Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 11, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-39144 | ||
Entity Registrant Name | DISH Network Corporation | ||
Entity Tax Identification Number | 88-0336997 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Address, Address Line One | 9601 South Meridian Boulevard | ||
Entity Address, City or Town | Englewood | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 80112 | ||
City Area Code | 303 | ||
Local Phone Number | 723-1000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.6 | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 185 | ||
Auditor Location | Denver, Colorado | ||
Entity Central Index Key | 0001001082 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 373,641 | $ 1,785,056 |
Marketable investment securities | 8,122 | 835,983 |
Trade accounts receivable, net of allowance for credit losses of $53,991 and $44,431, respectively | 890,333 | 953,812 |
Inventory | 497,058 | 502,373 |
Prepaids and other assets | 572,199 | 530,806 |
Other current assets | 2,308 | 2,080 |
Total current assets | 2,343,661 | 4,610,110 |
Noncurrent Assets: | ||
Restricted cash, cash equivalents and marketable investment securities | 108,879 | 104,614 |
Property and equipment, net | 7,401,947 | 5,640,119 |
Regulatory authorizations, net | 38,114,249 | 36,933,073 |
Other investment securities | 168,825 | 168,200 |
Operating lease assets | 2,934,862 | 2,687,522 |
Other noncurrent assets, net | 181,118 | 1,897,815 |
Intangible assets, net | 159,490 | 565,109 |
Total noncurrent assets | 49,069,370 | 47,996,452 |
Total assets | 51,413,031 | 52,606,562 |
Current Liabilities: | ||
Trade accounts payable | 673,291 | 924,438 |
Deferred revenue and other | 638,471 | 711,474 |
Accrued programming | 1,427,762 | 1,298,777 |
Accrued interest | 258,603 | 258,799 |
Other accrued expenses | 1,552,610 | 1,283,570 |
Current portion of long-term debt and finance lease obligations (Note 9) | 3,041,429 | 1,547,190 |
Total current liabilities | 7,592,166 | 6,024,248 |
Long-Term Obligations, Net of Current Portion: | ||
Long-term debt and finance lease obligations, net of current portion (Note 9) | 18,178,288 | 19,801,948 |
Deferred tax liabilities | 4,557,262 | 4,930,135 |
Operating lease liabilities | 2,992,863 | 2,687,883 |
Long-term deferred revenue and other long-term liabilities | 861,896 | 753,708 |
Total long-term obligations, net of current portion | 26,590,309 | 28,173,674 |
Total liabilities | 34,182,475 | 34,197,922 |
Commitments and Contingencies (Note 13) | ||
Redeemable noncontrolling interests (Note 2) | 438,382 | 464,359 |
Stockholder's Equity (Deficit): | ||
Additional paid-in capital | 4,916,120 | 4,851,392 |
Accumulated other comprehensive income (loss) | (2,676) | (3,029) |
Accumulated earnings (deficit) | 11,876,627 | 13,088,850 |
Total DISH Network stockholder's equity (deficit) | 16,790,071 | 17,942,524 |
Noncontrolling interests | 2,103 | 1,757 |
Total stockholder's equity (deficit) | 16,792,174 | 17,944,281 |
Total liabilities and stockholder's equity (deficit) | $ 51,413,031 | 52,606,562 |
Class A common stock | ||
Stockholder's Equity (Deficit): | ||
Common stock | 2,927 | |
Class B common stock | ||
Stockholder's Equity (Deficit): | ||
Common stock | $ 2,384 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Allowance for credit losses on trade accounts receivable | $ 53,991 | $ 44,431 |
Common stock par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
Class A common stock | ||
Current Assets: | ||
Common stock par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized | 1,600,000,000 | |
Common stock, shares issued | 292,660,308 | |
Common stock, shares outstanding | 292,660,308 | |
Class B common stock | ||
Current Assets: | ||
Common stock par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized | 800,000,000 | |
Common stock, shares issued | 238,435,208 | |
Common stock, shares outstanding | 238,435,208 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Total revenue | $ 15,295,088 | $ 16,679,407 | $ 17,881,106 |
Costs and Expenses (exclusive of depreciation): | |||
Cost of services | 8,989,961 | 9,558,484 | 10,185,906 |
Cost of sales - equipment and other | 2,201,870 | 1,812,591 | 1,552,377 |
Selling, general and administrative expenses | 2,521,062 | 2,545,593 | 2,214,936 |
Depreciation and amortization | 1,181,921 | 717,073 | 724,852 |
Impairment of long-lived assets (Note 2) | 225,017 | ||
Total costs and expenses | 15,119,831 | 14,633,741 | 14,678,071 |
Operating income (loss) | 175,257 | 2,045,666 | 3,203,035 |
Other Income (Expense): | |||
Interest income | 105,416 | 42,776 | 11,338 |
Interest expense, net of amounts capitalized | (38,881) | (22,781) | (16,174) |
Other, net | (1,741,876) | 1,038,982 | 20,557 |
Total other income (expense) | (1,675,341) | 1,058,977 | 15,721 |
Income (loss) before income taxes | (1,500,084) | 3,104,643 | 3,218,756 |
Income tax (provision) benefit, net | 371,662 | (731,736) | (762,810) |
Net income (loss) | (1,128,422) | 2,372,907 | 2,455,946 |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | 83,801 | 69,674 | 45,304 |
Net income (loss) attributable to DISH Network | (1,212,223) | 2,303,233 | 2,410,642 |
Comprehensive Income (Loss): | |||
Net income (loss) | (1,128,422) | 2,372,907 | 2,455,946 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 356 | (4,160) | 1,787 |
Unrealized holding gains (losses) on available-for-sale debt securities | (267) | 191 | (208) |
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss) | 304 | (7) | (13) |
Deferred income tax (expense) benefit, net | (40) | 666 | (430) |
Total other comprehensive income (loss), net of tax | 353 | (3,310) | 1,136 |
Comprehensive income (loss) | (1,128,069) | 2,369,597 | 2,457,082 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 83,801 | 69,674 | 45,304 |
Comprehensive income (loss) attributable to DISH Network | (1,211,870) | 2,299,923 | 2,411,778 |
Service revenue | |||
Revenue: | |||
Total revenue | 14,721,682 | 16,014,284 | 16,929,860 |
Equipment sales and other revenue | |||
Revenue: | |||
Total revenue | $ 573,406 | $ 665,123 | $ 951,246 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Class A and B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Noncontrolling Interests | Redeemable Noncontrolling Interests | Total |
Balance at Dec. 31, 2020 | $ 5,261 | $ 5,400,774 | $ (855) | $ 8,374,975 | $ 490 | $ 350,648 | $ 13,780,645 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 13 | 40,551 | 40,564 | ||||
Employee benefits | 9 | 30,312 | 30,321 | ||||
Employee Stock Purchase Plan | 6 | 17,733 | 17,739 | ||||
Non-cash, stock-based compensation | 51,680 | 51,680 | |||||
Convertible debt reclassified per ASU 2020-06, net of deferred taxes of $245,778 (Note 2) | (805,566) | (805,566) | |||||
Other comprehensive income (loss) | 1,136 | 1,136 | |||||
Net income (loss) attributable to noncontrolling interests | 730 | 44,574 | 730 | ||||
Net income (loss) attributable to DISH Network | 2,410,642 | 2,410,642 | |||||
Balance at Dec. 31, 2021 | 5,289 | 4,735,484 | 281 | 10,785,617 | 1,220 | 395,222 | 15,527,891 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 1 | 199 | 200 | ||||
Employee benefits | 8 | 26,340 | 26,348 | ||||
Employee Stock Purchase Plan | 13 | 17,919 | 17,932 | ||||
Non-cash, stock-based compensation | 71,450 | 71,450 | |||||
Other comprehensive income (loss) | (3,310) | (3,310) | |||||
Net income (loss) attributable to noncontrolling interests | 537 | 69,137 | 537 | ||||
Net income (loss) attributable to DISH Network | 2,303,233 | 2,303,233 | |||||
Balance at Dec. 31, 2022 | 5,311 | 4,851,392 | (3,029) | 13,088,850 | 1,757 | 464,359 | 17,944,281 |
Issuance of Class A common stock: | |||||||
Exercise of stock awards | 7 | (501) | (494) | ||||
Employee benefits | 11 | 14,669 | 14,680 | ||||
Employee Stock Purchase Plan | 15 | 9,073 | 9,088 | ||||
Non-cash, stock-based compensation | 36,143 | 36,143 | |||||
Other comprehensive income (loss) | 353 | 353 | |||||
Purchase of Northstar Manager, LLC's ownership interest in Northstar Spectrum | (109,432) | ||||||
Extinguishment of stock related to the merger with EchoStar | $ (5,344) | 5,344 | |||||
Net income (loss) attributable to noncontrolling interests | 346 | 83,455 | 346 | ||||
Net income (loss) attributable to DISH Network | (1,212,223) | (1,212,223) | |||||
Balance at Dec. 31, 2023 | $ 4,916,120 | $ (2,676) | $ 11,876,627 | $ 2,103 | $ 438,382 | $ 16,792,174 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Deferred tax liabilities | $ 4,557,262 | $ 4,930,135 | ||
ASU 2020-06 | ||||
Deferred tax liabilities | $ 245,778 | $ 246,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities: | |||
Net income (loss) | $ (1,128,422) | $ 2,372,907 | $ 2,455,946 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 1,181,921 | 717,073 | 724,852 |
Impairment of long-lived assets (Note 2) | 225,017 | ||
Realized and unrealized losses (gains) on investments, impairments and other | (77,109) | (25,264) | 6,724 |
Realized and unrealized losses (gains) on derivatives | 1,693,387 | (1,015,387) | 13,000 |
Non-cash, stock-based compensation | 36,143 | 71,450 | 51,680 |
Deferred tax expense (benefit) | (374,910) | 702,735 | 602,044 |
Changes in allowance for credit losses | 9,560 | 5,819 | (33,836) |
Change in long-term deferred revenue and other long-term liabilities | 24,436 | 86,039 | (1,400) |
Other, net | 209,034 | 235,856 | 98,278 |
Changes in current assets and current liabilities, net | |||
Trade accounts receivable | 33,189 | (24,234) | 209,456 |
Prepaid and accrued income taxes | 3,053 | (36,115) | 81,197 |
Inventory | 2,658 | 36,722 | (167,985) |
Other current assets | (36,967) | 27,992 | (62,356) |
Trade accounts payable | 13,507 | 79,116 | 101,034 |
Deferred revenue and other | (73,003) | (52,105) | (98,808) |
Accrued programming and other accrued expenses | 255,545 | (90,504) | 51,425 |
Net cash flows from operating activities | 1,997,039 | 3,092,100 | 4,031,251 |
Cash Flows From Investing Activities: | |||
Purchases of marketable investment securities | (1,383,102) | (898,326) | (4,687,033) |
Sales and maturities of marketable investment securities | 2,253,639 | 3,023,236 | 2,069,343 |
Purchases of property and equipment | (2,828,887) | (2,727,302) | (1,185,642) |
Capitalized interest related to regulatory authorizations (Note 2) | (1,162,473) | (984,309) | (777,885) |
Refund of regulatory authorizations deposit | 337,490 | ||
Purchases of regulatory authorizations, including deposits | (2,009) | (7,206,865) | (122,657) |
Other, net | 14,075 | 6,527 | (44,029) |
Net cash flows from investing activities | (3,108,757) | (8,787,039) | (4,410,413) |
Cash Flows From Financing Activities: | |||
Repayment of long-term debt and finance lease obligations | (119,202) | (83,117) | (89,876) |
Redemption and repurchases of senior notes | (1,460,635) | (2,056,821) | (2,000,000) |
Proceeds from issuance of senior notes | 1,500,000 | 2,000,000 | 6,750,000 |
Repurchases of convertible notes | (182,834) | ||
Early debt extinguishment gains (losses) | 73,024 | ||
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan | 8,594 | 18,132 | 58,303 |
Debt issuance costs and debt (discount) premium | 21,635 | (51,121) | (34,459) |
Purchase of Northstar Manager, LLC's ownership interest in Northstar Spectrum | (109,432) | ||
Other, net | (4,665) | (18,413) | (24,540) |
Net cash flows from financing activities | (273,515) | (191,340) | 4,659,428 |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | (1,385,233) | (5,886,279) | 4,280,266 |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 5) | 1,847,981 | 7,734,260 | 3,453,994 |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 5) | $ 462,748 | $ 1,847,981 | $ 7,734,260 |
Organization and Business Activ
Organization and Business Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Business Activities | |
Organization and Business Activities | 1. Organization and Business Activities Principal Business DISH Network Corporation is a holding company. Its subsidiaries (which together with DISH Network Corporation are referred to as “DISH Network,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context). DISH Network is a wholly-owned subsidiary of EchoStar Corporation (“EchoStar”), a publicly traded company listed on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “SATS.” Recent Developments Merger with EchoStar On December 31, 2023, EchoStar completed the acquisition of DISH Network pursuant to the Amended and Restated Agreement and Plan of Merger, dated as of October 2, 2023 (the “Amended Merger Agreement”), by and among EchoStar, EAV Corp., a Nevada corporation and its wholly owned subsidiary (“Merger Sub”), and DISH Network, pursuant to which EchoStar acquired DISH Network by means of the merger of Merger Sub with and into DISH Network (the “Merger”), with DISH Network surviving the Merger as EchoStar’s wholly owned subsidiary. On the terms and subject to the conditions set forth in the Amended Merger Agreement, on December 31, 2023, at 11:59 p.m. ET (the “Effective Time”), each share of DISH Network Class A common stock, par value $0.01 per share (“DISH Network Class A Common Stock”) and DISH Network Class C common stock, par value $0.01 per share (“DISH Network Class C Common Stock”) outstanding immediately prior to the Effective Time, was converted into the right to receive a number of validly issued, fully paid and non-assessable shares of EchoStar Class A common stock, par value $0.001 per share (“EchoStar Class A Common Stock”) equal to 0.350877 (the “Exchange Ratio”). On the terms and subject to the conditions set forth in the Amended Merger Agreement, at the Effective Time, each share of DISH Network Class B common stock, par value $0.01 per share (“DISH Network Class B Common Stock” and, together with DISH Network Class A Common Stock and DISH Network Class C Common Stock, “DISH Network Common Stock”), outstanding immediately prior to the Effective Time was converted into the right to receive a number of validly issued, fully paid and non-assessable shares of EchoStar Class B common stock, par value $0.001 per share (the “EchoStar Class B Common Stock” and, together with the EchoStar Class A Common Stock, the “EchoStar Common Stock”), equal to the Exchange Ratio. Any shares of DISH Network Common Stock that were held in DISH Network’s treasury or held directly by EchoStar or Merger Sub immediately prior to the Effective Time were cancelled and cease to exist and no consideration was paid in respect thereof. All shares of the DISH Network Class A Common Stock were delisted from the NASDAQ Global Select Market and deregistered under the Securities Exchange Act of 1934, as amended. The EchoStar Common Stock issued to the Ergen DISH Stockholders (as defined in the Amended Merger Agreement) as Merger consideration was issued through a private placement exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”). At the Effective Time, each share of DISH Network Class A Common Stock owned by the Ergen DISH Stockholders immediately prior to the Effective Time was converted into the right to receive a number of shares of EchoStar Class A Common Stock equal to the Exchange Ratio, and (b) each share of DISH Network Class B Common Stock owned by the Ergen DISH Stockholders immediately prior to the Effective Time was converted into the right to receive a number of shares of EchoStar Class B Common Stock equal to the Exchange Ratio. Concurrently with the entry into the Amended Merger Agreement, the Ergen EchoStar Stockholders (as defined in the Amended Merger Agreement), the Ergen DISH Stockholders (collectively, the “Ergen Stockholders”), EchoStar and DISH Network entered into an amended and restated support agreement (the “Amended Support Agreement”). In connection with the completion of the Merger, and pursuant to the Amended and Restated Support Agreement, on December 31, 2023, EchoStar and the Ergen Stockholders entered into a registration rights agreement (the “Registration Rights Agreement”). The Registration Rights Agreement provides the Ergen Stockholders, and their affiliates who become parties thereto, with certain registration rights relating to the shares of EchoStar Common Stock, which they beneficially own, including (i) the right to demand shelf registration as well as registration on long and short form registration statements and (ii) “piggyback” registration rights to be included in future registered offerings by us of our equity securities, in each case, subject to certain requirements and customary conditions. The Registration Rights Agreement sets forth customary registration procedures, including an agreement by EchoStar to make appropriate officers available to participate in roadshow presentations and cooperate as reasonably requested in connection with any underwritten offerings. EchoStar also agreed to indemnify the Ergen Stockholders and their affiliates with respect to liabilities resulting from untrue statements or omissions in any registration statement used in any such registration, other than untrue statements or omissions based on or contained in information furnished to EchoStar for use in a registration statement by a participating stockholder. For more information and a copy of the Amended Merger Agreement, the Amended Support Agreement and the Registration Rights Agreement, see the Form 8-K of EchoStar filed on October 3, 2023 and the Form 8-K of EchoStar filed on January 2, 2024. With the Merger complete, we are currently focused on the process of integrating our and EchoStar’s business in a manner that facilitates synergies, cost savings, growth opportunities and achieves other anticipated benefits (the “Integration”). As a result of the merger with EchoStar effective December 31, 2023, all of our outstanding shares are held by EchoStar. Therefore, certain disclosures related to outstanding shares and equity have been omitted. Future Capital Requirements The consolidated financial statements have been prepared in accordance with generally accepted accounting principles on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our cash and cash equivalents and marketable investment securities totaled $382 million as of December 31, 2023 (“Cash on Hand”). As reflected in the consolidated financial statements as of December 31, 2023, we have million obligation related to the SNR put right and for calendar year 2024 we are forecasting negative cash flows. Our parent, EchoStar, satisfied the SNR obligation out of its cash and cash equivalents and marketable investment securities on February 16, 2024. The remaining balance of $951 million on our 2 3/8% Convertible Notes matured on March 15, 2024 and was paid with Cash on Hand, cash flow from operations and funds from certain strategic transactions including the sale of our wholly-owned subsidiary which holds the 700 MHz Spectrum to a wholly-owned subsidiary of our parent, EchoStar, on March 12, 2024 . See Note 9 for further information. Because we do not currently have committed financing to fund our operations for at least twelve months from the issuance of these consolidated financial statements, substantial doubt exists about our and our parent, EchoStar’s, ability to continue as a going concern. As discussed above, w e used Cash on Hand, cash flow from operations and funds from certain strategic transactions including the sale of our wholly-owned subsidiary which holds the 700 MHz Spectrum to a wholly-owned subsidiary of our parent, EchoStar, to pay the March 2024 debt maturity. We do not currently have the necessary Cash on Hand and/or projected future cash flows to fund the November 2024 debt maturity. To address our capital needs, we are in active discussions with funding sources to raise additional capital and restructure our outstanding debt. We cannot provide assurances that we will be successful in obtaining such new financing and/or restructuring the existing debt obligations necessary for us to have sufficient liquidity. Further, if we are not successful in these endeavors, then capital expenditures to meet future FCC build out requirements and wireless customer growth initiatives will be adversely affected. In addition, The consolidated financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should we not continue as a going concern. Segments We currently operate three primary business segments: (1) Pay-TV; (2) Retail Wireless and (3) 5G Network Deployment. Pay-TV We offer pay-TV services under the DISH® brand and the SLING® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear and on-demand streaming over-the-top (“OTT”) Internet-based domestic, international, Latino and Freestream video programming services (“SLING TV”). As of December 31, 2023, we had Retail Wireless We offer nationwide prepaid and postpaid retail wireless services to subscribers primarily under our Boost Mobile®, Boost postpaid and Gen Mobile® brands (“Retail Wireless” services) , as well as a competitive portfolio of wireless devices. Prepaid wireless subscribers generally pay in advance for monthly access to wireless talk, text, and data services. Postpaid wireless subscribers are qualified to pay after receiving wireless talk, text, and data services, and may also qualify for financing arrangements for wireless devices. We are currently operating our Retail Wireless segment primarily as a mobile virtual network operator (“MVNO”) as we continue our 5G Network Deployment and commercialize our 5G Network, as defined below. We are transitioning our Retail Wireless to a mobile network operator (“MNO”) as our 5G Network becomes commercially available and we are currently activating subscribers onto our 5G Network in markets where we have reached voice over new radio (“VoNR”). As an MVNO, today we depend on T-Mobile and AT&T to provide us with network services under the amended Master Network Services Agreement (“MNSA”) and Network Services Agreement (the “NSA”), respectively. Under the NSA, we expect AT&T will become our primary network services provider. As of December 31, 2023, we had million Wireless subscribers. Other Developments We regularly evaluate ways to enhance our business. As part of this process, we are in regular dialogue with interested parties who may assist us in accomplishing our goals, including ongoing conversations with CONX Corp. (an entity partially owned by Charles W. Ergen, our Chairman) regarding a transaction involving our Retail Wireless segment. There can be no assurance that these discussions will lead to a transaction nor as to the structure or terms of any such transaction. 5G Network Deployment We have invested a total of over $30 billion in Wireless spectrum licenses, which includes over $10 billion in initial noncontrolling investments in certain entities. The $30 billion of investments related to Wireless spectrum licenses does not include $9 billion of capitalized interest related to the carrying value of such licenses. See Note 2 and Note 13 for further information. We will need to raise additional capital in the future, which may not be available on favorable terms, to fund the efforts described below, as well as, among other things, make any potential Northstar Re-Auction Payment and SNR Re-Auction Payment for the AWS-3 licenses retained by the FCC. There can be no assurance that we will be able to profitably deploy these Wireless spectrum licenses, which may affect the carrying amount of these assets and our future financial condition or results of operations. See Note 13 for further information. DISH Network Spectrum We have invested a total of over $30 billion to acquire certain Wireless spectrum licenses. These Wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. We plan to commercialize our Wireless spectrum licenses through the completion of the nation’s first cloud-native, Open Radio Access Network (“O-RAN”) based 5G network (our “5G Network Deployment”). We have committed to deploy a facilities-based 5G broadband network (our “5G Network”) capable of serving increasingly larger portions of the U.S. population at different deadlines, including of the U.S. population by June 2023. If by June 2023, we are offering 5G broadband service to at least June 2023 deadline will be extended automatically to June 2025; however, as a result, we may, under certain circumstances, potentially be subject to certain penalties. On June 14, 2022, we announced we had successfully reached our population coverage requirement. In addition, we announced and certified to the FCC that as of June 14, 2023, we offer 5G broadband service to over million Americans nationwide. On September 29, 2023, the FCC confirmed we have met all of our June 14, 2023 band-specific 5G deployment commitments, and We now have the largest commercial deployment of 5G VoNR in the world reaching approximately 200 million Americans, and 5G broadband service reaching approximately 250 million Americans. As a result of us providing 5G broadband service to over 50% of the U.S. population by June 14, 2023, the final build-out deadlines have been extended automatically to June 14, 2025 for us to offer 5G broadband service to at least 70% of the population in each Economic Area for the 700 MHz Licenses and AWS-4 Licenses and at least 75% of the population in each Economic Area for the H Block Licenses. We may need to make significant additional investments or partner with others to, among other things, continue our 5G Network Deployment and further commercialize, build-out and integrate these licenses and related assets and any additional acquired licenses and related assets, as well as to comply with regulations applicable to such licenses. Depending on the nature and scope of such activities, any such investments or partnerships could vary significantly. In addition, as we continue our 5G Network Deployment, we have and may continue to incur significant additional expenses related to, among other things, research and development, wireless testing and ongoing upgrades to the wireless network infrastructure, software and third-party integration. We may also determine that additional wireless spectrum licenses may be required for our 5G Network Deployment and to compete effectively with other wireless service providers. See Note 13 for further information. DISH Network Noncontrolling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses During 2015, through our wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), we initially made over $10 billion in certain noncontrolling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, L.L.C. (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless and to SNR Wireless, respectively, which are recorded in “Regulatory authorizations, net” on our Consolidated Balance Sheets. Under the applicable accounting guidance in Accounting Standards Codification 810, Consolidation and, based on the characteristics of the structure of these entities and in accordance with the applicable accounting guidance, we consolidate these entities into our financial statements. On October 12, 2023, million. This purchase resulted in the elimination of all of our redeemable noncontrolling interest as it related to Northstar Spectrum as of the purchase date and we continue to consolidate the Northstar Entities as wholly-owned subsidiaries. Subsequent to December 31, 2023, 2024. This purchase resulted in the conversion of our outstanding redeemable noncontrolling interest as it relates to SNR HoldCo to noncontrolling interest, which is now held by our parent, EchoStar, as of the purchase date. Other Developments Cyber-Security Incident On February 23, 2023, we experienced a network outage that affected our internal servers and IT telephony. We immediately activated our incident response and business continuity plans designed to contain, remediate and recover from the situation. We engaged the services of certain cyber-security experts and outside advisors to assist in the evaluation of the situation, and once we determined that the outage was due to a cyber-security incident, we promptly notified appropriate law enforcement authorities. On February 28, 2023, we further disclosed that certain data had been extracted from our IT systems. Our investigation into the extent of the incident is now completed. We determined that our customer databases were not accessed, however, we confirmed that certain employee-related records as well as a limited number of other records containing certain personal information were among the data extracted. We took steps to protect the affected records, received confirmation that the extracted data was deleted and notified individuals whose data was extracted. Our DISH TV, SLING TV and Retail Wireless services, along with our wireless and data networks remained operational at all times during the incident. As of March 31, 2023, all significant systems had been restored. During the first quarter of 2023, we incurred substantially all of our cyber-security-related expenses for this matter, including, but not limited to, costs to remediate the incident and provide additional customer support. During the second, third and fourth quarters of 2023, we did not incur additional material expenses resulting from the cyber-security incident and do not expect to incur material expenses in future periods. During the year ended December 31, 2023, we incurred approximately |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include all balances and results of operations of DISH Network and our consolidated subsidiaries and are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) . We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments, which will be initially recorded at cost, and based on observable market prices, will be adjusted to their fair value. We record fair value adjustments in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. Redeemable Noncontrolling Interests Northstar Wireless. Northstar Wireless is a wholly-owned subsidiary of Northstar Spectrum, which is an entity owned by Northstar Manager and us. Under the applicable accounting guidance in ASC 810, Northstar Spectrum is considered a VIE and, based on the characteristics of the structure of this entity and in accordance with the applicable accounting guidance, we consolidate Northstar Spectrum into our financial statements. The Northstar Operative Agreements, as amended, provide for, among other things, that Northstar Manager has the ability, but not the obligation, to require Northstar Spectrum to purchase Northstar Manager’s ownership interests in Northstar Spectrum (the “Northstar Put Right”) for a purchase price that equals its equity contribution to Northstar Spectrum plus a fixed annual rate of return. The First Northstar Put Window closed in the first quarter of 2021. On October 21, 2022, we, through our wholly-owned subsidiary American II received notice that Northstar Manager exercised the Northstar Put Right effective as of October 21, 2022. As of December 31, 2022, the aggregate value of the Northstar Put Right accrued to million. million. This purchase resulted Northstar Spectrum does not have a call right with respect to Northstar Manager’s ownership interests in Northstar Spectrum. Although Northstar Manager is the sole manager of Northstar Spectrum, Northstar Manager’s ownership interest was considered temporary equity under the applicable accounting guidance and was recorded as part of “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. Northstar Manager’s ownership interest in Northstar Spectrum was initially accounted for at fair value. Subsequently, Northstar Manager’s ownership interest in Northstar Spectrum was increased by the fixed annual rate of return through “Redeemable noncontrolling interests” on our Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The operating results of Northstar Spectrum attributable to Northstar Manager were recorded as “Redeemable noncontrolling interests” on our Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 13 for further information. SNR Wireless. SNR Wireless is a wholly-owned subsidiary of SNR HoldCo, which is an entity owned by SNR Management and us. Under the applicable accounting guidance in ASC 810, SNR HoldCo is considered a VIE and, based on the characteristics of the structure of this entity and in accordance with the applicable accounting guidance, we consolidate SNR HoldCo into our financial statements. The SNR Operative Agreements, as amended, provide for, among other things, that SNR Management has the ability, but not the obligation, to require SNR HoldCo to purchase SNR Management’s ownership interests in SNR HoldCo (the “SNR Put Right”) for a purchase price that equals its equity contribution to SNR HoldCo plus a fixed annual rate of return. The First SNR Put Window closed in the first quarter of 2021. On November 15, 2021, we, through our wholly-owned subsidiary American III received notice that SNR Management exercised the SNR Put Right effective as of November 15, 2021. As of December 31, 2023 and 2022, the aggregate value of the SNR Put Right had accrued to approximately million, respectively. Subsequent to December 31, 2023, the FCC consented to the sale of 2024. This purchase resulted in the conversion of our outstanding redeemable noncontrolling interest as it relates to SNR HoldCo to noncontrolling interest, which is now held by our parent, EchoStar, as of the purchase date. SNR HoldCo does not have a call right with respect to SNR Management’s ownership interests in SNR HoldCo. Although SNR Management is the sole manager of SNR HoldCo, SNR Management’s ownership interest is considered temporary equity under the applicable accounting guidance and is thus recorded as part of “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. SNR Management’s ownership interest in SNR HoldCo was initially accounted for at fair value. Subsequently, SNR Management’s ownership interest in SNR HoldCo is increased by the fixed annual rate of return through “Redeemable noncontrolling interests” on our Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The operating results of SNR HoldCo attributable to SNR Management are recorded as “Redeemable noncontrolling interests” on our Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 13 for further information. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are based on historical experience, observable market inputs, and other reasonable assumptions in accounting for, among other things, allowances for credit losses (including those related to our installment billing programs), self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under EchoStar’s stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, the fair value of our option to purchase T-Mobile’s 800 MHz spectrum, inputs used to recognize revenue over time, including the relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, incremental borrowing rate (“IBR”) on lease right of use assets, nonrefundable upfront fees, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. Cash and Cash Equivalents We consider all liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents as of December 31, 2023 and 2022 may consist of money market funds, government bonds, corporate notes and commercial paper. The amortized cost of these investments approximates their fair value. Concentration of Credit Risk Cash and cash equivalents are maintained with several financial institutions domestically and internationally. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with investment-grade credit ratings. We routinely assess the financial strength of significant customers, and this assessment, combined with the large number and geographical diversity of its customers, limits our concentration of risk with respect to receivables from contracts with customers. Marketable Investment Securities All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Stockholder’s Equity (Deficit),” net of related deferred income tax on our Consolidated Balance Sheets. The changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Interest income from available for sale debt securities is reported in “Interest income, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). We evaluate our debt investment portfolio to determine whether declines in the fair value of these securities are related to credit loss. Management estimates credit losses on marketable debt securities utilizing a credit loss impairment model on a quarterly basis. We estimate the expected credit losses, measured over the contractual life of marketable debt securities considering relevant issuer specific factors, including, but not limited to, a decrease in credit ratings or an entity’s ability to pay. Receivables and Related Allowance for Credit Losses General Accounts Receivable Trade accounts receivable represent our unconditional rights to consideration arising from our performance under our customer contracts and are recorded at cost less an allowance for expected credit losses that are not expected to be recovered. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for expected credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Management estimates credit losses on financial assets, including our trade accounts receivable, utilizing a current expected credit loss impairment model. We estimate the expected credit losses, measured over the contractual life of an asset considering relevant historical loss information, credit quality of the customer base, current economic conditions and forecasts of future economic conditions. In determining the allowance for credit losses, management groups similar types of financial assets with consistent risk characteristics. Pools identified by management include, but are not limited to residential customers, commercial customers and advertising services. The risk characteristics of the financial asset portfolios are monitored by management and reviewed periodically. The forecasts for future economic conditions are based on several factors including, but not limited to, changes in the unemployment rate, external economic forecasts and current collection rates. Our estimates of the allowance for credit losses may not be indicative of our actual credit losses requiring additional charges to be incurred to reflect the actual amount collected. Installments Receivable We offer Boost postpaid customers the option to pay for their devices and other equipment in installments generally over a period of 36 months . Installments receivable are presented on our Consolidated Balance Sheets at their amortized cost basis (i.e., the receivables’ unpaid balance as adjusted for any written-off amounts due to impairment and unamortized discounts), net of the allowance for credit losses. At the time of an installment sale, we impute a discount for interest if the term exceeds 12 months as there is no stated rate of interest on the receivables. The receivables are recorded at their present value, which is determined by discounting expected future cash payments at the imputed interest rate. The current portion of installments receivable is included in “Trade accounts receivable, net” and the long-term portion of installments receivable is included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. This adjustment results in a discount or reduction in the transaction price of the contract with a customer, which is allocated to the performance obligations of the arrangement such as Equipment and other revenues on our Consolidated Statements of Operations and Comprehensive Income (Loss). The imputed discount rate reflects a current market interest rate and is predominately comprised of the estimated credit risk underlying the installment receivable, reflecting the estimated credit worthiness of the customer. The imputed discount on receivables is amortized over the financed installment term using the effective interest method and recognized in “Equipment and other revenues” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The cost of manufactured inventory includes the cost of materials, labor, freight-in, royalties and manufacturing overhead. Net realizable value is calculated as the estimated selling price less reasonable costs necessary to complete, sell, transport and dispose of the inventory. We record write downs for inventory for obsolete and slow moving items based on trends and experience. We enter into arrangements with distributors where physical delivery of a product to a distributor has occurred, but we maintain control of the product until such time it is sold to an end consumer. For these arrangements, we account for the products as consigned inventory. Property and Equipment Property and equipment, including capitalized expenditures related to our wireless projects, 5G Network Deployment and satellites, are stated at cost less depreciation and impairment losses, if any. Capitalized expenditures include the cost of long-lived assets, plus the cost to construct the asset such as labor and overhead directly benefiting the asset. Interest is capitalized when pre-construction activity commences and ends once the asset is ready for its intended purpose. Our equipment leased to customers is generally capitalized when they are installed in customers’ homes. We have certain assets acquired under finance leases. The recorded costs of those assets are the present values of all lease payments. We amortize our finance lease right of use (“ROU”) assets over their respective lease terms. If a satellite were to fail while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from two to 40 years . Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized. Internal Use Software We capitalize certain costs related to developing or acquiring internal use software. Capitalization of software costs begins once the preliminary project stage is completed and we commit to funding the software project. Capitalizing ceases when the software project is ready for its intended use. Capitalized software costs are recorded in “Property and equipment, net” on our Asset Retirement Obligation We record an asset retirement obligation for the estimated fair value of legal obligations associated with the retirement of tangible long-lived assets and a corresponding increase in the carrying amount of the related asset in the period in which the obligation is incurred. In periods subsequent to initial measurement, we recognize changes in the liability resulting from the passage of time and revisions to either the timing or the amount of the original estimate. Over time, the liability is accreted to its present value and the capitalized cost is depreciated over the estimated useful life of the asset. Our asset retirement obligations relate primarily to certain legal obligations to remediate leased property on Other Investments Equity Method Investments We use the equity method to account for investments when we have the ability to exercise significant influence on the operating decisions of the affiliate. Such investments are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The carrying amount of such investments includes a component of goodwill when the cost of our investment exceeds the fair value of the underlying identifiable assets and liabilities of the affiliate. Dividends received from these affiliates reduces the carrying amount of our investment. Cost Method Investments We generally measure investments in non-publicly traded equity instruments without a readily determinable fair value at cost adjusted for observable price changes in orderly transactions for the identical or similar securities of the same issuer and changes resulting from impairments, if any. Other equity instruments are measured to determine their value based on observable market information. When we adjust the carrying amount of an investment to its estimated fair value, the gain or loss is recorded in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Impairment Considerations We periodically evaluate all of our other investments to determine whether events or changes in circumstances have occurred that may have a significant adverse effect on the fair value of the investment. We consider information if provided to us by our investees such as current financial statements, business plans, investment documentation, capitalization tables, liquidation waterfalls, and board materials; and we may make additional inquiries of investee management. Indicators of impairment may include, but are not limited to, unprofitable operations, material loss contingencies, changes in business strategy, changes in market trends or market conditions, changes in the investees’ enterprise value and changes in the investees’ investment pricing. When we determine that one of our other investments is impaired we reduce its carrying value to its estimated fair value and recognize the impairment loss in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Derivative Instruments We may purchase and hold derivative financial instruments for, among other reasons, strategic or speculative purposes. We record derivative financial instruments on our Consolidated Balance Sheets at fair value as either assets or liabilities. Changes in the fair values of derivative financial instruments are recognized in our results of operations and included in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). We have not designated any derivative financial instrument for hedge accounting. We have the option to purchase certain of T-Mobile’s 800 MHz spectrum licenses from T-Mobile at a fixed price in the future as part of the Boost Mobile Acquisition and have written certain contracts on the equity of EchoStar. See Note 5 and Note 9 for further information. Impairment of Long-Lived Assets and Finite-Lived Intangible Assets We review our long-lived assets and identifiable finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Intangible assets that have finite lives are amortized over their estimated useful lives. For assets which are held and used in operations, the asset would be impaired if the carrying amount of the asset (or asset group) exceeded its undiscounted future net cash flows. When an impairment is determined, the actual impairment recognized is the difference between the carrying amount and the fair value as estimated using one of the following approaches: income, cost and/or market. In the event of an impairment, a loss is recorded in “Impairment of long-lived assets and goodwill” on our Consolidated Statements of Operations and Comprehensive Income (Loss) based on the amount by which the carrying amount exceeds the fair value of the long-lived asset or asset group. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Fair value, using the income approach, is determined primarily using a discounted cash flow model that uses the estimated cash flows associated with the asset or asset group under review, discounted at a rate commensurate with the risk involved. Fair value, utilizing the cost approach, is determined based on the replacement cost of the asset reduced for, among other things, depreciation and obsolescence. Fair value, utilizing the market approach, benchmarks the fair value against the carrying amount. DBS Satellites We currently evaluate our DBS satellite fleet for impairment as one asset group whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2023 and 2022. We will continue to monitor the DBS satellite fleet for indicators of impairment. Finite-Lived Intangible Assets Intangible assets include customer relationships, trademarks, and certain below market contracts. These assets are amortized over their respective useful lives. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2023 and 2022. Indefinite-Lived Intangible Assets and Goodwill We do not amortize indefinite-lived intangible assets and goodwill but test these assets for impairment annually, during the fourth quarter or more often if indicators of impairment arise. We have the option to first perform a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. However, we may elect to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. Our intangible assets with indefinite lives primarily consist of FCC licenses and certain other contractual or regulatory rights to use spectrum at specified orbital locations. Generally, we have determined that our FCC licenses have indefinite useful lives due to the following: ● FCC licenses are a non-depleting asset; ● existing FCC licenses are integral to our business segments and will contribute to cash flows indefinitely; ● replacement satellite applications are generally authorized by the FCC subject to certain conditions, without substantial cost under a stable regulatory, legislative and legal environment; ● maintenance expenditures to obtain future cash flows are not significant; ● FCC licenses are not technologically dependent; and ● we intend to use these assets indefinitely. DBS Licenses We combine all of our indefinite-lived DBS licenses that we currently utilize or plan to utilize in the future into a single unit of accounting. For 2023, 2022 and 2021, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS licenses exceeds the carrying amount. In our assessment, we considered several factors, including, among others, overall financial performance, industry and market considerations, and relevant company specific events. In contemplating all factors in their totality, we concluded that it is more likely than not that the fair value of the DBS licenses exceeds its carrying amount. As such, no further analysis was required. Wireless Spectrum Licenses During 2022, we acquired the 3.45-3.55 GHz wireless licenses (the “3.45–3.55 GHz Licenses”). During 2021, we acquired the 3550-3650 MHz (CBRS) and 3.7-3.98 GHz wireless licenses, together (the “C-Band Licenses”). During 2020, we acquired the 37 GHz, 39 GHz, and 47 GHz wireless licenses and during 2019, we acquired the 24 GHz and 28 GHz wireless licenses, together (the “High-Band Licenses”). In 2023 and 2022, we combined our 600 MHz, 700 MHz, AWS-4, H Block, High-Band Licenses, C-Band Licenses, 3.45–3.55 GHz Licenses and the Northstar Licenses and SNR Licenses into a single unit of accounting. In 2021, we combined our 600 MHz, 700 MHz, AWS-4, H Block, High-Band Licenses, C-Band Licenses and the Northstar Licenses and SNR Licenses into a single unit of accounting. In 2023, we quantitatively assessed these licenses for impairment. Our quantitative assessment consisted of a market approach performed by a third party and reviewed by management. Market Approach. Currently frequencies in the 500 kHz to 30 GHz make up the bulk of commercial use in the United States. Spectrum bands can be grouped into four categories: low-band (less than 1 GHz), lower mid-band (1-2 GHz), upper mid-band (primarily 2-4 GHz) and high-band (generally above 24 GHz). Radio frequencies have different characteristics with regard to the distance they will travel and their ability to penetrate structures. Lower band frequency bands require less power to travel large distances and propagate well providing geographic coverage, whereas higher bandwidth spectrum is favored in urban settings where the goal is increased data capacity and cell sites are dense, with limited coverage areas. Spectrum is licensed by geographic areas that can vary from the size of a county to significantly larger expanses. Licenses can cover densely populated urban areas to sparsely populated rural regions. Pricing for spectrum licenses will vary, sometimes significantly based on the frequency, population area or restrictions associated with the authorization for use obtained from the FCC. Population or “Pop” is a key input to valuing each geographic license. The amount of spectrum included in a license is measured in terms of megahertz, referred to as “MHz.” The wider the band the greater the MHz. The market approach assessed the value of our spectrum using benchmarks, based on market transactions, which may include spectrum auctions and secondary market transactions, either acquisitions of spectrum or of businesses for which spectrum values can reliably be inferred. The market approach looked at the value of each band of our spectrum by block and geographic area based on pairing the spectrum in a manner that yielded its highest and best use. Prices were then calculated on an amount per MHz-Pop basis (where the numerator is the total value of the licenses and the denominator is the product of the population and MHz) based upon the most relevant data points. Finally, a discount was applied to the analysis for lack of marketability on certain of our holdings based on sale restrictions associated with those specific bands. Our spectrum holdings include low-band, lower mid-band, upper mid-band (collectively referred to as “Low-Mid Band Licenses”) and high-band licenses. As part of our impairment assessment we performed the market approach during the fourth quarter of 2023 and concluded that the fair value of these licenses are substantially in excess of their carrying value. In 2022, management performed a quantitative assessment to determine whether the fair value of these licenses exceed the carrying amount. In our assessment, we performed the market approach and the income approach during the fourth quarter of 2022 and concluded that under both scenarios the fair value of these licenses are substantially in excess of their carrying value. In 2021, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of these licenses exceed the carrying amount. In our assessment, we considered several factors, including, among other things, the projected financial performance of our Wireless segment, the business enterprise value of our Wireless segment, and market transactions for wireless spectrum licenses including auction results. In assessing these factors, we considered both macroeconomic conditions and industry and market conditions. In contemplating all factors in their totality, we concluded that it is more likely than not that the fair value of these licenses exceeds their carrying amount. During 2023, 2022, and 2021, our multichannel video distribution and data service (“MVDDS”) wireless spectrum licenses were assessed as a single unit of accounting. For 2023, 2022 and 2021, management assessed these licenses qualitatively. Our qualitative assessment focused on recent auction results and historical market activity. We concluded that it is more likely than not that the fair value of these licenses exceeded their carrying amount. Changes in circumstances or market conditions could result in a write-down of any of the above Wireless spectrum licenses in the future. Goodwill Goodwill represents the excess of the consideration transferred over the estimated fair values of assets acquired and liabilities assumed as of the acquisition date. We test goodwill for impairment at the reporting unit level, which includes, among others, the SLING TV, DISH TV, Retail Wireless and 5G Network Deployment reporting units. Historically the majority of our goodwill relates to the Retail Wireless and 5G Network Deployment segments. We perform our annual impairment assessment for goodwill and other indefinite-lived intangible assets each year during the fourth quarter or more frequently if events or changes in circumstances indicate an impairment may be possible. W e may consider qualitative factors to assess if it is more likely than not that the fair value for goodwill is below the carrying amount. If we determine in the qualitative assessment that it is more likely than not that the fair value is less than its carrying value, We may also elect to bypass the qualitative assessment and perform a quantitative assessment. Our assessment process included, among other things, discounted cash flow analyses, consideration of fair values of tangible and indefinite-lived intangible assets held by the reporting units and our parent’s recent market capitalization. Our assessment indicated the goodwill attributed to certain acquisitions was no longer supported based on the sustained decrease in our parent’s market capitalization. As such, we recorded a total noncash impairment charge of approximately $225 million in “Impairment of long-lived assets and goodwill” on our Consolidated Statements of Operations and Comprehensive Income (Loss). No impairments were indicated for any reporting unit for the years ended December 31, 2022 and 2021. The following table presents the changes in the carrying amounts of go |
Supplemental Data - Statements
Supplemental Data - Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Data - Statements of Cash Flows | |
Supplemental Data - Statements of Cash Flows | 3. Supplemental Data - Statements of Cash Flows The following table presents certain supplemental cash flow and other non-cash data. See Note 8 for supplemental cash flow and non-cash data related to leases. For the Years Ended December 31, 2023 2022 2021 (In thousands) Cash paid for interest (including capitalized interest) $ 1,301,783 $ 1,044,276 $ 781,874 Cash received for interest 18,542 8,145 5,455 Cash paid for income taxes, net of (refunds) (8,138) 57,278 72,476 Capitalized interest (1) 1,291,290 1,040,971 821,455 Employee benefits paid in Class A common stock 14,680 26,348 30,321 Convertible debt reclassified per ASU 2020-06 — — 1,051,344 Deferred taxes reclassified per ASU 2020-06 — — 245,778 Vendor financing 87,343 108,048 26,627 FCC licenses reclassification — 122,657 915,449 Accrued capital expenditures 219,200 397,137 449,093 Asset retirement obligation 74,189 122,390 50,765 Revaluation of contingent liabilities — 47,916 — (1) See Note 2 for further information. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Other Comprehensive Income (Loss) | |
Other Comprehensive Income (Loss) | 4. Other Comprehensive Income (Loss) The following table presents the tax effect on each component of “Other comprehensive income (loss).” For the Years Ended December 31, 2023 2022 2021 Before Tax Net Before Tax Net Before Tax Net Tax (Expense) of Tax Tax (Expense) of Tax Tax (Expense) of Tax Amount Benefit Amount Amount Benefit Amount Amount Benefit Amount (In thousands) Foreign currency translation adjustments $ 356 $ (31) $ 325 $ (4,160) $ 710 $ (3,450) $ 1,787 $ (482) $ 1,305 Unrealized holding gains (losses) on available-for-sale securities (267) 65 (202) 191 (46) 145 (208) 49 (159) Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss) 304 (74) 230 (7) 2 (5) (13) 3 (10) Other comprehensive income (loss) $ 393 $ (40) $ 353 $ (3,976) $ 666 $ (3,310) $ 1,566 $ (430) $ 1,136 The “Accumulated other comprehensive income (loss)” is detailed in the following table, net of tax: Foreign Unrealized/ Currency Recognized Translation Gains Accumulated Other Comprehensive Income (Loss) Adjustment (Losses) Total (In thousands) Balance as of December 31, 2021 $ 446 $ (165) $ 281 Foreign currency translation adjustments (3,450) — (3,450) Other comprehensive income (loss) before reclassification — 145 145 Amounts reclassified from accumulated other comprehensive income (loss) — (5) (5) Balance as of December 31, 2022 $ (3,004) $ (25) $ (3,029) Foreign currency translation adjustments 325 — 325 Other comprehensive income (loss) before reclassification — (202) (202) Amounts reclassified from accumulated other comprehensive income (loss) — 230 230 Balance as of December 31, 2023 $ (2,679) $ 3 $ (2,676) |
Marketable Investment Securitie
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 12 Months Ended |
Dec. 31, 2023 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 5. Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities Our marketable investment securities, restricted cash and cash equivalents, and other investment securities consisted of the following: As of December 31, December 31, 2023 2022 (In thousands) Marketable investment securities: Current marketable investment securities: Strategic - available-for-sale $ 144 $ 144 Strategic - trading/equity 7,799 655 Other 179 835,184 Total current marketable investment securities 8,122 835,983 Restricted marketable investment securities (1) 19,772 41,689 Total marketable investment securities 27,894 877,672 Restricted cash and cash equivalents (1) 89,107 62,925 Other investment securities, net: Equity method investments 126,179 129,655 Cost method investments 3,448 750 Fair value method investments 39,198 37,795 Total other investment securities, net 168,825 168,200 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 285,826 $ 1,108,797 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Consolidated Balance Sheets. Marketable Investment Securities Our marketable investment securities portfolio may consist of debt and equity instruments. All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Stockholder’s Equity (Deficit),” net of related deferred income tax on our Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information. Current Marketable Investment Securities - Strategic Our current strategic marketable investment securities portfolio includes and may include strategic and financial debt and/or equity investments in private and public companies that are highly speculative and have experienced and continue to experience volatility. As of December 31, 2023, this portfolio consisted of securities of a small number of issuers, and as a result the value of that portfolio depends, among other things, on the performance of those issuers. The fair value of certain of the debt and equity securities in this portfolio can be adversely impacted by, among other things, the issuers’ respective performance and ability to obtain any necessary additional financing on acceptable terms, or at all. Current Marketable Investment Securities - Other Our current other marketable investment securities portfolio includes investments in various debt instruments including, among others, commercial paper, corporate securities and United States treasury and/or agency securities. Commercial paper consists mainly of unsecured short-term, promissory notes issued primarily by corporations with maturities ranging up to 365 days . Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months . U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies. Restricted Cash, Cash Equivalents and Marketable Investment Securities As of December 31, 2023 and 2022, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts. Other Investments, net We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investments, net” on our Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and are recorded at fair value. Generally, NagraStar L.L.C. We own a interest in NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Invidi Technologies Corporation . We own a interest in Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. Invidi contracts with multichannel video programming distributers to include its software in their respective set-top boxes and DVRs in order to deliver targeted advertisements based on a variety of demographic attributes selected by the advertisers. Invidi has also developed a cloud-based solution for internet protocol-based platforms. TerreStar Solutions, Inc. TSI’s wireless communications system is based on a satellite and ground-based technology, which provides communication services in hard-to-reach areas and provides a nationwide interoperable, survivable and critical communications infrastructure. TSI also holds and leases certain 2 GHz wireless spectrum licenses in Canada. We also hold investments that are not accounted for using the equity method of accounting, which are measured at fair value. Investments in equity securities without readily determinable fair values are accounted for at cost, less impairment, and adjusted for observable price changes for identical or similar investments of the same issuer. Our ability to realize value from our strategic investments in securities that are not publicly traded depends on, among other things, the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them. Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of December 31, 2023 December 31, 2022 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 347,976 $ 304,410 $ 43,566 $ — $ 1,620,458 $ 174,050 $ 1,446,408 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 7,567 $ 7,567 $ — $ — $ 22,824 $ 22,824 $ — $ — Commercial paper 7,500 — 7,500 — 696,324 — 696,324 — Corporate securities 4,705 — 4,705 — 156,380 — 156,380 — Other 323 — 179 144 1,489 — 1,345 144 Equity securities 7,799 7,799 — — 655 655 — — Total $ 27,894 $ 15,366 $ 12,384 $ 144 $ 877,672 $ 23,479 $ 854,049 $ 144 As of December 31, 2023, restricted and non-restricted marketable investment securities included debt securities of $20 m illion with contractual maturities within one year. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity. Derivative Instruments We have the option to purchase certain of T-Mobile’s 800 MHz spectrum licenses from T-Mobile at a fixed price. This instrument meets the definition of a derivative and is valued based upon, among other things, our estimate of the underlying asset price, the expected term, volatility, the risk free rate of return and the probability of us exercising the option. The instrument acquisition date fair value was $713 million. The derivative is remeasured quarterly. As of December 31, 2023 and 2022, the derivative’s fair value was ” on our Consolidated Balance Sheets. The change in the derivative’s carrying value was primarily driven by a decrease in our estimated probability of exercising the option to zero. All changes in the derivative’s fair value are recorded in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See the table below. On June 30, 2023, the United States Department of Justice, Antitrust Division (the “DOJ”) provided notice to the United States District Court for the District of Columbia (the “District Court”) that, pursuant to its discretion under the Final Judgment, it granted a 60-day extension of the deadline for T-Mobile to divest the 800 MHz spectrum licenses, which expired on August 30, 2023. On August 17, 2023, we filed a petition with the District Court seeking an extension of the deadline for T-Mobile to divest the 800 MHz spectrum licenses . On October 15, 2023, we and T-Mobile entered into an amendment to the License Purchase Agreement (the “Amendment”) that, among other things, extends the date by which we may purchase the 800 MHz spectrum licenses to April 1, 2024 (the “Extension”). In connection with the Extension, we agreed to make an upfront payment of million (the “Upfront Payment”) to T-Mobile. The Amendment also resolves all outstanding disputes between the parties with respect to the License Purchase Agreement. On October 25, 2023, we paid the The Amendment has been approved by the DOJ in accordance with the Stipulation and Order filed in the District Court on July 26, 2019 and the Final Judgment entered by the District Court on April 1, 2020. The Amendment became effective upon the District Court entering the Amended Final Judgment on October 23, 2023. The Upfront Payment is fully creditable against the purchase price in the event we exercise our option to purchase the 800 MHz spectrum licenses from T-Mobile. T-Mobile has the right (but not the obligation) to pursue an alternative offer between now and April 1, 2024 provided that we retain the first right to purchase the spectrum before April 1, 2024. 800 MHz spectrum licenses License Purchase Agreement Amendment. Throughout 2023, we were actively involved in negotiations with counterparties to obtain the financing necessary to exercise the 800 MHz purchase option. However, we have been unsuccessful in our attempts to reach terms for a definitive financing agreement. Due to the relatively short time remaining before the 800 MHz purchase option’s expiration on April 1, 2024, we no longer believe it is probable that we will exercise the option. Therefore, we reduced the probability weighted value of the spectrum option to zero. As a result of the probability weighted derivative’s fair value being zero, during the fourth quarter and the year ended December 31, 2023, a loss of $1.601 billion and $1.793 billion, respectively, (both including million prepayment previously made to T-Mobile) was recorded in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). We still maintain the right to exercise the purchase option until it expires on April 1, 2024. If we elect to exercise the option and purchase these licenses, we will record the licenses at fair value at that date in “ ” on our Consolidated Balance Sheets and record a corresponding gain, net of our exercise price, on our Consolidated Statements of Operations and Comprehensive Income (Loss). We account for our option to purchase certain T-Mobile’s 800 MHz spectrum licenses under the License Purchase Agreement as a Level 3 instrument within the fair value hierarchy. Gains and Losses on Sales and Changes in Carrying Amounts of Investments and Other “Other, net” within “Other Income (Expense)” included on our Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows: For the Years Ended December 31, Other, net: 2023 2022 2021 (In thousands) Marketable and non-marketable investment securities - realized and unrealized gains (losses) $ 4,085 $ 26,186 $ (3,137) Derivative instruments - net realized and/or unrealized gains (losses) (1) (1,793,387) 1,015,387 (13,000) Gains (losses) related to early redemption of debt (2) 73,024 (922) (3,587) Equity in earnings (losses) of affiliates (3,835) 2,616 (1,051) Other (21,763) (4,285) 41,332 Total $ (1,741,876) $ 1,038,982 $ 20,557 (1) The change in the derivative’s carrying value for the year ended December 31, 2023 was primarily driven by a decrease in our estimated probability of exercising the option. This amount includes the $100 million prepayment previously made to T-Mobile. (2) This change primarily resulted from repurchases of our Convertible Notes and 5 7/8% Senior Notes due 2024 during the year ended December 31, 2023. See Note 9 for further information. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Inventory | |
Inventory | 6. Inventory Inventory consisted of the following: As of December 31, December 31, 2023 2022 (In thousands) Finished goods $ 407,620 $ 447,322 Work-in-process and service repairs 35,464 19,351 Consignment (1) 47,723 14,792 Raw materials 6,251 20,908 Total inventory $ 497,058 $ 502,373 (1) This change primarily resulted from a distribution agreement related to certain Boost postpaid wireless devices. |
Property and Equipment and Inta
Property and Equipment and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment and Intangible Assets | |
Property and Equipment and Intangible Assets | 7. Property and Equipment and Intangible Assets Property and Equipment Property and equipment consisted of the following: Depreciable As of Life December 31, December 31, (In Years) 2023 2022 (In thousands) Equipment leased to customers 2 - 5 $ 1,181,193 $ 1,318,272 Satellites 6 - 15 1,718,865 1,718,865 Satellites acquired under finance lease agreements 15 344,447 344,447 Furniture, fixtures, equipment and other 2 - 20 908,924 903,190 5G Network Deployment equipment (1) 3 - 15 4,263,327 770,153 Software and computer equipment 2 - 6 2,111,305 1,666,962 Buildings and improvements 5 - 40 381,757 380,519 Land - 17,513 17,513 Construction in progress - 1,802,000 3,170,623 Total property and equipment 12,729,331 10,290,544 Accumulated depreciation (5,327,384) (4,650,425) Property and equipment, net $ 7,401,947 $ 5,640,119 (1) Includes 5G Network Deployment assets acquired under finance lease agreements. Construction in progress consisted of the following: As of December 31, December 31, 2023 2022 (In thousands) Pay-TV $ 162,055 $ 36,936 Retail Wireless — — 5G Network Deployment 1,639,945 3,133,687 Total construction in progress $ 1,802,000 $ 3,170,623 Depreciation and amortization expense consisted of the following: For the Years Ended December 31, 2023 2022 2021 (In thousands) Equipment leased to customers $ 166,950 $ 191,746 $ 244,755 Satellites 134,948 148,051 189,126 Buildings, furniture, fixtures, equipment and other 91,942 40,703 25,279 5G Network Deployment equipment 371,640 29,992 8,263 Software and computer equipment 235,820 153,040 93,119 Intangible assets and other amortization expense 180,621 153,541 164,310 Total depreciation and amortization $ 1,181,921 $ 717,073 $ 724,852 Cost of sales and operating expense categories included in our accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation and amortization expense related to satellites, equipment leased to customers, or our 5G Network Deployment equipment and software. Activity relating to our asset retirement obligations was as follows: As of December 31, 2023 2022 (In thousands) Balance at beginning of period $ 183,135 $ 51,551 Liabilities incurred 74,189 124,822 Accretion expense 20,963 6,762 Revision to estimated cash flows — — Balance at end of period $ 278,287 $ 183,135 Total included in Other long-term liabilities $ 278,287 $ 183,135 The corresponding assets, net of accumulated depreciation, related to asset retirement obligations were $217 million and $162 million as of December 31, 2023 and 2022, respectively. Satellites Pay-TV Segment Our Pay-TV segment currently utilizes nine satellites in geostationary orbit approximately 22,300 miles above the equator, seven of which we own and depreciate over their estimated useful life. We also lease satellites from third parties: As of July 2023, we no longer lease the Ciel II satellite. As of December 31, 2023, our Pay-TV segment satellite fleet consisted of the following: Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar X February 2006 110 N/A EchoStar XI July 2008 110 N/A EchoStar XIV March 2010 119 N/A EchoStar XV July 2010 61.5 N/A EchoStar XVI November 2012 61.5 N/A EchoStar XVIII June 2016 61.5 N/A EchoStar XXIII March 2017 110 N/A Under Construction: EchoStar XXV 2026 110 N/A Leased from Other Third-Party: Anik F3 April 2007 118.7 April 2025 Nimiq 5 September 2009 72.7 September 2024 Satellite Under Construction EchoStar XXV Satellite Anomalies Operation of our DISH TV services requires that we have adequate satellite transmission capacity for the programming that we offer. While we generally have had in-orbit satellite capacity sufficient to transmit our existing channels and some backup capacity to recover the transmission of certain critical programming, our backup capacity is limited. In the event of a failure or loss of any of our owned or leased satellites, we may need to acquire or lease additional satellite capacity or relocate one of our other owned or leased satellites and use it as a replacement for the failed or lost satellite. Such a failure could result in a prolonged loss of critical programming or a significant delay in our plans to expand programming as necessary to remain competitive and thus may have a material adverse effect on our business, financial condition and results of operations. In the past, certain of our owned and leased satellites have experienced anomalies, some of which have had a significant adverse impact on their remaining useful life and/or commercial operation. There can be no assurance that future anomalies will not impact the remaining useful life and/or commercial operation of any of the owned and leased satellites in our fleet. See Note 2 for further information on evaluation of impairment. There can be no assurance that we can recover critical transmission capacity in the event one or more of our owned or leased in-orbit satellites were to fail. We generally do not carry commercial launch or in-orbit insurance on any of the satellites that we own and therefore, we will bear the risk associated with any uninsured launch or in-orbit satellite failures. Intangible Assets As of December 31, 2023 and 2022, our identifiable intangibles subject to amortization consisted of the following: As of December 31, 2023 2022 Intangible Accumulated Intangible Accumulated Assets Amortization Assets Amortization (In thousands) Technology-based $ 63,766 $ (60,590) $ 63,545 $ (60,022) Trademarks 135,134 (71,640) 135,134 (61,007) Contract-based 41,500 (41,500) 41,500 (41,500) Customer relationships 628,598 (535,778) 628,598 (366,357) Total $ 868,998 $ (709,508) $ 868,777 $ (528,886) These identifiable intangibles are included in “Intangible assets, net” on our Consolidated Balance Sheets. Amortization of these intangible assets is recorded on a straight-line basis over an average finite useful life primarily ranging from approximately two to 20 years . Amortization was $181 million, $154 million and $164 million for the years ended December 31, 2023, 2022 and 2021, respectively. Estimated future amortization of our identifiable intangible assets as of December 31, 2023 is as follows (in thousands): For the Years Ended December 31, (In thousands) 2024 $ 95,641 2025 13,534 2026 11,838 2027 11,355 2028 10,872 Thereafter 16,029 Total $ 159,269 Goodwill Goodwill represents the excess of the consideration transferred over the estimated fair values of assets acquired and liabilities assumed as of the acquisition date and is not subject to amortization but is subject to impairment testing annually or whenever indicators of impairment arise. During the year ended December 31, 2023 we recorded a noncash impairment charge for goodwill of $225 million in “Impairment of long-lived assets and goodwill” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information. The non-recurring measurement of fair value of goodwill is classified as Level 3 in the fair value hierarchy. As of December 31, 2023 and 2022, our goodwill consisted of the following: As of December 31, December 31, 2023 2022 (In thousands) Pay-TV $ — $ 6,457 Retail Wireless — 98,657 5G Network Deployment — 119,903 Total goodwill $ — $ 225,017 Regulatory Authorizations – Pay-TV and 5G Network Deployment Segments As of December 31, 2023 and 2022, our Regulatory Authorizations with indefinite lives consisted of the following: As of December 31, 2023 2022 (In thousands) Owned: DBS Licenses $ 677,409 $ 677,409 700 MHz Licenses 711,871 711,871 AWS-4 Licenses 1,940,000 1,940,000 H Block Licenses 1,671,506 1,671,506 600 MHz Licenses 6,213,335 6,212,579 MVDDS Licenses 24,000 24,000 28 GHz Licenses 2,883 2,883 24 GHz Licenses 11,772 11,772 37 GHz, 39 GHz & 47 GHz Licenses 202,533 202,533 3550-3650 MHz Licenses 912,939 912,939 3.7-3.98 GHz Licenses 2,969 2,688 3.45-3.55 GHz Licenses 7,327,989 7,327,989 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz 972 — AWS-3 5,618,930 5,618,930 Subtotal 25,319,108 25,317,099 Noncontrolling Investments: SNR 4,271,459 4,271,459 Capitalized Interest (1) 8,523,682 7,344,515 Total $ 38,114,249 $ 36,933,073 (1) See Note 2 for further information. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 8. Leases Lessee Accounting We enter into non-cancelable operating and finance leases for, among other things, communication towers, satellites, office space, dark fiber and transport equipment, warehouses and distribution centers, vehicles and other equipment. Substantially all of our leases have remaining lease terms from one to 13 years , some of which include renewal options , and some of which include options to terminate the leases within one year . For certain arrangements (generally communication towers), the lease term includes the non-cancelable period plus the renewal period that we are reasonably certain to exercise. Through the first quarter of 2022, our Anik F3 and Nimiq 5 satellites were accounted for as finance leases within our Pay-TV segment. However, during April 2022, we extended the Anik F3 lease and as a result it is currently accounted for as an operating lease. Substantially all of our remaining leases are accounted for as operating leases. The components of lease expense were as follows: For the Years Ended December 31, 2023 2022 2021 (In thousands) Operating lease cost (1) $ 516,920 $ 332,385 $ 89,565 Short-term lease cost (2) 10,521 13,328 12,956 Finance lease cost: Amortization of right-of-use assets (3) 66,966 28,037 65,967 Interest on lease liabilities (3) 14,090 12,145 14,693 Total finance lease cost (3) 81,056 40,182 80,660 Total lease costs $ 608,497 $ 385,895 $ 183,181 (1) The increase in operating lease cost is primarily related to communication tower leases. (2) Leases that have terms of 12 months or less. (3) The decrease in finance lease cost for the year ended December 31, 2022 is primarily related to the QuetzSat-1 finance lease, which expired in November 2021, as well as the Anik F3 finance lease that was extended in April 2022 and as a result is currently accounted for as an operating lease. The increase in finance lease cost for the year ended December 31, 2023 is primarily related to equipment for our 5G Network Deployment. Supplemental cash flow information related to leases was as follows: For the Years Ended December 31, 2023 2022 2021 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 346,091 $ 163,320 $ 72,479 Operating cash flows from finance leases $ 13,400 $ 11,053 $ 12,868 Financing cash flows from finance leases $ 53,467 $ 42,617 $ 62,679 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 741,017 $ 1,398,050 $ 1,467,983 Finance leases $ 53,771 $ 66,312 $ — Supplemental balance sheet information related to leases was as follows: As of December 31, 2023 2022 (In thousands) Operating Leases: Operating lease assets (1) $ 2,934,862 $ 2,687,522 Other current liabilities (1) $ 301,172 $ 194,030 Operating lease liabilities (1) 2,992,863 2,687,883 Total operating lease liabilities (1) $ 3,294,035 $ 2,881,913 Finance Leases: Property and equipment, gross $ 465,549 $ 411,778 Accumulated depreciation (370,768) (303,802) Property and equipment, net $ 94,781 $ 107,976 Other current liabilities $ 56,459 $ 48,066 Other long-term liabilities 67,199 75,287 Total finance lease liabilities $ 123,658 $ 123,353 Weighted Average Remaining Lease Term: Operating leases 10.7 years 11.8 years Finance leases 2.2 years 2.7 years Weighted Average Discount Rate: Operating leases 9.5% 7.3% Finance leases 9.7% 9.8% (1) In the fourth quarter of 2023, we revised certain terms with a vendor supplying communication towers. The revision in terms resulted in a lease modification, which was not accounted for as a separate contract. On the measurement date, we reassessed the terms of the original agreement, including but not limited to the timing of future cash flows, the remaining economic life of the underlying asset, the discount rate and the lease classification. This resulted in a reduction to both the operating lease asset and operating lease liability by approximately $227 million, which is included in “Operating lease assets,” and “Operating lease liabilities” on our Consolidated Balance Sheets. Maturities of lease liabilities as of December 31, 2023 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2024 $ 423,347 $ 66,073 $ 489,420 2025 463,276 35,392 498,668 2026 495,472 36,588 532,060 2027 495,786 2,574 498,360 2028 454,612 — 454,612 Thereafter 3,067,035 — 3,067,035 Total lease payments 5,399,528 140,627 5,540,155 Less: Imputed interest (2,105,493) (16,969) (2,122,462) Total 3,294,035 123,658 3,417,693 Less: Current portion (301,172) (56,459) (357,631) Long-term portion of lease obligations $ 2,992,863 $ 67,199 $ 3,060,062 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt and Finance Lease Obligations | |
