| Colorado | | | 4899 | | | 84-1328967 | |
| (State or other jurisdiction of incorporation or organization) | | | (Primary standard industrial classification code number) | | | (I.R.S. Employer Identification Number) | |
| Large accelerated filer | | | ☐ | | | Accelerated filer | | | ☐ | |
| Non-accelerated filer | | | ☒ | | | Smaller reporting company | | | ☐ | |
| | | | | | | Emerging growth company | | | ☐ | |
| CALCULATION OF REGISTRATION FEE | | ||||||||||||||||||||||||||||
| Title of Each Class of Securities to be Registered | | | | Amount to be Registered | | | | Proposed Maximum Offering Price Per Note(1) | | | | Proposed Maximum Aggregate Offering Price(1) | | | | Amount of Registration Fee | | ||||||||||||
| 7.375% Senior Notes due 2028 | | | | | $ | 1,000,000,000 | | | | | | | 100% | | | | | | $ | 1,000,000,000 | | | | | | $ | 129,800 | | |
| Guarantees of 7.375% Senior Notes due 2028(3) | | | | | | (2 ) | | | | | | | (2 ) | | | | | | | (2 ) | | | | | | | (2 ) | | |
| | Title of Each Class of Securities to be Registered | | | | Amount to be Registered | | | | Proposed Maximum Offering Price Per Note(1) | | | | Proposed Maximum Aggregate Offering Price(1) | | | | Amount of Registration Fee | | | |||||||||
| | 5.125% Senior Notes due 2029 . . . . . . . . . . . . . . . . . . | | | | $1,500,000,000 | | | | | | 100% | | | | | | $ | 1,500,000,000 | | | | | | $ | 163,650 | | | |
| | Guarantees of 5.125% Senior Notes due 2029(3) . . . . . | | | | (2) | | | | (2)�� | | | | (2) | | | | (2) | | |
| Exact Name of Additional Registrants as Specified in their Respective Charters* | | | Jurisdiction of Incorporation/ Organization | | | IRS Employer Identification No. | |
| DISH Network L.L.C. | | | Colorado | | | 84-1114039 | |
| DISH Operating L.L.C. | | | Colorado | | | 20-0715965 | |
| Echosphere L.L.C. | | | Colorado | | | 84-0833457 | |
| DISH Network Service L.L.C. | | | Colorado | | | 84-1195952 | |
| DISH Broadcasting Corporation | | | Colorado | | | 37-1848590 | |
| DISH Technologies L.L.C. | | | Colorado | | | 76-0033570 | |
| Sling TV Holding L.L.C. | | | Colorado | | | 46-0593221 | |
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| | | For the Years Ended December 31, | | | For the Six Months Ended June 30, | | ||||||||||||||||||||||||||||||||||||
| | | 2015 | | | 2016 | | | 2017 | | | 2018 | | | 2019 | | | 2019 | | | 2020 | | |||||||||||||||||||||
| | | (dollars in millions) | | | | | | | | | | | | | | |||||||||||||||||||||||||||
Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | | $ | 14,796 | | | | | $ | 14,756 | | | | | $ | 14,008 | | | | | $ | 13,362 | | | | | $ | 12,623 | | | | | $ | 6,305 | | | | | $ | 6,316 | | |
Operating income | | | | | 2,149 | | | | | | 2,309 | | | | | | 1,610 | | | | | | 2,067 | | | | | | 1,821 | | | | | | 867 | | | | | | 1,171 | | |
Net income attributable to DISH DBS | | | | | 835 | | | | | | 965 | | | | | | 724 | | | | | | 971 | | | | | | 828 | | | | | | 363 | | | | | | 619 | | |
| | | As of June 30, 2020 | | |||
| | | (dollars in millions) | | |||
Balance Sheet Data: | | | | | | | |
Cash, cash equivalents and current marketable investment securities | | | | $ | 27 | | |
Total assets | | | | | 4,156 | | |
Long-term debt and finance lease obligations (including current portion) (1) | | | | | 9,701 | | |
Total stockholder’s equity (deficit) | | | | $ | (10,306) | | |
| | | As of or for the Years Ended December 31, | | | As of or for the Six Months Ended June 30, | | ||||||||||||||||||||||||||||||||||||
| | | 2015 | | | 2016 | | | 2017 | | | 2018 | | | 2019 | | | 2019 | | | 2020 | | |||||||||||||||||||||
| | | (dollars in millions) | | | | | | | | | | | | | | |||||||||||||||||||||||||||
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pay-TV subscribers, as of period end (thousands) (unaudited) | | | | | 13,897 | | | | | | 13,671 | | | | | | 13,242 | | | | | | 12,322 | | | | | | 11,986 | | | | | | 12,032 | | | | | | 11,272 | | |
EBITDA (unaudited)(2) | | | | $ | 3,037 | | | | | $ | 3,174 | | | | | $ | 2,438 | | | | | $ | 2,734 | | | | | $ | 2,406 | | | | | $ | 1,162 | | | | | $ | 1,430 | | |
Net cash flows from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities | | | | $ | 1,974 | | | | | $ | 1,834 | | | | | $ | 1,287 | | | | | $ | 1,197 | | | | | $ | 1,385 | | | | | $ | 765 | | | | | $ | 1,360 | | |
Investing activities | | | | | 618 | | | | | | (393) | | | | | | (578) | | | | | | (282) | | | | | | (166) | | | | | | (262) | | | | | | (144) | | |
Financing activities | | | | | (8,934) | | | | | | (1,084) | | | | | | (1,122) | | | | | | (1,150) | | | | | | (1,271) | | | | | | (34) | | | | | | (1,206) | | |
| | | For the Years Ended December 31, | | | For the Three Months Ended March 31, | | ||||||||||||||||||||||||||||||||||||
| 2016 | | | 2017 | | | 2018 | | | 2019 | | | 2020 | | | 2020 | | | 2021 | | |||||||||||||||||||||||
| (dollars in millions) | | | (unaudited) | | ||||||||||||||||||||||||||||||||||||||
Statements of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | | $ | 14,756 | | | | | $ | 14,008 | | | | | $ | 13,362 | | | | | $ | 12,623 | | | | | $ | 12,728 | | | | | $ | 3,168 | | | | | $ | 3,163 | | |
Operating income | | | | | 2,309 | | | | | | 1,610 | | | | | | 2,067 | | | | | | 1,821 | | | | | | 2,762 | | | | | | 507 | | | | | | 740 | | |
Net income attributable to DDBS | | | | | 965 | | | | | | 724 | | | | | | 971 | | | | | | 828 | | | | | | 1,584 | | | | | | 244 | | | | | | 425 | | |
| | | As of March 31, 2021 | | |||
| (dollars in millions) (unaudited) | | |||||
Balance Sheet Data: | | | |||||
Cash, cash equivalents and current marketable investment securities | | | | $ | 1,665 | | |
Total assets | | | | | 5,517 | | |
Long-term debt and finance lease obligations (including current portion) (1) | | | | | 10,454 | | |
Total stockholder’s equity (deficit) | | | | $ | (8,888) | | |
| | | As of or for the Years Ended December 31, | | | As of or for the Three Months Ended March 31, | | ||||||||||||||||||||||||||||||||||||
| 2016 | | | 2017 | | | 2018 | | | 2019 | | | 2020 | | | 2020 | | | 2021 | | |||||||||||||||||||||||
| (dollars in millions) | | | (unaudited) | | ||||||||||||||||||||||||||||||||||||||
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pay-TV subscribers (000’s) (unaudited) | | | | | 13,671 | | | | | | 13,242 | | | | | | 12,322 | | | | | | 11,986 | | | | | | 11,290 | | | | | | 11,323 | | | | | | 11,060 | | |
EBITDA (unaudited)(2) | | | | $ | 3,174 | | | | | $ | 2,438 | | | | | $ | 2,734 | | | | | $ | 2,406 | | | | | $ | 3,268 | | | | | $ | 643 | | | | | $ | 853 | | |
Net cash flows from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities | | | | $ | 1,834 | | | | | $ | 1,287 | | | | | $ | 1,197 | | | | | $ | 1,385 | | | | | $ | 1,879 | | | | | $ | 535 | | | | | $ | 563 | | |
Investing activities | | | | | (393) | | | | | | (578) | | | | | | (282) | | | | | | (166) | | | | | | (422) | | | | | | (134) | | | | | | 36 | | |
Financing activities | | | | | (1,084) | | | | | | (1,122) | | | | | | (1,150) | | | | | | (1,271) | | | | | | (239) | | | | | | (94) | | | | | | (221) | | |
| | For the Years Ended December 31, | | For the Six Months Ended June 30, | | | | For the Years Ended December 31, | | For the Three Months Ended March 31, | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2015 | | 2016 | | 2017 | | 2018 | | 2019 | | 2019 | | 2020 | | | 2016 | | 2017 | | 2018 | | 2019 | | 2020 | | 2020 | | 2021 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | (dollars in millions) | | | | (dollars in millions) | | (unaudited) | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA (unaudited) | | | $ | 3,037 | | | | $ | 3,174 | | | | $ | 2,438 | | | | $ | 2,734 | | | | $ | 2,406 | | | | $ | 1,162 | | | | $ | 1,430 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | | | | (857) | | | | | (819) | | | | | (855) | | | | | (784) | | | | | (726) | | | | | (382) | | | | | (345) | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | | | $ | 965 | | | | $ | 724 | | | | $ | 971 | | | | $ | 828 | | | | $ | 1,584 | | | | $ | 244 | | | | $ | 425 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Inerest expense, net | | | | 819 | | | | | 855 | | | | | 784 | | | | | 726 | | | | | 679 | | | | | 181 | | | | | 173 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax provision, net | | | | (474) | | | | | (558) | | | | | (117) | | | | | (318) | | | | | (275) | | | | | (126) | | | | | (208) | | | | | | 558 | | | | | 117 | | | | | 318 | | | | | 275 | | | | | 500 | | | | | 83 | | | | | 140 | | | ||||||||||||||
Depreciation and amortization | | | | (871) | | | | | (832) | | | | | (742) | | | | | (661) | | | | | (577) | | | | | (291) | | | | | (258) | | | | | | 832 | | | | | 742 | | | | | 661 | | | | | 577 | | | | | 505 | | | | | 135 | | | | | 115 | | | ||||||||||||||
Net income attributable to DISH DBS | | | $ | 835 | | | | $ | 965 | | | | $ | 724 | | | | $ | 971 | | | | $ | 828 | | | | $ | 363 | | | | $ | 619 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA (unaudited) | | | $ | 3,174 | | | | $ | 2,438 | | | | $ | 2,734 | | | | $ | 2,406 | | | | $ | 3,268 | | | | $ | 643 | | | | $ | 853 | | |
| | | | | | | | Leased From | | ||||||||||||||||
| Owned | | | EchoStar | | | DISH | | | Other Third Party | | ||||||||||||||
Corporate headquarters, Englewood, Colorado(1) | | | | | | | | | | | X | | | | | | | | | | | | | | |
General offices, | |||||||||||||||||||||||||
| | | | | | | | | | | | | | | | X | | | | | | | |||
| | ||||||||||||||||||||||||
Customer call center, warehouse, service, and remanufacturing center, El Paso, Texas | | | | | X | | | | | | | | | | | | | | | | | | | | |
Data Center, Cheyenne, Wyoming(2) | | | | | | | | | | | | | | | | | X | | | | | | | | |
Digital broadcast operations center, Cheyenne, Wyoming(3) | | | | | X | | | | | | | | | | | | | | | | | | | | |
Digital broadcast operations center, Gilbert, Arizona(3) | | | | | X | | | | | | | | | | | | | | | | | | | | |
Engineering offices and service center, Englewood, Colorado(3) | | | | | X | | | | | | | | | | | | | | | ||||||
| | | | | | ||||||||||||||||||||
Service and remanufacturing center, Spartanburg, South Carolina | | | | | | | | | | | | | | | | | | | | | | | X | | |
Warehouse and distribution center, Denver, Colorado | | | | | | | | | | | | | | | | | | | | | | | X | | |
Warehouse and distribution center, Atlanta, Georgia | | | | | | | | | | | | | | | | | | | | | | | X | | |
Warehouse, Denver, Colorado | | | | | X | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended June 30, | | Variance | | |||||||||||||||||||||||||||||||||||||||||||||
Statements of Operations Data | | | For the Three Months Ended March 31, | | Variance | | ||||||||||||||||||||||||||||||||||||||||||||
| 2020 | | 2019 | | Amount | | % | | | 2021 | | 2020 | | Amount | | % | | |||||||||||||||||||||||||||||||||
| | | | | | | (In thousands) | | | | (In thousands) | | ||||||||||||||||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Subscriber-related revenue | | | $ | 3,117,334 | | | | $ | 3,117,066 | | | | $ | 268 | | | | | 0.0 | | | |||||||||||||||||||||||||||||
Service revenue | | | $ | 3,137,387 | | | | $ | 3,130,900 | | | | $ | 6,487 | | | | | 0.2 | | | |||||||||||||||||||||||||||||
Equipment sales and other revenue | | | | 31,197 | | | | | 49,533 | | | | | (18,336) | | | | | (37.0) | | | | | | 25,532 | | | | | 36,882 | | | | | (11,350) | | | | | (30.8) | | | ||||||||
Total revenue | | | | 3,148,531 | | | | | 3,166,599 | | | | | (18,068) | | | | | (0.6) | | | | | | 3,162,919 | | | | | 3,167,782 | | | | | (4,863) | | | | | (0.2) | | | ||||||||
Costs and Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Subscriber-related expenses | | | | 1,863,895 | | | | | 1,974,439 | | | | | (110,544) | | | | | (5.6) | | | |||||||||||||||||||||||||||||
% of Subscriber-related revenue | | | | 59.8% | | | | | 63.3% | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Satellite and transmission expenses | | | | 117,912 | | | | | 144,983 | | | | | (27,071) | | | | | (18.7) | | | |||||||||||||||||||||||||||||
% of Subscriber-related revenue | | | | 3.8% | | | | | 4.7% | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Cost of services | | | | 1,958,699 | | | | | 2,072,432 | | | | | (113,733) | | | | | (5.5) | | | |||||||||||||||||||||||||||||
% of Service revenue | | | | 62.4% | | | | | 66.2% | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Cost of sales – equipment and other | | | | 23,660 | | | | | 49,603 | | | | | (25,943) | | | | | (52.3) | | | | | | 16,275 | | | | | 30,814 | | | | | (14,539) | | | | | (47.2) | | | ||||||||
Subscriber acquisition costs | | | | 199,724 | | | | | 238,078 | | | | | (38,354) | | | | | (16.1) | | | |||||||||||||||||||||||||||||
General and administrative expenses | | | | 156,574 | | | | | 187,930 | | | | | (31,356) | | | | | (16.7) | | | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | | | | 333,074 | | | | | 422,249 | | | | | (89,175) | | | | | (21.1) | | | |||||||||||||||||||||||||||||
% of Total revenue | | | | 5.0% | | | | | 5.9% | | | | | | | | | | | | | | | | 10.5% | | | | | 13.3% | | | | | | | | | | | | | ||||||||
Depreciation and amortization | | | | 122,869 | | | | | 135,600 | | | | | (12,731) | | | | | (9.4) | | | | | | 115,242 | | | | | 135,085 | | | | | (19,843) | | | | | (14.7) | | | ||||||||
Total costs and expenses | | | | 2,484,634 | | | | | 2,730,633 | | | | | (245,999) | | | | | (9.0) | | | | | | 2,423,290 | | | | | 2,660,580 | | | | | (237,290) | | | | | (8.9) | | | ||||||||
Operating income (loss) | | | | 663,897 | | | | | 435,966 | | | | | 227,931 | | | | | 52.3 | | | | | | 739,629 | | | | | 507,202 | | | | | 232,427 | | | | | 45.8 | | | ||||||||
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Interest income | | | | 1,112 | | | | | 5,593 | | | | | (4,481) | | | | | (80.1) | | | | | | 806 | | | | | 850 | | | | | (44) | | | | | (5.2) | | | ||||||||
Interest expense, net of amounts capitalized | | | | (164,047) | | | | | (194,857) | | | | | 30,810 | | | | | 15.8 | | | | | | (173,976) | | | | | (182,340) | | | | | 8,364 | | | | | 4.6 | | | ||||||||
Other, net | | | | (152) | | | | | 3,131 | | | | | (3,283) | | | | | * | | | | | | (1,508) | | | | | 945 | | | | | (2,453) | | | | | * | | | ||||||||
Total other income (expense) | | | | (163,087) | | | | | (186,133) | | | | | 23,046 | | | | | 12.4 | | | | | | (174,678) | | | | | (180,545) | | | | | 5,867 | | | | | 3.2 | | | ||||||||
Income (loss) before income taxes | | | | 500,810 | | | | | 249,833 | | | | | 250,977 | | | | | * | | | | | | 564,951 | | | | | 326,657 | | | | | 238,294 | | | | | 72.9 | | | ||||||||
Income tax (provision) benefit, net | | | | (125,830) | | | | | (64,465) | | | | | (61,365) | | | | | (95.2) | | | | | | (140,424) | | | | | (82,504) | | | | | (57,920) | | | | | (70.2) | | | ||||||||
Effective tax rate | | | | 25.1% | | | | | 25.8% | | | | | | | | | | | | | | | | 24.9% | | | | | 25.3% | | | | | | | | | | | | | ||||||||
Net income (loss) | | | | 374,980 | | | | | 185,368 | | | | | 189,612 | | | | | * | | | | | $ | 424,527 | | | | $ | 244,153 | | | | $ | 180,374 | | | | | 73.9 | | | ||||||||
Less: Net income (loss) attributable to noncontrolling interests, net of tax | | | | — | | | | | — | | | | | — | | | | | * | | | |||||||||||||||||||||||||||||
Net income (loss) attributable to DISH DBS | | | $ | 374,980 | | | | $ | 185,368 | | | | $ | 189,612 | | | | | * | | | |||||||||||||||||||||||||||||
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Pay-TV subscribers, as of period end (in millions)** | | | | 11.272 | | | | | 12.032 | | | | | (0.760) | | | | | (6.3) | | | | | | 11.060 | | | | | 11.323 | | | | | (0.263) | | | | | (2.3) | | | ||||||||
DISH TV subscribers, as of period end (in millions)** | | | | 9.017 | | | | | 9.560 | | | | | (0.543) | | | | | (5.7) | | | | | | 8.686 | | | | | 9.012 | | | | | (0.326) | | | | | (3.6) | | | ||||||||
SLING TV subscribers, as of period end (in millions) | | | | 2.255 | | | | | 2.472 | | | | | (0.217) | | | | | (8.8) | | | | | | 2.374 | | | | | 2.311 | | | | | 0.063 | | | | | 2.7 | | | ||||||||
Pay-TV subscriber additions (losses), net (in millions)** | | | | (0.096) | | | | | (0.031) | | | | | (0.065) | | | | | * | | | | | | (0.230) | | | | | (0.413) | | | | | 0.183 | | | | | 44.3 | | | ||||||||
DISH TV subscriber additions (losses), net (in millions)** | | | | (0.040) | | | | | (0.079) | | | | | 0.039 | | | | | 49.4 | | | | | | (0.130) | | | | | (0.132) | | | | | 0.002 | | | | | 1.5 | | | ||||||||
SLING TV subscriber additions (losses), net (in millions) | | | | (0.056) | | | | | 0.048 | | | | | (0.104) | | | | | * | | | |||||||||||||||||||||||||||||
SLING TV subscriber additions (losses), net (in millions) . . | | | | (0.100) | | | | | (0.281) | | | | | 0.181 | | | | | 64.4 | | | |||||||||||||||||||||||||||||
Pay-TV ARPU | | | $ | 92.17 | | | | $ | 86.34 | | | | $ | 5.83 | | | | | 6.8 | | | | | $ | 93.63 | | | | $ | 88.76 | | | | $ | 4.87 | | | | | 5.5 | | | ||||||||
DISH TV subscriber additions, gross (in millions) | | | | 0.268 | | | | | 0.348 | | | | | (0.080) | | | | | (23.0) | | | |||||||||||||||||||||||||||||
DISH TV subscriber additions, gross (in millions) . . | | | | 0.210 | | | | | 0.299 | | | | | (0.089) | | | | | (29.8) | | | |||||||||||||||||||||||||||||
DISH TV churn rate | | | | 1.14% | | | | | 1.48% | | | | | (0.34)% | | | | | (23.0) | | | | | | 1.30% | | | | | 1.54% | | | | | (0.24)% | | | | | (15.6) | | | ||||||||
DISH TV SAC | | | $ | 834 | | | | $ | 786 | | | | $ | 48 | | | | | 6.1 | | | |||||||||||||||||||||||||||||
DISH TV SAC . | | | $ | 790 | | | | $ | 861 | | | | $ | (71) | | | | | (8.2) | | | |||||||||||||||||||||||||||||
EBITDA | | | $ | 786,614 | | | | $ | 574,697 | | | | $ | 211,917 | | | | | 36.9 | | | | | $ | 853,363 | | | | $ | 643,232 | | | | $ | 210,131 | | | | | 32.7 | | | ||||||||
OIBDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | | | $ | 854,871 | | | | $ | 642,287 | | | | $ | 212,584 | | | | | 33.1 | | |
| | | For the Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (In thousands) | | |||||||||
Net income (loss) | | | | $ | 424,527 | | | | | $ | 244,153 | | |
Inerest, net | | | | | 173,170 | | | | | | 181,490 | | |
Income tax provision (benefit), net | | | | | 140,424 | | | | | | 82,504 | | |
Depreciation and amortization | | | | | 115,242 | | | | | | 135,085 | | |
EBITDA | | | | $ | 853,363 | | | | | $ | 643,232 | | |
| | | For the Three Months Ended March 31, | | |||||||||
| 2021 | | | 2020 | | ||||||||
| | | (In thousands) | | |||||||||
Operating income (loss) | | | | $ | 739,629 | | | | | $ | 507,202 | | |
Depreciation and amortization | | | | | 115,242 | | | | | | 135,085 | | |
OIBDA | | | | $ | 854,871 | | | | | $ | 642,287 | | |
Statements of Operations Data | | | For the Years Ended December 31, | | | Variance | | ||||||||||||||||||
| 2020 | | | 2019 | | | Amount | | | % | | ||||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Service revenue | | | | $ | 12,576,470 | | | | | $ | 12,436,637 | | | | | $ | 139,833 | | | | | | 1.1 | | |
Equipment sales and other revenue | | | | | 151,159 | | | | | | 186,256 | | | | | | (35,097) | | | | | | (18.8) | | |
Total revenue | | | | | 12,727,629 | | | | | | 12,622,893 | | | | | | 104,736 | | | | | | 0.8 | | |
Costs and Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of services | | | | | 7,916,036 | | | | | | 8,384,473 | | | | | | (468,437) | | | | | | (5.6) | | |
% of Service revenue | | | | | 62.9% | | | | | | 67.4% | | | | | | | | | | | | | | |
Cost of sales – equipment and other | | | | | 104,470 | | | | | | 172,700 | | | | | | (68,230) | | | | | | (39.5) | | |
Selling, general and administrative expenses | | | | | 1,440,553 | | | | | | 1,667,174 | | | | | | (226,621) | | | | | | (13.6) | | |
% of Total revenue | | | | | 11.3% | | | | | | 13.2% | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 504,638 | | | | | | 577,348 | | | | | | (72,710) | | | | | | (12.6) | | |
Total costs and expenses | | | | | 9,965,697 | | | | | | 10,801,695 | | | | | | (835,998) | | | | | | (7.7) | | |
Operating income (loss) | | | | | 2,761,932 | | | | | | 1,821,198 | | | | | | 940,734 | | | | | | 51.7 | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | | 3,548 | | | | | | 30,041 | | | | | | (26,493) | | | | | | (88.2) | | |
Interest expense, net of amounts capitalized | | | | | (682,506) | | | | | | (756,690) | | | | | | 74,184 | | | | | | 9.8 | | |
Statements of Operations Data | | | For the Years Ended December 31, | | | Variance | | ||||||||||||||||||
| 2020 | | | 2019 | | | Amount | | | % | | ||||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Other, net | | | | | 1,686 | | | | | | 7,609 | | | | | | (5,923) | | | | | | (77.8) | | |
Total other income (expense) | | | | | (677,272) | | | | | | (719,040) | | | | | | 41,768 | | | | | | 5.8 | | |
Income (loss) before income taxes | | | | | 2,084,660 | | | | | | 1,102,158 | | | | | | 982,502 | | | | | | 89.1 | | |
Income tax (provision) benefit, net | | | | | (500,358) | | | | | | (274,751) | | | | | | (225,607) | | | | | | (82.1) | | |
Effective tax rate | | | | | 24.0% | | | | | | 24.9% | | | | | | | | | | | | | | |
Net income (loss) | | | | | 1,584,302 | | | | | | 827,407 | | | | | | 756,895 | | | | | | 91.5 | | |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | | | | | — | | | | | | (124) | | | | | | 124 | | | | | | * | | |
Net income (loss) attributable to DISH DBS | | | | $ | 1,584,302 | | | | | $ | 827,531 | | | | | $ | 756,771 | | | | | | 91.4 | | |
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Pay-TV subscribers, as of period end (in millions)** | | | | | 11.290 | | | | | | 11.986 | | | | | | (0.696) | | | | | | (5.8) | | |
DISH TV subscribers, as of period end (in millions)** | | | | | 8.816 | | | | | | 9.394 | | | | | | (0.578) | | | | | | (6.2) | | |
SLING TV subscribers, as of period end (in millions) | | | | | 2.474 | | | | | | 2.592 | | | | | | (0.118) | | | | | | (4.6) | | |
Pay-TV subscriber additions (losses), net (in millions) | | | | | (0.526) | | | | | | (0.336) | | | | | | (0.190) | | | | | | (56.5) | | |
DISH TV subscriber additions (losses), net (in millions) | | | | | (0.408) | | | | | | (0.511) | | | | | | 0.103 | | | | | | 20.2 | | |
SLING TV subscriber additions (losses), net (in millions) | | | | | (0.118) | | | | | | 0.175 | | | | | | (0.293) | | | | | | * | | |
Pay-TV ARPU | | | | $ | 91.77 | | | | | $ | 85.92 | | | | | $ | 5.85 | | | | | | 6.8 | | |
DISH TV subscriber additions, gross (in millions) | | | | | 1.094 | | | | | | 1.348 | | | | | | (0.254) | | | | | | (18.8) | | |
DISH TV churn rate | | | | | 1.38% | | | | | | 1.62% | | | | | | (0.24)% | | | | | | (14.8) | | |
DISH TV SAC | | | | $ | 851 | | | | | $ | 822 | | | | | $ | 29 | | | | | | 3.5 | | |
EBITDA | | | | $ | 3,268,256 | | | | | $ | 2,406,279 | | | | | $ | 861,977 | | | | | | 35.8 | | |
OIBDA | | | | $ | 3,266,570 | | | | | $ | 2,398,546 | | | | | $ | 868,024 | | | | | | 36.2 | | |
| | | For the Three Months Ended June 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | | | | | | | (In thousands) | | |||
EBITDA | | | | $ | 786,614 | | | | | $ | 574,697 | | |
Interest, net | | | | | (162,935) | | | | | | (189,264) | | |
Income tax (provision) benefit, net | | | | | (125,830) | | | | | | (64,465) | | |
Depreciation and amortization | | | | | (122,869) | | | | | | (135,600) | | |
Net income (loss) attributable to DISH DBS | | | | $ | 374,980 | | | | | $ | 185,368 | | |
| | | For the Six Months Ended June 30, | | | Variance | | ||||||||||||||||||
Statements of Operations Data | | | 2020 | | | 2019 | | | Amount | | | % | | ||||||||||||
| | | | | | | | | (In thousands) | | | | |||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Subscriber-related revenue | | | | $ | 6,248,234 | | | | | $ | 6,215,002 | | | | | $ | 33,232 | | | | | | 0.5 | | |
Equipment sales and other revenue | | | | | 68,079 | | | | | | 89,597 | | | | | | (21,518) | | | | | | (24.0) | | |
Total revenue | | | | | 6,316,313 | | | | | | 6,304,599 | | | | | | 11,714 | | | | | | 0.2 | | |
Costs and Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Subscriber-related expenses | | | | | 3,797,718 | | | | | | 3,950,875 | | | | | | (153,157) | | | | | | (3.9) | | |
% of Subscriber-related revenue | | | | | 60.8% | | | | | | 63.6% | | | | | | | | | | | | | | |
Satellite and transmission expenses | | | | | 239,973 | | | | | | 299,880 | | | | | | (59,907) | | | | | | (20.0) | | |
% of Subscriber-related revenue | | | | | 3.8% | | | | | | 4.8% | | | | | | | | | | | | | | |
Cost of sales – equipment and other | | | | | 54,474 | | | | | | 89,944 | | | | | | (35,470) | | | | | | (39.4) | | |
Subscriber acquisition costs | | | | | 453,597 | | | | | | 431,977 | | | | | | 21,620 | | | | | | 5.0 | | |
General and administrative expenses | | | | | 341,498 | | | | | | 374,507 | | | | | | (33,009) | | | | | | (8.8) | | |
% of Total revenue | | | | | 5.4% | | | | | | 5.9% | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 257,954 | | | | | | 290,715 | | | | | | (32,761) | | | | | | (11.3) | | |
Total costs and expenses | | | | | 5,145,214 | | | | | | 5,437,898 | | | | | | (292,684) | | | | | | (5.4) | | |
Operating income (loss) | | | | | 1,171,099 | | | | | | 866,701 | | | | | | 304,398 | | | | | | 35.1 | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | | 1,962 | | | | | | 8,528 | | | | | | (6,566) | | | | | | (77.0) | | |
Interest expense, net of amounts capitalized | | | | | (346,387) | | | | | | (390,502) | | | | | | 44,115 | | | | | | 11.3 | | |
Other, net | | | | | 793 | | | | | | 4,564 | | | | | | (3,771) | | | | | | (82.6) | | |
