Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 10, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
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 Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,078 | ||
Documents Incorporated by Reference | None | ||
Entity Central Index Key | 0001533758 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,139,435 | $ 847,823 |
Marketable investment securities | 652,835 | 1,609,196 |
Trade accounts receivable and contract assets, net | 196,520 | 201,096 |
Advances to affiliates | 131,892 | 103,550 |
Other current assets | 169,760 | 152,666 |
Current assets of discontinued operations | 0 | 3,483 |
Total current assets | 2,290,442 | 2,917,814 |
Non-current assets: | ||
Property and equipment, net | 1,857,581 | 1,921,911 |
Operating lease right-of-use assets | 113,399 | |
Goodwill | 506,953 | 504,173 |
Regulatory authorizations, net | 412,363 | 400,043 |
Other intangible assets, net | 29,321 | 43,952 |
Other investments, net | 110,040 | 126,369 |
Advances to affiliates, net | 19,759 | 0 |
Other non-current assets, net | 232,177 | 236,449 |
Non-current assets of discontinued operations | 0 | 742,461 |
Total non-current assets | 3,281,593 | 3,975,358 |
Total assets | 5,572,035 | 6,893,172 |
Current liabilities: | ||
Trade accounts payable | 121,552 | 104,751 |
Current portion of long-term debt and finance lease obligations | 486 | 919,582 |
Advances from affiliates, net | 11,132 | 868 |
Contract liabilities | 101,060 | 72,249 |
Accrued expenses and other current liabilities | 246,799 | 157,654 |
Current liabilities of discontinued operations | 0 | 49,055 |
Total current liabilities | 481,029 | 1,304,159 |
Non-current liabilities: | ||
Long-term debt and finance lease obligations, net of current portion | 2,389,733 | 2,386,202 |
Deferred tax liabilities, net | 380,316 | 355,949 |
Operating lease liabilities | 96,879 | |
Advances from affiliates, net | 23,980 | 33,438 |
Other non-current liabilities | 65,935 | 71,647 |
Non-current liabilities of discontinued operations | 0 | 349,282 |
Total non-current liabilities | 2,956,843 | 3,196,518 |
Total liabilities | 3,437,872 | 4,500,677 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding at both December 31, 2019 and 2018 | 0 | 0 |
Common stock, $0.01 par value; 1,000,000 shares authorized, 1,078 shares issued and outstanding at both December 31, 2019 and 2018 | 0 | 0 |
Additional paid-in capital | 1,478,636 | 1,767,037 |
Accumulated other comprehensive income (loss) | (84,636) | (83,774) |
Accumulated earnings (losses) | 664,415 | 693,957 |
Total HSS shareholders’ equity | 2,058,415 | 2,377,220 |
Non-controlling interests | 75,748 | 15,275 |
Total shareholders’ equity | 2,134,163 | 2,392,495 |
Total liabilities and shareholders’ equity | $ 5,572,035 | $ 6,893,172 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
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, 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 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||||||||||
Total revenue | $ 500,600 | $ 473,121 | $ 461,241 | $ 455,199 | $ 455,113 | $ 457,650 | $ 439,667 | $ 414,406 | $ 1,890,161 | $ 1,766,836 | $ 1,515,042 |
Costs and expenses: | |||||||||||
Selling, general and administrative expenses | 467,869 | 397,994 | 337,548 | ||||||||
Research and development expenses | 25,739 | 27,570 | 31,745 | ||||||||
Depreciation and amortization | 464,797 | 426,852 | 370,418 | ||||||||
Impairment of long-lived assets | 0 | 0 | 6,000 | ||||||||
Total costs and expenses | 1,739,209 | 1,588,854 | 1,438,261 | ||||||||
Operating income (loss) | 45,088 | 45,433 | 13,962 | 46,469 | 34,089 | 57,956 | 52,331 | 33,606 | 150,952 | 177,982 | 76,781 |
Other income (expense): | |||||||||||
Interest income | 57,730 | 59,104 | 31,952 | ||||||||
Interest expense, net of amounts capitalized | (272,218) | (231,169) | (213,166) | ||||||||
Gains (losses) on investments, net | (8,464) | 187 | (1,574) | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | (3,333) | 4,874 | 7,027 | ||||||||
Foreign currency transaction gains (losses), net | (9,855) | (12,484) | (1,158) | ||||||||
Other, net | (633) | 8,041 | (1,030) | ||||||||
Total other income (expense), net | (236,773) | (171,447) | (177,949) | ||||||||
Income (loss) from continuing operations before income taxes | (85,821) | 6,535 | (101,168) | ||||||||
Income tax benefit (provision), net | (11,595) | (18,615) | 93,766 | ||||||||
Net income (loss) from continuing operations | (97,416) | (12,080) | (7,402) | ||||||||
Net income (loss) from discontinued operations | 56,539 | 109,423 | 304,955 | ||||||||
Net income (loss) | (62,828) | (2,690) | 1,609 | 23,032 | 7,349 | 28,920 | 40,693 | 20,381 | (40,877) | 97,343 | 297,553 |
Less: Net income (loss) attributable to non-controlling interests | (11,335) | 1,842 | 1,583 | ||||||||
Net income (loss) attributable to HSS | $ (52,852) | $ 107 | $ 977 | $ 22,226 | $ 6,799 | $ 28,470 | $ 40,231 | $ 20,001 | (29,542) | 95,501 | 295,970 |
Services and other revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | 1,623,458 | 1,561,426 | 1,275,553 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 555,701 | 559,838 | 497,111 | ||||||||
Total equipment revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | 266,703 | 205,410 | 239,489 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 225,103 | 176,600 | 195,439 | ||||||||
Eliminations | |||||||||||
Revenue: | |||||||||||
Total revenue | (86,411) | (83,629) | (75,546) | ||||||||
Costs and expenses: | |||||||||||
Selling, general and administrative expenses | (2,451) | (2,170) | (2,736) | ||||||||
Research and development expenses | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Impairment of long-lived assets | 0 | ||||||||||
Total costs and expenses | (86,411) | (83,629) | (75,546) | ||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Other income (expense): | |||||||||||
Interest income | (3,850) | (3,661) | (95,172) | ||||||||
Interest expense, net of amounts capitalized | 3,850 | 3,661 | 95,172 | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | 0 | 0 | 0 | ||||||||
Foreign currency transaction gains (losses), net | 0 | 0 | 0 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Total other income (expense), net | 60,211 | (190,880) | (436,460) | ||||||||
Income (loss) from continuing operations before income taxes | 60,211 | (190,880) | (436,460) | ||||||||
Income tax benefit (provision), net | 0 | 0 | 0 | ||||||||
Net income (loss) from continuing operations | 60,211 | (190,880) | (436,460) | ||||||||
Net income (loss) from discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | 60,211 | (190,880) | (436,460) | ||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to HSS | 60,211 | (190,880) | (436,460) | ||||||||
Eliminations | Services and other revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | (36,458) | (37,906) | (32,220) | ||||||||
Costs and expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | (34,006) | (35,736) | (29,632) | ||||||||
Eliminations | Total equipment revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | (49,953) | (45,723) | (43,326) | ||||||||
Costs and expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | (49,954) | (45,723) | (43,178) | ||||||||
HSS | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Selling, general and administrative expenses | 6,720 | 0 | 0 | ||||||||
Research and development expenses | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Impairment of long-lived assets | 0 | ||||||||||
Total costs and expenses | 6,720 | 0 | 0 | ||||||||
Operating income (loss) | (6,720) | 0 | 0 | ||||||||
Other income (expense): | |||||||||||
Interest income | 54,341 | 56,487 | 28,146 | ||||||||
Interest expense, net of amounts capitalized | (190,685) | (229,481) | (229,415) | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | 0 | 0 | 0 | ||||||||
Foreign currency transaction gains (losses), net | 0 | 0 | 0 | ||||||||
Other, net | (100) | (970) | 0 | ||||||||
Total other income (expense), net | (60,942) | 50,441 | 270,333 | ||||||||
Income (loss) from continuing operations before income taxes | (67,662) | 50,441 | 270,333 | ||||||||
Income tax benefit (provision), net | 38,120 | 45,060 | 25,637 | ||||||||
Net income (loss) from continuing operations | (29,542) | 95,501 | 295,970 | ||||||||
Net income (loss) from discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | (29,542) | 95,501 | 295,970 | ||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to HSS | (29,542) | 95,501 | 295,970 | ||||||||
HSS | Reportable Legal Entities | Services and other revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 0 | 0 | 0 | ||||||||
HSS | Reportable Legal Entities | Total equipment revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 0 | 0 | 0 | ||||||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 1,701,451 | 1,588,455 | 1,382,787 | ||||||||
Costs and expenses: | |||||||||||
Selling, general and administrative expenses | 375,309 | 345,221 | 293,767 | ||||||||
Research and development expenses | 25,082 | 27,570 | 31,745 | ||||||||
Depreciation and amortization | 391,464 | 374,297 | 332,103 | ||||||||
Impairment of long-lived assets | 6,000 | ||||||||||
Total costs and expenses | 1,480,769 | 1,395,330 | 1,277,480 | ||||||||
Operating income (loss) | 220,682 | 193,125 | 105,307 | ||||||||
Other income (expense): | |||||||||||
Interest income | 4,441 | 3,806 | 96,992 | ||||||||
Interest expense, net of amounts capitalized | (7,832) | (866) | (80,543) | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | (3,333) | 4,874 | 7,027 | ||||||||
Foreign currency transaction gains (losses), net | (344) | (104) | (85) | ||||||||
Other, net | (351) | 9,259 | (871) | ||||||||
Total other income (expense), net | (151,596) | (16,369) | (14,196) | ||||||||
Income (loss) from continuing operations before income taxes | 69,086 | 176,756 | 91,111 | ||||||||
Income tax benefit (provision), net | (50,242) | (62,230) | 75,956 | ||||||||
Net income (loss) from continuing operations | 18,844 | 114,526 | 167,067 | ||||||||
Net income (loss) from discontinued operations | 56,539 | 109,423 | 304,955 | ||||||||
Net income (loss) | 75,383 | 223,949 | 472,022 | ||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to HSS | 75,383 | 223,949 | 472,022 | ||||||||
Guarantor Subsidiaries | Reportable Legal Entities | Services and other revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | 1,417,659 | 1,366,459 | 1,127,177 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 438,214 | 447,622 | 395,566 | ||||||||
Guarantor Subsidiaries | Reportable Legal Entities | Total equipment revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | 283,792 | 221,996 | 255,610 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 250,700 | 200,620 | 218,299 | ||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 275,121 | 262,010 | 207,801 | ||||||||
Costs and expenses: | |||||||||||
Selling, general and administrative expenses | 88,291 | 54,943 | 46,517 | ||||||||
Research and development expenses | 657 | 0 | 0 | ||||||||
Depreciation and amortization | 73,333 | 52,555 | 38,315 | ||||||||
Impairment of long-lived assets | 0 | ||||||||||
Total costs and expenses | 338,131 | 277,153 | 236,327 | ||||||||
Operating income (loss) | (63,010) | (15,143) | (28,526) | ||||||||
Other income (expense): | |||||||||||
Interest income | 2,798 | 2,472 | 1,986 | ||||||||
Interest expense, net of amounts capitalized | (77,551) | (4,483) | 1,620 | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | 0 | 0 | 0 | ||||||||
Foreign currency transaction gains (losses), net | (9,511) | (12,380) | (1,073) | ||||||||
Other, net | (182) | (248) | (159) | ||||||||
Total other income (expense), net | (84,446) | (14,639) | 2,374 | ||||||||
Income (loss) from continuing operations before income taxes | (147,456) | (29,782) | (26,152) | ||||||||
Income tax benefit (provision), net | 527 | (1,445) | (7,827) | ||||||||
Net income (loss) from continuing operations | (146,929) | (31,227) | (33,979) | ||||||||
Net income (loss) from discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | (146,929) | (31,227) | (33,979) | ||||||||
Less: Net income (loss) attributable to non-controlling interests | (11,335) | 1,842 | 1,583 | ||||||||
Net income (loss) attributable to HSS | (135,594) | (33,069) | (35,562) | ||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | Services and other revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | 242,257 | 232,873 | 180,596 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 151,493 | 147,952 | 131,177 | ||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | Total equipment revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | 32,864 | 29,137 | 27,205 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | $ 24,357 | $ 21,703 | $ 20,318 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Statement - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net income (loss) | $ (62,828) | $ (2,690) | $ 1,609 | $ 23,032 | $ 7,349 | $ 28,920 | $ 40,693 | $ 20,381 | $ (40,877) | $ 97,343 | $ 297,553 |
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | 1,182 | (31,938) | 7,196 | ||||||||
Unrealized gains (losses) on available-for-sale securities | 1,817 | (665) | (2,280) | ||||||||
Other | (114) | 41 | 92 | ||||||||
Amounts reclassified to net income (loss): | |||||||||||
Realized gains on available-for-sale securities | (419) | (212) | 0 | ||||||||
Other-than-temporary impairment loss on available-for-sale securities | 0 | 0 | 3,298 | ||||||||
Total other comprehensive income (loss), net of tax | 2,466 | (32,774) | 8,306 | ||||||||
Comprehensive income (loss) | (38,411) | 64,569 | 305,859 | ||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests | (8,007) | 453 | 1,992 | ||||||||
Comprehensive income (loss) attributable to HSS | $ (30,404) | $ 64,116 | $ 303,867 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Losses) | Non-controlling Interests |
Beginning balance at Dec. 31, 2016 | $ 1,755,023 | $ 1,516,199 | $ (60,719) | $ 286,713 | $ 12,830 |
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation | 5,117 | 5,117 | |||
Transfer of launch service contracts to EchoStar | (145,114) | (145,114) | |||
Contribution of EchoStar XIX satellite, net of deferred tax | 349,337 | 349,337 | |||
Contribution of net assets pursuant to Share Exchange Agreement | 219,662 | 219,662 | |||
Exchange of uplinking business net assets for HSS Tracking Stock | (190,221) | (190,221) | |||
Other comprehensive income (loss) | 8,214 | 7,805 | 409 | ||
Net income (loss) | 297,553 | 295,970 | 1,583 | ||
Other comprehensive income (loss) | (327) | (419) | 92 | ||
Ending balance at Dec. 31, 2017 | 2,299,244 | 1,754,561 | (52,822) | 582,683 | 14,822 |
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation | 5,435 | 5,435 | |||
Capital contribution from EchoStar Corporation | 7,125 | 7,125 | |||
Other comprehensive income (loss) | (32,774) | (31,385) | (1,389) | ||
Net income (loss) | 97,343 | 95,501 | 1,842 | ||
Other comprehensive income (loss) | (84) | (84) | |||
Ending balance at Dec. 31, 2018 | 2,392,495 | 1,767,037 | (83,774) | 693,957 | 15,275 |
Increase (Decrease) in Stockholders' Equity | |||||
Stock-based compensation | 5,436 | 5,436 | |||
Capital contribution from EchoStar Corporation | 9,606 | 9,606 | |||
Capital contribution from EchoStar Corporation | (7,313) | (833) | (6,480) | ||
Purchase of non-controlling interest | (332,699) | (332,699) | |||
Issuance of equity and contribution of assets pursuant to the Yahsat JV formation | 102,775 | 29,576 | 73,199 | ||
Other comprehensive income (loss) | 2,466 | (862) | 3,328 | ||
Net income (loss) | (40,877) | (29,542) | (11,335) | ||
Other comprehensive income (loss) | 2,274 | 513 | 1,761 | ||
Ending balance at Dec. 31, 2019 | $ 2,134,163 | $ 1,478,636 | $ (84,636) | $ 664,415 | $ 75,748 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (40,877) | $ 97,343 | $ 297,553 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 550,723 | 551,416 | 496,798 |
Impairment of long-lived assets | 0 | 0 | 6,000 |
Losses (gains) on investments, net | 8,464 | (184) | 1,574 |
Equity in losses (earnings) of unconsolidated affiliates, net | 3,333 | (4,791) | (7,027) |
Foreign currency transaction losses (gains), net | 9,855 | 12,484 | 1,158 |
Deferred tax provision (benefit), net | 14,703 | 43,698 | (268,071) |
Stock-based compensation | 5,436 | 5,435 | 5,117 |
Amortization of debt issuance costs | 5,912 | 7,923 | 7,378 |
Dividends received from unconsolidated affiliates | 2,716 | 10,000 | 19,000 |
Proceeds from sale of trading securities | 0 | 0 | 8,922 |
Increase (Decrease) in Operating Capital [Abstract] | |||
Trade accounts receivable and contract assets, net | 8,398 | (17,840) | (12,459) |
Advances to and from affiliates, net | (36,662) | 7,276 | 12,176 |
Other current assets | (44,752) | 13,429 | (51,994) |
Trade accounts payable | 13,510 | 6,258 | (4,826) |
Contract liabilities | 26,411 | 7,832 | 5,970 |
Accrued expenses and other current liabilities | 93,117 | 9,007 | 7,731 |
Changes in non-current assets and non-current liabilities, net | 13,557 | (2,680) | (30,831) |
Other, net | (240) | (3,903) | 2,860 |
Net cash flows from operating activities | 633,604 | 742,703 | 497,029 |
Cash flows from investing activities: | |||
Purchases of marketable investment securities | (709,350) | (2,063,042) | (535,476) |
Sales and maturities of marketable investment securities | 1,665,269 | 909,996 | 259,263 |
Investment in subsidiaries | 7,851 | (100,991) | 0 |
Dividend received from unconsolidated affiliate | 2,284 | 0 | 0 |
Expenditures for property and equipment | (309,291) | (391,065) | (401,538) |
Refunds and other receipts related to property and equipment | 0 | 77,524 | 4,311 |
Expenditures for externally marketed software | (29,310) | (31,639) | (31,331) |
Purchases of regulatory authorizations | (7,850) | 0 | 0 |
Payment for EchoStar XXI launch services | 0 | (7,125) | 0 |
Net cash flows from investing activities | 619,603 | (1,606,342) | (704,771) |
Cash flows from financing activities: | |||
Repurchase and maturity of the 2019 Senior Secured Notes | (920,923) | (70,173) | |
Repayment of other long-term debt and finance lease obligations | (29,347) | (41,019) | (37,063) |
Payment of in-orbit incentive obligations | (4,430) | (4,796) | (5,850) |
Capital contribution from EchoStar | 0 | 7,125 | |
Purchase of non-controlling interest | (7,313) | 0 | 0 |
Other, net | 1,172 | 0 | 1,036 |
Net cash flows from financing activities | (960,841) | (108,863) | (41,877) |
Effect of exchange rates on cash and cash equivalents | (663) | (2,233) | 1,286 |
Net increase (decrease) in cash and cash equivalents | 291,703 | (974,735) | (248,333) |
Cash and cash equivalents, including restricted amounts, beginning of period | 848,619 | 1,823,354 | 2,071,687 |
Cash and cash equivalents, including restricted amounts, end of period | 1,140,322 | 848,619 | 1,823,354 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest (including capitalized interest) | 216,025 | 250,576 | 236,232 |
Cash paid for income taxes | 3,094 | 4,837 | 3,574 |
Eliminations | |||
Cash flows from operating activities: | |||
Net income (loss) | 60,211 | (190,880) | (436,460) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Impairment of long-lived assets | 0 | ||
Foreign currency transaction losses (gains), net | 0 | 0 | 0 |
Increase (Decrease) in Operating Capital [Abstract] | |||
Net cash flows from operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Purchases of marketable investment securities | 0 | 0 | 0 |
Sales and maturities of marketable investment securities | 0 | 0 | 0 |
Investment in subsidiaries | 0 | 0 | 122,000 |
Dividend received from unconsolidated affiliate | 0 | ||
Expenditures for property and equipment | 0 | 0 | 0 |
Refunds and other receipts related to property and equipment | 0 | 0 | |
Expenditures for externally marketed software | 0 | 0 | |
Purchases of regulatory authorizations | 0 | ||
Payment for EchoStar XXI launch services | 0 | ||
Net cash flows from investing activities | (232,338) | (255,129) | 122,000 |
Cash flows from financing activities: | |||
Repurchase and maturity of the 2019 Senior Secured Notes | 0 | 0 | |
Repayment of other long-term debt and finance lease obligations | 0 | 0 | 0 |
Payment of in-orbit incentive obligations | 0 | 0 | |
Capital contribution from EchoStar | 0 | ||
Purchase of non-controlling interest | 0 | ||
Other, net | 0 | 0 | |
Net cash flows from financing activities | 232,338 | 255,129 | (122,000) |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Reportable Legal Entities | HSS | |||
Cash flows from operating activities: | |||
Net income (loss) | (29,542) | 95,501 | 295,970 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Impairment of long-lived assets | 0 | ||
Foreign currency transaction losses (gains), net | 0 | 0 | 0 |
Increase (Decrease) in Operating Capital [Abstract] | |||
Net cash flows from operating activities | (56,235) | (64,735) | 89,956 |
Cash flows from investing activities: | |||
Purchases of marketable investment securities | (709,350) | (2,063,042) | (535,476) |
Sales and maturities of marketable investment securities | 1,665,269 | 909,996 | 259,263 |
Investment in subsidiaries | 0 | 0 | (59,000) |
Dividend received from unconsolidated affiliate | 0 | ||
Expenditures for property and equipment | 0 | 0 | 0 |
Refunds and other receipts related to property and equipment | 0 | 0 | |
Expenditures for externally marketed software | 0 | 0 | |
Purchases of regulatory authorizations | 0 | ||
Payment for EchoStar XXI launch services | 0 | ||
Net cash flows from investing activities | 1,263,343 | (847,377) | (335,213) |
Cash flows from financing activities: | |||
Repurchase and maturity of the 2019 Senior Secured Notes | (920,923) | (70,173) | |
Repayment of other long-term debt and finance lease obligations | 0 | 0 | 0 |
Payment of in-orbit incentive obligations | 0 | 0 | |
Capital contribution from EchoStar | 7,125 | ||
Purchase of non-controlling interest | 0 | ||
Other, net | 0 | 186 | |
Net cash flows from financing activities | (920,923) | (63,048) | 186 |
Net increase (decrease) in cash and cash equivalents | 286,185 | (975,160) | (245,071) |
Reportable Legal Entities | Guarantor Subsidiaries | |||
Cash flows from operating activities: | |||
Net income (loss) | 75,383 | 223,949 | 472,022 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Impairment of long-lived assets | 6,000 | ||
Foreign currency transaction losses (gains), net | 344 | 104 | 85 |
Increase (Decrease) in Operating Capital [Abstract] | |||
Net cash flows from operating activities | 644,827 | 760,353 | 397,712 |
Cash flows from investing activities: | |||
Purchases of marketable investment securities | 0 | 0 | 0 |
Sales and maturities of marketable investment securities | 0 | 0 | 0 |
Investment in subsidiaries | (7) | (100,991) | (63,000) |
Dividend received from unconsolidated affiliate | 2,284 | ||
Expenditures for property and equipment | (215,000) | (304,376) | (340,197) |
Refunds and other receipts related to property and equipment | 77,524 | 4,311 | |
Expenditures for externally marketed software | (29,310) | (31,639) | |
Purchases of regulatory authorizations | 0 | ||
Payment for EchoStar XXI launch services | 0 | ||
Net cash flows from investing activities | (317,119) | (410,022) | (430,217) |
Cash flows from financing activities: | |||
Repurchase and maturity of the 2019 Senior Secured Notes | 0 | 0 | |
Repayment of other long-term debt and finance lease obligations | (27,203) | (35,886) | (32,177) |
Payment of in-orbit incentive obligations | (4,430) | (4,796) | |
Capital contribution from EchoStar | 0 | ||
Purchase of non-controlling interest | (2,666) | ||
Other, net | 0 | 0 | |
Net cash flows from financing activities | (341,723) | (346,351) | 20,973 |
Net increase (decrease) in cash and cash equivalents | (14,015) | 3,980 | (11,532) |
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||
Cash flows from operating activities: | |||
Net income (loss) | (146,929) | (31,227) | (33,979) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Impairment of long-lived assets | 0 | ||
Foreign currency transaction losses (gains), net | 9,511 | 12,380 | 1,073 |
Increase (Decrease) in Operating Capital [Abstract] | |||
Net cash flows from operating activities | 45,012 | 47,085 | 9,361 |
Cash flows from investing activities: | |||
Purchases of marketable investment securities | 0 | 0 | 0 |
Sales and maturities of marketable investment securities | 0 | 0 | 0 |
Investment in subsidiaries | 7,858 | 0 | 0 |
Dividend received from unconsolidated affiliate | 0 | ||
Expenditures for property and equipment | (94,291) | (86,689) | (61,341) |
Refunds and other receipts related to property and equipment | 0 | 0 | |
Expenditures for externally marketed software | 0 | 0 | |
Purchases of regulatory authorizations | (7,850) | ||
Payment for EchoStar XXI launch services | (7,125) | ||
Net cash flows from investing activities | (94,283) | (93,814) | (61,341) |
Cash flows from financing activities: | |||
Repurchase and maturity of the 2019 Senior Secured Notes | 0 | 0 | |
Repayment of other long-term debt and finance lease obligations | (2,144) | (5,133) | (4,886) |
Payment of in-orbit incentive obligations | 0 | 0 | |
Capital contribution from EchoStar | 0 | ||
Purchase of non-controlling interest | (4,647) | ||
Other, net | 1,172 | 850 | |
Net cash flows from financing activities | 69,467 | 45,407 | 58,964 |
Net increase (decrease) in cash and cash equivalents | $ 19,533 | $ (3,555) | $ 8,270 |
Organization and Business Activ
Organization and Business Activities | 12 Months Ended |
Dec. 31, 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 “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 consumer customers, which include home and small to medium-sized businesses, and satellite services. We also deliver innovative network technologies, managed services and communications solutions for enterprise customers, which include aeronautical and government enterprises. We operate in the following two business segments : • Hughes — which provides broadband satellite technologies and broadband internet services to domestic and international consumer customers and broadband network technologies, managed services, equipment, hardware, satellite services and communication solutions to service providers and enterprise 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. • 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, Accounting, Real Estate and Legal) and other activities that have not been assigned to our operating segments such as costs incurred in certain satellite development programs and other business development activities, and gains or losses from certain of our investments. These activities, costs and income, as well as eliminations of intersegment transactions, are accounted for in Corporate and Other . We also divide our operations by primary geographic market as follows: (i) North America (the U.S. and its territories, Mexico, and Canada); (ii) South and Central America and; (iii) All other (Asia, Africa, Australia, Europe, India, and the Middle East). Refer to Note 18 . Segment Reporting for further detail . 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 former portion of our ESS segment that managed, marketed and provided (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’s 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’s 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”). 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, EchoStar and certain of our and its other subsidiaries, on the one hand, and DISH Network, on the other hand, will obtain and provide certain products, services and rights from and to each other. 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 and was accounted for as a spin-off to EchoStar’s stockholders as we and EchoStar did not receive any consideration. Following the consummation of the BSS Transaction, we no longer operate the BSS Business, which was a substantial portion of our ESS segment. As a result of the BSS Transaction, the financial results of the BSS Business, except for certain real estate that transferred in the transaction, are presented as discontinued operations and, as such, excluded from continuing operations and segment results for all periods presented in these Consolidated Financial Statements . 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 EchoStar 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. Refer to Note 5 . Discontinued Operations for further detail. Additionally, all amounts in the following footnotes reference results from continuing operations unless otherwise noted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation These Consolidated Financial Statements and the accompanying notes are prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). 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 in which we are the primary beneficiary and in other entities in which 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 non-controlling interest within shareholders’ equity for the portion of the entity’s equity attributed to the non-controlling ownership interests. All significant intercompany balances and transactions have been eliminated in consolidation. All amounts presented in these Consolidated Financial Statements and their accompanying notes are expressed in thousands of U.S. dollars, except share and per share amounts and unless otherwise noted. Reclassification Certain prior period amounts have been reclassified to conform with the current period presentation. Use of Estimates We are required to make certain estimates and assumptions that affect the amounts reported in these Consolidated Financial Statements. The most significant estimates and assumptions are used in determining: (i) inputs used to recognize revenue over time, including amortization periods for deferred contract acquisition costs; (ii) allowances for doubtful accounts; (iii) deferred taxes and related valuation allowances, including uncertain tax positions; (iv) loss contingencies; (v) fair value of financial instruments ; (vi) fair value of assets and liabilities acquired in business combinations; and (vii) asset impairment testing. We base our estimates and assumptions on historical experience, observable market inputs and on various other factors that we believe to be relevant under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from previously estimated amounts and such differences may be material to our financial statements. Additionally, changing economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions thereto are reflected in the period they occur or prospectively if the revised estimate affects future periods. Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We utilize the highest level of inputs available according to the following hierarchy in determining fair value: • Level 1 - Defined as observable inputs being quoted prices in active markets for identical assets; • Level 2 - Defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3 - Defined as unobservable inputs for which little or no market data exists, consistent with characteristics of the asset or liability that would be considered by market participants in a transaction to purchase or sell the asset or liability. Fair values of our marketable investment securities are measured on a recurring basis based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Fair values for our outstanding debt are based on quoted market prices in less active markets and are categorized as Level 2 measurements. Additionally, we use fair value measurements from time to time in connection with other investments, asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were no transfers between levels during the years ended December 31, 2019 and 2018 . As of December 31, 2019 and 2018 , the carrying amounts of our cash and cash equivalents, trade accounts receivable and contract assets, net, trade accounts payable, and accrued expenses and other current liabilities were equal to or approximated their fair value due to their short-term nature or proximity to current market rates. Revenue Recognition Overview Revenue is recognized upon transfer of control of the promised goods or our performance of the services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We enter into contracts that may include various combinations of products and services, which are generally distinct and accounted for as separate performance obligations. We also recognize lease revenue which is derived from leases of property and equipment which, for operating leases, is reported in Services and other revenue in the Consolidated Statements of Operations and, for sales-type leases, is reported in Equipment revenue in the Consolidated Statements of Operations . Certain of our customer contracts contain embedded equipment leases, which we separate from non-lease components of the contract based on the relative standalone selling prices of the lease and non-lease components. Hughes Segment Our Hughes segment service contracts typically obligate us to provide substantially the same services on a recurring basis in exchange for fixed recurring fees over the term of the contract. We satisfy such performance obligations over time and recognize revenue ratably as services are rendered over the service period. Certain of our contracts with service obligations provide for fees based on usage, capacity or volume. We satisfy these performance obligations and recognize the related revenue at the point in time, or over the period, when the services are rendered. Our Hughes segment also sells and leases communications equipment to its customers. Revenue from equipment sales generally is recognized based upon shipment terms. Our equipment sales contracts typically include standard product warranties, but generally do not provide for returns or refunds. Revenue for extended warranties is recognized ratably over the extended warranty period. For contracts with multiple performance obligations, we typically allocate the contract’s transaction price to each performance obligation based on their relative standalone selling prices. When the standalone selling price is not observable, our primary method used to estimate standalone selling price is the expected cost plus a margin. Our contracts generally require customer payments to be made at or shortly after the time we transfer control of goods or perform the services. In addition to equipment and service offerings, our Hughes segment also enters into long-term contracts to design, develop, construct and install complex telecommunication networks for mobile system operators and enterprise customers. Revenue from such contracts is generally recognized over time as a measure of progress that depicts the transfer of control of the goods or services to the customer. Depending on the nature of the arrangement, we measure progress toward contract completion using an appropriate input method or output method. Under the input method, we recognize the transaction price as revenue based on the ratio of costs incurred to estimated total costs at completion. Under the output method, revenue and cost of sales are recognized as products are delivered based on the expected profit for the entire agreement. Profit margins on long-term contracts generally are based on estimates of revenue and costs at completion. We review and revise our estimates periodically and recognize related adjustments in the period in which the revisions are made. Estimated losses on contracts are recorded in the period in which they are identified. We generally receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. ESS Segment Generally, our ESS segment service contracts with customers contain a single performance obligation and, therefore, there is no need to allocate the transaction price. We transfer control and recognize revenue for satellite services at the point in time or over the period when the services are rendered. Lease Revenue 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. A lease is classified as a sales-type lease if it meets the 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, we allocate consideration in the contract between lease and non-lease components based on their relative standalone selling prices. We elected an accounting policy to not separate the lease of equipment from related services in our HughesNet satellite internet service (the “HughesNet service”) contracts with customers and account for all revenue from such contracts as non-lease service revenue. Assets subject to operating leases remain in Property and equipment, net and continue to be depreciated. Assets subject to sales-type leases are derecognized from Property and equipment, net at lease commencement and a net investment in the lease asset is recognized in Trade accounts receivable and contract assets, net and Other non-current assets, net . Operating lease revenue is generally 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 are discounted using the interest rate implicit in the lease or our incremental borrowing rate if the interest rate implicit in the lease cannot be reasonably determined. We report revenue from sales-type leases at the commencement date in Equipment revenue and periodic interest income in Services and other revenue. We report operating lease revenue in Services and other revenue . Other Sales and Value Added Taxes, Universal Service Fees and other taxes that we collect concurrent with revenue producing activities are excluded from revenue, and included in A ccrued expenses and other current liabilities in the Consolidated Balance Sheets. Shipping and handling costs associated with outbound freight are accounted for as a fulfillment cost after control over a product has transferred to the customer and are included in Cost of sales - equipment in the Consolidated Statements of Operations at the time of shipment. Cost of Sales - Services and Other Cost of sales - services and other in the Consolidated Statements of Operations primarily consists of costs of satellite capacity and services, hub infrastructure, customer care, wireline and wireless capacity and direct labor costs associated with the services provided and is generally charged to expense as incurred. Cost of Sales - Equipment Cost of sales - equipment in the Consolidated Statements of Operations primarily consists of inventory costs, including freight and royalties, and is generally recognized at the point in time control of the equipment is passed to the customer and related revenue is recognized. Additionally, customer-related research and development costs are incurred in connection with the specific requirements of a customer’s order; in such instances, the amounts for these customer funded development efforts are also included in Cost of sales - equipment in the Consolidated Statements of Operations. Stock-based Compensation Expense Stock-based compensation expense is recognized based on the fair value of stock awards ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Compensation expense for awards with service conditions only is recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense for awards subject to performance conditions is recognized only when satisfaction of the performance condition is probable. Advertising Costs Advertising costs are expensed as incurred and are included in Selling, general and administrative expenses in the Consolidated Statements of Operations Research and Development Research and development costs, not incurred in connection with customer requirements, are generally expensed when incurred. Debt Issuance Costs Costs of issuing debt generally are deferred and amortized utilizing the effective interest method, with amortization included in Interest expense, net of amounts capitalized in the Consolidated Statements of Operations . We report unamortized debt issuance costs as a reduction of the related long-term debt in the Consolidated Balance Sheets . Foreign Currency The functional currency for certain of our foreign operations is determined to be the local currency. Accordingly, we translate assets and liabilities of these foreign entities from their local currencies to U.S. dollars using period-end exchange rates and translate income and expense accounts at monthly average rates. The resulting translation adjustments are reported as Foreign currency translation adjustments in the Consolidated Statements of Comprehensive Income (Loss) . Except in certain uncommon circumstances, we have not recorded deferred income taxes related to our foreign currency translation adjustments. Gains and losses resulting from the re-measurement of transactions denominated in foreign currencies are recognized in Foreign currency transaction gains (losses), net in the Consolidated Statements of Operations . Income Taxes We are included in the consolidated federal income tax return of EchoStar. We recognize a provision or benefit for income taxes currently payable or receivable and for income tax amounts deferred to future periods based upon a separate return allocation method which results in income tax expense that approximates the expense that would result if we were a stand-alone entity. Deferred tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between U.S. GAAP carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are offset by valuation allowances when we determine it is more likely than not that such deferred tax assets will not be realized in the foreseeable future. We determine deferred tax assets and liabilities separately for each taxing jurisdiction and report the net amount for each jurisdiction as a non-current asset or liability in the Consolidated Balance Sheets . From time to time, we engage in transactions where the income tax consequences are uncertain. We recognize tax benefits when, in management’s judgment, a tax filing position is more likely than not to be sustained if challenged by the tax authorities. For tax positions that meet the more-likely-than-not threshold, we may not recognize a portion of a tax benefit depending on management’s assessment of how the tax position will ultimately be settled. Unrecognized tax benefits generally are netted against the deferred tax assets associated with our net operating loss carryforwards. We adjust our estimates periodically based on ongoing examinations by, and settlements with, various taxing authorities, as well as changes in tax laws, regulations and precedent. Estimates of our uncertain tax positions are made based upon prior experience and are updated in light of changes in facts and circumstances. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in liabilities which could be materially different from these estimates. In such an event, we will record additional income tax provision or benefit in the period in which such resolution occurs. We classify interest and penalties, if any, associated with our unrecognized tax benefits as a component of income tax provision or benefit. 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, at contract inception, we assess 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. Our operating leases consist primarily of leases for office space, data centers and satellite ground facilities. Our finance leases consist primarily of leases for satellite capacity. 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 including any renewal options we are reasonably certain to exercise. 