Long-Term Debt and Finance Lease Obligations | 9. Long-Term Debt and Finance Lease Obligations Fair Value of our Long-Term Debt The following table summarizes the carrying amount and fair value of our debt facilities as of December 31, 2023 and 2022: As of December 31, 2023 December 31, 2022 Issuer Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 5% Senior Notes due 2023 (1) DDBS $ — $ — $ 1,443,179 $ 1,441,635 2 3/8% Convertible Notes due 2024 (2) DISH 951,168 944,034 1,000,000 906,970 5 7/8% Senior Notes due 2024 (3) DDBS 1,982,544 1,872,275 2,000,000 1,870,940 0% Convertible Notes due 2025 (4) DISH 1,957,197 1,228,141 2,000,000 1,287,540 7 3/4% Senior Notes due 2026 DDBS 2,000,000 1,388,060 2,000,000 1,620,280 3 3/8% Convertible Notes due 2026 (5) DISH 2,908,801 1,570,753 3,000,000 1,894,230 5 1/4% Senior Secured Notes due 2026 DDBS 2,750,000 2,366,073 2,750,000 2,336,813 11 3/4% Senior Secured Notes due 2027 (6) DISH 3,500,000 3,668,980 2,000,000 2,071,240 7 3/8% Senior Notes due 2028 DDBS 1,000,000 600,160 1,000,000 708,320 5 3/4% Senior Secured Notes due 2028 DDBS 2,500,000 2,013,125 2,500,000 2,013,675 5 1/8% Senior Notes due 2029 DDBS 1,500,000 774,600 1,500,000 976,755 Other notes payable 113,564 113,564 138,303 138,303 Subtotal 21,163,274 $ 16,539,765 21,331,482 $ 17,266,700 Unamortized deferred financing costs and other debt discounts, net (67,215) (105,697) Finance lease obligations (7) 123,658 123,353 Total long-term debt and finance lease obligations (including current portion) $ 21,219,717 $ 21,349,138 (1) We had repurchased or redeemed the principal balance of our 5% Senior Notes due 2023 as of March 15, 2023, the instrument’s maturity date. (2) During the year ended December 31, 2023, we repurchased approximately $49 million of our 2 3/8% Convertible Notes due 2024 in open market trades. The remaining balance of approximately $951 million matured and was redeemed on March 15, 2024 . (3) During the year ended December 31, 2023, we repurchased approximately $17 million of our 5 7/8% Senior Notes due 2024 in open market trades. The remaining balance of approximately $1.983 billion matures on November 15, 2024 and is included in “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2023. (4) During the year ended December 31, 2023, we repurchased approximately $43 million of our 0% Convertible Notes due 2025 in open market trades. The remaining balance of approximately $1.957 billion matures on December 15, 2025 . (5) During the year ended December 31, 2023, we repurchased approximately $91 million of our 3 3/8% Convertible Notes due 2026 in open market trades. The remaining balance of approximately $2.909 billion matures on August 15, 2026 . (6) On January 26, 2023, we issued an additional $1.5 billion aggregate principal amount of our 11 3/4% Senior Secured Notes due 2027. (7) Disclosure regarding fair value of finance leases is not required. We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2). DISH DBS Unsecured Senior Notes Our Senior Notes are: ● general unsecured senior obligations of DISH DBS Corporation (“DISH DBS”); ● ranked equally in right of payment with all of DISH DBS’ and the guarantors’ existing and future unsecured senior debt; and ● ranked effectively junior to our and the guarantors’ current and future secured senior indebtedness up to the value of the collateral securing such indebtedness. The indentures related to our Senior Notes contain restrictive covenants that, among other things, impose limitations on the ability of DISH DBS and its restricted subsidiaries to: ● incur additional debt; ● pay dividends or make distributions on DISH DBS’ capital stock or repurchase DISH DBS’ capital stock; ● make certain investments; ● create liens or enter into sale and leaseback transactions; ● enter into transactions with affiliates; ● merge or consolidate with another company; and ● transfer or sell assets. In the event of a change of control, as defined in the related indentures, we would be required to make an offer to repurchase all or any part of a holder’s Senior Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon, to the date of repurchase. 5 7/8% Senior Notes due 2024 On November 20, 2014, we issued $2.0 billion aggregate principal amount of our ten-year 5 7/8% Senior Notes due November 15, 2024. Interest accrues at an annual rate of 5 7/8% and is payable semi-annually in cash, in arrears on May 15 and November 15 of each year. The 5 7/8% Senior Notes due 2024 are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 7 3/4% Senior Notes due 2026 On June 13, 2016, we issued $2.0 billion aggregate principal amount of our ten-year 7 3/4% Senior Notes due July 1, 2026. Interest accrues at an annual rate of 7 3/4% The 7 3/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 7 3/8% Senior Notes due 2028 On July 1, 2020, we issued $1.0 billion aggregate principal amount of our 7 3/8% Senior Notes due July 1, 2028. Interest accrues at an annual rate of 7 3/8% The 7 3/8% Senior Notes are redeemable, in whole or in part, at any time prior to July 1, 2023 at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. On or after July 1, 2023, we may redeem the Notes, in whole or in part, at any time at the redemption prices specified under the related indenture, together with accrued and unpaid interest. 5 1/8% Senior Notes due 2029 On May 24, 2021, we issued $1.5 billion aggregate principal amount of our 5 1/8% Senior Notes due June 1, 2029. Interest accrues at an annual rate of 5 1/8% The 5 1/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to June 1, 2024, we may also redeem up to 35% of the 5 1/8% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. Convertible Notes Merger with EchoStar In connection with the completion of the Merger, on December 31, 2023, at the Effective Time, the right of the holders of the Convertible Notes that were outstanding as of the completion of the Merger to convert each $1,000 principal amount of such Convertible Notes into shares of DISH Class A Common Stock was changed into a right to convert such principal amount of Convertible Notes into the number of shares of EchoStar Class A Common Stock that a holder of a number of shares of DISH Class A Common Stock equal to the applicable initial conversion rate (as defined in the applicable Indenture) would have been entitled to receive upon the completion of the Merger. Upon the completion of the Merger, each then-outstanding share of DISH Class A Common Stock was converted into the right to receive 0.350877 shares of EchoStar Common Stock, resulting in an adjusted initial conversion rate of 4.2677 for the 2 3/8% Convertible Notes due 2024, 8.5657 for the 0% Convertible Notes due 2025 and 5.3835 for the 3 3/8% Convertible Notes due 2026 for each $1,000 principal amount. As a result of the merger with EchoStar, we have reassessed the classification of the conversion features on all of our convertible debt, the note hedge and warrant transactions associated with the convertible notes due 2026. Historically we concluded that these financial instruments were not derivatives. However, as a result in the change of equity issuer (from us to our parent EchoStar) we concluded that the financial instruments are no longer indexed to their own equity and now require derivative accounting. Due to the conversion ratio associated with the merger, the strike prices on all associated financial instruments are significantly out of the money and have nominal value. We will reassess the value of these derivatives on a quarterly basis and record the change in fair value through “Other, net” within “Other Income (Expense)” included on our Consolidated Statements of Operations and Comprehensive Income (Loss). All amounts below represent the adjusted conversion rate. 2 3/8% Convertible Notes due 2024 On March 17, 2017, we issued $1.0 billion aggregate principal amount of the Convertible Notes due March 15, 2024 in a private placement. Interest accrues at an annual rate of 2 3/8% and is payable semi-annually in cash, in arrears on March 15 and September 15 of each year. The Convertible Notes due 2024 are: ● our general unsecured obligations; ● ranked senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Convertible Notes due 2024; ● ranked equally in right of payment with all of our existing and future unsecured senior indebtedness; ● ranked effectively junior to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; ● ranked structurally junior to all indebtedness and other liabilities of our subsidiaries; and ● not guaranteed by our subsidiaries. 0% Convertible Notes due 2025 On December 21, 2020, we issued $2.0 billion aggregate principal amount of the Convertible Notes due December 15, 2025 in a private placement. These notes will not bear interest, and the principal amount of the Notes will not accrete. The Convertible Notes due 2025 are: ● our general unsecured obligations; ● ranked senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Convertible Notes due 2025; ● ranked equally in right of payment with all of our existing and future unsecured senior indebtedness; ● ranked effectively junior to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; ● ranked structurally junior to all indebtedness and other liabilities of our subsidiaries; and ● not guaranteed by our subsidiaries. We may not redeem the Convertible Notes due 2025 prior to the maturity date. If a “fundamental change” (as defined in the related indenture) occurs prior to the maturity date of the Convertible Notes due 2025, holders may require us to repurchase for cash all or part of their The indenture related to the Convertible Notes due 2025 does not contain any financial covenants and does not restrict us from paying dividends, issuing or repurchasing our other securities, issuing new debt (including secured debt) or repaying or repurchasing our debt. Subject to the terms of the related indenture, the Convertible Notes due 2025 may be converted at an initial conversion rate of 8.566 shares of EchoStar’s Class A common stock per $1,000 principal amount of the Convertible Notes due 2025 (equivalent to an initial conversion price of approximately $116.74 per share of EchoStar’s Class A common stock) (the “Initial Conversion Rate”), at any time on or after July 15, 2025 through the second scheduled trading day preceding the maturity date. Holders of the Convertible Notes 15, 2025, but only upon the occurrence of specified events described in the related indenture. The conversion rate is subject to anti-dilution adjustments if certain events occur. Upon any conversion, EchoStar will settle its conversion obligation in cash, shares of EchoStar’s Class A common stock or a combination of cash and shares of EchoStar’s Class A common stock, at its election. 3 3/8% Convertible Notes due 2026 On August 8, 2016, we issued $3.0 billion aggregate principal amount of the Convertible Notes due August 15, 2026 in a private offering. Interest accrues at an annual rate of 3 3/8% and is payable semi-annually in cash, in arrears on February 15 and August 15 of each year. The Convertible Notes due 2026 are: ● our general unsecured obligations; ● ranked senior in right of payment to any future indebtedness that is expressly subordinated in right of payment to the Convertible Notes due 2026; ● ranked equally in right of payment with all of our existing and future unsecured senior indebtedness; ● ranked effectively junior to any of our existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; ● ranked structurally junior to all indebtedness and other liabilities of our subsidiaries; and ● not guaranteed by our subsidiaries. We may not redeem the Convertible Notes due 2026 prior to the maturity date. If a “fundamental change” (as defined in the related indenture) occurs prior to the maturity date of the Convertible Notes due 2026, holders may require us to repurchase for cash all or part of their The indenture related to the Convertible Notes due 2026 does not contain any financial covenants and does not restrict us from paying dividends, issuing or repurchasing our other securities, issuing new debt (including secured debt) or repaying or repurchasing our debt. Subject to the terms of the related indenture, the Convertible Notes due 2026 may be converted at an initial conversion rate of 5.383 shares of EchoStar’s Class A common stock per $1,000 principal amount of Convertible Notes due 2026 (equivalent to an initial conversion price of approximately $185.76 per share of EchoStar’s Class A common stock) (the “Initial Conversion Rate”), at any time on or after March 15, 2026 through the second scheduled trading day preceding the maturity date. Holders of the Convertible Notes 15, 2026, but only upon the occurrence of specified events described in the related indenture. The conversion rate is subject to anti-dilution adjustments if certain events occur. Upon any conversion, EchoStar will settle its conversion obligation in cash, shares of EchoStar’s Class A common stock or a combination of cash and shares of EchoStar’s Class A common stock, at its election. Convertible Note Hedge and Warrant Transactions Merger with EchoStar In addition, in connection with the completion of the Merger, on December 31, 2023, we and EchoStar entered into a warrant amendment letter agreement and warrant guarantee with each option counterparty, pursuant to which, at the Effective Time, each counterparty’s right to purchase shares of DISH Network Class A Common Stock pursuant to the applicable warrant transactions was changed into a right to purchase shares of EchoStar Class A Common Stock, and EchoStar guaranteed all of our obligations under the applicable warrant transactions. In connection with the offering of the Convertible Notes due 2026 , we entered into convertible note hedge transactions with certain option counterparties. The convertible note hedge transactions cover, subject to anti-dilution adjustments substantially similar to those applicable to the Convertible Notes per share. The total cost of the original convertible note hedge transactions was million. Concurrently with entering into the convertible note hedge transactions, we also entered into warrant transactions with each option counterparty whereby we sold to such option counterparty warrants to purchase, subject to customary anti-dilution adjustments, up to the same number of shares of our Class A common stock, which initially gives the option counterparties the option to purchase approximately million in cash proceeds from the original sale of these warrants. We will not be required to make any cash payments to each option counterparty or its affiliates upon the exercise of the options that are a part of the convertible note hedge transactions, but will be entitled to receive from them a number of shares of Class A common stock, an amount of cash or a combination thereof. This consideration is generally based on the amount by which the market price per share of Class A common stock, as measured under the terms of the convertible note hedge transactions, is greater than the strike price of the convertible note hedge transactions during the relevant valuation period under the convertible note hedge transactions. Additionally, if the market price per share of Class A common stock, as measured under the terms of the warrant transactions, exceeds the strike price of the warrants during the measurement period at the maturity of the warrants, we will owe each option counterparty a number of shares of Class A common stock in an amount based on the excess of such market price per share of Class A common stock over the strike price of the warrants. However, as specified under the terms of the warrant transactions, we may elect to settle the warrants in cash. DISH DBS Senior Secured Notes Our DISH DBS Senior Secured Notes are: ● general senior secured obligations of DISH DBS Corporation (“DISH DBS”); ● secured by security interests in substantially all existing and future tangible and intangible assets of DISH DBS and its principal operating subsidiaries on a first priority basis, subject to certain exceptions; ● ranked equally in right of payment with all of DISH DBS’ and the guarantors’ existing and future senior debt; ● ranked senior in right of payment and effectively senior to any of DISH DBS’ and the guarantors’ junior lien or unsecured debt to the extent of the value of the pledged collateral that secures the Senior Secured Notes; and ● ranked effectively junior to DISH DBS’ and the guarantors’ obligations that are secured by assets that are not part of the pledged collateral that secures the Senior Secured Notes, to the extent of the value of such assets. The indenture related to our DISH DBS Senior Secured Notes contain restrictive covenants that, among other things, impose limitations on the ability of DISH DBS and its restricted subsidiaries to: ● incur additional debt; ● pay dividends or make distributions on DISH DBS’ capital stock or repurchase DISH DBS’ capital stock; ● make certain investments; ● create liens or enter into sale and leaseback transactions; ● enter into transactions with affiliates; ● merge or consolidate with another company; and ● transfer or sell assets. In the event of a change of control, as defined in the related indenture, we would be required to make an offer to repurchase all or any part of a holder’s Senior Secured Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon, to the date of repurchase. 5 1/4% Senior Secured Notes due 2026 On November 26, 2021, we issued $2.750 billion aggregate principal amount of our 5 1/4% Senior Secured Notes due December 1, 2026. Interest accrues at an annual rate of 5 1/4% The 5 1/4% 5 1/4% Prior to December 1, 2024, we may also redeem up to 5 1/4% Senior Secured Notes due 2026 at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. At 5 1/4% 5 3/4% Senior Secured Notes due 2028 On November 26, 2021, we issued $2.5 billion aggregate principal amount of our 5 3/4% Senior Secured Notes due December 1, 2028. Interest accrues at an annual rate of 5 3/4% The 5 3/4% 5 3/4% Prior to December 1, 2024, we may also redeem up to 5 3/4% Senior Secured Notes due 2028 at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. At 5 3/4% Intercompany Loan The net proceeds from the offering of our 5 1/4% Senior Secured Notes due 2026 and our 5 3/4% Senior Secured Notes due 2028 (the “Senior Notes”) issued on November 26, 2021 were used by DISH DBS to make an intercompany loan to DISH Network pursuant to a Loan and Security Agreement dated November 26, 2021 (together with potential future advances to DISH Network, the “Intercompany Loan”) between DISH DBS and DISH Network in order to finance the purchase of wireless spectrum licenses and for general corporate purposes, including our 5G Network Deployment. The Intercompany Loan will mature in two tranches, with the first tranche maturing on December 1, 2026 (the “2026 Tranche”) and the second tranche maturing on December 1, 20 28 (the “2028 Tranche”). DISH DBS may make additional advances to DISH Network under the Intercompany Loan, and on February 11, 2022, DISH DBS advanced an additional $1.5 billion to DISH Network under the Intercompany Loan 2026 Tranche. Interest accrues and is payable semiannually, and interest payments with respect to the Intercompany Loan are, at our option, payable in kind for the first two years. In the third year, a minimum of 50% of each interest payment due with respect to each tranche of the Intercompany Loan must be paid in cash. Thereafter, interest payments must be paid in cash. Interest will accrue: (a) when paid in cash, at a fixed rate of 0.25% per annum in excess of the interest rate applicable to, in the case of the 2026 Tranche, the 5 1/4% Senior Secured Notes due 2026, and in the case of the 2028 Tranche, the 5 3/4% Senior Secured Notes due 2028 (each, the “Cash Accrual Rate” with respect to the applicable tranche); and (b) when paid in kind, at a rate of 0.75% per annum in excess of the Cash Accrual Rate for the applicable tranche. As of December 31, 2023, the total Intercompany Loan amount outstanding plus interest paid in kind was $7.496 billion. As of December 31, 2023, interest payments for the Intercompany Loan paid in cash totaled $105 million. In January 2024, the 2026 Tranche of $4.7 billion was assigned to EchoStar Intercompany Receivable Company L.L.C. , our parent, EchoStar’s, direct wholly-owned subsidiary, such that amounts owed in respect of the 2026 Tranche will now be paid by DISH Network to EchoStar Intercompany Receivable L.L.C. See Note 18 for further information. The cash proceeds of the Intercompany Loan of $6.750 billion were paid to the FCC in connection with Weminuche’s winning bids in Auction 110. As a result, the Intercompany Loan is secured by Weminuche’s interest in the wireless spectrum licenses acquired in Auction 110 with such cash proceeds up to the total loan amount outstanding including interest paid in kind. The remaining balance of our winning bids of approximately $455 million was paid from cash and marketable investment securities balances at that time, for a total of approximately $7.205 billion. Under certain circumstances, DISH Network wireless spectrum licenses (valued based upon a third-party valuation) may be substituted for the collateral. The Intercompany Loan is not included as collateral for the Senior Secured Notes, and the Senior Secured Notes are subordinated to DISH DBS’s existing and certain future unsecured notes with respect to certain realizations under the Intercompany Loan and any collateral pledged as security for the Intercompany Loan. DISH Network Senior Secured Notes Our DISH Network Senior Secured Notes are: ● senior unsecured obligations and guaranteed by certain restricted subsidiaries on a senior secured basis and certain other material subsidiaries; ● secured on a first priority basis by security interests, in favor of the secured parties, in the collateral, which consists primarily of interests in wireless spectrum licenses within the 600 MHz band (“the Spectrum Collateral”) owned by one of the secured guarantors and any additional subsidiaries of ours that may be added as guarantors from time to time and equity interests in the Spectrum Collateral guarantor(s) and DISH DBS; ● ranked equally in right of payment with all of our and the guarantor’s existing and future senior indebtedness; ● ranked senior in right of payment to any of our and the guarantors’ subordinated indebtedness and effectively senior to any of the Secured Guarantors unsecured indebtedness and indebtedness secured by junior liens on the collateral to the extent of the value of the collateral and effectively junior to all the existing and future obligations of any of our subsidiaries that are not Guarantors. ● ranked effectively junior to our obligations and the obligations of the guarantors that are secured by assets that do not constitute collateral to the extent of the value of such assets; The indenture related to our DISH Network Senior Secured Notes contain restrictive covenants that, among other things, impose limitations on our ability and certain of our subsidiaries to: ● incur additional debt; ● pay dividends or make distributions on our capital stock or repurchase our capital stock; ● make certain investments of Spectrum Collateral; ● create liens or enter into sale and leaseback transactions; ● enter into transactions with affiliates; ● merge or consolidate with another company; and ● transfer or sell assets. In the event of a change of control, as defined in the related indenture, we would be required to make an offer to repurchase all or any part of a holder’s DISH Network Senior Secured Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon, to the date of repurchase. 11 3/4% Senior Secured Notes due 2027 On November 15, 2022 and January 26, 2023, we issued $2.0 billion and $1.5 billion, respectively, aggregate principal amount of our 11 3/4% Senior Secured Notes due November 15, 2027. Interest accrues at an annual rate of 11 3/4% The 11 3/4% of their principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. At any time on or after May 15, 2025, we may redeem the 11 3/4% Senior Secured Notes due 2027, in whole at any time or in part from time to time, at the redemption prices specified in the related indenture, together with accrued and unpaid interest, if any, to the redemption date. Prior to May 15, 2025, we may also redeem up to 11 3/4% Pursuant to the related indenture, we are required to obtain an initial appraisal of the Spectrum Collateral by an independent appraiser (the “Initial Appraisal”) within 120 days following the issue date of the 11 3/4% Senior Secured Notes due 2027. As of January 17, 2023, the Initial Appraisal certified we had satisfied the requirements under the loan-to-value ratio (as defined in the Indenture). Based on the independent appraisal, the loan-to-value ratio was not greater than billion. We will also be required to obtain a second appraisal of the Spectrum Collateral (a “Second Appraisal”) within of the aggregate MHz-POPs of all such licenses constituting the Spectrum Collateral are forfeited to the Federal Communications Commission as a result of our failure to meet its buildout milestones with respect to such forfeited licenses. If we fail to deliver the Initial Appraisal or a Second Appraisal, as applicable, within 11 3/4% 11 3/4% If the loan-to-value ratio with respect to the Spectrum Collateral as of the date of the Initial Appraisal or the Second Appraisal, as applicable, is greater than 0.35 to 1.00, then within 60 days following the date of the delivery of the Initial Appraisal, or within 90 days following the date of the delivery of the Second Appraisal, as applicable, we will be required to add additional Spectrum Collateral guarantors and/or pledge (or cause to be pledged) cash or interests in additional wireless spectrum licenses as Spectrum Collateral to comply with the required loan-to-value ratio of 0.35 to 1.00. If we fail to add such additional Spectrum Collateral and/or pledge (or cause to be pledged) cash or interests in additional wireless spectrum licenses, we will be required to redeem an amount of 11 3/4% Interest on Long-Term Debt Annual Semi-Annual Debt Service Issuer Payment Dates Requirements (In thousands) 2 3/8% Convertible Notes due 2024 (1) DISH March 15 and September 15 $ 23,750 5 7/8% Senior Notes due 2024 (2) DDBS May 15 and November 15 $ 117,500 7 3/4% Senior Notes due 2026 DDBS January 1 and July 1 $ 155,000 3 3/8% Convertible Notes due 2026 DISH February 15 and August 15 $ 101,250 5 1/4% Senior Secured Notes due 2026 DDBS June 1 and December 1 $ 144,375 11 3/4% Senior Secured Notes due 2027 DISH May 15 and November 15 $ 411,250 7 3/8% Senior Notes due 2028 DDBS January 1 and July 1 $ 73,750 5 3/4% Senior Secured Notes due 2028 DDBS June 1 and December 1 $ 143,750 5 1/8% Senior Notes due 2029 DDBS June 1 and December 1 $ 76,875 (1) Our 2 3/8% Convertible Notes due 2024 matured and were redeemed on March 15, 2024 . (2) Our 5 7/8% Senior Notes due 2024 mature on November 15, 2024 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2023. M aterially all of our interest expense is being capitalized, including the interest expense associated with the amortization of the debt discounts on our Convertible Notes. See Note 2 for further information. Our ability to meet our debt service requirements will depend on, among other factors, the successful execution of our business strategy, which is subject to uncertainties and contingencies beyond our control. Other Long-Term Debt and Finance Lease Obligations Other long-term debt and finance lease obligations consisted of the following: As of December 31, 2023 2022 (In thousands) Satellites and other finance lease obligations $ 123,658 $ 123,353 Notes payable related to satellite vendor financing and other debt payable in installments through 2032 with interest rates ranging from approximately 0% to 11.4% 113,564 138,303 Total 237,222 261,656 Less: current portion (107,717) (104,011) Other long-term debt and finance lease obligations, net of current portion $ 129,505 $ 157,645 Finance Lease Obligations Anik F3. Anik F3, an FSS satellite, was launched and commenced commercial operation in April 2007. This satellite was previously accounted for as a finance lease and depreciated over the term of the satellite service agreement. We leased 100% of the Ku-band capacity on Anik F3 for an initial period of 15 years . During April 2022, we extended the Anik F3 lease and as a result it is currently accounted for as an operating lease. Nimiq 5 . On May 19, 2019, we entered into an agreement pursuant to which, on September 10, 2019, the satellite service agreement for Nimiq 5 was transferred to us. Nimiq 5 was launched in September 2009 and commenced commercial operation at the 72.7 degree west longitude orbital location during October 2009. This satellite is accounted for as a finance lease and depreciated over the term of the satellite service agreement. We lease of the capacity on Nimiq 5, and this lease expires in September 2024. Ciel II . Ciel II, a Canadian DBS satellite, was launched in December 2008 and commenced commercial operation in February 2009. This satellite was previously accounted for as a finance lease and depreciated over the term of the satellite service agreement, however, as a result of an amendment, which was effective during the first quarter 2019, Ciel II is now accounted for as an operating lease. We lease 100% of the capacity on Ciel II. The initial ten-year term expired in January 2019 and as a result of an amendment, we renewed this lease through July 2023. As of July 2023, we no longer lease the Ciel II satellite. Dell Finance Lease. The summary of future maturities of our outstanding long-term debt as of December 31, 2023 is included in the commitments table in Note 13. |
Income Taxes and Accounting for
Income Taxes and Accounting for Uncertainty in Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes and Accounting for Uncertainty in Income Taxes | |
Income Taxes and Accounting for Uncertainty in Income Taxes | 10. Income Taxes and Accounting for Uncertainty in Income Taxes Income Taxes Our income tax policy is to record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported on our Consolidated Balance Sheets, as well as probable operating loss, tax credit and other carryforwards. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that net deferred tax assets will not be realized. We periodically evaluate our need for a valuation allowance. Determining necessary valuation allowances requires us to make assessments about historical financial information as well as the timing of future events, including the probability of expected future taxable income and available tax planning opportunities. We file consolidated tax returns in the United States. The income taxes of domestic and foreign subsidiaries not included in the United States tax group are presented in our consolidated financial statements on a separate return basis for each tax paying entity. As of December 31, 2023, we had $267 million net operating loss carryforwards (“NOLs”) for federal income tax purposes and $286 million of NOL carryforwards for state income tax purposes, which are partially offset by a valuation allowance. In addition, there are million of tax benefits related to credit carryforwards which are partially offset by a valuation allowance. Portions of the state NOL and credit carryforwards expired in 2023. The components of the (benefit from) provision for income taxes were as follows: For the Years Ended December 31, 2023 2022 2021 (In thousands) Current (benefit) provision: Federal $ (29,307) $ (23,571) $ 126,435 State 29,254 59,690 31,944 Foreign 3,301 (7,118) 2,387 Total current (benefit) provision 3,248 29,001 160,766 Deferred (benefit) provision: Federal (293,666) 615,323 509,405 State (152,725) 85,045 86,822 Increase (decrease) in valuation allowance 71,481 2,367 5,817 Total deferred (benefit) provision (374,910) 702,735 602,044 Total (benefit) provision $ (371,662) $ 731,736 $ 762,810 Our $1.5 billion loss of “Income (loss) before income taxes” on our Consolidated Statements of Operations and Comprehensive Income (Loss) included income of $2 million related to our foreign operations. The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal tax rate: For the Years Ended December 31, 2023 2022 2021 % of pre-tax income/(loss) Statutory rate (21.0) 21.0 21.0 State income taxes, net of federal benefit (5.0) 3.1 2.9 Rates different than statutory 0.1 — — Increase (decrease) in valuation allowance 4.8 — 0.2 Tax credits (2.7) (0.5) (0.3) Impairments 0.7 — — Other, net (1.7) - (0.1) Total (benefit) provision for income taxes (24.8) 23.6 23.7 Deferred taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Significant components of deferred tax assets and liabilities were as follows: As of December 31, 2023 2022 (In thousands) Deferred tax assets: NOL, interest, credit and other carryforwards $ 1,054,749 $ 445,389 Accrued and prepaid expenses 866,277 672,854 Stock-based compensation 20,934 23,738 Unrealized (gains) losses on available for sale and other investments (1) 198,587 — Discount on convertible notes and convertible note hedge transaction, net 46,636 64,643 Deferred revenue 13,197 6,903 Total deferred tax assets 2,200,380 1,213,527 Valuation allowance (153,453) (81,972) Deferred tax asset after valuation allowance 2,046,927 1,131,555 Deferred tax liabilities: Depreciation (1,554,517) (1,374,276) Unrealized (gains) losses on available for sale and other investments (1) — (244,397) Regulatory authorizations and other intangible amortization (3,869,784) (3,400,772) Bases differences in partnerships and cost method investments (2) (1,179,888) (1,042,245) Total deferred tax liabilities (6,604,189) (6,061,690) Net deferred tax asset (liability) $ (4,557,262) $ (4,930,135) (1) Included in this line item are deferred taxes related to, among other things, changes in the probability weighted fair value of our option to purchase certain of T-Mobile’s 800 MHz spectrum licenses . See Note 5 for further information. (2) Included in this line item are deferred taxes related to, among other things, our noncontrolling investments in Northstar Spectrum and SNR HoldCo, including deferred taxes created by the tax amortization of the Northstar Licenses and SNR Licenses. See Note 2 for further information. Accounting for Uncertainty in Income Taxes In addition to filing federal income tax returns, we and one or more of our subsidiaries file income tax returns in all states that impose an income tax and a small number of foreign jurisdictions where we have immaterial operations. We are subject to United States federal, state and local income tax examinations by tax authorities for the years beginning in 2008 due to the carryover of previously incurred NOLs. We are currently under a federal income tax examination for years 2008 through 2011, 2013 through 2016, and 2018 through 2019. A reconciliation of the beginning and ending amount of unrecognized tax benefits included in “Long-term deferred revenue and other long-term liabilities” on our Consolidated Balance Sheets was as follows: For the Years Ended December 31, Unrecognized tax benefit 2023 2022 2021 (In thousands) Balance as of beginning of period $ 431,640 $ 388,837 $ 378,467 Additions based on tax positions related to the current year 3,601 35,180 303 Additions based on tax positions related to prior years 9,292 14,723 12,095 Reductions based on tax positions related to prior years (7,219) (7,100) (1,400) Reductions based on tax positions related to settlements with taxing authorities (834) — — Reductions based on tax positions related to the lapse of the statute of limitations (352) — (628) Balance as of end of period $ 436,128 $ 431,640 $ 388,837 We have $366 million in unrecognized tax benefits that, if recognized, could favorably affect our effective tax rate. We do not expect any material portion of this amount to be paid or settled within the next 12 months. Accrued interest and penalties on uncertain tax positions are recorded as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss). During the years ended December 31, 2023, 2022 and 2021, we recorded million in net interest and penalty expense to earnings, respectively. Accrued interest and penalties were million at December 31, 2023 and 2022, respectively. The above table excludes these amounts . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans | |
Employee Benefit Plans | 11. Employee Benefit Plans Employee Stock Purchase Plan Our employees may participate in the EchoStar employee stock purchase plan (the “ESPP”), in which EchoStar is authorized to issue up to 5.0 million shares of Class A common stock. At December 31, 2023, EchoStar had 0.5 million shares of Class A common stock which remain available for issuance under the ESPP. Substantially all full-time employees who have been employed by EchoStar for at least one calendar quarter are eligible to participate in the ESPP. Employee stock purchases are made through payroll deductions. Under the terms of the ESPP, employees may not deduct an amount which would permit such employee to purchase EchoStar’s capital stock under all of EchoStar’s stock purchase plans at a rate which would exceed $25,000 in fair value of capital stock in any one year. The purchase price of the stock is 85% of the closing price of EchoStar’s Class A common stock on the last business day of each calendar quarter in which such shares of EchoStar’s Class A common stock are deemed sold to an employee under the ESPP. 401(k) Employee Savings Plans EchoStar sponsors a 401(k) Employee Savings Plan (the “DISH Network 401(k) Plan”) for our eligible employees. Voluntary employee contributions to the DISH Network 401(k) Plan may be matched per employee. Forfeitures of unvested participant balances which are retained by the DISH Network 401(k) Plan may be used to fund matching and discretionary contributions. EchoStar’s Board of Directors may also authorize an annual discretionary contribution to the DISH Network 401(k) Plan, subject to the maximum deductible limit provided by the Internal Revenue Code of 1986, as amended. These contributions may be made in cash or in EchoStar’s stock. The following table summarizes the expense associated with our matching contributions and discretionary contributions: For the Years Ended December 31, Expense Recognized Related to the 401(k) Plan 2023 2022 2021 (In thousands) Matching contributions, net of forfeitures $ 14,532 $ 12,800 $ 8,912 Discretionary stock contributions, net of forfeitures $ 70 $ 14,564 $ 26,383 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation | |
Stock-Based Compensation | 12. Stock-Based Compensation Merger with EchoStar Upon the completion of the Merger with EchoStar, EchoStar adopted all of DISH Network’s stock compensation plans. At the Effective Time, each DISH Network stock option outstanding immediately prior to the Effective Time was converted automatically into an EchoStar stock option on substantially the same terms and conditions (including, if applicable, with respect to any performance-based vesting, subject to certain adjustments that may be made pursuant to the terms of the Amended Merger Agreement and to the extent necessary to reflect the consummation of the Merger and the other transactions contemplated by the Amended Merger Agreement), with respect to a number of shares of EchoStar Class A Common Stock equal to (i) the number of shares of DISH Network Common Stock subject to the corresponding DISH Network stock option immediately prior to the Effective Time, multiplied by (ii) the Exchange Ratio (with the resulting number rounded down to the nearest whole share), at an exercise price (rounded up to the nearest whole cent) equal to the exercise price of the corresponding DISH Network stock option immediately prior to the Effective Time divided by the Exchange Ratio. At the Effective Time, each DISH Network restricted stock unit award outstanding immediately prior to the Effective Time was converted automatically into an EchoStar restricted stock unit award on substantially the same terms and conditions, with respect to a number of shares of EchoStar Class A Common Stock equal to (i) the number of shares of DISH Network Common Stock subject to the corresponding DISH Network restricted stock unit award immediately prior to the Effective Time, multiplied by (ii) the Exchange Ratio (with the resulting number rounded to the nearest whole share). Stock Incentive Plans All information below includes the Merger conversion discussed above. EchoStar maintains stock incentive plans to attract and retain officers, directors and key employees. Our employees participate in the EchoStar stock incentive plans. Stock awards under these plans include both performance/market and non-performance based stock incentives. As of December 31, 2023, EchoStar had outstanding under these plans stock options to acquire 9.9 million shares of EchoStar’s Class A common stock and 49 thousand restricted stock units and awards associated with our employees. Stock options granted on or prior to December 31, 2023 were granted with exercise prices equal to or greater than the market value of EchoStar’s Class A common stock at the date of grant and with a maximum term of approximately ten years . EchoStar accounts for forfeitures as they are incurred. While historically EchoStar has issued stock awards subject to vesting, typically at the rate of 20% per year, certain stock awards have been granted with immediate vesting and certain other stock awards vest only upon the achievement of certain EchoStar-specific subscriber, operational and/or financial goals. In addition, the Ergen 2020 Performance Award is subject to the achievement of specified EchoStar Class A common stock price targets. As of December 31, 2023, EchoStar had 17.2 million shares of its Class A common stock available for future grant under the DISH Network stock incentive plans. Exchange offer . On June 24, 2022, DISH Network commenced a tender offer to our eligible employees (which excludes our co-founders and the independent members of our Board of Directors, at that time) to exchange eligible stock options (which excludes the Ergen 2020 Performance Award) for new options “Exchange Offer”), to, among other things, further align our employee incentives with the current market. The Exchange Offer expired on July 22, 2022. As a result of the Exchange Offer, the exercise price of approximately . Stock Award Activity EchoStar stock option activity associated with our employees was as follows: For the Year Ended December 31, 2023 Options Weighted- Average Exercise Price Aggregate intrinsic value Weighted- Average Remaining Contractual Life Total options outstanding, beginning of period 10,494,032 $ 74.66 Granted 790,526 $ 28.24 Exercised — $ — Forfeited and cancelled (1) (1,397,228) $ 78.85 Total options outstanding, end of period 9,887,330 $ 70.36 $ — 7.21 Performance/market based options outstanding, end of period (2) 4,631,083 $ 84.20 Exercisable at end of period 2,893,380 $ 65.85 $ — 6.85 (1) Includes the cancellation of the 2013 LTIP. See discussion below . (2) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2017 LTIP, 2019 LTIP, 2022 Incentive Plan, Ergen 2020 Performance Award and Other Employee Performance Awards below. We realized tax benefits from stock awards exercised as follows: For the Years Ended December 31, 2023 2022 2021 (In thousands) Tax benefit from stock awards exercised $ 1,384 $ 573 $ 4,153 EchoStar restricted stock unit and award activity associated with our employees was as follows: For the Year Ended December 31, 2023 Restricted Stock Units/Awards Weighted- Average Grant Date Fair Value Total restricted stock units/awards outstanding, beginning of period 502,804 $ 101.03 Granted 5,776 $ 17.50 Vested (275,100) $ 93.32 Forfeited and cancelled (184,835) $ 110.50 Total restricted stock units/awards outstanding, end of period 48,645 $ 98.78 The following table summarizes additional information about EchoStar stock options and restricted stock units and awards associated with our employees: For the Years Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) Stock options: Weighted-average grant date fair value of options granted $ 28.24 $ 63.90 $ 112.76 Intrinsic value of options exercised (1) $ — $ 98 $ 16,029 Restricted stock units and awards: Weighted-average grant date fair value of units and awards granted $ 17.50 $ 88.39 $ 120.86 Fair value of units and rewards vested (1) $ 5,612 $ 2,212 $ 980 (1) Intrinsic value and fair value is based on the closing market price of EchoStar’s Class A Common Stock on December 31, 2023. Long-Term Performance-Based Plans 2013 LTIP. During 2013, EchoStar adopted a long-term, performance-based stock incentive plan (the “2013 LTIP”). The 2013 LTIP provides stock options and restricted stock units in combination, which vest based on certain EchoStar-specific subscriber and financial performance conditions. Exercise of the stock awards is contingent on achieving these performance conditions by September 30, 2022. This plan expired on January 1, 2023 which resulted in the cancellation of 2017 LTIP. On December 2, 2016, EchoStar adopted a long-term, performance-based stock incentive plan (the “2017 LTIP”). The 2017 LTIP provided stock options, which were subject to vesting based on certain EchoStar-specific subscriber and financial performance conditions. Awards were initially granted under the 2017 LTIP as of January 1, 2017. Exercise of the stock awards was contingent on achieving these performance conditions by December 31, 2020, however, none of the performance conditions were achieved. 