Total other income (expense) | | | | | (343,632) | | | | | | (377,410) | | | | | | 33,778 | | | | | | 8.9 | | |
Income (loss) before income taxes | | | | | 827,467 | | | | | | 489,291 | | | | | | 338,176 | | | | | | 69.1 | | |
Income tax (provision) benefit, net | | | | | (208,334) | | | | | | (126,287) | | | | | | (82,047) | | | | | | (65.0) | | |
Effective tax rate | | | | | 25.2% | | | | | | 25.8% | | | | | | | | | | | | | | |
Net income (loss) | | | | | 619,133 | | | | | | 363,004 | | | | | | 256,129 | | | | | | 70.6 | | |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | | | | | — | | | | | | (124) | | | | | | 124 | | | | | | * | | |
Net income (loss) attributable to DISH DBS | | | | $ | 619,133 | | | | | $ | 363,128 | | | | | $ | 256,005 | | | | | | 70.5 | | |
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Pay-TV subscribers, as of period end (in millions) | | | | | 11.272 | | | | | | 12.032 | | | | | | (0.760) | | | | | | (6.3) | | |
DISH TV subscribers, as of period end (in millions) | | | | | 9.017 | | | | | | 9.560 | | | | | | (0.543) | | | | | | (5.7) | | |
SLING TV subscribers, as of period end (in millions) | | | | | 2.255 | | | | | | 2.472 | | | | | | (0.217) | | | | | | (8.8) | | |
Pay-TV subscriber additions (losses), net (in millions) | | | | | (0.509) | | | | | | (0.290) | | | | | | (0.219) | | | | | | (75.5) | | |
DISH TV subscriber additions (losses), net (in millions) | | | | | (0.172) | | | | | | (0.345) | | | | | | 0.173 | | | | | | 50.1 | | |
SLING TV subscriber additions (losses), net (in millions) | | | | | (0.337) | | | | | | 0.055 | | | | | | (0.392) | | | | | | * | | |
Pay-TV ARPU | | | | $ | 90.43 | | | | | $ | 85.68 | | | | | $ | 4.75 | | | | | | 5.5 | | |
DISH TV subscriber additions, gross (in millions) | | | | | 0.567 | | | | | | 0.591 | | | | | | (0.024) | | | | | | (4.1) | | |
DISH TV churn rate | | | | | 1.34% | | | | | | 1.61% | | | | | | (0.27)% | | | | | | (16.8) | | |
DISH TV SAC | | | | $ | 849 | | | | | $ | 803 | | | | | $ | 46 | | | | | | 5.7 | | |
EBITDA | | | | $ | 1,429,846 | | | | | $ | 1,162,104 | | | | | $ | 267,742 | | | | | | 23.0 | | |
| | | For the Six Months Ended June 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
EBITDA | | | | $ | 1,429,846 | | | | | $ | 1,162,104 | | |
Interest, net | | | | | (344,425) | | | | | | (381,974) | | |
Income tax (provision) benefit, net | | | | | (208,334) | | | | | | (126,287) | | |
Depreciation and amortization | | | | | (257,954) | | | | | | (290,715) | | |
Net income (loss) attributable to DISH DBS | | | | $ | 619,133 | | | | | $ | 363,128 | | |
|
| | | For the Years Ended December 31, | | |||||||||
| 2021 | | | 2020 | | ||||||||
| (In thousands) | | |||||||||||
Net income (loss) attributable to DISH DBS | | | | $ | 1,584,302 | | | | | $ | 827,531 | | |
Inerest, net | | | | | 678,958 | | | | | | 726,649 | | |
Income tax provision (benefit), net | | | | | 500,358 | | | | | | 274,751 | | |
Depreciation and amortization | | | | | 504,638 | | | | | | 577,348 | | |
EBITDA | | | | $ | 3,268,256 | | | | | $ | 2,406,279 | | |
| | | For the Years Ended December 31, | | |||||||||
| 2020 | | | 2019 | | ||||||||
| (In thousands) | | |||||||||||
Operating income (loss) | | | | $ | 2,761,932 | | | | | $ | 1,821,198 | | |
Depreciation and amortization | | | | | 504,638 | | | | | | 577,348 | | |
OIBDA | | | | $ | 3,266,570 | | | | | $ | 2,398,546 | | |
| | For the Years Ended December 31, | | Variance | | |||||||||||||||||||||||||||||||||||||||||||||
Statements of Operations Data | | | For the Years Ended December 31, | | Variance | | ||||||||||||||||||||||||||||||||||||||||||||
| 2019 | | 2018 | | Amount | | % | | | 2019 | | 2018 | | Amount | | % | | |||||||||||||||||||||||||||||||||
| | | | | | | (In thousands) | | | | (In thousands) | | ||||||||||||||||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Subscriber-related revenue | | | $ | 12,436,637 | | | | $ | 13,197,994 | | | | $ | (761,357) | | | | | (5.8) | | | | | $ | 12,436,637 | | | | $ | 13,197,994 | | | | $ | (761,357) | | | | | (5.8) | | | ||||||||
Equipment sales and other revenue | | | | 186,256 | | | | | 164,145 | | | | | 22,111 | | | | | 13.5 | | | | | | 186,256 | | | | | 164,145 | | | | | 22,111 | | | | | 13.5 | | | ||||||||
Total revenue | | | | 12,622,893 | | | | | 13,362,139 | | | | | (739,246) | | | | | (5.5) | | | | | | 12,622,893 | | | | | 13,362,139 | | | | | (739,246) | | | | | (5.5) | | | ||||||||
Costs and Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Subscriber-related expenses | | | | 7,768,732 | | | | | 8,392,150 | | | | | (623,418) | | | | | (7.4) | | | | | | 7,768,732 | | | | | 8,392,150 | | | | | (623,418) | | | | | (7.4) | | | ||||||||
% of Subscriber-related revenue | | | | 62.5% | | | | | 63.6% | | | | | | | | | | | | | | | | 62.5% | | | | | 63.6% | | | | | | | | | | | | | ||||||||
Satellite and transmission expenses | | | | 555,803 | | | | | 637,160 | | | | | (81,357) | | | | | (12.8) | | | | | | 555,803 | | | | | 637,160 | | | | | (81,357) | | | | | (12.8) | | | ||||||||
% of Subscriber-related revenue | | | | 4.5% | | | | | 4.8% | | | | | | | | | | | | | | | | 4.5% | | | | | 4.8% | | | | | | | | | | | | | ||||||||
Cost of sales – equipment and other | | | | 172,700 | | | | | 143,671 | | | | | 29,029 | | | | | 20.2 | | | | | | 172,700 | | | | | 143,671 | | | | | 29,029 | | | | | 20.2 | | | ||||||||
Subscriber acquisition costs | | | | 994,523 | | | | | 769,307 | | | | | 225,216 | | | | | 29.3 | | | | | | 994,523 | | | | | 769,307 | | | | | 225,216 | | | | | 29.3 | | | ||||||||
General and administrative expenses | | | | 732,589 | | | | | 692,881 | | | | | 39,708 | | | | | 5.7 | | | | | | 732,589 | | | | | 692,881 | | | | | 39,708 | | | | | 5.7 | | | ||||||||
% of Total revenue | | | | 5.8% | | | | | 5.2% | | | | | | | | | | | | | | | | 5.8% | | | | | 5.2% | | | | | | | | | | | | | ||||||||
Depreciation and amortization | | | | 577,348 | | | | | 660,460 | | | | | (83,112) | | | | | (12.6) | | | | | | 577,348 | | | | | 660,460 | | | | | (83,112) | | | | | (12.6) | | | ||||||||
Total costs and expenses | | | | 10,801,695 | | | | | 11,295,629 | | | | | (493,934) | | | | | (4.4) | | | | | | 10,801,695 | | | | | 11,295,629 | | | | | (493,934) | | | | | (4.4) | | | ||||||||
Operating income (loss) | | | | 1,821,198 | | | | | 2,066,510 | | | | | (245,312) | | | | | (11.9) | | | | | | 1,821,198 | | | | | 2,066,510 | | | | | (245,312) | | | | | (11.9) | | | ||||||||
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Interest income | | | | 30,041 | | | | | 8,923 | | | | | 21,118 | | | | | * | | | | | | 30,041 | | | | | 8,923 | | | | | 21,118 | | | | | * | | | ||||||||
Interest expense, net of amounts capitalized | | | | (756,690) | | | | | (792,436) | | | | | 35,746 | | | | | 4.5 | | | | | | (756,690) | | | | | (792,436) | | | | | 35,746 | | | | | 4.5 | | | ||||||||
Other, net | | | | 7,609 | | | | | 8,994 | | | | | (1,385) | | | | | (15.4) | | | | | | 7,609 | | | | | 8,994 | | | | | (1,385) | | | | | (15.4) | | | ||||||||
Total other income (expense) | | | | (719,040) | | | | | (774,519) | | | | | 55,479 | | | | | 7.2 | | | | | | (719,040) | | | | | (774,519) | | | | | 55,479 | | | | | 7.2 | | | ||||||||
Income (loss) before income taxes | | | | 1,102,158 | | | | | 1,291,991 | | | | | (189,833) | | | | | (14.7) | | | | | | 1,102,158 | | | | | 1,291,991 | | | | | (189,833) | | | | | (14.7) | | | ||||||||
Income tax (provision) benefit, net | | | | (274,751) | | | | | (318,305) | | | | | 43,554 | | | | | 13.7 | | | | | | (274,751) | | | | | (318,305) | | | | | 43,554 | | | | | 13.7 | | | ||||||||
Effective tax rate | | | | 24.9% | | | | | 24.6% | | | | | | | | | | | | | | | | 24.9% | | | | | 24.6% | | | | | | | | | | | | | ||||||||
Net income (loss) | | | | 827,407 | | | | | 973,686 | | | | | (146,279) | | | | | (15.0) | | | | | | 827,407 | | | | | 973,686 | | | | | (146,279) | | | | | (15.0) | | | ||||||||
Less: Net income (loss) attributable to noncontrolling interests, net of tax | | | | (124) | | | | | 2,399 | | | | | (2,523) | | | | | * | | | | ��� | | | (124) | | | | | 2,399 | | | | | (2,523) | | | | | * | | | |||||||
Net income (loss) attributable to DISH DBS | | | $ | 827,531 | | | | $ | 971,287 | | | | $ | (143,756) | | | | | (14.8) | | | | | $ | 827,531 | | | | $ | 971,287 | | | | $ | (143,756) | | | | | (14.8) | | | ||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||
Other Data: | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||
Pay-TV subscribers, as of period end (in millions) | | | | 11.986 | | | | | 12.322 | | | | | (0.336) | | | | | (2.7) | | | |||||||||||||||||||||||||||||
DISH TV subscribers, as of period end (in millions) | | | | 9.394 | | | | | 9.905 | | | | | (0.511) | | | | | (5.2) | | | |||||||||||||||||||||||||||||
Sling TV subscribers, as of period end (in millions) | | | | 2.592 | | | | | 2.417 | | | | | 0.175 | | | | | 7.2 | | | |||||||||||||||||||||||||||||
Pay-TV subscriber additions (losses), net (in millions) | | | | (0.336) | | | | | (0.920) | | | | | 0.584 | | | | | 63.5 | | | |||||||||||||||||||||||||||||
DISH TV subscriber additions (losses), net (in millions) | | | | (0.511) | | | | | (1.125) | | | | | 0.614 | | | | | 54.6 | | | |||||||||||||||||||||||||||||
Sling TV subscriber additions (losses), net (in millions) | | | | 0.175 | | | | | 0.205 | | | | | (0.030) | | | | | (14.6) | | | |||||||||||||||||||||||||||||
Pay-TV ARPU | | | $ | 85.92 | | | | $ | 85.46 | | | | $ | 0.46 | | | | | 0.5 | | | |||||||||||||||||||||||||||||
DISH TV subscriber additions, gross (in millions) | | | | 1.348 | | | | | 1.114 | | | | | 0.234 | | | | | 21.0 | | | |||||||||||||||||||||||||||||
DISH TV churn rate | | | | 1.62% | | | | | 1.78% | | | | | (0.16)% | | | | | (9.0) | | | |||||||||||||||||||||||||||||
DISH TV SAC | | | $ | 822 | | | | $ | 759 | | | | $ | 63 | | | | | 8.3 | | | |||||||||||||||||||||||||||||
EBITDA | | | $ | 2,406,279 | | | | $ | 2,733,565 | | | | $ | (327,286) | | | | | (12.0) | | |
| | | For the Years Ended December 31, | | | Variance | | ||||||||||||||||||
Statements of Operations Data | | | 2019 | | | 2018 | | | Amount | | | % | | ||||||||||||
| | | | | | | | | (In thousands) | | | | |||||||||||||
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Pay-TV subscribers, as of period end (in millions) | | | | | 11.986 | | | | | | 12.322 | | | | | | (0.336) | | | | | | (2.7) | | |
DISH TV subscribers, as of period end (in millions) | | | | | 9.394 | | | | | | 9.905 | | | | | | (0.511) | | | | | | (5.2) | | |
Sling TV subscribers, as of period end (in millions) | | | | | 2.592 | | | | | | 2.417 | | | | | | 0.175 | | | | | | 7.2 | | |
Pay-TV subscriber additions (losses), net (in millions) | | | | | (0.336) | | | | | | (0.920) | | | | | | 0.584 | | | | | | 63.5 | | |
DISH TV subscriber additions (losses), net (in millions) | | | | | (0.511) | | | | | | (1.125) | | | | | | 0.614 | | | | | | 54.6 | | |
Sling TV subscriber additions (losses), net (in millions) | | | | | 0.175 | | | | | | 0.205 | | | | | | (0.030) | | | | | | (14.6) | | |
Pay-TV ARPU | | | | $ | 85.92 | | | | | $ | 85.46 | | | | | $ | 0.46 | | | | | | 0.5 | | |
DISH TV subscriber additions, gross (in millions) | | | | | 1.348 | | | | | | 1.114 | | | | | | 0.234 | | | | | | 21.0 | | |
DISH TV churn rate | | | | | 1.62% | | | | | | 1.78% | | | | | | (0.16)% | | | | | | (9.0) | | |
DISH TV SAC | | | | $ | 822 | | | | | $ | 759 | | | | | $ | 63 | | | | | | 8.3 | | |
EBITDA | | | | $ | 2,406,279 | | | | | $ | 2,733,565 | | | | | $ | (327,286) | | | | | | (12.0) | | |
| | | For the Years Ended December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
| | | (In thousands) | | |||||||||
EBITDA | | | | $ | 2,406,279 | | | | | $ | 2,733,565 | | |
Interest, net | | | | | (726,649) | | | | | | (783,513) | | |
Income tax (provision) benefit, net | | | | | (274,751) | | | | | | (318,305) | | |
Depreciation and amortization | | | | | (577,348) | | | | | | (660,460) | | |
Net income (loss) attributable to DISH DBS | | | | $ | 827,531 | | | | | $ | 971,287 | | |
| | | For the Years Ended December 31, | | |||||||||
| 2019 | | | 2018 | | ||||||||
| | | (In thousands) | | |||||||||
Net income (loss) attributable to DISH DBS | | | | $ | 827,531 | | | | | $ | 971,287 | | |
Inerest, net | | | | | 726,649 | | | | | | 783,513 | | |
Income tax provision (benefit), net | | | | | 274,751 | | | | | | 318,305 | | |
Depreciation and amortization | | | | | 577,348 | | | | | | 660,460 | | |
EBITDA | | | | $ | 2,406,279 | | | | | $ | 2,733,565 | | |
| | | For the Years Ended December 31, | | | Variance | | ||||||||||||||||||
Statements of Operations Data | | | 2018 | | | 2017 | | | Amount | | | % | | ||||||||||||
| | | | | | | | | (In thousands) | | | | |||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Subscriber-related revenue | | | | $ | 13,197,994 | | | | | $ | 13,877,196 | | | | | $ | (679,202) | | | | | | (4.9) | | |
Equipment sales and other revenue | | | | | 164,145 | | | | | | 130,315 | | | | | | 33,830 | | | | | | 26.0 | | |
Total revenue | | | | | 13,362,139 | | | | | | 14,007,511 | | | | | | (645,372) | | | | | | (4.6) | | |
Costs and Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Subscriber-related expenses | | | | | 8,392,150 | | | | | | 8,692,676 | | | | | | (300,526) | | | | | | (3.5) | | |
% of Subscriber-related revenue | | | | | 63.6% | | | | | | 62.6% | | | | | | | | | | | | | | |
Satellite and transmission expenses | | | | | 637,160 | | | | | | 717,231 | | | | | | (80,071) | | | | | | (11.2) | | |
% of Subscriber-related revenue | | | | | 4.8% | | | | | | 5.2% | | | | | | | | | | | | | | |
Cost of sales – equipment and other | | | | | 143,671 | | | | | | 95,116 | | | | | | 48,555 | | | | | | 51.0 | | |
Subscriber acquisition costs | | | | | 769,307 | | | | | | 1,185,211 | | | | | | (415,904) | | | | | | (35.1) | | |
General and administrative expenses | | | | | 692,881 | | | | | | 669,934 | | | | | | 22,947 | | | | | | 3.4 | | |
% of Total revenue | | | | | 5.2% | | | | | | 4.8% | | | | | | | | | | | | | | |
Litigation expense | | | | | — | | | | | | 295,695 | | | | | | (295,695) | | | | | | * | | |
Depreciation and amortization | | | | | 660,460 | | | | | | 741,772 | | | | | | (81,312) | | | | | | (11.0) | | |
Total costs and expenses | | | | | 11,295,629 | | | | | | 12,397,635 | | | | | | (1,102,006) | | | | | | (8.9) | | |
Operating income (loss) | | | | | 2,066,510 | | | | | | 1,609,876 | | | | | | 456,634 | | | | | | 28.4 | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | | 8,923 | | | | | | 9,855 | | | | | | (932) | | | | | | (9.5) | | |
Interest expense, net of amounts capitalized | | | | | (792,436) | | | | | | (865,181) | | | | | | 72,745 | | | | | | 8.4 | | |
Other, net | | | | | 8,994 | | | | | | 88,511 | | | | | | (79,517) | | | | | | (89.8) | | |
Total other income (expense) | | | | | (774,519) | | | | | | (766,815) | | | | | | (7,704) | | | | | | (1.0) | | |
Income (loss) before income taxes | | | | | 1,291,991 | | | | | | 843,061 | | | | | | 448,930 | | | | | | 53.3 | | |
Income tax (provision) benefit, net | | | | | (318,305) | | | | | | (117,616) | | | | | | (200,689) | | | | | | * | | |
Effective tax rate | | | | | 24.6% | | | | | | 14.0% | | | | | | | | | | | | | | |
Net income (loss) | | | | | 973,686 | | | | | | 725,445 | | | | | | 248,241 | | | | | | 34.2 | | |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | | | | | 2,399 | | | | | | 1,919 | | | | | | 480 | | | | | | 25.0 | | |
Net income (loss) attributable to DISH DBS | | | | $ | 971,287 | | | | | $ | 723,526 | | | | | $ | 247,761 | | | | | | 34.2 | | |
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Pay-TV subscribers, as of period end (in millions) | | | | | 12.322 | | | | | | 13.242 | | | | | | (0.920) | | | | | | (6.9) | | |
DISH TV subscribers, as of period end (in millions) | | | | | 9.905 | | | | | | 11.030 | | | | | | (1.125) | | | | | | (10.2) | | |
Sling TV subscribers, as of period end (in millions) | | | | | 2.417 | | | | | | 2.212 | | | | | | 0.205 | | | | | | 9.3 | | |
Pay-TV subscriber additions (losses), net (in millions) | | | | | (0.920) | | | | | | (0.284) | | | | | | (0.636) | | | | | | * | | |
DISH TV subscriber additions (losses), net (in millions) | | | | | (1.125) | | | | | | (0.995) | | | | | | (0.130) | | | | | | (13.1) | | |
Sling TV subscriber additions (losses), net (in millions) | | | | | 0.205 | | | | | | 0.711 | | | | | | (0.506) | | | | | | (71.2) | | |
Pay-TV ARPU | | | | $ | 85.46 | | | | | $ | 86.43 | | | | | $ | (0.97) | | | | | | (1.1) | | |
DISH TV subscriber additions, gross (in millions) | | | | | 1.114 | | | | | | 1.477 | | | | | | (0.363) | | | | | | (24.6) | | |
DISH TV churn rate | | | | | 1.78% | | | | | | 1.78% | | | | | | —% | | | | | | * | | |
DISH TV SAC | | | | $ | 759 | | | | | $ | 751 | | | | | $ | 8 | | | | | | 1.1 | | |
EBITDA | | | | $ | 2,733,565 | | | | | $ | 2,438,240 | | | | | $ | 295,325 | | | | | | 12.1 | | |
| | | For the Years Ended December 31, | | |||||||||
| | | 2018 | | | 2017 | | ||||||
| | | (In thousands) | | |||||||||
EBITDA | | | | $ | 2,733,565 | | | | | $ | 2,438,240 | | |
Interest, net | | | | | (783,513) | | | | | | (855,326) | | |
Income tax (provision) benefit, net | | | | | (318,305) | | | | | | (117,616) | | |
Depreciation and amortization | | | | | (660,460) | | | | | | (741,772) | | |
Net income (loss) attributable to DISH DBS | | | | $ | 971,287 | | | | | $ | 723,526 | | |
Year | | | Percentage | | |||
2023 | | | | | 103.6875% | | |
2024 | | | | | 101.8438% | | |
2025 and thereafter | | | | | 100.0000% | | |
| | As of June 30, 2020 | | | | As of March 31, 2021 | | |||||||||||||||||||
| | Actual | | As Adjusted | | | Actual | | As Adjusted | | ||||||||||||||||
| | (in millions) | | | (in millions) | | ||||||||||||||||||||
Cash, cash equivalents and current marketable investment securities | | | $ | 27 | | | | $ | 1,025 | | | | | $ | 1,665 | | | | $ | 3,155 | | | ||||
Debt | | | | | | | | | | | | | | | | | | | | | | | ||||
63∕4% Senior Notes due 2021 | | | | 2,000 | | | | | 2,000 | | | | | | 1,795 | | | | | 1,795 | | | ||||
57∕8% Senior Notes due 2022 | | | | 2,000 | | | | | 2,000 | | | | | | 2,000 | | | | | 2,000 | | | ||||
5% Senior Notes due 2023 | | | | 1,500 | | | | | 1,500 | | | | | | 1,500 | | | | | 1,500 | | | ||||
57∕8% Senior Notes due 2024 | | | | 2,000 | | | | | 2,000 | | | | | | 2,000 | | | | | 2,000 | | | ||||
7 3∕4 Senior Notes due 2026 | | | | 2,000 | | | | | 2,000 | | | |||||||||||||||
7 3∕8 Senior Notes due 2028 | | | | — | | | | | 1,000 | | | |||||||||||||||
Finance lease obligations and other notes payable, including current portion | | | | 215 | | | | | 215 | | | |||||||||||||||
73∕4% Senior Notes due 2026 | | | | 2,000 | | | | | 2,000 | | | |||||||||||||||
73∕8% Senior Notes due 2028 | | | | 1,000 | | | | | 1,000 | | | |||||||||||||||
Notes offered hereby | | | | — | | | | | 1,500 | | | |||||||||||||||
Other notes payable | | | | 23 | | | | | 23 | | | |||||||||||||||
Unamortized deferred financing costs and debt discounts, net | | | | (14) | | | | | (15) | | | | | | (11) | | | | | (21) | | | ||||
Total long-term debt and Finance lease obligations (including current portion) | | | | 9,701 | | | | | 10,700 | | | |||||||||||||||
Finance lease obligations | | | | 147 | | | | | 147 | | | |||||||||||||||
Total long-term debt and finance lease obligations (including current portion) | | | | 10,454 | | | | | 11,944 | | | |||||||||||||||
Total stockholder’s equity (deficit) | | | | (10,306) | | | | | (10,306) | | | | | | (8,888) | | | | | (8,888) | | | ||||
Total capitalization | | | $ | (605) | | | | $ | 394 | | | | | $ | 1,566 | | | | $ | 3,056 | | |
Series | | | Principal Amount (as of June 30, 2020) | | | Redeemable Beginning | | | Maturity | | |||
| | | (dollars in millions) | | | | | | | | |||
63∕4% Senior Notes due 2021 | | | | $ | 2,000 | | | | At any time on payment of “make-whole” premium | | | June 1, 2021 | |
57∕8% Senior Notes due 2022 | | | | $ | 2,000 | | | | At any time on payment of “make-whole” premium | | | July 15, 2022 | |
5% Senior Notes due 2023 | | | | $ | 1,500 | | | | At any time on payment of “make-whole” premium | | | March 15, 2023 | |
57∕8% Senior Notes due 2024 | | | | $ | 2,000 | | | | At any time on payment of “make-whole” premium | | | November 15, 2024 | |
7 3∕4 Senior Notes due 2026 | | | | $ | 2,000 | | | | At any time on payment of “make-whole” premium | | | July 1, 2026 | |
Series | | | Principal Amount (as of March 31, 2021) | | | Redeemable Beginning | | | Maturity | |
| | | (dollars in millions) | | | | | | | |
63∕4% Senior Notes due 2021 | | | $1,795 | | | At any time on payment of “make-whole” premium | | | June 1, 2021 | |
57∕8% Senior Notes due 2022 | | | $2,000 | | | At any time on payment of “make-whole” premium | | | July 15, 2022 | |
5% Senior Notes due 2023 | | | $1,500 | | | At any time on payment of “make-whole” premium | | | March 15, 2023 | |
57∕8% Senior Notes due 2024 | | | $2,000 | | | At any time on payment of “make-whole” premium | | | November 15, 2024 | |
73∕4% Senior Notes due 2026 | | | $2,000 | | | At any time on payment of “make-whole” premium | | | July 1, 2026 | |
73∕8% Senior Notes due 2028 | | | $1,000 | | | At any time on payment of “make-whole” premium | | | July 1, 2028 | |
| | | Page | | |||
Consolidated Financial Statements: | | | | | | | |
| | | | F-2 | | | |
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | |
| | | As of December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 17,426 | | | | | $ | 129,498 | | |
Marketable investment securities | | | | | — | | | | | | 149,740 | | |
Trade accounts receivable, net of allowance for doubtful accounts of $19,280 and $16,956, respectively | | | | | 568,679 | | | | | | 623,602 | | |
Inventory | | | | | 321,983 | | | | | | 290,697 | | |
Other current assets | | | | | 164,767 | | | | | | 234,054 | | |
Total current assets | | | | | 1,072,855 | | | | | | 1,427,591 | | |
Noncurrent Assets: | | | | | | | | | | | | | |
Restricted cash, cash equivalents and marketable investment securities | | | | | 61,067 | | | | | | 67,597 | | |
Property and equipment, net | | | | | 1,751,573 | | | | | | 1,377,949 | | |
FCC authorizations | | | | | 611,794 | | | | | | 637,346 | | |
Other investment securities | | | | | 106,874 | | | | | | 108,308 | | |
Operating lease assets | | | | | 553,576 | | | | | | — | | |
Other noncurrent assets, net | | | | | 228,820 | | | | | | 286,753 | | |
Total noncurrent assets | | | | | 3,313,704 | | | | | | 2,477,953 | | |
Total assets | | | | $ | 4,386,559 | | | | | $ | 3,905,544 | | |
Liabilities and Stockholder’s Equity (Deficit) | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Trade accounts payable | | | | $ | 266,417 | | | | | $ | 217,268 | | |
Advances from affiliates | | | | | 82,415 | | | | | | — | | |
Deferred revenue and other | | | | | 674,079 | | | | | | 644,920 | | |
Accrued programming | | | | | 1,308,531 | | | | | | 1,474,207 | | |
Accrued interest | | | | | 189,039 | | | | | | 222,996 | | |
Other accrued expenses | | | | | 918,333 | | | | | | 756,534 | | |
Current portion of long-term debt and finance lease obligations | | | | | 1,151,108 | | | | | | 1,338,527 | | |
Total current liabilities | | | | | 4,589,922 | | | | | | 4,654,452 | | |
Long-Term Obligations, Net of Current Portion: | | | | | | | | | | | | | |
Long-term debt and finance lease obligations, net of current portion | | | | | 9,671,255 | | | | | | 10,632,960 | | |
Deferred tax liabilities | | | | | 501,857 | | | | | | 461,452 | | |
Operating lease liabilities | | | | | 350,155 | | | | | | — | | |
Long-term deferred revenue and other long-term liabilities | | | | | 207,992 | | | | | | 198,840 | | |
Total long-term obligations, net of current portion | | | | | 10,731,259 | | | | | | 11,293,252 | | |
Total liabilities | | | | | 15,321,181 | | | | | | 15,947,704 | | |
Commitments and Contingencies (Note 12) | | | | | | | | | | | | | |
Stockholder’s Equity (Deficit): | | | | | | | | | | | | | |
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | 1,432,736 | | | | | | 1,152,369 | | |
Accumulated other comprehensive income (loss) | | | | | (449) | | | | | | (376) | | |
Accumulated earnings (deficit) | | | | | (12,366,909) | | | | | | (13,194,440) | | |
Total DISH DBS stockholder’s equity (deficit) | | | | | (10,934,622) | | | | | | (12,042,447) | | |
Noncontrolling interests | | | | | — | | | | | | 287 | | |
Total stockholder’s equity (deficit) | | | | | (10,934,622) | | | | | | (12,042,160) | | |
Total liabilities and stockholder’s equity (deficit) | | | | $ | 4,386,559 | | | | | $ | 3,905,544 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | |||||||||
Revenue: | | | | | | | | | | | | | | | | | | | |
Subscriber-related revenue | | | | $ | 12,436,637 | | | | | $ | 13,197,994 | | | | | $ | 13,877,196 | | |
Equipment sales and other revenue | | | | | 186,256 | | | | | | 164,145 | | | | | | 130,315 | | |
Total revenue | | | | | 12,622,893 | | | | | | 13,362,139 | | | | | | 14,007,511 | | |
Costs and Expenses (exclusive of depreciation shown separately below – Note 6): | | | | | | | | | | | | | | | | | | | |
Subscriber-related expenses | | | | | 7,768,732 | | | | | | 8,392,150 | | | | | | 8,692,676 | | |
Satellite and transmission expenses | | | | | 555,803 | | | | | | 637,160 | | | | | | 717,231 | | |
Cost of sales – equipment and other | | | | | 172,700 | | | | | | 143,671 | | | | | | 95,116 | | |
Subscriber acquisition costs: | | | | | | | | | | | | | | | | | | | |
Cost of sales – subscriber promotion subsidies | | | | | 29,592 | | | | | | 50,253 | | | | | | 72,955 | | |
Other subscriber acquisition costs | | | | | 444,993 | | | | | | 292,824 | | | | | | 563,952 | | |
