leases and sales-type leases was not substantially changed by our adoption of ASC 842. However, we anticipate that certain leases that would have been classified as operating leases under prior accounting standards may be classified as sales-type leases under ASC 842. Operating lease revenue generally is recognized on a straight-line basis over the lease term. Sales-type lease revenue and a corresponding receivable generally are recognized at lease commencement based on the present value of the future lease payments and related interest income on the receivable is recognized over the lease term. Payments under sales-type leases generally are discounted at the interest rate implicit in the lease. Recently Issued Accounting Pronouncements Not Yet Adopted Credit Losses In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments , which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses instead of incurred losses. It also modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are currently assessing the impact of adopting this new accounting standard on our Consolidated Financial Statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of new accounting pronouncements and changes in accounting principles | Our adoption of ASC 842 resulted in the following adjustments from our continuing operations to our Condensed Consolidated Balance Sheet as of December 31, 2018 (amounts in thousands) : Balance December 31,2018 Adoption of ASC 842 Increase (Decrease) Balance January 1, 2019 Prepaids and deposits $ 45,198 $ (28 ) $ 45,170 Operating lease right-of-use assets $ — $ 117,006 $ 117,006 Other noncurrent assets, net $ 236,449 $ (7,272 ) $ 229,177 Total assets $ 6,893,172 $ 109,706 $ 7,002,878 Accrued expenses and other $ 61,366 $ 14,444 $ 75,810 Operating lease liabilities $ — $ 99,133 $ 99,133 Other noncurrent liabilities $ 71,647 $ (3,871 ) $ 67,776 Total liabilities $ 4,500,677 $ 109,706 $ 4,610,383 Total liabilities and shareholders’ equity $ 6,893,172 $ 109,706 $ 7,002,878 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract asset and liabilities | The following table provides information about our contract balances from our continuing operations with customers, including amounts for certain embedded leases (amounts in thousands): As of September 30, 2019 December 31, 2018 Trade accounts receivable: Sales and services $ 163,006 $ 154,415 Leasing 3,013 7,990 Total 166,019 162,405 Contract assets 60,012 55,295 Allowance for doubtful accounts (25,252 ) (16,604 ) Total trade accounts receivable and contract assets, net $ 200,779 $ 201,096 Trade accounts receivable - DISH Network: Sales and services $ 12,272 $ 12,274 Leasing 910 1,276 Total trade accounts receivable - DISH Network, net $ 13,182 $ 13,550 Contract liabilities: Current $ 109,557 $ 72,249 Noncurrent 10,730 10,133 Total contract liabilities $ 120,287 $ 82,382 |
Disaggregation of revenue | The following table disaggregates revenue from customer contracts attributed to our North America (the U.S. and its territories, Mexico and Canada), South and Central America and other foreign locations (Asia, Africa, Australia, Europe, and the Middle East) as well as by segment, based on the location where the goods or services are provided (amounts in thousands): Hughes ESS Corporate and Other Consolidated For the three months ended September 30, 2019 North America $ 389,264 $ 4,098 $ 571 $ 393,933 South and Central America 31,747 — — 31,747 All other 42,724 — 4,717 47,441 Total revenue $ 463,735 $ 4,098 $ 5,288 $ 473,121 For the three months ended September 30, 2018 North America $ 373,460 $ 6,802 $ 1,187 $ 381,449 South and Central America 27,593 — — 27,593 All other 43,709 — 4,899 48,608 Total revenue $ 444,762 $ 6,802 $ 6,086 $ 457,650 For the nine months ended September 30, 2019 North America $ 1,129,491 $ 11,873 $ 2,454 $ 1,143,818 South and Central America 89,005 — — 89,005 All other 142,423 — 14,314 156,737 Total revenue $ 1,360,919 $ 11,873 $ 16,768 $ 1,389,560 For the nine months ended September 30, 2018 North America $ 1,072,187 $ 22,562 $ 3,590 $ 1,098,339 South and Central America 75,813 — — 75,813 All other 123,886 — 13,685 137,571 Total revenue $ 1,271,886 $ 22,562 $ 17,275 $ 1,311,723 Nature of Products and Services The following table disaggregates revenue based on the nature of products and services and by segment (amounts in thousands) : Hughes ESS Corporate and Other Consolidated For the three months ended September 30, 2019 Equipment $ 21,106 $ — $ — $ 21,106 Services 385,477 2,737 234 388,448 Design, development and construction services 42,328 — — 42,328 Revenue from sales and services 448,911 2,737 234 451,882 Lease revenue 14,824 1,361 5,054 21,239 Total revenue $ 463,735 $ 4,098 $ 5,288 $ 473,121 For the three months ended September 30, 2018 Equipment $ 40,222 $ — $ — $ 40,222 Services 337,585 5,766 322 343,673 Design, development and construction services 16,624 — — 16,624 Revenue from sales and services 394,431 5,766 322 400,519 Lease revenue 50,331 1,036 5,764 57,131 Total revenue $ 444,762 $ 6,802 $ 6,086 $ 457,650 For the nine months ended September 30, 2019 Equipment $ 77,663 $ — $ — $ 77,663 Services 1,147,868 7,953 878 1,156,699 Design, development and construction services 93,254 — — 93,254 Revenue from sales and services 1,318,785 7,953 878 1,327,616 Lease revenue 42,134 3,920 15,890 61,944 Total revenue $ 1,360,919 $ 11,873 $ 16,768 $ 1,389,560 For the nine months ended September 30, 2018 Equipment $ 103,458 $ — $ — $ 103,458 Services 975,647 17,632 1,026 994,305 Design, development and construction services 46,676 — — 46,676 Revenue from sales and services 1,125,781 17,632 1,026 1,144,439 Lease revenue 146,105 4,930 16,249 167,284 Total revenue $ 1,271,886 $ 22,562 $ 17,275 $ 1,311,723 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease assets and liabilities | Our Condensed Consolidated Balance Sheets includes the following amounts for right-of-use assets and lease liabilities from our continuing operations as of September 30, 2019 (amounts in thousands) : As of Right-of-use assets: Operating $ 111,011 Finance 328,519 Total right-of-use assets $ 439,530 Lease liabilities: Current: Operating $ 14,204 Finance 407 Noncurrent: Operating 94,232 Finance 793 Total lease liabilities $ 109,636 |
Lease cost, weighted average term, discount rates and cash flows | The following tables detail components of lease cost and weighted average lease terms and discount rates for operating leases and finance leases from our continuing operations (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Lease cost: Operating lease cost $ 5,400 $ 15,957 Finance lease cost: Amortization of right-of-use assets 6,506 19,656 Interest on lease liabilities 46 135 Short-term lease cost 105 381 Variable lease cost 2,690 6,253 Total lease cost $ 14,747 $ 42,382 As of Lease term and discount rate: Weighted average remaining lease term (in years): Finance leases 1.90 Operating leases 10.08 Weighted average discount rate: Finance leases 11.47 % Operating leases 6.12 % The following table details cash flows for operating leases and finance leases from our continuing operations (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,025 $ 14,731 Operating cash flows from finance leases $ 46 $ 135 Financing cash flows from finance leases $ 168 $ 505 |
Operating lease liability maturity | The following table presents maturities of our lease liabilities from our continuing operations as of September 30, 2019 (amounts in thousands) : Operating Leases Finance Leases Total Year ending December 31, 2019 (remainder) $ 5,195 $ 174 $ 5,369 2020 19,761 636 20,397 2021 17,272 493 17,765 2022 14,988 96 15,084 2023 14,069 — 14,069 After 2023 80,795 — 80,795 Total lease payments 152,080 1,399 153,479 Less: Interest (43,644 ) (199 ) (43,843 ) Present value of lease liabilities $ 108,436 $ 1,200 $ 109,636 |
Finance lease liability maturity | The following table presents maturities of our lease liabilities from our continuing operations as of September 30, 2019 (amounts in thousands) : Operating Leases Finance Leases Total Year ending December 31, 2019 (remainder) $ 5,195 $ 174 $ 5,369 2020 19,761 636 20,397 2021 17,272 493 17,765 2022 14,988 96 15,084 2023 14,069 — 14,069 After 2023 80,795 — 80,795 Total lease payments 152,080 1,399 153,479 Less: Interest (43,644 ) (199 ) (43,843 ) Present value of lease liabilities $ 108,436 $ 1,200 $ 109,636 |
Sale-type lease revenue by type | We report revenue from sales-type leases at the commencement date in Equipment revenue and we report periodic interest income on sales-type lease receivables in Services and other revenue. We report operating lease revenue in Services and other revenue . The following table details our lease revenue from our continuing operations as follows (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Sales-type lease revenue: Revenue at lease commencement $ 2,291 $ 4,167 Interest income 206 716 Operating lease revenue 18,742 57,061 Total lease revenue $ 21,239 $ 61,944 |
Operating lease revenue by type | We report revenue from sales-type leases at the commencement date in Equipment revenue and we report periodic interest income on sales-type lease receivables in Services and other revenue. We report operating lease revenue in Services and other revenue . The following table details our lease revenue from our continuing operations as follows (amounts in thousands): For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Sales-type lease revenue: Revenue at lease commencement $ 2,291 $ 4,167 Interest income 206 716 Operating lease revenue 18,742 57,061 Total lease revenue $ 21,239 $ 61,944 |
Present maturities of operating lease maturities | The following table presents maturities of our operating lease payments from our continuing operations as of September 30, 2019 (amounts in thousands) : Amounts Year ending December 31, 2019 (remainder) $ 9,566 2020 36,154 2021 33,352 2022 31,912 2023 30,241 After 2023 151,284 Total lease payments $ 292,509 |
Property plant and equipment subject to operating leases | Property and equipment, net as of September 30, 2019 and Depreciation and amortization for the three and nine months then ended included the following amounts for assets subject to operating leases from our continuing operations (amounts in thousands): As of For the three months ended September 30, 2019 For the nine months ended September 30, 2019 Cost Accumulated Depreciation Net Depreciation Expense Customer premises equipment $ 1,400,325 $ (1,026,135 ) $ 374,190 $ 49,314 $ 149,724 Satellites 104,620 (29,616 ) 75,004 1,802 5,277 Total $ 1,504,945 $ (1,055,751 ) $ 449,194 $ 51,116 $ 155,001 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Operating results and carrying amounts of assets and liabilities of discontinued operations | The following table presents the aggregate carrying amounts of assets and liabilities of our discontinued operations (amounts in thousands) : As of September 30, 2019 December 31, 2018 Assets Trade accounts receivable and contract assets, net $ 5,866 $ — Prepaids and deposits — 3,483 Current assets of discontinued operations 5,866 3,483 Property and equipment, net — 660,270 Regulatory authorizations, net — 65,615 Other noncurrent assets, net — 16,576 Noncurrent assets of discontinued operations — 742,461 Total assets of discontinued operations $ 5,866 $ 745,944 Liabilities: Trade accounts payable $ 506 $ — Current portion of finance lease obligations — 39,995 Accrued interest — 1,572 Accrued expenses and other 2,986 7,488 Current liabilities of discontinued operations 3,492 49,055 Finance lease obligations — 187,002 Deferred tax liabilities, net — 133,380 Other noncurrent liabilities — 29,493 Noncurrent liabilities of discontinued operations — 349,875 Total liabilities of discontinued operations $ 3,492 $ 398,930 The following table presents the operating results of our discontinued operations (amounts in thousands) : For the three months For the nine months 2019 2018 2019 2018 Revenue: Services and other revenue - DISH Network $ 54,297 $ 70,805 $ 195,942 $ 234,425 Services and other revenue - other 4,915 6,400 17,715 19,198 Total revenue 59,212 77,205 213,657 253,623 Costs and Expenses: Cost of equipment, services and other 7,307 9,714 28,033 30,274 Selling, general and administrative expenses 4,107 22 6,749 38 Depreciation and amortization 23,788 31,105 85,926 93,447 Total costs and expenses 35,202 40,841 120,708 123,759 Operating income 24,010 36,364 92,949 129,864 Other Income (Expense): Interest expense (4,632 ) (7,023 ) (17,365 ) (21,790 ) Total other income (expense), net (4,632 ) (7,023 ) (17,365 ) (21,790 ) Income from discontinued operations before income taxes 19,378 29,341 75,584 108,074 Income tax benefit (provision), net (4,996 ) (2,559 ) (17,850 ) (17,969 ) Net income (loss) from discontinued operations $ 14,382 $ 26,782 $ 57,734 $ 90,105 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) and Related Tax Effects (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The changes in the balances of Accumulated other comprehensive loss by component were as follows (amounts in thousands) : Cumulative Foreign Currency Translation Losses Unrealized Gain (Loss) On Available-For-Sale Securities Other Accumulated Balance, December 31, 2017 $ (52,251 ) $ (648 ) $ 77 $ (52,822 ) Cumulative effect of accounting changes as of January 1, 2018 — 433 — 433 Balance, January 1, 2018 (52,251 ) (215 ) 77 (52,389 ) Other comprehensive income (loss) before reclassifications (38,485 ) (199 ) — (38,684 ) Amounts reclassified to net income — (4 ) — (4 ) Other comprehensive income (loss) (38,485 ) (203 ) — (38,688 ) Balance, September 30, 2018 $ (90,736 ) $ (418 ) $ 77 $ (91,077 ) Balance, December 31, 2018 $ (82,800 ) $ (1,092 ) $ 118 $ (83,774 ) Other comprehensive income (loss) before reclassifications (13,927 ) 2,333 (145 ) (11,739 ) Amounts reclassified to net income — (400 ) — (400 ) Other comprehensive income (loss) (13,927 ) 1,933 (145 ) (12,139 ) Balance, September 30, 2019 $ (96,727 ) $ 841 $ (27 ) $ (95,913 ) |
Marketable Investment Securit_2
Marketable Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of marketable investment securities | Our marketable investment securities portfolio consists of various debt and equity instruments summarized in the table below (amounts in thousands) : As of September 30, 2019 December 31, 2018 Marketable investment securities: Debt securities: Corporate bonds $ 540,683 $ 1,234,017 Other debt securities 154,566 374,106 Total debt securities 695,249 1,608,123 Equity securities 347 1,073 Total marketable investment securities $ 695,596 $ 1,609,196 |
Schedule of unrealized gains (losses) on marketable investment securities | A summary of our available-for-sale debt securities is presented in the table below (amounts in thousands) : Amortized Unrealized Estimated Cost Gains Losses Fair Value As of September 30, 2019 Corporate bonds $ 539,844 $ 842 $ (3 ) $ 540,683 Other debt securities 154,565 1 — 154,566 Total available-for-sale debt securities $ 694,409 $ 843 $ (3 ) $ 695,249 As of December 31, 2018 Corporate bonds $ 1,235,110 $ 230 $ (1,323 ) $ 1,234,017 Other debt securities 374,106 — — 374,106 Total available-for-sale debt securities $ 1,609,216 $ 230 $ (1,323 ) $ 1,608,123 |