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 minimum 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 are based on the original lease terms. We report operating lease right-of-use assets in Operating lease right-of-use assets and operating lease liabilities in Accrued expenses and other current liabilities and Operating lease liabilities . We report finance lease right-of-use assets in Property and equipment, net and finance lease liabilities in Current portion of long-term debt and finance lease obligations and Long-term debt and finance lease obligations, net of current portion . Minimum lease payments included in the measurement of lease liabilities consist of (i) fixed lease payments for the non-cancelable 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 elected an accounting policy to not 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, which are recognized in operating expenses as 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. Business Combinations We account for all business combinations that result in our control over another entity by using the acquisition method of accounting, which requires us to allocate the purchase price of the acquired business to the identifiable tangible and intangible assets acquired and liabilities assumed, including contingent consideration, and non-controlling interests, based upon their estimated fair values at the date of acquisition. The difference between the purchase price and the excess of the aggregate estimated fair values of assets acquired and liabilities assumed is recorded as goodwill. In determining the estimated fair values of assets acquired and liabilities assumed in a business combination, we use various recognized valuation methods including present value modeling, referenced market values, where available and cost based approaches. Valuations are performed by management or independent valuation specialists under management’s supervision, where appropriate. Accounting for business combinations requires us to make significant estimates and assumptions, especially at the acquisition date, including our estimates for intangible assets, contractual obligations assumed and contingent consideration, where applicable. While we believe the assumptions and estimates we have made are reasonable and appropriate, they are based in part on historical experience and information obtained from management of the acquired business and are inherently uncertain and subject to refinement. We believe that the estimated fair values assigned to the assets we have acquired and liabilities we have assumed are based on reasonable and appropriate assumptions. While we believe our estimates and assumptions are reasonable and appropriate, they are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets we have acquired and liabilities we have assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the estimated fair values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments would be recorded in the Consolidated Statements of Operations. In addition, results of operations of the acquired company are included in the our results from the date of the acquisition forward and include amortization expense arising from acquired intangible assets. We expense all costs as incurred related to or involved with an acquisition in Other, net , in the Consolidated Statements of Operations. Cash and Cash Equivalents We consider all liquid investments purchased with an original maturity of less than 90 days to be cash equivalents. Cash equivalents as of December 31, 2019 and 2018 primarily consisted of commercial paper, government bonds, corporate notes and money market funds. The amortized cost of these investments approximates their fair value. Marketable Investment Securities Debt Securities We account for our debt securities as available-for-sale or using the fair value option based on our investment strategy for the securities. For available-for-sale debt securities, we recognize periodic changes in the difference between fair value and amortized cost in Unrealized gains (losses) on available-for-sale securities in the Consolidated Statements of Comprehensive Income (Loss) . Gains and losses realized upon sales of available-for-sale debt securities are reclassified from other comprehensive income (loss) and recognized on the trade date in Gains (losses) on investments, net in the Consolidated Statements of Operations . We use the first-in, first-out (“FIFO”) method to determine the cost basis on sales of available-for-sale debt securities. Interest income from available-for-sale debt securities is reported in Interest income in the Consolidated Statements of Operations . We periodically evaluate our available-for-sale debt securities portfolio to determine whether any declines in the fair value of these securities are other-than-temporary. Our evaluation considers, among other things, (i) the length of time and extent to which the fair value of such security has been lower than amortized cost, (ii) market and company-specific factors related to the security and (iii) our intent and ability to hold the investment to maturity or when it recovers its value. We generally consider a decline to be other-than-temporary when (i) we intend to sell the security, (ii) it is more likely than not that we will be required to sell the security before maturity or when it recovers its value or (iii) we do not expect to recover the amortized cost of the security at maturity. Declines in the fair value of available-for-sale debt securities that are determined to be other-than-temporary are reclassified from other comprehensive income (loss) and recognized in Net income (loss) in the Consolidated Statements of Operations , thus establishing a new cost basis for the investment. From time to time we make strategic investments in marketable corporate debt securities. Generally, we elect to account for these debt securities using the fair value option because it results in consistency in accounting for unrealized gains and losses for all securities in our portfolio of strategic investments. When we elect the fair value option for investments in debt securities, we recognize periodic changes in fair value of these securities in Gains (losses) on investments, net in the Consolidated Statements of Operations . Interest income from these securities is reported in Interest income in the Consolidated Statements of Operations Equity Securities We account for our equity securities with readily determinable fair values at fair value and recognize periodic changes in the fair value in Gains (losses) on investments, net in the Consolidated Statements of Operations . We recognize dividend income on equity securities on the ex-dividend date and report such income in Other, net in the Consolidated Statements of Operations . Restricted Marketable Investment Securities Restricted marketable investment securities that are pledged as collateral for our letters of credit and surety bonds are included in Other non-current assets, net in the Consolidated Balance Sheets . Restricted marketable securities are accounted for in the same manner as marketable securities that are not restricted, but are presented differently in the Consolidated Balance Sheets due to the restrictions. Trade Accounts Receivable Trade accounts receivable includes amounts billed and currently due from customers and represents our unconditional rights to consideration arising from our performance under our customer contracts. Trade accounts receivable also includes amounts due from customers under our leasing arrangements. We make ongoing estimates relating to the collectability of our trade accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make the required payments. In determining the amount of the allowance, we consider historical levels of credit losses and make judgments about the creditworthiness of our customers based on ongoing credit evaluations. Past due trade accounts receivable balances are written off when our internal collection efforts have been unsuccessful. Bad debt expense related to our trade accounts receivable and other contract assets is included in Selling, general and administrative expenses in the Consolidated Statements of Operations . Contract Assets Contract assets represent revenue that we have recognized in advance of billing the customer and are included in Trade accounts receivable and contract assets, net or Other non-current assets, net in the Consolidated Balance Sheets based on the expected timing of customer payment. Our contract assets typically relate to our long-term contracts where we recognize revenue using the cost-based input method and the revenue recognized exceeds the amount billed to the customer. Contract Acquisition Costs Our contract acquisition costs represent incremental direct costs of obtaining a contract and consist primarily of sales incentives paid to employees and third-party representatives. When we determine that our contract acquisition costs are recoverable, we defer and amortize the costs over the contract term, or over the estimated life of the customer relationship if anticipated renewals are expected and the incentives payable upon renewal are not commensurate with the initial incentive. We amortize contract acquisition costs in proportion to the revenue to which the costs relate. We expense sales incentives as incurred if the expected amortization period is one year or less. Unamortized contract acquisition costs are included in Other non-current assets, net in the Consolidated Balance Sheets and related amortization expense is included in Selling, general and administrative expenses in the Consolidated Statements of Operations Inventory Inventory is stated at the lower of cost or net realizable value. Cost of inventory is determined using the FIFO method and consists primarily of materials, direct labor and indirect overhead incurred in the procurement and manufacturing of our products. We use standard costing methodologies in determining the cost of certain of our finished goods and work-in-process inventories. We determine net realizable value using our best estimates of future use or recovery, considering the aging and composition of inventory balances, the effects of technological and/or design changes, forecasted future product demand based on firm or near-firm customer orders and alternative means of disposition of excess or obsolete items. We recognize losses within Cost of sales - equipme |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Information About Contract Balances The following is a summary for our contract balances: As of December 31, 2019 December 31, 2018 Trade accounts receivable and contract assets, net: Sales and services $ 152,632 $ 154,415 Leasing 4,016 7,990 Total trade accounts receivable 156,648 162,405 Contract assets 63,649 55,295 Allowance for doubtful accounts (23,777 ) (16,604 ) Total trade accounts receivable and contract assets, net $ 196,520 $ 201,096 Contract liabilities: Current $ 101,060 $ 72,249 Non-current 10,572 10,133 Total contract liabilities $ 111,632 $ 82,382 For the years ended December 31, 2019 and December 31, 2018 , we recognized revenue of $65.4 million and $52.0 million , respectively, that were previously included in the contract liability balances as of December 31, 2018 and December 31, 2017, respectively. A summary of our allowance for doubtful accounts activity is as follows: Balance at Bad Debt Deductions Balance at For the years ended: December 31, 2019 $ 16,604 $ 30,027 $ (22,854 ) $ 23,777 December 31, 2018 12,027 24,984 (20,407 ) 16,604 December 31, 2017 12,752 9,551 (10,276 ) 12,027 Contract Acquisition Costs Unamortized contract acquisition costs totaled $113.6 million and $104.0 million as of December 31, 2019 and 2018 , respectively, and related amortization expense totaled $96.1 million and $83.0 million for the years ended December 31, 2019 and 2018 , respectively. Transaction Price Allocated to Remaining Performance Obligations As of December 31, 2019 , the remaining performance obligations for our customer contracts with original expected durations of more than one year was $857.7 million . We expect to recognize 47.0% of our remaining performance obligations of these contracts as revenue in the next twelve months. This amount excludes agreements with consumer customers in our Hughes segment, 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 Geographic Information The following is our revenue from customer contracts disaggregated by primary geographic market and by segment: Hughes ESS Corporate and Other Consolidated For the year ended December 31, 2019 North America $ 1,527,823 $ 16,257 $ 2,143 $ 1,546,223 South and Central America 125,458 — — 125,458 All other 199,461 — 19,019 218,480 Total revenue $ 1,852,742 $ 16,257 $ 21,162 $ 1,890,161 For the year ended December 31, 2018 North America $ 1,444,628 $ 27,231 $ 4,555 $ 1,476,414 South and Central America 101,632 — — 101,632 All other 170,268 — 18,522 188,790 Total revenue $ 1,716,528 $ 27,231 $ 23,077 $ 1,766,836 For the year ended December 31, 2017 North America $ 1,204,750 $ 30,417 $ 4,030 $ 1,239,197 South and Central America 90,000 — — 90,000 All other 183,168 — 2,677 185,845 Total revenue $ 1,477,918 $ 30,417 $ 6,707 $ 1,515,042 Nature of Products and Services The following is our revenue disaggregated by the nature of products and services and by segment: Hughes ESS Corporate and Other Consolidated For the year ended December 31, 2019 Services and other revenue: Services $ 1,535,966 $ 10,464 $ 878 $ 1,547,308 Lease revenue 50,073 5,793 20,284 76,150 Total services and other revenue 1,586,039 16,257 21,162 1,623,458 Equipment revenue: Equipment 115,052 — — 115,052 Design, development and construction services 145,646 — — 145,646 Lease revenue 6,005 — — 6,005 Total equipment revenue 266,703 — — 266,703 Total revenue $ 1,852,742 $ 16,257 $ 21,162 $ 1,890,161 For the year ended December 31, 2018 Services and other revenue: Services $ 1,313,059 $ 21,044 $ 1,351 $ 1,335,454 Lease revenue 198,059 6,187 21,726 225,972 Total services and other revenue 1,511,118 27,231 23,077 1,561,426 Equipment revenue: Equipment 119,657 — — 119,657 Design, development and construction services 85,753 — — 85,753 Total equipment revenue 205,410 — — 205,410 Total revenue $ 1,716,528 $ 27,231 $ 23,077 $ 1,766,836 Lease Revenue The following is our lease revenue by type of lease: For the year ended December 31, 2019 Sales-type lease revenue: Revenue at lease commencement $ 6,005 Interest income 784 Total sales-type lease revenue 6,789 Operating lease revenue 75,366 Total lease revenue $ 82,155 Substantially all of our net investment in sales-type leases consisted of lease receivables totaling $6.5 million as of December 31, 2019 . The following table presents future operating lease payments to be received as of December 31, 2019 : Amounts Year ending December 31, 2020 $ 36,560 2021 33,545 2022 31,666 2023 30,551 2024 28,444 After 2024 123,844 Total lease payments $ 284,610 Property and equipment, net and Depreciation and amortization included the following amounts for assets subject to operating leases: As of For the year ended December 31, 2019 Cost Accumulated Depreciation Net Depreciation Expense Customer premises equipment $ 1,458,298 $ (1,074,968 ) $ 383,330 $ 197,870 Satellites 104,620 (31,360 ) 73,260 7,495 Total $ 1,562,918 $ (1,106,328 ) $ 456,590 $ 205,365 |
Lessee Accounting
Lessee Accounting | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee Accounting | LESSEE ACCOUNTING The Consolidated Balance Sheets include the following amounts for right-of-use assets and lease liabilities as of December 31, 2019 : Amounts Right-of-use assets: Operating $ 113,399 Finance 325,826 Total right-of-use assets $ 439,225 Lease liabilities: Current: Operating $ 14,112 Finance 486 Total current 14,598 Non-current: Operating 96,879 Finance 565 Total non-current 97,444 Total lease liabilities $ 112,042 As of December 31, 2019 , we have prepaid our obligations regarding most of our finance right-of-use assets. Finance lease assets are reported net of accumulated amortization of $57.3 million as of December 31, 2019 . The following are the components of lease cost and weighted average lease terms and discount rates for operating and finance leases: For the year ended December 31, 2019 Lease cost: Operating lease cost $ 21,226 Finance lease cost: Amortization of right-of-use assets 26,489 Interest on lease liabilities 173 Total finance lease cost 26,662 Short-term lease cost 434 Variable lease cost 9,585 Total lease cost $ 57,907 As of Lease term and discount rate: Weighted average remaining lease term: Finance leases 2.1 years Operating leases 10.4 years Weighted average discount rate: Finance leases 11.9 % Operating leases 6.1 % The following table details cash flows from operating and finance leases: For the year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,654 Operating cash flows from finance leases 173 Financing cash flows from finance leases 654 We obtained right-of-use assets in exchange for lease liabilities of $8.5 million upon commencement of operating leases during the year ended December 31, 2019 . The following table presents future minimum lease payments of our lease liabilities as of December 31, 2019 : Operating Leases Finance Leases Total Year ending December 31, 2020 $ 19,907 $ 629 $ 20,536 2021 17,594 487 18,081 2022 15,379 96 15,475 2023 14,369 — 14,369 2024 13,286 — 13,286 After 2024 71,147 — 71,147 Total future minimum lease payments 151,682 1,212 152,894 Less: Interest (40,691 ) (161 ) (40,852 ) Total lease liabilities $ 110,991 $ 1,051 $ 112,042 |
Lessee Accounting | LESSEE ACCOUNTING The Consolidated Balance Sheets include the following amounts for right-of-use assets and lease liabilities as of December 31, 2019 : Amounts Right-of-use assets: Operating $ 113,399 Finance 325,826 Total right-of-use assets $ 439,225 Lease liabilities: Current: Operating $ 14,112 Finance 486 Total current 14,598 Non-current: Operating 96,879 Finance 565 Total non-current 97,444 Total lease liabilities $ 112,042 As of December 31, 2019 , we have prepaid our obligations regarding most of our finance right-of-use assets. Finance lease assets are reported net of accumulated amortization of $57.3 million as of December 31, 2019 . The following are the components of lease cost and weighted average lease terms and discount rates for operating and finance leases: For the year ended December 31, 2019 Lease cost: Operating lease cost $ 21,226 Finance lease cost: Amortization of right-of-use assets 26,489 Interest on lease liabilities 173 Total finance lease cost 26,662 Short-term lease cost 434 Variable lease cost 9,585 Total lease cost $ 57,907 As of Lease term and discount rate: Weighted average remaining lease term: Finance leases 2.1 years Operating leases 10.4 years Weighted average discount rate: Finance leases 11.9 % Operating leases 6.1 % The following table details cash flows from operating and finance leases: For the year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,654 Operating cash flows from finance leases 173 Financing cash flows from finance leases 654 We obtained right-of-use assets in exchange for lease liabilities of $8.5 million upon commencement of operating leases during the year ended December 31, 2019 . The following table presents future minimum lease payments of our lease liabilities as of December 31, 2019 : Operating Leases Finance Leases Total Year ending December 31, 2020 $ 19,907 $ 629 $ 20,536 2021 17,594 487 18,081 2022 15,379 96 15,475 2023 14,369 — 14,369 2024 13,286 — 13,286 After 2024 71,147 — 71,147 Total future minimum lease payments 151,682 1,212 152,894 Less: Interest (40,691 ) (161 ) (40,852 ) Total lease liabilities $ 110,991 $ 1,051 $ 112,042 |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS BSS Business The following table presents the financial results of our discontinued operations of the BSS Business: For the years ended December 31, 2019 2018 2017 Revenue: Services and other revenue - DISH Network $ 195,942 $ 305,229 $ 337,079 Services and other revenue - other 17,714 25,598 24,748 Total revenue 213,656 330,827 361,827 Costs and expenses: Cost of services and other 28,033 40,375 62,573 Selling, general and administrative expenses 6,903 159 43 Depreciation and amortization 85,926 124,564 126,380 Total costs and expenses 120,862 165,098 188,996 Operating income (loss) 92,794 165,729 172,831 Other income (expense): Interest expense (17,365 ) (28,552 ) (32,312 ) Total other income (expense), net (17,365 ) (28,552 ) (32,312 ) Income (loss) from discontinued operations before income taxes 75,429 137,177 140,519 Income tax benefit (provision), net (18,890 ) (27,754 ) 164,436 Net income (loss) from discontinued operations $ 56,539 $ 109,423 $ 304,955 The following table presents the aggregate carrying amounts of assets and liabilities of our discontinued operations of the BSS Business as of December 31, 2018. No assets or liabilities attributable to our discontinued operations were held by us as of December 31, 2019. As of Assets Prepaids and deposits $ 3,483 Current assets of discontinued operations 3,483 Property and equipment, net 660,270 Regulatory authorizations, net 65,615 Other non-current assets, net 16,576 Non-current assets of discontinued operations 742,461 Total assets of discontinued operations $ 745,944 Liabilities: Current portion of finance lease obligations $ 39,995 Accrued interest 1,572 Accrued expenses and other current liabilities 7,488 Current liabilities of discontinued operations 49,055 Finance lease obligations 187,002 Deferred tax liabilities, net 132,787 Other non-current liabilities 29,493 Non-current liabilities of discontinued operations 349,282 Total liabilities of discontinued operations $ 398,337 Significant supplemental cash flow information and adjustments to reconcile net income to net cash flow from operating activities for discontinued operations of the BSS business are below: For the years ended December 31, 2019 2018 2017 Operating activities: Net income (loss) from discontinued operations $ 56,539 $ 109,423 $ 304,955 Depreciation and amortization 85,926 124,564 126,380 Investing activities: Expenditures for property and equipment 510 175 699 Financing activities: Payment of finance lease obligations 27,203 35,886 32,177 Payment of in-orbit incentive obligations 3,887 4,329 4,727 Terminated or Transferred Related Party Agreements Effective September 10, 2019, the following agreements were terminated or transferred to DISH Network as part of the BSS Transaction. We have no further obligations and have neither earned additional revenue nor incurred additional expense, as applicable, under or in connection with these agreements after the consummation of the BSS Transaction. DBS Transponder Lease. EchoStar leased satellite capacity from us on eight DBS transponders on the QuetzSat-1 satellite through November 2021, after which EchoStar had certain options to renew the agreement on a year-to year basis through the end of life of the QuetzSat-1 satellite. EchoStar XXIII Launch Facilitation and Operational Control Agreement. As part of applying for the launch license for the EchoStar XXIII satellite through the UK Space Agency, we and a subsidiary of EchoStar, EchoStar Operating L.L.C. (“EOC”), entered into an agreement in March 2016 to transfer to us EOC’s launch service contracts for the EchoStar XXIII satellite and to grant us certain rights to control its in-orbit operations. EOC retained ownership of the satellite and agreed to make additional payments to us for amounts that we were required to pay under the launch service contract. In 2016, we recorded additions to Other non-current assets, net and corresponding increases in Additional paid-in capital in our Consolidated Balance Sheet to reflect EOC’s cumulative payments under the launch service contract prior to the transfer date and to reflect EOC’s funding of additional cash payments to the launch service provider. The EchoStar XXIII satellite was successfully launched in March 2017. We recorded decreases in Other non-current assets, net and Additional paid-in capital of $62.0 million , representing the carrying amount of the launch service contract at the time of launch to reflect the consumption of the contract’s economic benefits by EOC. Satellite Capacity Leased to DISH Network. We entered into certain agreements to lease satellite capacity pursuant to which we provided satellite services to DISH Network on certain satellites, as listed below, owned or leased by us. The fees for the services provided under these agreements depended, among other things, upon the orbital location of the applicable satellite, the number of transponders that provided services on the applicable satellite and the length of the service arrangements. EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV . In March 2014, we began leasing certain satellite capacity to DISH Network on the EchoStar VII satellite, the EchoStar X satellite, the EchoStar XI satellite and the EchoStar XIV satellite. EchoStar XII . DISH Network leased satellite capacity from us on the EchoStar XII satellite. EchoStar XVI . In December 2009, we entered into an agreement to lease satellite capacity to DISH Network, pursuant to which DISH Network leased satellite capacity from us on the EchoStar XVI satellite beginning in January 2013. Nimiq 5 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”). In September 2009, we entered into an agreement with DISH Network, pursuant to which DISH Network leased satellite capacity from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement (the “DISH Nimiq 5 Agreement”). Under the terms of the DISH Nimiq 5 Agreement, DISH Network made certain monthly payments to us that commenced in September 2009, when the Nimiq 5 satellite was placed into service. QuetzSat-1 Agreement. In November 2008, we entered into an agreement to lease satellite capacity from SES Latin America, which provided, among other things, for the provision by SES Latin America to us of leased satellite capacity on 32 DBS transponders on the QuetzSat-1 satellite. Concurrently, in 2008, we entered into an agreement pursuant to which DISH Network leased from us satellite capacity on 24 of the DBS transponders on the QuetzSat-1 satellite. The QuetzSat-1 satellite was launched in September 2011 and was placed into service in November 2011 at the 67.1 degree west longitude orbital location. In January 2013, the QuetzSat-1 satellite was moved to the 77 degree west longitude orbital location. In February 2013, we and DISH Network entered into an agreement pursuant to which we leased back from DISH Network certain satellite capacity on five DBS transponders on the QuetzSat-1 satellite. TT&C Agreement. Effective January 2012, we entered into a TT&C agreement pursuant to which we provided TT&C services to DISH Network, which we subsequently amended (the “2012 TT&C Agreement”). The fees for services provided under the 2012 TT&C Agreement were calculated at either: (i) a fixed fee or (ii) cost plus a fixed margin, which varied depending on the nature of the services provided. Real Estate Lease. Prior to the Share Exchange, a subsidiary of EchoStar leased to DISH Network certain space at 530 EchoStar Drive, Cheyenne, Wyoming. In connection with the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network and contributed a portion to us and we and DISH Network amended this agreement to, among other things, provide for a continued lease to DISH Network of the portion of the property we retained (the “Cheyenne Data Center”). 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 DISH Network was responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. In connection with the BSS Transaction, we transferred the Cheyenne Data Center to DISH Network. This lease does not qualify for discontinued operations treatment, and therefore the revenue from it has not been treated as discontinued operations. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS In November 2019, we consummated the Yahsat Brazil JV Transaction. The combined business provides broadband internet services and enterprise solutions in Brazil using the Telesat T19V satellite, the Eutelsat 65W satellite and Yahsat’s Al Yah 3 satellite. The results of operations related to the business we acquired in the Yahsat Brazil JV Transaction have been included in these Consolidated Financial Statements from the date of acquisition. For the year ended December 31, 2019, we incurred $1.6 million of costs associated with the closing of the Yahsat Brazil JV Transaction. All assets and liabilities acquired from Yahsat in the Yahsat Brazil JV Transaction have been recorded at fair value. The following table summarizes the preliminary allocations of purchase price: Amounts Assets: Cash and cash equivalents $ 7,858 Other current assets 7,106 Property and equipment 88,358 Regulatory authorization 4,498 Goodwill 2,128 Other long-term assets 1,502 Total assets $ 111,450 Liabilities: Accounts payable and accrued liabilities $ 6,516 Other current liabilities 2,159 Total liabilities $ 8,675 Total purchase price (1) $ 102,775 (1) Based on the value determined for the equity ownership interest issued by our Brazilian subsidiary as consideration for the business acquired by us in the Yahsat Brazil JV Transaction. The preliminary valuation of assets we acquired and liabilities we assumed in the Yahsat Brazil JV Transaction were derived using primarily unobservable Level 3 inputs, which require significant management judgment and estimation, and resulted in identifiable assets as follows: Amounts Satellite payload $ 50,738 Regulatory authorization 4,498 Total $ 55,236 The satellite payload asset and regulatory authorization were valued using an income approach and will be being amortized over seven and 11 years , respectively. We recognized goodwill in connection with the Yahsat Brazil JV Transaction of $2.1 million , including a currency translation adjustment of $0.7 million . The goodwill is attributable to expected synergies, the projected long-term business growth in current and new markets and an assembled workforce. This goodwill has been allocated entirely to our Hughes segment. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Related Tax Effects | 12 Months Ended |
Dec. 31, 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 income (loss) by component were as follows: Cumulative Foreign Currency Translation Adjustments Unrealized Gain (Loss) On Available-For-Sale Securities Other Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2017 $ (52,251 ) $ (648 ) $ 77 $ (52,822 ) Cumulative effect of accounting changes — 433 — 433 Balance, January 1, 2018 (52,251 ) (215 ) 77 (52,389 ) Other comprehensive income (loss) before reclassifications (30,549 ) (665 ) 41 (31,173 ) Amounts reclassified to net income (loss) — (212 ) — (212 ) Other comprehensive income (loss) (30,549 ) (877 ) 41 (31,385 ) Balance, December 31, 2018 (82,800 ) (1,092 ) 118 (83,774 ) Other comprehensive income (loss) before reclassifications (2,146 ) 1,817 (114 ) (443 ) Amounts reclassified to net income (loss) — (419 ) — (419 ) Other comprehensive income (loss) (2,146 ) 1,398 (114 ) (862 ) Balance, December 31, 2019 $ (84,946 ) $ 306 $ 4 $ (84,636 ) The amounts reclassified to net income (loss) related to unrealized gain (loss) on available-for-sale securities in the table above are included in Gains (losses) on investments, net in the Consolidated Statements of Operations |
Marketable Investment Securitie
Marketable Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Marketable Investment Securities | MARKETABLE INVESTMENT SECURITIES Our marketable investment securities portfolio consists of the following debt and equity instruments: As of December 31, 2019 2018 Marketable investment securities: Debt securities: Corporate bonds $ 411,706 $ 1,234,017 Other debt securities 240,888 374,106 Total debt securities 652,594 1,608,123 Equity securities 241 1,073 Total marketable investment securities $ 652,835 $ 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. The following table is a summary of our available-for-sale debt securities: Amortized Unrealized Estimated Cost Gains Losses Fair Value As of December 31, 2019 Corporate bonds $ 411,312 $ 395 $ (1 ) $ 411,706 Other debt securities 240,887 1 — 240,888 Total available-for-sale debt securities $ 652,199 $ 396 $ (1 ) $ 652,594 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 December 31, 2019 , we have $652.6 million of available-for-sale debt securities with contractual maturities of one year or less and zero Equity Securities Our marketable equity securities consist primarily of shares of common stock of public companies. Prior to January 1, 2018, we classified our marketable equity securities as available-for-sale or trading securities, depending on our investment strategy for the securities. As of December 31, 2017, our marketable equity securities consisted of available-for-sale securities with a fair value of $1.1 million , reflecting an adjusted cost basis of $1.5 million and unrealized losses of $0.4 million which were recognized as Unrealized gains (losses) on available-for-sale securities in the Consolidated Statements of Comprehensive Income (Loss) . Substantially all unrealized losses on our available-for-sale securities related to securities that were in a continuous loss position for less than 12 months. We recognized a $3.3 million other-than-temporary impairment during the year ended December 31, 2017 on one of our available-for-sale securities which had experienced a decline in market value as a result of adverse developments. Effective January 1, 2018, we began accounting for investments in equity securities at their fair value and recognizing unrealized gains and losses in Gains (losses) on investments, net in the Consolidated Statements of Operations . Gains (losses) on investments, net in the Consolidated Statements of Operations related to equity securities that we held were $0.8 million of net loss and de minimis of net loss for the years ended December 31, 2019 and 2018 , respectively. The fair value of our equity securities was $0.2 million and $1.1 million as of December 31, 2019 and 2018 Sales of Available-for-Sale Securities Proceeds from sales of our available-for-sale securities were $311.8 million , $50.0 million and $8.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. We recognized as a result of such sales $0.4 million of gains, $0.2 million of gains and zero for the years ended December 31, 2019 , 2018 and 2017 Fair Value Measurements Our marketable investment securities are summarized in the table below. Certain of our investments in debt and equity instruments have historically experienced volatility. As of December 31, 2019 and 2018 , we did not have any investments that were categorized within Level 3 of the fair value hierarchy. As of December 31, 2019 2018 Level 1 Level 2 Total Level 1 Level 2 Total Debt securities: Corporate bonds $ — $ 411,706 $ 411,706 $ — $ 1,234,017 $ 1,234,017 Other debt securities — 240,888 240,888 — 374,106 374,106 Total debt securities — 652,594 652,594 — 1,608,123 1,608,123 Equity securities 241 — 241 1,073 — 1,073 Total marketable investment securities $ 241 $ 652,594 $ 652,835 $ 1,073 $ 1,608,123 $ 1,609,196 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2019 | |
Inventory, Net [Abstract] | |
Inventory | INVENTORY Inventory consists of the following: As of December 31, 2019 2018 Raw materials $ 4,240 $ 4,856 Work-in-process 6,979 13,901 Finished goods 68,255 56,622 Total inventory $ 79,474 $ 75,379 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Our property and equipment,net consisted of the following: As of December 31, 2019 2018 Property and equipment, net: Satellites, net $ 1,127,521 $ 1,209,930 Other property and equipment, net 730,060 711,981 Total property and equipment, net $ 1,857,581 $ 1,921,911 Satellites As of December 31, 2019 , our operating satellite fleet consisted of eight satellites , five of which are owned and three of which are leased. They are all in geosynchronous orbit, approximately 22,300 miles above the equator. In connection with the BSS Transaction, six of our previously owned satellites and the leases for two of our previously leased satellites were transferred to DISH Network (see Note 1. Organization and Business Activities and Note 5. Discontinued Operations ). Satellite Segment Launch Date Nominal Degree Orbital Location (Longitude) Depreciable Life (In Years) Owned: SPACEWAY 3 (1) Hughes August 2007 95 W 10 EchoStar XVII Hughes July 2012 107 W 15 EchoStar XIX Hughes December 2016 97.1 W 15 Al Yah 3 (2) Hughes January 2018 20 W 7 EchoStar IX (3) ESS August 2003 121 W 12 Finance 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 the Hughes Acquisition. (2) Upon consummation of our joint venture with Yahsat in Brazil in November 2019, we acquired the Brazilian Ka-band payload on this satellite. Depreciable life represents the remaining useful life as of November 2019. (3) We own the Ka-band and Ku-band payloads on this satellite. Satellites, net consisted of the following: Depreciable Life (In Years) As of December 31, 2019 2018 Satellites, net: Satellites - owned 7 to 15 $ 1,516,006 $ 1,459,955 Satellites - acquired under finance leases 10 to 15 381,162 385,592 Total satellites 1,897,168 1,845,547 Accumulated depreciation (769,647 ) (635,617 ) Total satellites, net $ 1,127,521 $ 1,209,930 As of December 31, 2019 and 2018 , accumulated depreciation included amounts for satellites acquired under finance leases of $56.4 million and $31.5 million Depreciation and amortization expense and capitalized interest associated with our satellites consisted of the following: For the years ended December 31, 2019 2018 2017 Depreciation and amortization expense: Satellites - owned $ 110,685 $ 104,967 $ 89,728 Satellites acquired under finance leases 25,755 20,269 9,962 Total depreciation and amortization expense $ 136,440 $ 125,236 $ 99,690 Capitalized interest $ 1,019 $ 6,179 $ 22,828 Satellite Anomalies and Impairments We are not aware of any anomalies with respect to our owned or leased satellites or payloads that have had any significant adverse effect on their remaining useful lives, the commercial operation of the satellites or payloads or our operating results or financial position as of and for the year ended December 31, 2019 . Satellite Insurance We generally do not carry in-orbit insurance on our satellites or payloads 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 and our joint venture agreements with Yahsat, we are required, subject to certain limitations on coverage, to maintain only for the SPACEWAY 3 satellite, the EchoStar XVII satellite and the Al Yah 3 Brazilian payload, insurance or other contractual arrangements during the commercial in-orbit service of such satellite. We were previously required 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 and payloads, either in orbit or under construction, are not covered by launch or in-orbit insurance or other contractual arrangements. We will continue to assess circumstances going forward and make insurance-related decisions on a case-by-case basis. Fair Value of In-Orbit Incentives As of December 31, 2019 and 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 $57.0 million and $57.9 million Depreciable Life (In Years) As of December 31, 2019 2018 Other property and equipment, net: Land — $ 13,328 $ 13,366 Buildings and improvements 1 to 40 73,692 114,153 Furniture, fixtures, equipment and other 1 to 12 783,727 725,924 Customer premises equipment 2 to 4 1,377,914 1,159,977 Construction in progress 50,864 28,087 Total other property and equipment 2,299,525 2,041,507 Accumulated depreciation (1,569,465 ) (1,329,526 ) Other property and equipment, net $ 730,060 $ 711,981 Depreciation expense associated with our other property and equipment consisted of the following: For the years ended December 31, 2019 2018 2017 Other property and equipment depreciation expense: Buildings and improvements $ 4,409 $ 9,715 $ 15,249 Furniture, fixtures, equipment and other 89,868 79,500 67,162 Customer premises equipment 194,906 174,749 146,562 Total depreciation expense $ 289,183 $ 263,964 $ 228,973 |
Regulatory Authorizations
Regulatory Authorizations | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Regulatory Authorizations | REGULATORY AUTHORIZATIONS Our regulatory authorizations consisted of the following: Finite lived Cost Accumulated Amortization Total Indefinite lived Total As of December 31, 2016 $ — $ — $ — $ 406,043 $ 406,043 Impairment — — — (6,000 ) (6,000 ) As of December 31, 2017 — — — 400,043 400,043 As of December 31, 2018 — — — 400,043 400,043 Additions 12,833 — 12,833 (43 ) 12,790 Amortization expense — (161 ) (161 ) — (161 ) Currency translation adjustment (309 ) — (309 ) — (309 ) As of December 31, 2019 $ 12,524 $ (161 ) $ 12,363 $ 400,000 $ 412,363 Weighted average useful life 14 years Finite Lived Assets In November 2019, we were granted an S-band spectrum license for terrestrial rights in Mexico for $7.9 million . The acquired asset is subject to amortization over a period of 15 years . Upon consummation of our joint venture with Yahsat in Brazil in November 2019, we acquired Ka-band spectrum rights for $4.5 million , which are subject to amortization over a period of 11 years . Future Amortization As of December 31, 2019 , our estimated future amortization of our regulatory authorizations with finite lives was as follows: Amount For the years ending December 31, 2020 $ 942 2021 942 2022 942 2023 942 2024 942 Thereafter 7,653 Total $ 12,363 Indefinite Lived Assets As of December 31, 2016, our regulatory authorizations with indefinite lives included $6.0 million for contractual rights to utilize certain frequencies, in addition to those specified in the Brazilian license, at the 45 degree west longitude orbital location acquired in 2012. In 2017, we determined that certain actions required to utilize the frequencies had become impractical with the passage of time and, as a result of these circumstances, we determined that the fair value of those contractual rights was de minimis and we recognized a $6.0 million impairment loss. |
Other Intangible Assets (Notes)
Other Intangible Assets (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
OTHER INTANGIBLE ASSETS | OTHER INTANGIBLE ASSETS Our other intangible assets consisted of the following: Customer Relationships Patents Trademarks and Licenses Total Cost: As of December 31, 2016 $ 270,300 $ 51,417 $ 29,700 $ 351,417 As of December 31, 2017 270,300 51,417 29,700 351,417 Write-off — (17 ) — (17 ) As of December 31, 2018 270,300 51,400 29,700 351,400 As of December 31, 2019 $ 270,300 $ 51,400 $ 29,700 $ 351,400 Accumulated amortization: As of December 31, 2016 $ (214,544 ) $ (47,848 ) $ (8,291 ) $ (270,683 ) Amortization expense (17,098 ) (3,569 ) (1,485 ) $ (22,152 ) As of December 31, 2017 (231,642 ) (51,417 ) (9,776 ) (292,835 ) Amortization expense (13,145 ) — (1,485 ) (14,630 ) Write-off — 17 — 17 As of December 31, 2018 (244,787 ) (51,400 ) (11,261 ) (307,448 ) Amortization expense (13,146 ) — (1,485 ) (14,631 ) As of December 31, 2019 $ (257,933 ) $ (51,400 ) $ (12,746 ) $ (322,079 ) Carrying amount: As of December 31, 2016 $ 55,756 $ 3,569 $ 21,409 $ 80,734 As of December 31, 2017 $ 38,658 $ — $ 19,924 $ 58,582 As of December 31, 2018 $ 25,513 $ — $ 18,439 $ 43,952 As of December 31, 2019 $ 12,367 $ — $ 16,954 $ 29,321 Weighted average useful life 8 years 6 years 20 years Future Amortization As of December 31, 2019 , our estimated future amortization of other intangible assets was as follows: Amount For the years ending December 31, 2020 $ 10,981 2021 4,356 2022 1,485 2023 1,485 2024 1,485 Thereafter 9,529 Total $ 29,321 |
Other Investments (Notes)
Other Investments (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Other Investments | OTHER INVESTMENTS Our Other investments, net consisted of the following: As of December 31, 2019 2018 Other investments, net: Equity method investments $ 102,689 $ 110,931 Other equity investments 7,351 15,438 Total other investments, net $ 110,040 $ 126,369 Equity Method Investments Deluxe/EchoStar LLC We own 50% of Deluxe, a joint venture that we entered into in 2010 to build an advanced digital cinema satellite distribution network targeting delivery to digitally equipped theaters in the U.S. and Canada. We recognized revenue from Deluxe for transponder services and the sale of broadband equipment of $4.4 million , $4.4 million and $4.9 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 and 2018 , we had trade accounts receivable from Deluxe of $0.6 million and $0.8 million , respectively. Broadband Connectivity Solutions In August 2018, we entered into an agreement with Yahsat to establish a new entity, BCS, to provide commercial Ka-band satellite broadband services across Africa, the Middle East and southwest Asia operating over Yahsat's Al Yah 2 and Al Yah 3 Ka-band satellites. The transaction was consummated in December 2018 when we invested $100.0 million in cash in exchange for a 20% interest in BCS. Under the terms of the agreement, we may also acquire, for further cash investments, additional ownership interests in BCS in the future provided certain conditions are met. We supply network operations and management services and equipment to BCS. We recognized revenue from BCS for such services and equipment of $9.0 million and $0.7 million for the years ended December 31, 2019 and 2018 , respectively. As of December 31, 2019 and 2018 , we had $5.2 million and $3.4 million , respectively, of trade accounts receivable from BCS. During the fourth quarter ended December 31, 2019, we began recognizing equity in earnings of certain of our equity method investments on a three-month lag so for the year ended December 31, 2019, we have nine months of activity recorded in these Consolidated Financial Statements. The impact of the change was immaterial to these Consolidated Financial Statements. As of December 31, 2019 , our aggregate investment in our equity method investees exceeded our proportionate share of the net assets of the investees by $19.0 million . This difference is attributable to goodwill recorded at acquisition . We recorded cash distributions from our investments of $2.7 million , $10.0 million and $19.0 million , respectively, for the years ended December 31, 2019 , 2018 and 2017 . These cash distributions were determined to be a return on investment and reported in Net cash flows from operating activities in the Consolidated Statements of Cash Flows . Additionally, we recorded an additional dividend from our investments of $2.3 million for the year ended December 31, 2019 that was considered a return of investment and reported in Net cash flows from investing activities in the Consolidated Statements of Cash Flows |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Debt and Lease Obligation [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: Effective Interest Rate As of December 31, 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value 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% 750,000 825,308 750,000 695,865 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 963,783 900,000 934,902 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 833,903 750,000 696,353 Less: Unamortized debt issuance costs (10,832 ) — (16,757 ) — Subtotal 2,389,168 $ 2,622,994 3,304,079 $ 3,259,816 Finance lease obligations 1,051 1,705 Total debt and finance lease obligations 2,390,219 3,305,784 Less: Current portion (486 ) (919,582 ) Long-term debt and finance lease obligations, net of current portion $ 2,389,733 $ 2,386,202 2019 Senior Secured Notes and 2021 Senior Unsecured Notes On June 1, 2011, we issued $1.1 billion aggregate principal amount of 6 1/2% Senior Secured Notes due 2019 (the “2019 Senior Secured Notes”) at an issue price of 100.0% , pursuant to a Secured Indenture dated June 1, 2011. During the years ended December 31, 2019 and 2018 , we repurchased $11.5 million and $69.2 million , respectively, of the 2019 Senior Secured Notes in the open market and recorded losses on the repurchase of $0.1 million and $1.0 million , respectively. The 2019 Senior Secured Notes matured on June 15, 2019. On June 1, 2011, we also issued $900.0 million aggregate principal amount of 7 5/8% Senior Unsecured Notes due 2021 (the “2021 Senior Unsecured Notes,”) at an issue price of 100.0% , pursuant to an Unsecured Indenture dated June 1, 2011 (the “2011 Indenture”). The 2021 Senior Unsecured Notes mature on June 15, 2021. Interest accrues at an annual rate of 7 5/8% and is payable semi-annually in cash, in arrears on June 15 and December 15 of each year. 2026 Senior Secured Notes and 2026 Senior Unsecured Notes On July 27, 2016, we issued $750.0 million aggregate principal amount of 5 1/4% Senior Secured Notes due 2026 (the “2026 Senior Secured Notes”) at an issue price of 100.0% , pursuant to an indenture dated July 27, 2016 (the “2016 Secured Indenture”) and $750.0 million aggregate principal amount of 6 5/8% Senior Unsecured Notes due 2026 (the “2026 Senior Unsecured Notes” and, together with the 2021 Senior Unsecured Notes, the “Unsecured Notes”) at an issue price of 100.0% , pursuant to an indenture dated July 27, 2016 (together with the 2011 Indenture and the 2016 Secured Indenture, the “Indentures”). The 2021 Senior Unsecured Notes, the 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes are referred to collectively as the “Notes” and individually as a series of the Notes. The 2026 Senior Secured Notes and the 2026 Senior Unsecured Notes (collectively, the “2026 Notes”) mature on August 1, 2026. Interest on the 2026 Senior Secured Notes accrue at an annual rate of 5 1/4% and interest on the 2026 Senior Unsecured Notes accrues at an annual rate of 6 5/8%. Interest on the 2026 Senior Secured Notes is payable semi-annually in cash, in arrears, on February 1 and August 1 of each year. Additional Information Relating to the Notes Each series of the Notes is redeemable, in whole or in part, at any time at a redemption price equal to 100.0% of the principal amount thereof plus a “make-whole” premium, as defined in the applicable Indenture, together with accrued and unpaid interest, if any, to the date of redemption. We may also redeem up to 10.0% of the outstanding 2026 Senior Notes per year prior to August 1, 2020 at a redemption price equal to 103.0% of the principal amount thereof plus accrued and unpaid interest as of the date of redemption. The 2026 Senior Secured Notes are: • our secured obligations ; • secured by security interests in substantially all of our and certain of our subsidiaries’ existing and future tangible and intangible assets of on a first priority basis, subject to certain exceptions; • effectively junior to our obligations that are secured by assets that are not part of the collateral that secures the 2026 Senior Secured Notes, in each case, to the extent of the value of the collateral securing such obligations; • effectively senior to our existing and future unsecured obligations to the extent of the value of the collateral securing the 2026 Senior Secured Notes, after giving effect to permitted liens as provided in the 2016 Secured Indenture; • senior in right of payment to all of our existing and future obligations that are expressly subordinated to the 2026 Senior Secured Notes; • structurally junior to any existing and future obligations of any of our subsidiaries that do not guarantee the 2026 Senior Secured Notes; and • unconditionally guaranteed, jointly and severally, on a general senior secured basis by certain of our subsidiaries, which guarantees rank equally with all of the guarantors’ existing and future unsubordinated indebtedness and effectively senior to such guarantors’ existing and future obligations to the extent of the value of the assets securing the 2026 Senior Secured Notes. The Unsecured Notes are: • our unsecured senior obligations ; • ranked equally with all existing and future unsubordinated indebtedness (including as between the 2021 Senior Unsecured Notes and the 2026 Senior Unsecured Notes) and effectively junior to any secured indebtedness up to the value of the assets securing such indebtedness; • effectively junior to our obligations that are secured to the extent of the value of the collateral securing such obligations; • senior in right of payment to all our existing and future obligations that are expressly subordinated to the respective Unsecured Notes; • structurally junior to any existing and future obligations of any of our subsidiaries that do not guarantee the respective Unsecured Notes; and • unconditionally guaranteed, jointly and severally, on a general senior secured basis by certain of our subsidiaries, which guarantees rank equally with all of the guarantors’ existing and future unsubordinated indebtedness, and effectively junior to any secured indebtedness of the guarantors up to the value of the assets securing such indebtedness. Subject to certain exceptions, the Indentures contain restrictive covenants that, among other things, impose limitations on our ability and, in certain instances, the ability of certain of our subsidiaries to: • incur additional debt; • pay dividends or make distributions on our or their capital stock or repurchase our or their capital stock; • make certain investments; • create liens or enter into sale and leaseback transactions; • enter into transactions with affiliates; • merge or consolidate with another company; • transfer and sell assets; and • allow to exist certain restrictions on our or their ability to pay dividends, make distributions, make other payments, or transfer assets. In the event of a Change of Control, as defined in the respective Indentures, we would be required to make an offer to repurchase all or any part of a holder’s Notes at a purchase price equal to 101.0% of the aggregate principal amount thereof, together with accrued and unpaid interest to the date of repurchase. The Indentures provide for customary events of default for each series of the Notes, including, among other things, non-payment, breach of the covenants in the applicable Indentures, payment defaults or acceleration of other indebtedness, a failure to pay certain judgments and certain events of bankruptcy, insolvency and reorganization. If any event of default occurs and is continuing with respect to any series of the Notes, the trustee or the holders of at least 25.0% in principal amount of the then outstanding Notes of such series may declare all the Notes of such series to be due and payable immediately, together with any accrued and unpaid interest. Debt Issuance Costs For the years ended December 31, 2019 , 2018 and 2017 , we amortized $5.9 million , $7.9 million and $7.4 million respectively, of debt issuance costs incurred for all debt issuances, which are included in Interest expense, net of amounts capitalized in the Consolidated Statements of Operations . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of Income (loss) from continuing operations before income taxes in the Consolidated Statements of Operations are as follows: For the years ended December 31, 2019 2018 2017 Domestic $ 68,574 $ 40,385 $ (73,572 ) Foreign (154,395 ) (33,850 ) (27,596 ) Income (loss) from continuing operations before income taxes $ (85,821 ) $ 6,535 $ (101,168 ) The components of Income tax benefit (provision), net , in the Consolidated Statements of Operations are as follows: For the years ended December 31, 2019 2018 2017 Current benefit (provision), net: Federal $ (4,525 ) $ (914 ) $ (638 ) State 2,584 5,081 (2,753 ) Foreign (1,415 ) (1,894 ) (2,020 ) Total current benefit (provision), net (3,356 ) 2,273 (5,411 ) Deferred benefit (provision), net: Federal (1,292 ) (3,460 ) 108,144 State (10,370 ) (17,656 ) (3,699 ) Foreign 3,423 228 (5,268 ) Total deferred benefit (provision), net (8,239 ) (20,888 ) 99,177 Total income tax benefit (provision), net $ (11,595 ) $ (18,615 ) $ 93,766 Our actual tax provisions reconcile to the amounts computed by applying the statutory federal tax rate to Income (loss) from continuing operations before income taxes in the Consolidated Statements of Operations as follows: For the years ended December 31, 2019 2018 2017 Statutory rate $ 18,023 $ (1,372 ) $ 35,409 State income taxes, net of federal provision (benefit) (4,148 ) (13,642 ) (3,788 ) Permanent differences (5,888 ) (976 ) 911 Tax credits 5,137 4,935 3,239 Valuation allowance (35,974 ) (11,583 ) (17,325 ) Enactment of Tax Cuts and Job Act of 2017 — — 75,617 Rates different than statutory 11,182 4,051 (358 ) Other 73 (28 ) 61 Total income tax benefit (provision), net $ (11,595 ) $ (18,615 ) $ 93,766 The components of our deferred tax assets and liabilities are as follows: As of December 31, 2019 2018 Deferred tax assets: Net operating losses, credit and other carryforwards $ 92,304 $ 103,230 Unrealized losses on investments, net 931 6,997 Accrued expenses 20,079 21,622 Stock-based compensation 5,096 1,613 Other assets 25,952 7,707 Total deferred tax assets 144,362 141,169 Valuation allowance (102,201 ) (49,183 ) Deferred tax assets after valuation allowance 42,161 91,986 Deferred tax liabilities: Depreciation and amortization (414,046 ) (443,063 ) Other liabilities (1,216 ) (1,290 ) Total deferred tax liabilities (415,262 ) (444,353 ) Total net deferred tax liabilities $ (373,101 ) $ (352,367 ) Net deferred tax asset foreign jurisdiction $ 7,215 $ 3,581 Net deferred tax liability domestic (380,316 ) (355,948 ) Total net deferred tax liabilities $ (373,101 ) $ (352,367 ) Overall, our net deferred tax assets were offset by a valuation allowance of $102.2 million and $49.2 million as of December 31, 2019 and 2018 , respectively. The change in the valuation allowance primarily relates to an increase in the net operating loss carryforwards of certain foreign subsidiaries and a decrease associated with unrealized gains that are capital in nature. Tax benefits of net operating loss and tax credit carryforwards are evaluated on an ongoing basis, including a review of historical and projected future operating results, the eligible carryforward period, and other circumstances. As of December 31, 2019 , we had foreign net operating loss carryforwards of $228.1 million . As of December 31, 2019 , we have tax credit carryforwards of $8.4 million and $2.3 million for federal and state income tax purposes, respectively. If not utilized, the federal tax credit carryforwards will begin to expire in 2024 and the state tax credit carryforwards begin to expire in 2020. As of December 31, 2019 , we had undistributed earnings attributable to foreign subsidiaries for which no provision for U.S. income taxes or foreign withholding taxes has been made because it is expected that such earnings will be reinvested outside the U.S. indefinitely. It is not practicable to determine the amount of the unrecognized deferred tax liability at this time. However, due to the one-time transition tax on the deemed repatriation of post-1986 undistributed foreign subsidiary earnings, the majority of previously unremitted earnings have now been subjected to U.S. federal income tax. As of December 31, 2019 and 2018 , we had net deferred tax assets related to our foreign subsidiaries of $7.2 million and $3.6 million , respectively, which were recorded in Other non-current assets, net in the Consolidated Balance Sheets Accounting for the U.S. Tax Cuts and Jobs Act The Tax Cuts and Jobs Act of 2017 (the “2017 Tax Act”) was enacted in December 2017 and has significantly impacted our effective tax rate and the tax benefit calculated for the year ended December 31, 2017. For the year ended December 31, 2017, we recorded a benefit of $75.6 million to reflect the change in the value of our deferred tax assets and liabilities resulting from the change in the federal corporate tax rate from 35% to 21% . For the year ended December 31, 2018, we recorded an additional tax benefit of $0.8 million and did not record any valuation allowances on foreign tax credit carryforwards. We account for the effects, if any, of the global intangible low-taxed income provisions (“GILTI”) of the 2017 Tax Act as incurred. We did not record a tax provision related to the tax on deemed mandatory repatriation of our unrepatriated foreign earnings for the year ended December 31, 2017. Accounting for Uncertainty in Income Taxes In addition to filing U.S. federal income tax returns with EchoStar, we file income tax returns in all states that impose an income tax. As of December 31, 2019 , we are not currently under a U.S. federal income tax examination. However, the IRS could perform tax examinations on years as early as tax year 2008. We are also subject to frequent state income tax audits and have open state examinations on years as early as 2008. We also file income tax returns in the United Kingdom, Brazil, India and a number of other foreign jurisdictions. We generally are open to income tax examination in these foreign jurisdictions for taxable years beginning in 2003. As of December 31, 2019 , we are currently being audited by the Indian tax authorities for fiscal years 2003 through 2012. We have no other on-going significant income tax examinations in process in our foreign jurisdictions. The reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows: For the years ended December 31, 2019 2018 2017 Unrecognized tax benefit balance as of beginning of period: $ 7,866 $ 7,950 $ 7,057 Additions based on tax positions related to the current year — 572 656 Additions based on tax positions related to prior years — — 237 Reductions based on tax positions related to prior years — (656 ) — Balance as of end of period $ 7,866 $ 7,866 $ 7,950 As of December 31, 2019 and 2018 , we had $7.9 million and $7.9 million , respectively, of unrecognized income tax benefits, all of which, if recognized, would affect our effective tax rate. We do not believe that the total amount of unrecognized income tax benefits will significantly increase or decrease within the next twelve months due to the lapse of statute of limitations or settlement with tax authorities. For the years ended December 31, 2019 , 2018 and 2017 , our income tax provision included an insignificant amount of interest and penalties. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Employee Stock Purchase Plan EchoStar has an employee stock purchase plan (the “ESPP”), under which it is authorized to issue 5.0 million shares of EchoStar’s Class A common stock. As of December 31, 2019 , EchoStar had approximately 2.2 million shares of Class A common stock which remain available for issuance under the ESPP. Generally, all full-time employees who have been employed by EchoStar or its subsidiaries for at least one calendar quarter are eligible to participate in the ESPP. Employee stock purchases are made through payroll deductions. Under the terms of the ESPP, each employee’s deductions are limited so that the maximum they may purchase under the ESPP is $25,000 in fair value of Class A common stock per year. Stock purchases are made on the last business day of each calendar quarter at 85.0% of the closing price of EchoStar’s Class A common stock on that date. For the years ended December 31, 2019 , 2018 and 2017 , employee purchases of EchoStar’s Class A common stock through the ESPP totaled approximately 280,000 shares, 235,000 shares and 169,000 shares, respectively. 401(k) Employee Savings Plans Under the EchoStar 401(k) Plan (“the Plan”), eligible employees are entitled to contribute up to 75.0% of their eligible compensation, on a pre-tax and/or after-tax basis, subject to the maximum contribution limit provided by the Internal Revenue Code of 1986, as amended (the “Code”). All employee contributions to the Plan are immediately vested. EchoStar matches 50 cent s on the dollar for the first 6.0% of each employee’s salary contributions to the Plan for a total of 3.0% match on a pre-tax basis up to a maximum of $7,500 annually. EchoStar’s match is calculated each pay period there is an employee contribution. In addition, EchoStar may make an annual discretionary contribution to the Plan to be made in cash or EchoStar’s stock. EchoStar’s contributions under the Plan vest at 20.0% per year and are 100.0% vested after an eligible employee has completed five years of employment. Forfeitures of unvested participant balances may be used to fund matching and discretionary contributions. During the years ended December 31, 2019 , 2018 and 2017 , we recognized matching contributions, net of forfeitures, of $5.1 million , $5.0 million and $5.1 million , respectively, and EchoStar made discretionary contributions to our employees of shares of its Class A common stock, net of forfeitures, with a fair value of $6.7 million , $7.6 million and $6.7 million |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Commitments The following table summarizes our contractual obligations from our continuing operations as of December 31, 2019 : Payments Due in the Year Ending December 31, Total 2020 2021 2022 2023 2024 Thereafter Long-term debt $ 2,400,000 $ — $ 900,000 $ — $ — $ — $ 1,500,000 Finance lease obligations 1,212 629 487 96 — — — Interest on long-term debt 726,377 157,688 123,375 89,063 89,063 89,063 178,125 Satellite-related obligations 256,869 124,334 24,078 11,365 11,241 11,969 73,882 Operating lease obligations 151,682 19,907 17,594 15,379 14,369 13,286 71,147 Total $ 3,536,140 $ 302,558 $ 1,065,534 $ 115,903 $ 114,673 $ 114,318 $ 1,823,154 The table above does not include amounts related to deferred tax liabilities, unrecognized tax positions and certain other amounts recorded in our non-current liabilities as the timing of any payments is uncertain. The table also excludes long-term deferred revenue and other long-term liabilities that do not require future cash payments. Additionally, our satellite-related obligations primarily include payments pursuant to agreements for payments pursuant to regulatory authorizations, non-lease costs associated with our finance lease satellites, in-orbit incentives relating to certain satellites and commitments for satellite service arrangements. We incurred satellite-related expenses of $53.2 million , $74.8 million and $91.6 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. In certain circumstances, the dates on which we are obligated to pay our contractual obligations could change. 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 EchoStar will generally only be liable for its and its subsidiaries’ 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 and certain of its and our subsidiaries 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 proceedings, 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, motions or other proceedings; (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, tribunal, other body 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 $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, we recorded an accrual of $33.7 million . In December 2019, we entered into a comprehensive settlement agreement with Elbit pursuant to which we paid a total of $33.0 million in satisfaction of all amounts relating to these matters and all open proceedings, including appeals, were 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; our officer, David J. Rayner; EchoStar ; HSS; 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 our controlling stockholder, breached fiduciary duties to EchoStar’s minority stockholders by structuring the BSS Transaction with inadequate consideration and improperly influencing our and EchoStar’s boards 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. On November 11, 2019, we and the other defendants filed separate motions to dismiss plaintiff’s amended complaint and during a hearing on January 13, 2020 the court denied these motions. On February 10, 2020, we and the other defendants filed answers to the amended complaint. 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. 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. On October 24, 2019, the Supreme Court of India (“Supreme Court”) issued an order (the “Order”) affirming the license fee assessments imposed by the DOT, including its imposition of interest, penalties and interest on the penalties, but without indicating the amount HCPIL is required to pay the DOT, and ordering payment by January 23, 2020. On November 23, 2019, we and other telecommunication service providers filed a petition asking the Supreme Court to reconsider its decision. The petition was denied on January 20, 2020. On January 22, 2020, we and other telecommunication service providers filed an application requesting that the Supreme Court modify the Order to permit the DOT to calculate the final amount due and extend HCPIL’s and the other telecommunication service providers’ payment deadline. On February 14, 2020, the Supreme Court denied this application and directed us and the other telecommunication service providers to explain why the Supreme Court should not initiate contempt proceedings for failure to pay the amounts due. The Supreme Court further ordered the parties to appear on March 17, 2020. To date, the DOT has issued HCIPL written assessments totaling $28.4 million , comprised of $4.0 million for additional license fees, $4.1 million f or penalties and $20.3 million for interest and interest on penalties. It is possible that the DOT’s assessments may be modified depending on the methodology it uses to calculate interest over the period in question. As a result of the Order and the Supreme Court’s February 14th decision and using the DOT’s current methodology as reflected in the assessments we have received, we have recorded an accrual of $80.2 million as of December 31, 2019 , comprised of $4.0 million for additional license fees, $4.1 million for penalties and $72.1 million f or interest and interest on penalties. We had recorded an accrual of $1.3 million as of December 31, 2018. Any eventual payments made with respect to the ultimate outcome of this matter may be different from our accrual 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 | 12 Months Ended |
Dec. 31, 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 operate in two business segments, Hughes and ESS, as described in Note 1. Organization and Business Activities . 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 non-controlling interests, or EBITDA. Total assets by segment have not been reported herein because the information is not provided to our CODM on a regular basis. The following table presents revenue, EBITDA and capital expenditures for each of our operating segments. Capital expenditures are net of refunds and other receipts related to property and equipment. Hughes ESS Corporate and Other Consolidated Total For the year ended December 31, 2019 External revenue $ 1,852,742 $ 15,131 $ 22,288 $ 1,890,161 Intersegment revenue — 1,126 (1,126 ) — Total revenue $ 1,852,742 $ 16,257 $ 21,162 $ 1,890,161 EBITDA $ 625,660 $ 6,994 $ (27,855 ) $ 604,799 Capital expenditures $ 308,781 $ — $ — $ 308,781 For the year ended December 31, 2018 External revenue $ 1,716,169 $ 27,009 $ 23,658 $ 1,766,836 Intersegment revenue 359 222 (581 ) — Total revenue $ 1,716,528 $ 27,231 $ 23,077 $ 1,766,836 EBITDA $ 601,319 $ 17,764 $ (15,473 ) $ 603,610 Capital expenditures $ 390,108 $ (76,757 ) $ 15 $ 313,366 For the year ended December 31, 2017 External revenue $ 1,476,131 $ 30,405 $ 8,506 $ 1,515,042 Intersegment revenue 1,787 12 (1,799 ) — Total revenue $ 1,477,918 $ 30,417 $ 6,707 $ 1,515,042 EBITDA $ 475,222 $ 16,074 $ (42,415 ) $ 448,881 Capital expenditures $ 376,502 $ 20,026 $ — $ 396,528 The following table reconciles total consolidated EBITDA to reported Income (loss) from continuing operations before income taxes in the Consolidated Statements of Operations : For the Years Ended December 31, 2019 2018 2017 EBITDA $ 604,799 $ 603,610 $ 448,881 Interest income 57,730 59,104 31,952 Interest expense, net of amounts capitalized (272,218 ) (231,169 ) (213,166 ) Depreciation and amortization (464,797 ) (426,852 ) (370,418 ) Net income (loss) attributable to non-controlling interests (11,335 ) 1,842 1,583 Income (loss) from continuing operations before income taxes $ (85,821 ) $ 6,535 $ (101,168 ) Geographic Information The following table summarizes total long-lived assets attributed to the North America, South and Central America and other foreign locations: As of December 31, 2019 2018 Long-lived assets: North America $ 2,419,750 $ 2,585,421 South and Central America 310,172 192,860 All other 76,296 91,798 Total long-lived assets $ 2,806,218 $ 2,870,079 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) Our quarterly results of operations are summarized as follows: For the Three Months Ended December 31 September 30 June 30 March 31 Year Ended December 31, 2019 Total revenue $ 500,600 473,121 $ 461,241 $ 455,199 Operating income (loss) 45,088 45,433 13,962 46,469 Net income (loss) (62,828 ) (2,690 ) 1,609 23,032 Net income (loss) from continuing operations attributable to HSS (51,658 ) (14,275 ) (19,650 ) (498 ) Net income (loss) attributable to HSS (52,852 ) 107 977 22,226 Year Ended December 31, 2018 Total revenue $ 455,113 $ 457,650 $ 439,667 $ 414,406 Operating income (loss) 34,089 57,956 52,331 33,606 Net income (loss) 7,349 28,920 40,693 20,381 Net income (loss) from continuing operations attributable to HSS (12,513 ) 1,688 7,697 (10,794 ) Net income (loss) attributable to HSS 6,799 28,470 40,231 20,001 As the result of an immaterial adjustment recorded in the third quarter of 2019, amounts may not be comparable to amounts previously reported. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions - Other | Terminated or Transferred Related Party Agreements Effective September 10, 2019, the following agreements were terminated or transferred to DISH Network as part of the BSS Transaction. We have no further obligations and have neither earned additional revenue nor incurred additional expense, as applicable, under or in connection with these agreements after the consummation of the BSS Transaction. DBS Transponder Lease. EchoStar leased satellite capacity from us on eight DBS transponders on the QuetzSat-1 satellite through November 2021, after which EchoStar had certain options to renew the agreement on a year-to year basis through the end of life of the QuetzSat-1 satellite. EchoStar XXIII Launch Facilitation and Operational Control Agreement. As part of applying for the launch license for the EchoStar XXIII satellite through the UK Space Agency, we and a subsidiary of EchoStar, EchoStar Operating L.L.C. (“EOC”), entered into an agreement in March 2016 to transfer to us EOC’s launch service contracts for the EchoStar XXIII satellite and to grant us certain rights to control its in-orbit operations. EOC retained ownership of the satellite and agreed to make additional payments to us for amounts that we were required to pay under the launch service contract. In 2016, we recorded additions to Other non-current assets, net and corresponding increases in Additional paid-in capital in our Consolidated Balance Sheet to reflect EOC’s cumulative payments under the launch service contract prior to the transfer date and to reflect EOC’s funding of additional cash payments to the launch service provider. The EchoStar XXIII satellite was successfully launched in March 2017. We recorded decreases in Other non-current assets, net and Additional paid-in capital of $62.0 million , representing the carrying amount of the launch service contract at the time of launch to reflect the consumption of the contract’s economic benefits by EOC. Satellite Capacity Leased to DISH Network. We entered into certain agreements to lease satellite capacity pursuant to which we provided satellite services to DISH Network on certain satellites, as listed below, owned or leased by us. The fees for the services provided under these agreements depended, among other things, upon the orbital location of the applicable satellite, the number of transponders that provided services on the applicable satellite and the length of the service arrangements. EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV . In March 2014, we began leasing certain satellite capacity to DISH Network on the EchoStar VII satellite, the EchoStar X satellite, the EchoStar XI satellite and the EchoStar XIV satellite. EchoStar XII . DISH Network leased satellite capacity from us on the EchoStar XII satellite. EchoStar XVI . In December 2009, we entered into an agreement to lease satellite capacity to DISH Network, pursuant to which DISH Network leased satellite capacity from us on the EchoStar XVI satellite beginning in January 2013. Nimiq 5 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”). In September 2009, we entered into an agreement with DISH Network, pursuant to which DISH Network leased satellite capacity from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement (the “DISH Nimiq 5 Agreement”). Under the terms of the DISH Nimiq 5 Agreement, DISH Network made certain monthly payments to us that commenced in September 2009, when the Nimiq 5 satellite was placed into service. QuetzSat-1 Agreement. In November 2008, we entered into an agreement to lease satellite capacity from SES Latin America, which provided, among other things, for the provision by SES Latin America to us of leased satellite capacity on 32 DBS transponders on the QuetzSat-1 satellite. Concurrently, in 2008, we entered into an agreement pursuant to which DISH Network leased from us satellite capacity on 24 of the DBS transponders on the QuetzSat-1 satellite. The QuetzSat-1 satellite was launched in September 2011 and was placed into service in November 2011 at the 67.1 degree west longitude orbital location. In January 2013, the QuetzSat-1 satellite was moved to the 77 degree west longitude orbital location. In February 2013, we and DISH Network entered into an agreement pursuant to which we leased back from DISH Network certain satellite capacity on five DBS transponders on the QuetzSat-1 satellite. TT&C Agreement. Effective January 2012, we entered into a TT&C agreement pursuant to which we provided TT&C services to DISH Network, which we subsequently amended (the “2012 TT&C Agreement”). The fees for services provided under the 2012 TT&C Agreement were calculated at either: (i) a fixed fee or (ii) cost plus a fixed margin, which varied depending on the nature of the services provided. Real Estate Lease. Prior to the Share Exchange, a subsidiary of EchoStar leased to DISH Network certain space at 530 EchoStar Drive, Cheyenne, Wyoming. In connection with the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network and contributed a portion to us and we and DISH Network amended this agreement to, among other things, provide for a continued lease to DISH Network of the portion of the property we retained (the “Cheyenne Data Center”). 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 DISH Network was responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. In connection with the BSS Transaction, we transferred the Cheyenne Data Center to DISH Network. This lease does not qualify for discontinued operations treatment, and therefore the revenue from it has not been treated as discontinued operations. 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 it other subsidiaries of $2.1 million , $16.2 million and $22.2 million for the years ended December 31, 2019 , 2018 and 2017 , 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 from affiliates, net within current assets and we report net receipts under these arrangements in Advances from affiliates, net within current liabilities in our 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 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. Organization and Business Activities 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 $349.0 million increase in Additional paid-in capital, reflecting EchoStar’s $514.0 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 $165.0 million EchoStar XXI Launch Facilitation and Operational Control Agreement. As part of applying for the launch license for the EchoStar XXI satellite through the UK Space Agency, we and a subsidiary of EchoStar, EOC, entered into an agreement in June 2015 to transfer to us EOC’s launch service contract for the EchoStar XXI satellite and to grant us certain rights to control its in-orbit operations. EOC retained ownership of the satellite and agreed to make additional payments to us for amounts that we are required to pay under the launch service contract. In 2016, we recorded additions to Other non-current assets, net and corresponding increases in Additional paid-in capital in our Consolidated Balance Sheet to reflect EOC’s cumulative payments under the launch service contract prior to the transfer date and to reflect EOC’s funding of additional cash payments to the launch service provider. The EchoStar XXI satellite was successfully launched in June 2017. We recorded decreases in Other non-current assets, net and Additional paid-in capital of $83.0 million , representing the carrying amount of the launch service contract at the time of launch to reflect the consumption of the contract’s economic benefits by EOC. Share Exchange Agreement. 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 5.0% , that mature in 2023. We recorded revenue in Services and other revenue of $19.5 million , $19.2 million and $2.7 million for the years ended December 31, 2019 , 2018 and 2017 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 $1.5 million , $1.1 million and $0.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Overview EchoStar and DISH have operated as separate publicly-traded companies since 2008. 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 for the benefit of his family. In addition, prior to the consummation of the Share Exchange in February 2017, DISH Network owned the Tracking Stock, which represented an aggregate 80% economic interest in the residential retail satellite broadband business of our Hughes segment. Following the consummation of the Share Exchange, the Tracking Stock was retired. In 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, EchoStar and certain of its other subsidiaries, on the one hand, obtain certain products, services and rights from DISH Network, on the other hand; DISH Network, on the one hand, obtains certain products, services and rights from us, EchoStar and certain of its other subsidiaries, on the other hand; and such entities indemnify each other against certain liabilities arising from their 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 may also enter into additional agreements with DISH Network in the future. The following is a summary of the transactions and the terms of the underlying principal agreements that have had or may have an impact on our consolidated financial condition and results of operations. Services and Other Revenue — DISH Network A summary of our Services and other revenue - DISH Network follows: For the years ended December 31, 2019 2018 2017 Services and other revenue - DISH Network $ 40,014 $ 60,926 $ 96,750 A summary of the related trade accounts receivable follows: As of December 31, 2019 2018 Trade accounts receivable - DISH Network $ 8,876 $ 13,550 Satellite Capacity Leased to DISH Network. We have entered into an agreement and have previously entered into a now terminated agreement to lease satellite capacity pursuant to which we have provided satellite services to DISH Network on certain satellites owned or leased by us. The fees for the services provided under these agreements depend upon, among other things, 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 these agreements are 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. 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. 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. A summary of our operating expenses - DISH Network follows: For the years ended December 31, 2019 2018 2017 Operating expenses - DISH Network $ 3,684 $ 3,602 $ 3,485 A summary of the related trade accounts payable follows: As of December 31, 2019 2018 Trade accounts payable - DISH Network $ 502 $ 752 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, all of which 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 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 and DISH further amended 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 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 in Note 20. Related Party Transactions - EchoStar . The term of the Amended and Restated Professional Services Agreement is through January 2021 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 entered into an agreement with DISH Network for 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 agreement for a five-year period ending in August 2022. We and DISH Network amended this agreement to, among other things, terminate this agreement 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 us in Monee, Illinois and Spokane, Washington through August 2022. Generally, we 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 located 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. 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 through 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 $17.1 million , $33.2 million and $29.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. one -year period upon written notice at least 90 days prior to the initial expiration (the “2019 TT&C Agreement”). The fees for services provided under the 2019 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 2019 TT&C Agreement for any reason upon 12 months ’ notice. Tax Sharing Agreement. Effective December 2007, EchoStar and DISH Network entered into a tax sharing agreement (the “Tax Sharing Agreement”) in connection with the Spin-off. This agreement governs EchoStar and DISH and their respective subsidiaries’ respective rights, responsibilities and obligations after the Spin-off with respect to taxes for the periods ending on or before the Spin-off. Generally, all pre-Spin-off taxes, including any taxes that are incurred as a result of restructuring activities undertaken to implement the Spin-off, are borne by DISH Network and DISH Network indemnifies EchoStar and its subsidiaries for such taxes. However, DISH Network is not liable for and does not indemnify EchoStar or its subsidiaries for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Code, because of: (i) a direct or indirect acquisition of any of EchoStar’s stock, stock options or assets; (ii) any action that EchoStar or its subsidiaries take or fail to take or (iii) any action that EchoStar or its subsidiaries take that is inconsistent with the information and representations furnished to the IRS in connection with the request for the private letter ruling, or to counsel in connection with any opinion being delivered by counsel with respect to the Spin-off or certain related transactions. In such case, EchoStar and its subsidiaries will be solely liable for, and will indemnify DISH Network for any resulting taxes, as well as any losses, claims and expenses. The Tax Sharing Agreement will terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed. In light of the Tax Sharing Agreement, among other things, and in connection with EchoStar’s consolidated federal income tax returns for certain tax years prior to and for the year of the Spin-off, in September 2013, EchoStar and DISH Network agreed upon a supplemental allocation of the tax benefits arising from certain tax items resolved in the course of the IRS’s examination of EchoStar’s consolidated tax returns. As a result, DISH Network agreed to pay EchoStar an amount of that includes the federal tax benefit DISH received as a result of our operations. In August 2018, EchoStar and DISH Network amended the Tax Sharing Agreement and the 2013 agreements (the “Tax Sharing Amendment”). Under the Tax Sharing Amendment, DISH Network is required to compensate EchoStar for certain past and future excess California research and development tax credits generated by EchoStar and its subsidiaries and used by DISH Network. Other Agreements 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 |
Related Party Transactions - Ec
Related Party Transactions - Echostar (Notes) | 12 Months Ended |
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Related Party Transactions [Abstract] | |
Related Party Transactions - Other | Terminated or Transferred Related Party Agreements Effective September 10, 2019, the following agreements were terminated or transferred to DISH Network as part of the BSS Transaction. We have no further obligations and have neither earned additional revenue nor incurred additional expense, as applicable, under or in connection with these agreements after the consummation of the BSS Transaction. DBS Transponder Lease. EchoStar leased satellite capacity from us on eight DBS transponders on the QuetzSat-1 satellite through November 2021, after which EchoStar had certain options to renew the agreement on a year-to year basis through the end of life of the QuetzSat-1 satellite. EchoStar XXIII Launch Facilitation and Operational Control Agreement. As part of applying for the launch license for the EchoStar XXIII satellite through the UK Space Agency, we and a subsidiary of EchoStar, EchoStar Operating L.L.C. (“EOC”), entered into an agreement in March 2016 to transfer to us EOC’s launch service contracts for the EchoStar XXIII satellite and to grant us certain rights to control its in-orbit operations. EOC retained ownership of the satellite and agreed to make additional payments to us for amounts that we were required to pay under the launch service contract. In 2016, we recorded additions to Other non-current assets, net and corresponding increases in Additional paid-in capital in our Consolidated Balance Sheet to reflect EOC’s cumulative payments under the launch service contract prior to the transfer date and to reflect EOC’s funding of additional cash payments to the launch service provider. The EchoStar XXIII satellite was successfully launched in March 2017. We recorded decreases in Other non-current assets, net and Additional paid-in capital of $62.0 million , representing the carrying amount of the launch service contract at the time of launch to reflect the consumption of the contract’s economic benefits by EOC. Satellite Capacity Leased to DISH Network. We entered into certain agreements to lease satellite capacity pursuant to which we provided satellite services to DISH Network on certain satellites, as listed below, owned or leased by us. The fees for the services provided under these agreements depended, among other things, upon the orbital location of the applicable satellite, the number of transponders that provided services on the applicable satellite and the length of the service arrangements. EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV . In March 2014, we began leasing certain satellite capacity to DISH Network on the EchoStar VII satellite, the EchoStar X satellite, the EchoStar XI satellite and the EchoStar XIV satellite. EchoStar XII . DISH Network leased satellite capacity from us on the EchoStar XII satellite. EchoStar XVI . In December 2009, we entered into an agreement to lease satellite capacity to DISH Network, pursuant to which DISH Network leased satellite capacity from us on the EchoStar XVI satellite beginning in January 2013. Nimiq 5 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”). In September 2009, we entered into an agreement with DISH Network, pursuant to which DISH Network leased satellite capacity from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement (the “DISH Nimiq 5 Agreement”). Under the terms of the DISH Nimiq 5 Agreement, DISH Network made certain monthly payments to us that commenced in September 2009, when the Nimiq 5 satellite was placed into service. QuetzSat-1 Agreement. In November 2008, we entered into an agreement to lease satellite capacity from SES Latin America, which provided, among other things, for the provision by SES Latin America to us of leased satellite capacity on 32 DBS transponders on the QuetzSat-1 satellite. Concurrently, in 2008, we entered into an agreement pursuant to which DISH Network leased from us satellite capacity on 24 of the DBS transponders on the QuetzSat-1 satellite. The QuetzSat-1 satellite was launched in September 2011 and was placed into service in November 2011 at the 67.1 degree west longitude orbital location. In January 2013, the QuetzSat-1 satellite was moved to the 77 degree west longitude orbital location. In February 2013, we and DISH Network entered into an agreement pursuant to which we leased back from DISH Network certain satellite capacity on five DBS transponders on the QuetzSat-1 satellite. TT&C Agreement. Effective January 2012, we entered into a TT&C agreement pursuant to which we provided TT&C services to DISH Network, which we subsequently amended (the “2012 TT&C Agreement”). The fees for services provided under the 2012 TT&C Agreement were calculated at either: (i) a fixed fee or (ii) cost plus a fixed margin, which varied depending on the nature of the services provided. Real Estate Lease. Prior to the Share Exchange, a subsidiary of EchoStar leased to DISH Network certain space at 530 EchoStar Drive, Cheyenne, Wyoming. In connection with the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network and contributed a portion to us and we and DISH Network amended this agreement to, among other things, provide for a continued lease to DISH Network of the portion of the property we retained (the “Cheyenne Data Center”). 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 DISH Network was responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. In connection with the BSS Transaction, we transferred the Cheyenne Data Center to DISH Network. This lease does not qualify for discontinued operations treatment, and therefore the revenue from it has not been treated as discontinued operations. 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 it other subsidiaries of $2.1 million , $16.2 million and $22.2 million for the years ended December 31, 2019 , 2018 and 2017 , 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 from affiliates, net within current assets and we report net receipts under these arrangements in Advances from affiliates, net within current liabilities in our 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 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. Organization and Business Activities 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 $349.0 million increase in Additional paid-in capital, reflecting EchoStar’s $514.0 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 $165.0 million EchoStar XXI Launch Facilitation and Operational Control Agreement. As part of applying for the launch license for the EchoStar XXI satellite through the UK Space Agency, we and a subsidiary of EchoStar, EOC, entered into an agreement in June 2015 to transfer to us EOC’s launch service contract for the EchoStar XXI satellite and to grant us certain rights to control its in-orbit operations. EOC retained ownership of the satellite and agreed to make additional payments to us for amounts that we are required to pay under the launch service contract. In 2016, we recorded additions to Other non-current assets, net and corresponding increases in Additional paid-in capital in our Consolidated Balance Sheet to reflect EOC’s cumulative payments under the launch service contract prior to the transfer date and to reflect EOC’s funding of additional cash payments to the launch service provider. The EchoStar XXI satellite was successfully launched in June 2017. We recorded decreases in Other non-current assets, net and Additional paid-in capital of $83.0 million , representing the carrying amount of the launch service contract at the time of launch to reflect the consumption of the contract’s economic benefits by EOC. Share Exchange Agreement. 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 5.0% , that mature in 2023. We recorded revenue in Services and other revenue of $19.5 million , $19.2 million and $2.7 million for the years ended December 31, 2019 , 2018 and 2017 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 $1.5 million , $1.1 million and $0.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Overview EchoStar and DISH have operated as separate publicly-traded companies since 2008. 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 for the benefit of his family. In addition, prior to the consummation of the Share Exchange in February 2017, DISH Network owned the Tracking Stock, which represented an aggregate 80% economic interest in the residential retail satellite broadband business of our Hughes segment. Following the consummation of the Share Exchange, the Tracking Stock was retired. In 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, EchoStar and certain of its other subsidiaries, on the one hand, obtain certain products, services and rights from DISH Network, on the other hand; DISH Network, on the one hand, obtains certain products, services and rights from us, EchoStar and certain of its other subsidiaries, on the other hand; and such entities indemnify each other against certain liabilities arising from their 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 may also enter into additional agreements with DISH Network in the future. The following is a summary of the transactions and the terms of the underlying principal agreements that have had or may have an impact on our consolidated financial condition and results of operations. Services and Other Revenue — DISH Network A summary of our Services and other revenue - DISH Network follows: For the years ended December 31, 2019 2018 2017 Services and other revenue - DISH Network $ 40,014 $ 60,926 $ 96,750 A summary of the related trade accounts receivable follows: As of December 31, 2019 2018 Trade accounts receivable - DISH Network $ 8,876 $ 13,550 Satellite Capacity Leased to DISH Network. We have entered into an agreement and have previously entered into a now terminated agreement to lease satellite capacity pursuant to which we have provided satellite services to DISH Network on certain satellites owned or leased by us. The fees for the services provided under these agreements depend upon, among other things, 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 these agreements are 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. 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. 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. A summary of our operating expenses - DISH Network follows: For the years ended December 31, 2019 2018 2017 Operating expenses - DISH Network $ 3,684 $ 3,602 $ 3,485 A summary of the related trade accounts payable follows: As of December 31, 2019 2018 Trade accounts payable - DISH Network $ 502 $ 752 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, all of which 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 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 and DISH further amended 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 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 in Note 20. Related Party Transactions - EchoStar . The term of the Amended and Restated Professional Services Agreement is through January 2021 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 entered into an agreement with DISH Network for 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 agreement for a five-year period ending in August 2022. We and DISH Network amended this agreement to, among other things, terminate this agreement 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 us in Monee, Illinois and Spokane, Washington through August 2022. Generally, we 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 located 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. 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 through 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 $17.1 million , $33.2 million and $29.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. one -year period upon written notice at least 90 days prior to the initial expiration (the “2019 TT&C Agreement”). The fees for services provided under the 2019 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 2019 TT&C Agreement for any reason upon 12 months ’ notice. Tax Sharing Agreement. Effective December 2007, EchoStar and DISH Network entered into a tax sharing agreement (the “Tax Sharing Agreement”) in connection with the Spin-off. This agreement governs EchoStar and DISH and their respective subsidiaries’ respective rights, responsibilities and obligations after the Spin-off with respect to taxes for the periods ending on or before the Spin-off. Generally, all pre-Spin-off taxes, including any taxes that are incurred as a result of restructuring activities undertaken to implement the Spin-off, are borne by DISH Network and DISH Network indemnifies EchoStar and its subsidiaries for such taxes. However, DISH Network is not liable for and does not indemnify EchoStar or its subsidiaries for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Code, because of: (i) a direct or indirect acquisition of any of EchoStar’s stock, stock options or assets; (ii) any action that EchoStar or its subsidiaries take or fail to take or (iii) any action that EchoStar or its subsidiaries take that is inconsistent with the information and representations furnished to the IRS in connection with the request for the private letter ruling, or to counsel in connection with any opinion being delivered by counsel with respect to the Spin-off or certain related transactions. In such case, EchoStar and its subsidiaries will be solely liable for, and will indemnify DISH Network for any resulting taxes, as well as any losses, claims and expenses. The Tax Sharing Agreement will terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed. In light of the Tax Sharing Agreement, among other things, and in connection with EchoStar’s consolidated federal income tax returns for certain tax years prior to and for the year of the Spin-off, in September 2013, EchoStar and DISH Network agreed upon a supplemental allocation of the tax benefits arising from certain tax items resolved in the course of the IRS’s examination of EchoStar’s consolidated tax returns. As a result, DISH Network agreed to pay EchoStar an amount of that includes the federal tax benefit DISH received as a result of our operations. In August 2018, EchoStar and DISH Network amended the Tax Sharing Agreement and the 2013 agreements (the “Tax Sharing Amendment”). Under the Tax Sharing Amendment, DISH Network is required to compensate EchoStar for certain past and future excess California research and development tax credits generated by EchoStar and its subsidiaries and used by DISH Network. Other Agreements 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 |
Related Party Transactions - Ot