Subscriber acquisition advertising | | | | | 519,938 | | | | | | 426,230 | | | | | | 548,304 | | |
Total subscriber acquisition costs | | | | | 994,523 | | | | | | 769,307 | | | | | | 1,185,211 | | |
General and administrative expenses | | | | | 732,589 | | | | | | 692,881 | | | | | | 669,934 | | |
Litigation expense (Note 12) | | | | | — | | | | | | — | | | | | | 295,695 | | |
Depreciation and amortization (Note 6) | | | | | 577,348 | | | | | | 660,460 | | | | | | 741,772 | | |
Total costs and expenses | | | | | 10,801,695 | | | | | | 11,295,629 | | | | | | 12,397,635 | | |
Operating income (loss) | | | | | 1,821,198 | | | | | | 2,066,510 | | | | | | 1,609,876 | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | |
Interest income | | | | | 30,041 | | | | | | 8,923 | | | | | | 9,855 | | |
Interest expense, net of amounts capitalized | | | | | (756,690) | | | | | | (792,436) | | | | | | (865,181) | | |
Other, net | | | | | 7,609 | | | | | | 8,994 | | | | | | 88,511 | | |
Total other income (expense) | | | | | (719,040) | | | | | | (774,519) | | | | | | (766,815) | | |
Income (loss) before income taxes | | | | | 1,102,158 | | | | | | 1,291,991 | | | | | | 843,061 | | |
Income tax (provision) benefit, net | | | | | (274,751) | | | | | | (318,305) | | | | | | (117,616) | | |
Net income (loss) | | | | | 827,407 | | | | | | 973,686 | | | | | | 725,445 | | |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | | | | | (124) | | | | | | 2,399 | | | | | | 1,919 | | |
Net income (loss) attributable to DISH DBS | | | | $ | 827,531 | | | | | $ | 971,287 | | | | | $ | 723,526 | | |
Comprehensive Income (Loss): | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 827,407 | | | | | $ | 973,686 | | | | | $ | 725,445 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | (133) | | | | | | (1,343) | | | | | | 1,027 | | |
Unrealized holding gains (losses) on available-for-sale securities | | | | | 81 | | | | | | 69 | | | | | | (33) | | |
Deferred income tax (expense) benefit, net | | | | | (21) | | | | | | (37) | | | | | | 57 | | |
Total other comprehensive income (loss), net of tax | | | | | (73) | | | | | | (1,311) | | | | | | 1,051 | | |
Comprehensive income (loss) | | | | | 827,334 | | | | | | 972,375 | | | | | | 726,496 | | |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | | | | | (124) | | | | | | 2,399 | | | | | | 1,919 | | |
Comprehensive income (loss) attributable to DISH DBS | | | | $ | 827,458 | | | | | $ | 969,976 | | | | | $ | 724,577 | | |
| | | As of December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 1,238,409 | | | | | $ | 17,426 | | |
Marketable investment securities | | | | | 132,593 | | | | | | — | | |
Trade accounts receivable, net of allowance for credit losses and allowance for doubtful accounts of $43,233 and $19,280, respectively | | | | | 626,375 | | | | | | 568,679 | | |
Inventory | | | | | 262,297 | | | | | | 321,983 | | |
Other current assets | | | | | 272,955 | | | | | | 164,767 | | |
Total current assets | | | | | 2,532,629 | | | | | | 1,072,855 | | |
Noncurrent Assets: | | | | | | | | | | | | | |
Restricted cash, cash equivalents and marketable investment securities | | | | | 58,323 | | | | | | 61,067 | | |
Property and equipment, net | | | | | 1,564,704 | | | | | | 1,751,573 | | |
FCC authorizations | | | | | 611,794 | | | | | | 611,794 | | |
Other investment securities | | | | | 97,306 | | | | | | 106,874 | | |
Operating lease assets | | | | | 380,968 | | | | | | 553,576 | | |
Other noncurrent assets, net | | | | | 222,311 | | | | | | 228,820 | | |
Total noncurrent assets | | | | | 2,935,406 | | | | | | 3,313,704 | | |
Total assets | | | | $ | 5,468,035 | | | | | $ | 4,386,559 | | |
Liabilities and Stockholder’s Equity (Deficit) | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Trade accounts payable | | | | $ | 315,661 | | | | | $ | 266,417 | | |
Advances from affiliates | | | | | — | | | | | | 82,415 | | |
Deferred revenue and other | | | | | 667,226 | | | | | | 674,079 | | |
Accrued programming | | | | | 1,388,407 | | | | | | 1,308,531 | | |
Accrued interest | | | | | 216,459 | | | | | | 189,039 | | |
Other accrued expenses | | | | | 625,342 | | | | | | 918,333 | | |
Current portion of long-term debt and finance lease obligations | | | | | 2,052,374 | | | | | | 1,151,108 | | |
Total current liabilities | | | | | 5,265,469 | | | | | | 4,589,922 | | |
Long-Term Obligations, Net of Current Portion: | | | | | | | | | | | | | |
Long-term debt and finance lease obligations, net of current portion | | | | | 8,619,116 | | | | | | 9,671,255 | | |
Deferred tax liabilities | | | | | 514,928 | | | | | | 501,857 | | |
Operating lease liabilities | | | | | 192,624 | | | | | | 350,155 | | |
Long-term deferred revenue and other long-term liabilities | | | | | 195,903 | | | | | | 207,992 | | |
Total long-term obligations, net of current portion | | | | | 9,522,571 | | | | | | 10,731,259 | | |
Total liabilities | | | | | 14,788,040 | | | | | | 15,321,181 | | |
Commitments and Contingencies (Note 12) | | | | | | | | | | | | | |
Stockholder’s Equity (Deficit): | | | | | | | | | | | | | |
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | 1,463,407 | | | | | | 1,432,736 | | |
Accumulated other comprehensive income (loss) | | | �� | | (805) | | | | | | (449) | | |
Accumulated earnings (deficit) | | | | | (10,782,607) | | | | | | (12,366,909) | | |
Total stockholder’s equity (deficit) | | | | | (9,320,005) | | | | | | (10,934,622) | | |
Total liabilities and stockholder’s equity (deficit) | | | | $ | 5,468,035 | | | | | $ | 4,386,559 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2020 | | | 2019 | | | 2018 | | |||||||||
Revenue: | | | | | | | | | | | | | | | | | | | |
Service revenue | | | | $ | 12,576,470 | | | | | $ | 12,436,637 | | | | | $ | 13,197,994 | | |
Equipment sales and other revenue | | | | | 151,159 | | | | | | 186,256 | | | | | | 164,145 | | |
Total revenue | | | | | 12,727,629 | | | | | | 12,622,893 | | | | | | 13,362,139 | | |
Costs and Expenses (exclusive of depreciation shown separately below – Note 6): | | | | | | | | | | | | | | | | | | | |
Cost of services | | | | | 7,916,036 | | | | | | 8,384,473 | | | | | | 9,086,937 | | |
Cost of sales – equipment and other | | | | | 104,470 | | | | | | 172,700 | | | | | | 143,671 | | |
Selling, general and administrative expenses | | | | | 1,440,553 | | | | | | 1,667,174 | | | | | | 1,404,561 | | |
Depreciation and amortization (Note 6) | | | | | 504,638 | | | | | | 577,348 | | | | | | 660,460 | | |
Total costs and expenses | | | | | 9,965,697 | | | | | | 10,801,695 | | | | | | 11,295,629 | | |
Operating income (loss) | | | | | 2,761,932 | | | | | | 1,821,198 | | | | | | 2,066,510 | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | |
Interest income | | | | | 3,548 | | | | | | 30,041 | | | | | | 8,923 | | |
Interest expense, net of amounts capitalized | | | | | (682,506) | | | | | | (756,690) | | | | | | (792,436) | | |
Other, net | | | | | 1,686 | | | | | | 7,609 | | | | | | 8,994 | | |
Total other income (expense) | | | | | (677,272) | | | | | | (719,040) | | | | | | (774,519) | | |
Income (loss) before income taxes | | | | | 2,084,660 | | | | | | 1,102,158 | | | | | | 1,291,991 | | |
Income tax (provision) benefit, net | | | | | (500,358) | | | | | | (274,751) | | | | | | (318,305) | | |
Net income (loss) | | | | | 1,584,302 | | | | | | 827,407 | | | | | | 973,686 | | |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | | | | | — | | | | | | (124) | | | | | | 2,399 | | |
Net income (loss) attributable to DISH DBS | | | | $ | 1,584,302 | | | | | $ | 827,531 | | | | | $ | 971,287 | | |
Comprehensive Income (Loss): | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,584,302 | | | | | $ | 827,407 | | | | | $ | 973,686 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | (401) | | | | | | (133) | | | | | | (1,343) | | |
Unrealized holding gains (losses) on available-for-sale debt securities | | | | | 2 | | | | | | 81 | | | | | | 69 | | |
Deferred income tax (expense) benefit, net | | | | | 43 | | | | | | (21) | | | | | | (37) | | |
Total other comprehensive income (loss), net of tax | | | | | (356) | | | | | | (73) | | | | | | (1,311) | | |
Comprehensive income (loss) | | | | | 1,583,946 | | | | | | 827,334 | | | | | | 972,375 | | |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | | | | | — | | | | | | (124) | | | | | | 2,399 | | |
Comprehensive income (loss) attributable to DISH DBS | | | | $ | 1,583,946 | | | | | $ | 827,458 | | | | | $ | 969,976 | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Earnings (Deficit) | | | Noncontrolling Interests | | | Total | | ||||||||||||||||||
Balance, December 31, 2016 | | | | $ | — | | | | | $ | 1,097,606 | | | | | $ | (116) | | | | | $ | (14,891,573) | | | | | $ | 1,933 | | | | | $ | (13,792,150) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 29,941 | | | | | | — | | | | | | — | | | | | | — | | | | | | 29,941 | | |
Change in unrealized holding gains (losses) on available-for-sale securities, net | | | | | — | | | | | | — | | | | | | (33) | | | | | | — | | | | | | — | | | | | | (33) | | |
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | | | | | — | | | | | | — | | | | | | 57 | | | | | | — | | | | | | — | | | | | | 57 | | |
Foreign currency translation | | | | | | | | | | | | | | | | | 1,027 | | | | | | | | | | | | | | | | | | 1,027 | | |
Payments made to parent of transferred businesses | | | | | — | | | | | | (7,372) | | | | | | — | | | | | | — | | | | | | 274 | | | | | | (7,098) | | |
Net income (loss) attributable to noncontrolling interests | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,919 | | | | | | 1,919 | | |
Net income (loss) attributable to DISH DBS | | | | | — | | | | | | — | | | | | | — | | | | | | 723,526 | | | | | | — | | | | | | 723,526 | | |
Other | | | | | — | | | | | | (3,327) | | | | | | — | | | | | | — | | | | | | (525) | | | | | | (3,852) | | |
Balance, December 31, 2017 | | | | $ | — | | | | | $ | 1,116,848 | | | | | $ | 935 | | | | | $ | (14,168,047) | | | | | $ | 3,601 | | | | | $ | (13,046,663) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 35,521 | | | | | | — | | | | | | — | | | | | | — | | | | | | 35,521 | | |
Change in unrealized holding gains (losses) on available-for-sale securities, net | | | | | — | | | | | | — | | | | | | 69 | | | | | | — | | | | | | — | | | | | | 69 | | |
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | | | | | — | | | | | | — | | | | | | (37) | | | | | | — | | | | | | — | | | | | | (37) | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | (1,343) | | | | | | — | | | | | | — | | | | | | (1,343) | | |
ASU 2014-09 cumulative catch-up adjustment | | | | | | | | | | | | | | | | | | | | | | | 2,320 | | | | | | | | | | | | 2,320 | | |
Net income (loss) attributable to noncontrolling interests | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,399 | | | | | | 2,399 | | |
Net income (loss) attributable to DISH DBS | | | | | — | | | | | | — | | | | | | — | | | | | | 971,287 | | | | | | — | | | | | | 971,287 | | |
Other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,713) | | | | | | (5,713) | | |
Balance, December 31, 2018 | | | | $ | — | | | | | $ | 1,152,369 | | | | | $ | (376) | | | | | $ | (13,194,440) | | | | | $ | 287 | | | | | $ | (12,042,160) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 13,853 | | | | | | — | | | | | | — | | | | | | — | | | | | | 13,853 | | |
Change in unrealized holding gains (losses) on available-for-sale securities, net | | | | | — | | | | | | — | | | | | | 81 | | | | | | — | | | | | | — | | | | | | 81 | | |
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | | | | | — | | | | | | | | | | | | (21) | | | | | | — | | | | | | — | | | | | | (21) | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | (133) | | | | | | — | | | | | | — | | | | | | (133) | | |
Satellite and Spectrum Transaction, net of deferred taxes of $29,075 | | | | | — | | | | | | 267,437 | | | | | | — | | | | | | — | | | | | | (163) | | | | | | 267,274 | | |
Net income (loss) attributable to noncontrolling interests | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (124) | | | | | | (124) | | |
Net income (loss) attributable to DISH DBS | | | | | — | | | | | | — | | | | | | — | | | | | | 827,531 | | | | | | — | | | | | | 827,531 | | |
Other | | | | | — | | | | | | (923) | | | | | | — | | | | | | — | | | | | | — | | | | | | (923) | | |
Balance, December 31, 2019 | | | | $ | — | | | | | $ | 1,432,736 | | | | | $ | (449) | | | | | $ | (12,366,909) | | | | | $ | — | | | | | $ | (10,934,622) | | |
|
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | |||||||||
Cash Flows From Operating Activities: | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 827,407 | | | | | $ | 973,686 | | | | | $ | 725,445 | | |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 577,348 | | | | | | 660,460 | | | | | | 741,772 | | |
Realized and unrealized losses (gains) on investments | | | | | (3,119) | | | | | | (9,056) | | | | | | (85,550) | | |
Non-cash, stock-based compensation | | | | | 13,853 | | | | | | 35,521 | | | | | | 29,941 | | |
Deferred tax expense (benefit) | | | | | 11,310 | | | | | | (24,477) | | | | | | (297,012) | | |
Other, net | | | | | 71,406 | | | | | | (67,672) | | | | | | (3,431) | | |
Changes in current assets and current liabilities: | | | | | | | | | | | | | | | | | | | |
Trade accounts receivable | | | | | 52,599 | | | | | | 2,137 | | | | | | 114,962 | | |
Allowance for doubtful accounts | | | | | 2,324 | | | | | | 1,900 | | | | | | (2,384) | | |
Inventory | | | | | (78,216) | | | | | | 15,754 | | | | | | 37,028 | | |
Other current assets | | | | | 70,449 | | | | | | (39,822) | | | | | | (76,735) | | |
Trade accounts payable | | | | | 49,149 | | | | | | (145,891) | | | | | | (142,803) | | |
Deferred revenue and other | | | | | 29,159 | | | | | | (93,093) | | | | | | (57,802) | | |
Accrued programming and other accrued expenses | | | | | (238,969) | | | | | | (111,987) | | | | | | 303,901 | | |
Net cash flows from operating activities | | | | | 1,384,700 | | | | | | 1,197,460 | | | | | | 1,287,332 | | |
Cash Flows From Investing Activities: | | | | | | | | | | | | | | | | | | | |
(Purchases) Sales and maturities of marketable investment securities, net | | | | | 153,422 | | | | | | 41,155 | | | | | | (88,346) | | |
Purchases of property and equipment | | | | | (392,690) | | | | | | (348,023) | | | | | | (419,445) | | |
Purchases of strategic investments | | | | | — | | | | | | — | | | | | | (90,381) | | |
Other, net | | | | | 73,352 | | | | | | 24,816 | | | | | | 19,996 | | |
Net cash flows from investing activities | | | | | (165,916) | | | | | | (282,052) | | | | | | (578,176) | | |
Cash Flows From Financing Activities: | | | | | | | | | | | | | | | | | | | |
Redemption and repurchases of senior notes | | | | | (1,317,372) | | | | | | (1,108,489) | | | | | | (1,074,139) | | |
Payments made to parent of transferred businesses | | | | | — | | | | | | — | | | | | | (7,098) | | |
Advances from affiliates | | | | | 82,415 | | | | | | — | | | | | | — | | |
Repayment of long-term debt and finance lease obligations | | | | | (35,356) | | | | | | (38,639) | | | | | | (39,118) | | |
Other, net | | | | | (444) | | | | | | (3,270) | | | | | | (1,994) | | |
Net cash flows from financing activities | | | | | (1,270,757) | | | | | | (1,150,398) | | | | | | (1,122,349) | | |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | | | | | (51,973) | | | | | | (234,990) | | | | | | (413,193) | | |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4) | | | | | 130,076 | | | | | | 365,066 | | | | | | 778,259 | | |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4) | | | | $ | 78,103 | | | | | $ | 130,076 | | | | | $ | 365,066 | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Earnings (Deficit) | | | Noncontrolling Interests | | | Total | | ||||||||||||||||||
Balance, December 31, 2017 | | | | $ | — | | | | | $ | 1,116,848 | | | | | $ | 935 | | | | | $ | (14,168,047) | | | | | $ | 3,601 | | | | | $ | (13,046,663) | | |
Non-cash, stock-based compensation . | | | | | — | | | | | | 35,521 | | | | | | — | | | | | | — | | | | | | — | | | | | | 35,521 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net . | | | | | — | | | | | | — | | | | | | 69 | | | | | | — | | | | | | — | | | | | | 69 | | |
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) . | | | | | — | | | | | | — | | | | | | (37) | | | | | | — | | | | | | — | | | | | | (37) | | |
Foreign currency translation . | | | | | — | | | | | | — | | | | | | (1,343) | | | | | | — | | | | | | — | | | | | | (1,343) | | |
ASU 2014-09 cumulative catch-up adjustment . | | | | | — | | | | | | — | | | | | | — | | | | | | 2,320 | | | | | | — | | | | | | 2,320 | | |
Net income (loss) attributable to noncontrolling interests | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,399 | | | | | | 2,399 | | |
Net income (loss) attributable to DISH DBS | | | | | — | | | | | | — | | | | | | — | | | | | | 971,287 | | | | | | — | | | | | | 971,287 | | |
Other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,713) | | | | | | (5,713) | | |
Balance, December 31, 2018 | | | | $ | — | | | | | $ | 1,152,369 | | | | | $ | (376) | | | | | $ | (13,194,440) | | | | | $ | 287 | | | | | $ | (12,042,160) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 13,853 | | | | | | — | | | | | | — | | | | | | — | | | | | | 13,853 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | | | | | — | | | | | | — | | | | | | 81 | | | | | | — | | | | | | — | | | | | | 81 | | |
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | | | | | — | | | | | | — | | | | | | (21) | | | | | | — | | | | | | — | | | | | | (21) | | |
Foreign currency translation . | | | | | — | | | | | | — | | | | | | (133) | | | | | | — | | | | | | — | | | | | | (133) | | |
Satellite and Spectrum Transaction, net of deferred taxes of $29,075 | | | | | — | | | | | | 267,437 | | | | | | — | | | | | | — | | | | | | (163) | | | | | | 267,274 | | |
Net income (loss) attributable to noncontrolling interests . | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (124) | | | | | | (124) | | |
Net income (loss) attributable to DISH DBS . | | | | | — | | | | | | — | | | | | | — | | | | | | 827,531 | | | | | | — | | | | | | 827,531 | | |
Other | | | | | — | | | | | | (923) | | | | | | — | | | | | | — | | | | | | — | | | | | | (923) | | |
Balance, December 31, 2019 . | | | | $ | — | | | | | $ | 1,432,736 | | | | | $ | (449) | | | | | $ | (12,366,909) | | | | | $ | — | | | | | $ | (10,934,622) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 30,671 | | | | | | — | | | | | | — | | | | | | — | | | | | | 30,671 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net . | | | | | — | | | | | | — | | | | | | 2 | | | | | | — | | | | | | — | | | | | | 2 | | |
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | | | | | — | | | | | | — | | | | | | 43 | | | | | | — | | | | | | — | | | | | | 43 | | |
Foreign currency translation . | | | | | — | | | | | | — | | | | | | (401) | | | | | | — | | | | | | — | | | | | | (401) | | |
Net income (loss) attributable to DISH DBS . | | | | | — | | | | | | — | | | | | | — | | | | | | 1,584,302 | | | | | | — | | | | | | 1,584,302 | | |
Balance, December 31, 2020 . | | | | $ | — | | | | | $ | 1,463,407 | | | | | $ | (805) | | | | | $ | (10,782,607) | | | | | $ | — | | | | | $ | (9,320,005) | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2020 | | | 2019 | | | 2018 | | |||||||||
Cash Flows From Operating Activities: | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,584,302 | | | | | $ | 827,407 | | | | | $ | 973,686 | | |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 504,638 | | | | | | 577,348 | | | | | | 660,460 | | |
Realized and unrealized losses (gains) on investments . | | | | | — | | | | | | (3,119) | | | | | | (9,056) | | |
Non-cash, stock-based compensation . | | | | | 30,671 | | | | | | 13,853 | | | | | | 35,521 | | |
Deferred tax expense (benefit) | | | | | 13,114 | | | | | | 11,310 | | | | | | (24,477) | | |
Allowance for credit losses and allowance for doubtful accounts, respectively | | | | | 23,953 | | | | | | 2,324 | | | | | | 1,900 | | |
Other, net | | | | | 4,709 | | | | | | 71,406 | | | | | | (67,672) | | |
Changes in current assets and current liabilities: | | | | | | | | | | | | | | | | | | | |
Trade accounts receivable . | | | | | (81,649) | | | | | | 52,599 | | | | | | 2,137 | | |
Inventory . | | | | | 32,916 | | | | | | (78,216) | | | | | | 15,754 | | |
Other current assets | | | | | (108,188) | | | | | | 70,449 | | | | | | (39,822) | | |
Trade accounts payable . | | | | | 49,244 | | | | | | 49,149 | | | | | | (145,891) | | |
Deferred revenue and other | | | | | (6,853) | | | | | | 29,159 | | | | | | (93,093) | | |
Accrued programming and other accrued expenses | | | | | (167,399) | | | | | | (238,969) | | | | | | (111,987) | | |
Net cash flows from operating activities . | | | | | 1,879,458 | | | | | | 1,384,700 | | | | | | 1,197,460 | | |
Cash Flows From Investing Activities: | | | | | | | | | | | | | | | | | | | |
(Purchases) Sales and maturities of marketable investment securities, net . | | | | | (132,591) | | | | | | 153,422 | | | | | | 41,155 | | |
Purchases of property and equipment | | | | | (298,566) | | | | | | (392,690) | | | | | | (348,023) | | |
Other, net . | | | | | 8,851 | | | | | | 73,352 | | | | | | 24,816 | | |
Net cash flows from investing activities . | | | | | (422,306) | | | | | | (165,916) | | | | | | (282,052) | | |
Cash Flows From Financing Activities: | | | | | | | | | | | | | | | | | | | |
Redemption and repurchases of senior notes . | | | | | (1,100,000) | | | | | | (1,317,372) | | | | | | (1,108,489) | | |
Proceeds from the issuance of senior notes | | | | | 1,000,000 | | | | | | — | | | | | | — | | |
Advances to/from affiliates . | | | | | (82,415) | | | | | | 82,415 | | | | | | — | | |
Repayment of long-term debt and finance lease obligations . | | | | | (54,438) | | | | | | (35,356) | | | | | | (38,639) | | |
Debt issuance costs | | | | | (1,670) | | | | | | — | | | | | | — | | |
Other, net . | | | | | — | | | | | | (444) | | | | | | (3,270) | | |
Net cash flows from financing activities . | | | | | (238,523) | | | | | | (1,270,757) | | | | | | (1,150,398) | | |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | | | | | 1,218,629 | | | | | | (51,973) | | | | | | (234,990) | | |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4) . | | | | | 78,103 | | | | | | 130,076 | | | | | | 365,066 | | |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4) . | | | | $ | 1,296,732 | | | | | $ | 78,103 | | | | | $ | 130,076 | | |
Consolidated Balance Sheets | | | DISH DBS (as would have been reported under previous standards) | | | Impact of adopting ASU 2016-02 | | | DISH DBS (as currently reported) | | |||||||||
| | | (In thousands) | | |||||||||||||||
As of December 31, 2019 | | | | | | | | | | | | | | | | | | | |
Operating lease assets | | | | $ | — | | | | | $ | 553,576 | | | | | $ | 553,576 | | |
Total assets | | | | $ | 3,832,983 | | | | | $ | 553,576 | | | | | $ | 4,386,559 | | |
Other accrued expenses | | | | $ | 715,361 | | | | | $ | 202,972 | | | | | $ | 918,333 | | |
Operating lease liabilities | | | | $ | — | | | | | $ | 350,155 | | | | | $ | 350,155 | | |
Long-term deferred revenue and other long-term liabilities | | | | $ | 207,543 | | | | | $ | 449 | | | | | $ | 207,992 | | |
Total liabilities | | | | $ | 14,767,605 | | | | | $ | 553,576 | | | | | $ | 15,321,181 | | |
Total stockholder’s equity (deficit) | | | | $ | (10,934,622) | | | | | $ | — | | | | | $ | (10,934,622) | | |
Total liabilities and stockholder’s equity (deficit) | | | | $ | 3,832,983 | | | | | $ | 553,576 | | | | | $ | 4,386,559 | | |
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||||||||||||||
Cash paid for interest | | | $ | 765,510 | | | | $ | 793,506 | | | | $ | 878,772 | | | | | $ | 632,506 | | | | $ | 765,510 | | | | $ | 793,506 | | | ||||||
Cash received for interest | | | | 30,041 | | | | | 6,043 | | | | | 9,855 | | | | | | 3,548 | | | | | 30,041 | | | | | 6,043 | | | ||||||
Cash paid for income taxes | | | | 19,485 | | | | | 18,683 | | | | | 29,961 | | | | | | 22,968 | | | | | 19,485 | | | | | 18,683 | | | ||||||
Cash paid for income taxes to DISH Network | | | | 245,028 | | | | | 302,329 | | | | | 408,265 | | | | | | 473,793 | | | | | 245,028 | | | | | 302,329 | | | ||||||
Capitalized interest | | | | 440 | | | | | 1,071 | | | | | 481 | | | | | | — | | | | | 440 | | | | | 1,071 | | |
| | | As of December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
Marketable investment securities: | | | | | | | | | | | | | |
Current marketable investment securities | | | | $ | 132,593 | | | | | $ | — | | |
Restricted marketable investment securities(1) | | | | | — | | | | | | 390 | | |
Total marketable investment securities | | | | | 132,593 | | | | | | 390 | | |
Restricted cash and cash equivalents(1) | | | | | 58,323 | | | | | | 60,677 | | |
Other investment securities: | | | | | | | | | | | | | |
Other investment securities | | | | | 97,306 | | | | | | 106,874 | | |
Total other investment securities | | | | | 97,306 | | | | | | 106,874 | | |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | | | | $ | 288,222 | | | | | $ | 167,941 | | |
| | | As of December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
| | | (In thousands) | | |||||||||
Marketable investment securities: | | | | | | | | | | | | | |
Current marketable investment securities: | | | | | | | | | | | | | |
Trading/equity | | | | $ | — | | | | | $ | 2,370 | | |