Schedule of fair value measurements | Our marketable investment securities are measured at fair value on a recurring basis as summarized in the table below (amounts in thousands). As of September 30, 2019 and December 31, 2018 , we did not have investments that were categorized within Level 3 of the fair value hierarchy. As of September 30, 2019 December 31, 2018 Level 1 Level 2 Total Level 1 Level 2 Total Debt securities: Corporate bonds $ — $ 540,683 $ 540,683 $ — $ 1,234,017 $ 1,234,017 Other debt securities — 154,566 154,566 — 374,106 374,106 Total debt securities — 695,249 695,249 — 1,608,123 1,608,123 Equity securities 347 — 347 1,073 — 1,073 Total marketable investment securities $ 347 $ 695,249 $ 695,596 $ 1,073 $ 1,608,123 $ 1,609,196 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Our inventory consisted of the following (amounts in thousands): As of September 30, 2019 December 31, 2018 Raw materials $ 5,441 $ 4,856 Work-in-process 10,869 13,901 Finished goods 66,367 56,622 Total inventory $ 82,677 $ 75,379 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment from our continuing operations consisted of the following (amounts in thousands): Depreciable Life In Years As of September 30, 2019 December 31, 2018 Land — $ 13,298 $ 13,366 Buildings and improvements 1 to 40 73,387 114,153 Furniture, fixtures, equipment and other 1 to 12 736,792 725,924 Customer premises equipment 2 to 4 1,322,084 1,159,977 Satellites - owned 2 to 15 1,463,472 1,459,955 Satellites - acquired under finance leases 10 to 15 376,321 385,592 Construction in progress — 38,897 28,087 Total property and equipment 4,024,251 3,887,054 Accumulated depreciation (2,238,015 ) (1,965,143 ) Property and equipment, net $ 1,786,236 $ 1,921,911 Our operating satellite fleet consists of both owned and leased satellites detailed in the table below as of September 30, 2019 . Satellites Segment Launch Date Nominal Degree Orbital Location (Longitude) Depreciable Life In Years Owned: SPACEWAY 3 (1) Hughes August 2007 95 W 12 EchoStar XVII Hughes July 2012 107 W 15 EchoStar XIX Hughes December 2016 97.1 W 15 EchoStar IX (2)(3) ESS August 2003 121 W 12 Capital Leases: Eutelsat 65 West A Hughes March 2016 65 W 15 Telesat T19V Hughes July 2018 63 W 15 EchoStar 105/SES-11 ESS October 2017 105 W 15 (1) Depreciable life represents the remaining useful life as of June 8, 2011, the date EchoStar completed its acquisition of Hughes Communications, Inc. and its subsidiaries (the “Hughes Acquisition”). (2) See Note 16 for discussion of related party transactions with DISH Network. (3) Fully depreciated assets as of December 31, 2015. Depreciation expense associated with our property and equipment from our continuing operations consisted of the following (amounts in thousands): For the three months For the nine months 2019 2018 2019 2018 Buildings and improvements $ 1,028 $ 2,520 $ 3,502 $ 7,630 Furniture, fixtures, equipment and other 21,240 19,750 63,666 58,697 Customer premises equipment 49,074 43,584 142,541 129,907 Satellites 33,993 32,553 100,904 91,770 Total depreciation expense $ 105,335 $ 98,407 $ 310,613 $ 288,004 |
Schedule of construction in progress | Construction in progress consisted of the following (amounts in thousands): As of September 30, 2019 December 31, 2018 Progress amounts for satellite construction $ — $ 246 Satellite related equipment 25,027 13,001 Other 13,870 14,840 Construction in progress $ 38,897 $ 28,087 |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investment in unconsolidated Entities | Our investments in these unconsolidated entities consisted of the following (amounts in thousands): As of September 30, 2019 December 31, 2018 Investments in unconsolidated entities: Equity method $ 103,136 $ 110,931 Other equity investments without a readily determinable fair value 15,438 15,438 Total investments in unconsolidated entities $ 118,574 $ 126,369 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of carrying amounts and fair values of the entity's debt | The following table summarizes the carrying amounts and fair values of our long-term debt and finance lease obligations from our continuing operations (amounts in thousands): Effective Interest Rate As of September 30, 2019 December 31, 2018 Carrying Fair Carrying Fair Senior Secured Notes: 6 1/2% Senior Secured Notes due 2019 6.959% $ — $ — $ 920,836 $ 932,696 5 1/4% Senior Secured Notes due 2026 5.320% 750,000 806,295 750,000 695,865 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 973,908 900,000 934,902 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 815,273 750,000 696,353 Less: Unamortized debt issuance costs (11,862 ) — (16,757 ) — Subtotal 2,388,138 $ 2,595,476 3,304,079 $ 3,259,816 Finance lease obligations 1,200 1,705 Total debt and finance lease obligations 2,389,338 3,305,784 Less: Current portion (407 ) (919,582 ) Long-term debt and finance lease obligations, net $ 2,388,931 $ 2,386,202 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 from our continuing operations (amounts in thousands) . Capital expenditures are net of refunds and other receipts related to property and equipment and exclude capital expenditures from discontinued operations of $0.3 million and de minimis three months ended September 30, 2019 and 2018 , respectively, and $0.5 million and $0.1 million for the nine months ended September 30, 2019 and 2018 , respectively. Hughes ESS Corporate and Other Consolidated For the three months ended September 30, 2019 External revenue $ 463,735 $ 3,772 $ 5,614 $ 473,121 Intersegment revenue — 326 (326 ) — Total revenue $ 463,735 $ 4,098 $ 5,288 $ 473,121 EBITDA $ 155,940 $ 1,791 $ (7,574 ) $ 150,157 Capital expenditures $ 76,572 $ — $ — $ 76,572 For the three months ended September 30, 2018 External revenue $ 444,762 $ 6,802 $ 6,086 $ 457,650 Intersegment revenue — — — — Total revenue $ 444,762 $ 6,802 $ 6,086 $ 457,650 EBITDA $ 164,135 $ 4,687 $ (5,951 ) $ 162,871 Capital expenditures $ 110,550 $ 18 $ — $ 110,568 For the nine months ended September 30, 2019 External revenue $ 1,360,919 $ 11,058 $ 17,583 $ 1,389,560 Intersegment revenue — 815 (815 ) — Total revenue $ 1,360,919 $ 11,873 $ 16,768 $ 1,389,560 EBITDA $ 448,837 $ 5,006 $ (19,835 ) $ 434,008 Capital expenditures $ 224,483 $ — $ — $ 224,483 For the nine months ended September 30, 2018 External revenue $ 1,271,527 $ 22,562 $ 17,634 $ 1,311,723 Intersegment revenue 359 — (359 ) — Total revenue $ 1,271,886 $ 22,562 $ 17,275 $ 1,311,723 EBITDA $ 452,982 $ 15,478 $ (9,704 ) $ 458,756 Capital expenditures $ 285,352 $ (76,757 ) $ — $ 208,595 |
Schedule of reconciliation of EBITDA to reported income before income taxes | The following table reconciles total consolidated EBITDA to reported Income (loss) from continuing operations before income taxes in our Condensed Consolidated Statements of Operations (amounts in thousands) : For the three months For the nine months 2019 2018 2019 2018 EBITDA $ 150,157 $ 162,871 $ 434,008 $ 458,756 Interest income and expense, net (43,308 ) (42,370 ) (125,161 ) (130,473 ) Depreciation and amortization (115,948 ) (107,846 ) (342,086 ) (315,930 ) Net income attributable to noncontrolling interests (2,797 ) 450 (1,359 ) 1,292 Income (loss) from continuing operations before income taxes $ (11,896 ) $ 13,105 $ (34,598 ) $ 13,645 |
Supplemental Guarantor and No_2
Supplemental Guarantor and Non-Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed consolidating balance sheet | Condensed Consolidating Balance Sheet as of September 30, 2019 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 1,013,313 $ 35,837 $ 27,121 $ — $ 1,076,271 Marketable investment securities, at fair value 695,249 347 — — 695,596 Trade accounts receivable and contract assets — 132,556 68,223 — 200,779 Trade accounts receivable - DISH Network — 12,516 666 — 13,182 Inventory — 57,852 24,825 — 82,677 Advances to affiliates, net 202,074 614,875 12,769 (755,882 ) 73,836 Other current assets 79 20,635 49,343 — 70,057 Current assets of discontinued operations — 5,866 — — 5,866 Total current assets 1,910,715 880,484 182,947 (755,882 ) 2,218,264 Property and equipment, net — 1,490,723 295,513 — 1,786,236 Operating lease right-of-use assets — 86,249 24,762 — 111,011 Goodwill — 504,173 — — 504,173 Regulatory authorizations — 400,000 — — 400,000 Other intangible assets, net — 32,979 — — 32,979 Investments in unconsolidated entities — 118,574 — — 118,574 Investment in subsidiaries 2,854,009 152,078 — (3,006,087 ) — Advances to affiliates 700 570,842 16,686 (568,944 ) 19,284 Deferred tax asset 79,228 — 5,425 (79,228 ) 5,425 Other noncurrent assets, net — 207,340 16,238 — 223,578 Total assets $ 4,844,652 $ 4,443,442 $ 541,571 $ (4,410,141 ) $ 5,419,524 Liabilities and Shareholders’ Equity Trade accounts payable $ — $ 104,251 $ 15,001 $ — $ 119,252 Trade accounts payable - DISH Network — 87 — — 87 Current portion of long-term debt and finance lease obligations — — 407 — 407 Advances from affiliates, net 369,651 228,368 158,715 (755,882 ) 852 Accrued expenses and other 38,531 200,019 72,765 — 311,315 Current liabilities of discontinued operations — 3,492 — — 3,492 Total current liabilities 408,182 536,217 246,888 (755,882 ) 435,405 Long-term debt and finance lease obligations, net 2,388,138 — 793 — 2,388,931 Deferred tax liabilities, net — 420,545 109 (79,228 ) 341,426 Operating lease liabilities — 74,564 19,668 — 94,232 Advances from affiliates, net — 493,918 108,165 (568,944 ) 33,139 Other noncurrent liabilities — 65,058 3,807 — 68,865 Total HSS shareholders’ equity 2,048,332 2,853,140 152,947 (3,006,087 ) 2,048,332 Noncontrolling interests — — 9,194 — 9,194 Total liabilities and shareholders’ equity $ 4,844,652 $ 4,443,442 $ 541,571 $ (4,410,141 ) $ 5,419,524 Condensed Consolidating Balance Sheet as of December 31, 2018 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 771,718 $ 46,353 $ 29,752 $ — $ 847,823 Marketable investment securities, at fair value 1,608,123 1,073 — — 1,609,196 Trade accounts receivable and contract assets — 128,831 72,265 — 201,096 Trade accounts receivable - DISH Network — 13,240 310 — 13,550 Inventory — 58,607 16,772 — 75,379 Advances to affiliates, net 109,433 536,600 27,174 (569,657 ) 103,550 Other current assets 72 22,848 41,378 (561 ) 63,737 Current assets of discontinued operations — 3,483 — — 3,483 Total current assets 2,489,346 811,035 187,651 (570,218 ) 2,917,814 Property and equipment, net — 1,620,534 301,377 — 1,921,911 Goodwill — 504,173 — — 504,173 Regulatory authorizations — 400,043 — — 400,043 Other intangible assets, net — 43,952 — — 43,952 Investments in unconsolidated entities — 126,369 — — 126,369 Investment in subsidiaries 3,362,589 192,370 — (3,554,959 ) — Advances to affiliates 700 86,280 — (86,980 ) — Deferred tax asset 54,001 — 3,581 (54,001 ) 3,581 Other noncurrent assets, net — 220,099 12,769 — 232,868 Noncurrent assets of discontinued operations — 742,461 — — 742,461 Total assets $ 5,906,636 $ 4,747,316 $ 505,378 $ (4,266,158 ) $ 6,893,172 Liabilities and Shareholders’ Equity Trade accounts payable $ — $ 88,342 $ 16,409 $ — $ 104,751 Trade accounts payable - DISH Network — 752 — — 752 Current portion of long-term debt and finance lease obligations 918,916 — 666 — 919,582 Advances from affiliates, net 181,926 282,268 106,331 (569,657 ) 868 Accrued expenses and other 43,410 137,995 48,307 (561 ) 229,151 Current liabilities of discontinued operations — 49,055 — — 49,055 Total current liabilities 1,144,252 558,412 171,713 (570,218 ) 1,304,159 Long-term debt and finance lease obligations, net 2,385,164 — 1,038 — 2,386,202 Deferred tax liabilities, net — 408,523 834 (54,001 ) 355,356 Advances from affiliates, net — — 120,418 (86,980 ) 33,438 Other noncurrent liabilities — 69,168 2,479 — 71,647 Noncurrent liabilities of discontinued operations — 349,875 — — 349,875 Total HSS shareholders’ equity 2,377,220 3,361,338 193,621 (3,554,959 ) 2,377,220 Noncontrolling interests — — 15,275 — 15,275 Total liabilities and shareholders’ equity $ 5,906,636 $ 4,747,316 $ 505,378 $ (4,266,158 ) $ 6,893,172 |
Schedule of condensed consolidating statement of operations and comprehensive income (loss) | Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended September 30, 2019 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 9,057 $ 690 $ — $ 9,747 Services and other revenue - other — 347,625 58,879 (8,855 ) 397,649 Equipment revenue — 76,905 4,246 (15,426 ) 65,725 Total revenue — 433,587 63,815 (24,281 ) 473,121 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 110,388 40,428 (8,387 ) 142,429 Cost of sales - equipment (exclusive of depreciation and amortization) — 63,437 3,177 (15,426 ) 51,188 Selling, general and administrative expenses — 88,853 23,602 (468 ) 111,987 Research and development expenses — 5,953 183 — 6,136 Depreciation and amortization — 99,099 16,849 — 115,948 Total costs and expenses — 367,730 84,239 (24,281 ) 427,688 Operating income (loss) — 65,857 (20,424 ) — 45,433 Other income (expense): Interest income 10,968 1,466 1,106 (1,240 ) 12,300 Interest expense, net of amounts capitalized (40,433 ) (1,016 ) (15,399 ) 1,240 (55,608 ) Gains (losses) on investments, net 37 33 — — 70 Equity in earnings (losses) of unconsolidated affiliates, net — (894 ) — — (894 ) Equity in earnings (losses) of subsidiaries, net 26,054 (44,409 ) — 18,355 — Other, net — (9 ) (13,188 ) — (13,197 ) Total other income (expense), net (3,374 ) (44,829 ) (27,481 ) 18,355 (57,329 ) Income (loss) from continuing operations before income taxes (3,374 ) 21,028 (47,905 ) 18,355 (11,896 ) Income tax benefit (provision) 7,590 (13,375 ) 609 — (5,176 ) Net income (loss) from continuing operations 4,216 7,653 (47,296 ) 18,355 (17,072 ) Net income (loss) from discontinued operations (4,109 ) 18,491 — — 14,382 Net income (loss) 107 26,144 (47,296 ) 18,355 (2,690 ) Less: Net loss attributable to noncontrolling interests — — (2,797 ) — (2,797 ) Net income (loss) attributable to HSS $ 107 $ 26,144 $ (44,499 ) $ 18,355 $ 107 Comprehensive income (loss): Net income (loss) $ 107 $ 26,144 $ (47,296 ) $ 18,355 $ (2,690 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (16,247 ) — (16,247 ) Unrealized gains (losses) on available-for-sale securities and other 15 — (132 ) — (117 ) Equity in other comprehensive income (loss) of subsidiaries, net (16,379 ) (16,379 ) — 32,758 — Total other comprehensive income (loss), net of tax (16,364 ) (16,379 ) (16,379 ) 32,758 (16,364 ) Comprehensive income (loss) (16,257 ) 9,765 (63,675 ) 51,113 (19,054 ) Less: Comprehensive loss attributable to noncontrolling interests — — (2,797 ) — (2,797 ) Comprehensive income (loss) attributable to HSS $ (16,257 ) $ 9,765 $ (60,878 ) $ 51,113 $ (16,257 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Three Months Ended September 30, 2018 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 13,493 $ 491 $ — $ 13,984 Services and other revenue - other — 339,066 57,312 (9,558 ) 386,820 Equipment revenue — 