Related Party Transactions - Other (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions - Other | Terminated or Transferred Related Party Agreements Effective September 10, 2019, the following agreements were terminated or transferred to DISH Network as part of the BSS Transaction. We have no further obligations and have neither earned additional revenue nor incurred additional expense, as applicable, under or in connection with these agreements after the consummation of the BSS Transaction. DBS Transponder Lease. EchoStar leased satellite capacity from us on eight DBS transponders on the QuetzSat-1 satellite through November 2021, after which EchoStar had certain options to renew the agreement on a year-to year basis through the end of life of the QuetzSat-1 satellite. EchoStar XXIII Launch Facilitation and Operational Control Agreement. As part of applying for the launch license for the EchoStar XXIII satellite through the UK Space Agency, we and a subsidiary of EchoStar, EchoStar Operating L.L.C. (“EOC”), entered into an agreement in March 2016 to transfer to us EOC’s launch service contracts for the EchoStar XXIII satellite and to grant us certain rights to control its in-orbit operations. EOC retained ownership of the satellite and agreed to make additional payments to us for amounts that we were required to pay under the launch service contract. In 2016, we recorded additions to Other non-current assets, net and corresponding increases in Additional paid-in capital in our Consolidated Balance Sheet to reflect EOC’s cumulative payments under the launch service contract prior to the transfer date and to reflect EOC’s funding of additional cash payments to the launch service provider. The EchoStar XXIII satellite was successfully launched in March 2017. We recorded decreases in Other non-current assets, net and Additional paid-in capital of $62.0 million , representing the carrying amount of the launch service contract at the time of launch to reflect the consumption of the contract’s economic benefits by EOC. Satellite Capacity Leased to DISH Network. We entered into certain agreements to lease satellite capacity pursuant to which we provided satellite services to DISH Network on certain satellites, as listed below, owned or leased by us. The fees for the services provided under these agreements depended, among other things, upon the orbital location of the applicable satellite, the number of transponders that provided services on the applicable satellite and the length of the service arrangements. EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV . In March 2014, we began leasing certain satellite capacity to DISH Network on the EchoStar VII satellite, the EchoStar X satellite, the EchoStar XI satellite and the EchoStar XIV satellite. EchoStar XII . DISH Network leased satellite capacity from us on the EchoStar XII satellite. EchoStar XVI . In December 2009, we entered into an agreement to lease satellite capacity to DISH Network, pursuant to which DISH Network leased satellite capacity from us on the EchoStar XVI satellite beginning in January 2013. Nimiq 5 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”). In September 2009, we entered into an agreement with DISH Network, pursuant to which DISH Network leased satellite capacity from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement (the “DISH Nimiq 5 Agreement”). Under the terms of the DISH Nimiq 5 Agreement, DISH Network made certain monthly payments to us that commenced in September 2009, when the Nimiq 5 satellite was placed into service. QuetzSat-1 Agreement. In November 2008, we entered into an agreement to lease satellite capacity from SES Latin America, which provided, among other things, for the provision by SES Latin America to us of leased satellite capacity on 32 DBS transponders on the QuetzSat-1 satellite. Concurrently, in 2008, we entered into an agreement pursuant to which DISH Network leased from us satellite capacity on 24 of the DBS transponders on the QuetzSat-1 satellite. The QuetzSat-1 satellite was launched in September 2011 and was placed into service in November 2011 at the 67.1 degree west longitude orbital location. In January 2013, the QuetzSat-1 satellite was moved to the 77 degree west longitude orbital location. In February 2013, we and DISH Network entered into an agreement pursuant to which we leased back from DISH Network certain satellite capacity on five DBS transponders on the QuetzSat-1 satellite. TT&C Agreement. Effective January 2012, we entered into a TT&C agreement pursuant to which we provided TT&C services to DISH Network, which we subsequently amended (the “2012 TT&C Agreement”). The fees for services provided under the 2012 TT&C Agreement were calculated at either: (i) a fixed fee or (ii) cost plus a fixed margin, which varied depending on the nature of the services provided. Real Estate Lease. Prior to the Share Exchange, a subsidiary of EchoStar leased to DISH Network certain space at 530 EchoStar Drive, Cheyenne, Wyoming. In connection with the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network and contributed a portion to us and we and DISH Network amended this agreement to, among other things, provide for a continued lease to DISH Network of the portion of the property we retained (the “Cheyenne Data Center”). 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 DISH Network was responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. In connection with the BSS Transaction, we transferred the Cheyenne Data Center to DISH Network. This lease does not qualify for discontinued operations treatment, and therefore the revenue from it has not been treated as discontinued operations. 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 it other subsidiaries of $2.1 million , $16.2 million and $22.2 million for the years ended December 31, 2019 , 2018 and 2017 , 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 from affiliates, net within current assets and we report net receipts under these arrangements in Advances from affiliates, net within current liabilities in our 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 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. Organization and Business Activities 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 $349.0 million increase in Additional paid-in capital, reflecting EchoStar’s $514.0 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 $165.0 million EchoStar XXI Launch Facilitation and Operational Control Agreement. As part of applying for the launch license for the EchoStar XXI satellite through the UK Space Agency, we and a subsidiary of EchoStar, EOC, entered into an agreement in June 2015 to transfer to us EOC’s launch service contract for the EchoStar XXI satellite and to grant us certain rights to control its in-orbit operations. EOC retained ownership of the satellite and agreed to make additional payments to us for amounts that we are required to pay under the launch service contract. In 2016, we recorded additions to Other non-current assets, net and corresponding increases in Additional paid-in capital in our Consolidated Balance Sheet to reflect EOC’s cumulative payments under the launch service contract prior to the transfer date and to reflect EOC’s funding of additional cash payments to the launch service provider. The EchoStar XXI satellite was successfully launched in June 2017. We recorded decreases in Other non-current assets, net and Additional paid-in capital of $83.0 million , representing the carrying amount of the launch service contract at the time of launch to reflect the consumption of the contract’s economic benefits by EOC. Share Exchange Agreement. 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 5.0% , that mature in 2023. We recorded revenue in Services and other revenue of $19.5 million , $19.2 million and $2.7 million for the years ended December 31, 2019 , 2018 and 2017 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 $1.5 million , $1.1 million and $0.4 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Overview EchoStar and DISH have operated as separate publicly-traded companies since 2008. 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 for the benefit of his family. In addition, prior to the consummation of the Share Exchange in February 2017, DISH Network owned the Tracking Stock, which represented an aggregate 80% economic interest in the residential retail satellite broadband business of our Hughes segment. Following the consummation of the Share Exchange, the Tracking Stock was retired. In 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, EchoStar and certain of its other subsidiaries, on the one hand, obtain certain products, services and rights from DISH Network, on the other hand; DISH Network, on the one hand, obtains certain products, services and rights from us, EchoStar and certain of its other subsidiaries, on the other hand; and such entities indemnify each other against certain liabilities arising from their 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 may also enter into additional agreements with DISH Network in the future. The following is a summary of the transactions and the terms of the underlying principal agreements that have had or may have an impact on our consolidated financial condition and results of operations. Services and Other Revenue — DISH Network A summary of our Services and other revenue - DISH Network follows: For the years ended December 31, 2019 2018 2017 Services and other revenue - DISH Network $ 40,014 $ 60,926 $ 96,750 A summary of the related trade accounts receivable follows: As of December 31, 2019 2018 Trade accounts receivable - DISH Network $ 8,876 $ 13,550 Satellite Capacity Leased to DISH Network. We have entered into an agreement and have previously entered into a now terminated agreement to lease satellite capacity pursuant to which we have provided satellite services to DISH Network on certain satellites owned or leased by us. The fees for the services provided under these agreements depend upon, among other things, 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 these agreements are 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. 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. 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. A summary of our operating expenses - DISH Network follows: For the years ended December 31, 2019 2018 2017 Operating expenses - DISH Network $ 3,684 $ 3,602 $ 3,485 A summary of the related trade accounts payable follows: As of December 31, 2019 2018 Trade accounts payable - DISH Network $ 502 $ 752 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, all of which 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 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 and DISH further amended 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 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 in Note 20. Related Party Transactions - EchoStar . The term of the Amended and Restated Professional Services Agreement is through January 2021 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 entered into an agreement with DISH Network for 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 agreement for a five-year period ending in August 2022. We and DISH Network amended this agreement to, among other things, terminate this agreement 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 us in Monee, Illinois and Spokane, Washington through August 2022. Generally, we 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 located 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. 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 through 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 $17.1 million , $33.2 million and $29.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. one -year period upon written notice at least 90 days prior to the initial expiration (the “2019 TT&C Agreement”). The fees for services provided under the 2019 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 2019 TT&C Agreement for any reason upon 12 months ’ notice. Tax Sharing Agreement. Effective December 2007, EchoStar and DISH Network entered into a tax sharing agreement (the “Tax Sharing Agreement”) in connection with the Spin-off. This agreement governs EchoStar and DISH and their respective subsidiaries’ respective rights, responsibilities and obligations after the Spin-off with respect to taxes for the periods ending on or before the Spin-off. Generally, all pre-Spin-off taxes, including any taxes that are incurred as a result of restructuring activities undertaken to implement the Spin-off, are borne by DISH Network and DISH Network indemnifies EchoStar and its subsidiaries for such taxes. However, DISH Network is not liable for and does not indemnify EchoStar or its subsidiaries for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Code, because of: (i) a direct or indirect acquisition of any of EchoStar’s stock, stock options or assets; (ii) any action that EchoStar or its subsidiaries take or fail to take or (iii) any action that EchoStar or its subsidiaries take that is inconsistent with the information and representations furnished to the IRS in connection with the request for the private letter ruling, or to counsel in connection with any opinion being delivered by counsel with respect to the Spin-off or certain related transactions. In such case, EchoStar and its subsidiaries will be solely liable for, and will indemnify DISH Network for any resulting taxes, as well as any losses, claims and expenses. The Tax Sharing Agreement will terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed. In light of the Tax Sharing Agreement, among other things, and in connection with EchoStar’s consolidated federal income tax returns for certain tax years prior to and for the year of the Spin-off, in September 2013, EchoStar and DISH Network agreed upon a supplemental allocation of the tax benefits arising from certain tax items resolved in the course of the IRS’s examination of EchoStar’s consolidated tax returns. As a result, DISH Network agreed to pay EchoStar an amount of that includes the federal tax benefit DISH received as a result of our operations. In August 2018, EchoStar and DISH Network amended the Tax Sharing Agreement and the 2013 agreements (the “Tax Sharing Amendment”). Under the Tax Sharing Amendment, DISH Network is required to compensate EchoStar for certain past and future excess California research and development tax credits generated by EchoStar and its subsidiaries and used by DISH Network. Other Agreements 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 |
Supplemental Guarantor and Non-
Supplemental Guarantor and Non-Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Guarantor and Non-Guarantor Financial Information | |
Supplemental Guarantor and Non-Guarantor Financial Information | Supplemental Guarantor and Non-Guarantor Financial Information Certain of our wholly-owned subsidiaries (together, the “Guarantor Subsidiaries”) have fully and unconditionally guaranteed, on a joint and several basis, the obligations of our Notes. See Note 14 . Long-term Debt and Finance Lease Obligations for further information on our 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 our 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 to pay dividends, make distributions, make other payments, or transfer assets. The accompanying condensed consolidating financial information (amounts in thousands) presented below should be read in conjunction with our accompanying condensed consolidated financial statements and notes thereto included herein. Consolidating Balance Sheet as of December 31, 2019 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 1,057,903 $ 32,338 $ 49,194 $ — $ 1,139,435 Marketable investment securities 652,594 241 — — 652,835 Trade accounts receivable and contract assets, net — 129,722 66,798 — 196,520 Advances to affiliates 93,493 523,116 17,501 (502,218 ) 131,892 Other current assets 43 79,221 90,458 38 169,760 Total current assets 1,804,033 764,638 223,951 (502,180 ) 2,290,442 Property and equipment, net — 1,459,151 398,430 — 1,857,581 Operating lease right-of-use assets — 89,106 24,293 — 113,399 Goodwill — 504,173 2,780 — 506,953 Regulatory authorizations, net — 400,000 12,363 — 412,363 Other intangible assets, net — 29,321 — — 29,321 Other investments, net — 110,040 — — 110,040 Investment in subsidiaries 2,876,572 282,163 — (3,158,735 ) — Advances to affiliates, net 700 565,412 17,161 (563,514 ) 19,759 Other non-current assets, net 9,972 206,781 25,396 (9,972 ) 232,177 Total assets $ 4,691,277 $ 4,410,785 $ 704,374 $ (4,234,401 ) $ 5,572,035 Liabilities and Shareholders’ Equity Trade accounts payable $ — $ 102,744 $ 18,808 $ — $ 121,552 Current portion of long-term debt and finance lease obligations — — 486 — 486 Advances from affiliates, net 202,994 240,887 69,469 (502,218 ) 11,132 Contract liabilities — 96,485 4,575 — 101,060 Accrued expenses and other current liabilities 40,700 73,696 132,365 38 246,799 Total current liabilities 243,694 513,812 225,703 (502,180 ) 481,029 Long-term debt and finance lease obligations, net of current portion 2,389,168 — 565 — 2,389,733 Deferred tax liabilities, net — 390,288 — (9,972 ) 380,316 Operating lease liabilities — 77,366 19,513 — 96,879 Advances from affiliates, net — 488,488 99,006 (563,514 ) 23,980 Other non-current liabilities — 65,030 905 — 65,935 Total HSS shareholders’ equity 2,058,415 2,875,801 282,934 (3,158,735 ) 2,058,415 Non-controlling interests — — 75,748 — 75,748 Total liabilities and shareholders’ equity $ 4,691,277 $ 4,410,785 $ 704,374 $ (4,234,401 ) $ 5,572,035 Consolidating Balance Sheet as of December 31, 2018 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 771,718 $ 46,353 $ 29,752 $ — $ 847,823 Marketable investment securities 1,608,123 1,073 — — 1,609,196 Trade accounts receivable and contract assets, net — 128,831 72,265 — 201,096 Advances to affiliates 109,433 536,600 27,174 (569,657 ) 103,550 Other current assets 72 94,695 58,460 (561 ) 152,666 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, net — 400,043 — — 400,043 Other intangible assets, net — 43,952 — — 43,952 Other investments, net — 126,369 — — 126,369 Investment in subsidiaries 3,362,589 192,370 — (3,554,959 ) — Advances to affiliates, net 700 86,280 — (86,980 ) — Deferred tax asset 54,001 — 3,581 (54,001 ) 3,581 Other non-current assets, net — 220,099 12,769 — 232,868 Non-current 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 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 Contract liabilities — 67,636 4,613 — 72,249 Accrued expenses and other current liabilities 43,410 71,111 43,694 (561 ) 157,654 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 of current portion 2,385,164 — 1,038 — 2,386,202 Deferred tax liabilities, net — 409,116 834 (54,001 ) 355,949 Advances from affiliates, net — — 120,418 (86,980 ) 33,438 Other non-current liabilities — 69,168 2,479 — 71,647 Non-current liabilities of discontinued operations — 349,282 — — 349,282 Total HSS shareholders’ equity 2,377,220 3,361,338 193,621 (3,554,959 ) 2,377,220 Non-controlling interests — — 15,275 — 15,275 Total liabilities and shareholders’ equity $ 5,906,636 $ 4,747,316 $ 505,378 $ (4,266,158 ) $ 6,893,172 Consolidating Statement of Operations and Comprehensive Income (Loss) For the Year Ended December 31, 2019 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ 1,417,659 $ 242,257 $ (36,458 ) $ 1,623,458 Equipment revenue — 283,792 32,864 (49,953 ) 266,703 Total revenue — 1,701,451 275,121 (86,411 ) 1,890,161 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 438,214 151,493 (34,006 ) 555,701 Cost of sales - equipment (exclusive of depreciation and amortization) — 250,700 24,357 (49,954 ) 225,103 Selling, general and administrative expenses 6,720 375,309 88,291 (2,451 ) 467,869 Research and development expenses — 25,082 657 — 25,739 Depreciation and amortization — 391,464 73,333 — 464,797 Total costs and expenses 6,720 1,480,769 338,131 (86,411 ) 1,739,209 Operating income (loss) (6,720 ) 220,682 (63,010 ) — 150,952 Other income (expense): Interest income 54,341 4,441 2,798 (3,850 ) 57,730 Interest expense, net of amounts capitalized (190,685 ) (7,832 ) (77,551 ) 3,850 (272,218 ) Gains (losses) on investments, net 455 (8,919 ) — — (8,464 ) Equity in earnings (losses) of unconsolidated affiliates, net — (3,333 ) — — (3,333 ) Equity in earnings (losses) of subsidiaries, net 75,047 (135,258 ) — 60,211 — Foreign currency transaction gains (losses), net — (344 ) (9,511 ) — (9,855 ) Other, net (100 ) (351 ) (182 ) — (633 ) Total other income (expense), net (60,942 ) (151,596 ) (84,446 ) 60,211 (236,773 ) Income (loss) from continuing operations before income taxes (67,662 ) 69,086 (147,456 ) 60,211 (85,821 ) Income tax benefit (provision), net 38,120 (50,242 ) 527 — (11,595 ) Net income (loss) from continuing operations (29,542 ) 18,844 (146,929 ) 60,211 (97,416 ) Net income (loss) from discontinued operations — 56,539 — — 56,539 Net income (loss) (29,542 ) 75,383 (146,929 ) 60,211 (40,877 ) Less: Net income (loss) attributable to non-controlling interests — — (11,335 ) — (11,335 ) Net income (loss) attributable to HSS $ (29,542 ) $ 75,383 $ (135,594 ) $ 60,211 $ (29,542 ) Comprehensive income (loss): Net income (loss) $ (29,542 ) $ 75,383 $ (146,929 ) $ 60,211 $ (40,877 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 1,182 — 1,182 Unrealized gains (losses) on available-for-sale securities 1,817 — — — 1,817 Other — — (114 ) — (114 ) Amounts reclassified to net income (loss): Realized gains on available-for-sale securities (419 ) — — — (419 ) Equity in other comprehensive income (loss) of subsidiaries, net (2,260 ) (2,260 ) — 4,520 — Total other comprehensive income (loss), net of tax (862 ) (2,260 ) 1,068 4,520 2,466 Comprehensive income (loss) (30,404 ) 73,123 (145,861 ) 64,731 (38,411 ) Less: Comprehensive income (loss) attributable to non-controlling interests — — (8,007 ) — (8,007 ) Comprehensive income (loss) attributable to EchoStar Corporation $ (30,404 ) $ 73,123 $ (137,854 ) $ 64,731 $ (30,404 ) Consolidating Statement of Operations and Comprehensive Income (Loss) For the Year Ended December 31, 2018 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ 1,366,459 $ 232,873 $ (37,906 ) $ 1,561,426 Equipment revenue — 221,996 29,137 (45,723 ) 205,410 Total revenue — 1,588,455 262,010 (83,629 ) 1,766,836 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 447,622 147,952 (35,736 ) 559,838 Cost of sales - equipment (exclusive of depreciation and amortization) — 200,620 21,703 (45,723 ) 176,600 Selling, general and administrative expenses — 345,221 54,943 (2,170 ) 397,994 Research and development expenses — 27,570 — — 27,570 Depreciation and amortization — 374,297 52,555 — 426,852 Total costs and expenses — 1,395,330 277,153 (83,629 ) 1,588,854 Operating income (loss) — 193,125 (15,143 ) — 177,982 Other income (expense): Interest income 56,487 3,806 2,472 (3,661 ) 59,104 Interest expense, net of amounts capitalized (229,481 ) (866 ) (4,483 ) 3,661 (231,169 ) Gains (losses) on investments, net — 187 — — 187 Equity in earnings (losses) of unconsolidated affiliates, net — 4,874 — — 4,874 Equity in earnings (losses) of subsidiaries, net 224,405 (33,525 ) — (190,880 ) — Foreign currency transaction gains (losses), net — (104 ) (12,380 ) — (12,484 ) Other, net (970 ) 9,259 (248 ) — 8,041 Total other income (expense), net 50,441 (16,369 ) (14,639 ) (190,880 ) (171,447 ) Income (loss) from continuing operations before income taxes 50,441 176,756 (29,782 ) (190,880 ) 6,535 Income tax benefit (provision), net 45,060 (62,230 ) (1,445 ) — (18,615 ) Net income (loss) from continuing operations 95,501 114,526 (31,227 ) (190,880 ) (12,080 ) Net income (loss) from discontinued operations — 109,423 — — 109,423 Net income (loss) 95,501 223,949 (31,227 ) (190,880 ) 97,343 Less: Net income (loss) attributable to non-controlling interests — — 1,842 — 1,842 Net income (loss) attributable to HSS $ 95,501 $ 223,949 $ (33,069 ) $ (190,880 ) $ 95,501 Comprehensive income (loss): Net income (loss) $ 95,501 $ 223,949 $ (31,227 ) $ (190,880 ) $ 97,343 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (31,938 ) — (31,938 ) Unrealized gains (losses) on available-for-sale securities (665 ) — — — (665 ) Other — — 41 — 41 Amounts reclassified to net income (loss): Realized gains on available-for-sale securities (212 ) — — — (212 ) Equity in other comprehensive income (loss) of subsidiaries, net (30,508 ) (30,508 ) — 61,016 — Total other comprehensive income (loss), net of tax (31,385 ) (30,508 ) (31,897 ) 61,016 (32,774 ) Comprehensive income (loss) 64,116 193,441 (63,124 ) (129,864 ) 64,569 Less: Comprehensive income (loss) attributable to non-controlling interests — — 453 — 453 Comprehensive income (loss) attributable to EchoStar Corporation $ 64,116 $ 193,441 $ (63,577 ) $ (129,864 ) $ 64,116 Consolidating Statement of Operations and Comprehensive Income (Loss) For the Year Ended December 31, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ 1,127,177 $ 180,596 $ (32,220 ) $ 1,275,553 Equipment revenue — 255,610 27,205 (43,326 ) 239,489 Total revenue — 1,382,787 207,801 (75,546 ) 1,515,042 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 395,566 131,177 (29,632 ) 497,111 Cost of sales - equipment (exclusive of depreciation and amortization) — 218,299 20,318 (43,178 ) 195,439 Selling, general and administrative expenses — 293,767 46,517 (2,736 ) 337,548 Research and development expenses — 31,745 — — 31,745 Depreciation and amortization — 332,103 38,315 — 370,418 Impairment of long-lived assets — 6,000 — — 6,000 Total costs and expenses — 1,277,480 236,327 (75,546 ) 1,438,261 Operating income (loss) — 105,307 (28,526 ) — 76,781 Other income (expense): Interest income 28,146 96,992 1,986 (95,172 ) 31,952 Interest expense, net of amounts capitalized (229,415 ) (80,543 ) 1,620 95,172 (213,166 ) Gains (losses) on investments, net — (1,574 ) — — (1,574 ) Equity in earnings (losses) of unconsolidated affiliates, net — 7,027 — — 7,027 Equity in earnings (losses) of subsidiaries, net 471,602 (35,142 ) — (436,460 ) — Foreign currency transaction gains (losses), net — (85 ) (1,073 ) — (1,158 ) Other, net — (871 ) (159 ) — (1,030 ) Total other income (expense), net 270,333 (14,196 ) 2,374 (436,460 ) (177,949 ) Income (loss) from continuing operations before income taxes 270,333 91,111 (26,152 ) (436,460 ) (101,168 ) Income tax benefit (provision), net 25,637 75,956 (7,827 ) — 93,766 Net income (loss) from continuing operations 295,970 167,067 (33,979 ) (436,460 ) (7,402 ) Net income (loss) from discontinued operations — 304,955 — — 304,955 Net income (loss) 295,970 472,022 (33,979 ) (436,460 ) 297,553 Less: Net income (loss) attributable to non-controlling interests — — 1,583 — 1,583 Net income (loss) attributable to HSS $ 295,970 $ 472,022 $ (35,562 ) $ (436,460 ) $ 295,970 Comprehensive income (loss): Net income (loss) $ 295,970 $ 472,022 $ (33,979 ) $ (436,460 ) $ 297,553 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 7,196 — 7,196 Unrealized gains (losses) on available-for-sale securities (273 ) (2,007 ) — — (2,280 ) Other — — 92 — 92 Amounts reclassified to net income (loss): Other-than-temporary impairment loss on available-for-sale securities — 3,298 — — 3,298 Equity in other comprehensive income (loss) of subsidiaries, net 8,170 6,879 — (15,049 ) — Total other comprehensive income (loss), net of tax 7,897 8,170 7,288 (15,049 ) 8,306 Comprehensive income (loss) 303,867 480,192 (26,691 ) (451,509 ) 305,859 Less: Comprehensive income (loss) attributable to non-controlling interests — — 1,992 — 1,992 Comprehensive income (loss) attributable to EchoStar Corporation $ 303,867 $ 480,192 $ (28,683 ) $ (451,509 ) $ 303,867 Consolidating Statement of Cash Flows for the Year Ended December 31, 2019 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ (29,542 ) $ 75,383 $ (146,929 ) $ 60,211 $ (40,877 ) Adjustments to reconcile net income (loss) to net cash flows from operating activities (26,693 ) 569,444 191,941 (60,211 ) 674,481 Net cash flows from operating activities (56,235 ) 644,827 45,012 — 633,604 Cash flows from investing activities: Purchases of marketable investment securities (709,350 ) — — — (709,350 ) Sales and maturities of marketable investment securities 1,665,269 — — — 1,665,269 Investments in unconsolidated affiliates — (7 ) 7,858 — 7,851 Dividend received from unconsolidated affiliate — 2,284 — — 2,284 Expenditures for property and equipment — (215,000 ) (94,291 ) — (309,291 ) Expenditures for externally marketed software — (29,310 ) — — (29,310 ) Purchases of regulatory authorizations — — (7,850 ) — (7,850 ) Investment in subsidiaries 307,424 (75,086 ) — (232,338 ) — Net cash flows from investing activities 1,263,343 (317,119 ) (94,283 ) (232,338 ) 619,603 Cash flows from financing activities: Repurchase and maturity of the 2019 Senior Secured Notes (920,923 ) — — — (920,923 ) Repayment of other long-term debt and finance lease obligations — (27,203 ) (2,144 ) — (29,347 ) Payment of in-orbit incentive obligations — (4,430 ) — — (4,430 ) Purchase of non-controlling interest — (2,666 ) (4,647 ) — (7,313 ) Other, net — — 1,172 — 1,172 Contribution (distributions) and advances (to) from parent, net — (307,424 ) 75,086 232,338 — Net cash flows from financing activities (920,923 ) (341,723 ) 69,467 232,338 (960,841 ) Effect of exchange rates on cash and cash equivalents — — (663 ) — (663 ) Net increase (decrease) in cash and cash equivalents 286,185 (14,015 ) 19,533 — 291,703 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 $ 1,057,903 $ 32,338 $ 50,081 $ — $ 1,140,322 Consolidating Statement of Cash Flows for the Year Ended December 31, 2018 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 95,501 $ 223,949 $ (31,227 ) $ (190,880 ) $ 97,343 Adjustments to reconcile net income (loss) to net cash flows from operating activities (160,236 ) 536,404 78,312 190,880 645,360 Net cash flows from operating activities (64,735 ) 760,353 47,085 — 742,703 Cash flows from investing activities: Purchases of marketable investment securities (2,063,042 ) — — — (2,063,042 ) Sales and maturities of marketable investment securities 909,996 — — — 909,996 Investments in unconsolidated affiliates — (100,991 ) — — (100,991 ) Expenditures for property and equipment — (304,376 ) (86,689 ) — (391,065 ) Refunds and other receipts related to property and equipment — 77,524 — — 77,524 Expenditures for externally marketed software — (31,639 ) — — (31,639 ) Payment for EchoStar XXI launch services — — (7,125 ) — (7,125 ) Investment in subsidiaries 305,669 (50,540 ) — (255,129 ) — Net cash flows from investing activities (847,377 ) (410,022 ) (93,814 ) (255,129 ) (1,606,342 ) Cash flows from financing activities: Repurchase and maturity of the 2019 Senior Secured Notes (70,173 ) — — — (70,173 ) Repayment of other long-term debt and finance lease obligations — (35,886 ) (5,133 ) — (41,019 ) Payment of in-orbit incentive obligations — (4,796 ) — — (4,796 ) Capital contribution from EchoStar 7,125 — — — 7,125 Contribution (distributions) and advances (to) from parent, net — (305,669 ) 50,540 255,129 — Net cash flows from financing activities (63,048 ) (346,351 ) 45,407 255,129 (108,863 ) Effect of exchange rates on cash and cash equivalents — — (2,233 ) — (2,233 ) Net increase (decrease) in cash and cash equivalents (975,160 ) 3,980 (3,555 ) — (974,735 ) 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 $ 771,718 $ 46,353 $ 30,548 $ — $ 848,619 Consolidating Statement of Cash Flows for the Year Ended December 31, 2017 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 295,970 $ 472,022 $ (33,979 ) $ (436,460 ) $ 297,553 Adjustments to reconcile net income (loss) to net cash flows from operating activities (206,014 ) (74,310 ) 43,340 436,460 199,476 Net cash flows from operating activities 89,956 397,712 9,361 — 497,029 Cash flows from investing activities: Purchases of marketable investment securities (535,476 ) — — — (535,476 ) Sales and maturities of marketable investment securities 259,263 — — — 259,263 Expenditures for property and equipment — (340,197 ) (61,341 ) — (401,538 ) Refunds and other receipts related to property and equipment — 4,311 — — 4,311 Expenditures for externally marketed software — (31,331 ) — — (31,331 ) Investment in subsidiaries (59,000 ) (63,000 ) — 122,000 — Net cash flows from investing activities (335,213 ) (430,217 ) (61,341 ) 122,000 (704,771 ) Cash flows from financing activities: Repayment of other long-term debt and finance lease obligations — (32,177 ) (4,886 ) — (37,063 ) Payment of in-orbit incentive obligations — (5,850 ) — — (5,850 ) Other, net 186 — 850 — 1,036 Contribution (distributions) and advances (to) from parent, net — 59,000 63,000 (122,000 ) — Net cash flows from financing activities 186 20,973 58,964 (122,000 ) (41,877 ) Effect of exchange rates on cash and cash equivalents — — 1,286 — 1,286 Net increase (decrease) in cash and cash equivalents (245,071 ) (11,532 ) 8,270 — (248,333 ) Cash and cash equivalents, including restricted amounts, beginning of period 1,991,949 53,905 25,833 — 2,071,687 Cash and cash equivalents, including restricted amounts, end of period $ 1,746,878 $ 42,373 $ 34,103 $ — $ 1,823,354 |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | SUPPLEMENTAL FINANCIAL INFORMATION 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: For the years ended December 31, 2019 2018 2017 Cost of sales - equipment $ 24,495 $ 23,422 $ 27,899 Research and development expenses 25,739 27,570 31,745 Advertising Costs We incurred advertising expense of $88.2 million , $75.8 million and $64.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Other Current Assets, Other Non-Current Assets, Net and Accrued Expenses and Other Current Liabilities Other current assets , Other non-current assets, net and Accrued expenses and other current liabilities consist of the following: As of December 31, 2019 2018 Other current assets: Trade accounts receivable - DISH Network $ 8,876 $ 13,550 Inventory 79,474 75,379 Prepaids and deposits 59,193 45,198 Other 22,217 18,539 Total other current assets $ 169,760 $ 152,666 Other non-current assets, net: Restricted cash $ 887 $ 796 Deferred tax assets, net 7,215 3,581 Capitalized software, net 101,786 96,760 Contract acquisition costs, net 96,723 104,013 Contract fulfillment costs, net 3,010 3,240 Other 22,556 28,059 Total other non-current assets, net $ 232,177 $ 236,449 Accrued expenses and other current liabilities: Trade accounts payable - DISH Network $ 502 $ 752 Accrued interest 32,184 45,131 Accrued compensation 42,846 42,796 Accrued taxes 18,493 7,609 Operating lease obligation 14,112 — Other 138,662 61,366 Total accrued expenses and other current liabilities $ 246,799 $ 157,654 Capitalized Software Costs As of December 31, 2019 and 2018 , the net carrying amount of externally marketed software was $101.8 million and $96.8 million , respectively, of which $38.8 million and $28.8 million , respectively, was under development and not yet placed in service. We capitalized costs related to the development of externally marketed software of $29.3 million , $31.6 million and $31.3 million and recorded related amortization expense of $24.3 million , $23.0 million and $19.5 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The weighted average useful life of our externally marketed software was three years as of December 31, 2019 . The following table reconciles cash and cash equivalents and restricted cash, as presented in the Consolidated Balance Sheets to the total of the same as presented in the Consolidated Statements of Cash Flows: For the years ended December 31, 2019 2018 2017 Cash and cash equivalents, including restricted amounts, beginning of period: Cash and cash equivalents $ 847,823 $ 1,822,561 $ 2,070,964 Restricted cash 796 793 723 Total cash and cash equivalents, included restricted amounts, beginning of period $ 848,619 $ 1,823,354 $ 2,071,687 Cash and cash equivalents, including restricted amounts, end of period: Cash and cash equivalents $ 1,139,435 $ 847,823 $ 1,822,561 Restricted cash 887 796 793 Total cash and cash equivalents, included restricted amounts, end of period $ 1,140,322 $ 848,619 $ 1,823,354 Non-cash Investing and Financing Activities The following table presents the non-cash investing and financing activities: For the years ended December 31, 2019 2018 2017 Property and equipment financed under finance lease obligations $ 349 $ 364 $ 8,484 Increase (decrease) in capital expenditures included in accounts payable, net 1,625 1,566 (2,522 ) Capitalized in-orbit incentive obligations — — 31,000 Non-cash net assets exchanged for HSS Tracking Stock ( Note 5 ) — — 190,221 Non-cash net assets exchanged for BSS Transaction ( Note 5 ) 332,699 — — Non-cash net assets received in exchange for a 20% ownership interest in our existing Brazilian subsidiary 94,918 — — Contribution from EchoStar in our existing Brazilian subsidiary 9,606 — — Transfer of launch service contracts from (to) EchoStar — — (145,114 ) Contribution of non-cash net assets pursuant to Share Exchange Agreement ( Note 1 ) — — 219,662 Contribution of EchoStar XIX satellite — — 514,448 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-lived Assets We review our long-lived assets for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For assets held and used in operations, the asset is not recoverable if the carrying amount of the asset exceeds its undiscounted estimated future net cash flows. When an asset is not recoverable, we adjust the carrying amount of such asset to its estimated fair value and recognize the impairment loss in Impairment of long-lived assets in the Consolidated Statements of Operations |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation These Consolidated Financial Statements and the accompanying notes are prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). 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 in which we are the primary beneficiary and in other entities in which 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 non-controlling interest within shareholders’ equity for the portion of the entity’s equity attributed to the non-controlling 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. |
Use of Estimates | Use of Estimates We are required to make certain estimates and assumptions that affect the amounts reported in these Consolidated Financial Statements. The most significant estimates and assumptions are used in determining: (i) inputs used to recognize revenue over time, including amortization periods for deferred contract acquisition costs; (ii) allowances for doubtful accounts; (iii) deferred taxes and related valuation allowances, including uncertain tax positions; (iv) loss contingencies; (v) fair value of financial instruments ; (vi) fair value of assets and liabilities acquired in business combinations; and (vii) asset impairment testing. We base our estimates and assumptions on historical experience, observable market inputs and on various other factors that we believe to be relevant under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results may differ from previously estimated amounts and such differences may be material to our financial statements. Additionally, changing economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. We review our estimates and assumptions periodically and the effects of revisions thereto are reflected in the period they occur or prospectively if the revised estimate affects future periods. |
Fair Value Measurements | Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We utilize the highest level of inputs available according to the following hierarchy in determining fair value: • Level 1 - Defined as observable inputs being quoted prices in active markets for identical assets; • Level 2 - Defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3 - Defined as unobservable inputs for which little or no market data exists, consistent with characteristics of the asset or liability that would be considered by market participants in a transaction to purchase or sell the asset or liability. Fair values of our marketable investment securities are measured on a recurring basis based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Fair values for our outstanding debt are based on quoted market prices in less active markets and are categorized as Level 2 measurements. Additionally, we use fair value measurements from time to time in connection with other investments, asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were no transfers between levels during the years ended December 31, 2019 and 2018 . As of December 31, 2019 and 2018 , the carrying amounts of our cash and cash equivalents, trade accounts receivable and contract assets, net, trade accounts payable, and accrued expenses and other current liabilities were equal to or approximated their fair value due to their short-term nature or proximity to current market rates. |
Revenue Recognition | Revenue Recognition Overview Revenue is recognized upon transfer of control of the promised goods or our performance of the services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We enter into contracts that may include various combinations of products and services, which are generally distinct and accounted for as separate performance obligations. We also recognize lease revenue which is derived from leases of property and equipment which, for operating leases, is reported in Services and other revenue in the Consolidated Statements of Operations and, for sales-type leases, is reported in Equipment revenue in the Consolidated Statements of Operations . Certain of our customer contracts contain embedded equipment leases, which we separate from non-lease components of the contract based on the relative standalone selling prices of the lease and non-lease components. Hughes Segment Our Hughes segment service contracts typically obligate us to provide substantially the same services on a recurring basis in exchange for fixed recurring fees over the term of the contract. We satisfy such performance obligations over time and recognize revenue ratably as services are rendered over the service period. Certain of our contracts with service obligations provide for fees based on usage, capacity or volume. We satisfy these performance obligations and recognize the related revenue at the point in time, or over the period, when the services are rendered. Our Hughes segment also sells and leases communications equipment to its customers. Revenue from equipment sales generally is recognized based upon shipment terms. Our equipment sales contracts typically include standard product warranties, but generally do not provide for returns or refunds. Revenue for extended warranties is recognized ratably over the extended warranty period. For contracts with multiple performance obligations, we typically allocate the contract’s transaction price to each performance obligation based on their relative standalone selling prices. When the standalone selling price is not observable, our primary method used to estimate standalone selling price is the expected cost plus a margin. Our contracts generally require customer payments to be made at or shortly after the time we transfer control of goods or perform the services. In addition to equipment and service offerings, our Hughes segment also enters into long-term contracts to design, develop, construct and install complex telecommunication networks for mobile system operators and enterprise customers. Revenue from such contracts is generally recognized over time as a measure of progress that depicts the transfer of control of the goods or services to the customer. Depending on the nature of the arrangement, we measure progress toward contract completion using an appropriate input method or output method. Under the input method, we recognize the transaction price as revenue based on the ratio of costs incurred to estimated total costs at completion. Under the output method, revenue and cost of sales are recognized as products are delivered based on the expected profit for the entire agreement. Profit margins on long-term contracts generally are based on estimates of revenue and costs at completion. We review and revise our estimates periodically and recognize related adjustments in the period in which the revisions are made. Estimated losses on contracts are recorded in the period in which they are identified. We generally receive interim payments as work progresses, although for some contracts, we may be entitled to receive an advance payment. ESS Segment Generally, our ESS segment service contracts with customers contain a single performance obligation and, therefore, there is no need to allocate the transaction price. We transfer control and recognize revenue for satellite services at the point in time or over the period when the services are rendered. Lease Revenue 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. A lease is classified as a sales-type lease if it meets the 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, we allocate consideration in the contract between lease and non-lease components based on their relative standalone selling prices. We elected an accounting policy to not separate the lease of equipment from related services in our HughesNet satellite internet service (the “HughesNet service”) contracts with customers and account for all revenue from such contracts as non-lease service revenue. Assets subject to operating leases remain in Property and equipment, net and continue to be depreciated. Assets subject to sales-type leases are derecognized from Property and equipment, net at lease commencement and a net investment in the lease asset is recognized in Trade accounts receivable and contract assets, net and Other non-current assets, net . Operating lease revenue is generally 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 are discounted using the interest rate implicit in the lease or our incremental borrowing rate if the interest rate implicit in the lease cannot be reasonably determined. We report revenue from sales-type leases at the commencement date in Equipment revenue and periodic interest income in Services and other revenue. We report operating lease revenue in Services and other revenue . Other Sales and Value Added Taxes, Universal Service Fees and other taxes that we collect concurrent with revenue producing activities are excluded from revenue, and included in A ccrued expenses and other current liabilities in the Consolidated Balance Sheets. Shipping and handling costs associated with outbound freight are accounted for as a fulfillment cost after control over a product has transferred to the customer and are included in Cost of sales - equipment in the Consolidated Statements of Operations at the time of shipment. Trade Accounts Receivable Trade accounts receivable includes amounts billed and currently due from customers and represents our unconditional rights to consideration arising from our performance under our customer contracts. Trade accounts receivable also includes amounts due from customers under our leasing arrangements. We make ongoing estimates relating to the collectability of our trade accounts receivable and maintain an allowance for estimated losses resulting from the inability of our customers to make the required payments. In determining the amount of the allowance, we consider historical levels of credit losses and make judgments about the creditworthiness of our customers based on ongoing credit evaluations. Past due trade accounts receivable balances are written off when our internal collection efforts have been unsuccessful. Bad debt expense related to our trade accounts receivable and other contract assets is included in Selling, general and administrative expenses in the Consolidated Statements of Operations . Contract Assets Contract assets represent revenue that we have recognized in advance of billing the customer and are included in Trade accounts receivable and contract assets, net or Other non-current assets, net in the Consolidated Balance Sheets based on the expected timing of customer payment. Our contract assets typically relate to our long-term contracts where we recognize revenue using the cost-based input method and the revenue recognized exceeds the amount billed to the customer. Contract Acquisition Costs Our contract acquisition costs represent incremental direct costs of obtaining a contract and consist primarily of sales incentives paid to employees and third-party representatives. When we determine that our contract acquisition costs are recoverable, we defer and amortize the costs over the contract term, or over the estimated life of the customer relationship if anticipated renewals are expected and the incentives payable upon renewal are not commensurate with the initial incentive. We amortize contract acquisition costs in proportion to the revenue to which the costs relate. We expense sales incentives as incurred if the expected amortization period is one year or less. Unamortized contract acquisition costs are included in Other non-current assets, net in the Consolidated Balance Sheets and related amortization expense is included in Selling, general and administrative expenses in the Consolidated Statements of Operations |
Cost of Sales | Cost of Sales - Services and Other Cost of sales - services and other in the Consolidated Statements of Operations primarily consists of costs of satellite capacity and services, hub infrastructure, customer care, wireline and wireless capacity and direct labor costs associated with the services provided and is generally charged to expense as incurred. Cost of Sales - Equipment Cost of sales - equipment in the Consolidated Statements of Operations primarily consists of inventory costs, including freight and royalties, and is generally recognized at the point in time control of the equipment is passed to the customer and related revenue is recognized. Additionally, customer-related research and development costs are incurred in connection with the specific requirements of a customer’s order; in such instances, the amounts for these customer funded development efforts are also included in Cost of sales - equipment in the Consolidated Statements of Operations. |
Stock-based Compensation Expense | Stock-based Compensation Expense Stock-based compensation expense is recognized based on the fair value of stock awards ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Compensation expense for awards with service conditions only is recognized on a straight-line basis over the requisite service period for the entire award. Compensation expense for awards subject to performance conditions is recognized only when satisfaction of the performance condition is probable. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included in Selling, general and administrative expenses in the Consolidated Statements of Operations |
Research and Development | Research and Development Research and development costs, not incurred in connection with customer requirements, are generally expensed when incurred. |
Debt Issuance Costs | Debt Issuance Costs Costs of issuing debt generally are deferred and amortized utilizing the effective interest method, with amortization included in Interest expense, net of amounts capitalized in the Consolidated Statements of Operations . We report unamortized debt issuance costs as a reduction of the related long-term debt in the Consolidated Balance Sheets . |
Foreign Currency | Foreign Currency The functional currency for certain of our foreign operations is determined to be the local currency. Accordingly, we translate assets and liabilities of these foreign entities from their local currencies to U.S. dollars using period-end exchange rates and translate income and expense accounts at monthly average rates. The resulting translation adjustments are reported as Foreign currency translation adjustments in the Consolidated Statements of Comprehensive Income (Loss) . Except in certain uncommon circumstances, we have not recorded deferred income taxes related to our foreign currency translation adjustments. Gains and losses resulting from the re-measurement of transactions denominated in foreign currencies are recognized in Foreign currency transaction gains (losses), net in the Consolidated Statements of Operations . |
Income Taxes | Income Taxes We are included in the consolidated federal income tax return of EchoStar. We recognize a provision or benefit for income taxes currently payable or receivable and for income tax amounts deferred to future periods based upon a separate return allocation method which results in income tax expense that approximates the expense that would result if we were a stand-alone entity. Deferred tax assets and liabilities reflect the effects of tax losses, credits, and the future income tax effects of temporary differences between U.S. GAAP carrying amounts of existing assets and liabilities and their respective tax bases and are measured using enacted tax rates that apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are offset by valuation allowances when we determine it is more likely than not that such deferred tax assets will not be realized in the foreseeable future. We determine deferred tax assets and liabilities separately for each taxing jurisdiction and report the net amount for each jurisdiction as a non-current asset or liability in the Consolidated Balance Sheets . From time to time, we engage in transactions where the income tax consequences are uncertain. We recognize tax benefits when, in management’s judgment, a tax filing position is more likely than not to be sustained if challenged by the tax authorities. For tax positions that meet the more-likely-than-not threshold, we may not recognize a portion of a tax benefit depending on management’s assessment of how the tax position will ultimately be settled. Unrecognized tax benefits generally are netted against the deferred tax assets associated with our net operating loss carryforwards. We adjust our estimates periodically based on ongoing examinations by, and settlements with, various taxing authorities, as well as changes in tax laws, regulations and precedent. Estimates of our uncertain tax positions are made based upon prior experience and are updated in light of changes in facts and circumstances. However, due to the uncertain and complex application of tax regulations, it is possible that the ultimate resolution of audits may result in liabilities which could be materially different from these estimates. In such an event, we will record additional income tax provision or benefit in the period in which such resolution occurs. We classify interest and penalties, if any, associated with our unrecognized tax benefits as a component of income tax provision or benefit. |