Other | | | | | — | | | | | | 147,370 | | |
Total current marketable investment securities | | | | | — | | | | | | 149,740 | | |
Restricted marketable investment securities(1) | | | | | 390 | | | | | | 67,019 | | |
Total marketable investment securities | | | | | 390 | | | | | | 216,759 | | |
Restricted cash and cash equivalents(1) | | | | | 60,677 | | | | | | 578 | | |
Other investment securities: | | | | | | | | | | | | | |
Other investment securities | | | | | 106,874 | | | | | | 108,308 | | |
Total other investment securities | | | | | 106,874 | | | | | | 108,308 | | |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | | | | $ | 167,941 | | | | | $ | 325,645 | | |
| | | As of December 31, | | |||||||||||||||||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | ||||||||||||||||||||||||||||||||||||||||||
| | | Marketable Investment Securities | | | Unrealized | | | Marketable Investment Securities | | | Unrealized | | ||||||||||||||||||||||||||||||||||||
| | | Gains | | | Losses | | | Net | | | Gains | | | Losses | | | Net | | ||||||||||||||||||||||||||||||
| | | (In thousands) | | |||||||||||||||||||||||||||||||||||||||||||||
Debt securities (including restricted): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Treasury and agency securities | | | | $ | 390 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 66,823 | | | | | $ | 40 | | | | | $ | (19) | | | | | $ | 21 | | |
Commercial paper | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 45,938 | | | | | | — | | | | | | — | | | | | | — | | |
Corporate securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 100,662 | | | | | | 11 | | | | | | (113) | | | | | | (102) | | |
Other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 966 | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 390 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 214,389 | | | | | $ | 51 | | | | | $ | (132) | | | | | $ | (81) | | |
|
| | | As of December 31, | | |||||||||||||||||||||||||||||||||||||||||||||
| | | 2019 | | | 2018 | | ||||||||||||||||||||||||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||||||||||||||
| | | (In thousands) | | |||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents (including restricted) | | | | $ | 60,677 | | | | | $ | 60,677 | | | | | $ | — | | | | | $ | — | | | | | $ | 114,464 | | | | | $ | 12,493 | | | | | $ | 101,971 | | | | | $ | — | | |
Debt securities (including restricted): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Treasury and agency securities | | | | $ | 390 | | | | | $ | 390 | | | | | $ | — | | | | | $ | — | | | | | $ | 66,823 | | | | | $ | 66,823 | | | | | $ | — | | | | | $ | — | | |
Commercial paper | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 45,938 | | | | | | — | | | | | | 45,938 | | | | | | — | | |
Corporate securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 100,662 | | | | | | — | | | | | | 100,662 | | | | | | — | | |
Other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 966 | | | | | | — | | | | | | 966 | | | | | | — | | |
Equity securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,370 | | | | | | 2,370 | | | | | | — | | | | | | — | | |
Total | | | | $ | 390 | | | | | $ | 390 | | | | | $ | — | | | | | $ | — | | | | | $ | 216,759 | | | | | $ | 69,193 | | | | | $ | 147,566 | | | | | $ | — | | |
| | | As of December 31, | | |||||||||||||||||||||||||||||||||||||||||||||
| | | 2020 | | | 2019 | | ||||||||||||||||||||||||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||||||||||||||
| | | (In thousands) | | |||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents (including restricted) | | | | $ | 1,278,971 | | | | | $ | 172,025 | | | | | $ | 1,106,946 | | | | | $ | — | | | | | $ | 60,677 | | | | | $ | 60,677 | | | | | $ | — | | | | | $ | — | | |
Debt securities (including restricted): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Treasury and agency securities | | | | $ | 22,476 | | | | | $ | 22,476 | | | | | $ | — | | | | | $ | — | | | | | $ | 390 | | | | | $ | 390 | | | | | $ | — | | | | | $ | — | | |
Commercial paper | | | | | 101,959 | | | | | | — | | | | | | 101,959 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Corporate securities | | | | | 8,068 | | | | | | — | | | | | | 8,068 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other | | | | | 90 | | | | | | — | | | | | | 90 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 132,593 | | | | | $ | 22,476 | | | | | $ | 110,117 | | | | | $ | — | | | | | $ | 390 | | | | | $ | 390 | | | | | $ | — | | | | | $ | — | | |
| | | For the Years Ended December 31, | | |||||||||||||||
Other, net: | | | 2019 | | | 2018 | | | 2017 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Marketable investment securities – realized and unrealized gains (losses) | | | | $ | 3,119 | | | | | $ | 5,313 | | | | | $ | 87,020 | | |
Costs related to early redemption of debt | | | | | — | | | | | | (3,261) | | | | | | (1,470) | | |
Gain (loss) on sale of subsidiary | | | | | — | | | | | | 7,004 | | | | | | — | | |
Equity in earnings of affiliates | | | | | 3,514 | | | | | | (2,110) | | | | | | 2,163 | | |
Other | | | | | 976 | | | | | | 2,048 | | | | | | 798 | | |
Total | | | | $ | 7,609 | | | | | $ | 8,994 | | | | | $ | 88,511 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
Other, net: | | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Marketable investment securities – realized and unrealized gains (losses) | | | | $ | — | | | | | $ | 3,119 | | | | | $ | 5,313 | | |
Costs related to early redemption of debt | | | | | — | | | | | | — | | | | | | (3,261) | | |
Gain (loss) on sale of subsidiary | | | | | — | | | | | | — | | | | | | 7,004 | | |
Equity in earnings (losses) of affiliates | | | | | 653 | | | | | | 3,514 | | | | | | (2,110) | | |
Other | | | | | 1,033 | | | | | | 976 | | | | | | 2,048 | | |
Total | | | | $ | 1,686 | | | | | $ | 7,609 | | | | | $ | 8,994 | | |
| | As of December 31, | | | As of December 31, | | ||||||||||||||||||||
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||
Finished goods | | | $ | 254,240 | | | | $ | 215,150 | | | | | $ | 226,866 | | | | $ | 254,240 | | | ||||
Work-in-process and service repairs | | | | 34,120 | | | | | 56,871 | | | | | | 25,206 | | | | | 34,120 | | | ||||
Raw materials | | | | 33,623 | | | | | 18,676 | | | | | | 10,225 | | | | | 33,623 | | | ||||
Total inventory | | | $ | 321,983 | | | | $ | 290,697 | | | | | $ | 262,297 | | | | $ | 321,983 | | |
| | | Depreciable Life (In Years) | | | As of | | |||||||||
| | | December 31, 2019 | | | December 31, 2018 | | |||||||||
| | | | | | (In thousands) | | |||||||||
Equipment leased to customers | | | 2 – 5 | | | | $ | 1,837,503 | | | | | $ | 1,980,808 | | |
EchoStar XV | | | 15 | | | | | 277,658 | | | | | | 277,658 | | |
EchoStar XVIII(1) | | | 15 | | | | | 411,255 | | | | | | — | | |
Satellites acquired under finance lease agreements(2)(3) | | | 15 | | | | | 398,107 | | | | | | 499,819 | | |
Furniture, fixtures, equipment and other | | | 2 – 20 | | | | | 1,894,629 | | | | | | 1,820,883 | | |
Buildings and improvements | | | 5 – 40 | | | | | 289,421 | | | | | | 289,244 | | |
Land | | | — | | | | | 13,186 | | | | | | 13,186 | | |
Construction in progress | | | — | | | | | 70,081 | | | | | | 47,077 | | |
Total property and equipment | | | | | | | | 5,191,840 | | | | | | 4,928,675 | | |
Accumulated depreciation | | | | | | | | (3,440,267) | | | | | | (3,550,726) | | |
Property and equipment, net | | | | | | | $ | 1,751,573 | | | | | $ | 1,377,949 | | |
| | | Depreciable Life (In Years) | | | As of | | |||||||||
| | | December 31, 2020 | | | December 31, 2019 | | |||||||||
| | | | | | (In thousands) | | |||||||||
Equipment leased to customers | | | 2−5 | | | | $ | 1,719,778 | | | | | $ | 1,837,503 | | |
EchoStar XV | | | 15 | | | | | 277,658 | | | | | | 277,658 | | |
EchoStar XVIII | | | 15 | | | | | 411,255 | | | | | | 411,255 | | |
Satellites acquired under finance lease agreements | | | 15 | | | | | 398,107 | | | | | | 398,107 | | |
Furniture, fixtures, equipment and other | | | 2−20 | | | | | 1,969,107 | | | | | | 1,894,629 | | |
Buildings and improvements | | | 5−40 | | | | | 301,037 | | | | | | 289,421 | | |
Land | | | — | | | | | 13,186 | | | | | | 13,186 | | |
Construction in progress | | | — | | | | | 51,800 | | | | | | 70,081 | | |
Total property and equipment | | | | | | | | 5,141,928 | | | | | | 5,191,840 | | |
Accumulated depreciation | | | | | | | | (3,577,224) | | | | | | (3,440,267) | | |
Property and equipment, net | | | | | | | $ | 1,564,704 | | | | | $ | 1,751,573 | | |
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||||||||||||||
Equipment leased to customers | | | $ | 370,867 | | | | $ | 437,342 | | | | $ | 539,434 | | | | | $ | 290,006 | | | | $ | 370,867 | | | | $ | 437,342 | | | ||||||
Satellites | | | | 65,441 | | | | | 61,045 | | | | | 61,045 | | | | | | 95,187 | | | | | 65,441 | | | | | 61,045 | | | ||||||
Buildings, furniture, fixtures, equipment and other | | | | 141,040 | | | | | 162,073 | | | | | 141,293 | | | | | | 119,445 | | | | | 141,040 | | | | | 162,073 | | | ||||||
Total depreciation and amortization | | | $ | 577,348 | | | | $ | 660,460 | | | | $ | 741,772 | | | | | $ | 504,638 | | | | $ | 577,348 | | | | $ | 660,460 | | |
Satellites | | | Degree Launch Date | | | Orbital Location | | | Lease Termination Date | | |||
Owned: | | | | | | | | | | | |||
EchoStar XV | | | July 2010 | | | 61.5 | | | N/A | | |||
EchoStar XVIII | | | June 2016 | | | 61.5 | | | N/A | | |||
Leased from EchoStar(1): | | | | | | | | | | | |||
EchoStar IX | | | August 2003 | | | 121 | | | Month to month | | |||
Leased from DISH Network(2)(3): | | | | | | | | | | | |||
EchoStar X | | | February 2006 | | | 110 | | | February | | |||
EchoStar XI | | | July 2008 | | | 110 | | | September 2021 | | |||
EchoStar XIV | | | March 2010 | | | 119 | | | February 2023 | | |||
EchoStar XVI | | | November 2012 | | | 61.5 | | | January 2023 | | |||
Nimiq 5 | | | September 2009 | | | 72.7 | | | September | | |||
QuetzSat-1 | | | September 2011 | | | 77 | | | November 2021 | | |||
Leased from Other Third Party: | | | | | | | | | | | |||
Anik F3 | | | April 2007 | | | 118.7 | | | April 2022 | | |||
Ciel II | | | December 2008 | | | 129 | | | January | |
| | As of December 31, | | | As of December 31, | | ||||||||||||||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||||||||||
| | Intangible Assets | | Accumulated Amortization | | Intangible Assets | | Accumulated Amortization | | | Intangible Assets | | Accumulated Amortization | | Intangible Assets | | Accumulated Amortization | | ||||||||||||||||||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||||||||||||||||||||||||||
Technology-based | | | $ | 58,162 | | | | $ | (53,447) | | | | $ | 58,162 | | | | $ | (51,204) | | | | | $ | 58,162 | | | | $ | (53,991) | | | | $ | 58,162 | | | | $ | (53,447) | | | ||||||||
Trademarks | | | | 35,010 | | | | | (30,655) | | | | | 35,010 | | | | | (27,106) | | | | | | 35,010 | | | | | (33,396) | | | | | 35,010 | | | | | (30,655) | | | ||||||||
Contract-based | | | | 4,500 | | | | | (4,500) | | | | | 4,500 | | | | | (4,500) | | | | | | 4,500 | | | | | (4,500) | | | | | 4,500 | | | | | (4,500) | | | ||||||||
Customer relationships | | | | 23,632 | | | | | (23,632) | | | | | 23,632 | | | | | (23,632) | | | | | | 23,632 | | | | | (23,632) | | | | | 23,632 | | | | | (23,632) | | | ||||||||
Total | | | $ | 121,304 | | | | $ | (112,234) | | | | $ | 121,304 | | | | $ | (106,442) | | | | | $ | 121,304 | | | | $ | (115,519) | | | | $ | 121,304 | | | | $ | (112,234) | | |
For the Years Ended December 31, | | | | | | | | | | | | | ||
2020 | | | $ | 3,285 | | | ||||||||
2021 | | | | 835 | | | | | $ | 835 | | | ||
2022 | | | | 666 | | | | | | 666 | | | ||
2023 | | | | 654 | | | | | | 654 | | | ||
2024 | | | | 654 | | | | | | 654 | | | ||
2025 | | | | 654 | | | ||||||||
Thereafter | | | | 2,976 | | | | | | 2,322 | | | ||
Total | | | $ | 9,070 | | | | | $ | 5,785 | | |
| | | As of December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
| | | (In thousands) | | |||||||||
DBS Licenses | | | | $ | 611,794 | | | | | $ | 611,794 | | |
MVDDS Licenses(1) | | | | | — | | | | | | 24,000 | | |
Capitalized Interest | | | | | — | | | | | | 1,552 | | |
Total | | | | $ | 611,794 | | | | | $ | 637,346 | | |
| | | As of December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
DBS Licenses | | | | $ | 611,794 | | | | | $ | 611,794 | | |
Total | | | | $ | 611,794 | | | | | $ | 611,794 | | |
| | For the Years Ended December 31, | | |||||||||||||||||
| | For the Year Ended December 31, 2019 | | | 2020 | | 2019 | | ||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||
Operating lease cost | | | $ | 297,181 | | | | | $ | 246,523 | | | | $ | 297,181 | | | |||
Short-term lease cost(1) | | | | 37,686 | | | | | | 11,409 | | | | | 37,686 | | | |||
Finance lease cost: | | | | | | | | | | | | | | | | | | |||
Amortization of right-of-use assets | | | | 29,134 | | | | | | 49,496 | | | | | 29,134 | | | |||
Interest on lease liabilities | | | | 9,826 | | | | | | 17,595 | | | | | 9,826 | | | |||
Total finance lease cost | | | | 38,960 | | | | | | 67,091 | | | | | 38,960 | | | |||
Total lease costs | | | $ | 373,827 | | | | | $ | 325,023 | | | | $ | 373,827 | | |
| | | For the Year Ended December 31, 2019 | | |||
| | | (In thousands) | | |||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | |
Operating cash flows from operating leases | | | | $ | 301,524 | | |
Operating cash flows from finance leases | | | | $ | 9,826 | | |
Financing cash flows from finance leases | | | | $ | 31,841 | | |
Right-of-use assets obtained in exchange for lease obligations: | | | | | | | |
Operating leases | | | | $ | 81,198 | | |
Finance leases | | | | $ | 175,311 | | |
Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 | | | | $ | 730,180 | | |
| | | For the Years Ended December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | | | | | | |
Operating cash flows from operating leases | | | | $ | 247,413 | | | | | $ | 301,524 | | |
Operating cash flows from finance leases | | | | $ | 17,595 | | | | | $ | 9,826 | | |
Financing cash flows from finance leases | | | | $ | 49,231 | | | | | $ | 31,841 | | |
Right-of-use assets obtained in exchange for lease obligations: | | | | | | | | | | | | | |
Operating leases | | | | $ | 37,899 | | | | | $ | 81,198 | | |
Finance leases | | | | $ | — | | | | | $ | 175,311 | | |
Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 | | | | | | | | | | $ | 730,180 | | |
| | | As of December 31, 2019 | | |||
| | | (In thousands) | | |||
Operating Leases: | | | | | | | |
Operating lease right-of-use assets | | | | $ | 553,576 | | |
Other current liabilities | | | | $ | 202,972 | | |
Operating lease liabilities | | | | | 350,155 | | |
Total operating lease liabilities | | | | $ | 553,127 | | |
Finance Leases: | | | | | | | |
Property and equipment, gross | | | | $ | 399,764 | | |
Accumulated depreciation | | | | | (201,873) | | |
Property and equipment, net | | | | $ | 197,891 | | |
Other current liabilities | | | | $ | 48,678 | | |
Other long-term liabilities | | | | | 163,939 | | |
Total finance lease liabilities | | | | $ | 212,617 | | |
Weighted Average Remaining Lease Term: | | | | | | | |
Operating leases | | | 3.4 years | | |||
Finance leases | | | 4.2 years | | |||
Weighted Average Discount Rate: | | | | | | | |
Operating leases | | | | | 9.1% | | |
Finance leases | | | | | 9.5% | | |
| | | Maturities of Lease Liabilities | | |||||||||||||||
For the Years Ending December 31, | | | Operating Leases | | | Finance Leases | | | Total | | |||||||||
| | | (In thousands) | | |||||||||||||||
2020 | | | | $ | 239,660 | | | | | $ | 66,285 | | | | | $ | 305,945 | | |
2021 | | | | | 199,062 | | | | | | 66,279 | | | | | | 265,341 | | |
2022 | | | | | 127,300 | | | | | | 50,227 | | | | | | 177,527 | | |
2023 | | | | | 24,571 | | | | | | 42,862 | | | | | | 67,433 | | |
2024 | | | | | 9,191 | | | | | | 32,147 | | | | | | 41,338 | | |
Thereafter | | | | | 42,008 | | | | | | | | | | | | 42,008 | | |
Total lease payments | | | | | 641,792 | | | | | | 257,800 | | | | | | 899,592 | | |
Less: Imputed interest | | | | | (88,665) | | | | | | (45,183) | | | | | | (133,848) | | |
Total | | | | | 553,127 | | | | | | 212,617 | | | | | | 765,744 | | |
Less: Current portion | | | | | (202,972) | | | | | | (48,678) | | | | | | (251,650) | | |
Long-term portion of lease obligations | | | | $ | 350,155 | | | | | $ | 163,939 | | | | | $ | 514,094 | | |
|
| | | As of December 31, | | |||
| | | 2020 | | | 2019 | |
| | | (In thousands) | | |||
Operating Leases: | | | | | | | |
Operating lease assets | | | $380,968 | | | $553,576 | |
Other current liabilities | | | $186,967 | | | $202,972 | |
Operating lease liabilities | | | 192,624 | | | 350,155 | |
Total operating lease liabilities | | | $379,591 | | | $553,127 | |
Finance Leases: | | | | | | | |
Property and equipment, gross | | | $398,875 | | | $399,764 | |
Accumulated depreciation | | | (251,073) | | | (201,873) | |
Property and equipment, net | | | $147,802 | | | $197,891 | |
Other current liabilities | | | $49,820 | | | $48,678 | |
Other long-term liabilities | | | 110,789 | | | 163,939 | |
Total finance lease liabilities | | | $160,609 | | | $212,617 | |
Weighted Average Remaining Lease Term: | | | | | | | |
Operating leases | | | 2.9 years | | | 3.4 years | |
Finance leases | | | 3.3 years | | | 4.2 years | |
Weighted Average Discount Rate: | | | | | | | |
Operating leases | | | 8.7% | | | 9.1% | |
Finance leases | | | 9.6% | | | 9.5% | |
| | | Maturities of Lease Liabilities | | |||||||||||||||
For the Years Ending December 31, | | | Operating Leases | | | Finance Leases | | | Total | | |||||||||
| | | (In thousands) | | |||||||||||||||
2021 | | | | $ | 208,759 | | | | | $ | 62,613 | | | | | $ | 271,372 | | |
2022 | | | | | 136,132 | | | | | | 50,227 | | | | | | 186,359 | | |
2023 | | | | | 30,165 | | | | | | 42,862 | | | | | | 73,027 | | |
2024 | | | | | 12,397 | | | | | | 32,147 | | | | | | 44,544 | | |
2025 | | | | | 8,081 | | | | | | — | | | | | | 8,081 | | |
Thereafter | | | | | 35,474 | | | | | | — | | | | | | 35,474 | | |
Total lease payments | | | | | 431,008 | | | | | | 187,849 | | | | | | 618,857 | | |
Less: Imputed interest | | | | | (51,417) | | | | | | (27,240) | | | | | | (78,657) | | |
Total | | | | | 379,591 | | | | | | 160,609 | | | | | | 540,200 | | |
Less: Current portion | | | | | (186,967) | | | | | | (49,820) | | | | | | (236,787) | | |
Long-term portion of lease obligations | | | | $ | 192,624 | | | | | $ | 110,789 | | | | | $ | 303,413 | | |
| | As of December 31, | | | As of December 31, | | ||||||||||||||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||||||||||
| | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | ||||||||||||||||||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||||||||||||||||||||||||||
77∕8% Senior Notes due 2019(1) | | | | — | | | | | — | | | | | 1,317,372 | | | | | 1,343,298 | | | |||||||||||||||||||||||||||||
51∕8% Senior Notes due 2020(2) | | | | 1,100,000 | | | | | 1,110,208 | | | | | 1,100,000 | | | | | 1,089,957 | | | |||||||||||||||||||||||||||||
63∕4% Senior Notes due 2021 | | | | 2,000,000 | | | | | 2,109,420 | | | | | 2,000,000 | | | | | 1,974,940 | | | |||||||||||||||||||||||||||||
51∕8% Senior Notes due 2020(1) | | | $ | — | | | | $ | — | | | | $ | 1,100,000 | | | | $ | 1,110,208 | | | |||||||||||||||||||||||||||||
63∕4% Senior Notes due 2021(2) | | | | 2,000,000 | | | | | 2,047,260 | | | | | 2,000,000 | | | | | 2,109,420 | | | |||||||||||||||||||||||||||||
57∕8% Senior Notes due 2022 | | | | 2,000,000 | | | | | 2,129,580 | | | | | 2,000,000 | | | | | 1,833,140 | | | | | | 2,000,000 | | | | | 2,095,820 | | | | | 2,000,000 | | | | | 2,129,580 | | | ||||||||
5% Senior Notes due 2023 | | | | 1,500,000 | | | | | 1,543,770 | | | | | 1,500,000 | | | | | 1,247,445 | | | | | | 1,500,000 | | | | | 1,566,300 | | | | | 1,500,000 | | | | | 1,543,770 | | | ||||||||
57∕8% Senior Notes due 2024 | | | | 2,000,000 | | | | | 2,049,080 | | | | | 2,000,000 | | | | | 1,611,960 | | | | | | 2,000,000 | | | | | 2,099,580 | | | | | 2,000,000 | | | | | 2,049,080 | | | ||||||||
73∕4% Senior Notes due 2026 | | | | 2,000,000 | | | | | 2,128,900 | | | | | 2,000,000 | | | | | 1,653,720 | | | | | | 2,000,000 | | | | | 2,236,520 | | | | | 2,000,000 | | | | | 2,128,900 | | | ||||||||
73∕83/8% Senior Notes due 2028 | | | | 1,000,000 | | | | | 1,070,130 | | | | | — | | | | | — | | | |||||||||||||||||||||||||||||
Other notes payable | | | | 25,996 | | | | | 25,996 | | | | | 10,346 | | | | | 10,346 | | | | | | 23,565 | | | | | 23,565 | | | | | 25,996 | | | | | 25,996 | | | ||||||||
Subtotal | | | | 10,625,996 | | | | $ | 11,096,954 | | | | | 11,927,718 | | | | $ | 10,764,806 | | | | | | 10,523,565 | | | | $ | 11,139,175 | | | | | 10,625,996 | | | | $ | 11,096,954 | | | ||||||||
Unamortized deferred financing costs and debt discounts, net | | | | (16,250) | | | | | | | | | | (23,215) | | | | | | | | | | | (12,684) | | | | | | | | | | (16,250) | | | | | | | | ||||||||
Finance lease obligations(3) | | | | 212,617 | | | | | | | | | | 66,984 | | | | | | | | | | | 160,609 | | | | | | | | | | 212,617 | | | | | | | | ||||||||
Total long-term debt and finance lease obligations (including current portion) | | | $ | 10,822,363 | | | | | | | | | $ | 11,971,487 | | | | | | | | | | $ | 10,671,490 | | | | | | | | | $ | 10,822,363 | | | | | | | |
| | | Semi-Annual Payment Dates | | | Annual Debt Service Requirements | | |||
| | | | | | (In thousands) | | |||
51∕8% Senior Notes due 2020(1) | | | May 1 and November 1 | | | | $ | 56,375 | | |
63∕4% Senior Notes due 2021 | | | June 1 and December 1 | | | | $ | 135,000 | | |
57∕8% Senior Notes due 2022 | | | January 15 and July 15 | | | | $ | 117,500 | | |
5% Senior Notes due 2023 | | | March 15 and September 15 | | | | $ | 75,000 | | |
57∕8% Senior Notes due 2024 | | | May 15 and November 15 | | | | $ | 117,500 | | |
73∕4% Senior Notes due 2026 | | | January 1 and July 1 | | | | $ | 155,000 | | |
| | | Annual Semi-Annual Payment Dates | | | Debt Service Requirements | |
| | | | | | (In thousands) | |
63∕4% Senior Notes due 2021(1) | | | June 1 and December 1 | | | $135,000 | |
57∕8% Senior Notes due 2022 | | | January 15 and July 15 | | | $117,500 | |
5% Senior Notes due 2023 | | | March 15 and September 15 | | | $75,000 | |
57∕8% Senior Notes due 2024 | | | May 15 and November 15 | | | $117,500 | |
73∕4% Senior Notes due 2026 | | | January 1 and July 1 | | | $155,000 | |
73∕8% Senior Notes due 2028 | | | January 1 and July 1 | | | $73,750 | |
| | As of December 31, | | | As of December 31, | | ||||||||||||||
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||
Satellites and other finance lease obligations | | | $ | 212,617 | | | | $ | 66,984 | | | | $160,609 | | $212,617 | | ||||
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6.0% | | | | 25,996 | | | | | 10,346 | | | |||||||||
Notes payable related to satellite vendor financing and other debt payable in installments through 2031 with interest rates ranging from approximately 4.0% to 6.0% | | 23,565 | | 25,996 | | |||||||||||||||
Total | | | | 238,613 | | | | | 77,330 | | | | 184,174 | | 238,613 | | ||||
Less: current portion | | | | (51,108) | | | | | (21,155) | | | | (52,374) | | (51,108) | | ||||
Other long-term debt and finance lease obligations, net of current portion | | | $ | 187,505 | | | | $ | 56,175 | | | | $131,800 | | $187,505 | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Current (benefit) provision: | | | | | | | | | | | | | | | | | | | |
Federal | | | | $ | 208,821 | | | | | $ | 273,632 | | | | | $ | 356,759 | | |
State | | | | | 48,417 | | | | | | 64,534 | | | | | | 54,133 | | |
Foreign | | | | | 6,203 | | | | | | 4,616 | | | | | | 3,736 | | |
Total current (benefit) provision | | | | | 263,441 | | | | | | 342,782 | | | | | | 414,628 | | |
Deferred (benefit) provision: | | | | | | | | | | | | | | | | | | | |
Federal | | | | | 11,243 | | | | | | (25,934) | | | | | | (308,028) | | |
State | | | | | (1,987) | | | | | | (123) | | | | | | 11,954 | | |
Increase (decrease) in valuation allowance | | | | | 2,054 | | | | | | 1,580 | | | | | | (938) | | |
Total deferred (benefit) provision | | | | | 11,310 | | | | | | (24,477) | | | | | | (297,012) | | |
Total (benefit) provision | | | | $ | 274,751 | | | | | $ | 318,305 | | | | | $ | 117,616 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Current (benefit) provision: | | | | | | | | | | | | | | | | | | | |
Federal | | | | $ | 394,824 | | | | | $ | 208,821 | | | | | $ | 273,632 | | |
State | | | | | 88,449 | | | | | | 48,417 | | | | | | 64,534 | | |
Foreign | | | | | 3,971 | | | | | | 6,203 | | | | | | 4,616 | | |
Total current (benefit) provision | | | | | 487,244 | | | | | | 263,441 | | | | | | 342,782 | | |
Deferred (benefit) provision: | | | | | | | | | | | | | | | | | | | |
Federal | | | | | 14,327 | | | | | | 11,243 | | | | | | (25,934) | | |
State | | | | | (2,161) | | | | | | (1,987) | | | | | | (123) | | |
Increase (decrease) in valuation allowance | | | | | 948 | | | | | | 2,054 | | | | | | 1,580 | | |
Total deferred (benefit) provision | | | | | 13,114 | | | | | | 11,310 | | | | | | (24,477) | | |
Total (benefit) provision | | | | $ | 500,358 | | | | | $ | 274,751 | | | | | $ | 318,305 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | |||||||||
| | | % of pre-tax income/(loss) | | |||||||||||||||
Statutory rate | | | | | 21.0 | | | | | | 21.0 | | | | | | 35.0 | | |
State income taxes, net of federal benefit | | | | | 3.6 | | | | | | 4.4 | | | | | | 4.2 | | |