57,138 7,625 (7,917 ) 56,846 Total revenue — 409,697 65,428 (17,475 ) 457,650 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 113,982 36,206 (8,855 ) 141,333 Cost of sales - equipment (exclusive of depreciation and amortization) — 47,736 6,499 (7,917 ) 46,318 Selling, general and administrative expenses — 85,200 13,156 (703 ) 97,653 Research and development expenses — 6,544 — — 6,544 Depreciation and amortization — 94,643 13,203 — 107,846 Total costs and expenses — 348,105 69,064 (17,475 ) 399,694 Operating income (loss) — 61,592 (3,636 ) — 57,956 Other income (expense): Interest income 15,019 930 670 (922 ) 15,697 Interest expense, net of amounts capitalized (57,514 ) (254 ) (1,221 ) 922 (58,067 ) Gains (losses) on investments, net — 145 — — 145 Equity in earnings of unconsolidated affiliates, net — 992 — — 992 Equity in earnings (losses) of subsidiaries, net 61,476 (6,701 ) — (54,775 ) — Other, net 1 (15 ) (3,604 ) — (3,618 ) Total other income (expense), net 18,982 (4,903 ) (4,155 ) (54,775 ) (44,851 ) Income (loss) from continuing operations before income taxes 18,982 56,689 (7,791 ) (54,775 ) 13,105 Income tax benefit (provision) 9,488 (21,904 ) 1,449 — (10,967 ) Net income (loss) from continuing operations 28,470 34,785 (6,342 ) (54,775 ) 2,138 Net income from discontinued operations — 26,782 — — 26,782 Net income (loss) 28,470 61,567 (6,342 ) (54,775 ) 28,920 Less: Net income (loss) attributable to noncontrolling interests — — 450 — 450 Net income (loss) attributable to HSS $ 28,470 $ 61,567 $ (6,792 ) $ (54,775 ) $ 28,470 Comprehensive income (loss): Net income (loss) $ 28,470 $ 61,567 $ (6,342 ) $ (54,775 ) $ 28,920 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (9,460 ) — (9,460 ) Unrealized gains (losses) on available-for-sale securities and other 27 — (144 ) — (117 ) Equity in other comprehensive income (loss) of subsidiaries, net (9,014 ) (9,014 ) — 18,028 — Amounts reclassified to net income (loss): Realized gains on available-for-sale securities (1 ) — — — (1 ) Total other comprehensive income (loss), net of tax (8,988 ) (9,014 ) (9,604 ) 18,028 (9,578 ) Comprehensive income (loss) 19,482 52,553 (15,946 ) (36,747 ) 19,342 Less: Comprehensive loss attributable to noncontrolling interests — — (140 ) — (140 ) Comprehensive income (loss) attributable to HSS $ 19,482 $ 52,553 $ (15,806 ) $ (36,747 ) $ 19,482 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Nine Months Ended September 30, 2019 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 30,213 $ 1,808 $ — $ 32,021 Services and other revenue - other — 1,032,361 176,717 (26,623 ) 1,182,455 Equipment revenue — 190,394 21,961 (37,271 ) 175,084 Total revenue — 1,252,968 200,486 (63,894 ) 1,389,560 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 330,634 120,061 (24,799 ) 425,896 Cost of sales - equipment (exclusive of depreciation and amortization) — 164,027 15,988 (37,271 ) 142,744 Selling, general and administrative expenses 88 290,556 64,739 (1,824 ) 353,559 Research and development expenses — 18,893 518 — 19,411 Depreciation and amortization — 293,519 48,567 — 342,086 Total costs and expenses 88 1,097,629 249,873 (63,894 ) 1,283,696 Operating income (loss) (88 ) 155,339 (49,387 ) — 105,864 Other income (expense): Interest income 44,693 3,403 2,198 (2,953 ) 47,341 Interest expense, net of amounts capitalized (150,234 ) (7,302 ) (17,919 ) 2,953 (172,502 ) Gains (losses) on investments, net 437 (727 ) — — (290 ) Equity in earnings (losses) of unconsolidated affiliates, net — (2,882 ) — — (2,882 ) Equity in earnings (losses) of subsidiaries, net 110,118 (77,204 ) — (32,914 ) — Other, net (100 ) (57 ) (11,972 ) — (12,129 ) Total other income (expense), net 4,914 (84,769 ) (27,693 ) (32,914 ) (140,462 ) Income (loss) from continuing operations before income taxes 4,826 70,570 (77,080 ) (32,914 ) (34,598 ) Income tax benefit (provision) 25,193 (24,656 ) (1,722 ) — (1,185 ) Net income (loss) from continuing operations 30,019 45,914 (78,802 ) (32,914 ) (35,783 ) Net income (loss) from discontinued operations (6,709 ) 64,443 — — 57,734 Net income (loss) 23,310 110,357 (78,802 ) (32,914 ) 21,951 Less: Net loss attributable to noncontrolling interests — — (1,359 ) — (1,359 ) Net income (loss) attributable to HSS $ 23,310 $ 110,357 $ (77,443 ) $ (32,914 ) $ 23,310 Comprehensive income (loss): Net income (loss) $ 23,310 $ 110,357 $ (78,802 ) $ (32,914 ) $ 21,951 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (13,927 ) — (13,927 ) Unrealized gains (losses) on available-for-sale securities and other 2,333 — (145 ) — 2,188 Equity in other comprehensive income (loss) of subsidiaries, net (14,072 ) (14,072 ) — 28,144 — Amounts reclassified to net income (loss): Realized gains on available-for-sale securities (400 ) — — — (400 ) Total other comprehensive income (loss), net of tax (12,139 ) (14,072 ) (14,072 ) 28,144 (12,139 ) Comprehensive income (loss) 11,171 96,285 (92,874 ) (4,770 ) 9,812 Less: Comprehensive loss attributable to noncontrolling interests — — (1,359 ) — (1,359 ) Comprehensive income (loss) attributable to HSS $ 11,171 $ 96,285 $ (91,515 ) $ (4,770 ) $ 11,171 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) For the Nine Months Ended September 30, 2018 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue - DISH Network $ — $ 46,613 $ 1,505 $ — $ 48,118 Services and other revenue - other — 970,251 171,767 (28,547 ) 1,113,471 Equipment revenue — 157,190 16,789 (23,845 ) 150,134 Total revenue — 1,174,054 190,061 (52,392 ) 1,311,723 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 335,007 110,441 (26,797 ) 418,651 Cost of sales - equipment (exclusive of depreciation and amortization) — 137,596 13,503 (23,845 ) 127,254 Selling, general and administrative expenses — 251,053 36,359 (1,750 ) 285,662 Research and development expenses — 20,328 — — 20,328 Depreciation and amortization — 277,889 38,041 — 315,930 Total costs and expenses — 1,021,873 198,344 (52,392 ) 1,167,825 Operating income (loss) — 152,181 (8,283 ) — 143,898 Other income (expense): Interest income 39,548 2,855 1,679 (2,720 ) 41,362 Interest expense, net of amounts capitalized (172,438 ) 983 (3,100 ) 2,720 (171,835 ) Gains (losses) on investments, net — 262 — — 262 Equity in earnings of unconsolidated affiliates, net — 3,722 — — 3,722 Equity in earnings (losses) of subsidiaries, net 191,915 (18,559 ) — (173,356 ) — Other, net 7 9,377 (13,148 ) — (3,764 ) Total other income (expense), net 59,032 (1,360 ) (14,569 ) (173,356 ) (130,253 ) Income (loss) from continuing operations before income taxes 59,032 150,821 (22,852 ) (173,356 ) 13,645 Income tax benefit (provision) 29,670 (48,681 ) 5,255 — (13,756 ) Net income (loss) from continuing operations 88,702 102,140 (17,597 ) (173,356 ) (111 ) Net income from discontinued operations — 90,105 — — 90,105 Net income (loss) 88,702 192,245 (17,597 ) (173,356 ) 89,994 Less: Net income (loss) attributable to noncontrolling interests — — 1,292 — 1,292 Net income (loss) attributable to HSS $ 88,702 $ 192,245 $ (18,889 ) $ (173,356 ) $ 88,702 Comprehensive income (loss): Net income (loss) $ 88,702 $ 192,245 $ (17,597 ) $ (173,356 ) $ 89,994 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (39,874 ) — (39,874 ) Unrealized gains (losses) on available-for-sale securities and other 186 — (385 ) — (199 ) Equity in other comprehensive income (loss) of subsidiaries, net (38,870 ) (38,870 ) — 77,740 — Amounts reclassified to net income (loss): Realized gains on available-for-sale securities (4 ) — — — (4 ) Total other comprehensive income (loss), net of tax (38,688 ) (38,870 ) (40,259 ) 77,740 (40,077 ) Comprehensive income (loss) 50,014 153,375 (57,856 ) (95,616 ) 49,917 Less: Comprehensive income attributable to noncontrolling interests — — (97 ) — (97 ) Comprehensive income (loss) attributable to HSS $ 50,014 $ 153,375 $ (57,759 ) $ (95,616 ) $ 50,014 |
Schedule of condensed consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2019 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 23,310 $ 110,357 $ (78,802 ) $ (32,914 ) $ 21,951 Adjustments to reconcile net income (loss) to net cash flows from operating activities (132,557 ) 493,418 105,514 32,914 499,289 Net cash flows from operating activities (109,247 ) 603,775 26,712 — 521,240 Cash flows from investing activities: Purchases of marketable investment securities (462,625 ) — — — (462,625 ) Sales and maturities of marketable investment securities 1,375,245 (3 ) — — 1,375,242 Expenditures for property and equipment — (162,643 ) (62,351 ) — (224,994 ) Expenditures for externally marketed software — (21,364 ) — — (21,364 ) Dividend received from unconsolidated entity — 2,284 — — 2,284 Distributions (contributions) and advances from (to) subsidiaries, net 359,145 (38,282 ) — (320,863 ) — Net cash flows from investing activities 1,271,765 (220,008 ) (62,351 ) (320,863 ) 668,543 Cash flows from financing activities: Repayment of debt and finance lease obligations — (27,203 ) (1,932 ) — (29,135 ) Repurchase and maturity of debt (920,923 ) — — — (920,923 ) Purchase of noncontrolling interest — (2,666 ) (4,647 ) — (7,313 ) Repayment of in-orbit incentive obligations — (5,269 ) — — (5,269 ) Contributions (distributions) and advances (to) from parent, net — (359,145 ) 38,282 320,863 — Proceeds from issuance of debt — — 1,172 — 1,172 Net cash flows from financing activities (920,923 ) (394,283 ) 32,875 320,863 (961,468 ) Effect of exchange rates on cash and cash equivalents — — 310 — 310 Net increase (decrease) in cash and cash equivalents, including restricted amounts 241,595 (10,516 ) (2,454 ) — 228,625 Cash and cash equivalents, including restricted amounts, beginning of period 771,718 46,353 30,548 — 848,619 Cash and cash equivalents, including restricted amounts, end of period $ 1,013,313 $ 35,837 $ 28,094 $ — $ 1,077,244 Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2018 (Amounts in thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 88,702 $ 192,245 $ (17,597 ) $ (173,356 ) $ 89,994 Adjustments to reconcile net income (loss) to net cash flows from operating activities (201,774 ) 438,805 55,249 173,356 465,636 Net cash flows from operating activities (113,072 ) 631,050 37,652 — 555,630 Cash flows from investing activities: Purchases of marketable investment securities (1,546,479 ) — — — (1,546,479 ) Sales and maturities of marketable investment securities 799,250 — — 799,250 Expenditures for property and equipment — (223,484 ) (62,739 ) — (286,223 ) Refunds and other receipts related to property and equipment — 77,524 — — 77,524 Expenditures for externally marketed software — (24,568 ) — — (24,568 ) Payment for satellite launch services — — (7,125 ) — (7,125 ) Distributions (contributions) and advances from (to) subsidiaries, net 397,631 (32,985 ) — (364,646 ) — Other — (991 ) — — (991 ) Net cash flows from investing activities (349,598 ) (204,504 ) (69,864 ) (364,646 ) (988,612 ) Cash flows from financing activities: Repayment of debt and finance lease obligations — (26,545 ) (1,219 ) — (27,764 ) Repayment of in-orbit incentive obligations — (4,048 ) — — (4,048 ) Capital contribution from EchoStar Corporation 7,125 — — — 7,125 Contributions (distributions) and advances (to) from parent, net — (397,631 ) 32,985 364,646 — Net cash flows from financing activities 7,125 (428,224 ) 31,766 364,646 (24,687 ) Effect of exchange rates on cash and cash equivalents — — (3,350 ) — (3,350 ) Net increase (decrease) in cash and cash equivalents, including restricted amounts (455,545 ) (1,678 ) (3,796 ) — (461,019 ) 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 $ 1,291,333 $ 40,695 $ 30,307 $ — $ 1,362,335 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of other significant noncash transactions | The following table presents the noncash investing and financing activities (amounts in thousands) : For the nine months ended September 30, 2019 2018 Increase (decrease) in capital expenditures included in accounts payable, net $ (1,883 ) $ 24,408 Noncash net assets exchanged for BSS Transaction (Note 5) $ 342,823 $ — |
Schedule of cost of sales and research and development costs | The table below summarizes the research and development costs incurred in connection with customers’ orders included in cost of sales and other expenses we incurred for research and development (amounts in thousands) : For the three months For the nine months ended September 30, 2019 2018 2019 2018 Cost of sales $ 6,564 $ 5,555 $ 18,275 $ 18,443 Research and development $ 6,136 $ 6,544 $ 19,411 $ 20,328 |
Schedule of supplemental cash flows from discontinued operations | Significant supplemental cash flow information and adjustments to reconcile net income to net cash flow from operating activities for discontinued operations for the nine months ended September 30, 2019 and 2018 are as below: For the nine months ended September 30, 2019 2018 Operating Activities Net income from discontinued operations $ 57,734 $ 90,105 Depreciation and amortization $ 85,926 $ 93,447 Investing Activities Expenditures for property and equipment $ (510 ) $ (104 ) Financing Activities Repayment of lease obligations $ 29,588 $ 26,545 Repayment of in-orbit incentive obligations $ 2,853 $ 1,953 |
Organization and Business Act_2
Organization and Business Activities (Details) | 1 Months Ended | 9 Months Ended | |||
May 31, 2019$ / sharesshares | Sep. 30, 2019segment$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2017 | Jan. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of business segments | segment | 2 | ||||
Related Party Transaction [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
EchoStar Technologies Business | DISH Network | Share Exchange Agreement | |||||
Related Party Transaction [Line Items] | |||||
Ownership interest acquired by related party | 100.00% | 100.00% | |||
BSS Corp. | Common Stock | |||||
Related Party Transaction [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||
DISH Network | Common Class A | |||||
Related Party Transaction [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||
Stock conversion, numerator (in shares) | shares | 0.23523769 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaids and deposits | $ 52,678 | $ 45,170 | $ 45,198 |
Operating lease right-of-use assets | 111,011 | 117,006 | |
Other noncurrent assets, net | 229,003 | 229,177 | 236,449 |
Total assets | 5,419,524 | 7,002,878 | 6,893,172 |
Accrued expenses and other | 119,930 | 75,810 | 61,366 |
Operating lease liabilities | 94,232 | 99,133 | |
Other noncurrent liabilities | 68,865 | 67,776 | 71,647 |
Total liabilities | 3,361,998 | 4,610,383 | 4,500,677 |
Total liabilities and shareholders’ equity | $ 5,419,524 | 7,002,878 | $ 6,893,172 |
Adoption of ASC 842 Increase (Decrease) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Prepaids and deposits | (28) | ||
Operating lease right-of-use assets | 117,006 | ||
Other noncurrent assets, net | (7,272) | ||
Total assets | 109,706 | ||
Accrued expenses and other | 14,444 | ||
Operating lease liabilities | 99,133 | ||
Other noncurrent liabilities | (3,871) | ||
Total liabilities | 109,706 | ||