Lessee Accounting | 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, at contract inception, we assess 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. Our operating leases consist primarily of leases for office space, data centers and satellite ground facilities. Our finance leases consist primarily of leases for satellite capacity. 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 including any renewal options we are reasonably certain to exercise. 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 minimum 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 are based on the original lease terms. We report operating lease right-of-use assets in Operating lease right-of-use assets and operating lease liabilities in Accrued expenses and other current liabilities and Operating lease liabilities . We report finance lease right-of-use assets in Property and equipment, net and finance lease liabilities in Current portion of long-term debt and finance lease obligations and Long-term debt and finance lease obligations, net of current portion . Minimum lease payments included in the measurement of lease liabilities consist of (i) fixed lease payments for the non-cancelable 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 elected an accounting policy to not 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, which are recognized in operating expenses as 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. |
Business Combinations | Business Combinations We account for all business combinations that result in our control over another entity by using the acquisition method of accounting, which requires us to allocate the purchase price of the acquired business to the identifiable tangible and intangible assets acquired and liabilities assumed, including contingent consideration, and non-controlling interests, based upon their estimated fair values at the date of acquisition. The difference between the purchase price and the excess of the aggregate estimated fair values of assets acquired and liabilities assumed is recorded as goodwill. In determining the estimated fair values of assets acquired and liabilities assumed in a business combination, we use various recognized valuation methods including present value modeling, referenced market values, where available and cost based approaches. Valuations are performed by management or independent valuation specialists under management’s supervision, where appropriate. Accounting for business combinations requires us to make significant estimates and assumptions, especially at the acquisition date, including our estimates for intangible assets, contractual obligations assumed and contingent consideration, where applicable. While we believe the assumptions and estimates we have made are reasonable and appropriate, they are based in part on historical experience and information obtained from management of the acquired business and are inherently uncertain and subject to refinement. We believe that the estimated fair values assigned to the assets we have acquired and liabilities we have assumed are based on reasonable and appropriate assumptions. While we believe our estimates and assumptions are reasonable and appropriate, they are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets we have acquired and liabilities we have assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the estimated fair values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments would be recorded in the Consolidated Statements of Operations. In addition, results of operations of the acquired company are included in the our results from the date of the acquisition forward and include amortization expense arising from acquired intangible assets. We expense all costs as incurred related to or involved with an acquisition in Other, net , in the Consolidated Statements of Operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all liquid investments purchased with an original maturity of less than 90 days to be cash equivalents. Cash equivalents as of December 31, 2019 and 2018 primarily consisted of commercial paper, government bonds, corporate notes and money market funds. The amortized cost of these investments approximates their fair value. |
Securities | Marketable Investment Securities Debt Securities We account for our debt securities as available-for-sale or using the fair value option based on our investment strategy for the securities. For available-for-sale debt securities, we recognize periodic changes in the difference between fair value and amortized cost in Unrealized gains (losses) on available-for-sale securities in the Consolidated Statements of Comprehensive Income (Loss) . Gains and losses realized upon sales of available-for-sale debt securities are reclassified from other comprehensive income (loss) and recognized on the trade date in Gains (losses) on investments, net in the Consolidated Statements of Operations . We use the first-in, first-out (“FIFO”) method to determine the cost basis on sales of available-for-sale debt securities. Interest income from available-for-sale debt securities is reported in Interest income in the Consolidated Statements of Operations . We periodically evaluate our available-for-sale debt securities portfolio to determine whether any declines in the fair value of these securities are other-than-temporary. Our evaluation considers, among other things, (i) the length of time and extent to which the fair value of such security has been lower than amortized cost, (ii) market and company-specific factors related to the security and (iii) our intent and ability to hold the investment to maturity or when it recovers its value. We generally consider a decline to be other-than-temporary when (i) we intend to sell the security, (ii) it is more likely than not that we will be required to sell the security before maturity or when it recovers its value or (iii) we do not expect to recover the amortized cost of the security at maturity. Declines in the fair value of available-for-sale debt securities that are determined to be other-than-temporary are reclassified from other comprehensive income (loss) and recognized in Net income (loss) in the Consolidated Statements of Operations , thus establishing a new cost basis for the investment. From time to time we make strategic investments in marketable corporate debt securities. Generally, we elect to account for these debt securities using the fair value option because it results in consistency in accounting for unrealized gains and losses for all securities in our portfolio of strategic investments. When we elect the fair value option for investments in debt securities, we recognize periodic changes in fair value of these securities in Gains (losses) on investments, net in the Consolidated Statements of Operations . Interest income from these securities is reported in Interest income in the Consolidated Statements of Operations Equity Securities We account for our equity securities with readily determinable fair values at fair value and recognize periodic changes in the fair value in Gains (losses) on investments, net in the Consolidated Statements of Operations . We recognize dividend income on equity securities on the ex-dividend date and report such income in Other, net in the Consolidated Statements of Operations . Restricted Marketable Investment Securities Restricted marketable investment securities that are pledged as collateral for our letters of credit and surety bonds are included in Other non-current assets, net in the Consolidated Balance Sheets . Restricted marketable securities are accounted for in the same manner as marketable securities that are not restricted, but are presented differently in the Consolidated Balance Sheets due to the restrictions. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value. Cost of inventory is determined using the FIFO method and consists primarily of materials, direct labor and indirect overhead incurred in the procurement and manufacturing of our products. We use standard costing methodologies in determining the cost of certain of our finished goods and work-in-process inventories. We determine net realizable value using our best estimates of future use or recovery, considering the aging and composition of inventory balances, the effects of technological and/or design changes, forecasted future product demand based on firm or near-firm customer orders and alternative means of disposition of excess or obsolete items. We recognize losses within Cost of sales - equipment in the Consolidated Statements of Operations when we determine that the cost of inventory and commitments to purchase inventory exceed net realizable value. |
Property and Equipment | Property and Equipment Satellites Satellites are stated at cost, less accumulated depreciation. Depreciation is recorded on a straight-line basis over their estimated useful lives. The cost of our satellites includes construction costs, including the present value of in-orbit incentives payable to the satellite manufacturer, launch costs, capitalized interest and related insurance premiums. We depreciate our owned satellites on a straight-line basis over the estimated useful life of each satellite. We have satellites acquired under finance leases. The recorded costs of those satellites are the present values of all lease payments. We amortize our finance lease right-of-use satellites over their respective lease terms. 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 evaluate our satellites for impairment and test for recoverability whenever events or changes in circumstances indicate that their carrying value may not be recoverable. Certain anomalies may be considered a significant adverse change in the physical condition of a particular satellite. However, based on redundancies designed within each satellite, certain of these anomalies may not be considered to be significant events requiring a test of recoverability. We generally do not carry in-orbit insurance on our satellites and payloads 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. However, we may be required to carry insurance on specific satellites and payloads per the terms of certain agreements. We will continue to assess circumstances going forward and make insurance-related decisions on a case-by-case basis. Other Property and Equipment Other property and equipment are stated at cost, less accumulated depreciation. Depreciation is recorded on a straight-line basis over their estimated useful lives. Other property and equipment includes: land; buildings and improvements; furniture, fixtures, equipment and internal-use software; customer premises equipment; and construction in process. Costs related to the procurement and development of software for internal-use are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years. Repair and maintenance costs are charged to expense when incurred. |
Goodwill | Goodwill Goodwill represents the excess of the cost of acquired businesses over the estimated fair values assigned to the identifiable assets acquired and liabilities assumed. We test goodwill for impairment annually in our second fiscal quarter, or more frequently if indicators of impairment may exist. All of our goodwill is assigned to our Hughes segment, as it was generated through EchoStar’s acquisition of Hughes Communications, Inc. (“Hughes Communications”) and its subsidiaries in 2011 (the “Hughes Acquisition”), and the agreement with Al Yah Satellite Communications Company PrJSC (“Yahsat”) pursuant to which, in November 2019, Yahsat contributed its satellite communications services business in Brazil to one of our Brazilian subsidiaries in exchange for a 20% equity ownership interest in that subsidiary (the “Yahsat Brazil JV Transaction”). We consider qualitative factors to assess if it is more likely than not that the fair value for goodwill is below the carrying amount. We may also elect to bypass the qualitative assessment and perform a quantitative assessment. In conducting a qualitative assessment, we analyze a variety of events or factors that may influence the fair value of the reporting unit. There has been no impairment to date. Other Intangible Assets Our other intangible assets consist of customer relationships, patents, trademarks and licenses which are amortized using the straight-line method over their estimated useful lives . We evaluate the recoverability of intangible assets periodically by taking into account events or circumstances that indicate that the carrying amount of the assets may not be recoverable. |
Regulatory Authorizations | Regulatory Authorizations Finite Lived We have regulatory authorizations that are not related to the Federal Communications Commission (“FCC”) and have determined that they have finite lives due to uncertainties about the ability to extend or renew their terms. Finite lived regulatory authorizations are amortized over their estimated useful lives on a straight-line basis. Renewal costs are usually capitalized when they are incurred. Indefinite Lived We also have indefinite lived regulatory authorizations that primarily consist of FCC authorizations and certain other contractual or regulatory rights to use spectrum at specified orbital locations. We have determined that our FCC authorizations generally have indefinite useful lives based on the following: • FCC authorizations are non-depleting assets; • Renewal satellite applications generally are authorized by the FCC subject to certain conditions, without substantial cost under a stable regulatory, legislative and legal environment; • Expenditures required to maintain the authorization are not significant; and • We intend to use these authorizations indefinitely. Costs incurred to maintain or renew indefinite-lived regulatory authorizations are expensed as incurred. |
Equity Method Investments | Other Investments Equity Method Investments We use the equity method to account for investments when we have the ability to exercise significant influence on the operating decisions of the affiliate. Such investments are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in Equity in earnings (losses) of unconsolidated affiliates, net in the Consolidated Statements of Operations . During the fourth quarter of 2019, we changed our accounting policy to record our share of the net earnings or losses of these affiliates on a three-month lag. This change was immaterial to these Consolidated Financial Statements. Additionally, the carrying amount of such investments includes a component of goodwill when the cost of our investment exceeds the fair value of the underlying identifiable assets and liabilities of the affiliate. Lastly, dividends received from these affiliates reduces the carrying amount of our investment. Other Equity Investments We generally measure investments in non-publicly traded equity instruments without a readily determinable fair value at cost adjusted for observable price changes in orderly transactions for the identical or similar securities of the same issuer and changes resulting from impairments, if any. Other equity instruments are measured to determine their value based on observable market information. Impairment Considerations We periodically evaluate all of our other investments to determine whether (i) events or changes in circumstances have occurred that may have a significant adverse effect on the fair value of the investment and (ii) if there has been observable price changes in orderly transactions for identical or similar securities of the same issuer. We consider information if provided to us by our investees such as current financial statements, business plans, investment documentation, capitalization tables, liquidation waterfalls, and board materials; and we may make additional inquiries of investee management. Indicators of impairment may include, but are not limited to, unprofitable operations, material loss contingencies, changes in business strategy, changes in the investees’ enterprise value and changes in the investees’ investment pricing. When we determine that one of our other investments is impaired we reduce its carrying value to its estimated fair value and recognize the impairment loss in Gains (losses) on investments, net in the Consolidated Statements of Operations . Additionally, when there has been an observable price change to a cost method investment, we adjust the carrying amount of the investment to its then estimated fair value and recognize the investment gain or loss in Gains (losses) on investments, net in the Consolidated Statements of Operations . |
Externally Marketed Software | Externally Marketed Software Costs related to the procurement and development of externally marketed software are capitalized and amortized using the straight-line method over the estimated useful life of the software, not in excess of five years . Capitalized costs of externally marketed software are included in Other non-current assets, net in the Consolidated Balance Sheets . Externally marketed software generally is installed in the equipment we sell or lease to customers. We conduct software program reviews for externally marketed capitalized software costs at least annually, or as events and circumstances warrant such a review, to determine if capitalized software development costs are recoverable and to ensure that costs associated with programs that are no longer generating revenue are expensed. |
Contract Liabilities | Contract Liabilities Contract liabilities consist of advance payments and billings in excess of revenue recognized under customer contracts and are included in Contract liabilities or Other non-current liabilities in the Consolidated Balance Sheets based on the timing of when we expect to recognize revenue. We recognize contract liabilities as revenue after all revenue recognition criteria have been met. |
Recently Adopted and Not Yet Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Leases We adopted ASU No. 2016-02 - Leases (Topic 842) , as amended, codified as Accounting Standard Codification (“ASC 842”), as of January 1, 2019. The primary impact of ASC 842 on these Consolidated Financial Statements is the recognition of right-of-use assets and related liabilities in the Consolidated Balance Sheet for leases where we are the lessee. We elected to apply the requirements of the new standard prospectively on January 1, 2019 and did not restate these Consolidated Financial Statements for prior periods. Consequently, certain amounts reported in the Consolidated Balance Sheet as of December 31, 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 our results of operations or cash flows for the year ended December 31, 2019. 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 year ended December 31, 2019. Our adoption of ASC 842 resulted in the following adjustments to the Consolidated Balance Sheet effective January 1, 2019: Balance December 31, 2018 Adoption of ASC 842 Increase (Decrease) Balance January 1, 2019 Other current assets $ 152,666 $ (28 ) $ 152,638 Operating lease right-of-use assets — 117,006 117,006 Other non-current assets, net 236,449 (7,272 ) 229,177 Total assets 6,893,172 109,706 7,002,878 Accrued expenses and other current liabilities 157,654 14,444 172,098 Operating lease liabilities — 99,133 99,133 Other non-current 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 and Financial Instruments On January 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers and related amendments (collectively, the “New Revenue Standard”) . The New Revenue Standard established a comprehensive new model for revenue recognition, which is codified in Topic 606 (see Revenue Recognition above), and provided guidance for certain costs associated with customer contracts. We adopted the New Revenue Standard using the modified retrospective method for contracts that were not completed as of January 1, 2018. Accordingly, comparative information for prior periods has not been restated and continues to be reported under the accounting standards in effect for those periods. Upon adoption of the New Revenue Standard, we recognized the cumulative effect of its initial application as a net increase to Accumulated earnings in the Consolidated Balance Sheets of $16 million , net of related income taxes. The adoption of the New Revenue Standard also impacted the timing of recognition of certain fees charged to our customers in our consumer markets; however, the adoption has not had, and we do not expect it to have, a material impact on the overall timing or amount of revenue recognition. The primary impacts of the New Revenue Standard on our operating results relate to how we account for sales incentive costs. Historically, we charged sales incentives to expense as incurred, except for incentives related to the consumer business in our Hughes segment, which were initially deferred and subsequently amortized over the related service agreement term. Under the New Revenue Standard, we continue to defer incentives for our consumer business; however, we now amortize those incentives over the estimated customer life, which includes expected contract renewal periods. In addition, we now defer certain sales incentives related to other businesses in our Hughes segment and amortize those incentives over the related service agreement term. As a result of these changes, we have recognized additional contract acquisition costs on the Consolidated Balance Sheets and the costs generally are recognized as expenses over a longer period of time in the Consolidated Statements of Operations. The adoption of the New Revenue Standard by an unconsolidated entity had a similar impact on our investment in the unconsolidated entity, which we account for using the equity method. Additionally, on January 1, 2018, we prospectively adopted the applicable requirements of the New Investment Standard. The New Investment Standard substantially revises standards for the recognition, measurement and presentation of financial instruments, including requiring all equity investments, except for investments in consolidated subsidiaries and investments accounted for using the equity method, to be measured at fair value with changes in the fair value recognized through earnings. The New Investment Standard permits an entity to elect to measure an equity security without a readily determinable fair value at its cost, adjusted for changes resulting from impairments and observable price changes in orderly transactions for identical or similar securities of the same issuer. It also amends certain disclosure requirements associated with equity investments and the fair value of financial instruments. Upon adoption of the New Investment Standard on January 1, 2018, we recorded a $0.4 million charge to Accumulated earnings to include net unrealized losses on our marketable equity securities then designated as available for sale, which previously were recorded in Accumulated other comprehensive loss in the Consolidated Balance Sheets. For our equity investments without a readily determinable fair value that were previously accounted for using the cost method, we have elected to measure such securities at cost, adjusted for impairments and observable price changes. We expect our future net income or loss to be more volatile as a result of these changes in accounting for our investments in equity securities that were previously accounted for as available-for-sale or using the cost method. Our adoption of these standards impacted the referenced line items on the Statement of Operations and Statements of Comprehensive Income (Loss) as follows: For the year ended December 31, 2018 As Reported Adjustments Due to the Balances If We Had Not Adopted the New Standards New Revenue Standard New Investment Standard Statement of Operations: Revenue: Services and other revenue $ 1,561,426 $ 2,323 $ — $ 1,563,749 Total revenue 1,766,836 2,323 — 1,769,159 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) 559,838 2,738 — 562,576 Selling, general and administrative expenses 397,994 8,520 — 406,514 Total costs and expenses 1,588,854 11,258 — 1,600,112 Operating income (loss) 177,982 (8,935 ) — 169,047 Other income (expense): Interest expense, net of amounts capitalized (231,169 ) 539 — (230,630 ) Gains (losses) on investments, net 187 — (800 ) (613 ) Total other income (expense), net (171,447 ) 539 (800 ) (171,708 ) Income (loss) from continuing operations before income taxes 6,535 (8,396 ) (800 ) (2,661 ) Income tax benefit (provision), net (18,615 ) 2,139 — (16,476 ) Net income (loss) from continuing operations (12,080 ) (6,257 ) (800 ) (19,137 ) Net income (loss) 97,343 (6,257 ) (800 ) 90,286 Net income (loss) attributable to HSS 95,501 (6,257 ) (800 ) 88,444 Statement of Comprehensive Income (Loss): Net income (loss) 97,343 (6,257 ) (800 ) 90,286 Other comprehensive income (loss), net of tax: Unrealized gains (losses) on available-for-sale securities (665 ) — (28 ) (693 ) Other-than-temporary impairment loss on available-for-sale securities — — 828 828 Total other comprehensive income (loss), net of tax (32,774 ) — 800 (31,974 ) Comprehensive income (loss) 64,569 (6,257 ) — 58,312 Comprehensive income (loss) attributable to HSS 64,116 (6,257 ) — 57,859 Recently Issued Accounting Pronouncements Not Yet Adopted Credit Losses In June 2016, the FASB issued ASU No. 2016-13 , Measurement of Credit Losses on Financial Instruments , which introduces a new approach to estimate credit losses on certain types of financial instruments based on expected losses instead of incurred losses. It also modifies the impairment model for available-for-sale debt securities and provides a simplified accounting model for purchased financial assets with credit deterioration since their origination. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. We are currently assessing the impact of adopting this new accounting standard on these Consolidated Financial Statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Our adoption of ASC 842 resulted in the following adjustments to the Consolidated Balance Sheet effective January 1, 2019: Balance December 31, 2018 Adoption of ASC 842 Increase (Decrease) Balance January 1, 2019 Other current assets $ 152,666 $ (28 ) $ 152,638 Operating lease right-of-use assets — 117,006 117,006 Other non-current assets, net 236,449 (7,272 ) 229,177 Total assets 6,893,172 109,706 7,002,878 Accrued expenses and other current liabilities 157,654 14,444 172,098 Operating lease liabilities — 99,133 99,133 Other non-current 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 adoption of these standards impacted the referenced line items on the Statement of Operations and Statements of Comprehensive Income (Loss) as follows: For the year ended December 31, 2018 As Reported Adjustments Due to the Balances If We Had Not Adopted the New Standards New Revenue Standard New Investment Standard Statement of Operations: Revenue: Services and other revenue $ 1,561,426 $ 2,323 $ — $ 1,563,749 Total revenue 1,766,836 2,323 — 1,769,159 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) 559,838 2,738 — 562,576 Selling, general and administrative expenses 397,994 8,520 — 406,514 Total costs and expenses 1,588,854 11,258 — 1,600,112 Operating income (loss) 177,982 (8,935 ) — 169,047 Other income (expense): Interest expense, net of amounts capitalized (231,169 ) 539 — (230,630 ) Gains (losses) on investments, net 187 — (800 ) (613 ) Total other income (expense), net (171,447 ) 539 (800 ) (171,708 ) Income (loss) from continuing operations before income taxes 6,535 (8,396 ) (800 ) (2,661 ) Income tax benefit (provision), net (18,615 ) 2,139 — (16,476 ) Net income (loss) from continuing operations (12,080 ) (6,257 ) (800 ) (19,137 ) Net income (loss) 97,343 (6,257 ) (800 ) 90,286 Net income (loss) attributable to HSS 95,501 (6,257 ) (800 ) 88,444 Statement of Comprehensive Income (Loss): Net income (loss) 97,343 (6,257 ) (800 ) 90,286 Other comprehensive income (loss), net of tax: Unrealized gains (losses) on available-for-sale securities (665 ) — (28 ) (693 ) Other-than-temporary impairment loss on available-for-sale securities — — 828 828 Total other comprehensive income (loss), net of tax (32,774 ) — 800 (31,974 ) Comprehensive income (loss) 64,569 (6,257 ) — 58,312 Comprehensive income (loss) attributable to HSS 64,116 (6,257 ) — 57,859 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract with Customer, Asset and Liability | The following is a summary for our contract balances: As of December 31, 2019 December 31, 2018 Trade accounts receivable and contract assets, net: Sales and services $ 152,632 $ 154,415 Leasing 4,016 7,990 Total trade accounts receivable 156,648 162,405 Contract assets 63,649 55,295 Allowance for doubtful accounts (23,777 ) (16,604 ) Total trade accounts receivable and contract assets, net $ 196,520 $ 201,096 Contract liabilities: Current $ 101,060 $ 72,249 Non-current 10,572 10,133 Total contract liabilities $ 111,632 $ 82,382 |
Schedule of Allowance for Doubtful Accounts Activity | A summary of our allowance for doubtful accounts activity is as follows: Balance at Bad Debt Deductions Balance at For the years ended: December 31, 2019 $ 16,604 $ 30,027 $ (22,854 ) $ 23,777 December 31, 2018 12,027 24,984 (20,407 ) 16,604 December 31, 2017 12,752 9,551 (10,276 ) 12,027 |
Schedule of Disaggregation of Revenue | The following is our revenue from customer contracts disaggregated by primary geographic market and by segment: Hughes ESS Corporate and Other Consolidated For the year ended December 31, 2019 North America $ 1,527,823 $ 16,257 $ 2,143 $ 1,546,223 South and Central America 125,458 — — 125,458 All other 199,461 — 19,019 218,480 Total revenue $ 1,852,742 $ 16,257 $ 21,162 $ 1,890,161 For the year ended December 31, 2018 North America $ 1,444,628 $ 27,231 $ 4,555 $ 1,476,414 South and Central America 101,632 — — 101,632 All other 170,268 — 18,522 188,790 Total revenue $ 1,716,528 $ 27,231 $ 23,077 $ 1,766,836 For the year ended December 31, 2017 North America $ 1,204,750 $ 30,417 $ 4,030 $ 1,239,197 South and Central America 90,000 — — 90,000 All other 183,168 — 2,677 185,845 Total revenue $ 1,477,918 $ 30,417 $ 6,707 $ 1,515,042 The following is our revenue disaggregated by the nature of products and services and by segment: Hughes ESS Corporate and Other Consolidated For the year ended December 31, 2019 Services and other revenue: Services $ 1,535,966 $ 10,464 $ 878 $ 1,547,308 Lease revenue 50,073 5,793 20,284 76,150 Total services and other revenue 1,586,039 16,257 21,162 1,623,458 Equipment revenue: Equipment 115,052 — — 115,052 Design, development and construction services 145,646 — — 145,646 Lease revenue 6,005 — — 6,005 Total equipment revenue 266,703 — — 266,703 Total revenue $ 1,852,742 $ 16,257 $ 21,162 $ 1,890,161 For the year ended December 31, 2018 Services and other revenue: Services $ 1,313,059 $ 21,044 $ 1,351 $ 1,335,454 Lease revenue 198,059 6,187 21,726 225,972 Total services and other revenue 1,511,118 27,231 23,077 1,561,426 Equipment revenue: Equipment 119,657 — — 119,657 Design, development and construction services 85,753 — — 85,753 Total equipment revenue 205,410 — — 205,410 Total revenue $ 1,716,528 $ 27,231 $ 23,077 $ 1,766,836 |
Schedule of Operating Lease Revenue | The following is our lease revenue by type of lease: For the year ended December 31, 2019 Sales-type lease revenue: Revenue at lease commencement $ 6,005 Interest income 784 Total sales-type lease revenue 6,789 Operating lease revenue 75,366 Total lease revenue $ 82,155 |
Schedule of Sales-type Lease Revenue | The following is our lease revenue by type of lease: For the year ended December 31, 2019 Sales-type lease revenue: Revenue at lease commencement $ 6,005 Interest income 784 Total sales-type lease revenue 6,789 Operating lease revenue 75,366 Total lease revenue $ 82,155 |
Schedule of Operating Lease Payments to be Received | The following table presents future operating lease payments to be received as of December 31, 2019 : Amounts Year ending December 31, 2020 $ 36,560 2021 33,545 2022 31,666 2023 30,551 2024 28,444 After 2024 123,844 Total lease payments $ 284,610 |
Schedule of Property and Equipment Subject to Operating Leases | Property and equipment, net and Depreciation and amortization included the following amounts for assets subject to operating leases: As of For the year ended December 31, 2019 Cost Accumulated Depreciation Net Depreciation Expense Customer premises equipment $ 1,458,298 $ (1,074,968 ) $ 383,330 $ 197,870 Satellites 104,620 (31,360 ) 73,260 7,495 Total $ 1,562,918 $ (1,106,328 ) $ 456,590 $ 205,365 |
Lessee Accounting (Tables)
Lessee Accounting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | The Consolidated Balance Sheets include the following amounts for right-of-use assets and lease liabilities as of December 31, 2019 : Amounts Right-of-use assets: Operating $ 113,399 Finance 325,826 Total right-of-use assets $ 439,225 Lease liabilities: Current: Operating $ 14,112 Finance 486 Total current 14,598 Non-current: Operating 96,879 Finance 565 Total non-current 97,444 Total lease liabilities $ 112,042 |
Schedule of Lease Cost, Weighted Average Term, Discount Rates and Cash Flows | The following are the components of lease cost and weighted average lease terms and discount rates for operating and finance leases: For the year ended December 31, 2019 Lease cost: Operating lease cost $ 21,226 Finance lease cost: Amortization of right-of-use assets 26,489 Interest on lease liabilities 173 Total finance lease cost 26,662 Short-term lease cost 434 Variable lease cost 9,585 Total lease cost $ 57,907 As of Lease term and discount rate: Weighted average remaining lease term: Finance leases 2.1 years Operating leases 10.4 years Weighted average discount rate: Finance leases 11.9 % Operating leases 6.1 % The following table details cash flows from operating and finance leases: For the year ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19,654 Operating cash flows from finance leases 173 Financing cash flows from finance leases 654 |
Schedule of Operating Lease Liability Maturity | The following table presents future minimum lease payments of our lease liabilities as of December 31, 2019 : Operating Leases Finance Leases Total Year ending December 31, 2020 $ 19,907 $ 629 $ 20,536 2021 17,594 487 18,081 2022 15,379 96 15,475 2023 14,369 — 14,369 2024 13,286 — 13,286 After 2024 71,147 — 71,147 Total future minimum lease payments 151,682 1,212 152,894 Less: Interest (40,691 ) (161 ) (40,852 ) Total lease liabilities $ 110,991 $ 1,051 $ 112,042 |
Schedule of Financing Lease Liability Maturity | The following table presents future minimum lease payments of our lease liabilities as of December 31, 2019 : Operating Leases Finance Leases Total Year ending December 31, 2020 $ 19,907 $ 629 $ 20,536 2021 17,594 487 18,081 2022 15,379 96 15,475 2023 14,369 — 14,369 2024 13,286 — 13,286 After 2024 71,147 — 71,147 Total future minimum lease payments 151,682 1,212 152,894 Less: Interest (40,691 ) (161 ) (40,852 ) Total lease liabilities $ 110,991 $ 1,051 $ 112,042 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations | For the years ended December 31, 2019 2018 2017 Revenue: Services and other revenue - DISH Network $ 195,942 $ 305,229 $ 337,079 Services and other revenue - other 17,714 25,598 24,748 Total revenue 213,656 330,827 361,827 Costs and expenses: Cost of services and other 28,033 40,375 62,573 Selling, general and administrative expenses 6,903 159 43 Depreciation and amortization 85,926 124,564 126,380 Total costs and expenses 120,862 165,098 188,996 Operating income (loss) 92,794 165,729 172,831 Other income (expense): Interest expense (17,365 ) (28,552 ) (32,312 ) Total other income (expense), net (17,365 ) (28,552 ) (32,312 ) Income (loss) from discontinued operations before income taxes 75,429 137,177 140,519 Income tax benefit (provision), net (18,890 ) (27,754 ) 164,436 Net income (loss) from discontinued operations $ 56,539 $ 109,423 $ 304,955 The following table presents the aggregate carrying amounts of assets and liabilities of our discontinued operations of the BSS Business as of December 31, 2018. No assets or liabilities attributable to our discontinued operations were held by us as of December 31, 2019. As of Assets Prepaids and deposits $ 3,483 Current assets of discontinued operations 3,483 Property and equipment, net 660,270 Regulatory authorizations, net 65,615 Other non-current assets, net 16,576 Non-current assets of discontinued operations 742,461 Total assets of discontinued operations $ 745,944 Liabilities: Current portion of finance lease obligations $ 39,995 Accrued interest 1,572 Accrued expenses and other current liabilities 7,488 Current liabilities of discontinued operations 49,055 Finance lease obligations 187,002 Deferred tax liabilities, net 132,787 Other non-current liabilities 29,493 Non-current liabilities of discontinued operations 349,282 Total liabilities of discontinued operations $ 398,337 For the years ended December 31, 2019 2018 2017 Operating activities: Net income (loss) from discontinued operations $ 56,539 $ 109,423 $ 304,955 Depreciation and amortization 85,926 124,564 126,380 Investing activities: Expenditures for property and equipment 510 175 699 Financing activities: Payment of finance lease obligations 27,203 35,886 32,177 Payment of in-orbit incentive obligations 3,887 4,329 4,727 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | All assets and liabilities acquired from Yahsat in the Yahsat Brazil JV Transaction have been recorded at fair value. The following table summarizes the preliminary allocations of purchase price: Amounts Assets: Cash and cash equivalents $ 7,858 Other current assets 7,106 Property and equipment 88,358 Regulatory authorization 4,498 Goodwill 2,128 Other long-term assets 1,502 Total assets $ 111,450 Liabilities: Accounts payable and accrued liabilities $ 6,516 Other current liabilities 2,159 Total liabilities $ 8,675 Total purchase price (1) $ 102,775 (1) Based on the value determined for the equity ownership interest issued by our Brazilian subsidiary as consideration for the business acquired by us in the Yahsat Brazil JV Transaction. |
Schedule of Other Intangible Assets | The preliminary valuation of assets we acquired and liabilities we assumed in the Yahsat Brazil JV Transaction were derived using primarily unobservable Level 3 inputs, which require significant management judgment and estimation, and resulted in identifiable assets as follows: Amounts Satellite payload $ 50,738 Regulatory authorization 4,498 Total $ 55,236 Our other intangible assets consisted of the following: Customer Relationships Patents Trademarks and Licenses Total Cost: As of December 31, 2016 $ 270,300 $ 51,417 $ 29,700 $ 351,417 As of December 31, 2017 270,300 51,417 29,700 351,417 Write-off — (17 ) — (17 ) As of December 31, 2018 270,300 51,400 29,700 351,400 As of December 31, 2019 $ 270,300 $ 51,400 $ 29,700 $ 351,400 Accumulated amortization: As of December 31, 2016 $ (214,544 ) $ (47,848 ) $ (8,291 ) $ (270,683 ) Amortization expense (17,098 ) (3,569 ) (1,485 ) $ (22,152 ) As of December 31, 2017 (231,642 ) (51,417 ) (9,776 ) (292,835 ) Amortization expense (13,145 ) — (1,485 ) (14,630 ) Write-off — 17 — 17 As of December 31, 2018 (244,787 ) (51,400 ) (11,261 ) (307,448 ) Amortization expense (13,146 ) — (1,485 ) (14,631 ) As of December 31, 2019 $ (257,933 ) $ (51,400 ) $ (12,746 ) $ (322,079 ) Carrying amount: As of December 31, 2016 $ 55,756 $ 3,569 $ 21,409 $ 80,734 As of December 31, 2017 $ 38,658 $ — $ 19,924 $ 58,582 As of December 31, 2018 $ 25,513 $ — $ 18,439 $ 43,952 As of December 31, 2019 $ 12,367 $ — $ 16,954 $ 29,321 Weighted average useful life 8 years 6 years 20 years |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) and Related Tax Effects (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of reclassifications out of accumulated other comprehensive loss | The changes in the balances of Accumulated other comprehensive income (loss) by component were as follows: Cumulative Foreign Currency Translation Adjustments Unrealized Gain (Loss) On Available-For-Sale Securities Other Accumulated Other Comprehensive Income (Loss) Balance, December 31, 2017 $ (52,251 ) $ (648 ) $ 77 $ (52,822 ) Cumulative effect of accounting changes — 433 — 433 Balance, January 1, 2018 (52,251 ) (215 ) 77 (52,389 ) Other comprehensive income (loss) before reclassifications (30,549 ) (665 ) 41 (31,173 ) Amounts reclassified to net income (loss) — (212 ) — (212 ) Other comprehensive income (loss) (30,549 ) (877 ) 41 (31,385 ) Balance, December 31, 2018 (82,800 ) (1,092 ) 118 (83,774 ) Other comprehensive income (loss) before reclassifications (2,146 ) 1,817 (114 ) (443 ) Amounts reclassified to net income (loss) — (419 ) — (419 ) Other comprehensive income (loss) (2,146 ) 1,398 (114 ) (862 ) Balance, December 31, 2019 $ (84,946 ) $ 306 $ 4 $ (84,636 ) |
Marketable Investment Securit_2
Marketable Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Schedule of marketable investment securities | Our marketable investment securities portfolio consists of the following debt and equity instruments: As of December 31, 2019 2018 Marketable investment securities: Debt securities: Corporate bonds $ 411,706 $ 1,234,017 Other debt securities 240,888 374,106 Total debt securities 652,594 1,608,123 Equity securities 241 1,073 Total marketable investment securities $ 652,835 $ 1,609,196 |
Schedule of unrealized gains (losses) on marketable investment securities | The following table is a summary of our available-for-sale debt securities: Amortized Unrealized Estimated Cost Gains Losses Fair Value As of December 31, 2019 Corporate bonds $ 411,312 $ 395 $ (1 ) $ 411,706 Other debt securities 240,887 1 — 240,888 Total available-for-sale debt securities $ 652,199 $ 396 $ (1 ) $ 652,594 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 summarized in the table below. Certain of our investments in debt and equity instruments have historically experienced volatility. As of December 31, 2019 and 2018 , we did not have any investments that were categorized within Level 3 of the fair value hierarchy. As of December 31, 2019 2018 Level 1 Level 2 Total Level 1 Level 2 Total Debt securities: Corporate bonds $ — $ 411,706 $ 411,706 $ — $ 1,234,017 $ 1,234,017 Other debt securities — 240,888 240,888 — 374,106 374,106 Total debt securities — 652,594 652,594 — 1,608,123 1,608,123 Equity securities 241 — 241 1,073 — 1,073 Total marketable investment securities $ 241 $ 652,594 $ 652,835 $ 1,073 $ 1,608,123 $ 1,609,196 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory, Net [Abstract] | |
Schedule of inventory | Inventory consists of the following: As of December 31, 2019 2018 Raw materials $ 4,240 $ 4,856 Work-in-process 6,979 13,901 Finished goods 68,255 56,622 Total inventory $ 79,474 $ 75,379 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Our property and equipment,net consisted of the following: As of December 31, 2019 2018 Property and equipment, net: Satellites, net $ 1,127,521 $ 1,209,930 Other property and equipment, net 730,060 711,981 Total property and equipment, net $ 1,857,581 $ 1,921,911 Satellites, net consisted of the following: Depreciable Life (In Years) As of December 31, 2019 2018 Satellites, net: Satellites - owned 7 to 15 $ 1,516,006 $ 1,459,955 Satellites - acquired under finance leases 10 to 15 381,162 385,592 Total satellites 1,897,168 1,845,547 Accumulated depreciation (769,647 ) (635,617 ) Total satellites, net $ 1,127,521 $ 1,209,930 Depreciation and amortization expense and capitalized interest associated with our satellites consisted of the following: For the years ended December 31, 2019 2018 2017 Depreciation and amortization expense: Satellites - owned $ 110,685 $ 104,967 $ 89,728 Satellites acquired under finance leases 25,755 20,269 9,962 Total depreciation and amortization expense $ 136,440 $ 125,236 $ 99,690 Capitalized interest $ 1,019 $ 6,179 $ 22,828 Depreciable Life (In Years) As of December 31, 2019 2018 Other property and equipment, net: Land — $ 13,328 $ 13,366 Buildings and improvements 1 to 40 73,692 114,153 Furniture, fixtures, equipment and other 1 to 12 783,727 725,924 Customer premises equipment 2 to 4 1,377,914 1,159,977 Construction in progress 50,864 28,087 Total other property and equipment 2,299,525 2,041,507 Accumulated depreciation (1,569,465 ) (1,329,526 ) Other property and equipment, net $ 730,060 $ 711,981 |
Schedule of satellites | Satellite Segment Launch Date Nominal Degree Orbital Location (Longitude) Depreciable Life (In Years) Owned: SPACEWAY 3 (1) Hughes August 2007 95 W 10 EchoStar XVII Hughes July 2012 107 W 15 EchoStar XIX Hughes December 2016 97.1 W 15 Al Yah 3 (2) Hughes January 2018 20 W 7 EchoStar IX (3) ESS August 2003 121 W 12 Finance 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 the Hughes Acquisition. (2) Upon consummation of our joint venture with Yahsat in Brazil in November 2019, we acquired the Brazilian Ka-band payload on this satellite. Depreciable life represents the remaining useful life as of November 2019. (3) We own the Ka-band and Ku-band payloads on this satellite. |
Schedule of depreciation expense | For the years ended December 31, 2019 2018 2017 Other property and equipment depreciation expense: Buildings and improvements $ 4,409 $ 9,715 $ 15,249 Furniture, fixtures, equipment and other 89,868 79,500 67,162 Customer premises equipment 194,906 174,749 146,562 Total depreciation expense $ 289,183 $ 263,964 $ 228,973 |
Regulatory Authorizations (Tabl
Regulatory Authorizations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of estimated future amortization of intangible assets | As of December 31, 2019 , our estimated future amortization of our regulatory authorizations with finite lives was as follows: Amount For the years ending December 31, 2020 $ 942 2021 942 2022 942 2023 942 2024 942 Thereafter 7,653 Total $ 12,363 As of December 31, 2019 , our estimated future amortization of other intangible assets was as follows: Amount For the years ending December 31, 2020 $ 10,981 2021 4,356 2022 1,485 2023 1,485 2024 1,485 Thereafter 9,529 Total $ 29,321 |
Schedule of finite lived and indefinite lived intangible assets by major class | Our regulatory authorizations consisted of the following: Finite lived Cost Accumulated Amortization Total Indefinite lived Total As of December 31, 2016 $ — $ — $ — $ 406,043 $ 406,043 Impairment — — — (6,000 ) (6,000 ) As of December 31, 2017 — — — 400,043 400,043 As of December 31, 2018 — — — 400,043 400,043 Additions 12,833 — 12,833 (43 ) 12,790 Amortization expense — (161 ) (161 ) — (161 ) Currency translation adjustment (309 ) — (309 ) — (309 ) As of December 31, 2019 $ 12,524 $ (161 ) $ 12,363 $ 400,000 $ 412,363 Weighted average useful life 14 years |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets | The preliminary valuation of assets we acquired and liabilities we assumed in the Yahsat Brazil JV Transaction were derived using primarily unobservable Level 3 inputs, which require significant management judgment and estimation, and resulted in identifiable assets as follows: Amounts Satellite payload $ 50,738 Regulatory authorization 4,498 Total $ 55,236 Our other intangible assets consisted of the following: Customer Relationships Patents Trademarks and Licenses Total Cost: As of December 31, 2016 $ 270,300 $ 51,417 $ 29,700 $ 351,417 As of December 31, 2017 270,300 51,417 29,700 351,417 Write-off — (17 ) — (17 ) As of December 31, 2018 270,300 51,400 29,700 351,400 As of December 31, 2019 $ 270,300 $ 51,400 $ 29,700 $ 351,400 Accumulated amortization: As of December 31, 2016 $ (214,544 ) $ (47,848 ) $ (8,291 ) $ (270,683 ) Amortization expense (17,098 ) (3,569 ) (1,485 ) $ (22,152 ) As of December 31, 2017 (231,642 ) (51,417 ) (9,776 ) (292,835 ) Amortization expense (13,145 ) — (1,485 ) (14,630 ) Write-off — 17 — 17 As of December 31, 2018 (244,787 ) (51,400 ) (11,261 ) (307,448 ) Amortization expense (13,146 ) — (1,485 ) (14,631 ) As of December 31, 2019 $ (257,933 ) $ (51,400 ) $ (12,746 ) $ (322,079 ) Carrying amount: As of December 31, 2016 $ 55,756 $ 3,569 $ 21,409 $ 80,734 As of December 31, 2017 $ 38,658 $ — $ 19,924 $ 58,582 As of December 31, 2018 $ 25,513 $ — $ 18,439 $ 43,952 As of December 31, 2019 $ 12,367 $ — $ 16,954 $ 29,321 Weighted average useful life 8 years 6 years 20 years |
Schedule of estimated future amortization of intangible assets | As of December 31, 2019 , our estimated future amortization of our regulatory authorizations with finite lives was as follows: Amount For the years ending December 31, 2020 $ 942 2021 942 2022 942 2023 942 2024 942 Thereafter 7,653 Total $ 12,363 As of December 31, 2019 , our estimated future amortization of other intangible assets was as follows: Amount For the years ending December 31, 2020 $ 10,981 2021 4,356 2022 1,485 2023 1,485 2024 1,485 Thereafter 9,529 Total $ 29,321 |
Other Investments (Tables)
Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Entities | Our Other investments, net consisted of the following: As of December 31, 2019 2018 Other investments, net: Equity method investments $ 102,689 $ 110,931 Other equity investments 7,351 15,438 Total other investments, net $ 110,040 $ 126,369 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt and Lease Obligation [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: Effective Interest Rate As of December 31, 2019 2018 Carrying Amount Fair Value Carrying Amount Fair Value 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% 750,000 825,308 750,000 695,865 Senior Unsecured Notes: 7 5/8% Senior Unsecured Notes due 2021 8.062% 900,000 963,783 900,000 934,902 6 5/8% Senior Unsecured Notes due 2026 6.688% 750,000 833,903 750,000 696,353 Less: Unamortized debt issuance costs (10,832 ) — (16,757 ) — Subtotal 2,389,168 $ 2,622,994 3,304,079 $ 3,259,816 Finance lease obligations 1,051 1,705 Total debt and finance lease obligations 2,390,219 3,305,784 Less: Current portion (486 ) (919,582 ) Long-term debt and finance lease obligations, net of current portion $ 2,389,733 $ 2,386,202 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income (loss) before income taxes | The components of Income (loss) from continuing operations before income taxes in the Consolidated Statements of Operations are as follows: For the years ended December 31, 2019 2018 2017 Domestic $ 68,574 $ 40,385 $ (73,572 ) Foreign (154,395 ) (33,850 ) (27,596 ) Income (loss) from continuing operations before income taxes $ (85,821 ) $ 6,535 $ (101,168 ) |
Schedule of components of the benefit (provision) for income taxes | The components of Income tax benefit (provision), net , in the Consolidated Statements of Operations are as follows: For the years ended December 31, 2019 2018 2017 Current benefit (provision), net: Federal $ (4,525 ) $ (914 ) $ (638 ) State 2,584 5,081 (2,753 ) Foreign (1,415 ) (1,894 ) (2,020 ) Total current benefit (provision), net (3,356 ) 2,273 (5,411 ) Deferred benefit (provision), net: Federal (1,292 ) (3,460 ) 108,144 State (10,370 ) (17,656 ) (3,699 ) Foreign 3,423 228 (5,268 ) Total deferred benefit (provision), net (8,239 ) (20,888 ) 99,177 Total income tax benefit (provision), net $ (11,595 ) $ (18,615 ) $ 93,766 |
Schedule of income tax rate reconciliation | Our actual tax provisions reconcile to the amounts computed by applying the statutory federal tax rate to Income (loss) from continuing operations before income taxes in the Consolidated Statements of Operations as follows: For the years ended December 31, 2019 2018 2017 Statutory rate $ 18,023 $ (1,372 ) $ 35,409 State income taxes, net of federal provision (benefit) (4,148 ) (13,642 ) (3,788 ) Permanent differences (5,888 ) (976 ) 911 Tax credits 5,137 4,935 3,239 Valuation allowance (35,974 ) (11,583 ) (17,325 ) Enactment of Tax Cuts and Job Act of 2017 — — 75,617 Rates different than statutory 11,182 4,051 (358 ) Other 73 (28 ) 61 Total income tax benefit (provision), net $ (11,595 ) $ (18,615 ) $ 93,766 |
Schedule of deferred tax assets and liabilities | The components of our deferred tax assets and liabilities are as follows: As of December 31, 2019 2018 Deferred tax assets: Net operating losses, credit and other carryforwards $ 92,304 $ 103,230 Unrealized losses on investments, net 931 6,997 Accrued expenses 20,079 21,622 Stock-based compensation 5,096 1,613 Other assets 25,952 7,707 Total deferred tax assets 144,362 141,169 Valuation allowance (102,201 ) (49,183 ) Deferred tax assets after valuation allowance 42,161 91,986 Deferred tax liabilities: Depreciation and amortization (414,046 ) (443,063 ) Other liabilities (1,216 ) (1,290 ) Total deferred tax liabilities (415,262 ) (444,353 ) Total net deferred tax liabilities $ (373,101 ) $ (352,367 ) Net deferred tax asset foreign jurisdiction $ 7,215 $ 3,581 Net deferred tax liability domestic (380,316 ) (355,948 ) Total net deferred tax liabilities $ (373,101 ) $ (352,367 ) |
Schedule of reconciliation of unrecognized tax benefits | The reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows: For the years ended December 31, 2019 2018 2017 Unrecognized tax benefit balance as of beginning of period: $ 7,866 $ 7,950 $ 7,057 Additions based on tax positions related to the current year — 572 656 Additions based on tax positions related to prior years — — 237 Reductions based on tax positions related to prior years — (656 ) — Balance as of end of period $ 7,866 $ 7,866 $ 7,950 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of contractual obligations | The following table summarizes our contractual obligations from our continuing operations as of December 31, 2019 : Payments Due in the Year Ending December 31, Total 2020 2021 2022 2023 2024 Thereafter Long-term debt $ 2,400,000 $ — $ 900,000 $ — $ — $ — $ 1,500,000 Finance lease obligations 1,212 629 487 96 — — — Interest on long-term debt 726,377 157,688 123,375 89,063 89,063 89,063 178,125 Satellite-related obligations 256,869 124,334 24,078 11,365 11,241 11,969 73,882 Operating lease obligations 151,682 19,907 17,594 15,379 14,369 13,286 71,147 Total $ 3,536,140 $ 302,558 $ 1,065,534 $ 115,903 $ 114,673 $ 114,318 $ 1,823,154 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of revenue, EBITDA, and capital expenditures by operating segments | Hughes ESS Corporate and Other Consolidated Total For the year ended December 31, 2019 External revenue $ 1,852,742 $ 15,131 $ 22,288 $ 1,890,161 Intersegment revenue — 1,126 (1,126 ) — Total revenue $ 1,852,742 $ 16,257 $ 21,162 $ 1,890,161 EBITDA $ 625,660 $ 6,994 $ (27,855 ) $ 604,799 Capital expenditures $ 308,781 $ — $ — $ 308,781 For the year ended December 31, 2018 External revenue $ 1,716,169 $ 27,009 $ 23,658 $ 1,766,836 Intersegment revenue 359 222 (581 ) — Total revenue $ 1,716,528 $ 27,231 $ 23,077 $ 1,766,836 EBITDA $ 601,319 $ 17,764 $ (15,473 ) $ 603,610 Capital expenditures $ 390,108 $ (76,757 ) $ 15 $ 313,366 For the year ended December 31, 2017 External revenue $ 1,476,131 $ 30,405 $ 8,506 $ 1,515,042 Intersegment revenue 1,787 12 (1,799 ) — Total revenue $ 1,477,918 $ 30,417 $ 6,707 $ 1,515,042 EBITDA $ 475,222 $ 16,074 $ (42,415 ) $ 448,881 Capital expenditures $ 376,502 $ 20,026 $ — $ 396,528 |
Schedule of reconciliation of EBITDA to reported income (loss) before income taxes | The following table reconciles total consolidated EBITDA to reported Income (loss) from continuing operations before income taxes in the Consolidated Statements of Operations : For the Years Ended December 31, 2019 2018 2017 EBITDA $ 604,799 $ 603,610 $ 448,881 Interest income 57,730 59,104 31,952 Interest expense, net of amounts capitalized (272,218 ) (231,169 ) (213,166 ) Depreciation and amortization (464,797 ) (426,852 ) (370,418 ) Net income (loss) attributable to non-controlling interests (11,335 ) 1,842 1,583 Income (loss) from continuing operations before income taxes $ (85,821 ) $ 6,535 $ (101,168 ) |
Summary of total long-lived assets and revenue attributed to the North American and other foreign locations | The following table summarizes total long-lived assets attributed to the North America, South and Central America and other foreign locations: As of December 31, 2019 2018 Long-lived assets: North America $ 2,419,750 $ 2,585,421 South and Central America 310,172 192,860 All other 76,296 91,798 Total long-lived assets $ 2,806,218 $ 2,870,079 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results of operations | For the Three Months Ended December 31 September 30 June 30 March 31 Year Ended December 31, 2019 Total revenue $ 500,600 473,121 $ 461,241 $ 455,199 Operating income (loss) 45,088 45,433 13,962 46,469 Net income (loss) (62,828 ) (2,690 ) 1,609 23,032 Net income (loss) from continuing operations attributable to HSS (51,658 ) (14,275 ) (19,650 ) (498 ) Net income (loss) attributable to HSS (52,852 ) 107 977 22,226 Year Ended December 31, 2018 Total revenue $ 455,113 $ 457,650 $ 439,667 $ 414,406 Operating income (loss) 34,089 57,956 52,331 33,606 Net income (loss) 7,349 28,920 40,693 20,381 Net income (loss) from continuing operations attributable to HSS (12,513 ) 1,688 7,697 (10,794 ) Net income (loss) attributable to HSS 6,799 28,470 40,231 20,001 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | A summary of our Services and other revenue - DISH Network follows: For the years ended December 31, 2019 2018 2017 Services and other revenue - DISH Network $ 40,014 $ 60,926 $ 96,750 A summary of the related trade accounts receivable follows: As of December 31, 2019 2018 Trade accounts receivable - DISH Network $ 8,876 $ 13,550 A summary of our operating expenses - DISH Network follows: For the years ended December 31, 2019 2018 2017 Operating expenses - DISH Network $ 3,684 $ 3,602 $ 3,485 A summary of the related trade accounts payable follows: As of December 31, 2019 2018 Trade accounts payable - DISH Network $ 502 $ 752 |
Supplemental Guarantor and No_2
Supplemental Guarantor and Non-Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Guarantor and Non-Guarantor Financial Information | |
Schedule of consolidating balance sheet | Consolidating Balance Sheet as of December 31, 2019 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 1,057,903 $ 32,338 $ 49,194 $ — $ 1,139,435 Marketable investment securities 652,594 241 — — 652,835 Trade accounts receivable and contract assets, net — 129,722 66,798 — 196,520 Advances to affiliates 93,493 523,116 17,501 (502,218 ) 131,892 Other current assets 43 79,221 90,458 38 169,760 Total current assets 1,804,033 764,638 223,951 (502,180 ) 2,290,442 Property and equipment, net — 1,459,151 398,430 — 1,857,581 Operating lease right-of-use assets — 89,106 24,293 — 113,399 Goodwill — 504,173 2,780 — 506,953 Regulatory authorizations, net — 400,000 12,363 — 412,363 Other intangible assets, net — 29,321 — — 29,321 Other investments, net — 110,040 — — 110,040 Investment in subsidiaries 2,876,572 282,163 — (3,158,735 ) — Advances to affiliates, net 700 565,412 17,161 (563,514 ) 19,759 Other non-current assets, net 9,972 206,781 25,396 (9,972 ) 232,177 Total assets $ 4,691,277 $ 4,410,785 $ 704,374 $ (4,234,401 ) $ 5,572,035 Liabilities and Shareholders’ Equity Trade accounts payable $ — $ 102,744 $ 18,808 $ — $ 121,552 Current portion of long-term debt and finance lease obligations — — 486 — 486 Advances from affiliates, net 202,994 240,887 69,469 (502,218 ) 11,132 Contract liabilities — 96,485 4,575 — 101,060 Accrued expenses and other current liabilities 40,700 73,696 132,365 38 246,799 Total current liabilities 243,694 513,812 225,703 (502,180 ) 481,029 Long-term debt and finance lease obligations, net of current portion 2,389,168 — 565 — 2,389,733 Deferred tax liabilities, net — 390,288 — (9,972 ) 380,316 Operating lease liabilities — 77,366 19,513 — 96,879 Advances from affiliates, net — 488,488 99,006 (563,514 ) 23,980 Other non-current liabilities — 65,030 905 — 65,935 Total HSS shareholders’ equity 2,058,415 2,875,801 282,934 (3,158,735 ) 2,058,415 Non-controlling interests — — 75,748 — 75,748 Total liabilities and shareholders’ equity $ 4,691,277 $ 4,410,785 $ 704,374 $ (4,234,401 ) $ 5,572,035 Consolidating Balance Sheet as of December 31, 2018 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Assets Cash and cash equivalents $ 771,718 $ 46,353 $ 29,752 $ — $ 847,823 Marketable investment securities 1,608,123 1,073 — — 1,609,196 Trade accounts receivable and contract assets, net — 128,831 72,265 — 201,096 Advances to affiliates 109,433 536,600 27,174 (569,657 ) 103,550 Other current assets 72 94,695 58,460 (561 ) 152,666 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, net — 400,043 — — 400,043 Other intangible assets, net — 43,952 — — 43,952 Other investments, net — 126,369 — — 126,369 Investment in subsidiaries 3,362,589 192,370 — (3,554,959 ) — Advances to affiliates, net 700 86,280 — (86,980 ) — Deferred tax asset 54,001 — 3,581 (54,001 ) 3,581 Other non-current assets, net — 220,099 12,769 — 232,868 Non-current 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 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 Contract liabilities — 67,636 4,613 — 72,249 Accrued expenses and other current liabilities 43,410 71,111 43,694 (561 ) 157,654 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 of current portion 2,385,164 — 1,038 — 2,386,202 Deferred tax liabilities, net — 409,116 834 (54,001 ) 355,949 Advances from affiliates, net — — 120,418 (86,980 ) 33,438 Other non-current liabilities — 69,168 2,479 — 71,647 Non-current liabilities of discontinued operations — 349,282 — — 349,282 Total HSS shareholders’ equity 2,377,220 3,361,338 193,621 (3,554,959 ) 2,377,220 Non-controlling 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 consolidating statement of operations and comprehensive income (loss) | Consolidating Statement of Operations and Comprehensive Income (Loss) For the Year Ended December 31, 2019 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ 1,417,659 $ 242,257 $ (36,458 ) $ 1,623,458 Equipment revenue — 283,792 32,864 (49,953 ) 266,703 Total revenue — 1,701,451 275,121 (86,411 ) 1,890,161 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 438,214 151,493 (34,006 ) 555,701 Cost of sales - equipment (exclusive of depreciation and amortization) — 250,700 24,357 (49,954 ) 225,103 Selling, general and administrative expenses 6,720 375,309 88,291 (2,451 ) 467,869 Research and development expenses — 25,082 657 — 25,739 Depreciation and amortization — 391,464 73,333 — 464,797 Total costs and expenses 6,720 1,480,769 338,131 (86,411 ) 1,739,209 Operating income (loss) (6,720 ) 220,682 (63,010 ) — 150,952 Other income (expense): Interest income 54,341 4,441 2,798 (3,850 ) 57,730 Interest expense, net of amounts capitalized (190,685 ) (7,832 ) (77,551 ) 3,850 (272,218 ) Gains (losses) on investments, net 455 (8,919 ) — — (8,464 ) Equity in earnings (losses) of unconsolidated affiliates, net — (3,333 ) — — (3,333 ) Equity in earnings (losses) of subsidiaries, net 75,047 (135,258 ) — 60,211 — Foreign currency transaction gains (losses), net — (344 ) (9,511 ) — (9,855 ) Other, net (100 ) (351 ) (182 ) — (633 ) Total other income (expense), net (60,942 ) (151,596 ) (84,446 ) 60,211 (236,773 ) Income (loss) from continuing operations before income taxes (67,662 ) 69,086 (147,456 ) 60,211 (85,821 ) Income tax benefit (provision), net 38,120 (50,242 ) 527 — (11,595 ) Net income (loss) from continuing operations (29,542 ) 18,844 (146,929 ) 60,211 (97,416 ) Net income (loss) from discontinued operations — 56,539 — — 56,539 Net income (loss) (29,542 ) 75,383 (146,929 ) 60,211 (40,877 ) Less: Net income (loss) attributable to non-controlling interests — — (11,335 ) — (11,335 ) Net income (loss) attributable to HSS $ (29,542 ) $ 75,383 $ (135,594 ) $ 60,211 $ (29,542 ) Comprehensive income (loss): Net income (loss) $ (29,542 ) $ 75,383 $ (146,929 ) $ 60,211 $ (40,877 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 1,182 — 1,182 Unrealized gains (losses) on available-for-sale securities 1,817 — — — 1,817 Other — — (114 ) — (114 ) Amounts reclassified to net income (loss): Realized gains on available-for-sale securities (419 ) — — — (419 ) Equity in other comprehensive income (loss) of subsidiaries, net (2,260 ) (2,260 ) — 4,520 — Total other comprehensive income (loss), net of tax (862 ) (2,260 ) 1,068 4,520 2,466 Comprehensive income (loss) (30,404 ) 73,123 (145,861 ) 64,731 (38,411 ) Less: Comprehensive income (loss) attributable to non-controlling interests — — (8,007 ) — (8,007 ) Comprehensive income (loss) attributable to EchoStar Corporation $ (30,404 ) $ 73,123 $ (137,854 ) $ 64,731 $ (30,404 ) Consolidating Statement of Operations and Comprehensive Income (Loss) For the Year Ended December 31, 2018 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ 1,366,459 $ 232,873 $ (37,906 ) $ 1,561,426 Equipment revenue — 221,996 29,137 (45,723 ) 205,410 Total revenue — 1,588,455 262,010 (83,629 ) 1,766,836 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 447,622 147,952 (35,736 ) 559,838 Cost of sales - equipment (exclusive of depreciation and amortization) — 200,620 21,703 (45,723 ) 176,600 Selling, general and administrative expenses — 345,221 54,943 (2,170 ) 397,994 Research and development expenses — 27,570 — — 27,570 Depreciation and amortization — 374,297 52,555 — 426,852 Total costs and expenses — 1,395,330 277,153 (83,629 ) 1,588,854 Operating income (loss) — 193,125 (15,143 ) — 177,982 Other income (expense): Interest income 56,487 3,806 2,472 (3,661 ) 59,104 Interest expense, net of amounts capitalized (229,481 ) (866 ) (4,483 ) 3,661 (231,169 ) Gains (losses) on investments, net — 187 — — 187 Equity in earnings (losses) of unconsolidated affiliates, net — 4,874 — — 4,874 Equity in earnings (losses) of subsidiaries, net 224,405 (33,525 ) — (190,880 ) — Foreign currency transaction gains (losses), net — (104 ) (12,380 ) — (12,484 ) Other, net (970 ) 9,259 (248 ) — 8,041 Total other income (expense), net 50,441 (16,369 ) (14,639 ) (190,880 ) (171,447 ) Income (loss) from continuing operations before income taxes 50,441 176,756 (29,782 ) (190,880 ) 6,535 Income tax benefit (provision), net 45,060 (62,230 ) (1,445 ) — (18,615 ) Net income (loss) from continuing operations 95,501 114,526 (31,227 ) (190,880 ) (12,080 ) Net income (loss) from discontinued operations — 109,423 — — 109,423 Net income (loss) 95,501 223,949 (31,227 ) (190,880 ) 97,343 Less: Net income (loss) attributable to non-controlling interests — — 1,842 — 1,842 Net income (loss) attributable to HSS $ 95,501 $ 223,949 $ (33,069 ) $ (190,880 ) $ 95,501 Comprehensive income (loss): Net income (loss) $ 95,501 $ 223,949 $ (31,227 ) $ (190,880 ) $ 97,343 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — (31,938 ) — (31,938 ) Unrealized gains (losses) on available-for-sale securities (665 ) — — — (665 ) Other — — 41 — 41 Amounts reclassified to net income (loss): Realized gains on available-for-sale securities (212 ) — — — (212 ) Equity in other comprehensive income (loss) of subsidiaries, net (30,508 ) (30,508 ) — 61,016 — Total other comprehensive income (loss), net of tax (31,385 ) (30,508 ) (31,897 ) 61,016 (32,774 ) Comprehensive income (loss) 64,116 193,441 (63,124 ) (129,864 ) 64,569 Less: Comprehensive income (loss) attributable to non-controlling interests — — 453 — 453 Comprehensive income (loss) attributable to EchoStar Corporation $ 64,116 $ 193,441 $ (63,577 ) $ (129,864 ) $ 64,116 Consolidating Statement of Operations and Comprehensive Income (Loss) For the Year Ended December 31, 2017 (In thousands) HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Revenue: Services and other revenue $ — $ 1,127,177 $ 180,596 $ (32,220 ) $ 1,275,553 Equipment revenue — 255,610 27,205 (43,326 ) 239,489 Total revenue — 1,382,787 207,801 (75,546 ) 1,515,042 Costs and expenses: Cost of sales - services and other (exclusive of depreciation and amortization) — 395,566 131,177 (29,632 ) 497,111 Cost of sales - equipment (exclusive of depreciation and amortization) — 218,299 20,318 (43,178 ) 195,439 Selling, general and administrative expenses — 293,767 46,517 (2,736 ) 337,548 Research and development expenses — 31,745 — — 31,745 Depreciation and amortization — 332,103 38,315 — 370,418 Impairment of long-lived assets — 6,000 — — 6,000 Total costs and expenses — 1,277,480 236,327 (75,546 ) 1,438,261 Operating income (loss) — 105,307 (28,526 ) — 76,781 Other income (expense): Interest income 28,146 96,992 1,986 (95,172 ) 31,952 Interest expense, net of amounts capitalized (229,415 ) (80,543 ) 1,620 95,172 (213,166 ) Gains (losses) on investments, net — (1,574 ) — — (1,574 ) Equity in earnings (losses) of unconsolidated affiliates, net — 7,027 — — 7,027 Equity in earnings (losses) of subsidiaries, net 471,602 (35,142 ) — (436,460 ) — Foreign currency transaction gains (losses), net — (85 ) (1,073 ) — (1,158 ) Other, net — (871 ) (159 ) — (1,030 ) Total other income (expense), net 270,333 (14,196 ) 2,374 (436,460 ) (177,949 ) Income (loss) from continuing operations before income taxes 270,333 91,111 (26,152 ) (436,460 ) (101,168 ) Income tax benefit (provision), net 25,637 75,956 (7,827 ) — 93,766 Net income (loss) from continuing operations 295,970 167,067 (33,979 ) (436,460 ) (7,402 ) Net income (loss) from discontinued operations — 304,955 — — 304,955 Net income (loss) 295,970 472,022 (33,979 ) (436,460 ) 297,553 Less: Net income (loss) attributable to non-controlling interests — — 1,583 — 1,583 Net income (loss) attributable to HSS $ 295,970 $ 472,022 $ (35,562 ) $ (436,460 ) $ 295,970 Comprehensive income (loss): Net income (loss) $ 295,970 $ 472,022 $ (33,979 ) $ (436,460 ) $ 297,553 Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 7,196 — 7,196 Unrealized gains (losses) on available-for-sale securities (273 ) (2,007 ) — — (2,280 ) Other — — 92 — 92 Amounts reclassified to net income (loss): Other-than-temporary impairment loss on available-for-sale securities — 3,298 — — 3,298 Equity in other comprehensive income (loss) of subsidiaries, net 8,170 6,879 — (15,049 ) — Total other comprehensive income (loss), net of tax 7,897 8,170 7,288 (15,049 ) 8,306 Comprehensive income (loss) 303,867 480,192 (26,691 ) (451,509 ) 305,859 Less: Comprehensive income (loss) attributable to non-controlling interests — — 1,992 — 1,992 Comprehensive income (loss) attributable to EchoStar Corporation $ 303,867 $ 480,192 $ (28,683 ) $ (451,509 ) $ 303,867 |
Schedule of consolidating statement of cash flows | Consolidating Statement of Cash Flows for the Year Ended December 31, 2019 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ (29,542 ) $ 75,383 $ (146,929 ) $ 60,211 $ (40,877 ) Adjustments to reconcile net income (loss) to net cash flows from operating activities (26,693 ) 569,444 191,941 (60,211 ) 674,481 Net cash flows from operating activities (56,235 ) 644,827 45,012 — 633,604 Cash flows from investing activities: Purchases of marketable investment securities (709,350 ) — — — (709,350 ) Sales and maturities of marketable investment securities 1,665,269 — — — 1,665,269 Investments in unconsolidated affiliates — (7 ) 7,858 — 7,851 Dividend received from unconsolidated affiliate — 2,284 — — 2,284 Expenditures for property and equipment — (215,000 ) (94,291 ) — (309,291 ) Expenditures for externally marketed software — (29,310 ) — — (29,310 ) Purchases of regulatory authorizations — — (7,850 ) — (7,850 ) Investment in subsidiaries 307,424 (75,086 ) — (232,338 ) — Net cash flows from investing activities 1,263,343 (317,119 ) (94,283 ) (232,338 ) 619,603 Cash flows from financing activities: Repurchase and maturity of the 2019 Senior Secured Notes (920,923 ) — — — (920,923 ) Repayment of other long-term debt and finance lease obligations — (27,203 ) (2,144 ) — (29,347 ) Payment of in-orbit incentive obligations — (4,430 ) — — (4,430 ) Purchase of non-controlling interest — (2,666 ) (4,647 ) — (7,313 ) Other, net — — 1,172 — 1,172 Contribution (distributions) and advances (to) from parent, net — (307,424 ) 75,086 232,338 — Net cash flows from financing activities (920,923 ) (341,723 ) 69,467 232,338 (960,841 ) Effect of exchange rates on cash and cash equivalents — — (663 ) — (663 ) Net increase (decrease) in cash and cash equivalents 286,185 (14,015 ) 19,533 — 291,703 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 $ 1,057,903 $ 32,338 $ 50,081 $ — $ 1,140,322 Consolidating Statement of Cash Flows for the Year Ended December 31, 2018 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 95,501 $ 223,949 $ (31,227 ) $ (190,880 ) $ 97,343 Adjustments to reconcile net income (loss) to net cash flows from operating activities (160,236 ) 536,404 78,312 190,880 645,360 Net cash flows from operating activities (64,735 ) 760,353 47,085 — 742,703 Cash flows from investing activities: Purchases of marketable investment securities (2,063,042 ) — — — (2,063,042 ) Sales and maturities of marketable investment securities 909,996 — — — 909,996 Investments in unconsolidated affiliates — (100,991 ) — — (100,991 ) Expenditures for property and equipment — (304,376 ) (86,689 ) — (391,065 ) Refunds and other receipts related to property and equipment — 77,524 — — 77,524 Expenditures for externally marketed software — (31,639 ) — — (31,639 ) Payment for EchoStar XXI launch services — — (7,125 ) — (7,125 ) Investment in subsidiaries 305,669 (50,540 ) — (255,129 ) — Net cash flows from investing activities (847,377 ) (410,022 ) (93,814 ) (255,129 ) (1,606,342 ) Cash flows from financing activities: Repurchase and maturity of the 2019 Senior Secured Notes (70,173 ) — — — (70,173 ) Repayment of other long-term debt and finance lease obligations — (35,886 ) (5,133 ) — (41,019 ) Payment of in-orbit incentive obligations — (4,796 ) — — (4,796 ) Capital contribution from EchoStar 7,125 — — — 7,125 Contribution (distributions) and advances (to) from parent, net — (305,669 ) 50,540 255,129 — Net cash flows from financing activities (63,048 ) (346,351 ) 45,407 255,129 (108,863 ) Effect of exchange rates on cash and cash equivalents — — (2,233 ) — (2,233 ) Net increase (decrease) in cash and cash equivalents (975,160 ) 3,980 (3,555 ) — (974,735 ) 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 $ 771,718 $ 46,353 $ 30,548 $ — $ 848,619 Consolidating Statement of Cash Flows for the Year Ended December 31, 2017 HSS Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Total Cash flows from operating activities: Net income (loss) $ 295,970 $ 472,022 $ (33,979 ) $ (436,460 ) $ 297,553 Adjustments to reconcile net income (loss) to net cash flows from operating activities (206,014 ) (74,310 ) 43,340 436,460 199,476 Net cash flows from operating activities 89,956 397,712 9,361 — 497,029 Cash flows from investing activities: Purchases of marketable investment securities (535,476 ) — — — (535,476 ) Sales and maturities of marketable investment securities 259,263 — — — 259,263 Expenditures for property and equipment — (340,197 ) (61,341 ) — (401,538 ) Refunds and other receipts related to property and equipment — 4,311 — — 4,311 Expenditures for externally marketed software — (31,331 ) — — (31,331 ) Investment in subsidiaries (59,000 ) (63,000 ) — 122,000 — Net cash flows from investing activities (335,213 ) (430,217 ) (61,341 ) 122,000 (704,771 ) Cash flows from financing activities: Repayment of other long-term debt and finance lease obligations — (32,177 ) (4,886 ) — (37,063 ) Payment of in-orbit incentive obligations — (5,850 ) — — (5,850 ) Other, net 186 — 850 — 1,036 Contribution (distributions) and advances (to) from parent, net — 59,000 63,000 (122,000 ) — Net cash flows from financing activities 186 20,973 58,964 (122,000 ) (41,877 ) Effect of exchange rates on cash and cash equivalents — — 1,286 — 1,286 Net increase (decrease) in cash and cash equivalents (245,071 ) (11,532 ) 8,270 — (248,333 ) Cash and cash equivalents, including restricted amounts, beginning of period 1,991,949 53,905 25,833 — 2,071,687 Cash and cash equivalents, including restricted amounts, end of period $ 1,746,878 $ 42,373 $ 34,103 $ — $ 1,823,354 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table reconciles cash and cash equivalents and restricted cash, as presented in the Consolidated Balance Sheets to the total of the same as presented in the Consolidated Statements of Cash Flows: For the years ended December 31, 2019 2018 2017 Cash and cash equivalents, including restricted amounts, beginning of period: Cash and cash equivalents $ 847,823 $ 1,822,561 $ 2,070,964 Restricted cash 796 793 723 Total cash and cash equivalents, included restricted amounts, beginning of period $ 848,619 $ 1,823,354 $ 2,071,687 Cash and cash equivalents, including restricted amounts, end of period: Cash and cash equivalents $ 1,139,435 $ 847,823 $ 1,822,561 Restricted cash 887 796 793 Total cash and cash equivalents, included restricted amounts, end of period $ 1,140,322 $ 848,619 $ 1,823,354 |
Restrictions on Cash and Cash Equivalents | The following table reconciles cash and cash equivalents and restricted cash, as presented in the Consolidated Balance Sheets to the total of the same as presented in the Consolidated Statements of Cash Flows: For the years ended December 31, 2019 2018 2017 Cash and cash equivalents, including restricted amounts, beginning of period: Cash and cash equivalents $ 847,823 $ 1,822,561 $ 2,070,964 Restricted cash 796 793 723 Total cash and cash equivalents, included restricted amounts, beginning of period $ 848,619 $ 1,823,354 $ 2,071,687 Cash and cash equivalents, including restricted amounts, end of period: Cash and cash equivalents $ 1,139,435 $ 847,823 $ 1,822,561 Restricted cash 887 796 793 Total cash and cash equivalents, included restricted amounts, end of period $ 1,140,322 $ 848,619 $ 1,823,354 |
Schedule of Other Assets and Other Liabilities | Other Current Assets, Other Non-Current Assets, Net and Accrued Expenses and Other Current Liabilities Other current assets , Other non-current assets, net and Accrued expenses and other current liabilities consist of the following: As of December 31, 2019 2018 Other current assets: Trade accounts receivable - DISH Network $ 8,876 $ 13,550 Inventory 79,474 75,379 Prepaids and deposits 59,193 45,198 Other 22,217 18,539 Total other current assets $ 169,760 $ 152,666 Other non-current assets, net: Restricted cash $ 887 $ 796 Deferred tax assets, net 7,215 3,581 Capitalized software, net 101,786 96,760 Contract acquisition costs, net 96,723 104,013 Contract fulfillment costs, net 3,010 3,240 Other 22,556 28,059 Total other non-current assets, net $ 232,177 $ 236,449 Accrued expenses and other current liabilities: Trade accounts payable - DISH Network $ 502 $ 752 Accrued interest 32,184 45,131 Accrued compensation 42,846 42,796 Accrued taxes 18,493 7,609 Operating lease obligation 14,112 — Other 138,662 61,366 Total accrued expenses and other current liabilities $ 246,799 $ 157,654 |
Schedule of Noncash Investing and Financing Activities | The following table presents the non-cash investing and financing activities: For the years ended December 31, 2019 2018 2017 Property and equipment financed under finance lease obligations $ 349 $ 364 $ 8,484 Increase (decrease) in capital expenditures included in accounts payable, net 1,625 1,566 (2,522 ) Capitalized in-orbit incentive obligations — — 31,000 Non-cash net assets exchanged for HSS Tracking Stock ( Note 5 ) — — 190,221 Non-cash net assets exchanged for BSS Transaction ( Note 5 ) 332,699 — — Non-cash net assets received in exchange for a 20% ownership interest in our existing Brazilian subsidiary 94,918 — — Contribution from EchoStar in our existing Brazilian subsidiary 9,606 — — Transfer of launch service contracts from (to) EchoStar — — (145,114 ) Contribution of non-cash net assets pursuant to Share Exchange Agreement ( Note 1 ) — — 219,662 Contribution of EchoStar XIX satellite — — 514,448 |
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: For the years ended December 31, 2019 2018 2017 Cost of sales - equipment $ 24,495 $ 23,422 $ 27,899 Research and development expenses 25,739 27,570 31,745 |
Organization and Business Act_2
Organization and Business Activities (Details) | 1 Months Ended | 12 Months Ended | |||
May 31, 2019$ / sharesshares | Dec. 31, 2019segment$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2017 | Feb. 28, 2017 | |
Hughes Retail Preferred Tracking Stock | |||||
Number of business segments | segment | 2 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
EchoStar Technologies segment | DISH Network | Share Exchange Agreement | |||||
Hughes Retail Preferred Tracking Stock | |||||
Ownership interest acquired by related party (as a percent) | 100.00% | 100.00% | |||
Common Stock | BSS Corp. | |||||
Hughes Retail Preferred Tracking Stock | |||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||
Class A common stock | DISH Network | |||||
Hughes Retail Preferred Tracking Stock | |||||
Common stock, par value (in dollars per share) | $ 0.001 | ||||
Entity shares issued per acquiree share (in shares) | shares | 0.23523769 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Line Items] | ||
Amount of transfers between levels within the fair value hierarchy | $ 0 | $ 0 |
Weighted average useful life | 14 years | |
Satellites | Minimum | ||
Accounting Policies [Line Items] | ||
Depreciable Life (In Years) | 7 years | |
Satellites | Maximum | ||
Accounting Policies [Line Items] | ||
Depreciable Life (In Years) | 15 years | |
Computer software | Maximum | ||
Accounting Policies [Line Items] | ||
Software useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Schedule of Adjustments Related to ASC 842 Adoption (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other current assets | $ 152,638 | $ 152,666 | |
Operating lease right-of-use assets | $ 113,399 | 117,006 | |
Other non-current assets, net | 232,177 | 229,177 | 236,449 |
Total assets | 5,572,035 | 7,002,878 | 6,893,172 |
Accrued expenses and other current liabilities | 246,799 | 172,098 | 157,654 |
Operating lease liabilities | 96,879 | 99,133 | |
Other non-current liabilities | 67,776 | 71,647 | |
Total liabilities | 3,437,872 | 4,610,383 | 4,500,677 |
Total liabilities and shareholders’ equity | $ 5,572,035 | 7,002,878 | $ 6,893,172 |
Adoption of ASC 842 Increase (Decrease) | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other current assets | (28) | ||
Operating lease right-of-use assets | 117,006 | ||
Other non-current assets, net | (7,272) | ||
Total assets | 109,706 | ||
Accrued expenses and other current liabilities | 14,444 | ||
Operating lease liabilities | 99,133 | ||
Other non-current liabilities | (3,871) | ||
Total liabilities | 109,706 | ||
Total liabilities and shareholders’ equity | $ 109,706 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Schedule of Adjustments Related to New Accounting Pronouncement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Accumulated earnings (losses) | $ 664,415 | $ 693,957 | $ 664,415 | $ 693,957 | ||||||||
Total revenue | 500,600 | $ 473,121 | $ 461,241 | $ 455,199 | 455,113 | $ 457,650 | $ 439,667 | $ 414,406 | 1,890,161 | 1,766,836 | $ 1,515,042 | |
Selling, general and administrative expenses | 467,869 | 397,994 | 337,548 | |||||||||
Total costs and expenses | 1,739,209 | 1,588,854 | 1,438,261 | |||||||||
Operating income (loss) | 45,088 | 45,433 | 13,962 | 46,469 | 34,089 | 57,956 | 52,331 | 33,606 | 150,952 | 177,982 | 76,781 | |
Interest expense, net of amounts capitalized | (272,218) | (231,169) | (213,166) | |||||||||
Gains (losses) on investments, net | (8,464) | 187 | (1,574) | |||||||||
Total other income (expense), net | (236,773) | (171,447) | (177,949) | |||||||||
Income (loss) from continuing operations before income taxes | (85,821) | 6,535 | (101,168) | |||||||||
Income tax benefit (provision), net | (11,595) | (18,615) | 93,766 | |||||||||
Net income (loss) from continuing operations | (97,416) | (12,080) | (7,402) | |||||||||
Net income (loss) attributable to HSS | (52,852) | 107 | 977 | 22,226 | 6,799 | 28,470 | 40,231 | 20,001 | (29,542) | 95,501 | 295,970 | |
Net income (loss) | $ (62,828) | $ (2,690) | $ 1,609 | $ 23,032 | $ 7,349 | $ 28,920 | $ 40,693 | $ 20,381 | (40,877) | 97,343 | 297,553 | |
Unrealized gains (losses) on available-for-sale securities | 1,817 | (665) | (2,280) | |||||||||
Other-than-temporary impairment loss on available-for-sale securities | 0 | 0 | 3,298 | |||||||||
Total other comprehensive income (loss), net of tax | 2,466 | (32,774) | 8,306 | |||||||||
Comprehensive income (loss) | (38,411) | 64,569 | 305,859 | |||||||||
Comprehensive income (loss) attributable to HSS | (30,404) | 64,116 | 303,867 | |||||||||
Services and other revenue | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Total revenue | 1,623,458 | 1,561,426 | 1,275,553 | |||||||||
Cost of sales - services and other (exclusive of depreciation and amortization) | $ 555,701 | 559,838 | $ 497,111 | |||||||||
Accounting Standards Update 2016-01 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Accumulated earnings (losses) | $ (400) | |||||||||||
Gains (losses) on investments, net | (800) | |||||||||||
Total other income (expense), net | (800) | |||||||||||
Income (loss) from continuing operations before income taxes | (800) | |||||||||||
Net income (loss) from continuing operations | (800) | |||||||||||
Net income (loss) attributable to HSS | (800) | |||||||||||
Net income (loss) | (800) | |||||||||||
Unrealized gains (losses) on available-for-sale securities | (28) | |||||||||||
Other-than-temporary impairment loss on available-for-sale securities | 828 | |||||||||||
Total other comprehensive income (loss), net of tax | 800 | |||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Accumulated earnings (losses) | $ 16,000 | |||||||||||
Total revenue | 2,323 | |||||||||||
Selling, general and administrative expenses | 8,520 | |||||||||||
Total costs and expenses | 11,258 | |||||||||||
Operating income (loss) | (8,935) | |||||||||||
Interest expense, net of amounts capitalized | 539 | |||||||||||
Gains (losses) on investments, net | 0 | |||||||||||
Total other income (expense), net | 539 | |||||||||||
Income (loss) from continuing operations before income taxes | (8,396) | |||||||||||
Income tax benefit (provision), net | 2,139 | |||||||||||
Net income (loss) from continuing operations | (6,257) | |||||||||||
Net income (loss) attributable to HSS | (6,257) | |||||||||||
Net income (loss) | (6,257) | |||||||||||
Comprehensive income (loss) | (6,257) | |||||||||||
Comprehensive income (loss) attributable to HSS | (6,257) | |||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | Services and other revenue | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Total revenue | 2,323 | |||||||||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 2,738 | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Comprehensive income (loss) | 58,312 | |||||||||||
Comprehensive income (loss) attributable to HSS | 57,859 | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Total revenue | 1,769,159 | |||||||||||
Selling, general and administrative expenses | 406,514 | |||||||||||
Total costs and expenses | 1,600,112 | |||||||||||
Operating income (loss) | 169,047 | |||||||||||
Interest expense, net of amounts capitalized | (230,630) | |||||||||||
Income tax benefit (provision), net | (16,476) | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 | Services and other revenue | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Total revenue | 1,563,749 | |||||||||||
Cost of sales - services and other (exclusive of depreciation and amortization) | 562,576 | |||||||||||
Calculated Under Revenue Guidance In Effect Before Topic 606 And Accounting Standards Update 2016-01 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Unrealized gains (losses) on available-for-sale securities | (693) | |||||||||||
Other-than-temporary impairment loss on available-for-sale securities | 828 | |||||||||||
Total other comprehensive income (loss), net of tax | (31,974) | |||||||||||
Calculated Under Revenue Guidance In Effect Before Topic 606 And Accounting Standards Update 2016-01 [Member] | Accounting Standards Update 2014-09 And 2016-01 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Gains (losses) on investments, net | (613) | |||||||||||
Total other income (expense), net | (171,708) | |||||||||||
Income (loss) from continuing operations before income taxes | (2,661) | |||||||||||
Net income (loss) from continuing operations | (19,137) | |||||||||||
Net income (loss) attributable to HSS | 88,444 | |||||||||||
Net income (loss) | $ 90,286 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contract with Customer, Assets and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Revenue from External Customer [Line Items] | ||||
Trade accounts receivable | $ 156,648 | $ 162,405 | ||
Contract assets | 63,649 | 55,295 | ||
Allowance for doubtful accounts | (23,777) | (16,604) | $ (12,027) | $ (12,752) |
Total trade accounts receivable and contract assets, net | 196,520 | 201,096 | ||
Contract liabilities: | ||||
Current | 101,060 | 72,249 | ||
Non-current | 10,572 | 10,133 | ||
Total contract liabilities | 111,632 | 82,382 | ||
Sales and services | ||||
Revenue from External Customer [Line Items] | ||||
Trade accounts receivable | 152,632 | 154,415 | ||
Leasing | ||||
Revenue from External Customer [Line Items] | ||||
Trade accounts receivable | $ 4,016 | $ 7,990 |
Revenue Recognition- Schedule o
Revenue Recognition- Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 500,600 | $ 473,121 | $ 461,241 | $ 455,199 | $ 455,113 | $ 457,650 | $ 439,667 | $ 414,406 | $ 1,890,161 | $ 1,766,836 | $ 1,515,042 |
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,546,223 | 1,476,414 | 1,239,197 | ||||||||
Central and South America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 125,458 | 101,632 | 90,000 | ||||||||
All other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 218,480 | 188,790 | 185,845 | ||||||||
Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,547,308 | 1,335,454 | |||||||||
Lease revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 76,150 | 225,972 | |||||||||
Services and other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,623,458 | 1,561,426 | 1,275,553 | ||||||||
Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 115,052 | 119,657 | |||||||||
Design, development and construction services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 145,646 | 85,753 | |||||||||
Lease revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 6,005 | 205,410 | |||||||||
Total equipment revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 266,703 | 205,410 | 239,489 | ||||||||
Corporate and Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 21,162 | 23,077 | 6,707 | ||||||||
Corporate and Other | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 2,143 | 4,555 | 4,030 | ||||||||
Corporate and Other | Central and South America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Corporate and Other | All other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 19,019 | 18,522 | 2,677 | ||||||||
Corporate and Other | Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 878 | 1,351 | |||||||||
Corporate and Other | Lease revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 20,284 | 21,726 | |||||||||
Corporate and Other | Services and other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 21,162 | 23,077 | |||||||||
Corporate and Other | Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | |||||||||
Corporate and Other | Design, development and construction services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | |||||||||
Corporate and Other | Lease revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | |||||||||
Corporate and Other | Total equipment revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | ||||||||||
Hughes | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,852,742 | 1,716,169 | 1,476,131 | ||||||||
Hughes | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,852,742 | 1,716,528 | 1,477,918 | ||||||||
Hughes | Operating segments | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,527,823 | 1,444,628 | 1,204,750 | ||||||||
Hughes | Operating segments | Central and South America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 125,458 | 101,632 | 90,000 | ||||||||
Hughes | Operating segments | All other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 199,461 | 170,268 | 183,168 | ||||||||
Hughes | Operating segments | Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,535,966 | 1,313,059 | |||||||||
Hughes | Operating segments | Lease revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 50,073 | 198,059 | |||||||||
Hughes | Operating segments | Services and other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 1,586,039 | 1,511,118 | |||||||||
Hughes | Operating segments | Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 115,052 | 119,657 | |||||||||
Hughes | Operating segments | Design, development and construction services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 145,646 | 85,753 | |||||||||
Hughes | Operating segments | Lease revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 6,005 | 205,410 | |||||||||
Hughes | Operating segments | Total equipment revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 266,703 | ||||||||||
ESS | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 15,131 | 27,009 | 30,405 | ||||||||
ESS | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 16,257 | 27,231 | 30,417 | ||||||||
ESS | Operating segments | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 16,257 | 27,231 | 30,417 | ||||||||
ESS | Operating segments | Central and South America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
ESS | Operating segments | All other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | $ 0 | ||||||||
ESS | Operating segments | Services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 10,464 | 21,044 | |||||||||
ESS | Operating segments | Lease revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 5,793 | 6,187 | |||||||||
ESS | Operating segments | Services and other revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 16,257 | 27,231 | |||||||||
ESS | Operating segments | Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | |||||||||
ESS | Operating segments | Design, development and construction services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | 0 | |||||||||
ESS | Operating segments | Lease revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | 0 | $ 0 | |||||||||
ESS | Operating segments | Total equipment revenue | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenue | $ 0 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Contract Cost [Line Items] | ||
Capitalized Contract Cost, Gross | $ 113.6 | $ 104 |
Revenue recognized | 65.4 | 52 |
Remaining performance obligation | $ 857.7 | |
Expected percent recognized in next twelve months | 47.00% | |
Sales-type lease receivable | $ 6.5 | |
Contract Acquisition Costs | ||
Capitalized Contract Cost [Line Items] | ||
Capitalized contract cost amortization | $ 96.1 | $ 83 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Allowance for Doubtful Accounts Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at Beginning of Year | $ 16,604 | $ 12,027 | $ 12,752 |
Bad Debt Expense | 30,027 | 24,984 | 9,551 |
Deductions | (22,854) | (20,407) | (10,276) |
Balance at End of Year | $ 23,777 | $ 16,604 | $ 12,027 |
Revenue Recognition - Lease Inc
Revenue Recognition - Lease Income By Lease Type (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Sales-type lease revenue: | |
Revenue at lease commencement | $ 6,005 |
Total sales-type lease revenue | 784 |
Operating lease revenue | 6,789 |
Total lease revenue | 75,366 |
Sales-type lease receivable | 6,500 |
Lease Income | $ 82,155 |
Revenue Recognition - Lease I_2
Revenue Recognition - Lease Income Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Amounts | |
2020 | $ 36,560 |
2021 | 33,545 |
2022 | 31,666 |
2023 | 30,551 |
2024 | 28,444 |
After 2024 | 123,844 |
Total lease payments | $ 284,610 |
Revenue Recognition - Property
Revenue Recognition - Property and Equipment Subject to Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property and equipment | |||
Other property and equipment, net | $ 1,857,581 | $ 1,921,911 | |
Depreciation Expense | 289,183 | $ 263,964 | $ 228,973 |
Customer premises equipment | |||
Property and equipment | |||
Total other property and equipment | 1,458,298 | ||
Accumulated depreciation | (1,074,968) | ||
Other property and equipment, net | 383,330 | ||
Depreciation Expense | 197,870 | ||
Satellites | |||
Property and equipment | |||
Total other property and equipment | 104,620 | ||
Accumulated depreciation | (31,360) | ||
Other property and equipment, net | 73,260 | ||
Depreciation Expense | 7,495 | ||
Real estate | |||
Property and equipment | |||
Total other property and equipment | 1,562,918 | ||
Accumulated depreciation | (1,106,328) | ||
Other property and equipment, net | 456,590 | ||
Depreciation Expense | $ 205,365 |
Lessee Accounting - Schedule of
Lessee Accounting - Schedule of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Right-of-use assets: | ||
Operating | $ 113,399 | $ 117,006 |
Finance | 325,826 | |
Total right-of-use assets | 439,225 | |
Current: | ||
Operating | 14,112 | |
Finance | 486 | |
Total current | 14,598 | |
Non-current: | ||
Operating | 96,879 | $ 99,133 |
Finance | 565 | |
Total non-current | 97,444 | |
Total lease liabilities | 112,042 | |
Finance lease accumulated amortization | $ 57,300 |
Lessee Accounting - Schedule _2
Lessee Accounting - Schedule of Lease Cost, Weighted Average Term, Discount Rates and Cash Flows (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease cost: | |
Operating lease cost | $ 21,226 |
Finance lease cost: | |
Amortization of right-of-use assets | 26,489 |
Interest on lease liabilities | 173 |
Total finance lease cost | 26,662 |
Short-term lease cost | 434 |
Variable lease cost | 9,585 |
Total lease cost | $ 57,907 |
Weighted average remaining lease term: | |
Finance leases | 2 years 1 month 6 days |
Operating leases | 10 years 4 months 24 days |
Weighted average discount rate: | |
Finance leases | 11.90% |
Operating leases | 6.10% |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 19,654 |
Operating cash flows from finance leases | 173 |
Payment of finance lease obligations | 654 |
Right-of-use asset obtained in exchange for lease liability | $ 8,500 |
Lessee Accounting - Schedule _3
Lessee Accounting - Schedule of Lease Liability Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 19,907 |
2021 | 17,594 |
2022 | 15,379 |
2023 | 14,369 |
2024 | 13,286 |
After 2024 | 71,147 |
Total future minimum lease payments | 151,682 |
Less: Interest | (40,691) |
Total lease liabilities | 110,991 |
Finance Leases | |
2020 | 629 |
2021 | 487 |
2022 | 96 |
2023 | 0 |
2024 | 0 |
After 2024 | 0 |
Total future minimum lease payments | 1,212 |
Less: Interest | (161) |
Total lease liabilities | 1,051 |
Total | |
2020 | 20,536 |
2021 | 18,081 |
2022 | 15,475 |
2023 | 14,369 |
2024 | 13,286 |
After 2024 | 71,147 |
Total future minimum lease payments | 152,894 |
Less: Interest | (40,852) |
Total lease liabilities | $ 112,042 |
Discontinued Operations (Detail
Discontinued Operations (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
Mar. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 28, 2013transponder | Sep. 30, 2009transponder | Nov. 30, 2008transponder | |
Income Statement | |||||||||||||||
Total revenue | $ 500,600 | $ 473,121 | $ 461,241 | $ 455,199 | $ 455,113 | $ 457,650 | $ 439,667 | $ 414,406 | $ 1,890,161 | $ 1,766,836 | $ 1,515,042 | ||||
Net income (loss) from discontinued operations | 56,539 | 109,423 | 304,955 | ||||||||||||
Balance Sheet | |||||||||||||||