Tax Reform Act(1) | | | | | — | | | | | | — | | | | | | (34.5) | | |
Nondeductible/Nontaxable items(2) | | | | | — | | | | | | — | | | | | | 11.5 | | |
Other, net | | | | | 0.3 | | | | | | (0.8) | | | | | | (2.2) | | |
Total (benefit) provision for income taxes | | | | | 24.9 | | | | | | 24.6 | | | | | | 14.0 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | % of pre-tax income/(loss) | | |||||||||||||||
Statutory rate | | | | | 21.0 | | | | | | 21.0 | | | | | | 21.0 | | ��� |
State income taxes, net of federal benefit | | | | | 3.6 | | | | | | 3.6 | | | | | | 4.4 | | |
Other, net | | | | | (0.6) | | | | | | 0.3 | | | | | | (0.8) | | |
Total (benefit) provision for income taxes | | | | | 24.0 | | | | | | 24.9 | | | | | | 24.6 | | |
| | As of December 31, | | | As of December 31, | | ||||||||||||||||||||
| | 2019 | | 2018 | | | 2020 | | 2019 | | ||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||
Deferred tax assets: | | | | | | | | | | | | | | | | | | | | | | | ||||
NOL, interest, credit and other carryforwards | | | $ | 12,323 | | | | $ | 10,915 | | | | | $ | 10,641 | | | | $ | 12,323 | | | ||||
Accrued and prepaid expenses | | | | 96,974 | | | | | — | | | | | | 4,911 | | | | | 96,974 | | | ||||
Stock-based compensation | | | | 19,719 | | | | | 21,198 | | | | | | 15,924 | | | | | 19,719 | | | ||||
Deferred revenue | | | | 17,238 | | | | | 18,361 | | | | | | 27,612 | | | | | 17,238 | | | ||||
Total deferred tax assets | | | | 146,254 | | | | | 50,474 | | | | | | 59,088 | | | | | 146,254 | | | ||||
Valuation allowance | | | | (9,521) | | | | | (7,467) | | | | | | (10,469) | | | | | (9,521) | | | ||||
Deferred tax asset after valuation allowance | | | | 136,733 | | | | | 43,007 | | | | | | 48,619 | | | | | 136,733 | | | ||||
Deferred tax liabilities: | | | | | | | | | | | | | | | | | | | | | | | ||||
Depreciation | | | | (458,811) | | | | | (345,358) | | | | | | (386,379) | | | | | (458,811) | | | ||||
Accrued and prepaid expenses | | | | — | | | | | (15,537) | | | |||||||||||||||
FCC authorizations and other intangible amortization | | | | (174,399) | | | | | (131,452) | | | | | | (173,539) | | | | | (174,399) | | | ||||
Bases difference in partnerships and other investments | | | | (5,380) | | | | | (12,112) | | | | | | (3,629) | | | | | (5,380) | | | ||||
Other liabilities | | | | — | | | | | — | | | |||||||||||||||
Total deferred tax liabilities | | | | (638,590) | | | | | (504,459) | | | | | | (563,547) | | | | | (638,590) | | | ||||
Net deferred tax asset (liability) | | | $ | (501,857) | | | | $ | (461,452) | | | | | $ | (514,928) | | | | $ | (501,857) | | |
| | | For the Years Ended December 31, | | |||||||||||||||
Unrecognized tax benefit | | | 2019 | | | 2018 | | | 2017 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Balance as of beginning of period | | | | $ | 194,136 | | | | | $ | 201,162 | | | | | $ | 201,693 | | |
Additions based on tax positions related to the current year | | | | | 3,232 | | | | | | 10,550 | | | | | | 684 | | |
Additions based on tax positions related to prior years | | | | | 28,137 | | | | | | 1,154 | | | | | | 4,593 | | |
Reductions based on tax positions related to prior years | | | | | (13,028) | | | | | | (4,479) | | | | | | (1,061) | | |
Reductions based on tax positions related to settlements with taxing authorities | | | | | (2,362) | | | | | | (8,328) | | | | | | (1,634) | | |
Reductions based on tax positions related to the lapse of the statute of limitations | | | | | (1,963) | | | | | | (5,923) | | | | | | (3,113) | | |
Balance as of end of period | | | | $ | 208,152 | | | | | $ | 194,136 | | | | | $ | 201,162 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
Unrecognized tax benefit | | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Balance as of beginning of period | | | | $ | 208,152 | | | | | $ | 194,136 | | | | | $ | 201,162 | | |
Additions based on tax positions related to the current year | | | | | 233 | | | | | | 3,232 | | | | | | 10,550 | | |
Additions based on tax positions related to prior years | | | | | 1,800 | | | | | | 28,137 | | | | | | 1,154 | | |
Reductions based on tax positions related to prior years | | | | | (20,337) | | | | | | (13,028) | | | | | | (4,479) | | |
Reductions based on tax positions related to settlements with taxing authorities | | | | | (831) | | | | | | (2,362) | | | | | | (8,328) | | |
Reductions based on tax positions related to the lapse of the statute of limitations | | | | | (876) | | | | | | (1,963) | | | | | | (5,923) | | |
Balance as of end of period | | | | $ | 188,141 | | | | | $ | 208,152 | | | | | $ | 194,136 | | |
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||
Expense Recognized Related to the 401(k) Plan | | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||||||||||||||
Matching contributions, net of forfeitures | | | $ | 11,181 | | | | $ | 10,300 | | | | $ | 7,070 | | | | | $ | 11,549 | | | | $ | 11,181 | | | | $ | 10,300 | | | ||||||
Discretionary stock contributions, net of forfeitures | | | $ | 28,774 | | | | $ | 27,048 | | | | $ | 27,969 | | | | | $ | 29,784 | | | | $ | 28,774 | | | | $ | 27,048 | | |
| | | Options Outstanding | | | Options Exercisable | | ||||||||||||||||||||||||||||||
| | | Number Outstanding as of December 31, 2019 | | | Weighted- Average Remaining Contractual Life | | | Weighted- Average Exercise Price | | | Number Exercisable as of December 31, 2019 | | | Weighted- Average Remaining Contractual Life | | | Weighted- Average Exercise Price | | ||||||||||||||||||
$ 10.01 – $20.00 | | | | | 616,160 | | | | | | 0.50 | | | | | $ | 15.39 | | | | | | 16,160 | | | | | | 0.50 | | | | | $ | 15.62 | | |
$ 20.01 – $30.00 | | | | | 826,983 | | | | | | 3.37 | | | | | $ | 26.74 | | | | | | 124,233 | | | | | | 3.25 | | | | | $ | 24.02 | | |
$ 30.01 – $40.00 | | | | | 6,671,563 | | | | | | 7.94 | | | | | $ | 35.67 | | | | | | 1,057,044 | | | | | | 7.50 | | | | | $ | 35.52 | | |
$ 40.01 – $50.00 | | | | | 1,468,628 | | | | | | 7.59 | | | | | $ | 47.52 | | | | | | 384,800 | | | | | | 7.10 | | | | | $ | 47.24 | | |
$ 50.01 – $60.00 | | | | | 2,154,378 | | | | | | 6.47 | | | | | $ | 57.50 | | | | | | 430,952 | | | | | | 5.69 | | | | | $ | 59.90 | | |
$ 60.01 – $70.00 | | | | | 1,040,100 | | | | | | 6.29 | | | | | $ | 64.22 | | | | | | 304,300 | | | | | | 5.50 | | | | | $ | 65.23 | | |
$ 70.01 – $80.00 | | | | | 15,000 | | | | | | — | | | | | $ | 72.89 | | | | | | 15,000 | | | | | | — | | | | | $ | 72.89 | | |
$ — – $80.00 | | | | | 12,792,812 | | | | | | 6.85 | | | | | $ | 41.52 | | | | | | 2,332,489 | | | | | | 6.51 | | | | | $ | 44.77 | | |
|
| | | Options Outstanding | | | Options Exercisable | | ||||||||||||||||||||||||||||||
| | | Number Outstanding as of December 31, 2020 | | | Weighted- Average Remaining Contractual Life | | | Weighted- Average Exercise Price | | | Number Exercisable as of December 31, 2020 | | | Weighted- Average Remaining Contractual Life | | | Weighted- Average Exercise Price | | ||||||||||||||||||
$10.01 − $20.00 | | | | | 221,500 | | | | | | 8.20 | | | | | $ | 18.70 | | | | | | 8,336 | | | | | | 7.75 | | | | | $ | 18.70 | | |
$20.01 − $30.00 | | | | | 300,675 | | | | | | 6.22 | | | | | $ | 25.67 | | | | | | 148,681 | | | | | | 4.53 | | | | | $ | 24.65 | | |
$30.01 − $40.00 | | | | | 6,125,897 | | | | | | 7.16 | | | | | $ | 35.63 | | | | | | 2,388,162 | | | | | | 7.24 | | | | | $ | 35.52 | | |
$40.01 − $50.00 | | | | | 1,119,265 | | | | | | 6.50 | | | | | $ | 47.46 | | | | | | 519,500 | | | | | | 6.22 | | | | | $ | 47.27 | | |
$50.01 − $60.00 | | | | | 1,609,378 | | | | | | 5.52 | | | | | $ | 57.48 | | | | | | 394,252 | | | | | | 4.71 | | | | | $ | 56.78 | | |
$60.01 − $70.00 | | | | | 806,900 | | | | | | 5.44 | | | | | $ | 64.35 | | | | | | 301,500 | | | | | | 5.14 | | | | | $ | 65.40 | | |
$ — − $70.00 | | | | | 10,183,615 | | | | | | 6.69 | | | | | $ | 41.99 | | | | | | 3,760,431 | | | | | | 6.56 | | | | | $ | 41.30 | | |
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Options | | Weighted- Average Exercise Price | | Options | | Weighted- Average Exercise Price | | Options | | Weighted- Average Exercise Price | | | Options | | Weighted- Average Exercise Price | | Options | | Weighted- Average Exercise Price | | Options | | Weighted- Average Exercise Price | | ||||||||||||||||||||||||||||||||||||||||||||||||
Total options outstanding, beginning of period | | | | 13,365,489 | | | | $ | 41.78 | | | | | 8,847,734 | | | | $ | 43.90 | | | | | 7,913,733 | | | | $ | 36.22 | | | | | | 12,792,812 | | | | $ | 41.52 | | | | | 13,365,489 | | | | $ | 41.78 | | | | | 8,847,734 | | | | $ | 43.90 | | | ||||||||||||
Granted | | | | 1,396,750 | | | | $ | 33.52 | | | | | 7,026,512 | | | | $ | 38.44 | | | | | 3,468,626 | | | | $ | 59.66 | | | | | | 1,112,500 | | | | $ | 31.21 | | | | | 1,396,750 | | | | $ | 33.52 | | | | | 7,026,512 | | | | $ | 38.44 | | | ||||||||||||
Exercised | | | | (713,411) | | | | $ | 27.46 | | | | | (267,905) | | | | $ | 16.43 | | | | | (505,125) | | | | $ | 28.73 | | | | | | (109,195) | | | | $ | 28.53 | | | | | (713,411) | | | | $ | 27.46 | | | | | (267,905) | | | | $ | 16.43 | | | ||||||||||||
Forfeited and cancelled(1) | | | | (1,256,016) | | | | $ | 43.40 | | | | | (2,240,852) | | | | $ | 39.73 | | | | | (2,029,500) | | | | $ | 44.64 | | | |||||||||||||||||||||||||||||||||||||||||||
Forfeited, cancelled and transferred (1) | | | | (3,612,502) | | | | $ | 37.41 | | | | | (1,256,016) | | | | $ | 43.40 | | | | | (2,240,852) | | | | $ | 39.73 | | | |||||||||||||||||||||||||||||||||||||||||||
Total options outstanding, end of period | | | | 12,792,812 | | | | $ | 41.52 | | | | | 13,365,489 | | | | $ | 41.78 | | | | | 8,847,734 | | | | $ | 43.90 | | | | | | 10,183,615 | | | | $ | 41.99 | | | | | 12,792,812 | | | | $ | 41.52 | | | | | 13,365,489 | | | | $ | 41.78 | | | ||||||||||||
Performance-based options outstanding, end of period (2) | | | | 7,608,446 | | | | $ | 39.78 | | | | | 8,671,886 | | | | $ | 39.95 | | | | | 5,490,626 | | | | $ | 42.81 | | | | | | 4,096,749 | | | | $ | 44.44 | | | | | 7,608,446 | | | | $ | 39.78 | | | | | 8,671,886 | | | | $ | 39.95 | | | ||||||||||||
Exercisable at end of period | | | | 2,332,489 | | | | $ | 44.93 | | | | | 1,705,103 | | | | $ | 40.87 | | | | | 1,772,608 | | | | $ | 35.13 | | | | | | 3,760,431 | | | | $ | 41.30 | | | | | 2,332,489 | | | | $ | 44.93 | | | | | 1,705,103 | | | | $ | 40.87 | | |
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||||||||||||||
Tax benefit from stock awards exercised | | | $ | 1,239 | | | | $ | 1,664 | | | | $ | 9,347 | | | | | $ | 3,361 | | | | $ | 1,239 | | | | $ | 1,664 | | |
| | As of December 31, 2019 | | | As of December 31, 2020 | | ||||||||||||||||||||
| | Options Outstanding | | Options Exercisable | | | Options Outstanding | | Options Exercisable | | ||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||
Aggregate intrinsic value | | | $ | 21,829 | | | | $ | 2,136 | | | | | $ | 5,043 | | | | $ | 1,272 | | | ||||
|
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Restricted Stock Units/Awards | | Weighted- Average Grant Date Fair Value | | Restricted Stock Units/Awards | | Weighted- Average Grant Date Fair Value | | Restricted Stock Units/Awards | | Weighted- Average Grant Date Fair Value | | | Restricted Stock Units/Awards | | Weighted- Average Grant Date Fair Value | | Restricted Stock Units/Awards | | Weighted- Average Grant Date Fair Value | | Restricted Stock Units/Awards | | Weighted- Average Grant Date Fair Value | | ||||||||||||||||||||||||||||||||||||||||||||||||
Total restricted stock units/awards outstanding, beginning of period | | | | 1,718,945 | | | | $ | 52.16 | | | | | 2,484,720 | | | | $ | 51.16 | | | | | 1,336,000 | | | | $ | 32.11 | | | |||||||||||||||||||||||||||||||||||||||||||
Total restricted stock units/awards outstanding, beginning of period | | | | 1,463,650 | | | | $ | 50.82 | | | | | 1,718,945 | | | | $ | 52.16 | | | | | 2,484,720 | | | | $ | 51.16 | | | |||||||||||||||||||||||||||||||||||||||||||
Granted | | | | — | | | | $ | — | | | | | — | | | | $ | — | | | | | 1,871,375 | | | | $ | 63.87 | | | | | | 1,470,505 | | | | $ | 32.92 | | | | | — | | | | $ | — | | | | | — | | | | $ | — | | | ||||||||||||
Vested | | | | (9,565) | | | | $ | 63.49 | | | | | (10,475) | | | | $ | 63.49 | | | | | (14,845) | | | | $ | 62.58 | | | | | | (697,660) | | | | $ | 63.81 | | | | | (9,565) | | | | $ | 63.49 | | | | | (10,475) | | | | $ | 63.49 | | | ||||||||||||
Forfeited and cancelled(1) | | | | (245,730) | | | | $ | 59.86 | | | | | (755,300) | | | | $ | 48.51 | | | | | (707,810) | | | | $ | 48.59 | | | |||||||||||||||||||||||||||||||||||||||||||
Total restricted stock units/awards outstanding, end of period | | | | 1,463,650 | | | | $ | 50.82 | | | | | 1,718,945 | | | | $ | 52.16 | | | | | 2,484,720 | | | | $ | 51.16 | | | |||||||||||||||||||||||||||||||||||||||||||
Restricted Performance Units/Awards outstanding, end of period (2) | | | | 1,446,300 | | | | $ | 50.66 | | | | | 1,689,350 | | | | $ | 51.97 | | | | | 2,435,500 | | | | $ | 50.91 | | | |||||||||||||||||||||||||||||||||||||||||||
Forfeited, cancelled and transferred (1) | | | | (686,250) | | | | $ | 35.14 | | | | | (245,730) | | | | $ | 59.86 | | | | | (755,300) | | | | $ | 48.51 | | | |||||||||||||||||||||||||||||||||||||||||||
Total restricted stock units/awards outstanding, end of period | | | | 1,550,245 | | | | $ | 34.70 | | | | | 1,463,650 | | | | $ | 50.82 | | | | | 1,718,945 | | | | $ | 52.16 | | | |||||||||||||||||||||||||||||||||||||||||||
Restricted Performance Units/Awards outstanding, end of period (2) | | | | 1,543,750 | | | | $ | 34.58 | | | | | 1,446,300 | | | | $ | 50.66 | | | | | 1,689,350 | | | | $ | 51.97 | | |
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||
Non-Cash, Stock-Based Compensation Expense Recognized(1) | | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||||||||||||||
2019 LTIP | | | $ | 14,946 | | | | $ | 3,475 | | | | $ | — | | | | | $ | 12,526 | | | | $ | 14,946 | | | | $ | 3,475 | | | ||||||
2017 LTIP | | | | (12,902) | | | | | 3,293 | | | | | 10,640 | | | | | | — | | | | | (12,902) | | | | | 3,293 | | | ||||||
2013 LTIP | | | | (1,021) | | | | | (2,471) | | | | | (321) | | | | | | (741) | | | | | (1,021) | | | | | (2,471) | | | ||||||
Other employee performance awards | | | | (592) | | | | | 17,888 | | | | | 7,549 | | | | | | 4,370 | | | | | (592) | | | | | 17,888 | | | ||||||
Total non-cash, stock-based compensation expense recognized for performance-based awards | | | $ | 431 | | | | $ | 22,185 | | | | $ | 17,868 | | | | | $ | 16,155 | | | | $ | 431 | | | | $ | 22,185 | | |
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | | | 2019 LTIP | | | 2017 LTIP | | | 2013 LTIP | | | Other Employee Performance Awards | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Expense estimated to be recognized during 2020 | | | | $ | 10,541 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Estimated contingent expense subsequent to 2020 | | | | | 12,682 | | | | | | 29,341 | | | | | | 29,766 | | | | | | 61,322 | | |
Total estimated remaining expense over the term of the plan | | | | $ | 23,223 | | | | | $ | 29,341 | | | | | $ | 29,766 | | | | | $ | 61,322 | | |
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | | | 2019 LTIP | | | 2017 LTIP | | | 2013 LTIP | | | Other Employee Performance Awards | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Expense estimated to be recognized during 2021 | | | | $ | 3,150 | | | | | $ | — | | | | | $ | — | | | | | $ | 14,613 | | |
Estimated contingent expense subsequent to 2021 | | | | | 5,861 | | | | | | — | | | | | | 22,488 | | | | | | 18,129 | | |
Total estimated remaining expense over the term of the plan | | | | $ | 9,011 | | | | | $ | — | | | | | $ | 22,488 | | | | | $ | 32,742 | | |
| | As of December 31, 2019 | | | As of December 31, 2020 | | ||||||||||||||||||||
Performance-Based Stock Options | | Number of Awards | | Weighted- Average Grant Price | | | Number of Awards | | Weighted- Average Grant Price | | ||||||||||||||||
2019 LTIP | | | | 3,510,375 | | | | $ | 35.16 | | | | | | 1,761,241 | | | | $ | 34.71 | | | ||||
2017 LTIP | | | | 2,083,071 | | | | $ | 57.12 | | | | | | 1,659,508 | | | | $ | 56.39 | | | ||||
2013 LTIP | | | | 875,000 | | | | $ | 41.08 | | | | | | 676,000 | | | | $ | 40.43 | | | ||||
Other employee performance awards | | | | 1,140,000 | | | | $ | 21.31 | | | |||||||||||||||
Total | | | | 7,608,446 | | | | $ | 39.78 | | | | | | 4,096,749 | | | | $ | 44.44 | | | ||||
Restricted Performance Units/Awards | | | | | | | | | | | | | | | | | | | | | | | ||||
2013 LTIP | | | | 437,500 | | | | | | | | | | | 338,000 | | | | | | | | ||||
Other employee performance awards | | | | 1,008,800 | | | | | | | | | | | 1,205,750 | | | | | | | | ||||
Total | | | | 1,446,300 | | | | | | | | | | | 1,543,750 | | | | | | | | ||||
|
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||
| | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||||||||||||||
Subscriber-related | | | $ | 509 | | | | $ | 1,150 | | | | $ | 1,562 | | | ||||||||||||||||||||||
Satellite and transmission | | | | 329 | | | | | 262 | | | | | 1,761 | | | ||||||||||||||||||||||
General and administrative | | | | 13,015 | | | | | 34,109 | | | | | 26,618 | | | ||||||||||||||||||||||
Cost of services | | | $ | 7,194 | | | | $ | 838 | | | | $ | 1,412 | | | ||||||||||||||||||||||
Selling, general and administrative | | | | 23,477 | | | | | 13,015 | | | | | 34,109 | | | ||||||||||||||||||||||
Total non-cash, stock based compensation | | | $ | 13,853 | | | | $ | 35,521 | | | | $ | 29,941 | | | | | $ | 30,671 | | | | $ | 13,853 | | | | $ | 35,521 | | |
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | |||||||||||||||||||||||||||||||||||||||||
Stock Options | | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | |||||||||||||||||||||||||||||||||
Risk-free interest rate | | 1.51% – 2.53% | | 2.09% – 2.98% | | 1.34% – 2.29% | | | | | 0.17% | | | | | 1.72% | | | | | 1.51% | | | | | 2.53% | | | | | 2.09% | | | | | 2.98% | | | |||||||||
Volatility factor | | 28.86% – 32.08% | | 23.33% – 30.22% | | 22.25% – 26.15% | | | | | 28.91% | | | | | 48.08% | | | | | 28.86% | | | | | 32.08% | | | | | 23.33% | | | | | 30.22% | | | |||||||||
Expected term of options in years | | 4.3 – 5.5 | | 2.8 – 5.5 | | 3.8 – 5.5 | | | | | 3.3 | | | | | 5.5 | | | | | 4.3 | | | | | 5.5 | | | | | 2.8 | | | | | 5.5 | | | |||||||||
Fair value of options granted | | $7.58 – $12.45 | | $7.10 – $12.53 | | $11.95 – $16.69 | | | | $ | 5.50 | | | | $ | 12.10 | | | | $ | 7.58 | | | | $ | 12.45 | | | | $ | 7.10 | | | | $ | 12.53 | | |
| | | Payments due by period | | |||||||||||||||||||||||||||||||||||||||
| | | Total | | | 2020 | | | 2021 | | | 2022 | | | 2023 | | | 2024 | | | Thereafter | | |||||||||||||||||||||
Long-term debt obligations | | | | $ | 10,625,996 | | | | | $ | 1,102,430 | | | | | $ | 2,002,554 | | | | | $ | 2,002,683 | | | | | $ | 1,502,820 | | | | | $ | 2,002,964 | | | | | $ | 2,012,545 | | |
Interest expense on long-term debt | | | | | 2,524,898 | | | | | $ | 629,410 | | | | | $ | 533,599 | | | | | $ | 465,969 | | | | | $ | 310,832 | | | | | $ | 273,188 | | | | | $ | 311,900 | | |
Finance lease obligations(1) | | | | | 212,617 | | | | | | 48,678 | | | | | | 53,150 | | | | | | 41,666 | | | | | | 38,018 | | | | | | 31,105 | | | | | | — | | |
Interest expense on finance lease obligations(1) | | | | | 45,183 | | | | | | 17,607 | | | | | | 13,129 | | | | | | 8,561 | | | | | | 4,844 | | | | | | 1,042 | | | | | | — | | |
Satellite-related and other obligations(2) | | | | | 219,019 | | | | | | 71,931 | | | | | | 65,663 | | | | | | 41,291 | | | | | | 23,321 | | | | | | 16,813 | | | | | | — | | |
Operating lease obligations(1) | | | | | 641,792 | | | | | | 239,660 | | | | | | 199,062 | | | | | | 127,300 | | | | | | 24,571 | | | | | | 9,191 | | | | | | 42,008 | | |
Purchase obligations | | | | | 1,241,340 | | | | | | 1,200,025 | | | | | | 29,284 | | | | | | 12,031 | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 15,510,845 | | | | | $ | 3,309,741 | | | | | $ | 2,896,441 | | | | | $ | 2,699,501 | | | | | $ | 1,904,406 | | | | | $ | 2,334,303 | | | | | $ | 2,366,453 | | |
| | | Payments due by period | | |||||||||||||||||||||||||||||||||||||||
| | | Total | | | 2021 | | | 2022 | | | 2023 | | | 2024 | | | 2025 | | | Thereafter | | |||||||||||||||||||||
Long-term debt obligations | | | | $ | 10,523,565 | | | | | $ | 2,002,553 | | | | | $ | 2,002,683 | | | | | $ | 1,502,820 | | | | | $ | 2,002,964 | | | | | $ | 3,115 | | | | | $ | 3,009,430 | | |
Interest expense on long-term debt | | | | | 2,485,488 | | | | | | 607,349 | | | | | | 539,719 | | | | | | 384,582 | | | | | | 346,938 | | | | | | 229,287 | | | | | | 377,613 | | |
Finance lease obligations(1) | | | | | 160,609 | | | | | | 49,820 | | | | | | 41,666 | | | | | | 38,018 | | | | | | 31,105 | | | | | | — | | | | | | — | | |
Interest expense on finance lease obligations(1) | | | | | 27,240 | | | | | | 12,793 | | | | | | 8,561 | | | | | | 4,844 | | | | | | 1,042 | | | | | | — | | | | | | — | | |
Other long-term obligations(2) | | | | | 483,502 | | | | | | 352,180 | | | | | | 59,562 | | | | | | 38,947 | | | | | | 28,813 | | | | | | 4,000 | | | | | | — | | |
Operating lease obligations(1) | | | | | 431,008 | | | | | | 208,759 | | | | | | 136,132 | | | | | | 30,165 | | | | | | 12,397 | | | | | | 8,081 | | | | | | 35,474 | | |
Purchase obligations | | | | | 1,223,733 | | | | | | 1,188,070 | | | | | | 26,947 | | | | | | 8,716 | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 15,335,145 | | | | | $ | 4,421,524 | | | | | $ | 2,815,270 | | | | | $ | 2,008,092 | | | | | $ | 2,423,259 | | | | | $ | 244,483 | | | | | $ | 3,422,517 | | |
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||
Revenue: | | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||||||||||||||
United States | | | $ | 12,581,855 | | | | $ | 13,319,091 | | | | $ | 13,967,694 | | | | | $ | 12,692,940 | | | | $ | 12,581,855 | | | | $ | 13,319,091 | | | ||||||
Canada and Mexico | | | | 41,038 | | | | | 43,048 | | | | | 39,817 | | | | | | 34,689 | | | | | 41,038 | | | | | 43,048 | | | ||||||
Total revenue | | | $ | 12,622,893 | | | | $ | 13,362,139 | | | | $ | 14,007,511 | | | | | $ | 12,727,629 | | | | $ | 12,622,893 | | | | $ | 13,362,139 | | |
| | For the Years Ended December 31, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||
Category: | | 2019 | | 2018 | | 2017 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||
| | (In thousands) | | | | | | | | (In thousands) | | | | | | | ||||||||||||||||||||||
Pay-TV video and related revenue | | | $ | 12,436,637 | | | | $ | 13,197,994 | | | | $ | 13,877,196 | | | | | $ | 12,576,470 | | | | $ | 12,436,637 | | | | $ | 13,197,994 | | | ||||||
Equipment sales and other revenue | | | | 186,256 | | | | | 164,145 | | | | | 130,315 | | | | | | 151,159 | | | | | 186,256 | | | | | 164,145 | | | ||||||
Total | | | $ | 12,622,893 | | | | $ | 13,362,139 | | | | $ | 14,007,511 | | | | | $ | 12,727,629 | | | | $ | 12,622,893 | | | | $ | 13,362,139 | | |
Allowance for credit losses | | | Balance at Beginning of Period | | | Current Period Provision for Expected Credit Losses | | | Write-offs Charged Against Allowance | | | Balance at End of Period | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
For the years ended: | | | | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2020 | | | | $ | 19,280 | | | | | $ | 76,441 | | | | | $ | (52,488) | | | | | $ | 43,233 | | |
December 31, 2019 | | | | $ | 16,956 | | | | | $ | 69,866 | | | | | $ | (67,542) | | | | | $ | 19,280 | | |
December 31, 2018 | | | | $ | 15,056 | | | | | $ | 98,461 | | | | | $ | (96,561) | | | | | $ | 16,956 | | |
Allowance for doubtful accounts | | | Balance at Beginning of Year | | | Charged to Costs and Expenses | | | Deductions | | | Balance at End of Year | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
For the years ended: | | | | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2019 | | | | $ | 16,956 | | | | | $ | 69,866 | | | | | $ | (67,542) | | | | | $ | 19,280 | | |
December 31, 2018 | | | | $ | 15,056 | | | | | $ | 98,461 | | | | | $ | (96,561) | | | | | $ | 16,956 | | |
December 31, 2017 | | | | $ | 17,440 | | | | | $ | 124,143 | | | | | $ | (126,527) | | | | | $ | 15,056 | | |
| | Contract Liabilities | | | Contract Liabilities | | ||||||||
| | (In thousands) | | | (In thousands) | | ||||||||
Balance as of December 31, 2018 | | | $ | 624,626 | | | ||||||||
Balance as of December 31, 2019 | | | $ | 609,054 | | | ||||||||
Recognition of unearned revenue | | | | (7,086,252) | | | | | | (5,852,961) | | | ||
Deferral of revenue | | | | 7,070,680 | | | | | | 5,837,704 | | | ||
Balance as of December 31, 2019 | | | $ | 609,054 | | | ||||||||
Balance as of December 31, 2020 | | | $ | 593,797 | | |
| | | For the Three Months Ended | | |||||||||||||||||||||
| | | March 31 | | | June 30 | | | September 30 | | | December 31 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Year ended December 31, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | | $ | 3,138,000 | | | | | $ | 3,166,599 | | | | | $ | 3,122,282 | | | | | $ | 3,196,012 | | |
Operating income (loss) | | | | | 430,735 | | | | | | 435,966 | | | | | | 438,498 | | | | | | 515,999 | | |
Net income (loss) attributable to DISH DBS | | | | | 177,760 | | | | | | 185,368 | | | | | | 204,858 | | | | | | 259,545 | | |
Year ended December 31, 2018: | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | | $ | 3,383,222 | | | | | $ | 3,393,307 | | | | | $ | 3,334,444 | | | | | $ | 3,251,166 | | |
Operating income (loss) | | | | | 508,121 | | | | | | 549,502 | | | | | | 542,439 | | | | | | 466,448 | | |