Total liabilities and shareholders’ equity | $ 109,706 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Trade accounts receivable: | |||||
Total trade accounts receivable | $ 166,019 | $ 166,019 | $ 162,405 | ||
Contract assets | 60,012 | 60,012 | 55,295 | ||
Allowance for doubtful accounts | (25,252) | (25,252) | (16,604) | ||
Total trade accounts receivable and contract assets, net | 200,779 | 200,779 | 201,096 | ||
Trade accounts receivable - DISH Network | 13,182 | 13,182 | 13,550 | ||
Contract liabilities: | |||||
Current | 109,557 | 109,557 | 72,249 | ||
Noncurrent | 10,730 | 10,730 | 10,133 | ||
Total contract liabilities | 120,287 | 120,287 | 82,382 | ||
Revenue recognized | 67,300 | ||||
Bad debt expense | 3,200 | $ 8,600 | 23,200 | $ 16,600 | |
Sales and services | |||||
Trade accounts receivable: | |||||
Total trade accounts receivable | 163,006 | 163,006 | 154,415 | ||
Trade accounts receivable - DISH Network | 12,272 | 12,272 | 12,274 | ||
Leasing | |||||
Trade accounts receivable: | |||||
Total trade accounts receivable | 3,013 | 3,013 | 7,990 | ||
Trade accounts receivable - DISH Network | $ 910 | $ 910 | $ 1,276 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 $ in Billions | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation | $ 1.1 |
Remaining performance obligation percent recognition in next twelve months | 37.80% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 473,121 | $ 457,650 | $ 1,389,560 | $ 1,311,723 |
Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,106 | 40,222 | 77,663 | 103,458 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 388,448 | 343,673 | 1,156,699 | 994,305 |
Design, development and construction services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 42,328 | 16,624 | 93,254 | 46,676 |
Revenue from sales and services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 451,882 | 400,519 | 1,327,616 | 1,144,439 |
Lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,239 | 57,131 | 61,944 | 167,284 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 393,933 | 381,449 | 1,143,818 | 1,098,339 |
South and Central America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31,747 | 27,593 | 89,005 | 75,813 |
All other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 47,441 | 48,608 | 156,737 | 137,571 |
Corporate and Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,288 | 6,086 | 16,768 | 17,275 |
Corporate and Other | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 234 | 322 | 878 | 1,026 |
Corporate and Other | Design, development and construction services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other | Revenue from sales and services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 234 | 322 | 878 | 1,026 |
Corporate and Other | Lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,054 | 5,764 | 15,890 | 16,249 |
Corporate and Other | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 571 | 1,187 | 2,454 | 3,590 |
Corporate and Other | South and Central America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Corporate and Other | All other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,717 | 4,899 | 14,314 | 13,685 |
Hughes | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 463,735 | 444,762 | 1,360,919 | 1,271,527 |
Hughes | Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 463,735 | 444,762 | 1,360,919 | 1,271,886 |
Hughes | Operating segments | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 21,106 | 40,222 | 77,663 | 103,458 |
Hughes | Operating segments | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 385,477 | 337,585 | 1,147,868 | 975,647 |
Hughes | Operating segments | Design, development and construction services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 42,328 | 16,624 | 93,254 | 46,676 |
Hughes | Operating segments | Revenue from sales and services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 448,911 | 394,431 | 1,318,785 | 1,125,781 |
Hughes | Operating segments | Lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,824 | 50,331 | 42,134 | 146,105 |
Hughes | Operating segments | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 389,264 | 373,460 | 1,129,491 | 1,072,187 |
Hughes | Operating segments | South and Central America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 31,747 | 27,593 | 89,005 | 75,813 |
Hughes | Operating segments | All other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 42,724 | 43,709 | 142,423 | 123,886 |
ESS | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,772 | 6,802 | 11,058 | 22,562 |
ESS | Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,098 | 6,802 | 11,873 | 22,562 |
ESS | Operating segments | Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
ESS | Operating segments | Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,737 | 5,766 | 7,953 | 17,632 |
ESS | Operating segments | Design, development and construction services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
ESS | Operating segments | Revenue from sales and services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,737 | 5,766 | 7,953 | 17,632 |
ESS | Operating segments | Lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,361 | 1,036 | 3,920 | 4,930 |
ESS | Operating segments | North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,098 | 6,802 | 11,873 | 22,562 |
ESS | Operating segments | South and Central America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
ESS | Operating segments | All other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Right-of-use assets: | ||
Operating | $ 111,011 | $ 117,006 |
Finance | 328,519 | |
Total right-of-use assets | 439,530 | |
Current: | ||
Operating | 14,204 | |
Finance | 407 | |
Noncurrent: | ||
Operating | 94,232 | $ 99,133 |
Finance | 793 | |
Total lease liabilities | 109,636 | |
Finance lease assets accumulated amortization | $ 50,900 |
Leases - Lease Cost, Weighted A
Leases - Lease Cost, Weighted Average Term, Discount Rates and Cash Flows (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lease cost: | ||
Operating lease cost | $ 5,400 | $ 15,957 |
Finance lease cost: | ||
Amortization of right-of-use assets | 6,506 | 19,656 |
Interest on lease liabilities | 46 | 135 |
Short-term lease cost | 105 | 381 |
Variable lease cost | 2,690 | 6,253 |
Total lease cost | $ 14,747 | $ 42,382 |
Weighted average remaining lease term: | ||
Finance leases | 1 year 10 months 24 days | 1 year 10 months 24 days |
Operating leases | 10 years 29 days | 10 years 29 days |
Weighted average discount rate: | ||
Finance leases | 11.47% | 11.47% |
Operating leases | 6.12% | 6.12% |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 5,025 | $ 14,731 |
Operating cash flows from finance leases | 46 | 135 |
Financing cash flows from finance leases | 168 | 505 |
Right-of-use asset obtained in exchange for lease labilities | $ 1,100 | $ 2,500 |
Leases - Lease Liability Maturi
Leases - Lease Liability Maturity (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Operating Leases | |
2019 (remainder) | $ 5,195 |
2020 | 19,761 |
2021 | 17,272 |
2022 | 14,988 |
2023 | 14,069 |
After 2023 | 80,795 |
Total lease payments | 152,080 |
Less: Interest | (43,644) |
Present value of lease liabilities | 108,436 |
Finance Leases | |
2019 (remainder) | 174 |
2020 | 636 |
2021 | 493 |
2022 | 96 |
2023 | 0 |
After 2023 | 0 |
Total lease payments | 1,399 |
Less: Interest | (199) |
Present value of lease liabilities | 1,200 |
Total | |
2019 (remainder) | 5,369 |
2020 | 20,397 |
2021 | 17,765 |
2022 | 15,084 |
2023 | 14,069 |
After 2023 | 80,795 |
Total lease payments | 153,479 |
Less: Interest | (43,843) |
Total lease liabilities | $ 109,636 |
Leases - Lease Income By Lease
Leases - Lease Income By Lease Type (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Sales-type lease revenue: | ||
Revenue at lease commencement | $ 2,291 | $ 4,167 |
Interest income | 206 | 716 |
Operating lease revenue | 18,742 | 57,061 |
Total lease revenue | 21,239 | 61,944 |
Sales-type leases receivable | $ 5,600 | $ 5,600 |
Leases - Lease Income Maturity
Leases - Lease Income Maturity (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2019 (remainder) | $ 9,566 |
2020 | 36,154 |
2021 | 33,352 |
2022 | 31,912 |
2023 | 30,241 |
After 2023 | 151,284 |
Total lease payments | $ 292,509 |
Leases - Property Plant and Equ
Leases - Property Plant and Equipment Subject to Operating Lease (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||||
Cost | $ 4,024,251 | $ 4,024,251 | $ 3,887,054 | ||
Accumulated Depreciation | (2,238,015) | (2,238,015) | (1,965,143) | ||
Property and equipment, net | 1,786,236 | 1,786,236 | $ 1,921,911 | ||
Depreciation Expense | 105,335 | $ 98,407 | 310,613 | $ 288,004 | |
Customer premises equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | 1,400,325 | 1,400,325 | |||
Accumulated Depreciation | (1,026,135) | (1,026,135) | |||
Property and equipment, net | 374,190 | 374,190 | |||
Depreciation Expense | 49,314 | 149,724 | |||
Satellites | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | 104,620 | 104,620 | |||
Accumulated Depreciation | (29,616) | (29,616) | |||
Property and equipment, net | 75,004 | 75,004 | |||
Depreciation Expense | 1,802 | 5,277 | |||
Assets leased to others | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost | 1,504,945 | 1,504,945 | |||
Accumulated Depreciation | (1,055,751) | (1,055,751) | |||
Property and equipment, net | 449,194 | 449,194 | |||
Depreciation Expense | $ 51,116 | $ 155,001 |
Discontinued Operations - Opera
Discontinued Operations - Operating Results and Carrying Amounts of Assets and Liabilities of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Costs and Expenses: | |||||
Depreciation and amortization | $ 85,926 | $ 93,447 | |||
Other Income (Expense): | |||||
Net income (loss) from discontinued operations | $ 14,382 | $ 26,782 | 57,734 | 90,105 | |
Assets | |||||
Current assets of discontinued operations | 5,866 | 5,866 | $ 3,483 | ||
Noncurrent assets of discontinued operations | 0 | 0 | 742,461 | ||
Liabilities: | |||||
Current liabilities of discontinued operations | 3,492 | 3,492 | 49,055 | ||
Noncurrent liabilities of discontinued operations | 0 | 0 | 349,875 | ||
BSS Business | Discontinued Operations | |||||
Revenue: | |||||
Revenue | 59,212 | 77,205 | 213,657 | 253,623 | |
Costs and Expenses: | |||||
Cost of equipment, services and other | 7,307 | 9,714 | 28,033 | 30,274 | |
Selling, general and administrative expenses | 4,107 | 22 | 6,749 | 38 | |
Depreciation and amortization | 23,788 | 31,105 | 85,926 | 93,447 | |
Total costs and expenses | 35,202 | 40,841 | 120,708 | 123,759 | |
Operating income | 24,010 | 36,364 | 92,949 | 129,864 | |
Other Income (Expense): | |||||
Interest expense | (4,632) | (7,023) | (17,365) | (21,790) | |
Total other income (expense), net | (4,632) | (7,023) | (17,365) | (21,790) | |
Income from discontinued operations before income taxes | 19,378 | 29,341 | 75,584 | 108,074 | |
Income tax benefit (provision), net | (4,996) | (2,559) | (17,850) | (17,969) | |
Net income (loss) from discontinued operations | 14,382 | 26,782 | 57,734 | 90,105 | |
Assets | |||||
Trade accounts receivable and contract assets, net | 5,866 | 5,866 | 0 | ||
Prepaids and deposits | 0 | 0 | 3,483 | ||
Current assets of discontinued operations | 5,866 | 5,866 | 3,483 | ||
Property and equipment, net | 0 | 0 | 660,270 | ||
Regulatory authorizations, net | 0 | 0 | 65,615 | ||
Other noncurrent assets, net | 0 | 0 | 16,576 | ||
Noncurrent assets of discontinued operations | 0 | 0 | 742,461 | ||
Total assets of discontinued operations | 5,866 | 5,866 | 745,944 | ||
Liabilities: | |||||
Trade accounts payable | 506 | 506 | 0 | ||
Current portion of finance lease obligations | 0 | 0 | 39,995 | ||
Accrued interest | 0 | 0 | 1,572 | ||
Accrued expenses and other | 2,986 | 2,986 | 7,488 | ||
Current liabilities of discontinued operations | 3,492 | 3,492 | 49,055 | ||
Finance lease obligations | 0 | 0 | 187,002 | ||
Deferred tax liabilities, net | 0 | 0 | 133,380 | ||
Other noncurrent liabilities | 0 | 0 | 29,493 | ||
Noncurrent liabilities of discontinued operations | 0 | 0 | 349,875 | ||
Total liabilities of discontinued operations | 3,492 | 3,492 | $ 398,930 | ||
BSS Business | Discontinued Operations | Services and other revenue | |||||
Revenue: | |||||
Revenue | 4,915 | 6,400 | 17,715 | 19,198 | |
BSS Business | Discontinued Operations | DISH Network | Services and other revenue | |||||
Revenue: | |||||
Revenue | $ 54,297 | $ 70,805 | $ 195,942 | $ 234,425 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ 2,416,319 | $ 2,357,597 | $ 2,392,495 | $ 2,299,244 | |
Cumulative effect of accounting changes as of January 1, 2018 | $ 18,208 | ||||
Balance January 1, 2018 | 2,317,452 | ||||
Other comprehensive income (loss) | (16,364) | (9,578) | (12,139) | (40,077) | |
Ending balance | 2,057,526 | 2,378,144 | 2,057,526 | 2,378,144 | |
Accumulated Other Comprehensive Loss | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (79,549) | (82,089) | (83,774) | (52,822) | |
Cumulative effect of accounting changes as of January 1, 2018 | 433 | ||||
Balance January 1, 2018 | (52,389) | ||||
Other comprehensive income (loss) before reclassifications | (11,739) | (38,684) | |||
Amounts reclassified to net income | (400) | (4) | |||
Other comprehensive income (loss) | (12,139) | (38,688) | |||
Ending balance | (95,913) | (91,077) | (95,913) | (91,077) | |
Cumulative Foreign Currency Translation Losses | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (82,800) | (52,251) | |||
Cumulative effect of accounting changes as of January 1, 2018 | 0 | ||||
Balance January 1, 2018 | (52,251) | ||||
Other comprehensive income (loss) before reclassifications | (13,927) | (38,485) | |||
Amounts reclassified to net income | 0 | 0 | |||
Other comprehensive income (loss) | (13,927) | (38,485) | |||
Ending balance | (96,727) | (90,736) | (96,727) | (90,736) | |
Unrealized Gain (Loss) On Available-For-Sale Securities | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | (1,092) | (648) | |||
Cumulative effect of accounting changes as of January 1, 2018 | 433 | ||||
Balance January 1, 2018 | (215) | ||||
Other comprehensive income (loss) before reclassifications | 2,333 | (199) | |||
Amounts reclassified to net income | (400) | (4) | |||
Other comprehensive income (loss) | 1,933 | (203) | |||
Ending balance | 841 | (418) | 841 | (418) | |
Other | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | 118 | 77 | |||
Cumulative effect of accounting changes as of January 1, 2018 | 0 | ||||
Balance January 1, 2018 | $ 77 | ||||
Other comprehensive income (loss) before reclassifications | (145) | 0 | |||
Amounts reclassified to net income | 0 | 0 | |||
Other comprehensive income (loss) | (145) | 0 | |||
Ending balance | $ (27) | $ 77 | $ (27) | $ 77 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Capital expenditure, discontinued operations | $ 510 | $ 104 | ||
BSS Business | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Capital expenditure, discontinued operations | $ 300 | $ 0 | $ 500 | $ 100 |
Marketable Investment Securit_3