2019 LTIP. Although no awards vest until EchoStar attains the performance conditions described above, compensation related to the 2019 LTIP will be recorded based on EchoStar’s assessment of the probability of meeting the performance conditions. If the performance conditions are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the performance condition. During the years ended December 31, 2023, 2022 and 2021, EchoStar determined that 85%, 89% and 90% , respectively, of the 2019 LTIP performance conditions were probable of achievement. As a result, non-cash, stock-based compensation expense was recorded for the years ended December 31, 2023, 2022 and 2021, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2023, 2022 and 2021, approximately , respectively, of the 2019 LTIP awards had vested. 2022 Incentive Plan. financial performance conditions. Awards were initially granted under the 2022 1, 2022. Exercise of the stock awards is contingent on achieving these conditions by December 31, 2026. Although no awards vest until EchoStar attains the performance conditions described above, compensation related to the 2022 Incentive Plan will be recorded based on EchoStar ’s assessment of the probability of meeting the performance conditions. If the performance conditions are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the performance condition. During the year ended December 31, 2023, EchoStar determined that 100% of the 2022 Incentive Plan performance conditions were probable of achievement. As a result, non-cash, stock-based compensation expense was recorded for the years ended December 31, 2023 as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2023 and 2022, approximately of the 2022 Incentive Plan awards had vested. Ergen 2020 Performance Award. On November 4, 2020, our Executive Compensation Committee of the Board of Directors, at that time, approved an award to Charles W. Ergen, our Chairman, of long-term performance-based options (the “Ergen 2020 Performance Award”) to purchase up to 4,385,962 shares of EchoStar’s Class A common stock. The award is subject to the achievement of specified EchoStar Class A common stock price targets during the approximate ten-year period following the date of grant. The award was granted on November 6, 2020 and will expire on February 6, 2031. Although no awards will vest until the market conditions are satisfied, as of December 31, 2020, we began recording non-cash, stock-based compensation expense for each vesting tranche based on the estimated achievement date of the specified stock price target. The valuation and probability of achievement for each tranche is determined using a Monte Carlo simulation. The same Monte Carlo simulation is used as the basis for determining the expected achievement date. As the probability of achievement is factored in as part of the Monte Carlo simulation, the expense for these tranches will be recognized concurrently over each tranche’s estimated achievement date even if some or all of the options never vest. If the related milestone for a tranche is achieved earlier than is expected, all unamortized expense for such tranche will be recognized immediately. 31, 2023, 2022 and 2021, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2023, 2022 and 2021, approximately awards had vested. Other Employee Performance Awards. In addition to the above long-term, performance stock incentive plans, EchoStar has other stock awards that vest based on certain other EchoStar-specific subscriber, operational and/or financial performance conditions. Exercise of these stock awards is contingent on achieving certain performance conditions. Additional compensation related to these awards will be recorded based on EchoStar’s assessment of the probability of meeting the remaining performance conditions. If the remaining performance conditions are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the performance condition. See the table below titled “Estimated Remaining Non-Cash, Stock-Based Compensation Expense.” Although no awards vest until the performance conditions are attained, EchoStar determined that certain performance conditions described above were probable of achievement and, as a result, we recorded non-cash, stock-based compensation expense for the years ended December 31, 2023, 2022 and 2021, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” The non-cash, stock-based compensation expense associated with these awards for our employees was as follows: For the Years Ended December 31, Non-Cash, Stock-Based Compensation Expense Recognized (1) 2023 2022 2021 (In thousands) 2022 Incentive Plan $ 7,346 $ 19,088 $ — 2019 LTIP (1,903) (97) 489 2013 LTIP — — (13,610) Ergen 2020 Performance Award 12,308 12,308 34,513 Other employee performance awards 462 4,502 9,033 Total non-cash, stock-based compensation expense recognized for performance based awards $ 18,213 $ 35,801 $ 30,425 (1) “Non-Cash, Stock-Based Compensation Expense Recognized” includes actual forfeitures. Estimated Remaining Non-Cash, Stock-Based Compensation Expense 2022 Incentive Plan 2019 LTIP Ergen 2020 Performance Award Other Employee Performance Awards (In thousands) Expense estimated to be recognized during 2024 $ 2,119 $ — $ 10,816 $ — Estimated contingent expense subsequent to 2024 1,114 — 16,913 — Total estimated remaining expense over the term of the plan $ 3,233 $ — $ 27,729 $ — Given the competitive nature of EchoStar’s business, small variations in subscriber churn, gross new subscriber activation rates and certain other factors can significantly impact subscriber growth. Consequently, while it was determined that achievement of certain other EchoStar-specific subscriber, operational and/or financial performance conditions were not probable as of December 31, 2023, that assessment could change in the future. Of the 9.9 million stock options and 49 thousand restricted stock units and awards outstanding under the EchoStar stock incentive plans associated with our employees as of December 31, 2023, the following awards were outstanding pursuant to the performance-based stock incentive plans: As of December 31, 2023 Performance Based Stock Options Number of Awards Weighted- Average Grant Price 2022 Incentive Plan 401,828 $ 50.78 2019 LTIP 248,758 $ 60.04 2017 LTIP 471,727 $ 164.20 Ergen 2020 Performance Award 3,508,770 $ 78.98 Total 4,631,083 $ 84.20 Stock-Based Compensation Total non-cash, stock-based compensation expense for all of our employees is shown in the following table for the years ended December 31, 2023, 2022 and 2021 and was allocated to the same expense categories as the base compensation for such employees: For the Years Ended December 31, 2023 2022 2021 (In thousands) Cost of services $ 2,609 $ 6,511 $ 4,365 Selling, general and administrative 33,534 64,939 47,315 Total non-cash, stock-based compensation $ 36,143 $ 71,450 $ 51,680 As of December 31, 2023, our total unrecognized compensation cost related to our non-performance based unvested stock awards was $50 million and will be recognized over a weighted-average period of approximately 8.6 years. Share-based compensation expense is recognized based on stock awards ultimately expected to vest. Valuation The fair value of each stock option granted (excluding the Ergen 2020 Performance Award) for the years ended December 31, 2023, 2022 and 2021 was estimated at the date of the grant using a Black-Scholes option valuation model with the following assumptions: For the Years Ended December 31, Stock Options 2023 2022 2021 Risk-free interest rate 3.58 % - 4.61 % 1.35 % - 4.02 % 0.48 % - 1.11 % Volatility factor 34.30 % - 41.25 % 32.67 % - 34.84 % 29.91 % - 34.51 % Expected term of options in years 4.1 - 6.6 4.1 - 6.0 4.0 - 5.9 Fair value of options granted $ 7.40 - $ 7.77 $ 5.97 - $ 9.27 $ 6.20 - $ 8.32 While EchoStar currently does not intend to declare dividends on its Class A common stock, EchoStar may elect to do so from time to time. Accordingly, the dividend yield percentage used in the Black-Scholes option valuation model was set at for all periods. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded stock options which have no vesting restrictions and are fully transferable. Consequently, our estimate of fair value may differ from other valuation models. Further, the Black-Scholes option valuation model requires the input of highly subjective assumptions. Changes in these subjective input assumptions can materially affect the fair value estimate. We will continue to evaluate the assumptions used to derive the estimated fair value of EchoStar’s stock options as new events or changes in circumstances become known. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 13. Commitments and Contingencies Commitments As of December 31, 2023, future maturities of our long-term debt, finance lease and contractual obligations are summarized as follows: Payments due by period Total 2024 2025 2026 2027 2028 Thereafter (In thousands) Long-term debt obligations $ 21,163,274 $ 2,984,970 $ 1,985,772 $ 7,669,305 $ 3,511,107 $ 3,502,529 $ 1,509,591 Interest expense on long-term debt 4,490,593 1,237,046 1,106,622 1,105,276 707,126 294,971 39,552 Finance lease obligations (1) 123,658 56,459 30,381 34,290 2,528 — — Interest expense on finance lease obligations (1) 16,969 9,614 5,011 2,298 46 — — Other long-term obligations (2) 13,406,816 2,886,529 2,198,229 1,913,876 1,158,515 1,013,256 4,236,411 Operating lease obligations (1) 5,399,528 423,347 463,276 495,472 495,786 454,612 3,067,035 Purchase obligations 2,086,259 2,052,898 27,268 5,756 337 — — Total $ 46,687,097 $ 9,650,863 $ 5,816,559 $ 11,226,273 $ 5,875,445 $ 5,265,368 $ 8,852,589 (1) See Note 8 for further information on leases. (2) Represents minimum contractual commitments related to communication tower obligations, certain 5G Network Deployment commitments, obligations under the NSA with AT&T and the MNSA with T-Mobile, certain wireless device purchases and marketing obligations, radios, software and integration services and satellite related and other obligations. In certain circumstances the dates on which we are obligated to make these payments could be delayed. The table above does not include $436 million of liabilities associated with unrecognized tax benefits that were accrued, as discussed in Note 10 and are included on our Consolidated Balance Sheets as of December 31, 2023. We do The table above does not include all potential expenses we expect to incur for our 5G Network Deployment. We currently expect capital expenditures, excluding capitalized interest, Agreements in Connection with the Asset Purchase Agreement On July 1, 2020, we completed the Boost Mobile Acquisition. In connection with the closing of the Boost Mobile Acquisition, we and T-Mobile entered into, among other things, a spectrum purchase agreement for the option to purchase all of Sprint’s 800 MHz spectrum licenses for approximately $3.59 billion (“License Purchase Agreement”). The billion is not included in “Other long-term obligations” above. If we elect to not exercise the option to purchase the 800 MHz spectrum licenses pursuant to the License Purchase Agreement or it expires, we were potentially subject to pay T-Mobile a fee of approximately million per the License Purchase Agreement, under certain circumstances. In conjunction with the Amendment that modifies the License Purchase Agreement, discussed below, the On June 30, 2023, the DOJ provided notice to the District Court that, pursuant to its discretion under the Final Judgment, it granted a 60-day extension of the deadline for T-Mobile to divest the 800 MHz spectrum licenses, which expired on August 30, 2023. On August 17, 2023, we filed a petition with the District Court seeking an extension of the deadline for T-Mobile to divest the 800 MHz spectrum licenses. On October 15, 2023, we and T-Mobile entered into the Amendment that, among other things, provides the Extension. In connection with the Extension, we agreed to make an Upfront Payment of $100 million to T-Mobile. The Amendment also resolves all outstanding disputes between the parties with respect to the License Purchase Agreement. On October 25, 2023, we paid the $100 million Upfront Payment to T-Mobile. The Amendment has been approved by the DOJ in accordance with the Stipulation and Order filed in the District Court on July 26, 2019 and the Final Judgment entered by the District Court on April 1, 2020. The Amendment became effective upon the District Court entering the Amended Final Judgment on October 23, 2023. The Upfront Payment is fully creditable against the purchase price in the event we exercise our option to purchase the 800 MHz spectrum licenses from T-Mobile. T-Mobile has the right (but not the obligation) to pursue an alternative offer between now and April 1, 2024 provided that we retain the first right to purchase the spectrum before April 1, 2024. If we elect to not exercise the option to purchase the 800 MHz spectrum licenses pursuant to the License Purchase Agreement or it expires, T-Mobile will retain the $100 million Upfront Payment per the Amendment. Wireless – 5G Network Deployment We have invested a total of over $30 billion in Wireless spectrum licenses, which includes over $10 billion in initial noncontrolling investments in certain entities. The We will need to raise additional capital in the future, which may not be available on favorable terms, to fund the efforts described below, as well as, among other things, make any potential Northstar Re-Auction Payment and SNR Re-Auction Payment for the AWS-3 licenses retained by the FCC. There can be no assurance that we will be able to profitably deploy these Wireless spectrum licenses, which may affect the carrying amount of these assets and our future financial condition or results of operations. Wireless Spectrum Licenses These Wireless spectrum licenses are subject to certain build-out requirements, as well as certain renewal requirements that are summarized in the table below: Carrying Build-Out Deadlines Expiration Amount Interim Final Date (In thousands) Owned: DBS Licenses (1) $ 677,409 700 MHz Licenses (2) 711,871 June 14, 2025 (3) June 2033 AWS-4 Licenses (2) 1,940,000 June 14, 2025 (3) June 2033 H Block Licenses (2) 1,671,506 June 14, 2025 (4) June 2033 600 MHz Licenses 6,213,335 June 14, 2025 (5) June 2029 MVDDS Licenses (1) 24,000 July 2024 LMDS Licenses (1) — September 2028 28 GHz Licenses 2,883 October 2, 2029 (6) October 2029 24 GHz Licenses 11,772 December 11, 2029 (6) December 2029 37 GHz, 39 GHz and 47 GHz Licenses 202,533 June 4, 2030 (6) June 2030 3550-3650 MHz Licenses 912,939 March 12, 2031 (6) March 2031 3.7-3.98 GHz Licenses 2,969 July 23, 2029 (6) July 23, 2033 (6) July 2036 3.45–3.55 GHz Licenses 7,327,989 May 4, 2026 (6) May 4, 2030 (6) May 2037 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz (2) 972 March 2026 AWS-3 (8) 5,618,930 October 2025 (7) October 2025 (7) Subtotal 25,319,108 Noncontrolling Investments: SNR (9) 4,271,459 October 2025 (7) October 2025 (7) Capitalized Interest (10) 8,523,682 Total as of December 31, 2023 $ 38,114,249 (1) The build-out deadlines for these licenses have been met. (2) The interim build-out deadlines for these licenses are in the past. (3) In a July 14, 2023 filing to the FCC, we certified that we were offering 5G broadband service to at least 70% of the United States population as of June 14, 2023, and certified to meeting other FCC related commitments. As a result of us providing 5G broadband service to over 50% of the U.S. population by June 14, 2023, the final build-out deadlines have been extended automatically to June 14, 2025. For these licenses, we must offer 5G broadband service to at least 70% of the population in each Economic Area (which is a service area established by the FCC). On September 29, 2023, the FCC confirmed we have met all of our June 14, 2023 band-specific 5G deployment commitments, and two of our three nationwide 5G commitments. The single remaining 5G commitment, that at least 70% of the U.S. population has access to average download speeds equal to 35 Mbps, was confirmed using the drive test methodology agreed to and approved by the FCC and overseen by an independent monitor. (4) In a July 14, 2023 filing to the FCC, we certified that we were offering 5G broadband service to at least 70% of the United States population as of June 14, 2023, and certified to meeting other FCC related commitments. As a result of us providing 5G broadband service to over 50% of the U.S. population by June 14, 2023, the final build-out deadlines have been extended automatically to June 14, 2025. For these licenses, we must offer 5G broadband service to at least 75% of the population in each Economic Area (which is a service area established by the FCC). On September 29, 2023, the FCC confirmed we have met all of our June 14, 2023 band-specific 5G deployment commitments, and two of our three nationwide 5G commitments. The single remaining 5G commitment, that at least 70% of the U.S. population has access to average download speeds equal to 35 Mbps, was confirmed using the drive test methodology agreed to and approved by the FCC and overseen by an independent monitor. (5) For these licenses, we must offer 5G broadband service to at least 75% of the population in each Partial Economic Area (which is a service area established by the FCC) by this date. We have also acquired certain additional 600 MHz licenses through private transactions. These licenses are currently subject to their original FCC buildout deadlines. (6) There are a variety of build-out options and associated build-out metrics associated with these licenses. (7) For these licenses, we must provide reliable signal coverage and offer service to at least 75% of the population of each license area by this date. The AWS-3 interim build-out requirement was not met and as a result, the AWS-3 expiration date and the AWS-3 final build-out requirement have been accelerated by two years (from October 2027 to October 2025) for each AWS-3 License area for which we did not meet the requirement. (8) On October 12, 2023, the FCC consented to the sale of Northstar Manager’s ownership interests in Northstar Spectrum, which we purchased for a total of approximately $109 million. This purchase resulted in the elimination of all of our noncontrolling investment as it related to Northstar Spectrum as of the purchase date and we continue to consolidate the Northstar Entities as wholly-owned subsidiaries . (9) Subsequent to December 31, 2023, the FCC consented to the sale of SNR Wireless Management’s ownership interests in SNR HoldCo, which was purchased by our parent’s direct wholly-owned subsidiary EchoStar SNR HoldCo L.L.C. for a total of approximately $442 million on February 16, 2024. This purchase resulted in the conversion of our outstanding redeemable noncontrolling interest as it relates to SNR HoldCo to noncontrolling interest, which is now held by our parent, EchoStar, as of the purchase date. (10) See Note 2 for further information. Commercialization of Our Wireless Spectrum Licenses and Related Assets. We plan to commercialize our Wireless spectrum licenses through our 5G Network Deployment. We have committed to deploy our 5G Network capable of serving increasingly larger portions of the U.S. population at different deadlines, including 20% of the U.S. population by June 2022 and 70% by June 2023. of the U.S. population but less than 70% of the U.S. population June 2023 deadline will be extended automatically to June 2025; however, as a result, we may, under certain circumstances, potentially be subject to certain penalties. On June 14, 2022, we announced we had successfully reached our 20% population coverage requirement. of the U.S. population We currently expect capital expenditures, excluding capitalized interest, for our 5G Network Deployment to be approximately . See Note 2 for further information. As a result of us providing 5G broadband service to over 50% of the U.S. population by June 14, 2023, the final build-out deadlines have been extended automatically to June 14, 2025 for us to offer 5G broadband service to at least 70% of the population in each Economic Area for the 700 MHz Licenses and AWS-4 Licenses and at least 75% of the population in each Economic Area for the H Block Licenses. We may need to make significant additional investments or partner with others to, among other things, continue our 5G Network Deployment and further commercialize, build-out and integrate these licenses and related assets and any additional acquired licenses and related assets, as well as to comply with regulations applicable to such licenses. Depending on the nature and scope of such activities, any such investments or partnerships could vary significantly. In addition, we have and may continue to incur significant additional expenses related to, among other things, research and development, wireless testing and ongoing upgrades to the wireless network infrastructure, software and third-party integration. As a result of these investments, among other factors, we plan to raise additional capital, which may not be available on favorable terms. We may also determine that additional wireless spectrum licenses may be required for and to compete effectively with other wireless service providers. DISH Network Noncontrolling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses Noncontrolling Investments Recent Developments. 2024. This purchase resulted in the conversion of our outstanding redeemable noncontrolling interest as it relates to SNR HoldCo to noncontrolling interest, which is now held by our parent, EchoStar, as of the purchase date. During 2015, through our wholly-owned subsidiaries American II and American III, we initially made over $10 billion in certain noncontrolling investments in Northstar Spectrum, the parent company of Northstar Wireless, and in SNR HoldCo, the parent company of SNR Wireless, respectively. Under the applicable accounting guidance in ASC 810, Northstar Spectrum and SNR HoldCo are considered and, based on the characteristics of the structure of these entities and in accordance with the applicable accounting guidance, we consolidate these entities into our financial statements. See Note 2 for further information. Northstar Investment . As of 2015, through American II, we owned a noncontrolling interest in Northstar Spectrum, which was comprised of of the Class A Preferred Interests of Northstar Spectrum. Northstar Manager is the sole manager of Northstar Spectrum and owns a controlling interest in Northstar Spectrum, which was comprised of of the Class B Common Interests of Northstar Spectrum. As of March 31, 2018, the total equity contributions from American II and Northstar Manager to Northstar Spectrum were approximately million, respectively. As of March 31, 2018, the total loans from American II to Northstar Wireless under the Northstar Credit Agreement (as defined below) for payments to the FCC related to the Northstar Licenses (as defined below) were approximately million. See below for further information. Northstar Purchase Agreement . On December 30, 2020, through our wholly-owned subsidiary American II, we entered into a Purchase Agreement (the “Northstar Purchase Agreement”) with Northstar Manager and Northstar Spectrum, pursuant to which American II purchased SNR Investment. As of 2015, through American III, we own a noncontrolling interest in SNR HoldCo, which is comprised of of the Class A Preferred Interests of SNR HoldCo. SNR Management is the sole manager of SNR HoldCo and owns a controlling interest in SNR HoldCo, which is comprised of of the Class B Common Interests of SNR HoldCo. As of March 31, 2018, the total equity contributions from American III and SNR Management to SNR HoldCo were approximately million, respectively. As of March 31, 2018, the total loans from American III to SNR Wireless under the SNR Credit Agreement (as defined below) for payments to the FCC related to the SNR Licenses (as defined below) were approximately million. See below for further information. AWS-3 Auction Northstar Wireless and SNR Wireless each filed applications with the FCC to participate in Auction 97 (the “AWS-3 Auction”) for the purpose of acquiring certain AWS-3 Licenses. Each of Northstar Wireless and SNR Wireless applied to receive bidding credits of as designated entities under applicable FCC rules. Northstar Wireless was the winning bidder for AWS-3 Licenses with gross winning bid amounts totaling approximately billion. SNR Wireless was the winning bidder for AWS-3 Licenses with gross winning bid amounts totaling approximately billion. In addition to the net winning bids, SNR Wireless made a bid withdrawal payment of approximately FCC Order and October 2015 Arrangements. Memorandum Opinion and Order which billion for SNR Wireless). On November 23, 2020, the FCC released a Memorandum Opinion and Order on Remand, FCC 20-160, that found that Northstar Wireless and SNR Wireless are not eligible for bidding credits based on the FCC’s determination that they remain under DISH Network’s de facto appealed the FCC’s order to the D.C. Circuit Court of Appeals. On June 21, 2022, the United States Court of Appeals for the District of Columbia issued an Opinion rejecting this challenge. On January 17, 2023, Northstar Wireless filed a petition for a writ of certiorari asking the United States Supreme Court to hear a further appeal, but that petition was denied on June 30, 2023. Letters Exchanged between Northstar Wireless and the FCC Wireless Bureau. As outlined in letters exchanged between Northstar Wireless and the Wireless Telecommunications Bureau of the FCC (the “FCC Wireless Bureau”), Northstar Wireless paid the gross winning bid amounts for billion through the application of funds already on deposit with the FCC. Northstar Wireless also notified the FCC that it would not be paying the gross winning bid amounts for billion. As a result of the nonpayment of those gross winning bid amounts, the FCC retained those licenses and Northstar Wireless owed the FCC an additional interim payment of approximately billion. The Northstar Interim Payment was recorded as an expense during the fourth quarter of 2015. Northstar Wireless immediately satisfied the Northstar Interim Payment through the application of funds already on deposit with the FCC and an additional loan from American II of approximately million. As a result, the FCC will not deem Northstar Wireless to be a “current defaulter” under applicable FCC rules. In addition, the FCC Wireless Bureau acknowledged that Northstar Wireless’ nonpayment of those gross winning bid amounts does not constitute action involving gross misconduct, misrepresentation or bad faith. Therefore, the FCC concluded that such nonpayment will not affect the eligibility of Northstar Wireless, its investors (including DISH Network) or their respective affiliates to participate in future spectrum auctions (including Auction 1000 and any re-auction of the AWS-3 licenses retained by the FCC). At this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction of those AWS-3 licenses. If the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are greater than or equal to the winning bids of Northstar Wireless, no additional amounts will be owed to the FCC. However, if those winning bids are less than the winning bids of Northstar Wireless, then Northstar Wireless will be responsible for the difference less any overpayment of the Northstar Interim Payment (which will be recalculated as of the winning bids from re-auction or other award) (the “Northstar Re-Auction Payment”). For example, if the winning bids in a re-auction are $1, the Northstar Re-Auction Payment would be approximately million overpayment of the Northstar Interim Payment. As discussed above, at this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction. We cannot predict with any degree of certainty the timing or outcome of any re-auction or the amount of any Northstar Re-Auction Payment. DISH Network Guaranty in Favor of the FCC for Certain Northstar Wireless Obligations . On October 1, 2015, DISH Network entered into a guaranty in favor of the FCC (the “FCC Northstar Guaranty”) with respect to the Northstar Interim Payment (which was satisfied on October 1, 2015) and any Northstar Re-Auction Payment. The FCC Northstar Guaranty provides, among other things, that during the period between the due date for the payments guaranteed under the FCC Northstar Guaranty and the date such guaranteed payments are paid: (i) Northstar Wireless’ payment obligations to American II under the Northstar Credit Agreement will be subordinated to such guaranteed payments; and (ii) DISH Network or American II will withhold exercising certain rights as a creditor of Northstar Wireless. Letters Exchanged between SNR Wireless and the FCC Wireless Bureau. As outlined in letters exchanged between SNR Wireless and the FCC Wireless Bureau, SNR Wireless paid the gross winning bid amounts for million). SNR Wireless also notified the FCC that it would not be paying the gross winning bid amounts for As a result of the nonpayment of those gross winning bid amounts, the FCC retained those licenses and SNR Wireless owed the FCC an additional interim payment of approximately $182 million (the “SNR Interim Payment”), which is equal to 15% of $1.211 billion. The SNR Interim Payment was recorded as an expense during the fourth quarter of 2015. SNR Wireless immediately satisfied the SNR Interim Payment through a portion of an additional loan from American III in an aggregate amount of approximately million. As a result, the FCC will not deem SNR Wireless to be a “current defaulter” under applicable FCC rules. In addition, the FCC Wireless Bureau acknowledged that SNR Wireless’ nonpayment of those gross winning bid amounts does not constitute action involving gross misconduct, misrepresentation or bad faith. Therefore, the FCC concluded that such nonpayment will not affect the eligibility of SNR Wireless, its investors (including DISH Network) or their respective affiliates to participate in future spectrum auctions (including Auction 1000 and any re-auction of the AWS-3 licenses retained by the FCC). At this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction of those AWS-3 licenses. If the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are greater than or equal to the winning bids of SNR Wireless, no additional amounts will be owed to the FCC. However, if those winning bids are less than the winning bids of SNR Wireless, then SNR Wireless will be responsible for the difference less any overpayment of the SNR Interim Payment (which will be recalculated as of the winning bids from re-auction or other award) (the “SNR Re-Auction Payment”). For example, if the winning bids in a re-auction are $1, the SNR Re-Auction Payment would be approximately million overpayment of the SNR Interim Payment. As discussed above, at this time, DISH Network (through itself, a subsidiary or another entity in which it may hold a direct or indirect interest) expects to participate in any re-auction. We cannot predict with any degree of certainty the timing or outcome of any re-auction or the amount of any SNR Re-Auction Payment. DISH Network Guaranty in Favor of the FCC for Certain SNR Wireless Obligations. On October 1, 2015, DISH Network entered into a guaranty in favor of the FCC (the “FCC SNR Guaranty”) with respect to the SNR Interim Payment (which was satisfied on October 1, 2015) and any SNR Re-Auction Payment. The FCC SNR Guaranty provides, among other things, that during the period between the due date for the payments guaranteed under the FCC SNR Guaranty and the date such guaranteed payments are paid: (i) SNR Wireless’ payment obligations to American III under the SNR Credit Agreement will be subordinated to such guaranteed payments; and (ii) DISH Network or American III will withhold exercising certain rights as a creditor of SNR Wireless. FCC Licenses. On October 27, 2015, the FCC granted the Northstar Licenses to Northstar Wireless and the SNR Licenses to SNR Wireless, respectively, which are recorded in “Regulatory authorizations, net” on our Consolidated Balance Sheets. The AWS-3 Licenses are subject to certain interim and final build-out requirements. By October 2021, Northstar Wireless and SNR Wireless must provide reliable signal coverage and offer service to at least 40% of the population in each area covered by an individual AWS-3 License (the “AWS-3 Interim Build-Out Requirement”). By October 2027, Northstar Wireless and SNR Wireless must provide reliable signal coverage and offer service to at least 75% of the population in each area covered by an individual AWS-3 License (the “AWS-3 Final Build-Out Requirement”). The AWS-3 Interim Build-Out Requirement was not met and as a result, the AWS-3 License term and the AWS-3 Final Build-Out Requirement have been accelerated by two years (from October 2027 to October 2025) for each AWS-3 License area in which Northstar Wireless and SNR Wireless did not meet the requirement. If the AWS-3 Final Build-Out Requirement is not met, the authorization for each AWS-3 License area in which Northstar Wireless and SNR Wireless do not meet the requirement may terminate. These wireless spectrum licenses expire in October 2027 unless they are renewed by the FCC. There can be no assurance that the FCC will renew these wireless spectrum licenses. Qui Tam . On September 23, 2016, the United States District Court for the District of Columbia unsealed a qui tam complaint that was filed by Vermont National Telephone Company (“Vermont National”) against us; our wholly-owned subsidiaries, American AWS-3 Wireless I L.L.C., American II, American III, and DISH Wireless Holding L.L.C.; Charles W. Ergen (our Chairman) and Cantey M. Ergen (a member of our Board of Directors, at that time); Northstar Wireless; Northstar Spectrum; Northstar Manager; SNR Wireless; SNR HoldCo; SNR Management; and certain other parties. See “ Contingencies – Litigation – Vermont National Telephone Company” D.C. Circuit Court Opinion . On August 29, 2017, the United States Court of Appeals for the District of Columbia Circuit (the “D.C. Circuit”) in SNR Wireless LicenseCo, LLC, et al. v. Federal Communications Commission , 868 F.3d 1021 (D.C. Cir. 2017) (the “Appellate Decision”) affirmed the Order in part, and remanded the matter to the FCC to give Northstar Wireless and SNR Wireless an opportunity to seek to negotiate a cure of the issues identified by the FCC in the Order (a “Cure”). On January 26, 2018, SNR Wireless and Northstar Wireless filed a petition for a writ of certiorari, asking the United States Supreme Court to hear an appeal from the Appellate Decision, which the United States Supreme Court denied on June 25, 2018. Order on Remand. Northstar Wireless and SNR Wireless timely filed an appeal of the FCC’s 2020 decision. On June 21, 2022, the United States Court of Appeals for the District of Columbia issued an Opinion rejecting this challenge. On January 17, 2023, Northstar Wireless filed a petition for a writ of certiorari asking the United States Supreme Court to hear a further appeal, but that petition was denied on June 30, 2023. Northstar Operative Agreements Northstar LLC Agreement. Northstar Spectrum is governed by a limited liability company agreement by and between American II and Northstar Manager (the “Northstar Spectrum LLC Agreement”). Pursuant to the Northstar Spectrum LLC Agreement, American II and Northstar Manager made pro-rata equity contributions in Northstar Spectrum. On March 31, 2018, American II, Northstar Spectrum, and Northstar Manager amended and restated the Northstar Spectrum LLC Agreement, to, among other things: (i) exchange On June 7, 2018, American II, Northstar Spectrum, and Northstar Manager amended and restated the Second Amended and Restated Limited Liability Company Agreement, dated March 31, 2018, by and among American II, Northstar Spectrum, and Northstar Manager, to, among other things: (i) reduce the mandatory quarterly distribution for the Northstar Preferred Interests from 12 percent to eight percent from and after June 7, 2018; (ii) increase the window for Northstar Manager to “put” its interest in Northstar Spectrum to Northstar Spectrum after October 27, 2020 from 30 days to 90 days ; (iii) provide an additional 90 -day window for Northstar Manager to put its interest in Northstar Spectrum to Northstar Spectrum commencing on October 27, 2021; (iv) provide a right for Northstar Manager to require an appraisal of the fair market value of its interest in Northstar Spectrum at any time from October 27, 2022 through October 27, 2024, coupled with American II having the right to accept the offer to sell from Northstar Manager; (v) allow Northstar Manager to sell its interest in Northstar Spectrum without American II’s consent any time after October 27, 2020 (previously October 27, 2025); (vi) allow Northstar Spectrum to conduct an initial public offering without American II’s consent any time after October 27, 2022 (previously October 27, 2029); (vii) remove American II’s rights of first refusal with respect to Northstar Manager’s sale of its interest in Northstar Spectrum or Northstar Spectrum’s sale of any AWS-3 Licenses; and (viii) remove American II’s tag along rights with respect to Northstar Manager’s sale of its interest in Northstar Spectrum. Northstar Manager had the right to put its interest in Northstar Spectrum to Northstar Spectrum for a 90 -day period beginning October 27, 2020, which Northstar Manager waived in connection with the Northstar Purchase Agreement. On January 24, 2022, American II, Northstar Spectrum, and Northstar Manager amended and restated the Third Amended and Restated Limited Liability Company Agreement, dated June 7, 2018, by and among American II, Northstar Spectrum, and Northstar Manager, to, among other things: (i) increase the second window for Northstar Manager to “put” its interest in Northstar Spectrum to Northstar Spectrum after October 27, 2021 from 90 days to 270 days . On July 22, 2022, American II, Northstar Spectrum, and Northstar Manager amended and restated the Third Amended and Restated Limited Liability Company Agreement, dated June 7, 2018, by and among American II, Northstar Spectrum, and Northstar Manager, to, among other things, increase the second window for Northstar Manager to “put” its interest in Northstar Spectrum to Northstar Spectrum after July 24, 2022 from 270 days to 360 days . O n October 21, 2022, we, through our wholly-owned subsidiary American II received notice that Northstar Manager exercised the Northstar Put Right effective as of October 21, 2022. On October 12, 2023, the FCC consented to the sale of Northstar Manager’s ownership interests in Northstar Spectrum, which we purchased for a total of approximately million. This purchase resulted in the elimination of all of our redeemable noncontrolling interest as it related to Northstar Spectrum as of the purchase date and we continue to consolidate the Northstar Entities as wholly-owned subsidiaries. Northstar Wireless Credit Agreement. On October 1, 2015, American II, Northstar Wireless and Northstar Spectrum amended the First Amended and Restated Credit Agreement dated October 13, 2014, by and among American II, as Lender, Northstar Wireless, as Borrower, and Northstar Spectrum, as Guarantor (as amended, the “Northstar Credit Agreement”), to provide, among other things, that: (i) the Northstar Interim Payment and any Northstar Re-Auction Payment will be made by American II directly to the FCC and will be deemed as loans under the Northstar Credit Agreement; (ii) the FCC is a third-party beneficiary with respect to American II’s obligation to pay the Northstar Interim Payment and any Northstar Re-Auction Payment; (iii) in the event that the winning bids from re-auction or other award of the AWS-3 licenses retained by the FCC are less than the winning bids |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting | |
Segment Reporting | 14. Segment Reporting Operating segments are components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision maker(s) of an enterprise. Operating income is the primary measure used by our chief operating decision maker to evaluate segment operating performance. We currently operate primary business segments: (1) Pay-TV; (2) Retail Wireless and (3) 5G Network Deployment. See Note 1 for further information. All other and eliminations primarily include intersegment eliminations related to intercompany debt and the related interest income and interest expense, which are eliminated in consolidation. The total assets, revenue and operating income, and purchases of property and equipment (including capitalized interest related to Regulatory authorizations) by segment were as follows: As of December 31, 2023 2022 (In thousands) Total assets: Pay-TV $ 49,437,958 $ 46,295,495 Retail Wireless 777,957 2,798,561 5G Network Deployment (1) 46,793,378 43,462,443 Eliminations (1) (45,596,262) (39,949,937) Total assets $ 51,413,031 $ 52,606,562 (1) The increase primarily resulted from intercompany advances for capital expenditures related to our 5G Network Deployment. All 5G Network Other & Consolidated Pay-TV Retail Wireless Deployment Eliminations Total (In thousands) Year Ended December 31, 2023 Total revenue $ 11,571,159 $ 3,692,372 $ 91,928 $ (60,371) $ 15,295,088 Depreciation and amortization 381,292 221,968 620,685 (42,024) 1,181,921 Operating income (loss) 2,699,810 (643,184) (1,881,369) — 175,257 Interest income 2,604,599 27 3,041 (2,502,251) 105,416 Interest expense, net of amounts capitalized (1,290,099) (64,565) (1,186,468) 2,502,251 (38,881) Other, net 74,114 (1,793,387) (22,603) — (1,741,876) Income tax (provision) benefit, net (578,739) 201,091 749,310 — 371,662 Net income (loss) 3,509,685 (2,300,018) (2,338,089) — (1,128,422) Year Ended December 31, 2022 Total revenue $ 12,505,392 $ 4,135,129 $ 65,768 $ (26,882) $ 16,679,407 Depreciation and amortization 428,471 177,914 131,566 (20,878) 717,073 Operating income (loss) 2,933,898 (77,264) (810,968) — 2,045,666 Interest income 1,872,645 5 — (1,829,874) 42,776 Interest expense, net of amounts capitalized (1,036,829) (49,123) (766,703) 1,829,874 (22,781) Other, net 1,264 1,012,147 25,571 — 1,038,982 Income tax (provision) benefit, net (911,955) (219,720) 399,939 — (731,736) Net income (loss) 2,859,023 666,045 (1,152,161) — 2,372,907 Year Ended December 31, 2021 Total revenue $ 12,928,707 $ 4,897,205 $ 73,889 $ (18,695) $ 17,881,106 Depreciation and amortization 538,836 176,833 23,005 (13,822) 724,852 Operating income (loss) 3,075,579 343,785 (216,329) — 3,203,035 Interest income 1,346,502 6 — (1,335,170) 11,338 Interest expense, net of amounts capitalized (819,510) (1,309) (530,525) 1,335,170 (16,174) Other, net (2,917) 26,695 (3,221) — 20,557 Income tax (provision) benefit, net (853,362) (95,982) 186,534 — (762,810) Net income (loss) 2,746,292 273,195 (563,541) — 2,455,946 Retail 5G Network Pay-TV Wireless Deployment Total (In thousands) Year Ended December 31, 2023 Purchases of property and equipment (including capitalized interest related to regulatory authorizations) $ 242,736 $ — $ 3,748,624 $ 3,991,360 Year Ended December 31, 2022 Purchases of property and equipment (including capitalized interest related to regulatory authorizations) $ 131,093 $ — $ 3,580,518 $ 3,711,611 Year Ended December 31, 2021 Purchases of property and equipment (including capitalized interest related to regulatory authorizations) $ 173,485 $ — $ 1,790,042 $ 1,963,527 Geographic Information. Revenue is attributed to geographic regions based upon the customer billing location. Long-lived assets are associated with the geographic regions based upon the location where the asset resides. All revenue was derived from North America, with all service revenue coming from the United States. Substantially all of our long-lived assets reside in the United States. The revenue from external customers disaggregated by major revenue source was as follows: For the Years Ended December 31, Category: 2023 2022 2021 (In thousands) Pay-TV subscriber and related revenue $ 11,385,961 $ 12,360,601 $ 12,787,485 Retail wireless services and related revenue 3,337,240 3,653,909 4,142,883 Pay-TV equipment sales and other revenue 185,198 144,791 141,222 Retail wireless equipment sales and other revenue 355,132 481,220 754,322 5G network deployment equipment sales and other revenue 91,928 65,768 73,889 Eliminations (60,371) (26,882) (18,695) Total $ 15,295,088 $ 16,679,407 $ 17,881,106 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition | |
Revenue Recognition | 15. Revenue Recognition Contract Balances Our valuation and qualifying accounts as of December 31, 2023, 2022 and 2021 were as follows: For the Years Ended December 31, 2023 2022 2021 (In thousands) Balance at beginning of period $ 44,431 $ 38,534 $ 72,278 Current period provision for expected credit losses 67,302 79,664 54,083 Write-offs charged against allowance (57,742) (73,845) (87,919) Acquisitions — 78 92 Balance at end of period $ 53,991 $ 44,431 $ 38,534 Contract liabilities arise when we bill our customers and receive consideration in advance of providing the service. Contract liabilities are recognized as revenue when the service has been provided to the customer. Contract liabilities are recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Consolidated Balance Sheets. The following table summarizes our contract liability balances: As of December 31, 2023 2022 (In thousands) Contract liabilities $ 586,867 $ 672,757 Our beginning of period contract liability recorded as customer contract revenue during 2023 was $642 million. Performance Obligations Pay-TV and Retail Wireless Segments We apply a practical expedient and do not disclose the value of the remaining performance obligations for contracts that are less than one year in duration, which represent a substantial majority of our revenue. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of our future revenue. Contract Acquisition Costs The following table presents the activity in our contract acquisition costs, net: For the Years Ended December 31, 2023 2022 2021 (In thousands) Balance at beginning of period $ 381,401 $ 458,006 $ 456,255 Additions 278,077 346,577 393,109 Amortization expense (372,202) (423,182) (391,358) Balance at end of period $ 287,276 $ 381,401 $ 458,006 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Data (Unaudited) | |
Quarterly Financial Data (Unaudited) | 16. Quarterly Financial Data (Unaudited) Our quarterly results of operations are summarized as follows: For the Three Months Ended March 31 June 30 September 30 December 31 (In thousands) Year ended December 31, 2023: Total revenue $ 3,956,982 $ 3,911,577 $ 3,704,516 $ 3,722,013 Operating income (loss) 323,423 206,334 (41,806) (312,694) Net income (loss) 243,238 222,424 (116,839) (1,477,245) Net income (loss) attributable to DISH Network 222,705 200,323 (139,185) (1,496,066) Year ended December 31, 2022: Total revenue $ 4,330,620 $ 4,209,963 $ 4,095,451 $ 4,043,373 Operating income (loss) 550,360 692,935 427,029 375,342 Net income (loss) 448,846 540,007 429,585 954,469 Net income (loss) attributable to DISH Network 432,651 522,832 412,230 935,520 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions | |
Related Party Transactions | 17. Related Party Transactions Related Party Transactions with EchoStar, our Parent. On January 1, 2008, DISH Network completed the distribution of its technology and set-top box business and certain infrastructure assets (the “Spin-off”) into a separate publicly-traded company, EchoStar. Following the Spin-off, DISH Network and EchoStar operated as separate publicly-traded companies until the Merger on December 31, 2023. See Note 1 for more information. After the Spin-off and prior to the Merger, we and EchoStar entered into certain agreements pursuant to which we obtain certain products, services and rights from EchoStar and EchoStar obtains certain products, services and rights from us. On February 28, 2017, we and EchoStar and certain of our respective subsidiaries completed a transaction (the “Share Exchange Agreement”) pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to us. On September 10, 2019, we and EchoStar and certain of our respective subsidiaries completed the transactions contemplated by the Master Transaction Agreement (the “Master Transaction Agreement”) pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to us. On December 31, 2023, EchoStar completed the acquisition of DISH Network. The following is a summary of the terms of our principal agreements with EchoStar that may have an impact on our financial condition and results of operations. “Trade accounts receivable” As of December 31, 2023 and 2022, trade accounts receivable from EchoStar was $4 million and $1 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Consolidated Balance Sheets. “Trade accounts payable” As of December 31, 2023 and 2022, trade accounts payable to EchoStar was $13 million and $4 million, respectively. These amounts are recorded in “Trade accounts payable” on our Consolidated Balance Sheets. “Service revenue” During the years ended December 31, 2023, 2022 and 2021, we received $5 million, $4 million and $4 million, respectively, for services provided to EchoStar. These amounts are recorded in “Service revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these revenues are discussed below. TT&C Agreement – Master Transaction Agreement . In September 2019, we entered into an agreement pursuant to which we provide TT&C services to EchoStar for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon written notice at least 90 days prior to the initial expiration (the “MTA TT&C Agreement”). The fees for services provided under the MTA TT&C Agreement are calculated at either: (i) a fixed fee or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. Either party is able to terminate the MTA TT&C Agreement for any reason upon 12 months ’ notice. In June 2021, we amended the MTA TT&C Agreement to extend the term until September 2022 and added the option for EchoStar to renew for three one-year renewal terms. In August 2022, EchoStar exercised its first renewal option for a period ending in September 2023. In June 2023, EchoStar exercised its second renewal option for a period ending in September 2024. “Equipment sales and other revenue” During the years ended December 31, 2023, 2022 and 2021, we received $3 million, $2 million and $2 million, respectively, for services provided to EchoStar. These amounts are recorded in “Equipment sales and other revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these revenues are discussed below. Real Estate Lease Agreements. We have entered into lease agreements pursuant to which we lease certain real estate to EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic areas, and EchoStar is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● El Paso Lease Agreement. During 2012, we began leasing certain space at 1285 Joe Battle Blvd., El Paso, Texas to EchoStar for an initial period ending on August 1, 2015, which also provides EchoStar with renewal options for four consecutive three-year terms. During the second quarter of 2015, EchoStar exercised its first renewal option for a period ending on August 1, 2018 and in April 2018 EchoStar exercised its second renewal option for a period ending in July 2021 and in May 2021 EchoStar exercised its third renewal option for a period ending in July 2024. ● 90 Inverness Lease Agreement . Effective March 1, 2017, EchoStar leases certain space from us at 90 Inverness Circle East, Englewood, Colorado for a period ending in February 2023. EchoStar has the option to renew this lease for four three-year periods. EchoStar exercised its renewal option for a period ending in February 2025. ● Cheyenne Lease Agreement . Effective March 1, 2017, EchoStar began leasing certain space from us at 530 EchoStar Drive, Cheyenne, Wyoming for a period ending in February 2019. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for 12 one-year periods. During September 2019, we and EchoStar amended this lease to provide EchoStar with certain space for a period ending in September 2023, with the option for EchoStar to renew for a one-year period upon 180 days ’ written notice prior to the end of the term. This lease was not renewed and terminated in September 2023. Collocation and Antenna Space Agreements . Effective March 1, 2017, we entered into certain agreements pursuant to which we provide certain collocation and antenna space to HNS through February 2025 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; Monee, Illinois; Englewood, Colorado; and Spokane, Washington. During August 2017, we entered into certain other agreements pursuant to which we provide certain collocation and antenna space to HNS through August 2022 at the following locations: Monee, Illinois and Spokane, Washington. HNS has the option to renew each of these agreements for four three-year periods. HNS may terminate certain of these agreements with 180 days ’ prior written notice to us at the following locations: Englewood, Colorado; and Spokane, Washington. The fees for the services provided under these agreements depend, among other things, on the number of racks leased and/or antennas present at the location. Also in September 2019, we entered into an agreement pursuant to which we provide HNS with antenna space and power in Cheyenne, Wyoming for a period of five years commencing no later than October 2020, with four three-year renewal terms, with prior written notice no more than 120 days but no less than 90 days prior to the end of the then-current term. “Cost of services” During the years ended December 31, 2023, 2022 and 2021, we incurred $8 million, $12 million and $15 million, respectively, of costs for services provided to us by EchoStar. These amounts are recorded in “Cost of services” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Hughes Broadband Distribution Agreement . Effective October 1, 2012, dishNET Satellite Broadband L.L.C. (“dishNET Satellite Broadband”), our indirect wholly-owned subsidiary, and HNS entered into a Distribution Agreement (the “Distribution Agreement”) pursuant to which dishNET Satellite Broadband has the right, but not the obligation, to market, sell and distribute the HNS satellite Internet service (the “Service”). dishNET Satellite Broadband pays HNS a monthly per subscriber wholesale service fee for the Service based upon the subscriber’s service level, and, beginning January 1, 2014, certain volume subscription thresholds. The Distribution Agreement also provides that dishNET Satellite Broadband has the right, but not the obligation, to purchase certain broadband equipment from HNS to support the sale of the Service. On February 20, 2014, dishNET Satellite Broadband and HNS amended the Distribution Agreement which, among other things, extended the initial term of the Distribution Agreement through March 1, 2024. Thereafter, the Distribution Agreement automatically renews for successive one year terms unless either party gives written notice of its intent not to renew to the other party at least 180 days before the expiration of the then-current term. Upon expiration or termination of the Distribution Agreement, the parties will continue to provide the Service to the then-current dishNET subscribers pursuant to the terms and conditions of the Distribution Agreement. EchoStar IX. We leased certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally had the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis. This lease expired on December 31, 2022. “Cost of sales – equipment and other” During the years ended December 31, 2023, 2022 and 2021, we incurred $5 million, $5 million and $6 million, respectively, for satellite hosting, operations and maintenance services as well as transmission of certain data. These amounts are recorded in “Cost of sales – equipment and other” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. DBSD North America Agreement. On March 9, 2012, we completed the DBSD Transaction. During the second quarter of 2011, EchoStar acquired Hughes. Prior to our acquisition of DBSD North America and EchoStar’s acquisition of Hughes, DBSD North America and HNS entered into an agreement pursuant to which HNS provides, among other things, hosting, operations and maintenance services for DBSD North America’s satellite gateway and associated ground infrastructure. This agreement generally may be terminated by us at any time for convenience. TerreStar Agreements . On March 9, 2012, we completed the TerreStar Transaction. Prior to our acquisition of substantially all the assets of TerreStar and EchoStar’s acquisition of Hughes, TerreStar and HNS entered into various agreements pursuant to which HNS provides, among other things, hosting, operations and maintenance services for TerreStar’s satellite gateway and associated ground infrastructure. These agreements generally may be terminated by us at any time for convenience. Hughes Equipment and Services Agreement. In February 2019, we and HNS entered into an agreement pursuant to which HNS will provide us with HughesNet Service and HughesNet equipment for the transmission of certain data related to our 5G Network Deployment. This agreement has an initial term of five years with automatic renewal for successive one-year terms unless terminated by DISH Network with at least 180 days’ written notice to HNS or by HNS with at least 365 days’ written notice to DISH Network. “Selling, general and administrative expenses” During the years ended December 31, 2023, 2022 and 2021, we incurred $12 million, $14 million and $19 million, respectively, for selling, general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “Selling, general and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. We have entered into lease agreements pursuant to which we lease certain real estate from EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic area, and we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● Meridian Lease Agreement. We lease all of 9601 S. Meridian Blvd. in Englewood, Colorado for a period ending on December 31, 2024. ● 100 Inverness Lease Agreement . Effective March 1, 2017, we lease certain space from EchoStar at 100 Inverness Terrace East, Englewood, Colorado for a period ending in December 2024. This agreement may be terminated by either party upon 180 days ’ prior notice. Professional Services Agreement. Prior to 2010, we entered into various agreements with EchoStar including the Transition Services Agreement, Satellite Procurement Agreement and Services Agreement, which all expired on January 1, 2010 and were replaced by a Professional Services Agreement. During 2009, we and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from us, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Additionally, we and EchoStar agreed that we shall continue to have the right, but not the obligation, to engage EchoStar to manage the process of procuring new satellite capacity for us and receive logistics, procurement and quality assurance services from EchoStar and other support services. On February 28, 2017, DISH Network and EchoStar amended the Professional Services Agreement to, among other things, provide certain transition services to each other. In addition, we and EchoStar amended the Professional Services Agreement effective September 10, 2019 to, among other things, provide certain transition services to each other and to remove certain services no longer necessary. During March 2020, we and EchoStar added a service under the Professional Services Agreement whereby we provide EchoStar with rights to use certain satellite capacity in exchange for certain credits to amounts owed by us to EchoStar under the TerreStar Agreement described above. The Professional Services Agreement renewed on January 1, 2024 for an additional one-year period until January 1, 2025 and renews automatically for successive one-year periods thereafter, unless terminated earlier by either party upon at least 60 days ’ notice. However, either party may terminate the Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days ’ notice. Revenue for services provided by us to EchoStar under the Professional Services Agreement is recorded in “Service revenue” and “Equipment sales and other revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). City of Hallandale. During the second quarter of 2021, we and the other named defendants entered into a global settlement agreement with the City of Hallandale. On December 10, 2021, the court approved the settlement. Under the settlement agreement, we contributed an immaterial amount to the settlement. Other Agreements - EchoStar Tax Sharing Agreement. We entered into a tax sharing agreement (the “Tax Sharing Agreement”) with EchoStar which governs our respective rights, responsibilities and obligations after the Spin-off with respect to taxes for the periods ending on or before the Spin-off. Generally, all pre-Spin-off taxes, including any taxes that are incurred as a result of restructuring activities undertaken to implement the Spin-off, are borne by us, and we will indemnify EchoStar for such taxes. However, we are not liable for and will not indemnify EchoStar for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Internal Revenue Code of 1986, as amended (the “Code”) because of: (i) a direct or indirect acquisition of any of EchoStar’s stock, stock options or assets; (ii) any action that EchoStar takes or fails to take; or (iii) any action that EchoStar takes that is inconsistent with the information and representations furnished to the Internal Revenue Service (“IRS”) in connection with the request for the private letter ruling, or to counsel in connection with any opinion being delivered by counsel with respect to the Spin-off or certain related transactions. In such case, EchoStar is solely liable for, and will indemnify us for, any resulting taxes, as well as any losses, claims and expenses. The Tax Sharing Agreement will only terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed. In light of the Tax Sharing Agreement, among other things, and in connection with our consolidated federal income tax returns for certain tax years prior to and for the year of the Spin-off, during 2013, we and EchoStar agreed upon a supplemental allocation of the tax benefits arising from certain tax items resolved in the course of the IRS’ examination of these consolidated tax returns. As a result, we agreed to pay EchoStar million of the tax benefit we received or will receive. Any payment to EchoStar, including accrued interest, will be made at such time as EchoStar would have otherwise been able to realize such tax benefit. In addition, during 2013, we and EchoStar agreed upon a tax sharing arrangement for filing certain combined state income tax returns and a method of allocating the respective tax liabilities between us and EchoStar for such combined returns, through the taxable period ending on December 31, 2017 (the “State Tax Arrangement”). During the third quarter of 2018, we and EchoStar amended the Tax Sharing Agreement and the 2013 agreements (the “Amendment”). Under the Amendment, among other things, we are entitled to apply the benefit of EchoStar’s 2009 net operating losses to our federal tax return for the year ended December 31, 2008, in exchange for paying EchoStar over time the value of the net annual federal income taxes paid by EchoStar that would have been otherwise offset by their 2009 net operating loss. T he Amendment also contained provisions related to the term of the State Tax Arrangement. As discussed in prior filings, beginning in 2020, DISH Network and EchoStar no longer files a combined state tax return in any state. All requirements under the State Tax Arrangement were fulfilled in 2022. As a result of the Merger discussed above, DISH Network and EchoStar are analyzing requirements to determine if combined returns are appropriate for tax years beginning in 2024. Patent Cross-License Agreements . In December 2011, we and EchoStar entered into separate patent cross-license agreements with the same third party whereby: (i) EchoStar and such third-party licensed their respective patents to each other subject to certain conditions; and (ii) we and such third-party licensed our respective patents to each other subject to certain conditions (each, a “Cross-License Agreement”). Each Cross License Agreement covers patents acquired by the respective party prior to January 1, 2017 and aggregate payments under both Cross-License Agreements total less than million. In December 2016, we and EchoStar independently exercised our respective options to extend each Cross-License Agreement to include patents acquired by the respective party prior to January 1, 2022. Rovi License Agreement. On August 19, 2016, we entered into a ten-year patent license agreement (the “Rovi License Agreement”) with Rovi Corporation (“Rovi”) and, for certain limited purposes, EchoStar. EchoStar is a party to the Rovi License Agreement solely with respect to certain provisions relating to the prior patent license agreement between EchoStar and Rovi. There are no payments between us and EchoStar under the Rovi License Agreement. Hughes Broadband Master Services Agreement. In March 2017, DISH Network L.L.C. (“DNLLC”) and HNS entered into the MSA pursuant to which DNLLC, among other things: (i) has the right, but not the obligation, to market, promote and solicit orders for the Hughes broadband satellite service and related equipment; and (ii) installs Hughes service equipment with respect to activations generated by DNLLC. Under the MSA, HNS will make certain payments to DNLLC for each Hughes service activation generated, and installation performed, by DNLLC. Payments from HNS for services provided are recorded in “Service revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). For the years ended December 31, 2023, 2022 and 2021, these payments were $2 million, $8 million and $9 million, respectively. The MSA has an initial term of five years with automatic renewal for successive one year terms. After the first anniversary of the MSA, either party has the ability to terminate the MSA, in whole or in part, for any reason upon at least 90 days’ notice to the other party. Upon expiration or termination of the MSA, HNS will continue to provide the Hughes service to subscribers and make certain payments to DNLLC pursuant to the terms and conditions of the MSA. For the years ended December 31, 2023, 2022 and 2021, we purchased broadband equipment from HNS of zero , $7 million and $7 million, respectively, under the MSA. Intellectual Property and Technology License Agreement – Share Exchange In addition, we granted a license back to EchoStar, among other things, for the continued use of all intellectual property and technology transferred to us pursuant to the Share Exchange Agreement that is used in EchoStar’s retained businesses. Intellectual Property and Technology License Agreement – Master Transaction Agreement. Effective September 10, 2019, we and EchoStar entered into an IPTLA (the “MTA IPTLA”), pursuant to which we and EchoStar license to each other certain intellectual property and technology. The MTA IPTLA will continue in perpetuity, unless mutually terminated by the parties. Pursuant to the MTA IPTLA, EchoStar granted to us a license to its intellectual property and technology for use by us, among other things, in connection with our continued operation of the BSS Business acquired pursuant to the Master Transaction Agreement, including a limited license to use the “ESS” and “ECHOSTAR SATELLITE SERVICES” trademarks during a transition period. EchoStar retains full ownership of the “ESS” and “ECHOSTAR SATELLITE SERVICES” trademarks. In addition, we granted a license back to EchoStar, among other things, for the continued use of all intellectual property and technology transferred to us pursuant to the Master Transaction Agreement that is used in EchoStar’s retained businesses. Related Party Transactions with NagraStar L.L.C. We own a 50% interest in NagraStar, a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Certain payments related to NagraStar are recorded in “Cost of services” on our Consolidated Statements of Operations and Comprehensive Income (Loss). In addition, certain other payments are initially included in “Inventory” and are subsequently capitalized as “Property and equipment, net” on our Consolidated Balance Sheets or expensed as “Selling, general and administrative expenses” or “Cost of services” on our Consolidated Statements of Operations and Comprehensive Income (Loss) when the equipment is deployed. We record all payables in “Trade accounts payable” or “Other accrued expenses and liabilities” on our Consolidated Balance Sheets. Our investment in NagraStar is accounted for using the equity method. The table below summarizes our transactions with NagraStar. For the Years Ended December 31, 2023 2022 2021 (In thousands) Purchases (including fees): Purchases from NagraStar $ 37,068 $ 43,416 $ 45,944 As of December 31, 2023 2022 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 9,821 $ 7,422 Commitments to NagraStar $ 1,727 $ 3,272 |
Subsequent Events
Subsequent Events | 12 Months Ended |
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Subsequent Events | 18. Subsequent Events Asset Transfers On January 10, 2024, we transferred certain of our wireless spectrum licenses, including AWS-4, H-Block, CBRS, C-Band - , 12GHz, LMDS, 24 GHz, 28 GHz, 37GHz, 39GHz and 47GHz to , EchoStar’s direct wholly-owned subsidiary (the “Spectrum Transfer”). We retained ownership of certain other wireless spectrum licenses, including 600 MHz, 700 MHz, 3.45 GHz and AWS-3, of which 700 MHz and AWS-3 remain unencumbered, and BS. Prior to the Spectrum Transfer, DISH DBS designated a newly formed subsidiary of (the “DBS Subscriber Subsidiary”) as an unrestricted subsidiary. DBS Subscriber Subsidiary holds approximately 3.0 million DISH TV subscribers immediately following the unrestricting of the entity. In addition, DISH DBS, in its capacity as “Lender” under the terms of the Loan and Security Agreement related to the Intercompany Loan between DISH Network and DISH DBS, has consummated the assignment pursuant to such terms, without any modification or amendment thereto, of its receivable in respect to the to DBS Intercompany Receivable L.L.C. has subsequently assigned its rights as lender thereunder to , our parent, EchoStar’s direct wholly-owned subsidiary, such that amounts owed in respect of the will now be paid by DISH Network to DISH Network Exchange Offers On January 12, 2023, EchoStar commenced offers (“the DISH Network Exchange Offers”) to exchange the 0% Convertible Notes due 2025 and the 3 3/8% Convertible Notes due 2026 issued by its subsidiary DISH Network, each for 10.00% Senior Secured Notes due 2030 to be issued by EchoStar , in each case, pursuant to the terms described in a preliminary prospectus and consent solicitation statement, dated January 12, 2024. On February 12, 2024, EchoStar announced the expiration and termination of the DISH Exchange Offers. DISH DBS Exchange Offers On January 16, 2024, EchoStar announced its wholly-owned subsidiary DISH DBS Issuer LLC (“DBS Issuer”) commenced offers (“the DISH DBS Exchange Offers”) to eligible holders to exchange the 5 7/8% Senior Notes due 2024 (the “DBS 2024 Notes”), the 7 3/4% Senior Notes due 2026, the 7 3/8% Senior Notes due 2028 (the “DBS 2028 Notes”) and the 5 1/8% Senior Notes due 2029 (the “DBS 2029 Notes,” and together with the DBS 2024 Notes, the DBS 2026 Notes and the DBS 2028 Notes, the “ DISH DBS Unsecured Senior Notes” issued by DISH DBS), in the amounts and subject to the terms, in each case, described in the exchange offer memorandum and consent solicitation statement, dated January 16, 2024 (the “Exchange Offer Memorandum”). On January 29, 2024, EchoStar announced its wholly-owned subsidiary DISH DBS Issuer elected in its sole discretion to terminate the DBS Exchange Offers. EchoStar Exchange Offer On March 4, 2024, EchoStar commenced a tender offer to eligible employees (which excludes EchoStar’s and our co-founders and the independent members of EchoStar’s Board of Directors) (which excludes the Ergen 2020 Performance Award) Asset Sale to EchoStar On March 12, 2024, we sold our wholly-owned subsidiary which holds the 700 MHz Spectrum to a wholly-owned subsidiary of our parent, EchoStar, for approximately $1 billion. The proceeds were used to pay the remaining balance of $951 million on our 2 3/8% Convertible Note which matured on March 15, 2024. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
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Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include all balances and results of operations of DISH Network and our consolidated subsidiaries and are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) . We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments, which will be initially recorded at cost, and based on observable market prices, will be adjusted to their fair value. We record fair value adjustments in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Northstar Wireless. Northstar Wireless is a wholly-owned subsidiary of Northstar Spectrum, which is an entity owned by Northstar Manager and us. Under the applicable accounting guidance in ASC 810, Northstar Spectrum is considered a VIE and, based on the characteristics of the structure of this entity and in accordance with the applicable accounting guidance, we consolidate Northstar Spectrum into our financial statements. The Northstar Operative Agreements, as amended, provide for, among other things, that Northstar Manager has the ability, but not the obligation, to require Northstar Spectrum to purchase Northstar Manager’s ownership interests in Northstar Spectrum (the “Northstar Put Right”) for a purchase price that equals its equity contribution to Northstar Spectrum plus a fixed annual rate of return. The First Northstar Put Window closed in the first quarter of 2021. On October 21, 2022, we, through our wholly-owned subsidiary American II received notice that Northstar Manager exercised the Northstar Put Right effective as of October 21, 2022. As of December 31, 2022, the aggregate value of the Northstar Put Right accrued to million. million. This purchase resulted Northstar Spectrum does not have a call right with respect to Northstar Manager’s ownership interests in Northstar Spectrum. Although Northstar Manager is the sole manager of Northstar Spectrum, Northstar Manager’s ownership interest was considered temporary equity under the applicable accounting guidance and was recorded as part of “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. Northstar Manager’s ownership interest in Northstar Spectrum was initially accounted for at fair value. Subsequently, Northstar Manager’s ownership interest in Northstar Spectrum was increased by the fixed annual rate of return through “Redeemable noncontrolling interests” on our Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The operating results of Northstar Spectrum attributable to Northstar Manager were recorded as “Redeemable noncontrolling interests” on our Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 13 for further information. SNR Wireless. SNR Wireless is a wholly-owned subsidiary of SNR HoldCo, which is an entity owned by SNR Management and us. Under the applicable accounting guidance in ASC 810, SNR HoldCo is considered a VIE and, based on the characteristics of the structure of this entity and in accordance with the applicable accounting guidance, we consolidate SNR HoldCo into our financial statements. The SNR Operative Agreements, as amended, provide for, among other things, that SNR Management has the ability, but not the obligation, to require SNR HoldCo to purchase SNR Management’s ownership interests in SNR HoldCo (the “SNR Put Right”) for a purchase price that equals its equity contribution to SNR HoldCo plus a fixed annual rate of return. The First SNR Put Window closed in the first quarter of 2021. On November 15, 2021, we, through our wholly-owned subsidiary American III received notice that SNR Management exercised the SNR Put Right effective as of November 15, 2021. As of December 31, 2023 and 2022, the aggregate value of the SNR Put Right had accrued to approximately million, respectively. Subsequent to December 31, 2023, the FCC consented to the sale of 2024. This purchase resulted in the conversion of our outstanding redeemable noncontrolling interest as it relates to SNR HoldCo to noncontrolling interest, which is now held by our parent, EchoStar, as of the purchase date. SNR HoldCo does not have a call right with respect to SNR Management’s ownership interests in SNR HoldCo. Although SNR Management is the sole manager of SNR HoldCo, SNR Management’s ownership interest is considered temporary equity under the applicable accounting guidance and is thus recorded as part of “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. SNR Management’s ownership interest in SNR HoldCo was initially accounted for at fair value. Subsequently, SNR Management’s ownership interest in SNR HoldCo is increased by the fixed annual rate of return through “Redeemable noncontrolling interests” on our Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The operating results of SNR HoldCo attributable to SNR Management are recorded as “Redeemable noncontrolling interests” on our Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 13 for further information. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are based on historical experience, observable market inputs, and other reasonable assumptions in accounting for, among other things, allowances for credit losses (including those related to our installment billing programs), self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under EchoStar’s stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, the fair value of our option to purchase T-Mobile’s 800 MHz spectrum, inputs used to recognize revenue over time, including the relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, incremental borrowing rate (“IBR”) on lease right of use assets, nonrefundable upfront fees, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents as of December 31, 2023 and 2022 may consist of money market funds, government bonds, corporate notes and commercial paper. The amortized cost of these investments approximates their fair value. |
Concentration of Credit Risk | Concentration of Credit Risk Cash and cash equivalents are maintained with several financial institutions domestically and internationally. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with investment-grade credit ratings. We routinely assess the financial strength of significant customers, and this assessment, combined with the large number and geographical diversity of its customers, limits our concentration of risk with respect to receivables from contracts with customers. |
Marketable Investment Securities | Marketable Investment Securities All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Stockholder’s Equity (Deficit),” net of related deferred income tax on our Consolidated Balance Sheets. The changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Interest income from available for sale debt securities is reported in “Interest income, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). We evaluate our debt investment portfolio to determine whether declines in the fair value of these securities are related to credit loss. Management estimates credit losses on marketable debt securities utilizing a credit loss impairment model on a quarterly basis. We estimate the expected credit losses, measured over the contractual life of marketable debt securities considering relevant issuer specific factors, including, but not limited to, a decrease in credit ratings or an entity’s ability to pay. |
Receivables and Related Allowance for Credit Losses | Receivables and Related Allowance for Credit Losses General Accounts Receivable Trade accounts receivable represent our unconditional rights to consideration arising from our performance under our customer contracts and are recorded at cost less an allowance for expected credit losses that are not expected to be recovered. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for expected credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Management estimates credit losses on financial assets, including our trade accounts receivable, utilizing a current expected credit loss impairment model. We estimate the expected credit losses, measured over the contractual life of an asset considering relevant historical loss information, credit quality of the customer base, current economic conditions and forecasts of future economic conditions. In determining the allowance for credit losses, management groups similar types of financial assets with consistent risk characteristics. Pools identified by management include, but are not limited to residential customers, commercial customers and advertising services. The risk characteristics of the financial asset portfolios are monitored by management and reviewed periodically. The forecasts for future economic conditions are based on several factors including, but not limited to, changes in the unemployment rate, external economic forecasts and current collection rates. Our estimates of the allowance for credit losses may not be indicative of our actual credit losses requiring additional charges to be incurred to reflect the actual amount collected. Installments Receivable We offer Boost postpaid customers the option to pay for their devices and other equipment in installments generally over a period of 36 months . Installments receivable are presented on our Consolidated Balance Sheets at their amortized cost basis (i.e., the receivables’ unpaid balance as adjusted for any written-off amounts due to impairment and unamortized discounts), net of the allowance for credit losses. At the time of an installment sale, we impute a discount for interest if the term exceeds 12 months as there is no stated rate of interest on the receivables. The receivables are recorded at their present value, which is determined by discounting expected future cash payments at the imputed interest rate. The current portion of installments receivable is included in “Trade accounts receivable, net” and the long-term portion of installments receivable is included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. This adjustment results in a discount or reduction in the transaction price of the contract with a customer, which is allocated to the performance obligations of the arrangement such as Equipment and other revenues on our Consolidated Statements of Operations and Comprehensive Income (Loss). The imputed discount rate reflects a current market interest rate and is predominately comprised of the estimated credit risk underlying the installment receivable, reflecting the estimated credit worthiness of the customer. The imputed discount on receivables is amortized over the financed installment term using the effective interest method and recognized in “Equipment and other revenues” on our Consolidated Statements of Operations and Comprehensive Income (Loss). |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The cost of manufactured inventory includes the cost of materials, labor, freight-in, royalties and manufacturing overhead. Net realizable value is calculated as the estimated selling price less reasonable costs necessary to complete, sell, transport and dispose of the inventory. We record write downs for inventory for obsolete and slow moving items based on trends and experience. We enter into arrangements with distributors where physical delivery of a product to a distributor has occurred, but we maintain control of the product until such time it is sold to an end consumer. For these arrangements, we account for the products as consigned inventory. |
Property and Equipment | Property and Equipment Property and equipment, including capitalized expenditures related to our wireless projects, 5G Network Deployment and satellites, are stated at cost less depreciation and impairment losses, if any. Capitalized expenditures include the cost of long-lived assets, plus the cost to construct the asset such as labor and overhead directly benefiting the asset. Interest is capitalized when pre-construction activity commences and ends once the asset is ready for its intended purpose. Our equipment leased to customers is generally capitalized when they are installed in customers’ homes. We have certain assets acquired under finance leases. The recorded costs of those assets are the present values of all lease payments. We amortize our finance lease right of use (“ROU”) assets over their respective lease terms. If a satellite were to fail while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from two to 40 years . Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized. Internal Use Software We capitalize certain costs related to developing or acquiring internal use software. Capitalization of software costs begins once the preliminary project stage is completed and we commit to funding the software project. Capitalizing ceases when the software project is ready for its intended use. Capitalized software costs are recorded in “Property and equipment, net” on our Asset Retirement Obligation We record an asset retirement obligation for the estimated fair value of legal obligations associated with the retirement of tangible long-lived assets and a corresponding increase in the carrying amount of the related asset in the period in which the obligation is incurred. In periods subsequent to initial measurement, we recognize changes in the liability resulting from the passage of time and revisions to either the timing or the amount of the original estimate. Over time, the liability is accreted to its present value and the capitalized cost is depreciated over the estimated useful life of the asset. Our asset retirement obligations relate primarily to certain legal obligations to remediate leased property on |