Net income (loss) attributable to DISH DBS | | | | | 204,192 | | | | | | 285,691 | | | | | | 281,272 | | | | | | 200,132 | | |
| | | For the Three Months Ended | | |||||||||||||||||||||
| | | March 31 | | | June 30 | | | September 30 | | | December 31 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Year ended December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | | $ | 3,167,782 | | | | | $ | 3,148,531 | | | | | $ | 3,151,029 | | | | | $ | 3,260,287 | | |
Operating income (loss) | | | | | 507,202 | | | | | | 663,897 | | | | | | 768,656 | | | | | | 822,177 | | |
Net income (loss) attributable to DISH DBS | | | | | 244,153 | | | | | | 374,980 | | | | | | 449,873 | | | | | | 515,296 | | |
Year ended December 31, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | | $ | 3,138,000 | | | | | $ | 3,166,599 | | | | | $ | 3,122,282 | | | | | $ | 3,196,012 | | |
Operating income (loss) | | | | | 430,735 | | | | | | 435,966 | | | | | | 438,498 | | | | | | 515,999 | | |
Net income (loss) attributable to DISH DBS | | | | | 177,760 | | | | | | 185,368 | | | | | | 204,858 | | | | | | 259,545 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Purchases (including fees): | | | | | | | | | | | | | | | | | | | |
Purchases from NagraStar | | | | $ | 56,284 | | | | | $ | 72,162 | | | | | $ | 71,167 | | |
|
| | | As of December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
| | | (In thousands) | | |||||||||
Amounts Payable and Commitments: | | | | | | | | | | | | | |
Amounts payable to NagraStar | | | | $ | 9,630 | | | | | $ | 9,871 | | |
Commitments to NagraStar | | | | $ | 4,893 | | | | | $ | 3,888 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Purchases (including fees): | | | | | | | | | | | | | | | | | | | |
Purchases from NagraStar | | | | $ | 53,902 | | | | | $ | 56,284 | | | | | $ | 72,162 | | |
| | | As of December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
Amounts Payable and Commitments: | | | | | | | | | | | | | |
Amounts payable to NagraStar | | | | $ | 9,038 | | | | | $ | 9,630 | | |
Commitments to NagraStar | | | | $ | 3,260 | | | | | $ | 4,893 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2019 | | | 2018 | | | 2017 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Sales: | | | | | | | | | | | | | | | | | | | |
Digital receivers and related components | | | | $ | — | | | | | $ | 1,227 | | | | | $ | 1,891 | | |
Uplink services | | | | | 5,620 | | | | | | 5,426 | | | | | | 3,994 | | |
Total | | | | $ | 5,620 | | | | | $ | 6,653 | | | | | $ | 5,885 | | |
|
| | | As of December 31, | | |||||||||
| | | 2019 | | | 2018 | | ||||||
| | | (In thousands) | | |||||||||
Amounts Receivable: | | | | | | | | | | | | | |
Amounts receivable from Dish Mexico | | | | $ | 1,191 | | | | | $ | 1,370 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Sales: | | | | | | | | | | | | | | | | | | | |
Digital receivers and related components | | | | $ | — | | | | | $ | — | | | | | $ | 1,227 | | |
Uplink services | | | | | 5,095 | | | | | | 5,620 | | | | | | 5,426 | | |
Total | | | | $ | 5,095 | | | | | $ | 5,620 | | | | | $ | 6,653 | | |
| | | As of December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
Amounts Receivable: | | | | | | | | | | | | | |
Amounts receivable from Dish Mexico | | | | $ | 3,343 | | | | | $ | 1,191 | | |
| | | Page | | |||
Unaudited Interim Consolidated Financial Statements: | | | | | | | |
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | |
| | | As of | | |||||||||
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 1,616,124 | | | | | $ | 1,238,409 | | |
Marketable investment securities | | | | | 48,995 | | | | | | 132,593 | | |
Trade accounts receivable, net of allowance for credit losses of $34,293 and $43,233, respectively | | | | | 581,770 | | | | | | 626,375 | | |
Inventory | | | | | 248,548 | | | | | | 262,297 | | |
Other current assets | | | | | 214,569 | | | | | | 272,955 | | |
Total current assets | | | | | 2,710,006 | | | | | | 2,532,629 | | |
Noncurrent Assets: | | | | | | | | | | | | | |
Restricted cash, cash equivalents and marketable investment securities | | | | | 58,255 | | | | | | 58,323 | | |
Property and equipment, net | | | | | 1,494,019 | | | | | | 1,564,704 | | |
FCC authorizations | | | | | 611,794 | | | | | | 611,794 | | |
Other investment securities | | | | | 98,050 | | | | | | 97,306 | | |
Operating lease assets | | | | | 335,609 | | | | | | 380,968 | | |
Other noncurrent assets, net | | | | | 209,234 | | | | | | 222,311 | | |
Total noncurrent assets | | | | | 2,806,961 | | | | | | 2,935,406 | | |
Total assets | | | | $ | 5,516,967 | | | | | $ | 5,468,035 | | |
Liabilities and Stockholder’s Equity (Deficit) | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Trade accounts payable | | | | $ | 378,460 | | | | | $ | 315,661 | | |
Deferred revenue and other | | | | | 632,560 | | | | | | 667,226 | | |
Accrued programming | | | | | 1,311,223 | | | | | | 1,388,407 | | |
Accrued interest | | | | | 169,903 | | | | | | 216,459 | | |
Other accrued expenses | | | | | 607,081 | | | | | | 625,342 | | |
Current portion of long-term debt and finance lease obligations | | | | | 1,847,459 | | | | | | 2,052,374 | | |
Total current liabilities | | | | | 4,946,686 | | | | | | 5,265,469 | | |
Long-Term Obligations, Net of Current Portion: | | | | | | | | | | | | | |
Long-term debt and finance lease obligations, net of current portion | | | | | 8,606,800 | | | | | | 8,619,116 | | |
Deferred tax liabilities | | | | | 500,380 | | | | | | 514,928 | | |
Operating lease liabilities | | | | | 165,514 | | | | | | 192,624 | | |
Long-term deferred revenue and other long-term liabilities | | | | | 185,586 | | | | | | 195,903 | | |
Total long-term obligations, net of current portion | | | | | 9,458,280 | | | | | | 9,522,571 | | |
Total liabilities | | | | | 14,404,966 | | | | | | 14,788,040 | | |
Commitments and Contingencies (Note 9) | | | | | | | | | | | | | |
Stockholder’s Equity (Deficit): | | | | | | | | | | | | | |
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | 1,471,083 | | | | | | 1,463,407 | | |
Accumulated other comprehensive income (loss) | | | | | (1,002) | | | | | | (805) | | |
Accumulated earnings (deficit) | | | | | (10,358,080) | | | | | | (10,782,607) | | |
Total stockholder’s equity (deficit) | | | | | (8,887,999) | | | | | | (9,320,005) | | |
Total liabilities and stockholder’s equity (deficit) | | | | $ | 5,516,967 | | | | | $ | 5,468,035 | | |
| | | For the Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenue: | | | | | | | | | | | | | |
Service revenue | | | | $ | 3,137,387 | | | | | $ | 3,130,900 | | |
Equipment sales and other revenue | | | | | 25,532 | | | | | | 36,882 | | |
Total revenue | | | | | 3,162,919 | | | | | | 3,167,782 | | |
Costs and Expenses (exclusive of depreciation shown separately below – Note 6): | | | | | | | | | | | | | |
Cost of services | | | | | 1,958,699 | | | | | | 2,072,432 | | |
Cost of sales – equipment and other | | | | | 16,275 | | | | | | 30,814 | | |
Selling, general and administrative expenses | | | | | 333,074 | | | | | | 422,249 | | |
Depreciation and amortization (Note 6) | | | | | 115,242 | | | | | | 135,085 | | |
Total costs and expenses | | | | | 2,423,290 | | | | | | 2,660,580 | | |
Operating income (loss) | | | | | 739,629 | | | | | | 507,202 | | |
Other Income (Expense): | | | | | | | | | | | | | |
Interest income | | | | | 806 | | | | | | 850 | | |
Interest expense, net of amounts capitalized | | | | | (173,976) | | | | | | (182,340) | | |
Other, net | | | | | (1,508) | | | | | | 945 | | |
Total other income (expense) | | | | | (174,678) | | | | | | (180,545) | | |
Income (loss) before income taxes | | | | | 564,951 | | | | | | 326,657 | | |
Income tax (provision) benefit, net | | | | | (140,424) | | | | | | (82,504) | | |
Net income (loss) | | | | $ | 424,527 | | | | | $ | 244,153 | | |
Comprehensive Income (Loss): | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 424,527 | | | | | $ | 244,153 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | (195) | | | | | | (352) | | |
Unrealized holding gains (losses) on available-for-sale debt securities | | | | | (2) | | | | | | (11) | | |
Total other comprehensive income (loss), net of tax | | | | | (197) | | | | | | (363) | | |
Comprehensive income (loss) | | | | $ | 424,330 | | | | | $ | 243,790 | | |
| | | As of | | |||||||||
| | | June 30, 2020 | | | December 31, 2019 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 26,819 | | | | | $ | 17,426 | | |
Marketable investment securities | | | | | 31 | | | | | | — | | |
Trade accounts receivable, net of allowance for credit losses and allowance for doubtful accounts of $41,188 and $19,280, respectively | | | | | 514,086 | | | | | | 568,679 | | |
Inventory | | | | | 301,408 | | | | | | 321,983 | | |
Other current assets | | | | | 179,818 | | | | | | 164,767 | | |
Total current assets | | | | | 1,022,162 | | | | | | 1,072,855 | | |
Noncurrent Assets: | | | | | | | | | | | | | |
Restricted cash, cash equivalents and marketable investment securities | | | | | 61,349 | | | | | | 61,067 | | |
Property and equipment, net | | | | | 1,661,928 | | | | | | 1,751,573 | | |
FCC authorizations | | | | | 611,794 | | | | | | 611,794 | | |
Other investment securities | | | | | 96,886 | | | | | | 106,874 | | |
Operating lease assets | | | | | 471,987 | | | | | | 553,576 | | |
Other noncurrent assets, net | | | | | 230,230 | | | | | | 228,820 | | |
Total noncurrent assets | | | | | 3,134,174 | | | | | | 3,313,704 | | |
Total assets | | | | $ | 4,156,336 | | | | | $ | 4,386,559 | | |
Liabilities and Stockholder’s Equity (Deficit) | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Trade accounts payable | | | | $ | 338,109 | | | | | $ | 266,417 | | |
Advances from affiliates | | | | | — | | | | | | 82,415 | | |
Deferred revenue and other | | | | | 652,866 | | | | | | 674,079 | | |
Accrued programming | | | | | 1,683,468 | | | | | | 1,308,531 | | |
Accrued interest | | | | | 180,248 | | | | | | 189,039 | | |
Other accrued expenses | | | | | 893,149 | | | | | | 918,333 | | |
Current portion of long-term debt and finance lease obligations | | | | | 2,053,291 | | | | | | 1,151,108 | | |
Total current liabilities | | | | | 5,801,131 | | | | | | 4,589,922 | | |
Long-Term Obligations, Net of Current Portion: | | | | | | | | | | | | | |
Long-term debt and finance lease obligations, net of current portion | | | | | 7,647,933 | | | | | | 9,671,255 | | |
Deferred tax liabilities | | | | | 521,433 | | | | | | 501,857 | | |
Operating lease liabilities | | | | | 267,154 | | | | | | 350,155 | | |
Long-term deferred revenue and other long-term liabilities | | | | | 224,210 | | | | | | 207,992 | | |
Total long-term obligations, net of current portion | | | | | 8,660,730 | | | | | | 10,731,259 | | |
Total liabilities | | | | | 14,461,861 | | | | | | 15,321,181 | | |
Commitments and Contingencies (Note 9) | | | | | | | | | | | | | |
Stockholder’s Equity (Deficit): | | | | | | | | | | | | | |
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | 1,443,022 | | | | | | 1,432,736 | | |
Accumulated other comprehensive income (loss) | | | | | (771) | | | | | | (449) | | |
Accumulated earnings (deficit) | | | | | (11,747,776) | | | | | | (12,366,909) | | |
Total stockholder’s equity (deficit) | | | | | (10,305,525) | | | | | | (10,934,622) | | |
Total liabilities and stockholder’s equity (deficit) | | | | $ | 4,156,336 | | | | | $ | 4,386,559 | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Earnings (Deficit) | | | Total | | |||||||||||||||
Balance, December 31, 2019 | | | | $ | — | | | | | $ | 1,432,736 | | | | | $ | (449) | | | | | $ | (12,366,909) | | | | | $ | (10,934,622) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 6,953 | | | | | | — | | | | | | — | | | | | | 6,953 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | | | | | — | | | | | | — | | | | | | (11) | | | | | | — | | | | | | (11) | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | (352) | | | | | | — | | | | | | (352) | | |
Net income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | 244,153 | | | | | | 244,153 | | |
Balance, March 31, 2020 | | | | $ | — | | | | | $ | 1,439,689 | | | | | $ | (812) | | | | | $ | (12,122,756) | | | | | $ | (10,683,879) | | |
Balance, December 31, 2020 | | | | $ | — | | | | | $ | 1,463,407 | | | | | $ | (805) | | | | | $ | (10,782,607) | | | | | $ | (9,320,005) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 7,676 | | | | | | — | | | | | | — | | | | | | 7,676 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | | | | | — | | | | | | — | | | | | | (2) | | | | | | — | | | | | | (2) | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | (195) | | | | | | — | | | | | | (195) | | |
Net income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | 424,527 | | | | | | 424,527 | | |
Balance, March 31, 2021 | | | | $ | — | | | | | $ | 1,471,083 | | | | | $ | (1,002) | | | | | $ | (10,358,080) | | | | | $ | (8,887,999) | | |
| | | For the Three Months Ended June 30, | | | For the Six Months Ended June 30, | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | 2020 | | | 2019 | | ||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | |
Subscriber-related revenue | | | | $ | 3,117,334 | | | | | $ | 3,117,066 | | | | | $ | 6,248,234 | | | | | $ | 6,215,002 | | |
Equipment sales and other revenue | | | | | 31,197 | | | | | | 49,533 | | | | | | 68,079 | | | | | | 89,597 | | |
Total revenue | | | | | 3,148,531 | | | | | | 3,166,599 | | | | | | 6,316,313 | | | | | | 6,304,599 | | |
Costs and Expenses (exclusive of depreciation shown separately below – Note 6): | | | | | | | | | | | | | | | | | | | | | | | | | |
Subscriber-related expenses | | | | | 1,863,895 | | | | | | 1,974,439 | | | | | | 3,797,718 | | | | | | 3,950,875 | | |
Satellite and transmission expenses | | | | | 117,912 | | | | | | 144,983 | | | | | | 239,973 | | | | | | 299,880 | | |
Cost of sales – equipment and other | | | | | 23,660 | | | | | | 49,603 | | | | | | 54,474 | | | | | | 89,944 | | |
Subscriber acquisition costs: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales – subscriber promotion subsidies | | | | | 1,159 | | | | | | 3,007 | | | | | | 10,048 | | | | | | 9,524 | | |
Other subscriber acquisition costs | | | | | 109,055 | | | | | | 108,289 | | | | | | 222,957 | | | | | | 188,764 | | |
Subscriber acquisition advertising | | | | | 89,510 | | | | | | 126,782 | | | | | | 220,592 | | | | | | 233,689 | | |
Total subscriber acquisition costs | | | | | 199,724 | | | | | | 238,078 | | | | | | 453,597 | | | | | | 431,977 | | |
General and administrative expenses | | | | | 156,574 | | | | | | 187,930 | | | | | | 341,498 | | | | | | 374,507 | | |
Depreciation and amortization (Note 6) | | | | | 122,869 | | | | | | 135,600 | | | | | | 257,954 | | | | | | 290,715 | | |
Total costs and expenses | | | | | 2,484,634 | | | | | | 2,730,633 | | | | | | 5,145,214 | | | | | | 5,437,898 | | |
Operating income (loss) | | | | | 663,897 | | | | | | 435,966 | | | | | | 1,171,099 | | | | | | 866,701 | | |
Other Income (Expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | | 1,112 | | | | | | 5,593 | | | | | | 1,962 | | | | | | 8,528 | | |
Interest expense, net of amounts capitalized | | | | | (164,047) | | | | | | (194,857) | | | | | | (346,387) | | | | | | (390,502) | | |
Other, net | | | | | (152) | | | | | | 3,131 | | | | | | 793 | | | | | | 4,564 | | |
Total other income (expense) | | | | | (163,087) | | | | | | (186,133) | | | | | | (343,632) | | | | | | (377,410) | | |
Income (loss) before income taxes | | | | | 500,810 | | | | | | 249,833 | | | | | | 827,467 | | | | | | 489,291 | | |
Income tax (provision) benefit, net | | | | | (125,830) | | | | | | (64,465) | | | | | | (208,334) | | | | | | (126,287) | | |
Net income (loss) | | | | | 374,980 | | | | | | 185,368 | | | | | | 619,133 | | | | | | 363,004 | | |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | (124) | | |
Net income (loss) attributable to DISH DBS | | | | $ | 374,980 | | | | | $ | 185,368 | | | | | $ | 619,133 | | | | | $ | 363,128 | | |
Comprehensive Income (Loss): | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 374,980 | | | | | $ | 185,368 | | | | | $ | 619,133 | | | | | $ | 363,004 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | 30 | | | | | | 138 | | | | | | (322) | | | | | | 185 | | |
Unrealized holding gains (losses) on available-for- sale debt securities | | | | | 11 | | | | | | 102 | | | | | | — | | | | | | 254 | | |
Deferred income tax (expense) benefit, net | | | | | — | | | | | | (27) | | | | | | — | | | | | | (65) | | |
Total other comprehensive income (loss), net of tax | | | | | 41 | | | | | | 213 | | | | | | (322) | | | | | | 374 | | |
Comprehensive income (loss) | | | | | 375,021 | | | | | | 185,581 | | | | | | 618,811 | | | | | | 363,378 | | |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | (124) | | |
Comprehensive income (loss) attributable to DISH DBS | | | | $ | 375,021 | | | | | $ | 185,581 | | | | | $ | 618,811 | | | | | $ | 363,502 | | |
| | | For the Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash Flows From Operating Activities: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 424,527 | | | | | $ | 244,153 | | |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 115,242 | | | | | | 135,085 | | |
Realized and unrealized losses (gains) on investments | | | | | 2,600 | | | | | | — | | |
Non-cash, stock-based compensation | | | | | 7,676 | | | | | | 6,953 | | |
Deferred tax expense (benefit) | | | | | (14,548) | | | | | | (13,519) | | |
Allowance for credit losses | | | | | (8,940) | | | | | | 19,526 | | |
Other, net | | | | | 3,719 | | | | | | 4,804 | | |
Changes in current assets and current liabilities, net | | | | | 32,499 | | | | | | 137,511 | | |
Net cash flows from operating activities | | | | | 562,775 | | | | | | 534,513 | | |
Cash Flows From Investing Activities: | | | | | | | | | | | | | |
(Purchases) Sales and maturities of marketable investment securities, net | | | | | 83,596 | | | | | | (60,543) | | |
Purchases of property and equipment | | | | | (49,802) | | | | | | (75,421) | | |
Other, net | | | | | 2,200 | | | | | | 2,017 | | |
Net cash flows from investing activities | | | | | 35,994 | | | | | | (133,947) | | |
Cash Flows From Financing Activities: | | | | | | | | | | | | | |
Repurchases of senior notes | | | | | (205,354) | | | | | | — | | |
Early debt extinguishment | | | | | (2,517) | | | | | | — | | |
Advances to/from affiliates | | | | | — | | | | | | (82,415) | | |
Repayment of long-term debt and finance lease obligations | | | | | (13,251) | | | | | | (11,452) | | |
Net cash flows from financing activities | | | | | (221,122) | | | | | | (93,867) | | |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | | | | | 377,647 | | | | | | 306,699 | | |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4) | | | | | 1,296,732 | | | | | | 78,103 | | |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4) | | | | $ | 1,674,379 | | | | | $ | 384,802 | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Earnings (Deficit) | | | Noncontrolling Interests | | | Total | | ||||||||||||||||||
Balance, December 31, 2018 | | | | $ | — | | | | | $ | 1,152,369 | | | | | $ | (376) | | | | | $ | (13,194,440) | | | | | $ | 287 | | | | | $ | (12,042,160) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 11,003 | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,003 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | | | | | — | | | | | | — | | | | | | 152 | | | | | | — | | | | | | — | | | | | | 152 | | |
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | | | | | — | | | | | | — | | | | | | (38) | | | | | | — | | | | | | — | | | | | | (38) | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | 47 | | | | | | — | | | | | | — | | | | | | 47 | | |
Net income (loss) attributable to noncontrolling interests | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (124) | | | | | | (124) | | |
Net income (loss) attributable to DISH DBS | | | | | — | | | | | | — | | | | | | — | | | | | | 177,760 | | | | | | — | | | | | | 177,760 | | |
Balance, March 31, 2019 | | | | $ | — | | | | | $ | 1,163,372 | | | | | $ | (215) | | | | | $ | (13,016,680) | | | | | $ | 163 | | | | | $ | (11,853,360) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 11,528 | | | | | | — | | | | | | — | | | | | | — | | | | | | 11,528 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | | | | | — | | | | | | — | | | | | | 102 | | | | | | — | | | | | | — | | | | | | 102 | | |
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | | | | | — | | | | | | — | | | | | | (27) | | | | | | — | | | | | | — | | | | | | (27) | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | 138 | | | | | | — | | | | | | — | | | | | | 138 | | |
Satellite and Spectrum Transaction, net of deferred taxes | | | | | — | | | | | | 267,437 | | | | | | — | | | | | | — | | | | | | (163) | | | | | | 267,274 | | |
Net income (loss) attributable to DISH DBS | | | | | — | | | | | | — | | | | | | — | | | | | | 185,368 | | | | | | — | | | | | | 185,368 | | |
Balance, June 30, 2019 | | | | $ | — | | | | | $ | 1,442,337 | | | | | $ | (2) | | | | | $ | (12,831,312) | | | | | $ | — | | | | | $ | (11,388,977) | | |
Balance, December 31, 2019 | | | | $ | — | | | | | $ | 1,432,736 | | | | | $ | (449) | | | | | $ | (12,366,909) | | | | | $ | — | | | | | $ | (10,934,622) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 6,953 | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,953 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | | | | | — | | | | | | — | | | | | | (11) | | | | | | — | | | | | | — | | | | | | (11) | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | (352) | | | | | | — | | | �� | | | — | | | | | | (352) | | |
Net income (loss) attributable to DISH DBS | | | | | — | | | | | | — | | | | | | — | | | | | | 244,153 | | | | | | — | | | | | | 244,153 | | |
Balance, March 31, 2020 | | | | $ | — | | | | | $ | 1,439,689 | | | | | $ | (812) | | | | | $ | (12,122,756) | | | | | $ | — | | | | | $ | (10,683,879) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 3,333 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,333 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | | | | | — | | | | | | — | | | | | | 11 | | | | | | — | | | | | | — | | | | | | 11 | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | 30 | | | | | | — | | | | | | — | | | | | | 30 | | |
Net income (loss) attributable to DISH DBS | | | | | — | | | | | | — | | | | | | — | | | | | | 374,980 | | | | | | — | | | | | | 374,980 | | |
Balance, June 30, 2020 | | | | $ | — | | | | | $ | 1,443,022 | | | | | $ | (771) | | | | | $ | (11,747,776) | | | | | $ | — | | | | | $ | (10,305,525) | | |
|
| | | For the Six Months Ended June 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Cash Flows From Operating Activities: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 619,133 | | | | | $ | 363,004 | | |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 257,954 | | | | | | 290,715 | | |
Realized and unrealized losses (gains) on investments | | | | | — | | | | | | (3,160) | | |
Non-cash, stock-based compensation | | | | | 10,286 | | | | | | 22,531 | | |
Deferred tax expense (benefit) | | | | | 19,576 | | | | | | (39,649) | | |
Allowance for credit losses and allowance for doubtful accounts, respectively | | | | | 21,908 | | | | | | 1,119 | | |
Other, net | | | | | 25,554 | | | | | | (30,509) | | |
Changes in current assets and current liabilities, net | | | | | 405,709 | | | | | | 160,594 | | |
Net cash flows from operating activities | | | | | 1,360,120 | | | | | | 764,645 | | |
Cash Flows From Investing Activities: | | | | | | | | | | | | | |
(Purchases) Sales and maturities of marketable investment securities, net | | | | | (31) | | | | | | (96,031) | | |
Purchases of property and equipment | | | | | (148,256) | | | | | | (183,776) | | |
Other, net | | | | | 4,454 | | | | | | 17,432 | | |
Net cash flows from investing activities | | | | | (143,833) | | | | | | (262,375) | | |
Cash Flows From Financing Activities: | | | | | | | | | | | | | |
Redemption and repurchases of senior notes | | | | | (1,100,000) | | | | | | (22,365) | | |
Advances to/from affiliates | | | | | (82,415) | | | | | | — | | |
Repayment of long-term debt and finance lease obligations | | | | | (23,807) | | | | | | (10,860) | | |
Other, net | | | | | — | | | | | | (400) | | |
Net cash flows from financing activities | | | | | (1,206,222) | | | | | | (33,625) | | |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | | | | | 10,065 | | | | | | 468,645 | | |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4) | | | | | 78,103 | | | | | | 130,076 | | |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4) | | | | $ | 88,168 | | | | | $ | 598,721 | | |
| | | For the Six Months Ended June 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
Cash paid for interest | | | | $ | 329,923 | | | | | $ | 382,391 | | |
Cash received for interest | | | | | 1,962 | | | | | | 8,528 | | |
Cash paid for income taxes | | | | | 3,205 | | | | | | 8,845 | | |
Cash paid for income taxes to DISH Network | | | | | 176,964 | | | | | | 152,526 | | |
Capitalized interest | | | | | — | | | | | | 440 | | |
Reclassification of a receivable from noncurrent to current | | | | | — | | | | | | 138,210 | | |
| | | As of | | |||||||||
| | | June 30, 2020 | | | December 31, 2019 | | ||||||
| | | (In thousands) | | |||||||||
Marketable investment securities: | | | | | | | | | | | | | |
Current marketable investment securities | | | | $ | 31 | | | | | $ | — | | |