Marketable Investment Securities - Schedule of Marketable Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule of Investments [Line Items] | ||
Total debt securities | $ 695,249 | $ 1,608,123 |
Equity securities | 347 | 1,073 |
Total marketable investment securities | 695,596 | 1,609,196 |
Corporate bonds | ||
Schedule of Investments [Line Items] | ||
Total debt securities | 540,683 | 1,234,017 |
Other debt securities | ||
Schedule of Investments [Line Items] | ||
Total debt securities | $ 154,566 | $ 374,106 |
Marketable Investment Securit_4
Marketable Investment Securities - Schedule of Unrealized Gains (Losses) on Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 694,409 | $ 1,609,216 |
Unrealized Gains | 843 | 230 |
Unrealized Losses | (3) | (1,323) |
Estimated Fair Value | 695,249 | 1,608,123 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 539,844 | 1,235,110 |
Unrealized Gains | 842 | 230 |
Unrealized Losses | (3) | (1,323) |
Estimated Fair Value | 540,683 | 1,234,017 |
Other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 154,565 | 374,106 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 154,566 | $ 374,106 |
Marketable Investment Securit_5
Marketable Investment Securities - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Available-for-sale securities with contractual maturities of one year of less | $ 695,200,000 | $ 695,200,000 | ||
Available-for-sale securities with contractual maturity of greater than one year | 0 | 0 | ||
Gain (loss) on equity securities | 0 | $ 100,000 | (700,000) | $ 300,000 |
Proceeds from sale of available-for-sale securities | $ 0 | $ 50,000,000 | $ 312,000,000 | $ 50,000,000 |
Marketable Investment Securit_6
Marketable Investment Securities - Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair value of marketable securities | ||
Total debt securities | $ 695,249 | $ 1,608,123 |
Equity securities | 347 | 1,073 |
Corporate bonds | ||
Fair value of marketable securities | ||
Total debt securities | 540,683 | 1,234,017 |
Other debt securities | ||
Fair value of marketable securities | ||
Total debt securities | 154,566 | 374,106 |
Fair value measurements on recurring basis | ||
Fair value of marketable securities | ||
Total debt securities | 695,249 | 1,608,123 |
Equity securities | 347 | 1,073 |
Total marketable investment securities | 695,596 | 1,609,196 |
Fair value measurements on recurring basis | Corporate bonds | ||
Fair value of marketable securities | ||
Total debt securities | 540,683 | 1,234,017 |
Fair value measurements on recurring basis | Other debt securities | ||
Fair value of marketable securities | ||
Total debt securities | 154,566 | 374,106 |
Fair value measurements on recurring basis | Level 1 | ||
Fair value of marketable securities | ||
Total debt securities | 0 | 0 |
Equity securities | 347 | 1,073 |
Total marketable investment securities | 347 | 1,073 |
Fair value measurements on recurring basis | Level 1 | Corporate bonds | ||
Fair value of marketable securities | ||
Total debt securities | 0 | 0 |
Fair value measurements on recurring basis | Level 1 | Other debt securities | ||
Fair value of marketable securities | ||
Total debt securities | 0 | 0 |
Fair value measurements on recurring basis | Level 2 | ||
Fair value of marketable securities | ||
Total debt securities | 695,249 | 1,608,123 |
Equity securities | 0 | 0 |
Total marketable investment securities | 695,249 | 1,608,123 |
Fair value measurements on recurring basis | Level 2 | Corporate bonds | ||
Fair value of marketable securities | ||
Total debt securities | 540,683 | 1,234,017 |
Fair value measurements on recurring basis | Level 2 | Other debt securities | ||
Fair value of marketable securities | ||
Total debt securities | $ 154,566 | $ 374,106 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,441 | $ 4,856 |
Work-in-process | 10,869 | 13,901 |
Finished goods | 66,367 | 56,622 |
Total inventory | $ 82,677 | $ 75,379 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 4,024,251 | $ 3,887,054 |
Accumulated depreciation | (2,238,015) | (1,965,143) |
Property and equipment, net | 1,786,236 | 1,921,911 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 13,298 | 13,366 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 73,387 | 114,153 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life In Years | 1 year | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life In Years | 40 years | |
Furniture, fixtures, equipment and other | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 736,792 | 725,924 |
Furniture, fixtures, equipment and other | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life In Years | 1 year | |
Furniture, fixtures, equipment and other | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life In Years | 12 years | |
Customer premises equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,322,084 | 1,159,977 |
Customer premises equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life In Years | 2 years | |
Customer premises equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life In Years | 4 years | |
Satellites - owned | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 1,463,472 | 1,459,955 |
Satellites - owned | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life In Years | 2 years | |
Satellites - owned | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life In Years | 15 years | |
Satellites - acquired under finance leases | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 376,321 | |
Satellites - acquired under finance leases | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life In Years | 10 years | |
Satellites - acquired under finance leases | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Depreciable Life In Years | 15 years | |
Satellites - acquired under finance leases | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 385,592 | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 38,897 | $ 28,087 |
Property and Equipment - Constr
Property and Equipment - Construction in Progress (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $ 38,897 | $ 28,087 |
Progress amounts for satellite construction | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 0 | 246 |
Satellite related equipment | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | 25,027 | 13,001 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Construction in progress | $ 13,870 | $ 14,840 |
Property and Equipment - Deprec
Property and Equipment - Depreciation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Total depreciation expense | $ 105,335 | $ 98,407 | $ 310,613 | $ 288,004 |
Buildings and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation expense | 1,028 | 2,520 | 3,502 | 7,630 |
Furniture, fixtures, equipment and other | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation expense | 21,240 | 19,750 | 63,666 | 58,697 |
Customer premises equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation expense | 49,074 | 43,584 | 142,541 | 129,907 |
Satellites | ||||
Property, Plant and Equipment [Line Items] | ||||
Total depreciation expense | $ 33,993 | $ 32,553 | $ 100,904 | $ 91,770 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)satellite | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)satellitemi | Sep. 30, 2018USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Interest costs capitalized | $ | $ 300 | $ 1,400 | $ 600 | $ 5,800 |
Finance lease amortization expense | $ | 6,506 | 19,656 | ||
Satellites | ||||
Property, Plant and Equipment [Line Items] | ||||
Finance lease amortization expense | $ | $ 6,400 | $ 19,300 | ||
Capital leases amortization expense | $ | $ 5,500 | $ 13,800 | ||
Number of satellites in geostationary orbit, utilized by reporting entity | 7 | |||
Miles above the equator | mi | 22,300 | |||
Owned | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of satellites in geostationary orbit, utilized by reporting entity | 4 | |||
Owned | BSS Transaction | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of satellites in geostationary orbit, utilized by reporting entity | 6 | |||
Capital Leases | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of satellites utilized under capital lease | 3 | 3 | ||
Capital Leases | BSS Transaction | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of satellites utilized under capital lease | 2 | 2 |
Property and Equipment - Operat
Property and Equipment - Operating Satellite Fleet (Details) | 9 Months Ended |
Sep. 30, 2019 | |
SPACEWAY | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life In Years | 12 years |
EchoStar XVII | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life In Years | 15 years |
EchoStar XIX | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life In Years | 15 years |
EchoStar IX | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life In Years | 12 years |
Eutelsat 65 West A | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life In Years | 15 years |
Telesat T19V | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life In Years | 15 years |
EchoStar 105/SES-11 | |
Property, Plant and Equipment [Line Items] | |
Depreciable Life In Years | 15 years |
Goodwill, Regulatory Authoriz_2
Goodwill, Regulatory Authorizations and Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Regulatory authorizations | $ 400,000 | $ 400,043 |
Intangible asset accumulated amortization | $ 318,400 | $ 307,400 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments in unconsolidated entities: | ||
Equity method | $ 103,136 | $ 110,931 |
Other equity investments without a readily determinable fair value | 15,438 | 15,438 |
Total investments in unconsolidated entities | $ 118,574 | $ 126,369 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt and Capital Lease Obligations | |||
Less: Unamortized debt issuance costs | $ (11,862,000) | $ (11,862,000) | $ (16,757,000) |
Subtotal | 2,388,138,000 | 2,388,138,000 | 3,304,079,000 |
Finance lease obligations | 1,200,000 | 1,200,000 | |
Finance lease obligations | 1,705,000 | ||
Total debt and finance lease obligations | 2,389,338,000 | 2,389,338,000 | 3,305,784,000 |
Less: Current portion | (407,000) | (407,000) | (919,582,000) |
Long-term debt and finance lease obligations, net | 2,388,931,000 | 2,388,931,000 | 2,386,202,000 |
Fair Value | $ 2,595,476,000 | $ 2,595,476,000 | 3,259,816,000 |
6 1/2% Senior Secured Notes due 2019 | |||
Debt and Capital Lease Obligations | |||
Effective Interest Rate | 6.959% | 6.959% | |
Carrying Amount | $ 0 | $ 0 | 920,836,000 |
Fair Value | 0 | 0 | $ 932,696,000 |
Debt repurchased | $ 0 | $ 11,500,000 | |
Interest rate | 6.50% | ||
5 1/4% Senior Secured Notes due 2026 | |||
Debt and Capital Lease Obligations | |||
Effective Interest Rate | 5.32% | 5.32% | |
Carrying Amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 |
Fair Value | $ 806,295,000 | $ 806,295,000 | 695,865,000 |
Interest rate | 5.25% | 5.25% | |
7 5/8% Senior Unsecured Notes due 2021 | |||
Debt and Capital Lease Obligations | |||
Effective Interest Rate | 8.062% | 8.062% | |
Carrying Amount | $ 900,000,000 | $ 900,000,000 | 900,000,000 |
Fair Value | $ 973,908,000 | $ 973,908,000 | 934,902,000 |
Interest rate | 7.625% | 7.625% | |
6 5/8% Senior Unsecured Notes due 2026 | |||
Debt and Capital Lease Obligations | |||
Effective Interest Rate | 6.688% | 6.688% | |
Carrying Amount | $ 750,000,000 | $ 750,000,000 | 750,000,000 |
Fair Value | $ 815,273,000 | $ 815,273,000 | $ 696,353,000 |
Interest rate | 6.625% | 6.625% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 5,176 | $ 10,967 | $ 1,185 | $ 13,756 |
Effective income tax rate | (43.50%) | 83.70% | (3.40%) | 100.80% |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 30, 2018USD ($) | Feb. 13, 2018claim | Aug. 07, 2017USD ($) | Feb. 14, 2017patent | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Realtime Data LLC | |||||||
Other Commitments [Line Items] | |||||||
Patents allegedly infringed | patent | 4 | ||||||
Realtime Data LLC | Patent 728 | |||||||
Other Commitments [Line Items] | |||||||
Pending claims, validity challenged | claim | 1 | ||||||
License Fee Dispute | |||||||
Other Commitments [Line Items] | |||||||
Additional license fees | $ 4.2 | ||||||
Interest, penalties and interest on penalties | $ 17.8 | ||||||
Hughes Network Systems | Elbit | |||||||
Other Commitments [Line Items] | |||||||
Damages awarded | $ 21.1 | ||||||
Attorney's fees sought | $ 13.9 | ||||||
Loss contingency accrual | $ 33.7 | $ 3.2 | |||||
Hughes Network Systems | Elbit | Jury Verdict | |||||||
Other Commitments [Line Items] | |||||||
Estimated litigation liability | 21.1 | ||||||
Hughes Network Systems | Elbit | Pre and Post Judgment Interest Costs | |||||||
Other Commitments [Line Items] | |||||||
Estimated litigation liability | 12.6 | ||||||
Hughes Network Systems | License Fee Dispute | |||||||
Other Commitments [Line Items] | |||||||
Loss contingency accrual | 22 | 1.3 | |||||
Satellite Related Obligation | |||||||
Other Commitments [Line Items] | |||||||
Satellite-related obligations | $ 263.7 | $ 298.9 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Segment Reporting [Abstract] | ||||
Number of business segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Capital expenditure, discontinued operations | $ 510 | $ 104 | ||
Revenue | $ 473,121 | $ 457,650 | 1,389,560 | 1,311,723 |
EBITDA | 150,157 | 162,871 | 434,008 | 458,756 |
Capital expenditures | 76,572 | 110,568 | 224,483 | 208,595 |
Interest income and expense, net | (43,308) | (42,370) | (125,161) | (130,473) |
Depreciation and amortization | (115,948) | (107,846) | (342,086) | (315,930) |
Net income attributable to noncontrolling interests | (2,797) | 450 | (1,359) | 1,292 |
Income (loss) from continuing operations before income taxes | (11,896) | 13,105 | (34,598) | 13,645 |
Corporate And Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 5,614 | 6,086 | 17,583 | 17,634 |
Intersegment revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (326) | 0 | (815) | (359) |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 5,288 | 6,086 | 16,768 | 17,275 |
EBITDA | (7,574) | (5,951) | (19,835) | (9,704) |
Capital expenditures | 0 | 0 | 0 | 0 |
Hughes | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 463,735 | 444,762 | 1,360,919 | 1,271,527 |
Hughes | Intersegment revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | (359) |
Hughes | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 463,735 | 444,762 | 1,360,919 | 1,271,886 |
EBITDA | 155,940 | 164,135 | 448,837 | 452,982 |
Capital expenditures | 76,572 | 110,550 | 224,483 | 285,352 |
ESS | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,772 | 6,802 | 11,058 | 22,562 |
ESS | Intersegment revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (326) | 0 | (815) | 0 |
ESS | Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4,098 | 6,802 | 11,873 | 22,562 |
EBITDA | 1,791 | 4,687 | 5,006 | 15,478 |
Capital expenditures | 0 | 18 | 0 | (76,757) |
BSS Business | Discontinued Operations | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditure, discontinued operations | $ 300 | $ 0 | $ 500 | $ 100 |
Related Party Transactions - Ag