Current assets of discontinued operations | 0 | 3,483 | 0 | 3,483 | |||||||||||
Non-current assets of discontinued operations | 0 | 742,461 | 0 | 742,461 | |||||||||||
Finance lease obligations | 0 | 49,055 | 0 | 49,055 | |||||||||||
Total liabilities of discontinued operations | $ 0 | 349,282 | 0 | 349,282 | |||||||||||
Financing activities: | |||||||||||||||
Payment of finance lease obligations | 654 | ||||||||||||||
Payment of in-orbit incentive obligations | 4,430 | 4,796 | 5,850 | ||||||||||||
Transfer of launch service contracts from (to) EchoStar | 0 | 0 | (145,114) | ||||||||||||
Discontinued Operations | |||||||||||||||
Investing activities: | |||||||||||||||
Expenditures for property and equipment | 510 | 175 | 699 | ||||||||||||
Financing activities: | |||||||||||||||
Payment of finance lease obligations | 27,203 | 35,886 | 32,177 | ||||||||||||
Payment of in-orbit incentive obligations | 3,887 | 4,329 | 4,727 | ||||||||||||
BSS Business | Discontinued Operations | |||||||||||||||
Income Statement | |||||||||||||||
Total revenue | 213,656 | 330,827 | 361,827 | ||||||||||||
Cost of services and other | 28,033 | 40,375 | 62,573 | ||||||||||||
Selling, general and administrative expenses | 6,903 | 159 | 43 | ||||||||||||
Depreciation and amortization | 85,926 | 124,564 | 126,380 | ||||||||||||
Total costs and expenses | 120,862 | 165,098 | 188,996 | ||||||||||||
Operating income (loss) | 92,794 | 165,729 | 172,831 | ||||||||||||
Interest expense | (17,365) | (28,552) | (32,312) | ||||||||||||
Total other income (expense), net | (17,365) | (28,552) | (32,312) | ||||||||||||
Income (loss) from discontinued operations before income taxes | 75,429 | 137,177 | 140,519 | ||||||||||||
Income tax benefit (provision), net | (18,890) | (27,754) | 164,436 | ||||||||||||
Net income (loss) from discontinued operations | 56,539 | 109,423 | 304,955 | ||||||||||||
Balance Sheet | |||||||||||||||
Prepaids and deposits | 3,483 | 3,483 | |||||||||||||
Current assets of discontinued operations | 3,483 | 3,483 | |||||||||||||
Property and equipment, net | 660,270 | 660,270 | |||||||||||||
Regulatory authorizations, net | 65,615 | 65,615 | |||||||||||||
Other non-current assets, net | 16,576 | 16,576 | |||||||||||||
Non-current assets of discontinued operations | 742,461 | 742,461 | |||||||||||||
Total assets of discontinued operations | 745,944 | 745,944 | |||||||||||||
Current portion of finance lease obligations | 39,995 | 39,995 | |||||||||||||
Accrued interest | 1,572 | 1,572 | |||||||||||||
Accrued expenses and other current liabilities | 7,488 | 7,488 | |||||||||||||
Disposal Group, Including Discontinued Operation, Accrued Liabilities, Current | 49,055 | 49,055 | |||||||||||||
Finance lease obligations | 187,002 | 187,002 | |||||||||||||
Deferred tax liabilities, net | 132,787 | 132,787 | |||||||||||||
Other non-current liabilities | 29,493 | 29,493 | |||||||||||||
Non-current liabilities of discontinued operations | 349,282 | 349,282 | |||||||||||||
Total liabilities of discontinued operations | $ 398,337 | 398,337 | |||||||||||||
Services and other revenue | |||||||||||||||
Income Statement | |||||||||||||||
Total revenue | 1,623,458 | 1,561,426 | 1,275,553 | ||||||||||||
Services and other revenue | BSS Business | Discontinued Operations | |||||||||||||||
Income Statement | |||||||||||||||
Total revenue | 17,714 | 25,598 | 24,748 | ||||||||||||
Services and other revenue | DISH Network | BSS Business | Discontinued Operations | |||||||||||||||
Income Statement | |||||||||||||||
Total revenue | $ 195,942 | $ 305,229 | $ 337,079 | ||||||||||||
EchoStar XXIII | Other noncurrent assets | EOC | |||||||||||||||
Financing activities: | |||||||||||||||
Transfer of launch service contracts from (to) EchoStar | $ 62,000 | ||||||||||||||
TeleSat Transponder Agreement | Telesat Canada | |||||||||||||||
Financing activities: | |||||||||||||||
Number of DBS transponders available | transponder | 32 | ||||||||||||||
DISH Nimiq 5 Agreement | DISH Network | |||||||||||||||
Financing activities: | |||||||||||||||
Number of DBS transponders available | transponder | 32 | ||||||||||||||
Satellite Services Agreement | S E S Latin America | QuetzSat-1 | |||||||||||||||
Financing activities: | |||||||||||||||
Number of DBS transponders expected to receive services per agreement | transponder | 32 | ||||||||||||||
Satellite Capacity Lease Agreement | QuetzSat-1 | DISH Network | |||||||||||||||
Financing activities: | |||||||||||||||
Number of DBS transponders receiving services | transponder | 24 | ||||||||||||||
Number of DBS transponders receiving services sublease | transponder | 5 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Useful life | 11 years | ||
Goodwill | $ 506,953 | $ 504,173 | |
Yahsat | |||
Business Acquisition [Line Items] | |||
Transaction costs | 1,600 | ||
Useful life | 11 years | ||
Goodwill | $ 2,128 | ||
Goodwill, foreign currency translation gain (loss) | $ 700 | ||
Satellite payload | Yahsat | |||
Business Acquisition [Line Items] | |||
Useful life | 7 years |
Business Combination - Schedule
Business Combination - Schedule of Recognized Identified Assets and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Nov. 30, 2019 | Dec. 31, 2018 |
Assets: | |||
Goodwill | $ 506,953 | $ 504,173 | |
Yahsat | |||
Assets: | |||
Cash and cash equivalents | $ 7,858 | ||
Other current assets | 7,106 | ||
Property and equipment | 88,358 | ||
Goodwill | 2,128 | ||
Other long-term assets | 1,502 | ||
Total assets | 111,450 | ||
Liabilities: | |||
Accounts payable and accrued liabilities | 6,516 | ||
Other current liabilities | 2,159 | ||
Total liabilities | 8,675 | ||
Total purchase price | 102,775 | ||
Use Rights | Yahsat | |||
Assets: | |||
Regulatory authorization | $ 4,498 |
Business Combination - Schedu_2
Business Combination - Schedule of Other Intangible Assets (Details) - Yahsat $ in Thousands | Nov. 30, 2019USD ($) |
Satellite payload | |
Business Acquisition [Line Items] | |
Regulatory authorization | $ 50,738 |
Use Rights | |
Business Acquisition [Line Items] | |
Regulatory authorization | 4,498 |
Level 3 | |
Business Acquisition [Line Items] | |
Regulatory authorization | $ 55,236 |
Business Combination - Schedu_3
Business Combination - Schedule of Goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Business Combinations [Abstract] | |
January 1, 2019 balance | $ 504,173 |
December 31, 2019 balance | $ 506,953 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Reclassification out of accumulated other comprehensive income (loss) | ||||
Beginning balance | $ 2,392,495 | $ 2,299,244 | $ 1,755,023 | |
Cumulative effect of accounting changes | $ 16,206 | |||
Adjusted opening balance | 2,315,450 | |||
Total other comprehensive income (loss), net of tax | 2,466 | (32,774) | 8,306 | |
Ending balance | 2,134,163 | 2,392,495 | 2,299,244 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification out of accumulated other comprehensive income (loss) | ||||
Beginning balance | (83,774) | (52,822) | (60,719) | |
Cumulative effect of accounting changes | 433 | |||
Adjusted opening balance | (52,389) | |||
Other comprehensive income (loss) before reclassifications | (443) | (31,173) | ||
Amounts reclassified to net income (loss) | (419) | (212) | ||
Total other comprehensive income (loss), net of tax | (862) | (31,385) | ||
Ending balance | (84,636) | (83,774) | (52,822) | |
Cumulative Foreign Currency Translation Adjustments | ||||
Reclassification out of accumulated other comprehensive income (loss) | ||||
Beginning balance | (82,800) | (52,251) | ||
Adjusted opening balance | (52,251) | |||
Other comprehensive income (loss) before reclassifications | (2,146) | (30,549) | ||
Amounts reclassified to net income (loss) | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | (2,146) | (30,549) | ||
Ending balance | (84,946) | (82,800) | (52,251) | |
Unrealized Gain (Loss) On Available-For-Sale Securities | ||||
Reclassification out of accumulated other comprehensive income (loss) | ||||
Beginning balance | (1,092) | (648) | ||
Cumulative effect of accounting changes | 433 | |||
Adjusted opening balance | (215) | |||
Other comprehensive income (loss) before reclassifications | 1,817 | (665) | ||
Amounts reclassified to net income (loss) | (419) | (212) | ||
Total other comprehensive income (loss), net of tax | 1,398 | (877) | ||
Ending balance | 306 | (1,092) | (648) | |
Other | ||||
Reclassification out of accumulated other comprehensive income (loss) | ||||
Beginning balance | 118 | 77 | ||
Adjusted opening balance | $ 77 | |||
Other comprehensive income (loss) before reclassifications | (114) | 41 | ||
Amounts reclassified to net income (loss) | 0 | 0 | ||
Total other comprehensive income (loss), net of tax | (114) | 41 | ||
Ending balance | $ 4 | $ 118 | $ 77 |
Marketable Investment Securit_3
Marketable Investment Securities - Schedule of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Marketable investment securities and other investments | ||
Debt securities | $ 652,594 | $ 1,608,123 |
Equity securities | 241 | 1,073 |
Total marketable investment securities | 652,835 | 1,609,196 |
Corporate bonds | ||
Marketable investment securities and other investments | ||
Debt securities | 411,706 | 1,234,017 |
Other | ||
Marketable investment securities and other investments | ||
Debt securities | $ 240,888 | $ 374,106 |
Marketable Investment Securit_4
Marketable Investment Securities - Unrealized Gains (Losses) on Available-for-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Security | ||
Estimated Fair Value | $ 652,594 | $ 1,608,123 |
Corporate bonds | ||
Debt Security | ||
Amortized Cost | 411,312 | 1,235,110 |
Unrealized Gains | 395 | 230 |
Unrealized Losses | (1) | (1,323) |
Estimated Fair Value | 411,706 | 1,234,017 |
Other | ||
Debt Security | ||
Amortized Cost | 240,887 | 374,106 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | 0 | 0 |
Estimated Fair Value | 240,888 | 374,106 |
Total available-for-sale debt securities | ||
Debt Security | ||
Amortized Cost | 652,199 | 1,609,216 |
Unrealized Gains | 396 | 230 |
Unrealized Losses | (1) | (1,323) |
Estimated Fair Value | $ 652,594 | $ 1,608,123 |
Marketable Investment Securit_5
Marketable Investment Securities - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment [Line Items] | |||
Debt securities with contractual maturities of one year or less | $ 652,600 | ||
Debt securities with contractual maturities exceeding one year | 0 | ||
Other-than-temporary impairment loss on available-for-sale securities | $ 3,300 | ||
Proceeds from sale of available for sale debt securities | 311,800 | $ 50,000 | 8,900 |
Realized gain (loss) from available for sale securities | 400 | 200 | 0 |
Equity securities | 241 | 1,073 | |
Equity securities, FV-NI, realized gain (loss) | $ 800 | $ (800) | |
Equity Securities | |||
Investment [Line Items] | |||
Equity securities current | 1,100 | ||
Equity trading securities | 1,500 | ||
Unrealized loss on available for sale securities | $ 400 |
Marketable Investment Securit_6
Marketable Investment Securities - Schedule of Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value of marketable securities | ||
Debt securities | $ 652,594 | $ 1,608,123 |
Equity securities | 241 | 1,073 |
Total marketable investment securities | 652,835 | 1,609,196 |
Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 411,706 | 1,234,017 |
Other | ||
Fair value of marketable securities | ||
Debt securities | 240,888 | 374,106 |
Level 1 | ||
Fair value of marketable securities | ||
Debt securities | 0 | 0 |
Equity securities | 241 | 1,073 |
Total marketable investment securities | 241 | 1,073 |
Level 1 | Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 0 | 0 |
Level 1 | Other | ||
Fair value of marketable securities | ||
Debt securities | 0 | 0 |
Level 2 | ||
Fair value of marketable securities | ||
Debt securities | 652,594 | 1,608,123 |
Equity securities | 0 | 0 |
Total marketable investment securities | 652,594 | 1,608,123 |
Level 2 | Corporate bonds | ||
Fair value of marketable securities | ||
Debt securities | 411,706 | 1,234,017 |
Level 2 | Other | ||
Fair value of marketable securities | ||
Debt securities | $ 240,888 | $ 374,106 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Raw materials | $ 4,240 | $ 4,856 |
Work-in-process | 6,979 | 13,901 |
Finished goods | 68,255 | 56,622 |
Total inventory | $ 79,474 | $ 75,379 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Major Asset Class (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property and equipment | ||
Total satellites, net | $ 1,857,581 | |
Property and equipment, net | 1,857,581 | $ 1,921,911 |
Satellites, net | ||
Property and equipment | ||
Total satellites, net | 1,127,521 | |
Property and equipment, net | 1,209,930 | |
Other property and equipment, net | ||
Property and equipment | ||
Property and equipment, net | $ 730,060 | $ 711,981 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)satellitemi | Dec. 31, 2018USD ($) | |
Property and equipment | ||
Finance lease accumulated amortization | $ | $ 57.3 | |
Satellites | ||
Property and equipment | ||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 8 | |
Number of satellites utilized under capital lease | 3 | |
Satellites in geosynchronous orbit length above equator | mi | 22,300 | |
Finance lease accumulated amortization | $ | $ 56.4 | |
Capital lease accumulated amortization | $ | $ 31.5 | |
Satellites - owned | ||
Property and equipment | ||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 5 | |
BSS Transaction | Satellites - owned | ||
Property and equipment | ||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 6 | |
BSS Transaction | Satellites, Leased | ||
Property and equipment | ||
Number of satellites utilized under capital lease | 2 | |
Level 2 | ||
Property and equipment | ||
Obligations, fair value disclosure | $ | $ 57 | $ 57.9 |
Property and Equipment - Sche_2
Property and Equipment - Schedule of Satellite Breakdown (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property and equipment | ||
Finance lease, right-of-use asset, before accumulated amortization | $ 381,162 | |
Total satellites, net | 1,857,581 | |
Total satellites, net | 57,300 | |
Other property and equipment, net | 1,857,581 | $ 1,921,911 |
Satellites - owned | ||
Property and equipment | ||
Property, plant and equipment, gross | 1,516,006 | 1,459,955 |
Satellites - acquired under finance leases | ||
Property and equipment | ||
Property, plant and equipment, gross | 385,592 | |
Satellites | ||
Property and equipment | ||
Property, plant and equipment, gross | 1,845,547 | |
Total satellites | 1,897,168 | |
Accumulated depreciation | (769,647) | |
Accumulated depreciation | (635,617) | |
Total satellites, net | 1,127,521 | |
Total satellites, net | $ 56,400 | |
Other property and equipment, net | $ 1,209,930 | |
Maximum | Satellites - acquired under finance leases | ||
Property and equipment | ||
Depreciable Life (In Years) | 15 years | |
Maximum | Satellites | ||
Property and equipment | ||
Depreciable Life (In Years) | 15 years | |
Minimum | Satellites - acquired under finance leases | ||
Property and equipment | ||
Depreciable Life (In Years) | 10 years | |
Minimum | Satellites | ||
Property and equipment | ||
Depreciable Life (In Years) | 7 years |
Property and Equipment - Sche_3
Property and Equipment - Schedule of Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation expense | |||
Total depreciation expense | $ 289,183 | $ 263,964 | $ 228,973 |
Amortization of right-of-use assets | 26,489 | ||
Depreciation and amortization | 464,797 | 426,852 | 370,418 |
Interest Costs Capitalized | 1,019 | 6,179 | 22,828 |
Satellites | |||
Depreciation expense | |||
Total depreciation expense | 110,685 | 104,967 | 89,728 |
Amortization of right-of-use assets | 25,755 | ||
Capital leases, income statement, amortization expense | 20,269 | 9,962 | |
Depreciation and amortization | $ 136,440 | $ 125,236 | $ 99,690 |
Property and Equipment - Sche_4
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property and equipment | ||
Total other property and equipment | $ 2,299,525 | $ 2,041,507 |
Accumulated depreciation | (1,569,465) | (1,329,526) |
Other property and equipment, net | 730,060 | 711,981 |
Land | ||
Property and equipment | ||
Total other property and equipment | 13,328 | 13,366 |
Buildings and improvements | ||
Property and equipment | ||
Total other property and equipment | 73,692 | 114,153 |
Furniture, fixtures, equipment and other | ||
Property and equipment | ||
Total other property and equipment | 783,727 | 725,924 |
Customer rental equipment | ||
Property and equipment | ||
Total other property and equipment | 1,377,914 | 1,159,977 |
Construction in progress | ||
Property and equipment | ||
Total other property and equipment | $ 50,864 | $ 28,087 |
Maximum | Buildings and improvements | ||
Property and equipment | ||
Depreciable Life (In Years) | 40 years | |
Maximum | Furniture, fixtures, equipment and other | ||
Property and equipment | ||
Depreciable Life (In Years) | 12 years | |
Maximum | Customer rental equipment | ||
Property and equipment | ||
Depreciable Life (In Years) | 4 years | |
Minimum | Buildings and improvements | ||
Property and equipment | ||
Depreciable Life (In Years) | 1 year | |
Minimum | Furniture, fixtures, equipment and other | ||
Property and equipment | ||
Depreciable Life (In Years) | 1 year | |
Minimum | Customer rental equipment | ||
Property and equipment | ||
Depreciable Life (In Years) | 2 years |
Property and Equipment - Sche_5
Property and Equipment - Schedule of Depreciation Expense Breakdown (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property and equipment | |||
Total depreciation expense | $ 289,183 | $ 263,964 | $ 228,973 |
Buildings and improvements | |||
Property and equipment | |||
Total depreciation expense | 4,409 | 9,715 | 15,249 |
Furniture, fixtures, equipment and other | |||
Property and equipment | |||
Total depreciation expense | 89,868 | 79,500 | 67,162 |
Customer rental equipment | |||
Property and equipment | |||
Total depreciation expense | $ 194,906 | $ 174,749 | $ 146,562 |
Property and Equipment - Sche_6
Property and Equipment - Schedule of Satellite Fleet (Details) | 12 Months Ended |
Dec. 31, 2019 | |
SPACEWAY 3 | |
Property and equipment | |
Depreciable Life (In Years) | 10 years |
EchoStar XVII | |
Property and equipment | |
Depreciable Life (In Years) | 15 years |
EchoStar XIX | |
Property and equipment | |
Depreciable Life (In Years) | 15 years |
Al Yah 3 | |
Property and equipment | |
Depreciable Life (In Years) | 7 years |
EchoStar IX | |
Property and equipment | |
Depreciable Life (In Years) | 12 years |
Eutelsat 65 West A | |
Property and equipment | |
Depreciable Life (In Years) | 15 years |
Telesat T19V | |
Property and equipment | |
Depreciable Life (In Years) | 15 years |
EchoStar 105/SES-11 | |
Property and equipment | |
Depreciable Life (In Years) | 15 years |
Regulatory Authorizations - Sch
Regulatory Authorizations - Schedule of Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cost | |||||
Additions | $ 7,900 | ||||
Accumulated Amortization | |||||
Weighted average useful life | 14 years | ||||
Total | |||||
Carrying Amount | $ 29,321 | $ 43,952 | |||
Balance at the end of the period | 29,321 | 43,952 | |||
Indefinite lived | |||||
Balance at the beginning of the period | 400,043 | 400,043 | $ 406,043 | ||
Impairment | 0 | (6,000) | |||
Additions | (43) | ||||
Currency translation adjustment | 0 | ||||
Balance at the end of the period | 400,000 | 400,043 | 400,043 | ||
Total | |||||
Balance at the beginning of the period | 400,043 | 400,043 | 406,043 | ||
Impairment | (161) | (6,000) | |||
Additions | 12,790 | ||||
Currency translation adjustment | (309) | ||||
Balance at the end of the period | 412,363 | 400,043 | 400,043 | ||
Use Rights | |||||
Cost | |||||
Balance at the beginning of the period | 0 | 0 | 0 | ||
Impairment | 0 | 0 | |||
Additions | 12,833 | ||||
Currency translation adjustment | (309) | ||||
Balance at the end of the period | 12,524 | 0 | 0 | ||
Accumulated Amortization | |||||
Balance at beginning of the period | 0 | 0 | 0 | ||
Impairment | (161) | 0 | |||
Currency translation adjustment | 0 | ||||
Balance at end of the period | 161 | 0 | 0 | ||
Total | |||||
Carrying Amount | 12,363 | 0 | 0 | $ 0 | |
Impairment | (161) | 0 | |||
Additions | 12,833 | ||||
Currency translation adjustment | (309) | ||||
Balance at the end of the period | $ 12,363 | $ 0 | $ 0 |
Regulatory Authorizations (Deta
Regulatory Authorizations (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets gross, additions | $ 7,900 | ||||
Useful life | 11 years | ||||
Finite-lived Intangible Assets Acquired | $ 4,500 | ||||
Contractual rights to utilize certain frequencies | $ 400,000 | $ 400,043 | $ 400,043 | $ 406,043 | |
Impairment of long-lived assets | $ 0 | $ 0 | 6,000 | ||
Weighted average useful life | 14 years | ||||
Licensing Agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Useful life | 15 years | ||||
Contractual Rights | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Contractual rights to utilize certain frequencies | $ 6,000 | ||||
Impairment of long-lived assets | $ 6,000 |
Regulatory Authorizations - S_2
Regulatory Authorizations - Schedule of Finite Lived and Indefinite Lived Intangible Assets by Major Class (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 942 |
2021 | 942 |
2022 | 942 |
2023 | 942 |
2024 | 942 |
Thereafter | 7,653 |
Total | $ 12,363 |
Other Intangible Assets - Sched
Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Carrying Amount | $ 29,321 | $ 43,952 | ||
Weighted average useful life | 14 years | |||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | $ 270,300 | 270,300 | $ 270,300 | $ 270,300 |
Accumulated Amortization | (257,933) | (244,787) | (231,642) | (214,544) |
Amortization of Intangible Assets | (13,146) | (13,145) | (17,098) | |
Carrying Amount | $ 12,367 | 25,513 | 38,658 | 55,756 |
Weighted average useful life | 8 years | |||
Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | $ 51,400 | 51,400 | 51,417 | 51,417 |
Impairment | (17) | |||
Accumulated Amortization | (51,400) | (51,400) | (51,417) | (47,848) |
Amortization of Intangible Assets | 0 | 0 | (3,569) | |
Carrying Amount | $ 0 | 0 | 0 | 3,569 |
Weighted average useful life | 6 years | |||
Trademarks and Licenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | $ 29,700 | 29,700 | 29,700 | 29,700 |
Accumulated Amortization | (12,746) | (11,261) | (9,776) | (8,291) |
Amortization of Intangible Assets | (1,485) | (1,485) | (1,485) | |
Carrying Amount | $ 16,954 | 18,439 | 19,924 | 21,409 |
Weighted average useful life | 20 years | |||
Total | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Cost | $ 351,400 | 351,400 | 351,417 | 351,417 |
Impairment | (17) | |||
Accumulated Amortization | (322,079) | (307,448) | (292,835) | (270,683) |
Amortization of Intangible Assets | (14,631) | (14,630) | (22,152) | |
Carrying Amount | $ 29,321 | $ 43,952 | $ 58,582 | $ 80,734 |
Other Intangible Assets - Futur
Other Intangible Assets - Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Estimated future amortization of the entity's intangible assets | ||||
2020 | $ 942 | |||
2021 | 942 | |||
2022 | 942 | |||
2023 | 942 | |||
2024 | 942 | |||
Thereafter | 7,653 | |||
Carrying Amount | 29,321 | $ 43,952 | ||
Total | ||||
Estimated future amortization of the entity's intangible assets | ||||
2020 | 10,981 | |||
2021 | 4,356 | |||
2022 | 1,485 | |||
2023 | 1,485 | |||
2024 | 1,485 | |||
Thereafter | 9,529 | |||
Carrying Amount | $ 29,321 | $ 43,952 | $ 58,582 | $ 80,734 |
Other Investments - Schedule of
Other Investments - Schedule of Investments in Unconsolidated Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity method investments | $ 102,689 | $ 110,931 |
Other equity investments | 7,351 | 15,438 |
Total other investments, net | $ 110,040 | $ 126,369 |
Other Investments - Narrative (
Other Investments - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||||
Goodwill, equity method investment | $ 19,000,000 | |||
Dividends received from unconsolidated affiliates | 2,716,000 | $ 10,000,000 | $ 19,000,000 | |
Dividend received from unconsolidated affiliate | 2,284,000 | 0 | 0 | |
Reduction to investments, amount | (8,100,000) | 0 | 0 | |
Revenue from related parties | 40,014,000 | 60,926,000 | 96,750,000 | |
Deluxe | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue from related parties | 4,400,000 | 4,400,000 | $ 4,900,000 | |
Trade accounts receivable - DISH Network | $ 800,000 | 600,000 | 800,000 | |
Broadband Connectivity Solutions | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue from related parties | 9,000,000 | 700,000 | ||
Trade accounts receivable - DISH Network | 3,400,000 | $ 5,200,000 | $ 3,400,000 | |
Payments to acquire equity method investments | $ 100,000,000 | |||
Equity interest, percentage in joint venture | 20.00% | 20.00% |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Schedule of Debt and Finance Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt | ||
Subtotal | $ 2,389,168 | $ 3,304,079 |
Capital lease obligations | 1,051 | 1,705 |
Total debt and capital lease obligations | 2,390,219 | 3,305,784 |
Less: Current portion | (486) | (919,582) |
Long-term debt and finance lease obligations, net of current portion | 2,389,733 | 2,386,202 |
Fair Value | 2,622,994 | 3,259,816 |
7 5/8% Senior Unsecured Notes due 2021 | ||
Debt | ||
Carrying Amount | 900,000 | |
Less: Unamortized debt issuance costs | ||
Debt | ||
Less: Unamortized debt issuance costs | $ (10,832) | (16,757) |
Senior Secured Notes: | 6 1/2% Senior Secured Notes due 2019 | ||
Debt | ||
Interest rate | 6.50% | |
Effective Interest Rate | 6.959% | |
Carrying Amount | $ 0 | 920,836 |
Fair Value | 0 | 932,696 |
Amount of debt repurchased | $ 11,500 | 69,200 |
Senior Secured Notes: | 5 1/4% Senior Secured Notes due 2026 | ||
Debt | ||
Interest rate | 5.25% | |
Effective Interest Rate | 5.32% | |
Carrying Amount | $ 750,000 | 750,000 |
Fair Value | 825,308 | 695,865 |
Senior Secured Notes: | 6 5/8% Senior Unsecured Notes due 2026 | ||
Debt | ||
Carrying Amount | $ 750,000 | 750,000 |
Senior Unsecured Notes: | 7 5/8% Senior Unsecured Notes due 2021 | ||
Debt | ||
Interest rate | 7.625% | |
Effective Interest Rate | 8.062% | |
Carrying Amount | $ 900,000 | 900,000 |
Fair Value | $ 963,783 | 934,902 |
Senior Unsecured Notes: | 6 5/8% Senior Unsecured Notes due 2026 | ||
Debt | ||
Interest rate | 6.625% | |
Effective Interest Rate | 6.688% | |
Carrying Amount | $ 750,000 | 750,000 |
Fair Value | $ 833,903 | $ 696,353 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Obligations - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 27, 2016 | Jun. 01, 2011 | |
Debt and capital lease obligations | |||||
Amortization of debt issuance costs | $ 5,912 | $ 7,923 | $ 7,378 | ||
7 5/8% Senior Unsecured Notes due 2021 | |||||
Debt and capital lease obligations | |||||
Outstanding principal balance | 900,000 | ||||
Senior Secured Notes: | 6 1/2% Senior Secured Notes due 2019 | |||||
Debt and capital lease obligations | |||||
Principal amount of debt issuance | $ 1,100,000 | ||||
Interest rate | 6.50% | ||||
Issue price as percent of principal amount | 100.00% | ||||
Outstanding principal balance | $ 0 | 920,836 | |||
Debt redemption price as a percentage of the principal amount | 100.00% | ||||
Debt redeemed | $ 11,500 | 69,200 | |||
Loss on debt repurchased | $ 100 | 1,000 | |||
Purchase price as a percentage of aggregate principal amount at which notes may be required to be repurchased in the event of change of control | 101.00% | ||||
Percent of debt holders required to call debt | 25.00% | ||||
Senior Secured Notes: | 5 1/4% Senior Secured Notes due 2026 | |||||
Debt and capital lease obligations | |||||
Principal amount of debt issuance | $ 750,000 | ||||
Interest rate | 5.25% | ||||
Issue price as percent of principal amount | 100.00% | ||||
Outstanding principal balance | $ 750,000 | 750,000 | |||
Debt redemption price as a percentage of the principal amount | 100.00% | ||||
Purchase price as a percentage of aggregate principal amount at which notes may be required to be repurchased in the event of change of control | 101.00% | ||||
Percent of debt holders required to call debt | 25.00% | ||||
Senior Secured Notes: | 6 5/8% Senior Unsecured Notes due 2026 | |||||
Debt and capital lease obligations | |||||
Outstanding principal balance | $ 750,000 | 750,000 | |||
Senior Secured Notes: | Prior to August 1, 2020 | 5 1/4% Senior Secured Notes due 2026 | |||||
Debt and capital lease obligations | |||||
Debt redemption price as a percentage of the principal amount | 103.00% | ||||
Potential annual redemption, as a percentage of amount outstanding | 10.00% | ||||
Senior Unsecured Notes: | 7 5/8% Senior Unsecured Notes due 2021 | |||||
Debt and capital lease obligations | |||||
Principal amount of debt issuance | $ 900,000 | ||||
Interest rate | 7.625% | ||||
Issue price as percent of principal amount | 100.00% | ||||
Outstanding principal balance | $ 900,000 | 900,000 | |||
Debt redemption price as a percentage of the principal amount | 100.00% | ||||
Purchase price as a percentage of aggregate principal amount at which notes may be required to be repurchased in the event of change of control | 101.00% | ||||
Percent of debt holders required to call debt | 25.00% | ||||
Senior Unsecured Notes: | 6 5/8% Senior Unsecured Notes due 2026 | |||||
Debt and capital lease obligations | |||||
Principal amount of debt issuance | $ 750,000 | ||||
Interest rate | 6.625% | ||||
Issue price as percent of principal amount | 100.00% | ||||
Outstanding principal balance | $ 750,000 | $ 750,000 | |||
Debt redemption price as a percentage of the principal amount | 100.00% | ||||
Purchase price as a percentage of aggregate principal amount at which notes may be required to be repurchased in the event of change of control | 101.00% | ||||
Percent of debt holders required to call debt | 25.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of income (loss) before income taxes | |||
Domestic | $ 68,574,000 | $ 40,385,000 | $ (73,572,000) |
Foreign | (154,395,000) | (33,850,000) | (27,596,000) |
Income (loss) from continuing operations before income taxes | (85,821,000) | 6,535,000 | (101,168,000) |
Current benefit (provision): | |||
Federal | (4,525,000) | (914,000) | (638,000) |
State | 2,584,000 | 5,081,000 | (2,753,000) |
Foreign | (1,415,000) | (1,894,000) | (2,020,000) |
Total current provision | (3,356,000) | 2,273,000 | (5,411,000) |
Deferred benefit (provision): | |||
Federal | (1,292,000) | (3,460,000) | 108,144,000 |
State | (10,370,000) | (17,656,000) | (3,699,000) |
Foreign | 3,423,000 | 228,000 | (5,268,000) |
Total deferred benefit (provision) | (8,239,000) | (20,888,000) | 99,177,000 |
Income tax benefit (provision), net | (11,595,000) | (18,615,000) | 93,766,000 |
Actual tax provision reconciliation to the amounts computed by applying statutory Federal tax rate to income before taxes | |||
Statutory rate | 18,023,000 | (1,372,000) | 35,409,000 |
State income taxes, net of federal provision (benefit) | (4,148,000) | (13,642,000) | (3,788,000) |
Permanent differences | (5,888,000) | (976,000) | 911,000 |
Tax credits | (5,137,000) | (4,935,000) | (3,239,000) |
Valuation allowance | (35,974,000) | (11,583,000) | (17,325,000) |
Enactment of Tax Cuts and Job Act of 2017 | 0 | 0 | 75,617,000 |
Income tax provision on deemed mandatory repatriation of foreign earnings | 11,182,000 | 4,051,000 | (358,000) |
Other | 73,000 | (28,000) | 61,000 |
Total income tax benefit (provision), net | (11,595,000) | (18,615,000) | 93,766,000 |
Deferred tax assets: | |||
Net operating losses, credit and other carryforwards | 92,304,000 | 103,230,000 | |
Unrealized losses on investments, net | 931,000 | 6,997,000 | |
Accrued expenses | 20,079,000 | 21,622,000 | |
Stock-based compensation | 5,096,000 | 1,613,000 | |
Other assets | 25,952,000 | 7,707,000 | |
Total deferred tax assets | 144,362,000 | 141,169,000 | |
Valuation allowance | (102,201,000) | (49,183,000) | |
Deferred tax assets after valuation allowance | 42,161,000 | 91,986,000 | |
Deferred tax liabilities: | |||
Depreciation and amortization | (414,046,000) | (443,063,000) | |
Other liabilities | (1,216,000) | (1,290,000) | |
Total deferred tax liabilities | (415,262,000) | (444,353,000) | |
Total net deferred tax liabilities | (373,101,000) | (352,367,000) | |
Deferred tax in foreign subsidiaries | 7,200,000 | 3,600,000 | |
Provision for U.S. income taxes or foreign withholding taxes | 0 | ||
Change in enacted tax rate amount | 800,000 | 75,600,000 | |
Income tax provision on deemed mandatory repatriation of foreign earnings | 11,182,000 | 4,051,000 | (358,000) |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Balance as of beginning of period | 7,866,000 | 7,950,000 | 7,057,000 |
Additions based on tax positions related to the current year | 0 | 572,000 | 656,000 |
Additions based on tax positions related to prior years | 0 | 0 | 237,000 |
Reductions based on tax positions related to prior years | 0 | (656,000) | 0 |
Balance as of end of period | 7,866,000 | $ 7,950,000 | |
Unrecognized tax benefits if recognized, could affect our effective tax rate | 7,866,000 | 7,866,000 | |
Foreign | |||
Deferred tax assets: | |||
Deferred tax assets after valuation allowance | 7,215,000 | 3,581,000 | |
Deferred tax liabilities: | |||
Net operating loss carryforwards | 228,100,000 | ||
Federal | |||
Deferred tax liabilities: | |||
Total net deferred tax liabilities | (380,316,000) | $ (355,948,000) | |
Tax credit carryforwards | 8,400,000 | ||
State | |||
Deferred tax liabilities: | |||
Tax credit carryforwards | $ 2,300,000 |
Employee Benefit Plans - Employ
Employee Benefit Plans - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - Class A common stock - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee benefit plans | |||
Maximum fair value of capital stock permitted to be purchased by employees in any one year under ESPP | $ 25,000 | ||
Purchase price as percentage of closing market price on the last business day of each calendar quarter under ESPP | 85.00% | ||
Employee purchases of common stock under ESPP (in shares) | 280,000 | 235,000 | 169,000 |
EchoStar Corporation | |||
Employee benefit plans | |||
Number of shares authorized for issue (in shares) | 5,000,000 | ||
Number of shares that remain available for issuance (in shares) | 2,200,000 | ||
Required service period | 3 months |
Employee Benefit Plans - 401(k)
Employee Benefit Plans - 401(k) Employee Savings Plans (Details) - EchoStar 401(k) Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee benefit plans | |||
Contribution limit per employee, as a percentage of eligible compensation | 75.00% | ||
Employer matching contribution as a percentage of voluntary employee contributions under 401(k) plan | 50.00% | ||
Percentage of eligible compensation, matched 50% by employer | 6.00% | ||
Percentage of eligible compensation, matched 100% by employer | 3.00% | ||
Employer maximum annual contribution per employee under 401(k) plan | $ 7,500 | ||
Vesting percentage of matching contributions to eligible employees per year | 20.00% | ||
Vesting percentage of matching contributions to eligible employees after specified period of service | 100.00% | ||
Eligibility for employer matching contributions, period of service | 5 years | ||
Matching contributions, net of forfeitures, made by the company during the year | $ 5,100,000 | $ 5,000,000 | $ 5,100,000 |
Discretionary contributions, net of forfeitures, fair value, under 401(k) plan | $ 6,700,000 | $ 7,600,000 | $ 6,700,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies | |||
Total | $ 3,536,140 | ||
2020 | 302,558 | ||
2021 | 1,065,534 | ||
2022 | 115,903 | ||
2023 | 114,673 | ||
2024 | 114,318 | ||
Thereafter | 1,823,154 | ||
Satellite related expenses | 53,200 | $ 74,800 | $ 91,600 |
Long-term debt | |||
Commitments and Contingencies | |||
Total | 2,400,000 | ||
2020 | 0 | ||
2021 | 900,000 | ||
2022 | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
Thereafter | 1,500,000 | ||
Capital lease obligations | |||
Commitments and Contingencies | |||
Total | 1,212 | ||
2020 | 629 | ||
2021 | 487 | ||
2022 | 96 | ||
2023 | 0 | ||
2024 | 0 | ||
Thereafter | 0 | ||
Interest on long-term debt and capital lease obligations | |||
Commitments and Contingencies | |||
Total | 726,377 | ||
2020 | 157,688 | ||
2021 | 123,375 | ||
2022 | 89,063 | ||
2023 | 89,063 | ||
2024 | 89,063 | ||
Thereafter | 178,125 | ||
Satellite-related obligations | |||
Commitments and Contingencies | |||
Total | 256,869 | ||
2020 | 124,334 | ||
2021 | 24,078 | ||
2022 | 11,365 | ||
2023 | 11,241 | ||
2024 | 11,969 | ||
Thereafter | 73,882 | ||
Operating lease obligations | |||
Commitments and Contingencies | |||
Total | 151,682 | ||
2020 | 19,907 | ||
2021 | 17,594 | ||
2022 | 15,379 | ||
2023 | 14,369 | ||
2024 | 13,286 | ||
Thereafter | $ 71,147 |
Commitments and Contingencies_2
Commitments and Contingencies - Contingencies (Details) $ in Millions | Mar. 30, 2018USD ($) | Feb. 13, 2018claim | Aug. 07, 2017USD ($) | Feb. 14, 2017patent | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
License Fee Dispute | ||||||||
Loss Contingencies [Line Items] | ||||||||
Written assessments | $ 28.4 | |||||||
Realtime Data LLC | ||||||||
Loss Contingencies [Line Items] | ||||||||
Patents allegedly infringed | patent | 4 | |||||||
Pending claims validity challenged | claim | 1 | |||||||
Hughes Network Systems | License Fee Dispute | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency accrual | $ 80.2 | 80.2 | $ 1.3 | |||||
Hughes Network Systems | Elbit | ||||||||
Loss Contingencies [Line Items] | ||||||||
Estimated litigation liability | $ 33.7 | |||||||
Awarded to other party | 33 | |||||||
Subsidiaries | Hughes Network Systems | Elbit | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded value | $ 21.1 | |||||||
Attorney's fees sought | $ 13.9 | |||||||
Penalties | License Fee Dispute | ||||||||
Loss Contingencies [Line Items] | ||||||||
Written assessments | 4.1 | |||||||
Penalties | Hughes Network Systems | License Fee Dispute | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency accrual | 4.1 | 4.1 | ||||||
Interest and Interest on Penalties | License Fee Dispute | ||||||||
Loss Contingencies [Line Items] | ||||||||
Written assessments | 20.3 | |||||||
Interest and Interest on Penalties | Hughes Network Systems | License Fee Dispute | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency accrual | 72.1 | 72.1 | ||||||
Additional License Fee | License Fee Dispute | ||||||||
Loss Contingencies [Line Items] | ||||||||
Written assessments | 4 | |||||||
Additional License Fee | Hughes Network Systems | License Fee Dispute | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency accrual | $ 4 | $ 4 |
Segment Reporting - Revenue, Ca
Segment Reporting - Revenue, Capital Expenditures, and EBITDA (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of business segments | segment | 2 | ||||||||||
Segment Reporting | |||||||||||
Total revenue | $ 500,600 | $ 473,121 | $ 461,241 | $ 455,199 | $ 455,113 | $ 457,650 | $ 439,667 | $ 414,406 | $ 1,890,161 | $ 1,766,836 | $ 1,515,042 |
EBITDA | 604,799 | 603,610 | 448,881 | ||||||||
Capital expenditures | 308,781 | 313,366 | 396,528 | ||||||||
Interest income | 57,730 | 59,104 | 31,952 | ||||||||
Interest expense, net of amounts capitalized | (272,218) | (231,169) | (213,166) | ||||||||
Depreciation and amortization | (464,797) | (426,852) | (370,418) | ||||||||
Less: Net income (loss) attributable to non-controlling interests | (11,335) | 1,842 | 1,583 | ||||||||
Income (loss) from continuing operations before income taxes | (85,821) | 6,535 | (101,168) | ||||||||
Hughes | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,852,742 | 1,716,169 | 1,476,131 | ||||||||
ESS | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 15,131 | 27,009 | 30,405 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 22,288 | 23,658 | 8,506 | ||||||||
Operating segments | Hughes | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,852,742 | 1,716,528 | 1,477,918 | ||||||||
EBITDA | 625,660 | 601,319 | 475,222 | ||||||||
Capital expenditures | 308,781 | 390,108 | 376,502 | ||||||||
Operating segments | ESS | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 16,257 | 27,231 | 30,417 | ||||||||
EBITDA | 6,994 | 17,764 | 16,074 | ||||||||
Capital expenditures | 0 | (76,757) | 20,026 | ||||||||
Corporate and Other | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 21,162 | 23,077 | 6,707 | ||||||||
Corporate and Other | Corporate and Other | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 21,162 | 23,077 | 6,707 | ||||||||
EBITDA | (27,855) | (15,473) | (42,415) | ||||||||
Capital expenditures | 0 | 15 | 0 | ||||||||
Intersegment revenue | Hughes | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 0 | 359 | 1,787 | ||||||||
Intersegment revenue | ESS | |||||||||||
Segment Reporting | |||||||||||
Total revenue | 1,126 | 222 | 12 | ||||||||
Intersegment revenue | Corporate and Other | |||||||||||
Segment Reporting | |||||||||||
Total revenue | $ (1,126) | $ (581) | $ (1,799) |
Segment Reporting - Geographic
Segment Reporting - Geographic Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Geographic Information | ||
Long-lived assets | $ 2,806,218 | $ 2,870,079 |
North America | ||
Geographic Information | ||
Long-lived assets | 2,419,750 | 2,585,421 |
Central and South America | ||
Geographic Information | ||
Long-lived assets | 310,172 | 192,860 |
All other | ||
Geographic Information | ||
Long-lived assets | $ 76,296 | $ 91,798 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 500,600 | $ 473,121 | $ 461,241 | $ 455,199 | $ 455,113 | $ 457,650 | $ 439,667 | $ 414,406 | $ 1,890,161 | $ 1,766,836 | $ 1,515,042 |
Operating income (loss) | 45,088 | 45,433 | 13,962 | 46,469 | 34,089 | 57,956 | 52,331 | 33,606 | 150,952 | 177,982 | 76,781 |
Net income (loss) | (62,828) | (2,690) | 1,609 | 23,032 | 7,349 | 28,920 | 40,693 | 20,381 | (40,877) | 97,343 | 297,553 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (51,658) | (14,275) | (19,650) | (498) | (12,513) | 1,688 | 7,697 | (10,794) | |||
Net income (loss) from continuing operations attributable to HSS | $ (52,852) | $ 107 | $ 977 | $ 22,226 | $ 6,799 | $ 28,470 | $ 40,231 | $ 20,001 | (29,542) | 95,501 | 295,970 |
Change in enacted tax rate amount | $ (800) | (75,600) | |||||||||
Impairment | $ 0 | $ (6,000) |
Related Party Transactions - _2
Related Party Transactions - Echostar (Details) - USD ($) $ in Thousands | Feb. 01, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Related party transactions | ||||||
Transfer of launch contracts from (to) EchoStar | $ 0 | $ 0 | $ 145,114 | |||
Contribution of EchoStar XIX satellite, net of deferred tax | 349,337 | |||||
Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1) | 0 | 0 | 219,662 | |||
Revenue from related parties | $ 40,014 | 60,926 | 96,750 | |||
EchoStar Mobile Limited | ||||||
Related party transactions | ||||||
Interest rate on converted receivables loan | 5.00% | |||||
Revenue from related parties | $ 19,500 | 19,200 | 2,700 | |||
EOC | Construction Management Services | ||||||
Related party transactions | ||||||
Related party costs | 1,500 | 1,100 | 400 | |||
EchoStar | ||||||
Related party transactions | ||||||
Expense recorded for services provided | $ 2,100 | $ 16,200 | 22,200 | |||
Cheyenne Lease Agreement | EchoStar | Related Party Transactions, Lessor, Operating Lease, Real Estate | ||||||
Related party transactions | ||||||
Required minimum notice period for termination of agreement after lease extension | 30 days | |||||
Related-party advances | One-year LIBOR | Minimum | ||||||
Related party transactions | ||||||
Annual rates | 1.00% | |||||
Related-party advances | One-year LIBOR | Maximum | ||||||
Related party transactions | ||||||
Annual rates | 3.00% | |||||
Additional Paid-In Capital | ||||||
Related party transactions | ||||||
Contribution of EchoStar XIX satellite, net of deferred tax | $ 349,337 | |||||
EchoStar XIX | EchoStar | ||||||
Related party transactions | ||||||
Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1) | $ 514,000 | |||||
Deferred tax liabilities, deferred expense | 165,000 | |||||
EchoStar XIX | Additional Paid-In Capital | EchoStar | ||||||
Related party transactions | ||||||
Contribution of EchoStar XIX satellite, net of deferred tax | $ 349,000 | |||||
Other noncurrent assets | EchoStar XXIII | EOC | ||||||
Related party transactions | ||||||
Transfer of launch contracts from (to) EchoStar | $ (62,000) | |||||
Other noncurrent assets | EchoStar XXI | Additional Paid-In Capital | EOC | ||||||
Related party transactions | ||||||
Transfer of launch contracts from (to) EchoStar | $ 83,000 |
Related Party Transactions - Di
Related Party Transactions - Dish Network Related Party Transactions - Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related party transactions | |||
Revenue from related parties | $ 40,014 | $ 60,926 | $ 96,750 |
DISH Network | |||
Related party transactions | |||
Trade accounts receivable - DISH Network | $ 8,876 | $ 13,550 |
Related Party Transactions - _3
Related Party Transactions - DISH Network - Narrative (Details) - USD ($) $ in Thousands | Feb. 27, 2017 | May 31, 2019 | Feb. 28, 2019 | Dec. 31, 2017 | Aug. 31, 2017 | Mar. 31, 2017 | Aug. 31, 2015 | Oct. 31, 2012 | May 31, 2012 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2017 |
Related party transactions | |||||||||||||
Income tax provision (benefit) | $ 11,595 | $ 18,615 | $ (93,766) | ||||||||||
Hughes Broadband Distribution Agreement | |||||||||||||
Related party transactions | |||||||||||||
Agreement term | 5 years | ||||||||||||
Required minimum notice for termination of agreement | 180 days | ||||||||||||
DISH Network | Class A common stock | |||||||||||||
Related party transactions | |||||||||||||
Entity shares issued per acquiree share (in shares) | 0.23523769 | ||||||||||||
DISH Network | TerreStar Agreement | |||||||||||||
Related party transactions | |||||||||||||
Minimum termination notice period | 21 days | ||||||||||||
DISH Network | Hughes Equipment And Service Agreement | |||||||||||||
Related party transactions | |||||||||||||
Agreement term | 5 years | ||||||||||||
Required minimum notice for termination of agreement | 180 days | ||||||||||||
Minimum termination notice period | 365 days | ||||||||||||
DISH Network | Collocation and Antenna Space Agreements | |||||||||||||
Related party transactions | |||||||||||||
Agreement term | 4 years | ||||||||||||
Term of renewal option | 3 years | ||||||||||||
Termination notice required | 180 days | ||||||||||||
DISH Network | Hughes Broadband Master Services Agreement | |||||||||||||
Related party transactions | |||||||||||||
Agreement term | 5 years | ||||||||||||
Required minimum notice for termination of agreement | 90 days | ||||||||||||
DISH Network | Hughes Retail Group | Hughes Retail Preferred Tracking Stock | Satellite and Tracking Stock Transaction | |||||||||||||
Related party transactions | |||||||||||||
Percentage of economic interest held | 80.00% | ||||||||||||
DISH Network | Ciel Satellite Holdings Inc | 103 Spectrum Development Agreement | |||||||||||||
Related party transactions | |||||||||||||
Agreement term | 10 years | ||||||||||||
DISH Network | Maximum | Collocation and Antenna Space Agreements | |||||||||||||
Related party transactions | |||||||||||||
Required renewal notice | 120 days | ||||||||||||
DISH Network | Minimum | Collocation and Antenna Space Agreements | |||||||||||||
Related party transactions | |||||||||||||
Required renewal notice | 90 days | ||||||||||||
DISH Network | Related Party Transactions, Lessee, Operating Lease, Real Estate | American Fork Occupancy License Agreement | |||||||||||||
Related party transactions | |||||||||||||
Agreement term | 5 years | ||||||||||||
DISH Network | EchoStar Technologies segment | Share Exchange Agreement | |||||||||||||
Related party transactions | |||||||||||||
Ownership interest acquired by related party (as a percent) | 100.00% | 100.00% | 100.00% |
Related Party Transactions - Ag
Related Party Transactions - Agreements (Details) - USD ($) $ in Thousands | Feb. 27, 2017 | Feb. 01, 2017 | Feb. 28, 2022 | Feb. 28, 2019 | Dec. 31, 2017 | Aug. 31, 2017 | Jun. 30, 2017 | May 31, 2017 | Mar. 31, 2017 | Jul. 31, 2016 | Aug. 31, 2015 | Oct. 31, 2012 | May 31, 2012 | Jan. 31, 2010 | Dec. 31, 2009 | Sep. 30, 2009 | Nov. 30, 2008 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | Mar. 31, 2012 |
Related party transactions | ||||||||||||||||||||||
Stock-based compensation | $ 349,337 | |||||||||||||||||||||
Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1) | $ 0 | $ 0 | 219,662 | |||||||||||||||||||
Transfer of launch contracts from (to) EchoStar | 0 | 0 | 145,114 | |||||||||||||||||||
Revenue from related parties | 40,014 | 60,926 | 96,750 | |||||||||||||||||||
Hughes Broadband Distribution Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||||
Required minimum notice for termination of agreement | 180 days | |||||||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||||||
EchoStar | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Expense recorded for services provided | $ 2,100 | 16,200 | 22,200 | |||||||||||||||||||
EchoStar Mobile Limited | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Interest rate on converted receivables loan | 5.00% | |||||||||||||||||||||
Revenue from related parties | $ 19,500 | 19,200 | 2,700 | |||||||||||||||||||
Dish Mexico | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Revenue from related parties | 23,300 | 23,300 | ||||||||||||||||||||
DISH Network | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Trade accounts receivable - DISH Network | $ 8,876 | 13,550 | ||||||||||||||||||||
DISH Network | Satellite and Tracking Stock Transaction | Hughes Retail Preferred Tracking Stock | Hughes Retail Group | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Percentage of economic interest in the Hughes Retail Group | 80.00% | |||||||||||||||||||||
DISH Network | DBSD North America Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 21 days | |||||||||||||||||||||
Required minimum notice for termination of agreement | 120 days | |||||||||||||||||||||