Other Investments | Other Investments Equity Method Investments We use the equity method to account for investments when we have the ability to exercise significant influence on the operating decisions of the affiliate. Such investments are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The carrying amount of such investments includes a component of goodwill when the cost of our investment exceeds the fair value of the underlying identifiable assets and liabilities of the affiliate. Dividends received from these affiliates reduces the carrying amount of our investment. Cost Method Investments We generally measure investments in non-publicly traded equity instruments without a readily determinable fair value at cost adjusted for observable price changes in orderly transactions for the identical or similar securities of the same issuer and changes resulting from impairments, if any. Other equity instruments are measured to determine their value based on observable market information. When we adjust the carrying amount of an investment to its estimated fair value, the gain or loss is recorded in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Impairment Considerations We periodically evaluate all of our other investments to determine whether events or changes in circumstances have occurred that may have a significant adverse effect on the fair value of the investment. We consider information if provided to us by our investees such as current financial statements, business plans, investment documentation, capitalization tables, liquidation waterfalls, and board materials; and we may make additional inquiries of investee management. Indicators of impairment may include, but are not limited to, unprofitable operations, material loss contingencies, changes in business strategy, changes in market trends or market conditions, changes in the investees’ enterprise value and changes in the investees’ investment pricing. When we determine that one of our other investments is impaired we reduce its carrying value to its estimated fair value and recognize the impairment loss in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). |
Derivative Instruments | Derivative Instruments We may purchase and hold derivative financial instruments for, among other reasons, strategic or speculative purposes. We record derivative financial instruments on our Consolidated Balance Sheets at fair value as either assets or liabilities. Changes in the fair values of derivative financial instruments are recognized in our results of operations and included in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). We have not designated any derivative financial instrument for hedge accounting. We have the option to purchase certain of T-Mobile’s 800 MHz spectrum licenses from T-Mobile at a fixed price in the future as part of the Boost Mobile Acquisition and have written certain contracts on the equity of EchoStar. See Note 5 and Note 9 for further information. |
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets | Impairment of Long-Lived Assets and Finite-Lived Intangible Assets We review our long-lived assets and identifiable finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Intangible assets that have finite lives are amortized over their estimated useful lives. For assets which are held and used in operations, the asset would be impaired if the carrying amount of the asset (or asset group) exceeded its undiscounted future net cash flows. When an impairment is determined, the actual impairment recognized is the difference between the carrying amount and the fair value as estimated using one of the following approaches: income, cost and/or market. In the event of an impairment, a loss is recorded in “Impairment of long-lived assets and goodwill” on our Consolidated Statements of Operations and Comprehensive Income (Loss) based on the amount by which the carrying amount exceeds the fair value of the long-lived asset or asset group. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Fair value, using the income approach, is determined primarily using a discounted cash flow model that uses the estimated cash flows associated with the asset or asset group under review, discounted at a rate commensurate with the risk involved. Fair value, utilizing the cost approach, is determined based on the replacement cost of the asset reduced for, among other things, depreciation and obsolescence. Fair value, utilizing the market approach, benchmarks the fair value against the carrying amount. DBS Satellites We currently evaluate our DBS satellite fleet for impairment as one asset group whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2023 and 2022. We will continue to monitor the DBS satellite fleet for indicators of impairment. Finite-Lived Intangible Assets Intangible assets include customer relationships, trademarks, and certain below market contracts. These assets are amortized over their respective useful lives. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2023 and 2022. |
Indefinite-Lived Intangible Assets and Goodwill | Indefinite-Lived Intangible Assets and Goodwill We do not amortize indefinite-lived intangible assets and goodwill but test these assets for impairment annually, during the fourth quarter or more often if indicators of impairment arise. We have the option to first perform a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. However, we may elect to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. Our intangible assets with indefinite lives primarily consist of FCC licenses and certain other contractual or regulatory rights to use spectrum at specified orbital locations. Generally, we have determined that our FCC licenses have indefinite useful lives due to the following: ● FCC licenses are a non-depleting asset; ● existing FCC licenses are integral to our business segments and will contribute to cash flows indefinitely; ● replacement satellite applications are generally authorized by the FCC subject to certain conditions, without substantial cost under a stable regulatory, legislative and legal environment; ● maintenance expenditures to obtain future cash flows are not significant; ● FCC licenses are not technologically dependent; and ● we intend to use these assets indefinitely. DBS Licenses We combine all of our indefinite-lived DBS licenses that we currently utilize or plan to utilize in the future into a single unit of accounting. For 2023, 2022 and 2021, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS licenses exceeds the carrying amount. In our assessment, we considered several factors, including, among others, overall financial performance, industry and market considerations, and relevant company specific events. In contemplating all factors in their totality, we concluded that it is more likely than not that the fair value of the DBS licenses exceeds its carrying amount. As such, no further analysis was required. Wireless Spectrum Licenses During 2022, we acquired the 3.45-3.55 GHz wireless licenses (the “3.45–3.55 GHz Licenses”). During 2021, we acquired the 3550-3650 MHz (CBRS) and 3.7-3.98 GHz wireless licenses, together (the “C-Band Licenses”). During 2020, we acquired the 37 GHz, 39 GHz, and 47 GHz wireless licenses and during 2019, we acquired the 24 GHz and 28 GHz wireless licenses, together (the “High-Band Licenses”). In 2023 and 2022, we combined our 600 MHz, 700 MHz, AWS-4, H Block, High-Band Licenses, C-Band Licenses, 3.45–3.55 GHz Licenses and the Northstar Licenses and SNR Licenses into a single unit of accounting. In 2021, we combined our 600 MHz, 700 MHz, AWS-4, H Block, High-Band Licenses, C-Band Licenses and the Northstar Licenses and SNR Licenses into a single unit of accounting. In 2023, we quantitatively assessed these licenses for impairment. Our quantitative assessment consisted of a market approach performed by a third party and reviewed by management. Market Approach. Currently frequencies in the 500 kHz to 30 GHz make up the bulk of commercial use in the United States. Spectrum bands can be grouped into four categories: low-band (less than 1 GHz), lower mid-band (1-2 GHz), upper mid-band (primarily 2-4 GHz) and high-band (generally above 24 GHz). Radio frequencies have different characteristics with regard to the distance they will travel and their ability to penetrate structures. Lower band frequency bands require less power to travel large distances and propagate well providing geographic coverage, whereas higher bandwidth spectrum is favored in urban settings where the goal is increased data capacity and cell sites are dense, with limited coverage areas. Spectrum is licensed by geographic areas that can vary from the size of a county to significantly larger expanses. Licenses can cover densely populated urban areas to sparsely populated rural regions. Pricing for spectrum licenses will vary, sometimes significantly based on the frequency, population area or restrictions associated with the authorization for use obtained from the FCC. Population or “Pop” is a key input to valuing each geographic license. The amount of spectrum included in a license is measured in terms of megahertz, referred to as “MHz.” The wider the band the greater the MHz. The market approach assessed the value of our spectrum using benchmarks, based on market transactions, which may include spectrum auctions and secondary market transactions, either acquisitions of spectrum or of businesses for which spectrum values can reliably be inferred. The market approach looked at the value of each band of our spectrum by block and geographic area based on pairing the spectrum in a manner that yielded its highest and best use. Prices were then calculated on an amount per MHz-Pop basis (where the numerator is the total value of the licenses and the denominator is the product of the population and MHz) based upon the most relevant data points. Finally, a discount was applied to the analysis for lack of marketability on certain of our holdings based on sale restrictions associated with those specific bands. Our spectrum holdings include low-band, lower mid-band, upper mid-band (collectively referred to as “Low-Mid Band Licenses”) and high-band licenses. As part of our impairment assessment we performed the market approach during the fourth quarter of 2023 and concluded that the fair value of these licenses are substantially in excess of their carrying value. In 2022, management performed a quantitative assessment to determine whether the fair value of these licenses exceed the carrying amount. In our assessment, we performed the market approach and the income approach during the fourth quarter of 2022 and concluded that under both scenarios the fair value of these licenses are substantially in excess of their carrying value. In 2021, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of these licenses exceed the carrying amount. In our assessment, we considered several factors, including, among other things, the projected financial performance of our Wireless segment, the business enterprise value of our Wireless segment, and market transactions for wireless spectrum licenses including auction results. In assessing these factors, we considered both macroeconomic conditions and industry and market conditions. In contemplating all factors in their totality, we concluded that it is more likely than not that the fair value of these licenses exceeds their carrying amount. During 2023, 2022, and 2021, our multichannel video distribution and data service (“MVDDS”) wireless spectrum licenses were assessed as a single unit of accounting. For 2023, 2022 and 2021, management assessed these licenses qualitatively. Our qualitative assessment focused on recent auction results and historical market activity. We concluded that it is more likely than not that the fair value of these licenses exceeded their carrying amount. Changes in circumstances or market conditions could result in a write-down of any of the above Wireless spectrum licenses in the future. Goodwill Goodwill represents the excess of the consideration transferred over the estimated fair values of assets acquired and liabilities assumed as of the acquisition date. We test goodwill for impairment at the reporting unit level, which includes, among others, the SLING TV, DISH TV, Retail Wireless and 5G Network Deployment reporting units. Historically the majority of our goodwill relates to the Retail Wireless and 5G Network Deployment segments. We perform our annual impairment assessment for goodwill and other indefinite-lived intangible assets each year during the fourth quarter or more frequently if events or changes in circumstances indicate an impairment may be possible. W e may consider qualitative factors to assess if it is more likely than not that the fair value for goodwill is below the carrying amount. If we determine in the qualitative assessment that it is more likely than not that the fair value is less than its carrying value, We may also elect to bypass the qualitative assessment and perform a quantitative assessment. Our assessment process included, among other things, discounted cash flow analyses, consideration of fair values of tangible and indefinite-lived intangible assets held by the reporting units and our parent’s recent market capitalization. Our assessment indicated the goodwill attributed to certain acquisitions was no longer supported based on the sustained decrease in our parent’s market capitalization. As such, we recorded a total noncash impairment charge of approximately $225 million in “Impairment of long-lived assets and goodwill” on our Consolidated Statements of Operations and Comprehensive Income (Loss). No impairments were indicated for any reporting unit for the years ended December 31, 2022 and 2021. The following table presents the changes in the carrying amounts of goodwill by operating segment: Goodwill Pay-TV Retail Wireless 5G Network Deployment Total (In thousands) Balance as of December 31, 2021, net of accumulated impairment losses $ 6,457 $ 98,657 $ 119,903 $ 225,017 Balance as of December 31, 2022, net of accumulated impairment losses $ 6,457 $ 98,657 $ 119,903 $ 225,017 Impairment of goodwill (6,457) (98,657) (119,903) (225,017) Balance as of December 31, 2023, net of accumulated impairment losses $ — $ — $ — $ — Accumulated impairment losses as of December 31, 2023 $ (6,457) $ (98,657) $ (119,903) $ (225,017) |
Capitalized Interest | Capitalized Interest We capitalize interest associated with the acquisition or construction of certain assets, including, among other things, our Wireless spectrum licenses, build-out costs associated with our 5G Network Deployment and satellites. Capitalization of interest begins when, among other things, steps are taken to prepare the asset for its intended use and ceases when the asset is ready for its intended use or when these activities are substantially suspended. We are currently commercializing our 5G Network Deployment . As a result, the interest expense related to the carrying amount of the is being capitalized. Historically, the qualifying assets exceeded the carrying value of our long-term debt and finance lease obligations, therefore substantially all of our interest expense was being capitalized. However, as the qualifying assets, including certain bands of wireless spectrum licenses, are placed into service, we will no longer capitalize interest on those assets and we will begin to expense interest on our Consolidated Statements of Operations and Comprehensive Income (Loss). |
Business Combinations | Business Combinations When we acquire a business that is not subject to rules pertaining to common control, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component using various valuation techniques, including the market approach, income approach and/or cost approach. The accounting standard for business combinations requires identifiable assets, liabilities, noncontrolling interests and goodwill acquired to be recorded at acquisition date fair values. Transaction costs related to the acquisition of the business are expensed as incurred. Costs associated with the issuance of debt associated with a business combination are capitalized and included as a yield adjustment to the underlying debt’s stated rate. Acquired intangible assets other than goodwill are amortized over their estimated useful lives unless the lives are determined to be indefinite. Amortization of these intangible assets in general are recognized on a straight-line basis over an average finite useful life primarily ranging from approximately one to 20 years or in relation to the estimated discounted cash flows over the life of the intangible asset. |
Long-Term Deferred Revenue and Other Long-Term Liabilities | Long-Term Deferred Revenue and Other Long-Term Liabilities Certain programmers provide us up-front payments. Such amounts are deferred and recognized as reductions to “Cost of services” on a straight-line basis over the relevant remaining contract term (generally up to ten years ). The current and long-term portions of these deferred credits are recorded on our Consolidated Balance Sheets in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities,” respectively. |
Sales Taxes | Sales Taxes We account for sales taxes imposed on our goods and services on a net basis on our Consolidated Statements of Operations and Comprehensive Income (Loss). Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. |
Income Taxes | Income Taxes We establish a provision for income taxes currently payable or receivable and for income tax amounts deferred to future periods. Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that exist between the book and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that such net deferred tax assets will not be realized. From time to time, we engage in transactions where the tax consequences may be subject to uncertainty. We record a liability when, in management’s judgment, a tax filing position does not meet the more likely than not threshold. For tax positions that meet the more likely than not threshold, we may record a liability depending on management’s assessment of how the tax position will ultimately be settled. We adjust our estimates periodically for ongoing examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and precedent. We classify interest and penalties, if any, associated with our uncertain tax positions as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss). |
Fair Value Measurements | Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: ● Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ● Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant inputs and significant value drivers are observable in active markets ; and ● Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of December 31, 2023 and 2022, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. Fair values of our marketable investment securities are measured on a recurring basis based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Additionally, we use fair value measurements from time to time in connection with other investments, asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were 31, 2023 and 2022. See Note 5 for the fair value of our marketable investment securities and derivative instruments. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, relat ed securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 9 for the fair value of our long-term debt. |
Convertible Long-Term Debt | Convertible Long-Term Debt Historically, for embedded conversion features, we valued and bifurcated the conversion option associated with convertible notes (the “equity component”) from the host debt instrument. The initial value of the equity component on the convertible notes was recorded in “Additional paid-in capital” within “Stockholder’s Equity (Deficit)” on our Consolidated Balance Sheets with the offset recorded as the debt discount. In accordance with ASU 2020-06 Debt – Debt with Conversion and Other Options and Derivatives and Hedging – Contracts in Entity’s Own Equity (“ASU 2020-06”), which we adopted during the first quarter of 2021, the equity component related to our convertible notes of $1.051 billion has been reclassified from “ Additional paid-in capital ” within “Stockholder’s Equity (Deficit)” to “ Long-term debt and finance lease obligations, net of current portion” and the associated deferred taxes of $246 million has been reclassified from “ Additional paid-in capital ” within “Stockholder’s Equity (Deficit)” to “Deferred tax liabilities, net” on our Consolidated Balance Sheets. As a result of the merger with EchoStar, we have reassessed the classification of the embedded conversion features on all of our convertible debt. Historically, we concluded that these financial instruments were not derivatives. However, as a result in the change of equity issuer (from us to our parent EchoStar) we concluded that the financial instruments are no longer indexed to their own equity and now require derivative accounting. |
Deferred Debt Issuance Costs and Debt Discounts | Deferred Debt Issuance Costs and Debt Discounts Costs of issuing debt, including premiums and discounts relative to par value, are generally deferred and amortized to “Interest expense, net of amounts capitalized” on our Consolidated Statements of Operations and Comprehensive Income (Loss) using the effective interest rate method over the terms of the respective notes. We report unamortized debt issuance costs as a reduction of the related long-term debt on our Consolidated Balance Sheets. See Note 9 for further information. |
Revenue Recognition | Revenue Recognition Pay-TV Segment Our Pay-TV segment revenue is primarily derived from Pay-TV subscriber revenue. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; broadband services; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 14 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year. Revenues arising from our in-home services that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed. For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”) is one month and as a result the revenue recognized for these subscribers for a given month is equal to the amount billed in that month, except for certain nonrefundable upfront fees that are accounted for as material rights, as discussed above. Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month. Retail Wireless Segment Our Retail Wireless segment revenue is primarily derived from Wireless subscriber revenue and selling wireless devices to prepaid and postpaid subscribers. The majority of our subscribers are prepaid under the Boost Mobile and Gen Mobile brands with a smaller subset of postpaid subscribers serviced under the Boost postpaid brand. Prepaid subscribers prepay for their monthly service on a month-to-month contract. Our contracts with prepaid customers are determined to be one month . Postpaid subscribers are qualified to pay for their service after it has been provided and pay for their monthly service on a month-to-month contract. Our contracts with postpaid customers typically have an enforceable duration of one month . However, promotional bill credits offered to a customer on an equipment sale that are paid over time and are contingent on the customer maintaining a service contract may result in an extended service contract based on whether a substantive penalty is deemed to exist. We have both an indirect sales channel, which includes third-party owned retail stores and big box stores, as well as online through Amazon, and a direct sales channel, which services customers online through each respective brand’s website. To deliver products to third-party retail stores through the indirect sales channel, we use direct distribution partners to facilitate product delivery. Our contracts with customers may involve more than one performance obligation, which include wireless services, wireless devices or a combination thereof, and we allocate the transaction price between each performance obligation based on its relative standalone selling price. Although our Retail Wireless segment offers both products and services, we have determined that not all contracts with customers are bundled arrangements as the wireless device and service are sometimes sold at different times, and in the case of certain sales arrangements through the indirect sales channel, have different customers. When control of the product is transferred to an intermediary other than the end customer in the indirect channel, the customer for the wireless device is the intermediary, such as the direct distribution partner, whereas for the service the subscriber is the end consumer. When control of the product is not transferred to the intermediary, in the indirect channel the product is accounted for as consigned inventory and the customer for both the wireless device and service is the end customer. Service revenues may also include other value added services to subscribers, which may be recorded either gross or net within our Consolidated Statements of Operations and Comprehensive Income (Loss) depending on whether we are deemed to be the principal or agent in the relationship with the subscriber. Service revenues are recognized when the service has been provided and no further obligation exists. Concessions given to subscribers are recorded as a reduction to revenue. Equipment revenues are primarily related to the sale of wireless devices. Equipment revenue is recognized when control of the product is transferred to our customer, either the direct distribution partner or the end customer, as described above. We offer postpaid customers the option to pay for devices in installments, generally over 36 months . We recognize the effects of a financing component as a reduction of the transaction price in contracts where customers purchase their devices with an installment term of more than one year, including those financing components that are not considered to be significant to the contract. We have elected the practical expedient of not recognizing the effects of a significant financing component for contracts where we expect, at contract inception, that the period between the transfer of a performance obligation to a customer and the customer’s payment for that performance obligation will be one year or less. We may offer certain promotions that provide our customers on device installment plans with the right to upgrade to a new device after paying a specified portion of their device payment plan agreement amount and trading in their device in good working order. We account for this trade-in right as a guarantee obligation. The full amount of the trade-in right’s fair value is recognized as a guarantee liability and results in a reduction to the revenue recognized upon the sale of the device. The total transaction price is reduced by the guarantee, which is accounted for outside the scope of ASC 606, and the remaining transaction price is allocated between the performance obligations within the contract. Sales of equipment in the indirect sales channel often include credits subsequently paid to the direct distribution partner as a reimbursement for any discount promotions offered to the end consumer. These credits (payments to a customer) are accounted for as variable consideration when estimating the amount of revenue to recognize from the sales of equipment to indirect dealers and are estimated based on historical experience and other factors, such as expected promotional activity. For wireless devices sold with a right of return, we defer a portion of equipment revenue and cost of sales to reflect this variable consideration. Governmental Funding. Contract Balances The timing of revenue recognition generally differs from the timing of invoicing to customers. A contract asset is recorded when revenue is recognized in advance of our right to receive consideration (i.e., we must perform additional services in order to receive consideration). Amounts are recorded as trade accounts receivable when our right to consideration is unconditional. When consideration is received, or we have an unconditional right to consideration in advance of delivery of goods or services, a contract liability is recorded. The transaction price can include nonrefundable upfront fees, which are allocated to the identifiable performance obligations. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. Our current Wireless subscribers, the majority of which are prepaid, generate deferred revenue. We do not adjust the amount of consideration for financing impacts when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year . Contract assets are included in “Trade accounts receivable, net” and contract liabilities are included in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Consolidated Balance Sheets. Contract balances are amortized over the contract term. See Note 15 for further information, including balance and activity detail about our allowance for credit losses and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs in our Pay-TV and Retail Wireless segments, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated customer life or the contract term. These amounts are capitalized in “Prepaids and other assets” and “Other noncurrent assets, net” on our Consolidated Balance Sheets, and then amortized in “Selling, general and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). |
Leases | Leases Lessee Accounting We enter into non-cancelable operating and finance leases for, among other things, communication towers, satellites, satellite-related ground infrastructure, data centers, office space, dark fiber and transport equipment, warehouses and distribution centers, vehicles and other equipment. Substantially all of our leases have remaining lease terms from one to 13 years , some of which include renewal options, and some of which include options to terminate the leases within one year. For certain arrangements (generally communication towers), the lease term includes the non-cancelable period plus the renewal period that we are reasonably certain to exercise. We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses and liabilities” and “Operating lease liabilities” on our Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 8 for further information on our lease expenses. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. When our leases do not provide an implicit rate, we use our IBR based on the information available at commencement date in determining the present value of lease payments. Our IBR is based on an estimated secured rate for the same term as the underlying lease plus a credit spread as secured by our assets. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lessor Accounting DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers, we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The non-lease service revenue related to equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. |
Cost of Services | Cost of Services Pay-TV Segment “Cost of services” on our Consolidated Statements of Operations and Comprehensive Income (Loss) principally includes programming expenses and other operating costs related to our Pay-TV segment. The cost of television programming distribution rights is generally incurred on a per subscriber basis and various upfront carriage payments are recognized when the related programming is distributed to subscribers. Long-term flat rate programming contracts are generally charged to expense using the straight-line method over the term of the agreement. The cost of television programming rights to distribute live sporting events for a season or tournament is charged to expense using the straight-line method over the course of the season or tournament. Retail Wireless Segment “Cost of services” on our Consolidated Statements of Operations and Comprehensive Income (Loss) principally includes costs incurred under the MNSA and NSA. Costs incurred under the MNSA and NSA are recognized as the services are performed or as incurred. |
Cost of Sales - Equipment and Other | Cost of Sales – Equipment and Other Pay-TV Segment “Cost of sales – equipment and other” on our Consolidated Statements of Operations and Comprehensive Income (Loss) principally includes costs related to the non-subsidized sales of Pay-TV equipment. Costs are generally recognized as products are delivered to customers and the related revenue is recognized. Retail Wireless Segment “Cost of sales – equipment and other” on our Consolidated Statements of Operations and Comprehensive Income (Loss) principally includes the cost of wireless devices and other related items, certain direct costs of wireless mobile network operations to deliver wireless voice and data services. Costs are generally recognized as products are delivered to customers and the related revenue is recognized. 5G Network Deployment Segment “Cost of sales – equipment and other” on our Consolidated Statements of Operations and Comprehensive Income (Loss) principally includes the lease expense on communication towers and transport as well as cloud services. Lease costs are generally recognized on a straight-line basis over the lease term. Costs related to cloud services are either recognized ratably over the contract term or based on usage. |
Advertising Costs | Advertising Costs We recognize advertising expense when incurred as a component of “Selling, general and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising expenses totaled |
Research and Development | Research and Development Research and development costs, not incurred in connection with customer requirements, are expensed as incurred and are included “Selling, general and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Research and development costs totaled $42 mill ion, $45 million and $29 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
New Accounting Pronouncements | New Accounting Pronouncements Joint Ventures. Business Combinations — Joint Venture Formations (Subtopic 805-60) Segment Reporting. Segment Reporting (Topic 280): Improvements to Reporting Segment Disclosures Income Taxes Income Taxes (Topic 740) Improvements to Income Tax Disclosures (“ASU 2023-09”), which will enhance income tax disclosures. ASU 2023-09 requires among other items disaggregated information in a reporting entity’s rate reconciliation table, clarification on uncertain tax positions and the related financial statement impact as well as information on income taxes paid on a disaggregated basis. This standard will be effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We are evaluating the impact the adoption of ASU 2023-09 will have on our Consolidated Financial Statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Redeemable Noncontrolling Interest | |
Scheduel of changes in the carrying amounts of goodwill by operating segment | Goodwill Pay-TV Retail Wireless 5G Network Deployment Total (In thousands) Balance as of December 31, 2021, net of accumulated impairment losses $ 6,457 $ 98,657 $ 119,903 $ 225,017 Balance as of December 31, 2022, net of accumulated impairment losses $ 6,457 $ 98,657 $ 119,903 $ 225,017 Impairment of goodwill (6,457) (98,657) (119,903) (225,017) Balance as of December 31, 2023, net of accumulated impairment losses $ — $ — $ — $ — Accumulated impairment losses as of December 31, 2023 $ (6,457) $ (98,657) $ (119,903) $ (225,017) |
Supplemental Data - Statement_2
Supplemental Data - Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Data - Statements of Cash Flows | |
Schedule of supplemental cash flow and other non-cash data | For the Years Ended December 31, 2023 2022 2021 (In thousands) Cash paid for interest (including capitalized interest) $ 1,301,783 $ 1,044,276 $ 781,874 Cash received for interest 18,542 8,145 5,455 Cash paid for income taxes, net of (refunds) (8,138) 57,278 72,476 Capitalized interest (1) 1,291,290 1,040,971 821,455 Employee benefits paid in Class A common stock 14,680 26,348 30,321 Convertible debt reclassified per ASU 2020-06 — — 1,051,344 Deferred taxes reclassified per ASU 2020-06 — — 245,778 Vendor financing 87,343 108,048 26,627 FCC licenses reclassification — 122,657 915,449 Accrued capital expenditures 219,200 397,137 449,093 Asset retirement obligation 74,189 122,390 50,765 Revaluation of contingent liabilities — 47,916 — (1) See Note 2 for further information. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Comprehensive Income (Loss) | |
Schedule of tax effects allocated to component of other comprehensive income (loss) | For the Years Ended December 31, 2023 2022 2021 Before Tax Net Before Tax Net Before Tax Net Tax (Expense) of Tax Tax (Expense) of Tax Tax (Expense) of Tax Amount Benefit Amount Amount Benefit Amount Amount Benefit Amount (In thousands) Foreign currency translation adjustments $ 356 $ (31) $ 325 $ (4,160) $ 710 $ (3,450) $ 1,787 $ (482) $ 1,305 Unrealized holding gains (losses) on available-for-sale securities (267) 65 (202) 191 (46) 145 (208) 49 (159) Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss) 304 (74) 230 (7) 2 (5) (13) 3 (10) Other comprehensive income (loss) $ 393 $ (40) $ 353 $ (3,976) $ 666 $ (3,310) $ 1,566 $ (430) $ 1,136 |
Schedule of accumulated other comprehensive income (loss) | Foreign Unrealized/ Currency Recognized Translation Gains Accumulated Other Comprehensive Income (Loss) Adjustment (Losses) Total (In thousands) Balance as of December 31, 2021 $ 446 $ (165) $ 281 Foreign currency translation adjustments (3,450) — (3,450) Other comprehensive income (loss) before reclassification — 145 145 Amounts reclassified from accumulated other comprehensive income (loss) — (5) (5) Balance as of December 31, 2022 $ (3,004) $ (25) $ (3,029) Foreign currency translation adjustments 325 — 325 Other comprehensive income (loss) before reclassification — (202) (202) Amounts reclassified from accumulated other comprehensive income (loss) — 230 230 Balance as of December 31, 2023 $ (2,679) $ 3 $ (2,676) |
Marketable Investment Securit_2
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |
Schedule of marketable investment securities, restricted cash and cash equivalents, and other investment securities | As of December 31, December 31, 2023 2022 (In thousands) Marketable investment securities: Current marketable investment securities: Strategic - available-for-sale $ 144 $ 144 Strategic - trading/equity 7,799 655 Other 179 835,184 Total current marketable investment securities 8,122 835,983 Restricted marketable investment securities (1) 19,772 41,689 Total marketable investment securities 27,894 877,672 Restricted cash and cash equivalents (1) 89,107 62,925 Other investment securities, net: Equity method investments 126,179 129,655 Cost method investments 3,448 750 Fair value method investments 39,198 37,795 Total other investment securities, net 168,825 168,200 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 285,826 $ 1,108,797 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Consolidated Balance Sheets. |
Schedule of fair value measurements | As of December 31, 2023 December 31, 2022 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 347,976 $ 304,410 $ 43,566 $ — $ 1,620,458 $ 174,050 $ 1,446,408 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 7,567 $ 7,567 $ — $ — $ 22,824 $ 22,824 $ — $ — Commercial paper 7,500 — 7,500 — 696,324 — 696,324 — Corporate securities 4,705 — 4,705 — 156,380 — 156,380 — Other 323 — 179 144 1,489 — 1,345 144 Equity securities 7,799 7,799 — — 655 655 — — Total $ 27,894 $ 15,366 $ 12,384 $ 144 $ 877,672 $ 23,479 $ 854,049 $ 144 |
Schedule of gains and losses on sales and changes in carrying amounts of investments and other | For the Years Ended December 31, Other, net: 2023 2022 2021 (In thousands) Marketable and non-marketable investment securities - realized and unrealized gains (losses) $ 4,085 $ 26,186 $ (3,137) Derivative instruments - net realized and/or unrealized gains (losses) (1) (1,793,387) 1,015,387 (13,000) Gains (losses) related to early redemption of debt (2) 73,024 (922) (3,587) Equity in earnings (losses) of affiliates (3,835) 2,616 (1,051) Other (21,763) (4,285) 41,332 Total $ (1,741,876) $ 1,038,982 $ 20,557 (1) The change in the derivative’s carrying value for the year ended December 31, 2023 was primarily driven by a decrease in our estimated probability of exercising the option. This amount includes the $100 million prepayment previously made to T-Mobile. (2) This change primarily resulted from repurchases of our Convertible Notes and 5 7/8% Senior Notes due 2024 during the year ended December 31, 2023. See Note 9 for further information. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory | |
Schedule of inventory | As of December 31, December 31, 2023 2022 (In thousands) Finished goods $ 407,620 $ 447,322 Work-in-process and service repairs 35,464 19,351 Consignment (1) 47,723 14,792 Raw materials 6,251 20,908 Total inventory $ 497,058 $ 502,373 (1) This change primarily resulted from a distribution agreement related to certain Boost postpaid wireless devices. |
Property and Equipment and In_2
Property and Equipment and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment and Intangible Assets | |
Schedule of property and equipment | Depreciable As of Life December 31, December 31, (In Years) 2023 2022 (In thousands) Equipment leased to customers 2 - 5 $ 1,181,193 $ 1,318,272 Satellites 6 - 15 1,718,865 1,718,865 Satellites acquired under finance lease agreements 15 344,447 344,447 Furniture, fixtures, equipment and other 2 - 20 908,924 903,190 5G Network Deployment equipment (1) 3 - 15 4,263,327 770,153 Software and computer equipment 2 - 6 2,111,305 1,666,962 Buildings and improvements 5 - 40 381,757 380,519 Land - 17,513 17,513 Construction in progress - 1,802,000 3,170,623 Total property and equipment 12,729,331 10,290,544 Accumulated depreciation (5,327,384) (4,650,425) Property and equipment, net $ 7,401,947 $ 5,640,119 (1) Includes 5G Network Deployment assets acquired under finance lease agreements. |
Schedule of construction in progress | As of December 31, December 31, 2023 2022 (In thousands) Pay-TV $ 162,055 $ 36,936 Retail Wireless — — 5G Network Deployment 1,639,945 3,133,687 Total construction in progress $ 1,802,000 $ 3,170,623 |
Schedule of depreciation and amortization expense | For the Years Ended December 31, 2023 2022 2021 (In thousands) Equipment leased to customers $ 166,950 $ 191,746 $ 244,755 Satellites 134,948 148,051 189,126 Buildings, furniture, fixtures, equipment and other 91,942 40,703 25,279 5G Network Deployment equipment 371,640 29,992 8,263 Software and computer equipment 235,820 153,040 93,119 Intangible assets and other amortization expense 180,621 153,541 164,310 Total depreciation and amortization $ 1,181,921 $ 717,073 $ 724,852 |