Related Party Transactions - Agreements (Details) $ in Millions | Feb. 01, 2017USD ($) | Feb. 28, 2022 | Sep. 30, 2019USD ($)transponderrenewal_option | May 31, 2019shares | Feb. 28, 2019 | Aug. 31, 2017 | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Feb. 28, 2017 | Aug. 31, 2015 | Mar. 31, 2014USD ($)satellite | Oct. 31, 2012 | Sep. 30, 2019USD ($)transponder | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)transponder | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017 | Jan. 31, 2017 | May 31, 2012 |
Related Party Transaction [Line Items] | ||||||||||||||||||||
Sales commissions and fees | $ 3.7 | $ 6.4 | $ 13.2 | $ 26.3 | ||||||||||||||||
Hughes Equipment And Service Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 365 days | |||||||||||||||||||
DISH Network | Common Class A | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Stock conversion, numerator (in shares) | shares | 0.23523769 | |||||||||||||||||||
Ciel | Satellite Capacity Lease Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Lessee, operating lease, term of contract | 10 years | |||||||||||||||||||
EchoStar | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Required minimum notice for termination of individual service | 30 days | |||||||||||||||||||
Expense recorded for services provided | 1.2 | 4.5 | $ 6.1 | 14.1 | ||||||||||||||||
EchoStar | Construction Management Services | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Expense recorded for services provided | 0.3 | 0.3 | 1.1 | 0.8 | ||||||||||||||||
TerreStar Solutions, Inc. | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Revenue from related parties | 2 | 2.7 | 10.2 | 3 | ||||||||||||||||
Receivables from related parties | $ 2.3 | 2.3 | $ 2.3 | $ 2.3 | ||||||||||||||||
EchoStar Mobile Limited | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Interest rate on converted receivables loan | 5.00% | |||||||||||||||||||
Revenue from related parties | $ 4.9 | $ 4.9 | $ 14.8 | $ 13.7 | ||||||||||||||||
DISH Network | Satellite and Tracking Stock Transaction | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Proceeds from issuance of Hughes retail preferred tracking stock | $ 11.4 | |||||||||||||||||||
DISH Network | Satellite and Tracking Stock Transaction | Hughes Retail Preferred Tracking Stock | Hughes Retail Group | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Percentage of economic interest in the Hughes Retail Group | 80.00% | |||||||||||||||||||
DISH Network | TerreStar Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 21 days | |||||||||||||||||||
Related party transactions, required minimum notice period for termination of agreement | 90 days | |||||||||||||||||||
DISH Network | Hughes Broadband Distribution Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||
Related party transactions, required minimum notice period for termination of agreement | 180 days | |||||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||||
DISH Network | DBSD North America Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 21 days | 120 days | ||||||||||||||||||
DISH Network | Hughes Equipment And Service Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 180 days | |||||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||||
DISH Network | Amended and Restated Professional Services Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Required minimum notice for termination of individual service | 30 days | |||||||||||||||||||
Related party transactions, required minimum notice period for termination of agreement | 60 days | |||||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||||
DISH Network | Collocation and Antenna Space Agreements | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Term of renewal option | 3 years | 4 years | ||||||||||||||||||
Required minimum notice period for termination of agreement by the reporting entity | 180 days | |||||||||||||||||||
DISH Network | Collocation and Antenna Space Agreements | Minimum | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Renewal notice required by reporting entity | 90 days | |||||||||||||||||||
DISH Network | Collocation and Antenna Space Agreements | Maximum | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Renewal notice required by reporting entity | 120 days | |||||||||||||||||||
DISH Network | Antenna Space And Power Agreements | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||
Term of renewal option | 3 years | |||||||||||||||||||
Number of renewal options | renewal_option | 4 | |||||||||||||||||||
DISH Network | Antenna Space And Power Agreements | Minimum | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Renewal notice required by reporting entity | 90 days | |||||||||||||||||||
DISH Network | Antenna Space And Power Agreements | Maximum | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Renewal notice required by reporting entity | 120 days | |||||||||||||||||||
DISH Network | Hughes Broadband Master Services Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||||
Required minimum notice period for termination of agreement by the reporting entity | 90 days | |||||||||||||||||||
DISH Network | TT&C Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Term of renewal option | 1 year | |||||||||||||||||||
Renewal notice required by reporting entity | 90 days | |||||||||||||||||||
Required minimum notice period for termination of agreement by the reporting entity | 12 months | |||||||||||||||||||
DISH Network | EchoStar And Hughes Satellite Systems Corporation | Satellite and Tracking Stock Transaction | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of satellites transferred | satellite | 5 | |||||||||||||||||||
Related-party advances | Minimum | One-year LIBOR | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Annual rates | 1.00% | |||||||||||||||||||
Related-party advances | Maximum | One-year LIBOR | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Annual rates | 3.00% | |||||||||||||||||||
Related Party Transactions, Lessee, Operating Lease, Real Estate | DISH Network | American Fork Occupancy License Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Lessee, operating lease, term of contract | 5 years | |||||||||||||||||||
EchoStar XIX | EchoStar | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Contribution of noncash net assets pursuant to share exchange agreement | $ 514.4 | |||||||||||||||||||
Deferred tax liabilities, deferred expense | 165.1 | |||||||||||||||||||
EchoStar XXIII | Other noncurrent assets | EOC | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Transfer of launch contracts from (to) EchoStar | $ 61.8 | |||||||||||||||||||
EchoStar XXI | Other noncurrent assets | EOC | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Transfer of launch contracts from (to) EchoStar | $ 83.3 | |||||||||||||||||||
QuetzSat-1 | EchoStar | DBS Transponder Lease | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of DBS transponders currently receiving services | transponder | 8 | 8 | 8 | |||||||||||||||||
Additional Paid-In Capital | EchoStar XIX | EchoStar | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Stock-based compensation | $ 349.3 | |||||||||||||||||||
EchoStar Technologies Business | DISH Network | Share Exchange Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Ownership interest acquired by related party | 100.00% | 100.00% | ||||||||||||||||||
Scenario, Forecast | DISH Network | DBSD North America Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 180 days | |||||||||||||||||||
Automatic renewal period | 5 years |
Related Party Transactions - Ot
Related Party Transactions - Other Agreements (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($)transponder | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)transponder | Sep. 30, 2018USD ($) | Sep. 30, 2009transponder | |
Related Party Transaction [Line Items] | ||||||
Aggregate costs payable to related parties | $ (665,000) | $ (3,313,000) | ||||
Hughes Systique | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership interest in related party (as a percent) | 43.30% | |||||
Ownership interest percentage by related party | 25.40% | |||||
Deluxe | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 50.00% | 50.00% | ||||
Revenue from related parties | $ 900,000 | $ 1,100,000 | $ 2,600,000 | 3,300,000 | ||
Receivables from related parties | $ 800,000 | 600,000 | 600,000 | |||
Broadband Connectivity Solutions | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership interest percentage by related party | 20.00% | |||||
Revenue from related parties | 1,700,000 | 6,200,000 | ||||
Receivables from related parties | $ 3,400,000 | 2,400,000 | 2,400,000 | |||
Payments to acquire equity method investments | 100,000,000 | |||||
AsiaSat | ||||||
Related Party Transaction [Line Items] | ||||||
Expense recorded for services provided | 0 | 0 | 0 | 0 | ||
Global IP Revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from related parties | 0 | 5,900,000 | 0 | 6,500,000 | ||
Receivables from related parties | 7,500,000 | 7,500,000 | 7,500,000 | |||
TerreStar Solutions, Inc. | ||||||
Related Party Transaction [Line Items] | ||||||
Revenue from related parties | 2,000,000 | 2,700,000 | 10,200,000 | 3,000,000 | ||
Receivables from related parties | $ 2,300,000 | $ 2,300,000 | $ 2,300,000 | |||
Investment nonvoting interest ownership percentage(at least) | 15.00% | 15.00% | ||||
Maxar Technologies Inc. | ||||||
Related Party Transaction [Line Items] | ||||||
Aggregate costs payable to related parties | $ 12,100,000 | $ 78,900,000 | ||||
EchoStar | ||||||
Related Party Transaction [Line Items] | ||||||
Expense recorded for services provided | $ 1,200,000 | $ 4,500,000 | $ 6,100,000 | $ 14,100,000 | ||
DBS Transponder Lease | QuetzSat-1 | EchoStar | ||||||
Related Party Transaction [Line Items] | ||||||
Number of DBS transponders currently receiving services | transponder | 8 | 8 | ||||
Satellite Capacity Lease Agreement | Nimiq5 | DISH Network | ||||||
Related Party Transaction [Line Items] | ||||||
Number of DBS transponders available | transponder | 32 |
Supplemental Guarantor and No_3
Supplemental Guarantor and Non-Guarantor Financial Information - Narrative (Details) | Sep. 30, 2019 |
5 1/4% Senior Secured Notes due 2026 | |
Guarantor Obligations [Line Items] | |
Interest rate | 5.25% |
7 5/8% Senior Unsecured Notes due 2021 | |
Guarantor Obligations [Line Items] | |
Interest rate | 7.625% |
6 5/8% Senior Unsecured Notes due 2026 | |
Guarantor Obligations [Line Items] | |
Interest rate | 6.625% |
Supplemental Guarantor and No_4
Supplemental Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Cash and cash equivalents | $ 1,076,271 | $ 847,823 | |
Marketable investment securities, at fair value | 695,596 | 1,609,196 | |
Trade accounts receivable and contract assets | 200,779 | 201,096 | |
Trade accounts receivable - DISH Network | 13,182 | 13,550 | |
Inventory | 82,677 | 75,379 | |
Advances to affiliates, net | 73,836 | 103,550 | |
Other current assets | 70,057 | 63,737 | |
Current assets of discontinued operations | 5,866 | 3,483 | |
Total current assets | 2,218,264 | 2,917,814 | |
Property and equipment, net | 1,786,236 | 1,921,911 | |
Operating lease right-of-use assets | 111,011 | $ 117,006 | |
Goodwill | 504,173 | 504,173 | |
Regulatory authorizations | 400,000 | 400,043 | |
Other intangible assets, net | 32,979 | 43,952 | |
Investments in unconsolidated entities | 118,574 | 126,369 | |
Investment in subsidiaries | 0 | 0 | |
Advances to affiliates | 19,284 | 0 | |
Deferred tax asset | 5,425 | 3,581 | |
Other noncurrent assets, net | 223,578 | 232,868 | |
Noncurrent assets of discontinued operations | 0 | 742,461 | |
Total assets | 5,419,524 | 7,002,878 | 6,893,172 |
Liabilities and Shareholders’ Equity | |||
Trade accounts payable | 119,252 | 104,751 | |
Trade accounts payable - DISH Network | 87 | 752 | |
Current portion of long-term debt and finance lease obligations | 407 | 919,582 | |
Advances from affiliates, net | 852 | 868 | |
Accrued expenses and other | 311,315 | 229,151 | |
Current liabilities of discontinued operations | 3,492 | 49,055 | |
Total current liabilities | 435,405 | 1,304,159 | |
Long-term debt and finance lease obligations, net | 2,388,931 | 2,386,202 | |
Deferred tax liabilities, net | 341,426 | 355,356 | |
Operating lease liabilities | 94,232 | 99,133 | |
Advances from affiliates, net | 33,139 | 33,438 | |
Other noncurrent liabilities | 68,865 | 67,776 | 71,647 |
Noncurrent liabilities of discontinued operations | 0 | 349,875 | |
Total HSS shareholders’ equity | 2,048,332 | 2,377,220 | |
Noncontrolling interests | 9,194 | 15,275 | |
Total liabilities and shareholders’ equity | 5,419,524 | $ 7,002,878 | 6,893,172 |
Reportable Legal Entities | HSS | |||
Assets | |||
Cash and cash equivalents | 1,013,313 | 771,718 | |
Marketable investment securities, at fair value | 695,249 | 1,608,123 | |
Trade accounts receivable and contract assets | 0 | 0 | |
Trade accounts receivable - DISH Network | 0 | 0 | |
Inventory | 0 | 0 | |
Advances to affiliates, net | 202,074 | 109,433 | |
Other current assets | 79 | 72 | |
Current assets of discontinued operations | 0 | 0 | |
Total current assets | 1,910,715 | 2,489,346 | |
Property and equipment, net | 0 | 0 | |
Operating lease right-of-use assets | 0 | ||
Goodwill | 0 | 0 | |
Regulatory authorizations | 0 | 0 | |
Other intangible assets, net | 0 | 0 | |
Investments in unconsolidated entities | 0 | 0 | |
Investment in subsidiaries | 2,854,009 | 3,362,589 | |
Advances to affiliates | 700 | 700 | |
Deferred tax asset | 79,228 | 54,001 | |
Other noncurrent assets, net | 0 | 0 | |
Noncurrent assets of discontinued operations | 0 | ||
Total assets | 4,844,652 | 5,906,636 | |
Liabilities and Shareholders’ Equity | |||
Trade accounts payable | 0 | 0 | |
Trade accounts payable - DISH Network | 0 | 0 | |
Current portion of long-term debt and finance lease obligations | 0 | 918,916 | |
Advances from affiliates, net | 369,651 | 181,926 | |
Accrued expenses and other | 38,531 | 43,410 | |
Current liabilities of discontinued operations | 0 | 0 | |
Total current liabilities | 408,182 | 1,144,252 | |
Long-term debt and finance lease obligations, net | 2,388,138 | 2,385,164 | |
Deferred tax liabilities, net | 0 | 0 | |
Operating lease liabilities | 0 | ||
Advances from affiliates, net | 0 | 0 | |
Other noncurrent liabilities | 0 | 0 | |
Noncurrent liabilities of discontinued operations | 0 | ||
Total HSS shareholders’ equity | 2,048,332 | 2,377,220 | |
Noncontrolling interests | 0 | 0 | |
Total liabilities and shareholders’ equity | 4,844,652 | 5,906,636 | |
Reportable Legal Entities | Guarantor Subsidiaries | |||
Assets | |||
Cash and cash equivalents | 35,837 | 46,353 | |
Marketable investment securities, at fair value | 347 | 1,073 | |
Trade accounts receivable and contract assets | 132,556 | 128,831 | |
Trade accounts receivable - DISH Network | 12,516 | 13,240 | |
Inventory | 57,852 | 58,607 | |
Advances to affiliates, net | 614,875 | 536,600 | |
Other current assets | 20,635 | 22,848 | |
Current assets of discontinued operations | 5,866 | 3,483 | |
Total current assets | 880,484 | 811,035 | |