Ownership interest acquired by related party (as a percent) | 100.00% | |||||||||||||||||||||
DISH Network | Hughes Equipment And Service Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 365 days | |||||||||||||||||||||
Required minimum notice for termination of agreement | 180 days | |||||||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||||||
DISH Network | EchoStar Amended and Restated Professional Services Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Required minimum notice for termination of agreement | 60 days | |||||||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||||||
Required minimum notice for termination of individual service | 30 days | |||||||||||||||||||||
DISH Network | Collocation and Antenna Space Agreements | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Required minimum notice period for termination of agreement by the reporting entity | 180 days | |||||||||||||||||||||
Agreement term | 4 years | |||||||||||||||||||||
Term of renewal option | 3 years | |||||||||||||||||||||
DISH Network | Collocation and Antenna Space Agreements | Minimum | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Renewal notice required by reporting entity | 90 days | |||||||||||||||||||||
DISH Network | Collocation and Antenna Space Agreements | Maximum | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Renewal notice required by reporting entity | 120 days | |||||||||||||||||||||
DISH Network | Hughes Broadband Master Services Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||||
Required minimum notice for termination of agreement | 90 days | |||||||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||||||
Cost of sales - services and other (exclusive of depreciation and amortization) | $ 17,100 | 33,200 | 29,300 | |||||||||||||||||||
DISH Network | Ciel | 103 Spectrum Development Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 10 years | |||||||||||||||||||||
DISH Network | Subsequent Event | DBSD North America Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 180 days | |||||||||||||||||||||
Telesat | TeleSat Transponder Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 15 years | |||||||||||||||||||||
Related-party advances | Minimum | One-year LIBOR | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Annual rates | 1.00% | |||||||||||||||||||||
Related-party advances | Maximum | One-year LIBOR | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Annual rates | 3.00% | |||||||||||||||||||||
Construction Management Services | EOC | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Related party costs | $ 1,500 | $ 1,100 | 400 | |||||||||||||||||||
Related Party Transactions, Lessee, Operating Lease, Real Estate | DISH Network | American Fork Occupancy License Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||||
Related Party Transactions, Lessor, Operating Lease, Real Estate | EchoStar | Cheyenne Lease Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Required minimum notice period for termination of agreement after lease extension | 30 days | |||||||||||||||||||||
EchoStar XIX | EchoStar | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1) | $ 514,000 | |||||||||||||||||||||
Deferred tax liabilities, deferred expense | 165,000 | |||||||||||||||||||||
EchoStar XXIII | Other noncurrent assets | EOC | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Transfer of launch contracts from (to) EchoStar | $ (62,000) | |||||||||||||||||||||
EchoStar XVI | DISH Network | Satellite Capacity Lease Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 1 year | 10 years | ||||||||||||||||||||
Renewal option, reduction | 1 year | |||||||||||||||||||||
EchoStar XVI | DISH Network | Satellite Services Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 5 years | |||||||||||||||||||||
Additional term of renewal option | 5 years | |||||||||||||||||||||
QuetzSat-1 | S E S Latin America | Satellite Services Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Agreement term | 10 years | |||||||||||||||||||||
Additional Paid-In Capital | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Stock-based compensation | $ 349,337 | |||||||||||||||||||||
Additional Paid-In Capital | EchoStar XIX | EchoStar | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Stock-based compensation | $ 349,000 | |||||||||||||||||||||
Additional Paid-In Capital | EchoStar XXI | Other noncurrent assets | EOC | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Transfer of launch contracts from (to) EchoStar | $ 83,000 | |||||||||||||||||||||
EchoStar Technologies segment | DISH Network | Share Exchange Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Ownership interest acquired by related party (as a percent) | 100.00% | 100.00% | 100.00% | |||||||||||||||||||
Scenario, Forecast | DISH Network | DBSD North America Agreement | ||||||||||||||||||||||
Related party transactions | ||||||||||||||||||||||
Automatic renewal period | 5 years |
Related Party Transactions - _4
Related Party Transactions - Other Agreements (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
May 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related party transactions | |||||
Revenue from related parties | $ 40,014,000 | $ 60,926,000 | $ 96,750,000 | ||
Maxar Technologies Inc. | |||||
Related party transactions | |||||
Aggregate costs payable | 13,200,000 | ||||
DISH Network | |||||
Related party transactions | |||||
Trade accounts receivable - DISH Network | $ 13,550,000 | $ 8,876,000 | 13,550,000 | ||
Hughes Systique | |||||
Related party transactions | |||||
Ownership interest in related party (as a percent) | 43.00% | ||||
Ownership interest percentage by related party | 25.00% | ||||
Deluxe | |||||
Related party transactions | |||||
Revenue from related parties | $ 4,400,000 | 4,400,000 | 4,900,000 | ||
Trade accounts receivable - DISH Network | 800,000 | 600,000 | 800,000 | ||
AsiaSat | |||||
Related party transactions | |||||
Due to related parties | 0 | 0 | 0 | ||
Expense recorded for services provided | 100,000 | ||||
Global IP Revenue | |||||
Related party transactions | |||||
Revenue from related parties | 0 | 9,000,000 | 300,000 | ||
Trade accounts receivable - DISH Network | 7,500,000 | 7,500,000 | 7,500,000 | $ 7,500,000 | |
TerreStar Solutions, Inc. | |||||
Related party transactions | |||||
Revenue from related parties | 12,500,000 | 6,000,000 | |||
Trade accounts receivable - DISH Network | $ 2,300,000 | $ 2,700,000 | $ 2,300,000 | ||
Investment nonvoting interest ownership percentage(at least) | 15.00% | ||||
Broadband Connectivity Solutions | |||||
Related party transactions | |||||
Equity interest, percentage in joint venture | 20.00% | 20.00% | |||
Revenue from related parties | $ 9,000,000 | $ 700,000 | |||
Trade accounts receivable - DISH Network | $ 3,400,000 | $ 5,200,000 | $ 3,400,000 | ||
Payments to acquire equity method investments | $ 100,000,000 | ||||
DISH Network | Class A common stock | |||||
Related party transactions | |||||
Entity shares issued per acquiree share (in shares) | 0.23523769 |
Related Party Transactions - Ta
Related Party Transactions - Tax Sharing and Patent Cross-License Agreements (Details) - DISH Network - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | |
Hughes Broadband Master Services Agreement | |||||
Related party transactions | |||||
Agreement term | 5 years | ||||
Automatic renewal period | 1 year | ||||
Cost of sales - services and other (exclusive of depreciation and amortization) | $ 17.1 | $ 33.2 | $ 29.3 | ||
EchoStar Technologies segment | Share Exchange Agreement | |||||
Related party transactions | |||||
Ownership interest acquired by related party (as a percent) | 100.00% | 100.00% |
Related Party Transactions - _5
Related Party Transactions - DISH Network - Schedule of related party transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Principal Business | |||
Revenue from related parties | $ 40,014 | $ 60,926 | $ 96,750 |
DISH Network | |||
Principal Business | |||
Trade accounts receivable - DISH Network | 8,876 | 13,550 | |
Trade accounts payable - DISH Network | $ 502 | $ 752 |
Related Party Transactions - _6
Related Party Transactions - Dish Network Related Party Transactions - DISH Network - General And Administrative (Details) - DISH Network - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related party transactions | |||
Operating expenses - DISH Network | $ 3,684 | $ 3,602 | $ 3,485 |
Trade accounts payable - DISH Network | $ 502 | $ 752 |
Related Party Transactions - _7
Related Party Transactions - Other (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related party transactions | |||
Revenue from related parties | $ 40,014,000 | $ 60,926,000 | $ 96,750,000 |
AsiaSat | |||
Related party transactions | |||
Expense recorded for services provided | 100,000 | ||
Maxar Technologies Inc. | |||
Related party transactions | |||
Aggregate costs payable | 13,200,000 | ||
Global IP Revenue | |||
Related party transactions | |||
Revenue from related parties | 0 | 9,000,000 | 300,000 |
Trade accounts receivable - DISH Network | $ 7,500,000 | 7,500,000 | $ 7,500,000 |
TerreStar Solutions, Inc. | |||
Related party transactions | |||
Investment nonvoting interest ownership percentage(at least) | 15.00% | ||
Revenue from related parties | $ 12,500,000 | 6,000,000 | |
Trade accounts receivable - DISH Network | $ 2,700,000 | $ 2,300,000 | |
Hughes Systique | |||
Related party transactions | |||
Ownership interest in related party (as a percent) | 43.00% | ||
Ownership interest percentage by related party | 25.00% |
Supplemental Guarantor and No_3
Supplemental Guarantor and Non-Guarantor Financial Information - Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | |||||
Cash and cash equivalents | $ 1,139,435 | $ 847,823 | $ 1,822,561 | $ 2,070,964 | |
Marketable investment securities | 652,835 | 1,609,196 | |||
Trade accounts receivable and contract assets, net | 196,520 | 201,096 | |||
Advances to affiliates | 131,892 | 103,550 | |||
Other current assets | 169,760 | 152,666 | |||
Current assets of discontinued operations | 0 | 3,483 | |||
Total current assets | 2,290,442 | 2,917,814 | |||
Property and equipment, net | 1,857,581 | 1,921,911 | |||
Operating lease right-of-use assets | 113,399 | $ 117,006 | |||
Goodwill | 506,953 | 504,173 | |||
Regulatory authorizations, net | 412,363 | 400,043 | $ 400,043 | $ 406,043 | |
Other intangible assets, net | 29,321 | 43,952 | |||
Other investments, net | 110,040 | 126,369 | |||
Investment in subsidiaries | 0 | 0 | |||
Advances to affiliates, net | 19,759 | 0 | |||
Deferred tax assets, net | 7,215 | 3,581 | |||
Other non-current assets, net | 232,868 | ||||
Non-current assets of discontinued operations | 0 | 742,461 | |||
Other non-current assets, net | 232,177 | 229,177 | 236,449 | ||
Total assets | 5,572,035 | 7,002,878 | 6,893,172 | ||
Liabilities and Shareholders' Equity (Deficit) | |||||
Trade accounts payable | 121,552 | 104,751 | |||
Current portion of long-term debt and finance lease obligations | 486 | 919,582 | |||
Advances from affiliates, net | 11,132 | 868 | |||
Contract liabilities | 101,060 | 72,249 | |||
Accrued expenses and other current liabilities | 246,799 | 157,654 | |||
Finance lease obligations | 0 | 49,055 | |||
Total current liabilities | 481,029 | 1,304,159 | |||
Long-term debt and finance lease obligations, net of current portion | 2,389,733 | 2,386,202 | |||
Deferred tax liabilities, net | 380,316 | 355,949 | |||
Deferred tax liabilities, net | 355,949 | ||||
Operating lease liabilities | 96,879 | 99,133 | |||
Advances from affiliates, net | 23,980 | 33,438 | |||
Other non-current liabilities | 65,935 | 71,647 | |||
Non-current liabilities of discontinued operations | 0 | 349,282 | |||
Total HSS shareholders’ equity | 2,058,415 | 2,377,220 | |||
Non-controlling interests | 75,748 | 15,275 | |||
Total liabilities and shareholders’ equity | 5,572,035 | $ 7,002,878 | 6,893,172 | ||
Eliminations | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Marketable investment securities | 0 | 0 | |||
Trade accounts receivable and contract assets, net | 0 | 0 | |||
Advances to affiliates | (502,218) | (569,657) | |||
Other current assets | 38 | (561) | |||
Current assets of discontinued operations | 0 | ||||
Total current assets | (502,180) | (570,218) | |||
Property and equipment, net | 0 | 0 | |||
Operating lease right-of-use assets | 0 | ||||
Goodwill | 0 | 0 | |||
Regulatory authorizations, net | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Other investments, net | 0 | 0 | |||
Investment in subsidiaries | (3,158,735) | (3,554,959) | |||
Advances to affiliates, net | (563,514) | (86,980) | |||
Deferred tax assets, net | (54,001) | ||||
Other non-current assets, net | 0 | ||||
Non-current assets of discontinued operations | 0 | ||||
Other non-current assets, net | (9,972) | ||||
Total assets | (4,234,401) | (4,266,158) | |||
Liabilities and Shareholders' Equity (Deficit) | |||||
Trade accounts payable | 0 | 0 | |||
Current portion of long-term debt and finance lease obligations | 0 | 0 | |||
Advances from affiliates, net | (502,218) | (569,657) | |||
Contract liabilities | 0 | 0 | |||
Accrued expenses and other current liabilities | 38 | (561) | |||
Finance lease obligations | 0 | ||||
Total current liabilities | (502,180) | (570,218) | |||
Long-term debt and finance lease obligations, net of current portion | 0 | 0 | |||
Deferred tax liabilities, net | (9,972) | ||||
Deferred tax liabilities, net | (54,001) | ||||
Operating lease liabilities | 0 | ||||
Advances from affiliates, net | (563,514) | (86,980) | |||
Other non-current liabilities | 0 | 0 | |||
Non-current liabilities of discontinued operations | 0 | ||||
Total HSS shareholders’ equity | (3,158,735) | (3,554,959) | |||
Non-controlling interests | 0 | 0 | |||
Total liabilities and shareholders’ equity | (4,234,401) | (4,266,158) | |||
HSS | Reportable Legal Entities | |||||
Assets | |||||
Cash and cash equivalents | 1,057,903 | 771,718 | |||
Marketable investment securities | 652,594 | 1,608,123 | |||
Trade accounts receivable and contract assets, net | 0 | 0 | |||
Advances to affiliates | 93,493 | 109,433 | |||
Other current assets | 43 | 72 | |||
Current assets of discontinued operations | 0 | ||||
Total current assets | 1,804,033 | 2,489,346 | |||
Property and equipment, net | 0 | 0 | |||
Operating lease right-of-use assets | 0 | ||||
Goodwill | 0 | 0 | |||
Regulatory authorizations, net | 0 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Other investments, net | 0 | 0 | |||
Investment in subsidiaries | 2,876,572 | 3,362,589 | |||
Advances to affiliates, net | 700 | 700 | |||
Deferred tax assets, net | 54,001 | ||||
Other non-current assets, net | 0 | ||||
Non-current assets of discontinued operations | 0 | ||||
Other non-current assets, net | 9,972 | ||||
Total assets | 4,691,277 | 5,906,636 | |||
Liabilities and Shareholders' Equity (Deficit) | |||||
Trade accounts payable | 0 | 0 | |||
Current portion of long-term debt and finance lease obligations | 0 | 918,916 | |||
Advances from affiliates, net | 202,994 | 181,926 | |||
Contract liabilities | 0 | 0 | |||
Accrued expenses and other current liabilities | 40,700 | 43,410 | |||
Finance lease obligations | 0 | ||||
Total current liabilities | 243,694 | 1,144,252 | |||
Long-term debt and finance lease obligations, net of current portion | 2,389,168 | 2,385,164 | |||
Deferred tax liabilities, net | 0 | ||||
Deferred tax liabilities, net | 0 | ||||
Operating lease liabilities | 0 | ||||
Advances from affiliates, net | 0 | 0 | |||
Other non-current liabilities | 0 | 0 | |||
Non-current liabilities of discontinued operations | 0 | ||||
Total HSS shareholders’ equity | 2,058,415 | 2,377,220 | |||
Non-controlling interests | 0 | 0 | |||
Total liabilities and shareholders’ equity | 4,691,277 | 5,906,636 | |||
Guarantor Subsidiaries | Reportable Legal Entities | |||||
Assets | |||||
Cash and cash equivalents | 32,338 | 46,353 | |||
Marketable investment securities | 241 | 1,073 | |||
Trade accounts receivable and contract assets, net | 129,722 | 128,831 | |||
Advances to affiliates | 523,116 | 536,600 | |||
Other current assets | 79,221 | 94,695 | |||
Current assets of discontinued operations | 3,483 | ||||
Total current assets | 764,638 | 811,035 | |||
Property and equipment, net | 1,459,151 | 1,620,534 | |||
Operating lease right-of-use assets | 89,106 | ||||
Goodwill | 504,173 | 504,173 | |||
Regulatory authorizations, net | 400,000 | 400,043 | |||
Other intangible assets, net | 29,321 | 43,952 | |||
Other investments, net | 110,040 | 126,369 | |||
Investment in subsidiaries | 282,163 | 192,370 | |||
Advances to affiliates, net | 565,412 | 86,280 | |||
Deferred tax assets, net | 0 | ||||
Other non-current assets, net | 220,099 | ||||
Non-current assets of discontinued operations | 742,461 | ||||
Other non-current assets, net | 206,781 | ||||
Total assets | 4,410,785 | 4,747,316 | |||
Liabilities and Shareholders' Equity (Deficit) | |||||
Trade accounts payable | 102,744 | 88,342 | |||
Current portion of long-term debt and finance lease obligations | 0 | 0 | |||
Advances from affiliates, net | 240,887 | 282,268 | |||
Contract liabilities | 96,485 | 67,636 | |||
Accrued expenses and other current liabilities | 73,696 | 71,111 | |||
Finance lease obligations | 49,055 | ||||
Total current liabilities | 513,812 | 558,412 | |||
Long-term debt and finance lease obligations, net of current portion | 0 | 0 | |||
Deferred tax liabilities, net | 390,288 | ||||
Deferred tax liabilities, net | 409,116 | ||||
Operating lease liabilities | 77,366 | ||||
Advances from affiliates, net | 488,488 | 0 | |||
Other non-current liabilities | 65,030 | 69,168 | |||
Non-current liabilities of discontinued operations | 349,282 | ||||
Total HSS shareholders’ equity | 2,875,801 | 3,361,338 | |||
Non-controlling interests | 0 | 0 | |||
Total liabilities and shareholders’ equity | 4,410,785 | 4,747,316 | |||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||
Assets | |||||
Cash and cash equivalents | 49,194 | 29,752 | |||
Marketable investment securities | 0 | 0 | |||
Trade accounts receivable and contract assets, net | 66,798 | 72,265 | |||
Advances to affiliates | 17,501 | 27,174 | |||
Other current assets | 90,458 | 58,460 | |||
Current assets of discontinued operations | 0 | ||||
Total current assets | 223,951 | 187,651 | |||
Property and equipment, net | 398,430 | 301,377 | |||
Operating lease right-of-use assets | 24,293 | ||||
Goodwill | 2,780 | 0 | |||
Regulatory authorizations, net | 12,363 | 0 | |||
Other intangible assets, net | 0 | 0 | |||
Other investments, net | 0 | 0 | |||
Investment in subsidiaries | 0 | 0 | |||
Advances to affiliates, net | 17,161 | 0 | |||
Deferred tax assets, net | 3,581 | ||||
Other non-current assets, net | 12,769 | ||||
Non-current assets of discontinued operations | 0 | ||||
Other non-current assets, net | 25,396 | ||||
Total assets | 704,374 | 505,378 | |||
Liabilities and Shareholders' Equity (Deficit) | |||||
Trade accounts payable | 18,808 | 16,409 | |||
Current portion of long-term debt and finance lease obligations | 486 | 666 | |||
Advances from affiliates, net | 69,469 | 106,331 | |||
Contract liabilities | 4,575 | 4,613 | |||
Accrued expenses and other current liabilities | 132,365 | 43,694 | |||
Finance lease obligations | 0 | ||||
Total current liabilities | 225,703 | 171,713 | |||
Long-term debt and finance lease obligations, net of current portion | 565 | 1,038 | |||
Deferred tax liabilities, net | 0 | ||||
Deferred tax liabilities, net | 834 | ||||
Operating lease liabilities | 19,513 | ||||
Advances from affiliates, net | 99,006 | 120,418 | |||
Other non-current liabilities | 905 | 2,479 | |||
Non-current liabilities of discontinued operations | 0 | ||||
Total HSS shareholders’ equity | 282,934 | 193,621 | |||
Non-controlling interests | 75,748 | 15,275 | |||
Total liabilities and shareholders’ equity | $ 704,374 | $ 505,378 |
Supplemental Guarantor and No_4
Supplemental Guarantor and Non-Guarantor Financial Information - Consolidating Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||||||||||
Total revenue | $ 500,600 | $ 473,121 | $ 461,241 | $ 455,199 | $ 455,113 | $ 457,650 | $ 439,667 | $ 414,406 | $ 1,890,161 | $ 1,766,836 | $ 1,515,042 |
Costs and Expenses: | |||||||||||
Selling, general and administrative expenses | 467,869 | 397,994 | 337,548 | ||||||||
Research and development expenses | 25,739 | 27,570 | 31,745 | ||||||||
Depreciation and amortization | 464,797 | 426,852 | 370,418 | ||||||||
Total costs and expenses | 1,739,209 | 1,588,854 | 1,438,261 | ||||||||
Operating income (loss) | 45,088 | 45,433 | 13,962 | 46,469 | 34,089 | 57,956 | 52,331 | 33,606 | 150,952 | 177,982 | 76,781 |
Other income (expense): | |||||||||||
Interest income | 57,730 | 59,104 | 31,952 | ||||||||
Interest expense, net of amounts capitalized | (272,218) | (231,169) | (213,166) | ||||||||
Gains (losses) on investments, net | (8,464) | 187 | (1,574) | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | (3,333) | 4,874 | 7,027 | ||||||||
Equity in earnings (losses) of subsidiaries, net | 0 | 0 | 0 | ||||||||
Foreign currency transaction gains (losses), net | (9,855) | (12,484) | (1,158) | ||||||||
Other, net | (633) | 8,041 | (1,030) | ||||||||
Total other income (expense), net | (236,773) | (171,447) | (177,949) | ||||||||
Income (loss) from continuing operations before income taxes | (85,821) | 6,535 | (101,168) | ||||||||
Income tax benefit (provision), net | (11,595) | (18,615) | 93,766 | ||||||||
Net income (loss) | (62,828) | (2,690) | 1,609 | 23,032 | 7,349 | 28,920 | 40,693 | 20,381 | (40,877) | 97,343 | 297,553 |
Less: Net income (loss) attributable to non-controlling interests | (11,335) | 1,842 | 1,583 | ||||||||
Net income (loss) from continuing operations attributable to HSS | (52,852) | 107 | 977 | 22,226 | 6,799 | 28,470 | 40,231 | 20,001 | (29,542) | 95,501 | 295,970 |
Comprehensive Income (loss) : | |||||||||||
Net income (loss) from continuing operations | (97,416) | (12,080) | (7,402) | ||||||||
Net income (loss) from discontinued operations | 56,539 | 109,423 | 304,955 | ||||||||
Net income (loss) | $ (62,828) | $ (2,690) | $ 1,609 | $ 23,032 | $ 7,349 | $ 28,920 | $ 40,693 | $ 20,381 | (40,877) | 97,343 | 297,553 |
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | 1,182 | (31,938) | 7,196 | ||||||||
Unrealized gains (losses) on available-for-sale securities | 1,817 | (665) | (2,280) | ||||||||
Other | (114) | 41 | 92 | ||||||||
Realized gains on available-for-sale securities | (419) | (212) | 0 | ||||||||
Foreign currency translation realized on impairment of long lived assets | (3,298) | ||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss), net of tax | 2,466 | (32,774) | 8,306 | ||||||||
Comprehensive income (loss) | (38,411) | 64,569 | 305,859 | ||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests | (8,007) | 453 | 1,992 | ||||||||
Comprehensive income (loss) attributable to HSS | (30,404) | 64,116 | 303,867 | ||||||||
Eliminations | |||||||||||
Revenue: | |||||||||||
Total revenue | (86,411) | (83,629) | (75,546) | ||||||||
Costs and Expenses: | |||||||||||
Selling, general and administrative expenses | (2,451) | (2,170) | (2,736) | ||||||||
Research and development expenses | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Total costs and expenses | (86,411) | (83,629) | (75,546) | ||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Other income (expense): | |||||||||||
Interest income | (3,850) | (3,661) | (95,172) | ||||||||
Interest expense, net of amounts capitalized | 3,850 | 3,661 | 95,172 | ||||||||
Gains (losses) on investments, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of subsidiaries, net | 60,211 | (190,880) | (436,460) | ||||||||
Foreign currency transaction gains (losses), net | 0 | 0 | 0 | ||||||||
Other, net | 0 | 0 | 0 | ||||||||
Total other income (expense), net | 60,211 | (190,880) | (436,460) | ||||||||
Income (loss) from continuing operations before income taxes | 60,211 | (190,880) | (436,460) | ||||||||
Income tax benefit (provision), net | 0 | 0 | 0 | ||||||||
Net income (loss) | 60,211 | (190,880) | (436,460) | ||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||
Net income (loss) from continuing operations attributable to HSS | 60,211 | (190,880) | (436,460) | ||||||||
Comprehensive Income (loss) : | |||||||||||
Net income (loss) from continuing operations | 60,211 | (190,880) | (436,460) | ||||||||
Net income (loss) from discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | 60,211 | (190,880) | (436,460) | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Unrealized gains (losses) on available-for-sale securities | 0 | 0 | 0 | ||||||||
Other | 0 | 0 | 0 | ||||||||
Realized gains on available-for-sale securities | 0 | 0 | |||||||||
Foreign currency translation realized on impairment of long lived assets | 0 | ||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net | 4,520 | 61,016 | (15,049) | ||||||||
Total other comprehensive income (loss), net of tax | 4,520 | 61,016 | (15,049) | ||||||||
Comprehensive income (loss) | 64,731 | (129,864) | (451,509) | ||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to HSS | 64,731 | (129,864) | (451,509) | ||||||||
HSS | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Costs and Expenses: | |||||||||||
Selling, general and administrative expenses | 6,720 | 0 | 0 | ||||||||
Research and development expenses | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Total costs and expenses | 6,720 | 0 | 0 | ||||||||
Operating income (loss) | (6,720) | 0 | 0 | ||||||||
Other income (expense): | |||||||||||
Interest income | 54,341 | 56,487 | 28,146 | ||||||||
Interest expense, net of amounts capitalized | (190,685) | (229,481) | (229,415) | ||||||||
Gains (losses) on investments, net | 455 | 0 | 0 | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of subsidiaries, net | 75,047 | 224,405 | 471,602 | ||||||||
Foreign currency transaction gains (losses), net | 0 | 0 | 0 | ||||||||
Other, net | (100) | (970) | 0 | ||||||||
Total other income (expense), net | (60,942) | 50,441 | 270,333 | ||||||||
Income (loss) from continuing operations before income taxes | (67,662) | 50,441 | 270,333 | ||||||||
Income tax benefit (provision), net | 38,120 | 45,060 | 25,637 | ||||||||
Net income (loss) | (29,542) | 95,501 | 295,970 | ||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||
Net income (loss) from continuing operations attributable to HSS | (29,542) | 95,501 | 295,970 | ||||||||
Comprehensive Income (loss) : | |||||||||||
Net income (loss) from continuing operations | (29,542) | 95,501 | 295,970 | ||||||||
Net income (loss) from discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | (29,542) | 95,501 | 295,970 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Unrealized gains (losses) on available-for-sale securities | 1,817 | (665) | (273) | ||||||||
Other | 0 | 0 | 0 | ||||||||
Realized gains on available-for-sale securities | (419) | (212) | |||||||||
Foreign currency translation realized on impairment of long lived assets | 0 | ||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net | (2,260) | (30,508) | 8,170 | ||||||||
Total other comprehensive income (loss), net of tax | (862) | (31,385) | 7,897 | ||||||||
Comprehensive income (loss) | (30,404) | 64,116 | 303,867 | ||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to HSS | (30,404) | 64,116 | 303,867 | ||||||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 1,701,451 | 1,588,455 | 1,382,787 | ||||||||
Costs and Expenses: | |||||||||||
Selling, general and administrative expenses | 375,309 | 345,221 | 293,767 | ||||||||
Research and development expenses | 25,082 | 27,570 | 31,745 | ||||||||
Depreciation and amortization | 391,464 | 374,297 | 332,103 | ||||||||
Total costs and expenses | 1,480,769 | 1,395,330 | 1,277,480 | ||||||||
Operating income (loss) | 220,682 | 193,125 | 105,307 | ||||||||
Other income (expense): | |||||||||||
Interest income | 4,441 | 3,806 | 96,992 | ||||||||
Interest expense, net of amounts capitalized | (7,832) | (866) | (80,543) | ||||||||
Gains (losses) on investments, net | (8,919) | 187 | (1,574) | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | (3,333) | 4,874 | 7,027 | ||||||||
Equity in earnings (losses) of subsidiaries, net | (135,258) | (33,525) | (35,142) | ||||||||
Foreign currency transaction gains (losses), net | (344) | (104) | (85) | ||||||||
Other, net | (351) | 9,259 | (871) | ||||||||
Total other income (expense), net | (151,596) | (16,369) | (14,196) | ||||||||
Income (loss) from continuing operations before income taxes | 69,086 | 176,756 | 91,111 | ||||||||
Income tax benefit (provision), net | (50,242) | (62,230) | 75,956 | ||||||||
Net income (loss) | 75,383 | 223,949 | 472,022 | ||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||
Net income (loss) from continuing operations attributable to HSS | 75,383 | 223,949 | 472,022 | ||||||||
Comprehensive Income (loss) : | |||||||||||
Net income (loss) from continuing operations | 18,844 | 114,526 | 167,067 | ||||||||
Net income (loss) from discontinued operations | 56,539 | 109,423 | 304,955 | ||||||||
Net income (loss) | 75,383 | 223,949 | 472,022 | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Unrealized gains (losses) on available-for-sale securities | 0 | 0 | (2,007) | ||||||||
Other | 0 | 0 | 0 | ||||||||
Realized gains on available-for-sale securities | 0 | 0 | |||||||||
Foreign currency translation realized on impairment of long lived assets | (3,298) | ||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net | (2,260) | (30,508) | 6,879 | ||||||||
Total other comprehensive income (loss), net of tax | (2,260) | (30,508) | 8,170 | ||||||||
Comprehensive income (loss) | 73,123 | 193,441 | 480,192 | ||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to HSS | 73,123 | 193,441 | 480,192 | ||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 275,121 | 262,010 | 207,801 | ||||||||
Costs and Expenses: | |||||||||||
Selling, general and administrative expenses | 88,291 | 54,943 | 46,517 | ||||||||
Research and development expenses | 657 | 0 | 0 | ||||||||
Depreciation and amortization | 73,333 | 52,555 | 38,315 | ||||||||
Total costs and expenses | 338,131 | 277,153 | 236,327 | ||||||||
Operating income (loss) | (63,010) | (15,143) | (28,526) | ||||||||
Other income (expense): | |||||||||||
Interest income | 2,798 | 2,472 | 1,986 | ||||||||
Interest expense, net of amounts capitalized | (77,551) | (4,483) | 1,620 | ||||||||
Gains (losses) on investments, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of unconsolidated affiliates, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of subsidiaries, net | 0 | 0 | 0 | ||||||||
Foreign currency transaction gains (losses), net | (9,511) | (12,380) | (1,073) | ||||||||
Other, net | (182) | (248) | (159) | ||||||||
Total other income (expense), net | (84,446) | (14,639) | 2,374 | ||||||||
Income (loss) from continuing operations before income taxes | (147,456) | (29,782) | (26,152) | ||||||||
Income tax benefit (provision), net | 527 | (1,445) | (7,827) | ||||||||
Net income (loss) | (146,929) | (31,227) | (33,979) | ||||||||
Less: Net income (loss) attributable to non-controlling interests | (11,335) | 1,842 | 1,583 | ||||||||
Net income (loss) from continuing operations attributable to HSS | (135,594) | (33,069) | (35,562) | ||||||||
Comprehensive Income (loss) : | |||||||||||
Net income (loss) from continuing operations | (146,929) | (31,227) | (33,979) | ||||||||
Net income (loss) from discontinued operations | 0 | 0 | 0 | ||||||||
Net income (loss) | (146,929) | (31,227) | (33,979) | ||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | 1,182 | (31,938) | 7,196 | ||||||||
Unrealized gains (losses) on available-for-sale securities | 0 | 0 | 0 | ||||||||
Other | (114) | 41 | 92 | ||||||||
Realized gains on available-for-sale securities | 0 | 0 | |||||||||
Foreign currency translation realized on impairment of long lived assets | 0 | ||||||||||
Equity in other comprehensive income (loss) of subsidiaries, net | 0 | 0 | 0 | ||||||||
Total other comprehensive income (loss), net of tax | 1,068 | (31,897) | 7,288 | ||||||||
Comprehensive income (loss) | (145,861) | (63,124) | (26,691) | ||||||||
Less: Comprehensive income (loss) attributable to non-controlling interests | (8,007) | 453 | 1,992 | ||||||||
Comprehensive income (loss) attributable to HSS | (137,854) | (63,577) | (28,683) | ||||||||
Services and other revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | 1,623,458 | 1,561,426 | 1,275,553 | ||||||||
Costs and Expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 555,701 | 559,838 | 497,111 | ||||||||
Services and other revenue | Eliminations | |||||||||||
Revenue: | |||||||||||
Total revenue | (36,458) | (37,906) | (32,220) | ||||||||
Costs and Expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | (34,006) | (35,736) | (29,632) | ||||||||
Services and other revenue | HSS | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Costs and Expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 0 | 0 | 0 | ||||||||
Services and other revenue | Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 1,417,659 | 1,366,459 | 1,127,177 | ||||||||
Costs and Expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 438,214 | 447,622 | 395,566 | ||||||||
Services and other revenue | Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 242,257 | 232,873 | 180,596 | ||||||||
Costs and Expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 151,493 | 147,952 | 131,177 | ||||||||
Total equipment revenue | |||||||||||
Revenue: | |||||||||||
Total revenue | 266,703 | 205,410 | 239,489 | ||||||||
Costs and Expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 225,103 | 176,600 | 195,439 | ||||||||
Total equipment revenue | Eliminations | |||||||||||
Revenue: | |||||||||||
Total revenue | (49,953) | (45,723) | (43,326) | ||||||||
Costs and Expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | (49,954) | (45,723) | (43,178) | ||||||||
Total equipment revenue | HSS | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 0 | 0 | 0 | ||||||||
Costs and Expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 0 | 0 | 0 | ||||||||
Total equipment revenue | Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 283,792 | 221,996 | 255,610 | ||||||||
Costs and Expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | 250,700 | 200,620 | 218,299 | ||||||||
Total equipment revenue | Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Revenue: | |||||||||||
Total revenue | 32,864 | 29,137 | 27,205 | ||||||||
Costs and Expenses: | |||||||||||
Cost of sales - services and other/equipment (exclusive of deprecation and amortization) | $ 24,357 | $ 21,703 | $ 20,318 |
Supplemental Guarantor and No_5
Supplemental Guarantor and Non-Guarantor Financial Information - Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ (62,828) | $ (2,690) | $ 1,609 | $ 23,032 | $ 7,349 | $ 28,920 | $ 40,693 | $ 20,381 | $ (40,877) | $ 97,343 | $ 297,553 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities | 674,481 | 645,360 | 199,476 | ||||||||
Net cash flows from operating activities | 633,604 | 742,703 | 497,029 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of marketable investment securities | (709,350) | (2,063,042) | (535,476) | ||||||||
Sales and maturities of marketable investment securities | 1,665,269 | 909,996 | 259,263 | ||||||||
Investment in subsidiaries | 7,851 | (100,991) | 0 | ||||||||
Dividend received from unconsolidated affiliate | 2,284 | 0 | 0 | ||||||||
Expenditures for property and equipment | (309,291) | (391,065) | (401,538) | ||||||||
Refunds and other receipts related to property and equipment | 0 | 77,524 | 4,311 | ||||||||
Expenditures for externally marketed software | (29,310) | (31,639) | (31,331) | ||||||||
Payment for EchoStar XXI launch services | 0 | 7,125 | 0 | ||||||||
Purchases of regulatory authorizations | (7,850) | 0 | 0 | ||||||||
Investment in subsidiaries | 0 | 0 | (31,331) | ||||||||
Net cash flows from investing activities | 619,603 | (1,606,342) | (704,771) | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchase and maturity of the 2019 Senior Secured Notes | (920,923) | (70,173) | |||||||||
Repayment of other long-term debt and finance lease obligations | (29,347) | (41,019) | (37,063) | ||||||||
Payment of in-orbit incentive obligations | (4,430) | (4,796) | (5,850) | ||||||||
Payment of in-orbit incentive obligations | 5,850 | ||||||||||
Purchase of non-controlling interest | (7,313) | 0 | 0 | ||||||||
Capital contribution from EchoStar | 0 | 7,125 | |||||||||
Other, net | 1,172 | 0 | 1,036 | ||||||||
Contribution (distributions) and advances (to) from parent, net | 0 | 0 | 0 | ||||||||
Net cash flows from financing activities | (960,841) | (108,863) | (41,877) | ||||||||
Effect of exchange rates on cash and cash equivalents | (663) | (2,233) | 1,286 | ||||||||
Net increase (decrease) in cash and cash equivalents | 291,703 | (974,735) | (248,333) | ||||||||
Cash and cash equivalents, including restricted amounts, beginning of period | 848,619 | 1,823,354 | 848,619 | 1,823,354 | 2,071,687 | ||||||
Cash and cash equivalents, including restricted amounts, end of period | 1,140,322 | 848,619 | 1,140,322 | 848,619 | 1,823,354 | ||||||
Eliminations | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | 60,211 | (190,880) | (436,460) | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities | (60,211) | 190,880 | 436,460 | ||||||||
Net cash flows from operating activities | 0 | 0 | 0 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of marketable investment securities | 0 | 0 | 0 | ||||||||
Sales and maturities of marketable investment securities | 0 | 0 | 0 | ||||||||
Investment in subsidiaries | 0 | 0 | 122,000 | ||||||||
Dividend received from unconsolidated affiliate | 0 | ||||||||||
Expenditures for property and equipment | 0 | 0 | 0 | ||||||||
Refunds and other receipts related to property and equipment | 0 | 0 | |||||||||
Expenditures for externally marketed software | 0 | 0 | |||||||||
Payment for EchoStar XXI launch services | 0 | ||||||||||
Purchases of regulatory authorizations | 0 | ||||||||||
Investment in subsidiaries | (232,338) | (255,129) | 0 | ||||||||
Net cash flows from investing activities | (232,338) | (255,129) | 122,000 | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchase and maturity of the 2019 Senior Secured Notes | 0 | 0 | |||||||||
Repayment of other long-term debt and finance lease obligations | 0 | 0 | 0 | ||||||||
Payment of in-orbit incentive obligations | 0 | 0 | |||||||||
Payment of in-orbit incentive obligations | 0 | ||||||||||
Purchase of non-controlling interest | 0 | ||||||||||
Capital contribution from EchoStar | 0 | ||||||||||
Other, net | 0 | 0 | |||||||||
Contribution (distributions) and advances (to) from parent, net | 232,338 | 255,129 | (122,000) | ||||||||
Net cash flows from financing activities | 232,338 | 255,129 | (122,000) | ||||||||
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 | ||||||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | ||||||||
Cash and cash equivalents, including restricted amounts, beginning of period | 0 | 0 | 0 | 0 | 0 | ||||||
Cash and cash equivalents, including restricted amounts, end of period | 0 | 0 | 0 | 0 | 0 | ||||||
HSS | Reportable Legal Entities | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | (29,542) | 95,501 | 295,970 | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities | (26,693) | (160,236) | (206,014) | ||||||||
Net cash flows from operating activities | (56,235) | (64,735) | 89,956 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of marketable investment securities | (709,350) | (2,063,042) | (535,476) | ||||||||
Sales and maturities of marketable investment securities | 1,665,269 | 909,996 | 259,263 | ||||||||
Investment in subsidiaries | 0 | 0 | (59,000) | ||||||||
Dividend received from unconsolidated affiliate | 0 | ||||||||||
Expenditures for property and equipment | 0 | 0 | 0 | ||||||||
Refunds and other receipts related to property and equipment | 0 | 0 | |||||||||
Expenditures for externally marketed software | 0 | 0 | |||||||||
Payment for EchoStar XXI launch services | 0 | ||||||||||
Purchases of regulatory authorizations | 0 | ||||||||||
Investment in subsidiaries | 307,424 | 305,669 | 0 | ||||||||
Net cash flows from investing activities | 1,263,343 | (847,377) | (335,213) | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchase and maturity of the 2019 Senior Secured Notes | (920,923) | (70,173) | |||||||||
Repayment of other long-term debt and finance lease obligations | 0 | 0 | 0 | ||||||||
Payment of in-orbit incentive obligations | 0 | 0 | |||||||||
Payment of in-orbit incentive obligations | 0 | ||||||||||
Purchase of non-controlling interest | 0 | ||||||||||
Capital contribution from EchoStar | 7,125 | ||||||||||
Other, net | 0 | 186 | |||||||||
Contribution (distributions) and advances (to) from parent, net | 0 | 0 | 0 | ||||||||
Net cash flows from financing activities | (920,923) | (63,048) | 186 | ||||||||
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 | ||||||||
Net increase (decrease) in cash and cash equivalents | 286,185 | (975,160) | (245,071) | ||||||||
Cash and cash equivalents, including restricted amounts, beginning of period | 771,718 | 1,746,878 | 771,718 | 1,746,878 | 1,991,949 | ||||||
Cash and cash equivalents, including restricted amounts, end of period | 1,057,903 | 771,718 | 1,057,903 | 771,718 | 1,746,878 | ||||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | 75,383 | 223,949 | 472,022 | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities | 569,444 | 536,404 | (74,310) | ||||||||
Net cash flows from operating activities | 644,827 | 760,353 | 397,712 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of marketable investment securities | 0 | 0 | 0 | ||||||||
Sales and maturities of marketable investment securities | 0 | 0 | 0 | ||||||||
Investment in subsidiaries | (7) | (100,991) | (63,000) | ||||||||
Dividend received from unconsolidated affiliate | 2,284 | ||||||||||
Expenditures for property and equipment | (215,000) | (304,376) | (340,197) | ||||||||
Refunds and other receipts related to property and equipment | 77,524 | 4,311 | |||||||||
Expenditures for externally marketed software | (29,310) | (31,639) | |||||||||
Payment for EchoStar XXI launch services | 0 | ||||||||||
Purchases of regulatory authorizations | 0 | ||||||||||
Investment in subsidiaries | (75,086) | (50,540) | (31,331) | ||||||||
Net cash flows from investing activities | (317,119) | (410,022) | (430,217) | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchase and maturity of the 2019 Senior Secured Notes | 0 | 0 | |||||||||
Repayment of other long-term debt and finance lease obligations | (27,203) | (35,886) | (32,177) | ||||||||
Payment of in-orbit incentive obligations | (4,430) | (4,796) | |||||||||
Payment of in-orbit incentive obligations | 5,850 | ||||||||||
Purchase of non-controlling interest | (2,666) | ||||||||||
Capital contribution from EchoStar | 0 | ||||||||||
Other, net | 0 | 0 | |||||||||
Contribution (distributions) and advances (to) from parent, net | (307,424) | (305,669) | 59,000 | ||||||||
Net cash flows from financing activities | (341,723) | (346,351) | 20,973 | ||||||||
Effect of exchange rates on cash and cash equivalents | 0 | 0 | 0 | ||||||||
Net increase (decrease) in cash and cash equivalents | (14,015) | 3,980 | (11,532) | ||||||||
Cash and cash equivalents, including restricted amounts, beginning of period | 46,353 | 42,373 | 46,353 | 42,373 | 53,905 | ||||||
Cash and cash equivalents, including restricted amounts, end of period | 32,338 | 46,353 | 32,338 | 46,353 | 42,373 | ||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | (146,929) | (31,227) | (33,979) | ||||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities | 191,941 | 78,312 | 43,340 | ||||||||
Net cash flows from operating activities | 45,012 | 47,085 | 9,361 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of marketable investment securities | 0 | 0 | 0 | ||||||||
Sales and maturities of marketable investment securities | 0 | 0 | 0 | ||||||||
Investment in subsidiaries | 7,858 | 0 | 0 | ||||||||
Dividend received from unconsolidated affiliate | 0 | ||||||||||
Expenditures for property and equipment | (94,291) | (86,689) | (61,341) | ||||||||
Refunds and other receipts related to property and equipment | 0 | 0 | |||||||||
Expenditures for externally marketed software | 0 | 0 | |||||||||
Payment for EchoStar XXI launch services | 7,125 | ||||||||||
Purchases of regulatory authorizations | (7,850) | ||||||||||
Investment in subsidiaries | 0 | 0 | 0 | ||||||||
Net cash flows from investing activities | (94,283) | (93,814) | (61,341) | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchase and maturity of the 2019 Senior Secured Notes | 0 | 0 | |||||||||
Repayment of other long-term debt and finance lease obligations | (2,144) | (5,133) | (4,886) | ||||||||
Payment of in-orbit incentive obligations | 0 | 0 | |||||||||
Payment of in-orbit incentive obligations | 0 | ||||||||||
Purchase of non-controlling interest | (4,647) | ||||||||||
Capital contribution from EchoStar | 0 | ||||||||||
Other, net | 1,172 | 850 | |||||||||
Contribution (distributions) and advances (to) from parent, net | 75,086 | 50,540 | 63,000 | ||||||||
Net cash flows from financing activities | 69,467 | 45,407 | 58,964 | ||||||||
Effect of exchange rates on cash and cash equivalents | (663) | (2,233) | 1,286 | ||||||||
Net increase (decrease) in cash and cash equivalents | 19,533 | (3,555) | 8,270 | ||||||||
Cash and cash equivalents, including restricted amounts, beginning of period | $ 30,548 | $ 34,103 | 30,548 | 34,103 | 25,833 | ||||||
Cash and cash equivalents, including restricted amounts, end of period | $ 50,081 | $ 30,548 | $ 50,081 | $ 30,548 | $ 34,103 |
Supplemental Financial Inform_3
Supplemental Financial Information - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restricted Cash and Cash Equivalents | $ 887 | $ 796 | $ 793 | $ 723 |
Capitalized software, net | 101,786 | 96,760 | ||
Contract Acquisition Costs | ||||
Contract acquisition costs | 96,723 | 104,013 | ||
Capitalized contract cost amortization | 96,100 | 83,000 | ||
Contract Fulfillment Costs | ||||
Contract acquisition costs | 3,010 | 3,240 | ||
Other noncurrent assets | ||||
Capitalized software, net | 101,800 | 96,800 | ||
Capitalized software development costs for software sold to customers | 38,800 | 28,800 | ||
Capitalized computer software costs | 29,300 | 31,600 | 31,300 | |
Capitalized computer software, amortization | 24,300 | 23,000 | 19,500 | |
Selling, general and administrative expenses | ||||
Advertising expense | $ 88,200 | $ 75,800 | $ 64,200 | |
Software and Software Development Costs | Weighted Average | ||||
Software useful life | 3 years |
Supplemental Financial Inform_4
Supplemental Financial Information - Schedule of Research and Development Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Research and development expenses | $ 25,739 | $ 27,570 | $ 31,745 |
Cost of sales - equipment | |||
Research and development expenses | 24,495 | 23,422 | 27,899 |
Research and development expenses | |||
Research and development expenses | $ 25,739 | $ 27,570 | $ 31,745 |
Supplemental Financial Inform_5
Supplemental Financial Information - Schedule of Other Current Assets, Other Non-Current Assets, Net and Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other current assets: | |||
Inventory | $ 79,474 | $ 75,379 | |
Prepaids and deposits | 59,193 | 45,198 | |
Other current assets | 22,217 | 18,539 | |
Total other current assets | 169,760 | 152,666 | |
Non-current assets: | |||
Restricted cash | 887 | 796 | |
Deferred tax assets, net | 7,215 | 3,581 | |
Capitalized software, net | 101,786 | 96,760 | |
Non-current assets of discontinued operations | 22,556 | 28,059 | |
Total other non-current assets, net | 232,177 | $ 229,177 | 236,449 |
Accrued Liabilities [Abstract] | |||
Accrued interest | 32,184 | 45,131 | |
Accrued compensation | 42,846 | 42,796 | |
Accrued taxes | 18,493 | 7,609 | |
Operating lease obligation | 14,112 | ||
Other | 138,662 | 61,366 | |
Total accrued expenses and other current liabilities | 246,799 | $ 172,098 | 157,654 |
DISH Network | |||
Other current assets: | |||
Trade accounts receivable - DISH Network | 8,876 | 13,550 | |
Accrued Liabilities [Abstract] | |||
Trade accounts payable - DISH Network | 502 | 752 | |
Contract Acquisition Costs | |||
Non-current assets: | |||
Contract acquisition costs, net | 96,723 | 104,013 | |
Contract Fulfillment Costs | |||
Non-current assets: | |||
Contract acquisition costs, net | $ 3,010 | $ 3,240 |
Supplemental Financial Inform_6
Supplemental Financial Information - Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 1,139,435 | $ 847,823 | $ 1,822,561 | $ 2,070,964 |
Restricted Cash and Cash Equivalents | 887 | 796 | 793 | 723 |
Total cash and cash equivalents, included restricted amounts, beginning of period | $ 1,140,322 | $ 848,619 | $ 1,823,354 | $ 2,071,687 |
Supplemental Financial Inform_7
Supplemental Financial Information - Schedule of Noncash Investing and Financing Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property and equipment financed under capital lease obligations | $ 349 | $ 364 | $ 8,484 |
Increase (decrease) in capital expenditures included in accounts payable, net | 1,625 | 1,566 | (2,522) |
Capitalized in-orbit incentive obligations | 0 | 0 | 31,000 |
Noncash net assets exchanged for HSS Tracking Stock (Note 1) | 0 | 0 | 190,221 |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | 94,918 | 0 | 0 |
Contribution from EchoStar in our existing Brazilian subsidiary | 9,606 | 0 | 0 |
Transfer of launch service contracts from (to) EchoStar | 0 | 0 | (145,114) |
Contribution of noncash net assets pursuant to Share Exchange Agreement (Note 1) | 0 | 0 | 219,662 |
Contribution of EchoStar XIX satellite | 0 | 0 | 514,448 |
Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ 332,699 | $ 0 | $ 0 |
Uncategorized Items - hssc12311
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 |
Noncontrolling Interest [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 14,822,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 15,773,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 598,456,000 |