Schedule of pay-TV satellite fleet | Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar X February 2006 110 N/A EchoStar XI July 2008 110 N/A EchoStar XIV March 2010 119 N/A EchoStar XV July 2010 61.5 N/A EchoStar XVI November 2012 61.5 N/A EchoStar XVIII June 2016 61.5 N/A EchoStar XXIII March 2017 110 N/A Under Construction: EchoStar XXV 2026 110 N/A Leased from Other Third-Party: Anik F3 April 2007 118.7 April 2025 Nimiq 5 September 2009 72.7 September 2024 |
Summary of asset retirement obligations | As of December 31, 2023 2022 (In thousands) Balance at beginning of period $ 183,135 $ 51,551 Liabilities incurred 74,189 124,822 Accretion expense 20,963 6,762 Revision to estimated cash flows — — Balance at end of period $ 278,287 $ 183,135 Total included in Other long-term liabilities $ 278,287 $ 183,135 |
Schedule of identifiable intangibles subject to amortization | As of December 31, 2023 2022 Intangible Accumulated Intangible Accumulated Assets Amortization Assets Amortization (In thousands) Technology-based $ 63,766 $ (60,590) $ 63,545 $ (60,022) Trademarks 135,134 (71,640) 135,134 (61,007) Contract-based 41,500 (41,500) 41,500 (41,500) Customer relationships 628,598 (535,778) 628,598 (366,357) Total $ 868,998 $ (709,508) $ 868,777 $ (528,886) |
Schedule of estimated future amortization of identifiable intangible assets | Estimated future amortization of our identifiable intangible assets as of December 31, 2023 is as follows (in thousands): For the Years Ended December 31, (In thousands) 2024 $ 95,641 2025 13,534 2026 11,838 2027 11,355 2028 10,872 Thereafter 16,029 Total $ 159,269 |
Schedule of goodwill | As of December 31, December 31, 2023 2022 (In thousands) Pay-TV $ — $ 6,457 Retail Wireless — 98,657 5G Network Deployment — 119,903 Total goodwill $ — $ 225,017 |
Schedule of regulatory authorizations | As of December 31, 2023 2022 (In thousands) Owned: DBS Licenses $ 677,409 $ 677,409 700 MHz Licenses 711,871 711,871 AWS-4 Licenses 1,940,000 1,940,000 H Block Licenses 1,671,506 1,671,506 600 MHz Licenses 6,213,335 6,212,579 MVDDS Licenses 24,000 24,000 28 GHz Licenses 2,883 2,883 24 GHz Licenses 11,772 11,772 37 GHz, 39 GHz & 47 GHz Licenses 202,533 202,533 3550-3650 MHz Licenses 912,939 912,939 3.7-3.98 GHz Licenses 2,969 2,688 3.45-3.55 GHz Licenses 7,327,989 7,327,989 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz 972 — AWS-3 5,618,930 5,618,930 Subtotal 25,319,108 25,317,099 Noncontrolling Investments: SNR 4,271,459 4,271,459 Capitalized Interest (1) 8,523,682 7,344,515 Total $ 38,114,249 $ 36,933,073 (1) See Note 2 for further information. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Components of Lease Expense | For the Years Ended December 31, 2023 2022 2021 (In thousands) Operating lease cost (1) $ 516,920 $ 332,385 $ 89,565 Short-term lease cost (2) 10,521 13,328 12,956 Finance lease cost: Amortization of right-of-use assets (3) 66,966 28,037 65,967 Interest on lease liabilities (3) 14,090 12,145 14,693 Total finance lease cost (3) 81,056 40,182 80,660 Total lease costs $ 608,497 $ 385,895 $ 183,181 (1) The increase in operating lease cost is primarily related to communication tower leases. (2) Leases that have terms of 12 months or less. (3) The decrease in finance lease cost for the year ended December 31, 2022 is primarily related to the QuetzSat-1 finance lease, which expired in November 2021, as well as the Anik F3 finance lease that was extended in April 2022 and as a result is currently accounted for as an operating lease. The increase in finance lease cost for the year ended December 31, 2023 is primarily related to equipment for our 5G Network Deployment. |
Summary of Supplemental cash flow information related to leases | For the Years Ended December 31, 2023 2022 2021 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 346,091 $ 163,320 $ 72,479 Operating cash flows from finance leases $ 13,400 $ 11,053 $ 12,868 Financing cash flows from finance leases $ 53,467 $ 42,617 $ 62,679 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 741,017 $ 1,398,050 $ 1,467,983 Finance leases $ 53,771 $ 66,312 $ — |
Summary of supplemental balance sheet information related to leases | As of December 31, 2023 2022 (In thousands) Operating Leases: Operating lease assets (1) $ 2,934,862 $ 2,687,522 Other current liabilities (1) $ 301,172 $ 194,030 Operating lease liabilities (1) 2,992,863 2,687,883 Total operating lease liabilities (1) $ 3,294,035 $ 2,881,913 Finance Leases: Property and equipment, gross $ 465,549 $ 411,778 Accumulated depreciation (370,768) (303,802) Property and equipment, net $ 94,781 $ 107,976 Other current liabilities $ 56,459 $ 48,066 Other long-term liabilities 67,199 75,287 Total finance lease liabilities $ 123,658 $ 123,353 Weighted Average Remaining Lease Term: Operating leases 10.7 years 11.8 years Finance leases 2.2 years 2.7 years Weighted Average Discount Rate: Operating leases 9.5% 7.3% Finance leases 9.7% 9.8% (1) In the fourth quarter of 2023, we revised certain terms with a vendor supplying communication towers. The revision in terms resulted in a lease modification, which was not accounted for as a separate contract. On the measurement date, we reassessed the terms of the original agreement, including but not limited to the timing of future cash flows, the remaining economic life of the underlying asset, the discount rate and the lease classification. This resulted in a reduction to both the operating lease asset and operating lease liability by approximately $227 million, which is included in “Operating lease assets,” and “Operating lease liabilities” on our Consolidated Balance Sheets. |
Summary of maturities of operating lease liabilities | Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2024 $ 423,347 $ 66,073 $ 489,420 2025 463,276 35,392 498,668 2026 495,472 36,588 532,060 2027 495,786 2,574 498,360 2028 454,612 — 454,612 Thereafter 3,067,035 — 3,067,035 Total lease payments 5,399,528 140,627 5,540,155 Less: Imputed interest (2,105,493) (16,969) (2,122,462) Total 3,294,035 123,658 3,417,693 Less: Current portion (301,172) (56,459) (357,631) Long-term portion of lease obligations $ 2,992,863 $ 67,199 $ 3,060,062 |
Summary of maturities of finance lease liabilities | Maturities of lease liabilities as of December 31, 2023 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2024 $ 423,347 $ 66,073 $ 489,420 2025 463,276 35,392 498,668 2026 495,472 36,588 532,060 2027 495,786 2,574 498,360 2028 454,612 — 454,612 Thereafter 3,067,035 — 3,067,035 Total lease payments 5,399,528 140,627 5,540,155 Less: Imputed interest (2,105,493) (16,969) (2,122,462) Total 3,294,035 123,658 3,417,693 Less: Current portion (301,172) (56,459) (357,631) Long-term portion of lease obligations $ 2,992,863 $ 67,199 $ 3,060,062 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt and Finance Lease Obligations | |
Schedule of carrying amount and fair value of our debt facilities | As of December 31, 2023 December 31, 2022 Issuer Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 5% Senior Notes due 2023 (1) DDBS $ — $ — $ 1,443,179 $ 1,441,635 2 3/8% Convertible Notes due 2024 (2) DISH 951,168 944,034 1,000,000 906,970 5 7/8% Senior Notes due 2024 (3) DDBS 1,982,544 1,872,275 2,000,000 1,870,940 0% Convertible Notes due 2025 (4) DISH 1,957,197 1,228,141 2,000,000 1,287,540 7 3/4% Senior Notes due 2026 DDBS 2,000,000 1,388,060 2,000,000 1,620,280 3 3/8% Convertible Notes due 2026 (5) DISH 2,908,801 1,570,753 3,000,000 1,894,230 5 1/4% Senior Secured Notes due 2026 DDBS 2,750,000 2,366,073 2,750,000 2,336,813 11 3/4% Senior Secured Notes due 2027 (6) DISH 3,500,000 3,668,980 2,000,000 2,071,240 7 3/8% Senior Notes due 2028 DDBS 1,000,000 600,160 1,000,000 708,320 5 3/4% Senior Secured Notes due 2028 DDBS 2,500,000 2,013,125 2,500,000 2,013,675 5 1/8% Senior Notes due 2029 DDBS 1,500,000 774,600 1,500,000 976,755 Other notes payable 113,564 113,564 138,303 138,303 Subtotal 21,163,274 $ 16,539,765 21,331,482 $ 17,266,700 Unamortized deferred financing costs and other debt discounts, net (67,215) (105,697) Finance lease obligations (7) 123,658 123,353 Total long-term debt and finance lease obligations (including current portion) $ 21,219,717 $ 21,349,138 (1) We had repurchased or redeemed the principal balance of our 5% Senior Notes due 2023 as of March 15, 2023, the instrument’s maturity date. (2) During the year ended December 31, 2023, we repurchased approximately $49 million of our 2 3/8% Convertible Notes due 2024 in open market trades. The remaining balance of approximately $951 million matured and was redeemed on March 15, 2024 . (3) During the year ended December 31, 2023, we repurchased approximately $17 million of our 5 7/8% Senior Notes due 2024 in open market trades. The remaining balance of approximately $1.983 billion matures on November 15, 2024 and is included in “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2023. (4) During the year ended December 31, 2023, we repurchased approximately $43 million of our 0% Convertible Notes due 2025 in open market trades. The remaining balance of approximately $1.957 billion matures on December 15, 2025 . (5) During the year ended December 31, 2023, we repurchased approximately $91 million of our 3 3/8% Convertible Notes due 2026 in open market trades. The remaining balance of approximately $2.909 billion matures on August 15, 2026 . (6) On January 26, 2023, we issued an additional $1.5 billion aggregate principal amount of our 11 3/4% Senior Secured Notes due 2027. (7) Disclosure regarding fair value of finance leases is not required. |
Schedule of interest on long-term debt | Annual Semi-Annual Debt Service Issuer Payment Dates Requirements (In thousands) 2 3/8% Convertible Notes due 2024 (1) DISH March 15 and September 15 $ 23,750 5 7/8% Senior Notes due 2024 (2) DDBS May 15 and November 15 $ 117,500 7 3/4% Senior Notes due 2026 DDBS January 1 and July 1 $ 155,000 3 3/8% Convertible Notes due 2026 DISH February 15 and August 15 $ 101,250 5 1/4% Senior Secured Notes due 2026 DDBS June 1 and December 1 $ 144,375 11 3/4% Senior Secured Notes due 2027 DISH May 15 and November 15 $ 411,250 7 3/8% Senior Notes due 2028 DDBS January 1 and July 1 $ 73,750 5 3/4% Senior Secured Notes due 2028 DDBS June 1 and December 1 $ 143,750 5 1/8% Senior Notes due 2029 DDBS June 1 and December 1 $ 76,875 (1) Our 2 3/8% Convertible Notes due 2024 matured and were redeemed on March 15, 2024 . (2) Our 5 7/8% Senior Notes due 2024 mature on November 15, 2024 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2023. |
Schedule of other long term debt and capital lease obligations | As of December 31, 2023 2022 (In thousands) Satellites and other finance lease obligations $ 123,658 $ 123,353 Notes payable related to satellite vendor financing and other debt payable in installments through 2032 with interest rates ranging from approximately 0% to 11.4% 113,564 138,303 Total 237,222 261,656 Less: current portion (107,717) (104,011) Other long-term debt and finance lease obligations, net of current portion $ 129,505 $ 157,645 |
Income Taxes and Accounting f_2
Income Taxes and Accounting for Uncertainty in Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes and Accounting for Uncertainty in Income Taxes | |
Schedule of components of the (provision for) benefit from income taxes | For the Years Ended December 31, 2023 2022 2021 (In thousands) Current (benefit) provision: Federal $ (29,307) $ (23,571) $ 126,435 State 29,254 59,690 31,944 Foreign 3,301 (7,118) 2,387 Total current (benefit) provision 3,248 29,001 160,766 Deferred (benefit) provision: Federal (293,666) 615,323 509,405 State (152,725) 85,045 86,822 Increase (decrease) in valuation allowance 71,481 2,367 5,817 Total deferred (benefit) provision (374,910) 702,735 602,044 Total (benefit) provision $ (371,662) $ 731,736 $ 762,810 |
Schedule of reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes | For the Years Ended December 31, 2023 2022 2021 % of pre-tax income/(loss) Statutory rate (21.0) 21.0 21.0 State income taxes, net of federal benefit (5.0) 3.1 2.9 Rates different than statutory 0.1 — — Increase (decrease) in valuation allowance 4.8 — 0.2 Tax credits (2.7) (0.5) (0.3) Impairments 0.7 — — Other, net (1.7) - (0.1) Total (benefit) provision for income taxes (24.8) 23.6 23.7 |
Schedule of deferred tax assets and liabilities | As of December 31, 2023 2022 (In thousands) Deferred tax assets: NOL, interest, credit and other carryforwards $ 1,054,749 $ 445,389 Accrued and prepaid expenses 866,277 672,854 Stock-based compensation 20,934 23,738 Unrealized (gains) losses on available for sale and other investments (1) 198,587 — Discount on convertible notes and convertible note hedge transaction, net 46,636 64,643 Deferred revenue 13,197 6,903 Total deferred tax assets 2,200,380 1,213,527 Valuation allowance (153,453) (81,972) Deferred tax asset after valuation allowance 2,046,927 1,131,555 Deferred tax liabilities: Depreciation (1,554,517) (1,374,276) Unrealized (gains) losses on available for sale and other investments (1) — (244,397) Regulatory authorizations and other intangible amortization (3,869,784) (3,400,772) Bases differences in partnerships and cost method investments (2) (1,179,888) (1,042,245) Total deferred tax liabilities (6,604,189) (6,061,690) Net deferred tax asset (liability) $ (4,557,262) $ (4,930,135) (1) Included in this line item are deferred taxes related to, among other things, changes in the probability weighted fair value of our option to purchase certain of T-Mobile’s 800 MHz spectrum licenses . See Note 5 for further information. (2) Included in this line item are deferred taxes related to, among other things, our noncontrolling investments in Northstar Spectrum and SNR HoldCo, including deferred taxes created by the tax amortization of the Northstar Licenses and SNR Licenses. See Note 2 for further information. |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | For the Years Ended December 31, Unrecognized tax benefit 2023 2022 2021 (In thousands) Balance as of beginning of period $ 431,640 $ 388,837 $ 378,467 Additions based on tax positions related to the current year 3,601 35,180 303 Additions based on tax positions related to prior years 9,292 14,723 12,095 Reductions based on tax positions related to prior years (7,219) (7,100) (1,400) Reductions based on tax positions related to settlements with taxing authorities (834) — — Reductions based on tax positions related to the lapse of the statute of limitations (352) — (628) Balance as of end of period $ 436,128 $ 431,640 $ 388,837 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans | |
Schedule of expense recognized related to the 401(k) Plan | For the Years Ended December 31, Expense Recognized Related to the 401(k) Plan 2023 2022 2021 (In thousands) Matching contributions, net of forfeitures $ 14,532 $ 12,800 $ 8,912 Discretionary stock contributions, net of forfeitures $ 70 $ 14,564 $ 26,383 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based compensation | |
Schedule of stock option activity | For the Year Ended December 31, 2023 Options Weighted- Average Exercise Price Aggregate intrinsic value Weighted- Average Remaining Contractual Life Total options outstanding, beginning of period 10,494,032 $ 74.66 Granted 790,526 $ 28.24 Exercised — $ — Forfeited and cancelled (1) (1,397,228) $ 78.85 Total options outstanding, end of period 9,887,330 $ 70.36 $ — 7.21 Performance/market based options outstanding, end of period (2) 4,631,083 $ 84.20 Exercisable at end of period 2,893,380 $ 65.85 $ — 6.85 (1) Includes the cancellation of the 2013 LTIP. See discussion below . (2) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2017 LTIP, 2019 LTIP, 2022 Incentive Plan, Ergen 2020 Performance Award and Other Employee Performance Awards below. |
Schedule of realized tax benefits from stock awards exercised | For the Years Ended December 31, 2023 2022 2021 (In thousands) Tax benefit from stock awards exercised $ 1,384 $ 573 $ 4,153 |
Schedule of restricted stock unit activity | For the Year Ended December 31, 2023 Restricted Stock Units/Awards Weighted- Average Grant Date Fair Value Total restricted stock units/awards outstanding, beginning of period 502,804 $ 101.03 Granted 5,776 $ 17.50 Vested (275,100) $ 93.32 Forfeited and cancelled (184,835) $ 110.50 Total restricted stock units/awards outstanding, end of period 48,645 $ 98.78 |
Schedule of non-cash, stock-based compensation expense recognized | For the Years Ended December 31, Non-Cash, Stock-Based Compensation Expense Recognized (1) 2023 2022 2021 (In thousands) 2022 Incentive Plan $ 7,346 $ 19,088 $ — 2019 LTIP (1,903) (97) 489 2013 LTIP — — (13,610) Ergen 2020 Performance Award 12,308 12,308 34,513 Other employee performance awards 462 4,502 9,033 Total non-cash, stock-based compensation expense recognized for performance based awards $ 18,213 $ 35,801 $ 30,425 (1) “Non-Cash, Stock-Based Compensation Expense Recognized” includes actual forfeitures. |
Schedule of awards outstanding pursuant to performance-based stock incentive plans | As of December 31, 2023 Performance Based Stock Options Number of Awards Weighted- Average Grant Price 2022 Incentive Plan 401,828 $ 50.78 2019 LTIP 248,758 $ 60.04 2017 LTIP 471,727 $ 164.20 Ergen 2020 Performance Award 3,508,770 $ 78.98 Total 4,631,083 $ 84.20 |
Schedule of allocated non-cash, stock-based compensation expense for all employees | For the Years Ended December 31, 2023 2022 2021 (In thousands) Cost of services $ 2,609 $ 6,511 $ 4,365 Selling, general and administrative 33,534 64,939 47,315 Total non-cash, stock-based compensation $ 36,143 $ 71,450 $ 51,680 |
Schedule of assumptions of Black-Scholes option valuation model | For the Years Ended December 31, Stock Options 2023 2022 2021 Risk-free interest rate 3.58 % - 4.61 % 1.35 % - 4.02 % 0.48 % - 1.11 % Volatility factor 34.30 % - 41.25 % 32.67 % - 34.84 % 29.91 % - 34.51 % Expected term of options in years 4.1 - 6.6 4.1 - 6.0 4.0 - 5.9 Fair value of options granted $ 7.40 - $ 7.77 $ 5.97 - $ 9.27 $ 6.20 - $ 8.32 |
Schedule of additional information about our stock options and restricted stock units and awards | For the Years Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) Stock options: Weighted-average grant date fair value of options granted $ 28.24 $ 63.90 $ 112.76 Intrinsic value of options exercised (1) $ — $ 98 $ 16,029 Restricted stock units and awards: Weighted-average grant date fair value of units and awards granted $ 17.50 $ 88.39 $ 120.86 Fair value of units and rewards vested (1) $ 5,612 $ 2,212 $ 980 (1) Intrinsic value and fair value is based on the closing market price of EchoStar’s Class A Common Stock on December 31, 2023. |
2022 Incentive Plan, 2019 LTIP, 2013 LTIP and Other | |
Share-based compensation | |
Schedule of unrecognized non-cash, stock-based compensation expense | Estimated Remaining Non-Cash, Stock-Based Compensation Expense 2022 Incentive Plan 2019 LTIP Ergen 2020 Performance Award Other Employee Performance Awards (In thousands) Expense estimated to be recognized during 2024 $ 2,119 $ — $ 10,816 $ — Estimated contingent expense subsequent to 2024 1,114 — 16,913 — Total estimated remaining expense over the term of the plan $ 3,233 $ — $ 27,729 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Schedule of future maturities of long-term debt, finance lease and contractual obligations | Payments due by period Total 2024 2025 2026 2027 2028 Thereafter (In thousands) Long-term debt obligations $ 21,163,274 $ 2,984,970 $ 1,985,772 $ 7,669,305 $ 3,511,107 $ 3,502,529 $ 1,509,591 Interest expense on long-term debt 4,490,593 1,237,046 1,106,622 1,105,276 707,126 294,971 39,552 Finance lease obligations (1) 123,658 56,459 30,381 34,290 2,528 — — Interest expense on finance lease obligations (1) 16,969 9,614 5,011 2,298 46 — — Other long-term obligations (2) 13,406,816 2,886,529 2,198,229 1,913,876 1,158,515 1,013,256 4,236,411 Operating lease obligations (1) 5,399,528 423,347 463,276 495,472 495,786 454,612 3,067,035 Purchase obligations 2,086,259 2,052,898 27,268 5,756 337 — — Total $ 46,687,097 $ 9,650,863 $ 5,816,559 $ 11,226,273 $ 5,875,445 $ 5,265,368 $ 8,852,589 (1) See Note 8 for further information on leases. (2) Represents minimum contractual commitments related to communication tower obligations, certain 5G Network Deployment commitments, obligations under the NSA with AT&T and the MNSA with T-Mobile, certain wireless device purchases and marketing obligations, radios, software and integration services and satellite related and other obligations. |
Summary of Wireless Spectrum Licenses | Carrying Build-Out Deadlines Expiration Amount Interim Final Date (In thousands) Owned: DBS Licenses (1) $ 677,409 700 MHz Licenses (2) 711,871 June 14, 2025 (3) June 2033 AWS-4 Licenses (2) 1,940,000 June 14, 2025 (3) June 2033 H Block Licenses (2) 1,671,506 June 14, 2025 (4) June 2033 600 MHz Licenses 6,213,335 June 14, 2025 (5) June 2029 MVDDS Licenses (1) 24,000 July 2024 LMDS Licenses (1) — September 2028 28 GHz Licenses 2,883 October 2, 2029 (6) October 2029 24 GHz Licenses 11,772 December 11, 2029 (6) December 2029 37 GHz, 39 GHz and 47 GHz Licenses 202,533 June 4, 2030 (6) June 2030 3550-3650 MHz Licenses 912,939 March 12, 2031 (6) March 2031 3.7-3.98 GHz Licenses 2,969 July 23, 2029 (6) July 23, 2033 (6) July 2036 3.45–3.55 GHz Licenses 7,327,989 May 4, 2026 (6) May 4, 2030 (6) May 2037 1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz (2) 972 March 2026 AWS-3 (8) 5,618,930 October 2025 (7) October 2025 (7) Subtotal 25,319,108 Noncontrolling Investments: SNR (9) 4,271,459 October 2025 (7) October 2025 (7) Capitalized Interest (10) 8,523,682 Total as of December 31, 2023 $ 38,114,249 (1) The build-out deadlines for these licenses have been met. (2) The interim build-out deadlines for these licenses are in the past. (3) In a July 14, 2023 filing to the FCC, we certified that we were offering 5G broadband service to at least 70% of the United States population as of June 14, 2023, and certified to meeting other FCC related commitments. As a result of us providing 5G broadband service to over 50% of the U.S. population by June 14, 2023, the final build-out deadlines have been extended automatically to June 14, 2025. For these licenses, we must offer 5G broadband service to at least 70% of the population in each Economic Area (which is a service area established by the FCC). On September 29, 2023, the FCC confirmed we have met all of our June 14, 2023 band-specific 5G deployment commitments, and two of our three nationwide 5G commitments. The single remaining 5G commitment, that at least 70% of the U.S. population has access to average download speeds equal to 35 Mbps, was confirmed using the drive test methodology agreed to and approved by the FCC and overseen by an independent monitor. (4) In a July 14, 2023 filing to the FCC, we certified that we were offering 5G broadband service to at least 70% of the United States population as of June 14, 2023, and certified to meeting other FCC related commitments. As a result of us providing 5G broadband service to over 50% of the U.S. population by June 14, 2023, the final build-out deadlines have been extended automatically to June 14, 2025. For these licenses, we must offer 5G broadband service to at least 75% of the population in each Economic Area (which is a service area established by the FCC). On September 29, 2023, the FCC confirmed we have met all of our June 14, 2023 band-specific 5G deployment commitments, and two of our three nationwide 5G commitments. The single remaining 5G commitment, that at least 70% of the U.S. population has access to average download speeds equal to 35 Mbps, was confirmed using the drive test methodology agreed to and approved by the FCC and overseen by an independent monitor. (5) For these licenses, we must offer 5G broadband service to at least 75% of the population in each Partial Economic Area (which is a service area established by the FCC) by this date. We have also acquired certain additional 600 MHz licenses through private transactions. These licenses are currently subject to their original FCC buildout deadlines. (6) There are a variety of build-out options and associated build-out metrics associated with these licenses. (7) For these licenses, we must provide reliable signal coverage and offer service to at least 75% of the population of each license area by this date. The AWS-3 interim build-out requirement was not met and as a result, the AWS-3 expiration date and the AWS-3 final build-out requirement have been accelerated by two years (from October 2027 to October 2025) for each AWS-3 License area for which we did not meet the requirement. (8) On October 12, 2023, the FCC consented to the sale of Northstar Manager’s ownership interests in Northstar Spectrum, which we purchased for a total of approximately $109 million. This purchase resulted in the elimination of all of our noncontrolling investment as it related to Northstar Spectrum as of the purchase date and we continue to consolidate the Northstar Entities as wholly-owned subsidiaries . (9) Subsequent to December 31, 2023, the FCC consented to the sale of SNR Wireless Management’s ownership interests in SNR HoldCo, which was purchased by our parent’s direct wholly-owned subsidiary EchoStar SNR HoldCo L.L.C. for a total of approximately $442 million on February 16, 2024. This purchase resulted in the conversion of our outstanding redeemable noncontrolling interest as it relates to SNR HoldCo to noncontrolling interest, which is now held by our parent, EchoStar, as of the purchase date. (10) See Note 2 for further information. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting | |
Schedule of revenue and operating income by segment | As of December 31, 2023 2022 (In thousands) Total assets: Pay-TV $ 49,437,958 $ 46,295,495 Retail Wireless 777,957 2,798,561 5G Network Deployment (1) 46,793,378 43,462,443 Eliminations (1) (45,596,262) (39,949,937) Total assets $ 51,413,031 $ 52,606,562 (1) The increase primarily resulted from intercompany advances for capital expenditures related to our 5G Network Deployment. |
Schedule of long-lived assets by segment | All 5G Network Other & Consolidated Pay-TV Retail Wireless Deployment Eliminations Total (In thousands) Year Ended December 31, 2023 Total revenue $ 11,571,159 $ 3,692,372 $ 91,928 $ (60,371) $ 15,295,088 Depreciation and amortization 381,292 221,968 620,685 (42,024) 1,181,921 Operating income (loss) 2,699,810 (643,184) (1,881,369) — 175,257 Interest income 2,604,599 27 3,041 (2,502,251) 105,416 Interest expense, net of amounts capitalized (1,290,099) (64,565) (1,186,468) 2,502,251 (38,881) Other, net 74,114 (1,793,387) (22,603) — (1,741,876) Income tax (provision) benefit, net (578,739) 201,091 749,310 — 371,662 Net income (loss) 3,509,685 (2,300,018) (2,338,089) — (1,128,422) Year Ended December 31, 2022 Total revenue $ 12,505,392 $ 4,135,129 $ 65,768 $ (26,882) $ 16,679,407 Depreciation and amortization 428,471 177,914 131,566 (20,878) 717,073 Operating income (loss) 2,933,898 (77,264) (810,968) — 2,045,666 Interest income 1,872,645 5 — (1,829,874) 42,776 Interest expense, net of amounts capitalized (1,036,829) (49,123) (766,703) 1,829,874 (22,781) Other, net 1,264 1,012,147 25,571 — 1,038,982 Income tax (provision) benefit, net (911,955) (219,720) 399,939 — (731,736) Net income (loss) 2,859,023 666,045 (1,152,161) — 2,372,907 Year Ended December 31, 2021 Total revenue $ 12,928,707 $ 4,897,205 $ 73,889 $ (18,695) $ 17,881,106 Depreciation and amortization 538,836 176,833 23,005 (13,822) 724,852 Operating income (loss) 3,075,579 343,785 (216,329) — 3,203,035 Interest income 1,346,502 6 — (1,335,170) 11,338 Interest expense, net of amounts capitalized (819,510) (1,309) (530,525) 1,335,170 (16,174) Other, net (2,917) 26,695 (3,221) — 20,557 Income tax (provision) benefit, net (853,362) (95,982) 186,534 — (762,810) Net income (loss) 2,746,292 273,195 (563,541) — 2,455,946 Retail 5G Network Pay-TV Wireless Deployment Total (In thousands) Year Ended December 31, 2023 Purchases of property and equipment (including capitalized interest related to regulatory authorizations) $ 242,736 $ — $ 3,748,624 $ 3,991,360 Year Ended December 31, 2022 Purchases of property and equipment (including capitalized interest related to regulatory authorizations) $ 131,093 $ — $ 3,580,518 $ 3,711,611 Year Ended December 31, 2021 Purchases of property and equipment (including capitalized interest related to regulatory authorizations) $ 173,485 $ — $ 1,790,042 $ 1,963,527 |
Revenue from external customers disaggregated by major revenue source | For the Years Ended December 31, Category: 2023 2022 2021 (In thousands) Pay-TV subscriber and related revenue $ 11,385,961 $ 12,360,601 $ 12,787,485 Retail wireless services and related revenue 3,337,240 3,653,909 4,142,883 Pay-TV equipment sales and other revenue 185,198 144,791 141,222 Retail wireless equipment sales and other revenue 355,132 481,220 754,322 5G network deployment equipment sales and other revenue 91,928 65,768 73,889 Eliminations (60,371) (26,882) (18,695) Total $ 15,295,088 $ 16,679,407 $ 17,881,106 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition | |
Summary of activity in the allowance for doubtful accounts | For the Years Ended December 31, 2023 2022 2021 (In thousands) Balance at beginning of period $ 44,431 $ 38,534 $ 72,278 Current period provision for expected credit losses 67,302 79,664 54,083 Write-offs charged against allowance (57,742) (73,845) (87,919) Acquisitions — 78 92 Balance at end of period $ 53,991 $ 44,431 $ 38,534 |
Schedule of deferred revenue related to contracts with subscribers | As of December 31, 2023 2022 (In thousands) Contract liabilities $ 586,867 $ 672,757 |
Schedule of the activity in our contract acquisition costs, net. | For the Years Ended December 31, 2023 2022 2021 (In thousands) Balance at beginning of period $ 381,401 $ 458,006 $ 456,255 Additions 278,077 346,577 393,109 Amortization expense (372,202) (423,182) (391,358) Balance at end of period $ 287,276 $ 381,401 $ 458,006 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Data (Unaudited) | |
Schedule of quarterly results of operations | For the Three Months Ended March 31 June 30 September 30 December 31 (In thousands) Year ended December 31, 2023: Total revenue $ 3,956,982 $ 3,911,577 $ 3,704,516 $ 3,722,013 Operating income (loss) 323,423 206,334 (41,806) (312,694) Net income (loss) 243,238 222,424 (116,839) (1,477,245) Net income (loss) attributable to DISH Network 222,705 200,323 (139,185) (1,496,066) Year ended December 31, 2022: Total revenue $ 4,330,620 $ 4,209,963 $ 4,095,451 $ 4,043,373 Operating income (loss) 550,360 692,935 427,029 375,342 Net income (loss) 448,846 540,007 429,585 954,469 Net income (loss) attributable to DISH Network 432,651 522,832 412,230 935,520 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NagraStar | |
Schedule of transactions with related party | For the Years Ended December 31, 2023 2022 2021 (In thousands) Purchases (including fees): Purchases from NagraStar $ 37,068 $ 43,416 $ 45,944 As of December 31, 2023 2022 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 9,821 $ 7,422 Commitments to NagraStar $ 1,727 $ 3,272 |
Organization and Business Act_2
Organization and Business Activities (Details) $ / shares in Units, person in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | 192 Months Ended | ||||||||
Feb. 16, 2024 USD ($) | Oct. 12, 2023 USD ($) | Sep. 29, 2023 item person | Jun. 14, 2023 person | Jun. 14, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2023 USD ($) person segment $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) person $ / shares | |
Spectrum Investments | |||||||||||
Number of primary operating business segments | segment | 3 | ||||||||||
Number of Pay-TV subscribers | person | 8,526 | 8,526 | |||||||||
Number Of wireless subscribers | person | 7,378 | 7,378 | |||||||||
Payment to customer | $ 30,000,000 | ||||||||||
Regulatory authorizations, net | $ 38,114,249 | $ 36,933,073 | 38,114,249 | ||||||||
Total debt and equity investments in subsidiaries | $ 10,000,000 | $ 10,000,000 | |||||||||
Number of nationwide 5G commitments that are met | item | 2 | ||||||||||
Number of nationwide 5G commitments | item | 3 | ||||||||||
Percentage of population for deploy 5G services | 73% | ||||||||||
Minimum percentage of population having access to average download speed | 70% | ||||||||||
Number of Americans nationwide for deployment of 5G services | person | 200,000 | 246,000 | |||||||||
Purchase of ownership interests | $ 109,000 | ||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0 | ||||||||
Cash and cash equivalents and marketable investment securities | $ 382,000 | $ 382,000 | |||||||||
Number of American subscribers for 5G broadband service | person | 250,000 | ||||||||||
Cost of services | $ 8,989,961 | $ 9,558,484 | $ 10,185,906 | ||||||||
Percentage of Population to Whom 5G Broadband Service is Provided | 50% | ||||||||||
2 3/8% Convertible Notes due 2024 | |||||||||||
Spectrum Investments | |||||||||||
Total debts | 951,000 | 951,000 | |||||||||
5 7/8% Senior Notes due 2024 | |||||||||||
Spectrum Investments | |||||||||||
Total debts | 1,983,000 | 1,983,000 | |||||||||
Cyber Security | |||||||||||
Spectrum Investments | |||||||||||
Cost of services | 30,000 | ||||||||||
MHz 700 Licenses and AWS-4 Licenses | |||||||||||
Spectrum Investments | |||||||||||
Percentage of population for deploy 5G services in each Economic Area | 70% | ||||||||||
Percentage of Population to Whom 5G Broadband Service is Provided | 50% | ||||||||||
H Block Licenses | |||||||||||
Spectrum Investments | |||||||||||
Percentage of population for deploy 5G services in each Economic Area | 75% | ||||||||||
Capitalized interest on FCC authorizations | |||||||||||
Spectrum Investments | |||||||||||
Regulatory authorizations, net | $ 8,523,682 | $ 7,344,515 | $ 8,523,682 | ||||||||
Class A common stock | |||||||||||
Spectrum Investments | |||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||
Class B common stock | |||||||||||
Spectrum Investments | |||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.01 | ||||||||||
Minimum | |||||||||||
Spectrum Investments | |||||||||||
Percentage of population for deploy 5G services | 70% | ||||||||||
Minimum | MHz 700 Licenses and AWS-4 Licenses | |||||||||||
Spectrum Investments | |||||||||||
Minimum percentage of population having access to average download speed | 70% | ||||||||||
Sling TV Holding L.L.C. | |||||||||||
Spectrum Investments | |||||||||||
Number of Pay-TV subscribers | person | 2,055 | 2,055 | |||||||||
Amended Merger Agreement | |||||||||||
Spectrum Investments | |||||||||||
Share exchange ratio | 0.350877 | ||||||||||
Amended Merger Agreement | Class A common stock | |||||||||||
Spectrum Investments | |||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||||
Amended Merger Agreement | Class B common stock | |||||||||||
Spectrum Investments | |||||||||||
Common stock par value (in dollars per share) | $ / shares | 0.01 | 0.01 | |||||||||
Amended Merger Agreement | Class C common stock | |||||||||||
Spectrum Investments | |||||||||||
Common stock par value (in dollars per share) | $ / shares | 0.01 | 0.01 | |||||||||
Amended Merger Agreement | EchoStar | Class A common stock | |||||||||||
Spectrum Investments | |||||||||||
Common stock par value (in dollars per share) | $ / shares | 0.001 | 0.001 | |||||||||
Amended Merger Agreement | EchoStar | Class B common stock | |||||||||||
Spectrum Investments | |||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Northstar Spectrum | |||||||||||
Spectrum Investments | |||||||||||
Purchase of ownership interests | $ 109,000 | ||||||||||
SNR HoldCo | |||||||||||
Spectrum Investments | |||||||||||
Cash and cash equivalents and marketable investment securities | $ 438,000 | $ 438,000 | |||||||||
SNR HoldCo | Subsequent event | |||||||||||
Spectrum Investments | |||||||||||
Purchase of ownership interests | $ 442,000 | ||||||||||
SNR HoldCo | EchoStar SNR HoldCo LLC | Subsequent event | |||||||||||
Spectrum Investments | |||||||||||
Purchase of ownership interests | $ 442,000 | ||||||||||
Northstar Spectrum And SNR Holdco | |||||||||||
Spectrum Investments | |||||||||||
Total debt and equity investments in subsidiaries | $ 10,000,000 | $ 10,000,000 | |||||||||
Dish TV | |||||||||||
Spectrum Investments | |||||||||||
Number of Pay-TV subscribers | person | 6,471 | 6,471 | |||||||||
Wireless | |||||||||||
Spectrum Investments | |||||||||||
Payment to customer | $ 30,000,000 | ||||||||||
Regulatory authorizations, net | $ 25,319,108 | $ 25,317,099 | $ 25,319,108 | ||||||||
Percentage of population for deploy 5G services | 20% | 70% | 20% | ||||||||
Wireless | At least 50% by June 2023 | |||||||||||
Spectrum Investments | |||||||||||
Percentage of population for deploy 5G services | 50% | 50% | |||||||||
Wireless | Upto 70% by June 2023 | |||||||||||
Spectrum Investments | |||||||||||
Percentage of population for deploy 5G services | 70% | ||||||||||
Wireless | Maximum | |||||||||||
Spectrum Investments | |||||||||||
Percentage of population for deploy 5G services | 70% | 70% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Feb. 16, 2024 | Oct. 12, 2023 | Dec. 30, 2020 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Redeemable Noncontrolling Interest | |||||||||||||||
Purchase of ownership interests | $ 109,000 | ||||||||||||||
Non-cash impairment charge | $ 225,017 | $ 0 | $ 225,017 | $ 0 | $ 0 | ||||||||||
Long-Term Deferred Revenue, Distribution and Carriage Payments | |||||||||||||||
Deferred upfront payment, amortization period | 10 years | ||||||||||||||
Transfers between levels | $ 0 | 0 | |||||||||||||
Convertible Long-Term Debt | |||||||||||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | $ 1,051,000 | ||||||||||||||
Deferred taxes | 4,557,262 | 4,930,135 | $ 4,557,262 | 4,930,135 | |||||||||||
Revenue Recognition | |||||||||||||||
Contract duration of prepaid customers | 1 month | ||||||||||||||
Contract duration of postpaid customers | 1 month | ||||||||||||||
Period over which devices in installments can be pay by postpaid customers | 36 months | ||||||||||||||
Revenue recorded | 3,722,013 | $ 3,704,516 | $ 3,911,577 | $ 3,956,982 | 4,043,373 | $ 4,095,451 | $ 4,209,963 | $ 4,330,620 | $ 15,295,088 | 16,679,407 | 17,881,106 | ||||
Revenue, Practical Expedient, Financing Component [true false] | true | ||||||||||||||
Advertising Costs | |||||||||||||||
Advertising expenses | $ 698,000 | 633,000 | 535,000 | ||||||||||||
Research and Development | |||||||||||||||
Research and development cost | 42,000 | 45,000 | 29,000 | ||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||
Impairment of long-lived assets | 225,017 | ||||||||||||||
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||||||||||||||
Trade accounts receivable, net | 890,333 | 953,812 | 890,333 | 953,812 | |||||||||||
Allowance for credit losses | $ 53,991 | 44,431 | $ 53,991 | 44,431 | |||||||||||
ASU 2020-06 | |||||||||||||||
Convertible Long-Term Debt | |||||||||||||||
Convertible debt reclassified per ASU 2020-06 | 1,051,000 | 1,051,344 | |||||||||||||
Adjustments to Additional Paid in Capital, Equity Component of Convertible Debt | 246,000 | ||||||||||||||
Deferred taxes | $ 246,000 | $ 245,778 | |||||||||||||
Class B common stock | Northstar Manager LLC | |||||||||||||||
Variable Interest Entity | |||||||||||||||
Equity Method Investment, Ownership Percentage | 3% | ||||||||||||||
Minimum | |||||||||||||||
Redeemable Noncontrolling Interest | |||||||||||||||
Estimated useful life | 2 years | 2 years | |||||||||||||
Business Combinations | |||||||||||||||
Acquired intangible assets, average finite useful life | 1 year | ||||||||||||||
Leases | |||||||||||||||
Additional renewal option terms | 1 year | 1 year | |||||||||||||
Maximum | |||||||||||||||
Redeemable Noncontrolling Interest | |||||||||||||||
Estimated useful life | 40 years | 40 years | |||||||||||||
Business Combinations | |||||||||||||||
Acquired intangible assets, average finite useful life | 20 years | ||||||||||||||
Leases | |||||||||||||||
Additional renewal option terms | 13 years | 13 years | |||||||||||||
Northstar Spectrum | |||||||||||||||
Redeemable Noncontrolling Interest | |||||||||||||||
Value of ownership interest accrued | 96,000 | 96,000 | |||||||||||||
Value of ownership interest accrued | 96,000 | 96,000 | |||||||||||||
SNR HoldCo | |||||||||||||||
Redeemable Noncontrolling Interest | |||||||||||||||
Value of ownership interest accrued | $ 438,000 | 368,000 | $ 438,000 | 368,000 | |||||||||||
Value of ownership interest accrued | $ 438,000 | $ 368,000 | $ 438,000 | $ 368,000 | |||||||||||
Northstar Manager LLC | Class B common stock | |||||||||||||||
Variable Interest Entity | |||||||||||||||
Ownership percentage | 97% | ||||||||||||||
Payment For Purchase Agreement | $ 312,000 | ||||||||||||||
Northstar Spectrum | |||||||||||||||
Redeemable Noncontrolling Interest | |||||||||||||||
Value of ownership interest accrued | 109,000 | ||||||||||||||
Purchase of ownership interests | 109,000 | ||||||||||||||
Value of ownership interest accrued | $ 109,000 | ||||||||||||||
SNR HoldCo | Subsequent event | |||||||||||||||
Redeemable Noncontrolling Interest | |||||||||||||||
Purchase of ownership interests | $ 442,000 | ||||||||||||||
SNR HoldCo | EchoStar SNR HoldCo LLC | Subsequent event | |||||||||||||||
Redeemable Noncontrolling Interest | |||||||||||||||
Purchase of ownership interests | $ 442,000 | ||||||||||||||
BoostUP | |||||||||||||||
Redeemable Noncontrolling Interest | |||||||||||||||
Installment plan period for long term customers | 36 months |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Changes in goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | $ 225,017 | $ 225,017 | |
Impairment of goodwill | (225,000) | (225,017) | |
Goodwill, Ending Balance | 225,017 | ||
Accumulated impairment losses | (225,017) | 0 | $ 0 |
Pay-TV | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 6,457 | 6,457 | |
Impairment of goodwill | (6,457) | ||
Goodwill, Ending Balance | 6,457 | ||
Accumulated impairment losses | (6,457) | ||
Retail Wireless | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 98,657 | 98,657 | |
Impairment of goodwill | (98,657) | ||
Goodwill, Ending Balance | 98,657 | ||
Accumulated impairment losses | (98,657) | ||
5G Network Deployment | |||
Goodwill [Roll Forward] | |||
Goodwill, Beginning Balance | 119,903 | 119,903 | |
Impairment of goodwill | (119,903) | ||
Goodwill, Ending Balance | $ 119,903 | ||
Accumulated impairment losses | $ (119,903) |
Supplemental Data - Statement_3
Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Data - Statements of Cash Flows | ||||
Cash paid for interest (including capitalized interest) | $ 1,301,783 | $ 1,044,276 | $ 781,874 | |
Cash received for interest | 18,542 | 8,145 | 5,455 | |
Cash paid for income taxes, net of (refunds) | (8,138) | 57,278 | 72,476 | |
Capitalized interest | 1,291,290 | 1,040,971 | 821,455 | |
Employee benefits paid in Class A common stock | 14,680 | 26,348 | 30,321 | |
Vendor financing | 87,343 | 108,048 | 26,627 | |