Property and equipment, net | 1,490,723 | 1,620,534 | |
Operating lease right-of-use assets | 86,249 | ||
Goodwill | 504,173 | 504,173 | |
Regulatory authorizations | 400,000 | 400,043 | |
Other intangible assets, net | 32,979 | 43,952 | |
Investments in unconsolidated entities | 118,574 | 126,369 | |
Investment in subsidiaries | 152,078 | 192,370 | |
Advances to affiliates | 570,842 | 86,280 | |
Deferred tax asset | 0 | 0 | |
Other noncurrent assets, net | 207,340 | 220,099 | |
Noncurrent assets of discontinued operations | 742,461 | ||
Total assets | 4,443,442 | 4,747,316 | |
Liabilities and Shareholders’ Equity | |||
Trade accounts payable | 104,251 | 88,342 | |
Trade accounts payable - DISH Network | 87 | 752 | |
Current portion of long-term debt and finance lease obligations | 0 | 0 | |
Advances from affiliates, net | 228,368 | 282,268 | |
Accrued expenses and other | 200,019 | 137,995 | |
Current liabilities of discontinued operations | 3,492 | 49,055 | |
Total current liabilities | 536,217 | 558,412 | |
Long-term debt and finance lease obligations, net | 0 | 0 | |
Deferred tax liabilities, net | 420,545 | 408,523 | |
Operating lease liabilities | 74,564 | ||
Advances from affiliates, net | 493,918 | 0 | |
Other noncurrent liabilities | 65,058 | 69,168 | |
Noncurrent liabilities of discontinued operations | 349,875 | ||
Total HSS shareholders’ equity | 2,853,140 | 3,361,338 | |
Noncontrolling interests | 0 | 0 | |
Total liabilities and shareholders’ equity | 4,443,442 | 4,747,316 | |
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||
Assets | |||
Cash and cash equivalents | 27,121 | 29,752 | |
Marketable investment securities, at fair value | 0 | 0 | |
Trade accounts receivable and contract assets | 68,223 | 72,265 | |
Trade accounts receivable - DISH Network | 666 | 310 | |
Inventory | 24,825 | 16,772 | |
Advances to affiliates, net | 12,769 | 27,174 | |
Other current assets | 49,343 | 41,378 | |
Current assets of discontinued operations | 0 | 0 | |
Total current assets | 182,947 | 187,651 | |
Property and equipment, net | 295,513 | 301,377 | |
Operating lease right-of-use assets | 24,762 | ||
Goodwill | 0 | 0 | |
Regulatory authorizations | 0 | 0 | |
Other intangible assets, net | 0 | 0 | |
Investments in unconsolidated entities | 0 | 0 | |
Investment in subsidiaries | 0 | 0 | |
Advances to affiliates | 16,686 | 0 | |
Deferred tax asset | 5,425 | 3,581 | |
Other noncurrent assets, net | 16,238 | 12,769 | |
Noncurrent assets of discontinued operations | 0 | ||
Total assets | 541,571 | 505,378 | |
Liabilities and Shareholders’ Equity | |||
Trade accounts payable | 15,001 | 16,409 | |
Trade accounts payable - DISH Network | 0 | 0 | |
Current portion of long-term debt and finance lease obligations | 407 | 666 | |
Advances from affiliates, net | 158,715 | 106,331 | |
Accrued expenses and other | 72,765 | 48,307 | |
Current liabilities of discontinued operations | 0 | 0 | |
Total current liabilities | 246,888 | 171,713 | |
Long-term debt and finance lease obligations, net | 793 | 1,038 | |
Deferred tax liabilities, net | 109 | 834 | |
Operating lease liabilities | 19,668 | ||
Advances from affiliates, net | 108,165 | 120,418 | |
Other noncurrent liabilities | 3,807 | 2,479 | |
Noncurrent liabilities of discontinued operations | 0 | ||
Total HSS shareholders’ equity | 152,947 | 193,621 | |
Noncontrolling interests | 9,194 | 15,275 | |
Total liabilities and shareholders’ equity | 541,571 | 505,378 | |
Eliminations | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Marketable investment securities, at fair value | 0 | 0 | |
Trade accounts receivable and contract assets | 0 | 0 | |
Trade accounts receivable - DISH Network | 0 | 0 | |
Inventory | 0 | 0 | |
Advances to affiliates, net | (755,882) | (569,657) | |
Other current assets | 0 | (561) | |
Current assets of discontinued operations | 0 | 0 | |
Total current assets | (755,882) | (570,218) | |
Property and equipment, net | 0 | 0 | |
Operating lease right-of-use assets | 0 | ||
Goodwill | 0 | 0 | |
Regulatory authorizations | 0 | 0 | |
Other intangible assets, net | 0 | 0 | |
Investments in unconsolidated entities | 0 | 0 | |
Investment in subsidiaries | (3,006,087) | (3,554,959) | |
Advances to affiliates | (568,944) | (86,980) | |
Deferred tax asset | (79,228) | (54,001) | |
Other noncurrent assets, net | 0 | 0 | |
Noncurrent assets of discontinued operations | 0 | ||
Total assets | (4,410,141) | (4,266,158) | |
Liabilities and Shareholders’ Equity | |||
Trade accounts payable | 0 | 0 | |
Trade accounts payable - DISH Network | 0 | 0 | |
Current portion of long-term debt and finance lease obligations | 0 | 0 | |
Advances from affiliates, net | (755,882) | (569,657) | |
Accrued expenses and other | 0 | (561) | |
Current liabilities of discontinued operations | 0 | 0 | |
Total current liabilities | (755,882) | (570,218) | |
Long-term debt and finance lease obligations, net | 0 | 0 | |
Deferred tax liabilities, net | (79,228) | (54,001) | |
Operating lease liabilities | 0 | ||
Advances from affiliates, net | (568,944) | (86,980) | |
Other noncurrent liabilities | 0 | 0 | |
Noncurrent liabilities of discontinued operations | 0 | ||
Total HSS shareholders’ equity | (3,006,087) | (3,554,959) | |
Noncontrolling interests | 0 | 0 | |
Total liabilities and shareholders’ equity | $ (4,410,141) | $ (4,266,158) |
Supplemental Guarantor and No_5
Supplemental Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue: | ||||
Revenue | $ 473,121 | $ 457,650 | $ 1,389,560 | $ 1,311,723 |
Costs and expenses: | ||||
Selling, general and administrative expenses | 111,987 | 97,653 | 353,559 | 285,662 |
Research and development expenses | 6,136 | 6,544 | 19,411 | 20,328 |
Depreciation and amortization | 115,948 | 107,846 | 342,086 | 315,930 |
Total costs and expenses | 427,688 | 399,694 | 1,283,696 | 1,167,825 |
Operating income (loss) | 45,433 | 57,956 | 105,864 | 143,898 |
Other income (expense): | ||||
Interest income | 12,300 | 15,697 | 47,341 | 41,362 |
Interest expense, net of amounts capitalized | (55,608) | (58,067) | (172,502) | (171,835) |
Gains (losses) on investments, net | 70 | 145 | (290) | 262 |
Equity in earnings (losses) of unconsolidated affiliates, net | (894) | 992 | (2,882) | 3,722 |
Equity in earnings (losses) of subsidiaries, net | 0 | 0 | 0 | 0 |
Other, net | (13,197) | (3,618) | (12,129) | (3,764) |
Total other income (expense), net | (57,329) | (44,851) | (140,462) | (130,253) |
Income (loss) from continuing operations before income taxes | (11,896) | 13,105 | (34,598) | 13,645 |
Income tax benefit (provision) | (5,176) | (10,967) | (1,185) | (13,756) |
Net income (loss) from continuing operations | (17,072) | 2,138 | (35,783) | (111) |
Net income (loss) from discontinued operations | 14,382 | 26,782 | 57,734 | 90,105 |
Net income (loss) | (2,690) | 28,920 | 21,951 | 89,994 |
Less: Net income (loss) attributable to noncontrolling interests | (2,797) | 450 | (1,359) | 1,292 |
Net income (loss) attributable to HSS | 107 | 28,470 | 23,310 | 88,702 |
Comprehensive income (loss): | ||||
Net income (loss) | (2,690) | 28,920 | 21,951 | 89,994 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (16,247) | (9,460) | (13,927) | (39,874) |
Unrealized gains (losses) on available-for-sale securities and other | (117) | (117) | 2,188 | (199) |
Equity in other comprehensive income (loss) of subsidiaries, net | 0 | 0 | 0 | 0 |
Amounts reclassified to net income (loss): | ||||
Realized gains on available-for-sale securities | 0 | (1) | (400) | (4) |
Other comprehensive income (loss) | (16,364) | (9,578) | (12,139) | (40,077) |
Comprehensive income (loss) | (19,054) | 19,342 | 9,812 | 49,917 |
Less: Comprehensive loss attributable to noncontrolling interests | (2,797) | (140) | (1,359) | (97) |
Comprehensive income (loss) attributable to HSS | (16,257) | 19,482 | 11,171 | 50,014 |
Services and other revenue | ||||
Revenue: | ||||
Revenue | 397,649 | 386,820 | 1,182,455 | 1,113,471 |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | 142,429 | 141,333 | 425,896 | 418,651 |
Services and other revenue | DISH Network | ||||
Revenue: | ||||
Revenue | 9,747 | 13,984 | 32,021 | 48,118 |
Equipment | ||||
Revenue: | ||||
Revenue | 65,725 | 56,846 | 175,084 | 150,134 |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | 51,188 | 46,318 | 142,744 | 127,254 |
Reportable Legal Entities | HSS | ||||
Revenue: | ||||
Revenue | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Selling, general and administrative expenses | 0 | 0 | 88 | 0 |
Research and development expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total costs and expenses | 0 | 0 | 88 | 0 |
Operating income (loss) | 0 | 0 | (88) | 0 |
Other income (expense): | ||||
Interest income | 10,968 | 15,019 | 44,693 | 39,548 |
Interest expense, net of amounts capitalized | (40,433) | (57,514) | (150,234) | (172,438) |
Gains (losses) on investments, net | 37 | 0 | 437 | 0 |
Equity in earnings (losses) of unconsolidated affiliates, net | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of subsidiaries, net | 26,054 | 61,476 | 110,118 | 191,915 |
Other, net | 0 | 1 | (100) | 7 |
Total other income (expense), net | (3,374) | 18,982 | 4,914 | 59,032 |
Income (loss) from continuing operations before income taxes | (3,374) | 18,982 | 4,826 | 59,032 |
Income tax benefit (provision) | 7,590 | 9,488 | 25,193 | 29,670 |
Net income (loss) from continuing operations | 4,216 | 28,470 | 30,019 | 88,702 |
Net income (loss) from discontinued operations | (4,109) | 0 | (6,709) | 0 |
Net income (loss) | 107 | 28,470 | 23,310 | 88,702 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to HSS | 107 | 28,470 | 23,310 | 88,702 |
Comprehensive income (loss): | ||||
Net income (loss) | 107 | 28,470 | 23,310 | 88,702 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Unrealized gains (losses) on available-for-sale securities and other | 15 | 27 | 2,333 | 186 |
Equity in other comprehensive income (loss) of subsidiaries, net | (16,379) | (9,014) | (14,072) | (38,870) |
Amounts reclassified to net income (loss): | ||||
Realized gains on available-for-sale securities | (1) | (400) | (4) | |
Other comprehensive income (loss) | (16,364) | (8,988) | (12,139) | (38,688) |
Comprehensive income (loss) | (16,257) | 19,482 | 11,171 | 50,014 |
Less: Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to HSS | (16,257) | 19,482 | 11,171 | 50,014 |
Reportable Legal Entities | HSS | Services and other revenue | ||||
Revenue: | ||||
Revenue | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | 0 | 0 | 0 | 0 |
Reportable Legal Entities | HSS | Services and other revenue | DISH Network | ||||
Revenue: | ||||
Revenue | 0 | 0 | 0 | 0 |
Reportable Legal Entities | HSS | Equipment | ||||
Revenue: | ||||
Revenue | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Revenue: | ||||
Revenue | 433,587 | 409,697 | 1,252,968 | 1,174,054 |
Costs and expenses: | ||||
Selling, general and administrative expenses | 88,853 | 85,200 | 290,556 | 251,053 |
Research and development expenses | 5,953 | 6,544 | 18,893 | 20,328 |
Depreciation and amortization | 99,099 | 94,643 | 293,519 | 277,889 |
Total costs and expenses | 367,730 | 348,105 | 1,097,629 | 1,021,873 |
Operating income (loss) | 65,857 | 61,592 | 155,339 | 152,181 |
Other income (expense): | ||||
Interest income | 1,466 | 930 | 3,403 | 2,855 |
Interest expense, net of amounts capitalized | (1,016) | (254) | (7,302) | 983 |
Gains (losses) on investments, net | 33 | 145 | (727) | 262 |
Equity in earnings (losses) of unconsolidated affiliates, net | (894) | 992 | (2,882) | 3,722 |
Equity in earnings (losses) of subsidiaries, net | (44,409) | (6,701) | (77,204) | (18,559) |
Other, net | (9) | (15) | (57) | 9,377 |
Total other income (expense), net | (44,829) | (4,903) | (84,769) | (1,360) |
Income (loss) from continuing operations before income taxes | 21,028 | 56,689 | 70,570 | 150,821 |
Income tax benefit (provision) | (13,375) | (21,904) | (24,656) | (48,681) |
Net income (loss) from continuing operations | 7,653 | 34,785 | 45,914 | 102,140 |
Net income (loss) from discontinued operations | 18,491 | 26,782 | 64,443 | 90,105 |
Net income (loss) | 26,144 | 61,567 | 110,357 | 192,245 |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to HSS | 26,144 | 61,567 | 110,357 | 192,245 |
Comprehensive income (loss): | ||||
Net income (loss) | 26,144 | 61,567 | 110,357 | 192,245 |
Other comprehensive income (loss), 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 |
Equity in other comprehensive income (loss) of subsidiaries, net | (16,379) | (9,014) | (14,072) | (38,870) |
Amounts reclassified to net income (loss): | ||||
Realized gains on available-for-sale securities | 0 | 0 | 0 | |
Other comprehensive income (loss) | (16,379) | (9,014) | (14,072) | (38,870) |
Comprehensive income (loss) | 9,765 | 52,553 | 96,285 | 153,375 |
Less: Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to HSS | 9,765 | 52,553 | 96,285 | 153,375 |
Reportable Legal Entities | Guarantor Subsidiaries | Services and other revenue | ||||
Revenue: | ||||
Revenue | 347,625 | 339,066 | 1,032,361 | 970,251 |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | 110,388 | 113,982 | 330,634 | 335,007 |
Reportable Legal Entities | Guarantor Subsidiaries | Services and other revenue | DISH Network | ||||
Revenue: | ||||
Revenue | 9,057 | 13,493 | 30,213 | 46,613 |
Reportable Legal Entities | Guarantor Subsidiaries | Equipment | ||||
Revenue: | ||||
Revenue | 76,905 | 57,138 | 190,394 | 157,190 |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | 63,437 | 47,736 | 164,027 | 137,596 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Revenue: | ||||
Revenue | 63,815 | 65,428 | 200,486 | 190,061 |
Costs and expenses: | ||||
Selling, general and administrative expenses | 23,602 | 13,156 | 64,739 | 36,359 |
Research and development expenses | 183 | 0 | 518 | 0 |
Depreciation and amortization | 16,849 | 13,203 | 48,567 | 38,041 |
Total costs and expenses | 84,239 | 69,064 | 249,873 | 198,344 |
Operating income (loss) | (20,424) | (3,636) | (49,387) | (8,283) |
Other income (expense): | ||||
Interest income | 1,106 | 670 | 2,198 | 1,679 |
Interest expense, net of amounts capitalized | (15,399) | (1,221) | (17,919) | (3,100) |
Gains (losses) on investments, net | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of unconsolidated affiliates, net | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of subsidiaries, net | 0 | 0 | 0 | 0 |
Other, net | (13,188) | (3,604) | (11,972) | (13,148) |
Total other income (expense), net | (27,481) | (4,155) | (27,693) | (14,569) |
Income (loss) from continuing operations before income taxes | (47,905) | (7,791) | (77,080) | (22,852) |
Income tax benefit (provision) | 609 | 1,449 | (1,722) | 5,255 |
Net income (loss) from continuing operations | (47,296) | (6,342) | (78,802) | (17,597) |
Net income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net income (loss) | (47,296) | (6,342) | (78,802) | (17,597) |
Less: Net income (loss) attributable to noncontrolling interests | (2,797) | 450 | (1,359) | 1,292 |
Net income (loss) attributable to HSS | (44,499) | (6,792) | (77,443) | (18,889) |