Restricted marketable investment securities(1) | | | | | — | | | | | | 390 | | |
Total marketable investment securities | | | | | 31 | | | | | | 390 | | |
Restricted cash and cash equivalents(1) | | | | | 61,349 | | | | | | 60,677 | | |
Other investment securities: | | | | | | | | | | | | | |
Other investment securities | | | | | 96,886 | | | | | | 106,874 | | |
Total other investment securities | | | | | 96,886 | | | | | | 106,874 | | |
|
| | | As of | | |||||||||
| | | June 30, 2020 | | | December 31, 2019 | | ||||||
| | | (In thousands) | | |||||||||
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | | | | $ | 158,266 | | | | | $ | 167,941 | | |
|
| | | As of | | |||||||||||||||||||||||||||||||||||||||||||||
| | | June 30, 2020 | | | December 31, 2019 | | ||||||||||||||||||||||||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||||||||||||||
| | | (In thousands) | | |||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents (including restricted) | | | | $ | 63,344 | | | | | $ | 62,740 | | | | | $ | 604 | | | | | $ | — | | | | | $ | 60,677 | | | | | $ | 60,677 | | | | | $ | — | | | | | $ | — | | |
Debt securities (including restricted): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Treasury and agency securities | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 390 | | | | | $ | 390 | | | | | $ | — | | | | | $ | — | | |
Commercial paper | | | | | 31 | | | | | | — | | | | | | 31 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Corporate securities | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 31 | | | | | $ | — | | | | | $ | 31 | | | | | $ | — | | | | | $ | 390 | | | | | $ | 390 | | | | | $ | — | | | | | $ | — | | |
| | | For the Three Months Ended June 30, | | | For the Six Months Ended June 30, | | ||||||||||||||||||
Other, net: | | | 2020 | | | 2019 | | | 2020 | | | 2019 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Marketable investment securities – realized and unrealized gains (losses) | | | | $ | — | | | | | $ | 829 | | | | | $ | — | | | | | $ | 3,599 | | |
Costs related to early redemption of debt | | | | | — | | | | | | — | | | | | | — | | | | | | (439) | | |
Equity in earnings of affiliates | | | | | (399) | | | | | | 2,297 | | | | | | (121) | | | | | | 1,353 | | |
Other | | | | | 247 | | | | | | 5 | | | | | | 914 | | | | | | 51 | | |
Total | | | | $ | (152) | | | | | $ | 3,131 | | | | | $ | 793 | | | | | $ | 4,564 | | |
|
| | | As of | | |||||||||
| | | June 30, 2020 | | | December 31, 2019 | | ||||||
| | | (In thousands) | | |||||||||
Finished goods | | | | $ | 249,605 | | | ��� | | $ | 254,240 | | |
Work-in-process and service repairs | | | | | 34,245 | | | | | | 34,120 | | |
Raw materials | | | | | 17,558 | | | | | | 33,623 | | |
Total inventory | | | | $ | 301,408 | | | | | $ | 321,983 | | |
| | | Depreciable Life (In Years) | | | As of | | |||||||||
| | | June 30, 2020 | | | December 31, 2019 | | |||||||||
| | | | | | (In thousands) | | |||||||||
Equipment leased to customers | | | 2 – 5 | | | | $ | 1,779,445 | | | | | $ | 1,837,503 | | |
EchoStar XV | | | 15 | | | | | 277,658 | | | | | | 277,658 | | |
EchoStar XVIII | | | 15 | | | | | 411,255 | | | | | | 411,255 | | |
Satellites acquired under finance lease agreements | | | 15 | | | | | 398,107 | | | | | | 398,107 | | |
Furniture, fixtures, equipment and other | | | 2 – 20 | | | | | 1,934,783 | | | | | | 1,894,629 | | |
Buildings and improvements | | | 5 – 40 | | | | | 294,342 | | | | | | 289,421 | | |
Land | | | — | | | | | 13,186 | | | | | | 13,186 | | |
Construction in progress | | | — | | | | | 62,862 | | | | | | 70,081 | | |
Total property and equipment | | | | | | | | 5,171,638 | | | | | | 5,191,840 | | |
Accumulated depreciation | | | | | | | | (3,509,710) | | | | | | (3,440,267) | | |
Property and equipment, net | | | | | | | $ | 1,661,928 | | | | | $ | 1,751,573 | | |
| | | For the Three Months Ended June 30, | | | For the Six Months Ended June 30, | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | 2020 | | | 2019 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Equipment leased to customers | | | | $ | 69,489 | | | | | $ | 86,453 | | | | | $ | 149,171 | | | | | $ | 194,589 | | |
Satellites | | | | | 23,796 | | | | | | 12,920 | | | | | | 47,593 | | | | | | 23,575 | | |
Buildings, furniture, fixtures, equipment and other | | | | | 29,584 | | | | | | 36,227 | | | | | | 61,190 | | | | | | 72,551 | | |
Total depreciation and amortization | | | | $ | 122,869 | | | | | $ | 135,600 | | | | | $ | 257,954 | | | | | $ | 290,715 | | |
| | | For the Three Months Ended June 30, | | | For the Six Months Ended June 30, | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | 2020 | | | 2019 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Operating lease cost | | | | $ | 61,808 | | | | | $ | 81,762 | | | | | $ | 123,523 | | | | | $ | 162,048 | | |
Short-term lease cost(1) | | | | | 3,733 | | | | | | 12,141 | | | | | | 6,400 | | | | | | 31,426 | | |
Finance lease cost: | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization of right-of-use assets | | | | | 12,300 | | | | | | 3,805 | | | | | | 24,748 | | | | | | 9,913 | | |
Interest on lease liabilities | | | | | 4,534 | | | | | | 1,099 | | | | | | 9,332 | | | | | | 2,280 | | |
Total finance lease cost | | | | | 16,834 | | | | | | 4,904 | | | | | | 34,080 | | | | | | 12,193 | | |
Total lease costs | | | | $ | 82,375 | | | | | $ | 98,807 | | | | | $ | 164,003 | | | | | $ | 205,667 | | |
| | | For the Six Months Ended June 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | | | | | | |
Operating cash flows from operating leases | | | | $ | 123,811 | | | | | $ | 164,159 | | |
Operating cash flows from finance leases | | | | $ | 9,332 | | | | | $ | 2,295 | | |
Financing cash flows from finance leases | | | | $ | 23,227 | | | | | $ | 10,454 | | |
Right-of-use assets obtained in exchange for lease obligations: | | | | | | | | | | | | | |
Operating leases | | | | $ | 17,967 | | | | | $ | 61,872 | | |
Finance leases | | | | $ | — | | | | | $ | — | | |
Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 | | | | | | | | | | $ | 730,180 | | |
| | | As of | | |||||||||
| | | June 30, 2020 | | | December 31, 2019 | | ||||||
| | | (In thousands) | | |||||||||
Operating Leases: | | | | | | | | | | | | | |
Operating lease assets | | | | $ | 471,987 | | | | | $ | 553,576 | | |
Other current liabilities | | | | $ | 204,138 | | | | | $ | 202,972 | | |
Operating lease liabilities | | | | | 267,154 | | | | | | 350,155 | | |
Total operating lease liabilities | | | | $ | 471,292 | | | | | $ | 553,127 | | |
Finance Leases: | | | | | | | | | | | | | |
Property and equipment, gross | | | | $ | 398,875 | | | | | $ | 399,764 | | |
Accumulated depreciation | | | | | (226,325) | | | | | | (201,873) | | |
Property and equipment, net | | | | $ | 172,550 | | | | | $ | 197,891 | | |
Other current liabilities | | | | $ | 50,860 | | | | | $ | 48,678 | | |
Other long-term liabilities | | | | | 137,949 | | | | | | 163,939 | | |
Total finance lease liabilities | | | | $ | 188,809 | | | | | $ | 212,617 | | |
Weighted Average Remaining Lease Term: | | | | | | | | | | | | | |
Operating leases | | | 3.1 years | | | 3.4 years | | ||||||
Finance leases | | | 3.8 years | | | 4.2 years | | ||||||
Weighted Average Discount Rate: | | | | | | | | | | | | | |
Operating leases | | | | | 9.0% | | | | | | 9.1% | | |
Finance leases | | | | | 9.5% | | | | | | 9.5% | | |
| | | Maturities of Lease Liabilities | | |||||||||||||||
For the Years Ending December 31, | | | Operating Leases | | | Finance Leases | | | Total | | |||||||||
| | | (In thousands) | | |||||||||||||||
2020 (remaining six months) | | | | $ | 121,315 | | | | | $ | 33,139 | | | | | $ | 154,454 | | |
2021 | | | | | 205,137 | | | | | | 66,279 | | | | | | 271,416 | | |
2022 | | | | | 132,452 | | | | | | 50,226 | | | | | | 182,678 | | |
2023 | | | | | 27,439 | | | | | | 42,862 | | | | | | 70,301 | | |
2024 | | | | | 11,376 | | | | | | 32,147 | | | | | | 43,523 | | |
Thereafter | | | | | 42,414 | | | | | | — | | | | | | 42,414 | | |
Total lease payments | | | | | 540,133 | | | | | | 224,653 | | | | | | 764,786 | | |
Less: Imputed interest | | | | | (68,841) | | | | | | (35,844) | | | | | | (104,685) | | |
Total | | | | | 471,292 | | | | | | 188,809 | | | | | | 660,101 | | |
Less: Current portion | | | | | (204,138) | | | | | | (50,860) | | | | | | (254,998) | | |
Long-term portion of lease obligations | | | | $ | 267,154 | | | | | $ | 137,949 | | | | | $ | 405,103 | | |
|
| | | As of | | |||||||||||||||||||||
| | | June 30, 2020 | | | December 31, 2019 | | ||||||||||||||||||
| | | Carrying Amount | | | Fair Value | | | Carrying Amount | | | Fair Value | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
5 1∕8% Senior Notes due 2020(1) | | | | $ | — | | | | | $ | — | | | | | $ | 1,100,000 | | | | | $ | 1,110,208 | | |
6 3∕4% Senior Notes due 2021(2) | | | | | 2,000,000 | | | | | | 2,045,100 | | | | | | 2,000,000 | | | | | | 2,109,420 | | |
5 7∕8% Senior Notes due 2022 | | | | | 2,000,000 | | | | | | 2,043,040 | | | | | | 2,000,000 | | | | | | 2,129,580 | | |
5% Senior Notes due 2023 | | | | | 1,500,000 | | | | | | 1,495,545 | | | | | | 1,500,000 | | | | | | 1,543,770 | | |
5 7∕8% Senior Notes due 2024 | | | | | 2,000,000 | | | | | | 2,000,340 | | | | | | 2,000,000 | | | | | | 2,049,080 | | |
7 3∕4% Senior Notes due 2026 | | | | | 2,000,000 | | | | | | 2,130,880 | | | | | | 2,000,000 | | | | | | 2,128,900 | | |
Other notes payable | | | | | 25,996 | | | | | | 25,996 | | | | | | 25,996 | | | | | | 25,996 | | |
Subtotal | | | | | 9,525,996 | | | | | $ | 9,740,901 | | | | | | 10,625,996 | | | | | $ | 11,096,954 | | |
Unamortized deferred financing costs and debt discounts, net | | | | | (13,581) | | | | | | | | | | | | (16,250) | | | | | | | | |
Finance lease obligations(3) | | | | | 188,809 | | | | | | | | | | | | 212,617 | | | | | | | | |
Total long-term debt and finance lease obligations (including current portion) | | | | $ | 9,701,224 | | | | | | | | | | | $ | 10,822,363 | | | | | | | | |
| | | For the Years Ended December 31, | | |||||||||||||||
Revenue: | | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | (In thousands) | | |||||||||||||||
United States | | | | $ | 12,692,940 | | | | | $ | 12,581,855 | | | | | $ | 13,319,091 | | |
Canada and Mexico | | | | | 34,689 | | | | | | 41,038 | | | | | | 43,048 | | |
Total revenue | | | | $ | 12,727,629 | | | | | $ | 12,622,893 | | | | | $ | 13,362,139 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
Category: | | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | | | | | | | (In thousands) | | | | | | | | |||
Pay-TV video and related revenue | | | | $ | 12,576,470 | | | | | $ | 12,436,637 | | | | | $ | 13,197,994 | | |
Equipment sales and other revenue | | | | | 151,159 | | | | | | 186,256 | | | | | | 164,145 | | |
Total | | | | $ | 12,727,629 | | | | | $ | 12,622,893 | | | | | $ | 13,362,139 | | |
Allowance for credit losses | | | Balance at Beginning of Period | | | Current Period Provision for Expected Credit Losses | | | Write-offs Charged Against Allowance | | | Balance at End of Period | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
For the years ended: | | | | | | | | | | | | | | | | | | | | | | | | | |
December 31, 2020 | | | | $ | 19,280 | | | | | $ | 76,441 | | | | | $ | (52,488) | | | | | $ | 43,233 | | |
December 31, 2019 | | | | $ | 16,956 | | | | | $ | 69,866 | | | | | $ | (67,542) | | | | | $ | 19,280 | | |
December 31, 2018 | | | | $ | 15,056 | | | | | $ | 98,461 | | | | | $ | (96,561) | | | | | $ | 16,956 | | |
| | | Contract Liabilities | | |||
| | | (In thousands) | | |||
Balance as of December 31, 2019 | | | | $ | 609,054 | | |
Recognition of unearned revenue | | | | | (5,852,961) | | |
Deferral of revenue | | | | | 5,837,704 | | |
Balance as of December 31, 2020 | | | | $ | 593,797 | | |
| | | For the Three Months Ended | | |||||||||||||||||||||
| | | March 31 | | | June 30 | | | September 30 | | | December 31 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Year ended December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | | $ | 3,167,782 | | | | | $ | 3,148,531 | | | | | $ | 3,151,029 | | | | | $ | 3,260,287 | | |
Operating income (loss) | | | | | 507,202 | | | | | | 663,897 | | | | | | 768,656 | | | | | | 822,177 | | |
Net income (loss) attributable to DISH DBS | | | | | 244,153 | | | | | | 374,980 | | | | | | 449,873 | | | | | | 515,296 | | |
Year ended December 31, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | | $ | 3,138,000 | | | | | $ | 3,166,599 | | | | | $ | 3,122,282 | | | | | $ | 3,196,012 | | |
Operating income (loss) | | | | | 430,735 | | | | | | 435,966 | | | | | | 438,498 | | | | | | 515,999 | | |
Net income (loss) attributable to DISH DBS | | | | | 177,760 | | | | | | 185,368 | | | | | | 204,858 | | | | | | 259,545 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Purchases (including fees): | | | | | | | | | | | | | | | | | | | |
Purchases from NagraStar | | | | $ | 53,902 | | | | | $ | 56,284 | | | | | $ | 72,162 | | |
| | | As of December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
Amounts Payable and Commitments: | | | | | | | | | | | | | |
Amounts payable to NagraStar | | | | $ | 9,038 | | | | | $ | 9,630 | | |
Commitments to NagraStar | | | | $ | 3,260 | | | | | $ | 4,893 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Sales: | | | | | | | | | | | | | | | | | | | |
Digital receivers and related components | | | | $ | — | | | | | $ | — | | | | | $ | 1,227 | | |
Uplink services | | | | | 5,095 | | | | | | 5,620 | | | | | | 5,426 | | |
Total | | | | $ | 5,095 | | | | | $ | 5,620 | | | | | $ | 6,653 | | |
| | | As of December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
Amounts Receivable: | | | | | | | | | | | | | |
Amounts receivable from Dish Mexico | | | | $ | 3,343 | | | | | $ | 1,191 | | |
| | | Page | | |||
Unaudited Interim Consolidated Financial Statements: | | | | | | | |
| | | | F-69 | | | |
| | | | F-70 | | | |
| | | | F-71 | | | |
| | | | F-72 | | | |
| | | | F-73 | | |
| | | As of | | |||||||||
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 1,616,124 | | | | | $ | 1,238,409 | | |
Marketable investment securities | | | | | 48,995 | | | | | | 132,593 | | |
Trade accounts receivable, net of allowance for credit losses of $34,293 and $43,233, respectively | | | | | 581,770 | | | | | | 626,375 | | |
Inventory | | | | | 248,548 | | | | | | 262,297 | | |
Other current assets | | | | | 214,569 | | | | | | 272,955 | | |
Total current assets | | | | | 2,710,006 | | | | | | 2,532,629 | | |
Noncurrent Assets: | | | | | | | | | | | | | |
Restricted cash, cash equivalents and marketable investment securities | | | | | 58,255 | | | | | | 58,323 | | |
Property and equipment, net | | | | | 1,494,019 | | | | | | 1,564,704 | | |
FCC authorizations | | | | | 611,794 | | | | | | 611,794 | | |
Other investment securities | | | | | 98,050 | | | | | | 97,306 | | |
Operating lease assets | | | | | 335,609 | | | | | | 380,968 | | |
Other noncurrent assets, net | | | | | 209,234 | | | | | | 222,311 | | |
Total noncurrent assets | | | | | 2,806,961 | | | | | | 2,935,406 | | |
Total assets | | | | $ | 5,516,967 | | | | | $ | 5,468,035 | | |
Liabilities and Stockholder’s Equity (Deficit) | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Trade accounts payable | | | | $ | 378,460 | | | | | $ | 315,661 | | |
Deferred revenue and other | | | | | 632,560 | | | | | | 667,226 | | |
Accrued programming | | | | | 1,311,223 | | | | | | 1,388,407 | | |
Accrued interest | | | | | 169,903 | | | | | | 216,459 | | |
Other accrued expenses | | | | | 607,081 | | | | | | 625,342 | | |
Current portion of long-term debt and finance lease obligations | | | | | 1,847,459 | | | | | | 2,052,374 | | |
Total current liabilities | | | | | 4,946,686 | | | | | | 5,265,469 | | |
Long-Term Obligations, Net of Current Portion: | | | | | | | | | | | | | |
Long-term debt and finance lease obligations, net of current portion | | | | | 8,606,800 | | | | | | 8,619,116 | | |
Deferred tax liabilities | | | | | 500,380 | | | | | | 514,928 | | |
Operating lease liabilities | | | | | 165,514 | | | | | | 192,624 | | |
Long-term deferred revenue and other long-term liabilities | | | | | 185,586 | | | | | | 195,903 | | |
Total long-term obligations, net of current portion | | | | | 9,458,280 | | | | | | 9,522,571 | | |
Total liabilities | | | | | 14,404,966 | | | | | | 14,788,040 | | |
Commitments and Contingencies (Note 9) | | | | | | | | | | | | | |
Stockholder’s Equity (Deficit): | | | | | | | | | | | | | |
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | 1,471,083 | | | | | | 1,463,407 | | |
Accumulated other comprehensive income (loss) | | | | | (1,002) | | | | | | (805) | | |
Accumulated earnings (deficit) | | | | | (10,358,080) | | | | | | (10,782,607) | | |
Total stockholder’s equity (deficit) | | | | | (8,887,999) | | | | | | (9,320,005) | | |
Total liabilities and stockholder’s equity (deficit) | | | | $ | 5,516,967 | | | | | $ | 5,468,035 | | |
| | | For the Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenue: | | | | | | | | | | | | | |
Service revenue | | | | $ | 3,137,387 | | | | | $ | 3,130,900 | | |
Equipment sales and other revenue | | | | | 25,532 | | | | | | 36,882 | | |
Total revenue | | | | | 3,162,919 | | | | | | 3,167,782 | | |
Costs and Expenses (exclusive of depreciation shown separately below – Note 6): | | | | | | | | | | | | | |
Cost of services | | | | | 1,958,699 | | | | | | 2,072,432 | | |
Cost of sales – equipment and other | | | | | 16,275 | | | | | | 30,814 | | |
Selling, general and administrative expenses | | | | | 333,074 | | | | | | 422,249 | | |
Depreciation and amortization (Note 6) | | | | | 115,242 | | | | | | 135,085 | | |
Total costs and expenses | | | | | 2,423,290 | | | | | | 2,660,580 | | |
Operating income (loss) | | | | | 739,629 | | | | | | 507,202 | | |
Other Income (Expense): | | | | | | | | | | | | | |
Interest income | | | | | 806 | | | | | | 850 | | |
Interest expense, net of amounts capitalized | | | | | (173,976) | | | | | | (182,340) | | |
Other, net | | | | | (1,508) | | | | | | 945 | | |
Total other income (expense) | | | | | (174,678) | | | | | | (180,545) | | |
Income (loss) before income taxes | | | | | 564,951 | | | | | | 326,657 | | |
Income tax (provision) benefit, net | | | | | (140,424) | | | | | | (82,504) | | |
Net income (loss) | | | | $ | 424,527 | | | | | $ | 244,153 | | |
Comprehensive Income (Loss): | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 424,527 | | | | | $ | 244,153 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | (195) | | | | | | (352) | | |
Unrealized holding gains (losses) on available-for-sale debt securities | | | | | (2) | | | | | | (11) | | |
Total other comprehensive income (loss), net of tax | | | | | (197) | | | | | | (363) | | |
Comprehensive income (loss) | | | | $ | 424,330 | | | | | $ | 243,790 | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Earnings (Deficit) | | | Total | | |||||||||||||||
Balance, December 31, 2019 | | | | $ | — | | | | | $ | 1,432,736 | | | | | $ | (449) | | | | | $ | (12,366,909) | | | | | $ | (10,934,622) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 6,953 | | | | | | — | | | | | | — | | | | | | 6,953 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | | | | | — | | | | | | — | | | | | | (11) | | | | | | — | | | | | | (11) | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | (352) | | | | | | — | | | | | | (352) | | |
Net income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | 244,153 | | | | | | 244,153 | | |
Balance, March 31, 2020 | | | | $ | — | | | | | $ | 1,439,689 | | | | | $ | (812) | | | | | $ | (12,122,756) | | | | | $ | (10,683,879) | | |
Balance, December 31, 2020 | | | | $ | — | | | | | $ | 1,463,407 | | | | | $ | (805) | | | | | $ | (10,782,607) | | | | | $ | (9,320,005) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 7,676 | | | | | | — | | | | | | — | | | | | | 7,676 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | | | | | — | | | | | | — | | | | | | (2) | | | | | | — | | | | | | (2) | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | (195) | | | | | | — | | | | | | (195) | | |
Net income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | 424,527 | | | | | | 424,527 | | |
Balance, March 31, 2021 | | | | $ | — | | | | | $ | 1,471,083 | | | | | $ | (1,002) | | | | | $ | (10,358,080) | | | | | $ | (8,887,999) | | |
| | | For the Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash Flows From Operating Activities: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 424,527 | | | | | $ | 244,153 | | |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 115,242 | | | | | | 135,085 | | |
Realized and unrealized losses (gains) on investments | | | | | 2,600 | | | | | | — | | |
Non-cash, stock-based compensation | | | | | 7,676 | | | | | | 6,953 | | |
Deferred tax expense (benefit) | | | | | (14,548) | | | | | | (13,519) | | |
Allowance for credit losses | | | | | (8,940) | | | | | | 19,526 | | |
Other, net | | | | | 3,719 | | | | | | 4,804 | | |
Changes in current assets and current liabilities, net | | | | | 32,499 | | | | | | 137,511 | | |
Net cash flows from operating activities | | | | | 562,775 | | | | | | 534,513 | | |
Cash Flows From Investing Activities: | | | | | | | | | | | | | |
(Purchases) Sales and maturities of marketable investment securities, net | | | | | 83,596 | | | | | | (60,543) | | |
Purchases of property and equipment | | | | | (49,802) | | | | | | (75,421) | | |
Other, net | | | | | 2,200 | | | | | | 2,017 | | |
Net cash flows from investing activities | | | | | 35,994 | | | | | | (133,947) | | |
Cash Flows From Financing Activities: | | | | | | | | | | | | | |
Repurchases of senior notes | | | | | (205,354) | | | | | | — | | |
Early debt extinguishment | | | | | (2,517) | | | | | | — | | |
Advances to/from affiliates | | | | | — | | | | | | (82,415) | | |
Repayment of long-term debt and finance lease obligations | | | | | (13,251) | | | | | | (11,452) | | |
Net cash flows from financing activities | | | | | (221,122) | | | | | | (93,867) | | |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | | | | | 377,647 | | | | | | 306,699 | | |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4) | | | | | 1,296,732 | | | | | | 78,103 | | |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4) | | | | $ | 1,674,379 | | | | | $ | 384,802 | | |
| | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||
Revenue: | | 2020 | | 2019 | | 2020 | | 2019 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||||||||||||||||||||
United States | | | $ | 3,144,992 | | | | $ | 3,155,828 | | | | $ | 6,302,296 | | | | $ | 6,282,937 | | | | | $ | 12,692,940 | | | | $ | 12,581,855 | | | | $ | 13,319,091 | | | |||||||
Canada and Mexico | | | | 3,539 | | | | | 10,771 | | | | | 14,017 | | | | | 21,662 | | | | | | 34,689 | | | | | 41,038 | | | | | 43,048 | | | |||||||
Total revenue | | | $ | 3,148,531 | | | | $ | 3,166,599 | | | | $ | 6,316,313 | | | | $ | 6,304,599 | | | | | $ | 12,727,629 | | | | $ | 12,622,893 | | | | $ | 13,362,139 | | |
| | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | For the Years Ended December 31, | | ||||||||||||||||||||||||||||||||||||
Category: | | 2020 | | 2019 | | 2020 | | 2019 | | | 2020 | | 2019 | | 2018 | | ||||||||||||||||||||||||||||
| | (In thousands) | | | | | | | | (In thousands) | | | | | | | ||||||||||||||||||||||||||||
Pay-TV video and related revenue | | | $ | 3,117,334 | | | | $ | 3,117,066 | | | | $ | 6,248,234 | | | | $ | 6,215,002 | | | | | $ | 12,576,470 | | | | $ | 12,436,637 | | | | $ | 13,197,994 | | | |||||||
Equipment sales and other revenue | | | | 31,197 | | | | | 49,533 | | | | | 68,079 | | | | | 89,597 | | | | | | 151,159 | | | | | 186,256 | | | | | 164,145 | | | |||||||
Total | | | $ | 3,148,531 | | | | $ | 3,166,599 | | | | $ | 6,316,313 | | | | $ | 6,304,599 | | | | | $ | 12,727,629 | | | | $ | 12,622,893 | | | | $ | 13,362,139 | | |
Allowance for credit losses | | Balance at Beginning of Period | | Current Period Provision for Expected Credit Losses | | Write-offs Charged Against Allowance | | Balance at End of Period | | | Balance at Beginning of Period | | Current Period Provision for Expected Credit Losses | | Write-offs Charged Against Allowance | | Balance at End of Period | | ||||||||||||||||||||||||||||||||
| | (In thousands) | | | (In thousands) | | ||||||||||||||||||||||||||||||||||||||||||||
For the six months ended June 30, 2020 | | | $ | 19,280 | | | | $ | 51,808 | | | | $ | (29,900) | | | | $ | 41,188 | | | |||||||||||||||||||||||||||||
For the years ended: | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||
December 31, 2020 | | | $ | 19,280 | | | | $ | 76,441 | | | | $ | (52,488) | | | | $ | 43,233 | | | |||||||||||||||||||||||||||||
December 31, 2019 | | | $ | 16,956 | | | | $ | 69,866 | | | | $ | (67,542) | | | | $ | 19,280 | | | |||||||||||||||||||||||||||||
December 31, 2018 | | | $ | 15,056 | | | | $ | 98,461 | | | | $ | (96,561) | | | | $ | 16,956 | | |
| | Contract Liabilities | | | Contract Liabilities | | ||||||||
| | (In thousands) | | | (In thousands) | | ||||||||
Balance as of December 31, 2019 | | | $ | 609,054 | | | | | $ | 609,054 | | | ||
Recognition of unearned revenue | | | | (2,951,822) | | | | | | (5,852,961) | | | ||
Deferral of revenue | | | | 2,925,648 | | | | | | 5,837,704 | | | ||
Balance as of June 30, 2020 | | | $ | 582,880 | | | ||||||||
Balance as of December 31, 2020 | | | $ | 593,797 | | |
| | | For the Three Months Ended | | |||||||||||||||||||||