Comprehensive income (loss): | ||||
Net income (loss) | (47,296) | (6,342) | (78,802) | (17,597) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (16,247) | (9,460) | (13,927) | (39,874) |
Unrealized gains (losses) on available-for-sale securities and other | (132) | (144) | (145) | (385) |
Equity in other comprehensive income (loss) of subsidiaries, net | 0 | 0 | 0 | 0 |
Amounts reclassified to net income (loss): | ||||
Realized gains on available-for-sale securities | 0 | 0 | 0 | |
Other comprehensive income (loss) | (16,379) | (9,604) | (14,072) | (40,259) |
Comprehensive income (loss) | (63,675) | (15,946) | (92,874) | (57,856) |
Less: Comprehensive loss attributable to noncontrolling interests | (2,797) | (140) | (1,359) | (97) |
Comprehensive income (loss) attributable to HSS | (60,878) | (15,806) | (91,515) | (57,759) |
Reportable Legal Entities | Non-Guarantor Subsidiaries | Services and other revenue | ||||
Revenue: | ||||
Revenue | 58,879 | 57,312 | 176,717 | 171,767 |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | 40,428 | 36,206 | 120,061 | 110,441 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | Services and other revenue | DISH Network | ||||
Revenue: | ||||
Revenue | 690 | 491 | 1,808 | 1,505 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | Equipment | ||||
Revenue: | ||||
Revenue | 4,246 | 7,625 | 21,961 | 16,789 |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | 3,177 | 6,499 | 15,988 | 13,503 |
Eliminations | ||||
Revenue: | ||||
Revenue | (24,281) | (17,475) | (63,894) | (52,392) |
Costs and expenses: | ||||
Selling, general and administrative expenses | (468) | (703) | (1,824) | (1,750) |
Research and development expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total costs and expenses | (24,281) | (17,475) | (63,894) | (52,392) |
Operating income (loss) | 0 | 0 | 0 | 0 |
Other income (expense): | ||||
Interest income | (1,240) | (922) | (2,953) | (2,720) |
Interest expense, net of amounts capitalized | 1,240 | 922 | 2,953 | 2,720 |
Gains (losses) on investments, net | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of unconsolidated affiliates, net | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of subsidiaries, net | 18,355 | (54,775) | (32,914) | (173,356) |
Other, net | 0 | 0 | 0 | 0 |
Total other income (expense), net | 18,355 | (54,775) | (32,914) | (173,356) |
Income (loss) from continuing operations before income taxes | 18,355 | (54,775) | (32,914) | (173,356) |
Income tax benefit (provision) | 0 | 0 | 0 | 0 |
Net income (loss) from continuing operations | 18,355 | (54,775) | (32,914) | (173,356) |
Net income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net income (loss) | 18,355 | (54,775) | (32,914) | (173,356) |
Less: Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to HSS | 18,355 | (54,775) | (32,914) | (173,356) |
Comprehensive income (loss): | ||||
Net income (loss) | 18,355 | (54,775) | (32,914) | (173,356) |
Other comprehensive income (loss), 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 |
Equity in other comprehensive income (loss) of subsidiaries, net | 32,758 | 18,028 | 28,144 | 77,740 |
Amounts reclassified to net income (loss): | ||||
Realized gains on available-for-sale securities | 0 | 0 | 0 | |
Other comprehensive income (loss) | 32,758 | 18,028 | 28,144 | 77,740 |
Comprehensive income (loss) | 51,113 | (36,747) | (4,770) | (95,616) |
Less: Comprehensive loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to HSS | 51,113 | (36,747) | (4,770) | (95,616) |
Eliminations | Services and other revenue | ||||
Revenue: | ||||
Revenue | (8,855) | (9,558) | (26,623) | (28,547) |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | (8,387) | (8,855) | (24,799) | (26,797) |
Eliminations | Services and other revenue | DISH Network | ||||
Revenue: | ||||
Revenue | 0 | 0 | 0 | 0 |
Eliminations | Equipment | ||||
Revenue: | ||||
Revenue | (15,426) | (7,917) | (37,271) | (23,845) |
Costs and expenses: | ||||
Cost of sales - (exclusive of depreciation and amortization) | $ (15,426) | $ (7,917) | $ (37,271) | $ (23,845) |
Supplemental Guarantor and No_6
Supplemental Guarantor and Non-Guarantor Financial Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ (2,690) | $ 28,920 | $ 21,951 | $ 89,994 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | 499,289 | 465,636 | ||
Net cash flows from operating activities | 521,240 | 555,630 | ||
Cash flows from investing activities: | ||||
Purchases of marketable investment securities | (462,625) | (1,546,479) | ||
Sales and maturities of marketable investment securities | 1,375,242 | 799,250 | ||
Expenditures for property and equipment | (224,994) | (286,223) | ||
Refunds and other receipts related to property and equipment | 0 | 77,524 | ||
Expenditures for externally marketed software | (21,364) | (24,568) | ||
Dividend received from unconsolidated entity | 2,284 | 0 | ||
Payment for satellite launch services | 0 | (7,125) | ||
Distributions (contributions) and advances from (to) subsidiaries, net | 0 | 0 | ||
Other | 0 | (991) | ||
Net cash flows from investing activities | 668,543 | (988,612) | ||
Cash flows from financing activities: | ||||
Repayment of debt and finance lease obligations | (29,135) | (27,764) | ||
Repurchase and maturity of debt | (920,923) | 0 | ||
Purchase of noncontrolling interest | (7,313) | 0 | ||
Repayment of in-orbit incentive obligations | (5,269) | (4,048) | ||
Contributions (distributions) and advances (to) from parent, net | 0 | 0 | ||
Proceeds from issuance of debt | 1,172 | 0 | ||
Capital contribution from EchoStar Corporation | 0 | 7,125 | ||
Net cash flows from financing activities | (961,468) | (24,687) | ||
Effect of exchange rates on cash and cash equivalents | 310 | (3,350) | ||
Net increase (decrease) in cash and cash equivalents, including restricted amounts | 228,625 | (461,019) | ||
Cash and cash equivalents, including restricted amounts, beginning of period | 848,619 | 1,823,354 | ||
Cash and cash equivalents, including restricted amounts, end of period | 1,077,244 | 1,362,335 | 1,077,244 | 1,362,335 |
Reportable Legal Entities | HSS | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 107 | 28,470 | 23,310 | 88,702 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | (132,557) | (201,774) | ||
Net cash flows from operating activities | (109,247) | (113,072) | ||
Cash flows from investing activities: | ||||
Purchases of marketable investment securities | (462,625) | (1,546,479) | ||
Sales and maturities of marketable investment securities | 1,375,245 | 799,250 | ||
Expenditures for property and equipment | 0 | 0 | ||
Refunds and other receipts related to property and equipment | 0 | |||
Expenditures for externally marketed software | 0 | 0 | ||
Dividend received from unconsolidated entity | 0 | |||
Payment for satellite launch services | 0 | |||
Distributions (contributions) and advances from (to) subsidiaries, net | 359,145 | 397,631 | ||
Other | 0 | |||
Net cash flows from investing activities | 1,271,765 | (349,598) | ||
Cash flows from financing activities: | ||||
Repayment of debt and finance lease obligations | 0 | 0 | ||
Repurchase and maturity of debt | (920,923) | |||
Purchase of noncontrolling interest | 0 | |||
Repayment of in-orbit incentive obligations | 0 | 0 | ||
Contributions (distributions) and advances (to) from parent, net | 0 | 0 | ||
Proceeds from issuance of debt | 0 | |||
Capital contribution from EchoStar Corporation | 7,125 | |||
Net cash flows from financing activities | (920,923) | 7,125 | ||
Effect of exchange rates on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents, including restricted amounts | 241,595 | (455,545) | ||
Cash and cash equivalents, including restricted amounts, beginning of period | 771,718 | 1,746,878 | ||
Cash and cash equivalents, including restricted amounts, end of period | 1,013,313 | 1,291,333 | 1,013,313 | 1,291,333 |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 26,144 | 61,567 | 110,357 | 192,245 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | 493,418 | 438,805 | ||
Net cash flows from operating activities | 603,775 | 631,050 | ||
Cash flows from investing activities: | ||||
Purchases of marketable investment securities | 0 | 0 | ||
Sales and maturities of marketable investment securities | (3) | |||
Expenditures for property and equipment | (162,643) | (223,484) | ||
Refunds and other receipts related to property and equipment | 77,524 | |||
Expenditures for externally marketed software | (21,364) | (24,568) | ||
Dividend received from unconsolidated entity | 2,284 | |||
Payment for satellite launch services | 0 | |||
Distributions (contributions) and advances from (to) subsidiaries, net | (38,282) | (32,985) | ||
Other | (991) | |||
Net cash flows from investing activities | (220,008) | (204,504) | ||
Cash flows from financing activities: | ||||
Repayment of debt and finance lease obligations | (27,203) | (26,545) | ||
Repurchase and maturity of debt | 0 | |||
Purchase of noncontrolling interest | (2,666) | |||
Repayment of in-orbit incentive obligations | (5,269) | (4,048) | ||
Contributions (distributions) and advances (to) from parent, net | (359,145) | (397,631) | ||
Proceeds from issuance of debt | 0 | |||
Capital contribution from EchoStar Corporation | 0 | |||
Net cash flows from financing activities | (394,283) | (428,224) | ||
Effect of exchange rates on cash and cash equivalents | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents, including restricted amounts | (10,516) | (1,678) | ||
Cash and cash equivalents, including restricted amounts, beginning of period | 46,353 | 42,373 | ||
Cash and cash equivalents, including restricted amounts, end of period | 35,837 | 40,695 | 35,837 | 40,695 |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net income (loss) | (47,296) | (6,342) | (78,802) | (17,597) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | 105,514 | 55,249 | ||
Net cash flows from operating activities | 26,712 | 37,652 | ||
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 | (62,351) | (62,739) | ||
Refunds and other receipts related to property and equipment | 0 | |||
Expenditures for externally marketed software | 0 | 0 | ||
Dividend received from unconsolidated entity | 0 | |||
Payment for satellite launch services | (7,125) | |||
Distributions (contributions) and advances from (to) subsidiaries, net | 0 | 0 | ||
Other | 0 | |||
Net cash flows from investing activities | (62,351) | (69,864) | ||
Cash flows from financing activities: | ||||
Repayment of debt and finance lease obligations | (1,932) | (1,219) | ||
Repurchase and maturity of debt | 0 | |||
Purchase of noncontrolling interest | (4,647) | |||
Repayment of in-orbit incentive obligations | 0 | 0 | ||
Contributions (distributions) and advances (to) from parent, net | 38,282 | 32,985 | ||
Proceeds from issuance of debt | 1,172 | |||
Capital contribution from EchoStar Corporation | 0 | |||
Net cash flows from financing activities | 32,875 | 31,766 | ||
Effect of exchange rates on cash and cash equivalents | 310 | (3,350) | ||
Net increase (decrease) in cash and cash equivalents, including restricted amounts | (2,454) | (3,796) | ||
Cash and cash equivalents, including restricted amounts, beginning of period | 30,548 | 34,103 | ||
Cash and cash equivalents, including restricted amounts, end of period | 28,094 | 30,307 | 28,094 | 30,307 |
Eliminations | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 18,355 | (54,775) | (32,914) | (173,356) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | 32,914 | 173,356 | ||
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 | ||
Dividend received from unconsolidated entity | 0 | |||
Payment for satellite launch services | 0 | |||
Distributions (contributions) and advances from (to) subsidiaries, net | (320,863) | (364,646) | ||
Other | 0 | |||
Net cash flows from investing activities | (320,863) | (364,646) | ||
Cash flows from financing activities: | ||||
Repayment of debt and finance lease obligations | 0 | 0 | ||
Repurchase and maturity of debt | 0 | |||
Purchase of noncontrolling interest | 0 | |||
Repayment of in-orbit incentive obligations | 0 | 0 | ||
Contributions (distributions) and advances (to) from parent, net | 320,863 | 364,646 | ||
Proceeds from issuance of debt | 0 | |||
Capital contribution from EchoStar Corporation | 0 | |||
Net cash flows from financing activities | 320,863 | 364,646 | ||
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 |
Supplemental Financial Inform_3
Supplemental Financial Information - Noncash Investing and Financing Activities, Narrative and Research and Development (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Increase (decrease) in capital expenditures included in accounts payable, net | $ (1,883) | $ 24,408 | |||
Noncash net assets exchanged for BSS Transaction (Note 5) | 342,823 | 0 | |||
Restricted cash and cash equivalents | $ 1,000 | $ 800 | 1,000 | 800 | $ 800 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Research and development expenses | 6,136 | 6,544 | 19,411 | 20,328 | |
Payments to develop software | $ 21,364 | 24,568 | |||
Weighted Average | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Software useful life | 3 years | ||||
Other noncurrent assets | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Capitalized computer software | 99,700 | $ 99,700 | 96,800 | ||
Capitalized software development costs for software sold to customers | 33,100 | 33,100 | 28,800 | ||
Payments to develop software | 6,000 | 9,600 | 21,400 | 24,600 | |
Capitalized computer software, amortization | 6,200 | 5,800 | 18,400 | 16,900 | |
Cost of Sales | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Research and development expenses | 6,564 | 5,555 | 18,275 | 18,443 | |
Contract Acquisition Costs | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Unamortized contract acquisition costs | 112,500 | 112,500 | 103,600 | ||
Amortization of contract acquisition costs | 23,800 | $ 22,000 | 70,400 | $ 64,300 | |
Contract Fulfillment Costs | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Unamortized contract acquisition costs | 3,000 | ||||
Level 2 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Fair value of in-orbit incentive obligations | $ 57,100 | $ 57,100 | $ 57,900 |
Supplemental Financial Inform_4
Supplemental Financial Information - Supplemental Cash Flows from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Activities | ||||
Net income (loss) from discontinued operations | $ 14,382 | $ 26,782 | $ 57,734 | $ 90,105 |
Depreciation and amortization | 85,926 | 93,447 | ||
Investing Activities | ||||
Expenditures for property and equipment | (510) | (104) | ||
Financing Activities | ||||
Repayment of lease obligations | 29,588 | 26,545 | ||
Repayment of in-orbit incentive obligations | $ 2,853 | $ 1,953 |
Uncategorized Items - hssc09301
Label | Element | Value |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 1,754,561,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 17,775,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 600,458,000 |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 14,822,000 |