| | | March 31 | | | June 30 | | | September 30 | | | December 31 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Year ended December 31, 2020: | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | | $ | 3,167,782 | | | | | $ | 3,148,531 | | | | | $ | 3,151,029 | | | | | $ | 3,260,287 | | |
Operating income (loss) | | | | | 507,202 | | | | | | 663,897 | | | | | | 768,656 | | | | | | 822,177 | | |
Net income (loss) attributable to DISH DBS | | | | | 244,153 | | | | | | 374,980 | | | | | | 449,873 | | | | | | 515,296 | | |
Year ended December 31, 2019: | | | | | | | | | | | | | | | | | | | | | | | | | |
Total revenue | | | | $ | 3,138,000 | | | | | $ | 3,166,599 | | | | | $ | 3,122,282 | | | | | $ | 3,196,012 | | |
Operating income (loss) | | | | | 430,735 | | | | | | 435,966 | | | | | | 438,498 | | | | | | 515,999 | | |
Net income (loss) attributable to DISH DBS | | | | | 177,760 | | | | | | 185,368 | | | | | | 204,858 | | | | | | 259,545 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Purchases (including fees): | | | | | | | | | | | | | | | | | | | |
Purchases from NagraStar | | | | $ | 53,902 | | | | | $ | 56,284 | | | | | $ | 72,162 | | |
| | | As of December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
Amounts Payable and Commitments: | | | | | | | | | | | | | |
Amounts payable to NagraStar | | | | $ | 9,038 | | | | | $ | 9,630 | | |
Commitments to NagraStar | | | | $ | 3,260 | | | | | $ | 4,893 | | |
| | | For the Years Ended December 31, | | |||||||||||||||
| | | 2020 | | | 2019 | | | 2018 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Sales: | | | | | | | | | | | | | | | | | | | |
Digital receivers and related components | | | | $ | — | | | | | $ | — | | | | | $ | 1,227 | | |
Uplink services | | | | | 5,095 | | | | | | 5,620 | | | | | | 5,426 | | |
Total | | | | $ | 5,095 | | | | | $ | 5,620 | | | | | $ | 6,653 | | |
| | | As of December 31, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
| | | (In thousands) | | |||||||||
Amounts Receivable: | | | | | | | | | | | | | |
Amounts receivable from Dish Mexico | | | | $ | 3,343 | | | | | $ | 1,191 | | |
| | | Page | | |||
Unaudited Interim Consolidated Financial Statements: | | | | | | | |
| | | | F-69 | | | |
| | | | F-70 | | | |
| | | | F-71 | | | |
| | | | F-72 | | | |
| | | | F-73 | | |
| | | As of | | |||||||||
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 1,616,124 | | | | | $ | 1,238,409 | | |
Marketable investment securities | | | | | 48,995 | | | | | | 132,593 | | |
Trade accounts receivable, net of allowance for credit losses of $34,293 and $43,233, respectively | | | | | 581,770 | | | | | | 626,375 | | |
Inventory | | | | | 248,548 | | | | | | 262,297 | | |
Other current assets | | | | | 214,569 | | | | | | 272,955 | | |
Total current assets | | | | | 2,710,006 | | | | | | 2,532,629 | | |
Noncurrent Assets: | | | | | | | | | | | | | |
Restricted cash, cash equivalents and marketable investment securities | | | | | 58,255 | | | | | | 58,323 | | |
Property and equipment, net | | | | | 1,494,019 | | | | | | 1,564,704 | | |
FCC authorizations | | | | | 611,794 | | | | | | 611,794 | | |
Other investment securities | | | | | 98,050 | | | | | | 97,306 | | |
Operating lease assets | | | | | 335,609 | | | | | | 380,968 | | |
Other noncurrent assets, net | | | | | 209,234 | | | | | | 222,311 | | |
Total noncurrent assets | | | | | 2,806,961 | | | | | | 2,935,406 | | |
Total assets | | | | $ | 5,516,967 | | | | | $ | 5,468,035 | | |
Liabilities and Stockholder’s Equity (Deficit) | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | |
Trade accounts payable | | | | $ | 378,460 | | | | | $ | 315,661 | | |
Deferred revenue and other | | | | | 632,560 | | | | | | 667,226 | | |
Accrued programming | | | | | 1,311,223 | | | | | | 1,388,407 | | |
Accrued interest | | | | | 169,903 | | | | | | 216,459 | | |
Other accrued expenses | | | | | 607,081 | | | | | | 625,342 | | |
Current portion of long-term debt and finance lease obligations | | | | | 1,847,459 | | | | | | 2,052,374 | | |
Total current liabilities | | | | | 4,946,686 | | | | | | 5,265,469 | | |
Long-Term Obligations, Net of Current Portion: | | | | | | | | | | | | | |
Long-term debt and finance lease obligations, net of current portion | | | | | 8,606,800 | | | | | | 8,619,116 | | |
Deferred tax liabilities | | | | | 500,380 | | | | | | 514,928 | | |
Operating lease liabilities | | | | | 165,514 | | | | | | 192,624 | | |
Long-term deferred revenue and other long-term liabilities | | | | | 185,586 | | | | | | 195,903 | | |
Total long-term obligations, net of current portion | | | | | 9,458,280 | | | | | | 9,522,571 | | |
Total liabilities | | | | | 14,404,966 | | | | | | 14,788,040 | | |
Commitments and Contingencies (Note 9) | | | | | | | | | | | | | |
Stockholder’s Equity (Deficit): | | | | | | | | | | | | | |
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | 1,471,083 | | | | | | 1,463,407 | | |
Accumulated other comprehensive income (loss) | | | | | (1,002) | | | | | | (805) | | |
Accumulated earnings (deficit) | | | | | (10,358,080) | | | | | | (10,782,607) | | |
Total stockholder’s equity (deficit) | | | | | (8,887,999) | | | | | | (9,320,005) | | |
Total liabilities and stockholder’s equity (deficit) | | | | $ | 5,516,967 | | | | | $ | 5,468,035 | | |
| | | For the Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenue: | | | | | | | | | | | | | |
Service revenue | | | | $ | 3,137,387 | | | | | $ | 3,130,900 | | |
Equipment sales and other revenue | | | | | 25,532 | | | | | | 36,882 | | |
Total revenue | | | | | 3,162,919 | | | | | | 3,167,782 | | |
Costs and Expenses (exclusive of depreciation shown separately below – Note 6): | | | | | | | | | | | | | |
Cost of services | | | | | 1,958,699 | | | | | | 2,072,432 | | |
Cost of sales – equipment and other | | | | | 16,275 | | | | | | 30,814 | | |
Selling, general and administrative expenses | | | | | 333,074 | | | | | | 422,249 | | |
Depreciation and amortization (Note 6) | | | | | 115,242 | | | | | | 135,085 | | |
Total costs and expenses | | | | | 2,423,290 | | | | | | 2,660,580 | | |
Operating income (loss) | | | | | 739,629 | | | | | | 507,202 | | |
Other Income (Expense): | | | | | | | | | | | | | |
Interest income | | | | | 806 | | | | | | 850 | | |
Interest expense, net of amounts capitalized | | | | | (173,976) | | | | | | (182,340) | | |
Other, net | | | | | (1,508) | | | | | | 945 | | |
Total other income (expense) | | | | | (174,678) | | | | | | (180,545) | | |
Income (loss) before income taxes | | | | | 564,951 | | | | | | 326,657 | | |
Income tax (provision) benefit, net | | | | | (140,424) | | | | | | (82,504) | | |
Net income (loss) | | | | $ | 424,527 | | | | | $ | 244,153 | | |
Comprehensive Income (Loss): | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 424,527 | | | | | $ | 244,153 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | (195) | | | | | | (352) | | |
Unrealized holding gains (losses) on available-for-sale debt securities | | | | | (2) | | | | | | (11) | | |
Total other comprehensive income (loss), net of tax | | | | | (197) | | | | | | (363) | | |
Comprehensive income (loss) | | | | $ | 424,330 | | | | | $ | 243,790 | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Earnings (Deficit) | | | Total | | |||||||||||||||
Balance, December 31, 2019 | | | | $ | — | | | | | $ | 1,432,736 | | | | | $ | (449) | | | | | $ | (12,366,909) | | | | | $ | (10,934,622) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 6,953 | | | | | | — | | | | | | — | | | | | | 6,953 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | | | | | — | | | | | | — | | | | | | (11) | | | | | | — | | | | | | (11) | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | (352) | | | | | | — | | | | | | (352) | | |
Net income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | 244,153 | | | | | | 244,153 | | |
Balance, March 31, 2020 | | | | $ | — | | | | | $ | 1,439,689 | | | | | $ | (812) | | | | | $ | (12,122,756) | | | | | $ | (10,683,879) | | |
Balance, December 31, 2020 | | | | $ | — | | | | | $ | 1,463,407 | | | | | $ | (805) | | | | | $ | (10,782,607) | | | | | $ | (9,320,005) | | |
Non-cash, stock-based compensation | | | | | — | | | | | | 7,676 | | | | | | — | | | | | | — | | | | | | 7,676 | | |
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | | | | | — | | | | | | — | | | | | | (2) | | | | | | — | | | | | | (2) | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | (195) | | | | | | — | | | | | | (195) | | |
Net income (loss) | | | | | — | | | | | | — | | | | | | — | | | | | | 424,527 | | | | | | 424,527 | | |
Balance, March 31, 2021 | | | | $ | — | | | | | $ | 1,471,083 | | | | | $ | (1,002) | | | | | $ | (10,358,080) | | | | | $ | (8,887,999) | | |
| | | For the Three Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash Flows From Operating Activities: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 424,527 | | | | | $ | 244,153 | | |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 115,242 | | | | | | 135,085 | | |
Realized and unrealized losses (gains) on investments | | | | | 2,600 | | | | | | — | | |
Non-cash, stock-based compensation | | | | | 7,676 | | | | | | 6,953 | | |
Deferred tax expense (benefit) | | | | | (14,548) | | | | | | (13,519) | | |
Allowance for credit losses | | | | | (8,940) | | | | | | 19,526 | | |
Other, net | | | | | 3,719 | | | | | | 4,804 | | |
Changes in current assets and current liabilities, net | | | | | 32,499 | | | | | | 137,511 | | |
Net cash flows from operating activities | | | | | 562,775 | | | | | | 534,513 | | |
Cash Flows From Investing Activities: | | | | | | | | | | | | | |
(Purchases) Sales and maturities of marketable investment securities, net | | | | | 83,596 | | | | | | (60,543) | | |
Purchases of property and equipment | | | | | (49,802) | | | | | | (75,421) | | |
Other, net | | | | | 2,200 | | | | | | 2,017 | | |
Net cash flows from investing activities | | | | | 35,994 | | | | | | (133,947) | | |
Cash Flows From Financing Activities: | | | | | | | | | | | | | |
Repurchases of senior notes | | | | | (205,354) | | | | | | — | | |
Early debt extinguishment | | | | | (2,517) | | | | | | — | | |
Advances to/from affiliates | | | | | — | | | | | | (82,415) | | |
Repayment of long-term debt and finance lease obligations | | | | | (13,251) | | | | | | (11,452) | | |
Net cash flows from financing activities | | | | | (221,122) | | | | | | (93,867) | | |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | | | | | 377,647 | | | | | | 306,699 | | |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4) | | | | | 1,296,732 | | | | | | 78,103 | | |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4) | | | | $ | 1,674,379 | | | | | $ | 384,802 | | |
| | | For the Three Months Ended March 31, | | |||||||||
| 2021 | | | 2020 | | ||||||||
| (In thousands) | | |||||||||||
Cash paid for interest | | | | $ | 211,139 | | | | | $ | 174,647 | | |
Cash received for interest | | | | | 806 | | | | | | 850 | | |
Cash paid for income taxes | | | | | 404 | | | | | | 130 | | |
Cash paid for income taxes to DISH Network | | | | | 146,386 | | | | | | 90,617 | | |
| | | As of | | |||||||||
| March 31, 2021 | | | December 31, 2020 | | ||||||||
| (In thousands) | | |||||||||||
Marketable investment securities: | | | | | | | | | | | | | |
Current marketable investment securities | | | | $ | 48,995 | | | | | $ | 132,593 | | |
Restricted marketable investment securities(1) | | | | | — | | | | | | — | | |
Total marketable investment securities | | | | | 48,995 | | | | | | 132,593 | | |
Restricted cash and cash equivalents(1) | | | | | 58,255 | | | | | | 58,323 | | |
Other investment securities: | | | | | | | | | | | | | |
Other investment securities | | | | | 98,050 | | | | | | 97,306 | | |
Total other investment securities | | | | | 98,050 | | | | | | 97,306 | | |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | | | | $ | 205,300 | | | | | $ | 288,222 | | |
| | | As of | | |||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2021 | | | December 31, 2020 | | ||||||||||||||||||||||||||||||||||||||||||||
| Total | | | Level 1 | | | Level 2 | | | Level 3 | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||||||||||||||||
| (In thousands) | | |||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents (including restricted) | | | | $ | 1,653,660 | | | | | $ | 60,153 | | | | | $ | 1,593,507 | | | | | $ | — | | | | | $ | 1,278,971 | | | | | $ | 172,025 | | | | | $ | 1,106,946 | | | | | $ | — | | |
Debt securities (including restricted): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
U.S. Treasury and agency securities | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 22,476 | | | | | $ | 22,476 | | | | | $ | — | | | | | $ | — | | |
Commercial paper | | | | | 47,590 | | | | | | — | | | | | | 47,590 | | | | | | — | | | | | | 101,959 | | | | | | — | | | | | | 101,959 | | | | | | — | | |
Corporate securities | | | | | 877 | | | | | | — | | | | | | 877 | | | | | | — | | | | | | 8,068 | | | | | | — | | | | | | 8,068 | | | | | | — | | |
Other | | | | | 528 | | | | | | — | | | | | | 528 | | | | | | — | | | | | | 90 | | | | | | — | | | | | | 90 | | | | | | — | | |
Total | | | | $ | 48,995 | | | | | $ | — | | | | | $ | 48,995 | | | | | $ | — | | | | | $ | 132,593 | | | | | $ | 22,476 | | | | | $ | 110,117 | | | | | $ | — | | |
Other, net: | | | For the Three Months Ended March 31, | | |||||||||
| 2021 | | | 2020 | | ||||||||
| | | (In thousands) | | |||||||||
Costs related to early redemption of debt | | | | $ | (2,600) | | | | | $ | — | | |
Equity in earnings (losses) of affiliates | | | | | 903 | | | | | | 278 | | |
Other | | | | | 189 | | | | | | 667 | | |
Total | | | | $ | (1,508) | | | | | $ | 945 | | |
| | | As of | | |||||||||
| March 31, 2021 | | | December 31, 2020 | | ||||||||
| (In thousands) | | |||||||||||
Finished goods | | | | $ | 217,399 | | | | | $ | 226,866 | | |
Work-in-process and service repairs | | | | | 22,468 | | | | | | 25,206 | | |
Raw materials | | | | | 8,681 | | | | | | 10,225 | | |
Total inventory | | | | $ | 248,548 | | | | | $ | 262,297 | | |
| | | Depreciable Life (In Years) | | | As of | | |||||||||
| March 31, 2021 | | | December 31, 2020 | | |||||||||||
| | | | (In thousands) | | |||||||||||
Equipment leased to customers | | | 2 – 5 | | | | $ | 1,672,399 | | | | | $ | 1,719,778 | | |
EchoStar XV | | | 15 | | | | | 277,658 | | | | | | 277,658 | | |
EchoStar XVIII | | | 15 | | | | | 411,255 | | | | | | 411,255 | | |
Satellites acquired under finance lease agreements | | | 15 | | | | | 398,107 | | | | | | 398,107 | | |
Furniture, fixtures, equipment and other | | | 2 – 20 | | | | | 1,989,431 | | | | | | 1,969,107 | | |
Buildings and improvements | | | 5 – 40 | | | | | 300,246 | | | | | | 301,037 | | |
Land | | | — | | | | | 13,186 | | | | | | 13,186 | | |
Construction in progress | | | — | | | | | 42,579 | | | | | | 51,800 | | |
Total property and equipment | | | | | | | | 5,104,861 | | | | | | 5,141,928 | | |
Accumulated depreciation | | | | | | | | (3,610,842) | | | | | | (3,577,224) | | |
Property and equipment, net | | | | | | | $ | 1,494,019 | | | | | $ | 1,564,704 | | |
| | | For the Three Months Ended March 31, | | |||||||||
| 2021 | | | 2020 | | ||||||||
| (In thousands) | | |||||||||||
Equipment leased to customers | | | | $ | 64,262 | | | | | $ | 79,682 | | |
Satellites | | | | | 23,797 | | | | | | 23,797 | | |
Buildings, furniture, fixtures, equipment and other | | | | | 27,183 | | | | | | 31,606 | | |
Total depreciation and amortization | | | | $ | 115,242 | | | | | $ | 135,085 | | |
Satellites | | | Launch Date | | | Degree Orbital Location | | | Lease Termination Date | |
Owned: | | | | | | | | | | |
EchoStar XV | | | July 2010 | | | 61.5 | | | N/A | |
EchoStar XVIII | | | June 2016 | | | 61.5 | | | N/A | |
Leased from EchoStar(1): | | | | | | | | | | |
EchoStar IX | | | August 2003 | | | 121 | | | Month to month | |
Leased from DISH Network(2): | | | | | | | | | | |
EchoStar X | | | February 2006 | | | 110 | | | February 2022 | |
EchoStar XI | | | July 2008 | | | 110 | | | September 2021 | |
EchoStar XIV | | | March 2010 | | | 119 | | | February 2023 | |
EchoStar XVI | | | November 2012 | | | 61.5 | | | January 2023 | |
Nimiq 5 | | | September 2009 | | | 72.7 | | | September 2021 | |
QuetzSat-1 | | | September 2011 | | | 77 | | | November 2021 | |
Leased from Other Third Party: | | | | | | | | | | |
Anik F3 | | | April 2007 | | | 118.7 | | | April 2022 | |
Ciel II | | | December 2008 | | | 129 | | | January 2022 | |
| | | For the Three Months Ended March 31, | | |||||||||
| 2021 | | | 2020 | | ||||||||
| (In thousands) | | |||||||||||
Operating lease cost | | | | $ | 60,023 | | | | | $ | 61,715 | | |
Short-term lease cost(1) | | | | | 4,236 | | | | | | 2,667 | | |
Finance lease cost: | | | | | | | | | | | | | |
Amortization of right-of-use assets | | | | | 12,374 | | | | | | 12,448 | | |
Interest on lease liabilities | | | | | 3,716 | | | | | | 4,798 | | |
Total finance lease cost | | | | | 16,090 | | | | | | 17,246 | | |
Total lease costs | | | | $ | 80,349 | | | | | $ | 81,628 | | |
| | | For the Three Months Ended March 31, | | |||||||||
| 2021 | | | 2020 | | ||||||||
| (In thousands) | | |||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | | | | | | |
Operating cash flows from operating leases | | | | $ | 59,178 | | | | | $ | 61,808 | | |
Operating cash flows from finance leases | | | | $ | 3,652 | | | | | $ | 4,798 | | |
Financing cash flows from finance leases | | | | $ | 12,580 | | | | | $ | 11,466 | | |
Right-of-use assets obtained in exchange for lease obligations: | | | | | | | | | | | | | |
Operating leases | | | | $ | 7,417 | | | | | $ | 6,749 | | |
Finance leases | | | | $ | — | | | | | $ | — | | |
| | | As of | | |||||||||
| March 31, 2021 | | | December 31, 2020 | | ||||||||
| (In thousands) | | |||||||||||
Operating Leases: | | | | | | | | | | | | | |
Operating lease assets | | | | $ | 335,609 | | | | | $ | 380,968 | | |
Other current liabilities | | | | $ | 169,566 | | | | | $ | 186,967 | | |
Operating lease liabilities | | | | | 165,514 | | | | | | 192,624 | | |
Total operating lease liabilities | | | | $ | 335,080 | | | | | $ | 379,591 | | |
Finance Leases: | | | | | | | | | | | | | |
Property and equipment, gross | | | | $ | 398,875 | | | | | $ | 398,875 | | |
Accumulated depreciation | | | | | (263,447) | | | | | | (251,073) | | |
Property and equipment, net | | | | $ | 135,428 | | | | | $ | 147,802 | | |
Other current liabilities | | | | $ | 50,260 | | | | | $ | 49,820 | | |
Other long-term liabilities | | | | | 97,098 | | | | | | 110,789 | | |
Total finance lease liabilities | | | | $ | 147,358 | | | | | $ | 160,609 | | |
Weighted Average Remaining Lease Term: | | | | | | | | | | | | | |
Operating leases | | | 2.9 years | | | 2.9 years | | ||||||
Finance leases | | | 3.1 years | | | 3.3 years | | ||||||
Weighted Average Discount Rate: | | | | | | | | | | | | | |
Operating leases | | | | | 8.6% | | | | | | 8.7% | | |
Finance leases | | | | | 9.6% | | | | | | 9.6% | | |
For the Years Ending December 31, | | | Maturities of Lease Liabilities | | |||||||||||||||
| Operating Leases | | | Finance Leases | | | Total | | |||||||||||
| | | (In thousands) | | |||||||||||||||
2021 (remaining nine months) | | | | $ | 151,848 | | | | | $ | 45,696 | | | | | $ | 197,544 | | |
2022 | | | | | 138,299 | | | | | | 50,227 | | | | | | 188,526 | | |
2023 | | | | | 32,083 | | | | | | 42,862 | | | | | | 74,945 | | |
2024 | | | | | 13,436 | | | | | | 32,147 | | | | | | 45,583 | | |
2025 | | | | | 8,379 | | | | | | — | | | | | | 8,379 | | |
Thereafter | | | | | 35,487 | | | | | | — | | | | | | 35,487 | | |
Total lease payments | | | | | 379,532 | | | | | | 170,932 | | | | | | 550,464 | | |
Less: Imputed interest | | | | | (44,452) | | | | | | (23,574) | | | | | | (68,026) | | |
Total | | | | | 335,080 | | | | | | 147,358 | | | | | | 482,438 | | |
Less: Current portion | | | | | (169,566) | | | | | | (50,260) | | | | | | (219,826) | | |
Long-term portion of lease obligations | | | | $ | 165,514 | | | | | $ | 97,098 | | | | | $ | 262,612 | | |
| | | As of | | |||||||||||||||||||||
| March 31, 2021 | | | December 31, 2020 | | ||||||||||||||||||||
| Carrying Amount | | | Fair Value | | | Carrying Amount | | | Fair Value | | ||||||||||||||
| (In thousands) | | |||||||||||||||||||||||
6 3/4% Senior Notes due 2021(1) | | | | | 1,794,646 | | | | | | 1,811,480 | | | | | | 2,000,000 | | | | | | 2,047,260 | | |
5 7/8% Senior Notes due 2022 | | | | | 2,000,000 | | | | | | 2,094,220 | | | | | | 2,000,000 | | | | | | 2,095,820 | | |
5% Senior Notes due 2023 | | | | | 1,500,000 | | | | | | 1,560,705 | | | | | | 1,500,000 | | | | | | 1,566,300 | | |
5 7/8% Senior Notes due 2024 | | | | | 2,000,000 | | | | | | 2,101,980 | | | | | | 2,000,000 | | | | | | 2,099,580 | | |
7 3/4% Senior Notes due 2026 | | | | | 2,000,000 | | | | | | 2,203,100 | | | | | | 2,000,000 | | | | | | 2,236,520 | | |
7 3/8% Senior Notes due 2028 | | | | | 1,000,000 | | | | | | 1,052,940 | | | | | | 1,000,000 | | | | | | 1,070,130 | | |
Other notes payable | | | | | 23,565 | | | | | | 23,565 | | | | | | 23,565 | | | | | | 23,565 | | |
Subtotal | | | | | 10,318,211 | | | | | $ | 10,847,990 | | | | | | 10,523,565 | | | | | $ | 11,139,175 | | |
Unamortized deferred financing costs and debt discounts, net | | | | | (11,310) | | | | | | | | | | | | (12,684) | | | | | | | | |
Finance lease obligations(2) | | | | | 147,358 | | | | | | | | | | | | 160,609 | | | | | | | | |
Total long-term debt and finance lease obligations (including current portion) | | | | $ | 10,454,259 | | | | | | | | | | | $ | 10,671,490 | | | | | | | | |
Revenue: | | | For the Three Months Ended March 31, | | |||||||||
| 2021 | | | 2020 | | ||||||||
| | | (In thousands) | | |||||||||
United States | | | | $ | 3,155,617 | | | | | $ | 3,157,304 | | |
Canada and Mexico | | | | | 7,302 | | | | | | 10,478 | | |
Total revenue | | | �� | $ | 3,162,919 | | | | | $ | 3,167,782 | | |
Category: | | | For the Three Months Ended March 31, | | |||||||||
| 2021 | | | 2020 | | ||||||||
| | | (In thousands) | | |||||||||
Pay-TV subscriber and related revenue | | | | $ | 3,137,387 | | | | | $ | 3,130,900 | | |
Equipment sales and other revenue | | | | | 25,532 | | | | | | 36,882 | | |
Total | | | | $ | 3,162,919 | | | | | $ | 3,167,782 | | |
Allowance for credit losses | | | Balance at Beginning of Period | | | Current Period Provision for Expected Credit Losses | | | Write-offs Charged Against Allowance | | | Balance at End of Period | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
For the three months ended March 31, 2021 | | | | $ | 43,233 | | | | | $ | 8,682 | | | | | $ | (17,622) | | | | | $ | 34,293 | | |
| | | Contract Liabilities | | |||
| | | (In thousands) | | |||
Balance as of December 31, 2020 | | | | $ | 593,797 | | |
Recognition of unearned revenue | | | | | (1,401,337) | | |
Deferral of revenue | | | | | 1,415,412 | | |
Balance as of March 31, 2021 | | | | $ | 607,872 | | |
| | | For the Three Months Ended June 30, | | | For the Six Months Ended June 30, | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | 2020 | | | 2019 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Purchases (including fees): | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchases from NagraStar | | | | $ | 13,259 | | | | | $ | 14,355 | | | | | $ | 27,351 | | | | | $ | 28,714 | | |
|
| | | As of | | |||||||||
| | | June 30, 2020 | | | December 31, 2019 | | ||||||
| | | (In thousands) | | |||||||||
Amounts Payable and Commitments: | | | | | | | | | | | | | |
Amounts payable to NagraStar | | | | $ | 17,930 | | | | | $ | 9,630 | | |
Commitments to NagraStar | | | | $ | 4,159 | | | | | $ | 4,893 | | |
| | | For the Three Months Ended March 31, | | |||||||||
| 2021 | | | 2020 | | ||||||||
| | | (In thousands) | | |||||||||
Purchases (including fees): | | | | | | | | | | | | | |
Purchases from NagraStar | | | | $ | 11,770 | | | | | $ | 14,092 | | |
| | | As of | | |||||||||
| March 31, 2021 | | | December 31, 2020 | | ||||||||
| | | (In thousands) | | |||||||||
Amounts Payable and Commitments: | | | | | | | | | | | | | |
Amounts payable to NagraStar | | | | $ | 7,893 | | | | | $ | 9,038 | | |
Commitments to NagraStar | | | | $ | 4,171 | | | | | $ | 3,260 | | |
| | | For the Three Months Ended June 30, | | | For the Six Months Ended June 30, | | ||||||||||||||||||
| | | 2020 | | | 2019 | | | 2020 | | | 2019 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Sales: | | | | | | | | | | | | | | | | | | | | | | | | | |
Uplink services | | | | $ | 1,288 | | | | | $ | 1,412 | | | | | $ | 2,669 | | | | | $ | 2,816 | | |
Total | | | | $ | 1,288 | | | | | $ | 1,412 | | | | | $ | 2,669 | | | | | $ | 2,816 | | |
|
| | | For the Three Months Ended March 31, | | |||||||||
| 2021 | | | 2020 | | ||||||||
| | | (In thousands) | | |||||||||
Sales: | | | | | | | | | | | | | |
Uplink services | | | | $ | 1,295 | | | | | $ | 1,381 | | |
Total | | | | $ | 1,295 | | | | | $ | 1,381 | | |
| | | As of | | |||||||||
| March 31, 2021 | | | December 31, 2020 | | ||||||||
| | | (In thousands) | | |||||||||
Amounts Receivable: | | | | | | | | | | | | | |
Amounts receivable from Dish Mexico | | | | $ | 2,942 | | | | | $ | 3,343 | | |
| | | As of | | |||||||||
| | | June 30, 2020 | | | December 31, 2019 | | ||||||
| | | (In thousands) | | |||||||||
Amounts Receivable: | | | | | | | | | | | | | |
Amounts receivable from Dish Mexico | | | | $ | 2,116 | | | | | $ | 1,191 | | |
| EXHIBIT NO. | | | DESCRIPTION | |
| | | | ||
| | | | ||
| 101 | | | The following materials from (A) the Annual Report on Form 10-K of DISH DBS Corporation for the year ended December 31, | |