FCC licenses reclassification | 122,657 | 915,449 | ||
Accrued capital expenditures | 219,200 | 397,137 | 449,093 | |
Asset retirement obligation | $ 74,189 | 124,822 | 50,765 | |
Asset retirement obligation | 122,390 | |||
Revaluation of contingent liabilities | $ 47,916 | |||
ASU 2020-06 | ||||
Supplemental Data - Statements of Cash Flows | ||||
Convertible debt reclassified per ASU 2020-06 | $ 1,051,000 | 1,051,344 | ||
Deferred taxes reclassified per ASU 2020-06 | $ 245,778 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other comprehensive income (loss), before tax amount | |||
Other comprehensive income (loss), before tax amount | $ 393 | $ (3,976) | $ 1,566 |
Other comprehensive income (loss), tax (expense) benefit | |||
Other comprehensive income (loss), tax (expense) benefit | (40) | 666 | (430) |
Other comprehensive income (loss): | |||
Total other comprehensive income (loss), net of tax | 353 | (3,310) | 1,136 |
Foreign Currency Translation Adjustment | |||
Other comprehensive income (loss), before tax amount | |||
Other comprehensive income (loss), before reclassifications, before tax | 356 | (4,160) | 1,787 |
Other comprehensive income (loss), tax (expense) benefit | |||
Other comprehensive income (loss), before reclassifications, tax (expense) benefit | (31) | 710 | (482) |
Other comprehensive income (loss): | |||
Other comprehensive income (loss), before reclassifications, net of tax | 325 | (3,450) | 1,305 |
Unrealized/Recognized Gains (Losses) | |||
Other comprehensive income (loss), before tax amount | |||
Other comprehensive income (loss), before reclassifications, before tax | (267) | 191 | (208) |
Amounts reclassified from accumulated other comprehensive income (loss), before tax | 304 | (7) | (13) |
Other comprehensive income (loss), tax (expense) benefit | |||
Other comprehensive income (loss), before reclassifications, tax (expense) benefit | 65 | (46) | 49 |
Amounts reclassified from accumulated other comprehensive income (loss), tax (expense) benefit | (74) | 2 | 3 |
Other comprehensive income (loss): | |||
Other comprehensive income (loss), before reclassifications, net of tax | 202 | (145) | (159) |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | $ 230 | $ (5) | $ (10) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated other comprehensive income (loss), balance at beginning of period, net | $ (3,029) | $ 281 |
Foreign currency translation adjustments | 325 | (3,450) |
Other comprehensive income (loss) before reclassification | (202) | 145 |
Amounts reclassified from accumulated other comprehensive income (loss) | 230 | (5) |
Accumulated other comprehensive income (loss), balance at end of period, net | (2,676) | (3,029) |
Foreign Currency Translation Adjustment | ||
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated other comprehensive income (loss), balance at beginning of period, net | (3,004) | 446 |
Foreign currency translation adjustments | 325 | (3,450) |
Accumulated other comprehensive income (loss), balance at end of period, net | (2,679) | (3,004) |
Unrealized/Recognized Gains (Losses) | ||
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated other comprehensive income (loss), balance at beginning of period, net | (25) | (165) |
Other comprehensive income (loss) before reclassification | (202) | 145 |
Amounts reclassified from accumulated other comprehensive income (loss) | 230 | (5) |
Accumulated other comprehensive income (loss), balance at end of period, net | $ 3 | $ (25) |
Marketable Investment Securit_3
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | $ 8,122 | $ 835,983 |
Total marketable investment securities | 27,894 | 877,672 |
Restricted cash and cash equivalents | 89,107 | 62,925 |
Equity method investments | 126,179 | 129,655 |
Cost method investments | 3,448 | 750 |
Contractual maturities extending longer than one year through and including five years | 39,198 | 37,795 |
Total other investment securities | 168,825 | 168,200 |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | 285,826 | 1,108,797 |
Current marketable investment securities - strategic - available-for-sale | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | 144 | 144 |
Current marketable investment securities - strategic - trading/equity | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | 7,799 | 655 |
Other investment securities | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total current marketable investment securities | 179 | 835,184 |
Restricted marketable investment securities | ||
Marketable investment securities, restricted cash and other investment securities | ||
Total marketable investment securities | $ 19,772 | $ 41,689 |
Marketable Investment Securit_4
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) item | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 25, 2023 USD ($) | Oct. 15, 2023 USD ($) | Feb. 28, 2017 | |
Other investment securities: | |||||||
Loss on derivative | $ (1,793,387) | $ 1,015,387 | $ (13,000) | ||||
NagraStar | |||||||
Other investment securities: | |||||||
Ownership interest (as a percent) | 50% | ||||||
Number of technologies provided to customers | item | 3 | 3 | |||||
Invidi Technologies Corporation | |||||||
Other investment securities: | |||||||
Ownership interest (as a percent) | 35% | 35% | |||||
TerreStar Solutions, Inc | |||||||
Other investment securities: | |||||||
Ownership interest (as a percent) | 40% | 40% | |||||
Commercial paper | Maximum | |||||||
Other investment securities: | |||||||
Debt term of Maturity | 365 days | ||||||
Corporate securities | Maximum | |||||||
Other investment securities: | |||||||
Debt term of Maturity | 18 months | ||||||
The Amendment | |||||||
Other investment securities: | |||||||
Upfront payment | $ 100,000 | $ 100,000 | |||||
Loss on derivative | $ (1,601,000) | $ (1,793,000) |
Marketable Investment Securit_5
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Investments Measured at Fair Value On A Recurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Jul. 01, 2020 | |
Fair value of marketable securities | |||
Debt securities | $ 20,000 | ||
Contractual maturities extending longer than one year through and including five years | $ 39,198 | $ 37,795 | |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | |
Derivative Asset, Noncurrent | $ 0 | $ 1,693,000 | |
Fair value measurements on recurring basis | |||
Fair value of marketable securities | |||
Cash Equivalents (including restricted) | 347,976 | 1,620,458 | |
Total | 27,894 | 877,672 | |
Fair value measurements on recurring basis | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Total | 7,567 | 22,824 | |
Fair value measurements on recurring basis | Commercial paper | |||
Fair value of marketable securities | |||
Total | 7,500 | 696,324 | |
Fair value measurements on recurring basis | Corporate securities | |||
Fair value of marketable securities | |||
Total | 4,705 | 156,380 | |
Fair value measurements on recurring basis | Other (including restricted) | |||
Fair value of marketable securities | |||
Total | 323 | 1,489 | |
Fair value measurements on recurring basis | Equity securities | |||
Fair value of marketable securities | |||
Equity securities | 7,799 | 655 | |
Fair value measurements on recurring basis | Level 1 | |||
Fair value of marketable securities | |||
Cash Equivalents (including restricted) | 304,410 | 174,050 | |
Total | 15,366 | 23,479 | |
Fair value measurements on recurring basis | Level 1 | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Total | 7,567 | 22,824 | |
Fair value measurements on recurring basis | Level 1 | Equity securities | |||
Fair value of marketable securities | |||
Equity securities | 7,799 | 655 | |
Fair value measurements on recurring basis | Level 2 | |||
Fair value of marketable securities | |||
Cash Equivalents (including restricted) | 43,566 | 1,446,408 | |
Total | 12,384 | 854,049 | |
Fair value measurements on recurring basis | Level 2 | Commercial paper | |||
Fair value of marketable securities | |||
Total | 7,500 | 696,324 | |
Fair value measurements on recurring basis | Level 2 | Corporate securities | |||
Fair value of marketable securities | |||
Total | 4,705 | 156,380 | |
Fair value measurements on recurring basis | Level 2 | Other (including restricted) | |||
Fair value of marketable securities | |||
Total | 179 | 1,345 | |
Fair value measurements on recurring basis | Level 3 | |||
Fair value of marketable securities | |||
Total | 144 | 144 | |
Fair value measurements on recurring basis | Level 3 | Other (including restricted) | |||
Fair value of marketable securities | |||
Total | $ 144 | $ 144 | |
Boost Mobile Acquisition | |||
Fair value of marketable securities | |||
Spectrum purchase option fair value | $ 713,000 | ||
Spectrum Purchase Agreement | |||
Fair value of marketable securities | |||
Asset Purchase Agreement, Deadline to Divest Licenses, Extension Period | 60 days |
Marketable Investment Securit_6
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Other Income Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income (Expense) | |||
Marketable and non-marketable investment securities - realized and unrealized gains (losses) | $ 4,085 | $ 26,186 | $ (3,137) |
Derivative instruments - net realized and/or unrealized gains (losses) | (1,793,387) | 1,015,387 | (13,000) |
Gains (losses) related to early redemption of debt | 73,024 | (922) | (3,587) |
Equity in earnings (losses) of affiliates | (3,835) | 2,616 | (1,051) |
Other | (21,763) | (4,285) | 41,332 |
Total | $ (1,741,876) | $ 1,038,982 | $ 20,557 |
Interest rate (as a percent) | 0.25% | ||
5 7/8% Senior Notes due 2024 | |||
Other Income (Expense) | |||
Interest rate (as a percent) | 5.875% |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory | ||
Finished goods | $ 407,620 | $ 447,322 |
Work-in-process and service repairs | 35,464 | 19,351 |
Consignment (1) | 47,723 | 14,792 |
Raw materials | 6,251 | 20,908 |
Total inventory | $ 497,058 | $ 502,373 |
Property and Equipment and In_3
Property and Equipment and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property and equipment | ||
Total property and equipment | $ 12,729,331 | $ 10,290,544 |
Accumulated depreciation | (5,327,384) | (4,650,425) |
Property and equipment, net | $ 7,401,947 | 5,640,119 |
Minimum | ||
Property and equipment | ||
Depreciable Life | 2 years | |
Maximum | ||
Property and equipment | ||
Depreciable Life | 40 years | |
Equipment leased to customers | ||
Property and equipment | ||
Total property and equipment | $ 1,181,193 | 1,318,272 |
Equipment leased to customers | Minimum | ||
Property and equipment | ||
Depreciable Life | 2 years | |
Equipment leased to customers | Maximum | ||
Property and equipment | ||
Depreciable Life | 5 years | |
Satellites | ||
Property and equipment | ||
Total property and equipment | $ 1,718,865 | 1,718,865 |
Satellites | Minimum | ||
Property and equipment | ||
Depreciable Life | 6 years | |
Satellites | Maximum | ||
Property and equipment | ||
Depreciable Life | 15 years | |
Satellites acquired under finance lease agreements | ||
Property and equipment | ||
Total property and equipment | $ 344,447 | 344,447 |
Satellites acquired under finance lease agreements | Maximum | ||
Property and equipment | ||
Depreciable Life | 15 years | |
Furniture, fixtures, equipment and other | ||
Property and equipment | ||
Total property and equipment | $ 908,924 | 903,190 |
Furniture, fixtures, equipment and other | Minimum | ||
Property and equipment | ||
Depreciable Life | 2 years | |
Furniture, fixtures, equipment and other | Maximum | ||
Property and equipment | ||
Depreciable Life | 20 years | |
5G Network Deployment equipment | ||
Property and equipment | ||
Total property and equipment | $ 4,263,327 | 770,153 |
5G Network Deployment equipment | Minimum | ||
Property and equipment | ||
Depreciable Life | 3 years | |
5G Network Deployment equipment | Maximum | ||
Property and equipment | ||
Depreciable Life | 15 years | |
Software | Minimum | ||
Property and equipment | ||
Depreciable Life | 2 years | |
Software | Maximum | ||
Property and equipment | ||
Depreciable Life | 6 years | |
Software and computer equipment | ||
Property and equipment | ||
Total property and equipment | $ 2,111,305 | 1,666,962 |
Buildings and improvements | ||
Property and equipment | ||
Total property and equipment | $ 381,757 | 380,519 |
Buildings and improvements | Minimum | ||
Property and equipment | ||
Depreciable Life | 5 years | |
Buildings and improvements | Maximum | ||
Property and equipment | ||
Depreciable Life | 40 years | |
Land | ||
Property and equipment | ||
Total property and equipment | $ 17,513 | 17,513 |
Construction in progress | ||
Property and equipment | ||
Total property and equipment | 1,802,000 | 3,170,623 |
Construction in progress | Pay-TV. | ||
Property and equipment | ||
Total property and equipment | 162,055 | 36,936 |
Construction in progress | 5G Network Deployment | ||
Property and equipment | ||
Total property and equipment | $ 1,639,945 | $ 3,133,687 |
Property and Equipment and In_4
Property and Equipment and Intangible Assets - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation and amortization expense | |||
Depreciation and amortization | $ 1,181,921 | $ 717,073 | $ 724,852 |
Equipment leased to customers | |||
Depreciation and amortization expense | |||
Depreciation and amortization | 166,950 | 191,746 | 244,755 |
Satellites | |||
Depreciation and amortization expense | |||
Depreciation and amortization | 134,948 | 148,051 | 189,126 |
Buildings, furniture, fixtures, equipment and other | |||
Depreciation and amortization expense | |||
Depreciation and amortization | 91,942 | 40,703 | 25,279 |
5G Network Deployment equipment | |||
Depreciation and amortization expense | |||
Depreciation and amortization | 371,640 | 29,992 | 8,263 |
Software and computer equipment | |||
Depreciation and amortization expense | |||
Depreciation and amortization | 235,820 | 153,040 | 93,119 |
Intangible assets and others | |||
Depreciation and amortization expense | |||
Depreciation and amortization | $ 180,621 | $ 153,541 | $ 164,310 |
Property and Equipment and In_5
Property and Equipment and Intangible Assets - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2023 item | |
Property and equipment | |
Number of other satellites to be relocated in the event of failure or loss of any satellite | 1 |
Pay-TV. | |
Property and equipment | |
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 9 |
Owned satellites | 7 |
Number of satellites leased | 2 |
Property and Equipment and In_6
Property and Equipment and Intangible Assets - Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance at beginning of period | $ 183,135 | $ 51,551 | |
Liabilities incurred | 74,189 | 124,822 | $ 50,765 |
Accretion expense | 20,963 | 6,762 | |
Balance at end of period | 278,287 | 183,135 | $ 51,551 |
Asset retirement obligations, net | $ 217,000 | $ 162,000 |
Property and Equipment and In_7
Property and Equipment and Intangible Assets - Intangible Assets and Estimated Future Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets | |||
Intangible Assets | $ 868,998 | $ 868,777 | |
Accumulated Amortization | (709,508) | (528,886) | |
Amortization expense | 181,000 | 154,000 | $ 164,000 |
Goodwill | 225,017 | $ 225,017 | |
Estimated future amortization of identifiable intangible assets | |||
2024 | 95,641 | ||
2025 | 13,534 | ||
2026 | 11,838 | ||
2027 | 11,355 | ||
2028 | 10,872 | ||
Thereafter | 16,029 | ||
Total | $ 159,269 | ||
Minimum | |||
Intangible Assets | |||
Useful life | 2 years | ||
Maximum | |||
Intangible Assets | |||
Useful life | 20 years | ||
Technology-based | |||
Intangible Assets | |||
Intangible Assets | $ 63,766 | 63,545 | |
Accumulated Amortization | (60,590) | (60,022) | |
Trademarks | |||
Intangible Assets | |||
Intangible Assets | 135,134 | 135,134 | |
Accumulated Amortization | (71,640) | (61,007) | |
Contract-based | |||
Intangible Assets | |||
Intangible Assets | 41,500 | 41,500 | |
Accumulated Amortization | (41,500) | (41,500) | |
Customer relationships | |||
Intangible Assets | |||
Intangible Assets | 628,598 | 628,598 | |
Accumulated Amortization | $ (535,778) | $ (366,357) |
Property and Equipment and In_8
Property and Equipment and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | |||
Impairment charge for goodwill | $ 225,000 | $ 225,017 | |
Goodwill | 225,017 | $ 225,017 | |
Pay-TV | |||
Goodwill [Line Items] | |||
Impairment charge for goodwill | 6,457 | ||
Goodwill | 6,457 | 6,457 | |
Retail Wireless | |||
Goodwill [Line Items] | |||
Impairment charge for goodwill | 98,657 | ||
Goodwill | 98,657 | $ 98,657 | |
5 G Network Deployment | |||
Goodwill [Line Items] | |||
Goodwill | $ 119,903 |
Property and Equipment and In_9
Property and Equipment and Intangible Assets - Regulatory Authorizations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | $ 38,114,249 | $ 36,933,073 |
Wireless | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 25,319,108 | 25,317,099 |
DBS Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 677,409 | 677,409 |
700 MHz Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 711,871 | 711,871 |
AWS-4 Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 1,940,000 | 1,940,000 |
H Block Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 1,671,506 | 1,671,506 |
600 MHz Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 6,213,335 | 6,212,579 |
MVDDS | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 24,000 | 24,000 |
28 GHz Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 2,883 | 2,883 |
24 GHz Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 11,772 | 11,772 |
37 Ghz, 39 Ghz and 47 Ghz Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 202,533 | 202,533 |
3550-3650 MHz Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 912,939 | 912,939 |
3.7-3.98 GHz Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 2,969 | 2,688 |
3.45-3.55 GHz Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 7,327,989 | 7,327,989 |
1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 972 | |
AWS-3 Licenses | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 5,618,930 | 5,618,930 |
AWS-3 Licenses | SNR Wireless or SNR Wireless Holdco | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | 4,271,459 | 4,271,459 |
Capitalized interest on FCC authorizations | ||
Indefinite-lived intangible assets | ||
Regulatory authorizations, net | $ 8,523,682 | $ 7,344,515 |
Leases (Details)
Leases (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 USD ($) | Dec. 31, 2023 | |
Option to extend - Operating | true | |
Option to extend - Finance | true | |
Option to terminate - Operating | true | |
Option to terminate - Finance | true | |
Increase (Decrease) in Operating Lease Liability | $ 227 | |
Minimum | ||
Option to extend period - Operating | 1 year | 1 year |
Option to extend period - Finance | 1 year | 1 year |
Maximum | ||
Option to extend period - Operating | 13 years | 13 years |
Option to extend period - Finance | 15 years | 15 years |
Option to terminate period - Operating | 1 year | |
Option to terminate period - Finance | 1 year |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Operating lease cost | $ 516,920 | $ 332,385 | $ 89,565 |
Short-term lease cost | 10,521 | 13,328 | 12,956 |
Finance lease cost: Amortization of right-of-use assets | 66,966 | 28,037 | 65,967 |
Finance lease cost: Interest on lease liabilities | 14,090 | 12,145 | 14,693 |
Total finance lease cost | 81,056 | 40,182 | 80,660 |
Total lease costs | $ 608,497 | $ 385,895 | $ 183,181 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Operating cash flows from operating leases | $ 346,091 | $ 163,320 | $ 72,479 |
Operating cash flows from finance leases | 13,400 | 11,053 | 12,868 |
Financing cash flows from finance leases | 53,467 | 42,617 | 62,679 |
Right-of-use assets obtained in exchange for lease obligations: Operating leases | 741,017 | 1,398,050 | $ 1,467,983 |
Right-of-use assets obtained in exchange for lease obligations: Finance leases | $ 53,771 | $ 66,312 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | ||
Operating lease assets | $ 2,934,862 | $ 2,687,522 |
Other current liabilities | $ 301,172 | $ 194,030 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Operating lease liabilities | $ 2,992,863 | $ 2,687,883 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Operating lease liabilities | Operating lease liabilities |
Total | $ 3,294,035 | $ 2,881,913 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable, Current, Operating lease liabilities | Accounts Payable, Current, Operating lease liabilities |
Property and equipment, gross | $ 12,729,331 | $ 10,290,544 |
Accumulated depreciation | (5,327,384) | (4,650,425) |
Property and equipment, net | 7,401,947 | 5,640,119 |
Other current liabilities | $ 56,459 | $ 48,066 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Capital Lease Obligations, Current | Long-term Debt and Capital Lease Obligations, Current |
Other long-term liabilities | $ 67,199 | $ 75,287 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long Term Debt And Finance Lease Obligations Net Of Current Portion | Long Term Debt And Finance Lease Obligations Net Of Current Portion |
Total | $ 123,658 | $ 123,353 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Capital Lease Obligations, Current, Long Term Debt And Finance Lease Obligations Net Of Current Portion | Long-term Debt and Capital Lease Obligations, Current, Long Term Debt And Finance Lease Obligations Net Of Current Portion |
Operating Lease, Weighted Average Remaining Lease Term | 10 years 8 months 12 days | 11 years 9 months 18 days |
Finance Lease, Weighted Average Remaining Lease Term | 2 years 2 months 12 days | 2 years 8 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 9.50% | 7.30% |
Finance Lease, Weighted Average Discount Rate, Percent | 9.70% | 9.80% |
Property and equipment | ||
Leases | ||
Property and equipment, gross | $ 465,549 | $ 411,778 |
Accumulated depreciation | (370,768) | (303,802) |
Property and equipment, net | $ 94,781 | $ 107,976 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Maturities of lease liabilities: Operating lease | ||
2024 | $ 423,347 | |
2025 | 463,276 | |
2026 | 495,472 | |
2027 | 495,786 | |
2028 | 454,612 | |
Thereafter | 3,067,035 | |
Total lease payments | 5,399,528 | |
Less: Imputed interest | (2,105,493) | |
Total | 3,294,035 | $ 2,881,913 |
Less: Current portion | (301,172) | (194,030) |
Long-term portion of lease obligations | 2,992,863 | 2,687,883 |
Maturities of lease liabilities: Finance lease | ||
2024 | 66,073 | |
2025 | 35,392 | |
2026 | 36,588 | |
2027 | 2,574 | |
Total lease payments | 140,627 | |
Less: Imputed interest | (16,969) | |
Total | 123,658 | 123,353 |
Less: Current portion | (56,459) | (48,066) |
Long-term portion of lease obligations | 67,199 | $ 75,287 |
Future minimum payments for total lease liabilities | ||
2024 | 489,420 | |
2025 | 498,668 | |
2026 | 532,060 | |
2027 | 498,360 | |
2028 | 454,612 | |
Thereafter | 3,067,035 | |
Total lease payments | 5,540,155 | |
Less: Imputed interest | (2,122,462) | |
Total | 3,417,693 | |
Less: Current portion | (357,631) | |
Long-term portion of lease obligations | $ 3,060,062 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||||
Dec. 31, 2023 | Jan. 26, 2023 | Dec. 31, 2022 | Nov. 15, 2022 | May 24, 2021 | Dec. 21, 2020 | Jul. 01, 2020 | Mar. 17, 2017 | Aug. 08, 2016 | Jun. 13, 2016 | Nov. 20, 2014 | |
Debt Instrument | |||||||||||
Carrying Value | $ 21,163,274 | $ 21,331,482 | |||||||||
Fair Value | 16,539,765 | 17,266,700 | |||||||||
Unamortized deferred financing costs and other debt discounts, net | (67,215) | (105,697) | |||||||||
Finance lease obligations | 123,658 | 123,353 | |||||||||
Total long-term debt and finance lease obligations (including current portion) | $ 21,219,717 | 21,349,138 | |||||||||
Interest rate (as a percent) | 0.25% | ||||||||||
2 3/8% Convertible Notes due 2024 | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | $ 951,168 | 1,000,000 | |||||||||
Fair Value | $ 944,034 | 906,970 | |||||||||
Interest rate (as a percent) | 2.375% | ||||||||||
Debt repurchased | $ 49,000 | ||||||||||
Aggregate principal amount | $ 1,000,000 | ||||||||||
Outstanding debt | $ 951,000 | ||||||||||
5 7/8% Senior Notes due 2024 | |||||||||||
Debt Instrument | |||||||||||
Interest rate (as a percent) | 5.875% | ||||||||||
Aggregate principal amount | $ 2,000,000 | ||||||||||
Debt instrument for repurchased amount | $ 17,000 | ||||||||||
Outstanding debt | 1,983,000 | ||||||||||
0% Convertible Notes due 2025 | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | 1,957,197 | 2,000,000 | |||||||||
Fair Value | $ 1,228,141 | 1,287,540 | |||||||||
Interest rate (as a percent) | 0% | ||||||||||
Debt instrument for repurchased amount | $ 43,000 | ||||||||||
Outstanding debt | 1,957,000 | ||||||||||
7 3/4% Senior Notes due 2026 | |||||||||||
Debt Instrument | |||||||||||
Aggregate principal amount | $ 2,000,000 | ||||||||||
3 3/8% Convertible Notes due 2026 | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | 2,908,801 | 3,000,000 | |||||||||
Fair Value | $ 1,570,753 | 1,894,230 | |||||||||
Interest rate (as a percent) | 3.375% | ||||||||||
Aggregate principal amount | $ 3,000,000 | ||||||||||
Debt instrument for repurchased amount | $ 91,000 | ||||||||||
Outstanding debt | 2,909,000 | ||||||||||
5 1/4% Senior Secured Notes due 2026 | |||||||||||
Debt Instrument | |||||||||||
Aggregate principal amount | 2,750,000 | ||||||||||
11 3/4% Senior Secured Notes due 2027 | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | 3,500,000 | 2,000,000 | |||||||||
Fair Value | 3,668,980 | 2,071,240 | |||||||||
Aggregate principal amount | 1,500,000 | $ 1,500,000 | $ 2,000,000 | ||||||||
5 3/4% Senior Secured Notes due 2028 | |||||||||||
Debt Instrument | |||||||||||
Aggregate principal amount | $ 2,500,000 | ||||||||||
DISH DBS Corporation ("DBS") | 5 7/8% Senior Notes due 2022 | |||||||||||
Debt Instrument | |||||||||||
Interest rate (as a percent) | 5.875% | ||||||||||
DISH DBS Corporation ("DBS") | 5% Senior Notes due 2023 | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | 1,443,179 | ||||||||||
Fair Value | $ 1,441,635 | ||||||||||
Interest rate (as a percent) | 5% | 5% | |||||||||
DISH DBS Corporation ("DBS") | 2 3/8% Convertible Notes due 2024 | |||||||||||
Debt Instrument | |||||||||||
Interest rate (as a percent) | 2.375% | 2.375% | |||||||||
DISH DBS Corporation ("DBS") | 5 7/8% Senior Notes due 2024 | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | $ 1,982,544 | $ 2,000,000 | |||||||||
Fair Value | $ 1,872,275 | $ 1,870,940 | |||||||||
Interest rate (as a percent) | 5.875% | 5.875% | |||||||||
DISH DBS Corporation ("DBS") | 0% Convertible Notes due 2025 | |||||||||||
Debt Instrument | |||||||||||
Interest rate (as a percent) | 0% | 0% | |||||||||
Aggregate principal amount | $ 2,000,000 | ||||||||||
DISH DBS Corporation ("DBS") | 7 3/4% Senior Notes due 2026 | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | $ 2,000,000 | $ 2,000,000 | |||||||||
Fair Value | $ 1,388,060 | $ 1,620,280 | |||||||||
Interest rate (as a percent) | 7.75% | 7.75% | |||||||||
DISH DBS Corporation ("DBS") | 3 3/8% Convertible Notes due 2026 | |||||||||||
Debt Instrument | |||||||||||
Interest rate (as a percent) | 3.375% | 3.375% | |||||||||
DISH DBS Corporation ("DBS") | 5 1/4% Senior Secured Notes due 2026 | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | $ 2,750,000 | $ 2,750,000 | |||||||||
Fair Value | $ 2,366,073 | $ 2,336,813 | |||||||||
Interest rate (as a percent) | 5.25% | 5.25% | |||||||||
DISH DBS Corporation ("DBS") | 11 3/4% Senior Secured Notes due 2027 | |||||||||||
Debt Instrument | |||||||||||
Interest rate (as a percent) | 11.75% | 11.75% | |||||||||
DISH DBS Corporation ("DBS") | 7 3/8% Senior Notes due 2028 | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | $ 1,000,000 | $ 1,000,000 | |||||||||
Fair Value | $ 600,160 | $ 708,320 | |||||||||
Interest rate (as a percent) | 7.375% | 7.375% | |||||||||
Aggregate principal amount | $ 1,000,000 | ||||||||||
DISH DBS Corporation ("DBS") | 5 3/4% Senior Secured Notes due 2028 | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | $ 2,500,000 | $ 2,500,000 | |||||||||
Fair Value | $ 2,013,125 | $ 2,013,675 | |||||||||
Interest rate (as a percent) | 5.75% | 5.75% | |||||||||
DISH DBS Corporation ("DBS") | 5 1/8 % Senior Notes due 2029 | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | $ 1,500,000 | $ 1,500,000 | |||||||||
Fair Value | $ 774,600 | $ 976,755 | |||||||||
Interest rate (as a percent) | 5.125% | 5.125% | |||||||||
Aggregate principal amount | $ 1,500,000 | ||||||||||
DISH DBS Corporation ("DBS") | Other notes payable | |||||||||||
Debt Instrument | |||||||||||
Carrying Value | $ 113,564 | $ 138,303 | |||||||||
Fair Value | $ 113,564 | $ 138,303 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Obligations - Narratives (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 14, 2023 | Jun. 14, 2022 | May 24, 2021 | Jul. 01, 2020 | Jul. 13, 2016 | Nov. 20, 2014 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2023 | Jan. 26, 2023 | Dec. 31, 2022 | Nov. 15, 2022 | Dec. 21, 2020 | Mar. 17, 2017 | Aug. 08, 2016 | Jun. 13, 2016 | |
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 0.25% | |||||||||||||||
Percentage of population for deploy 5G services | 73% | |||||||||||||||
Common stock par value (in dollars per share) | $ 0 | $ 0 | ||||||||||||||
EchoStar | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Principal Amount To Be Converted Into Shares On Merger | $ 1,000 | |||||||||||||||
Number of common shares issuable upon conversion | 0.350877 | |||||||||||||||
Minimum | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Percentage of population for deploy 5G services | 70% | |||||||||||||||
Class A common stock | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Common stock par value (in dollars per share) | $ 0.01 | |||||||||||||||
Wireless | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Percentage of population for deploy 5G services | 20% | 70% | 20% | |||||||||||||
Wireless | Maximum | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Percentage of population for deploy 5G services | 70% | 70% | ||||||||||||||
DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101% | |||||||||||||||
5 7/8% Senior Notes due 2022 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 5.875% | |||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 117,500,000 | |||||||||||||||
5% Senior Notes due 2023 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 5% | 5% | ||||||||||||||
2 3/8% Convertible Notes due 2024 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 2.375% | |||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | |||||||||||||||
2 3/8% Convertible Notes due 2024 | EchoStar | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Number of common shares issuable upon conversion | 4.2677 | |||||||||||||||
2 3/8% Convertible Notes due 2024 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 2.375% | 2.375% | ||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 23,750,000 | |||||||||||||||
0% Convertible Notes due 2025 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 0% | |||||||||||||||
0% Convertible Notes due 2025 | EchoStar | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Number of common shares issuable upon conversion | 8.5657 | |||||||||||||||
0% Convertible Notes due 2025 | Class A common stock | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Aggregate principal amount | $ 1,000 | |||||||||||||||
Convertible notes converted rate, shares | 8.566 | |||||||||||||||
Common stock par value (in dollars per share) | $ 116.74 | |||||||||||||||
0% Convertible Notes due 2025 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 0% | 0% | ||||||||||||||
Aggregate principal amount | $ 2,000,000,000 | |||||||||||||||
Redemption price as a percentage of principal amount | 100% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||
5 7/8% Senior Notes due 2024 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 5.875% | |||||||||||||||
Aggregate principal amount | $ 2,000,000,000 | |||||||||||||||
Term of loan | 10 years | |||||||||||||||
5 7/8% Senior Notes due 2024 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 5.875% | 5.875% | ||||||||||||||
Redemption price as a percentage of principal amount | 100% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||
7 3/4% Senior Notes due 2026 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Aggregate principal amount | $ 2,000,000,000 | |||||||||||||||
Term of loan | 10 years | |||||||||||||||
Redemption price as a percentage of principal amount | 100% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||
7 3/4% Senior Notes due 2026 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 7.75% | 7.75% | ||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 155,000,000 | |||||||||||||||
3 3/8% Convertible Notes due 2026 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 3.375% | |||||||||||||||
Aggregate principal amount | $ 3,000,000,000 | |||||||||||||||
Redemption price as a percentage of principal amount | 100% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||
3 3/8% Convertible Notes due 2026 | EchoStar | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Number of common shares issuable upon conversion | 5.3835 | |||||||||||||||
3 3/8% Convertible Notes due 2026 | Convertible note hedges | EchoStar | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Common stock par value (in dollars per share) | $ 185.76 | |||||||||||||||
Convertible notes converted into shares | 16,000,000 | |||||||||||||||
3 3/8% Convertible Notes due 2026 | Class A common stock | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Aggregate principal amount | $ 1,000 | |||||||||||||||
Convertible notes converted rate, shares | 5.383 | |||||||||||||||
Common stock par value (in dollars per share) | $ 185.76 | |||||||||||||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Convertible note hedges | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Common stock par value (in dollars per share) | $ 65.18 | |||||||||||||||
Convertible notes converted into shares | 46,000,000 | |||||||||||||||
Total cost of convertible notes | $ 635,000,000 | |||||||||||||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Common stock warrants | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Common stock par value (in dollars per share) | $ 86.08 | |||||||||||||||
Convertible notes converted into warrants | 46,000,000 | |||||||||||||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Common stock warrants | EchoStar | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Convertible notes converted into shares | 16,000,000 | |||||||||||||||
Cash proceeds from the sale of warrants | $ 376,000,000 | |||||||||||||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Common stock warrants | Minimum | EchoStar | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Common stock par value (in dollars per share) | $ 185.75 | |||||||||||||||
3 3/8% Convertible Notes due 2026 | Class A common stock | Common stock warrants | Maximum | EchoStar | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Common stock par value (in dollars per share) | $ 245.33 | |||||||||||||||
3 3/8% Convertible Notes due 2026 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 3.375% | 3.375% | ||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 101,250,000 | |||||||||||||||
7 3/8% Senior Notes due 2028 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 7.375% | 7.375% | ||||||||||||||
Aggregate principal amount | $ 1,000,000,000 | |||||||||||||||
Redemption price as a percentage of principal amount | 100% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 73,750,000 | |||||||||||||||
5 1/8 % Senior Notes due 2029 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 5.125% | 5.125% | ||||||||||||||
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101% | |||||||||||||||
Aggregate principal amount | $ 1,500,000,000 | |||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35% | |||||||||||||||
Redemption price as a percentage of principal amount | 100% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 76,875,000 | |||||||||||||||
5 1/4% Senior Secured Notes due 2026 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Aggregate principal amount | $ 2,750,000,000 | |||||||||||||||
5 1/4% Senior Secured Notes due 2026 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | ||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 144,375,000 | |||||||||||||||
5 3/4% Senior Secured Notes due 2028 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Aggregate principal amount | $ 2,500,000,000 | |||||||||||||||
5 3/4% Senior Secured Notes due 2028 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 5.75% | 5.75% | ||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 143,750,000 | |||||||||||||||
11 3/4% Senior Secured Notes due 2027 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Aggregate principal amount | $ 1,500,000,000 | $ 1,500,000,000 | $ 2,000,000,000 | |||||||||||||
Threshold Loan To Value Ratio | 0.35 | |||||||||||||||
Period to Obtain Initial Appraisal of Collateral | 120 days | |||||||||||||||
Period to Obtain Second Appraisal of Collateral | 120 days | |||||||||||||||
Second Appraisal of Collateral Percentage Threshold For License | 10% | |||||||||||||||
Fair Value of Collateral | $ 10,040,000,000 | |||||||||||||||
Period to Add Additional Collateral After Initial Appraisal | 60 days | |||||||||||||||
Period to Add Additional Collateral After Second Appraisal | 90 days | |||||||||||||||
11 3/4% Senior Secured Notes due 2027 | Failure to Deliver Appraisal Within Specified Days [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Redemption price as a percentage of principal amount | 102% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 102% | |||||||||||||||
11 3/4% Senior Secured Notes due 2027 | Failure to Add Additional Collateral [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Redemption price as a percentage of principal amount | 102% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 102% | |||||||||||||||
11 3/4% Senior Secured Notes due 2027 | DISH DBS Corporation ("DBS") | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Interest rate (as a percent) | 11.75% | 11.75% | ||||||||||||||
Debt Instrument, Periodic Payment, Interest | $ 411,250,000 | |||||||||||||||
Prior to June 1, 2026 | 5 1/4% Senior Secured Notes due 2026 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Redemption price as a percentage of principal amount | 100% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||
Prior to December 1, 2024 | 5 1/4% Senior Secured Notes due 2026 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Term of loan | 36 months | |||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35% | |||||||||||||||
Percentage of redemption price for each twelve-month period | 10% | |||||||||||||||
Redemption price as a percentage of principal amount | 103% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 103% | |||||||||||||||
Prior to December 1, 2024 | 5 3/4% Senior Secured Notes due 2028 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Redemption price as a percentage of principal amount | 103% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 103% | |||||||||||||||
Prior to December 1, 2027 | 5 3/4% Senior Secured Notes due 2028 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Term of loan | 36 months | |||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35% | |||||||||||||||
Percentage of redemption price for each twelve-month period | 10% | |||||||||||||||
Redemption price as a percentage of principal amount | 100% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||
Prior to December 1, 2027 | 11 3/4% Senior Secured Notes due 2027 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Redemption price as a percentage of principal amount | 100% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100% | |||||||||||||||
Prior to May 15, 2025 | 11 3/4% Senior Secured Notes due 2027 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 40% | |||||||||||||||
Early redemption percent of principal amount | 111.75% |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Obligations - Intercompany Loan (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | 192 Months Ended | |||
Feb. 11, 2022 | Jan. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Debt Instrument | ||||||
Interest rate (as a percent) | 0.25% | 0.25% | ||||
Interest paid in cash | $ 1,301,783 | $ 1,044,276 | $ 781,874 | |||
Payment to customer | $ 30,000,000 | |||||
DISH DBS Corporation ("DBS") | ||||||
Debt Instrument | ||||||
Minimum interest payment due (in percent) | 50% | |||||
Interest payment in kind (in percent) | 0.75% | |||||
5 1/4% Senior Secured Notes due 2026 | DISH DBS Corporation ("DBS") | ||||||
Debt Instrument | ||||||
Interest rate (as a percent) | 5.25% | 5.25% | ||||
5 3/4% Senior Secured Notes due 2028 | DISH DBS Corporation ("DBS") | ||||||
Debt Instrument | ||||||
Interest rate (as a percent) | 5.75% | 5.75% | ||||
Intercompany Loan | ||||||
Debt Instrument | ||||||
Additional debt | $ 4,700,000 | |||||
Intercompany Loan | DISH DBS Corporation ("DBS") | ||||||
Debt Instrument | ||||||
Additional debt | $ 1,500,000 | |||||
Interest paid in cash | $ 105,000 | |||||
Outstanding amount | 7,496,000 | $ 7,496,000 | ||||
Intercompany Loan | DISH DBS Corporation ("DBS") | Ghz 3.45 to 3.55 | ||||||
Debt Instrument | ||||||
Cash proceeds | 6,750,000 | |||||
Cash and marketable investment securities paid | 455,000 | |||||
Payment to customer | $ 7,205,000 |
Long-Term Debt and Finance Le_6
Long-Term Debt and Finance Lease Obligations - Interest on Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2023 | Mar. 15, 2024 | Jan. 12, 2024 | Jan. 26, 2023 | Dec. 31, 2022 | Nov. 15, 2022 | May 24, 2021 | Jul. 01, 2020 | Mar. 17, 2017 | Aug. 08, 2016 | Jun. 13, 2016 | Nov. 20, 2014 | |
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 0.25% | |||||||||||
5% Senior Notes due 2023 | DISH DBS Corporation ("DBS") | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 5% | 5% | ||||||||||
2 3/8% Convertible Notes due 2024 | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 2.375% | |||||||||||
Aggregate principal amount | $ 1,000,000 | |||||||||||
2 3/8% Convertible Notes due 2024 | Subsequent event | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 2.375% | |||||||||||
2 3/8% Convertible Notes due 2024 | DISH DBS Corporation ("DBS") | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 2.375% | 2.375% | ||||||||||
Annual Debt Service Requirements | $ 23,750 | |||||||||||
5 7/8% Senior Notes due 2024 | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 5.875% | |||||||||||
Aggregate principal amount | $ 2,000,000 | |||||||||||
5 7/8% Senior Notes due 2024 | DISH DBS Corporation ("DBS") | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 5.875% | 5.875% | ||||||||||
7 3/4% Senior Notes due 2026 | ||||||||||||
Debt Instrument | ||||||||||||
Aggregate principal amount | $ 2,000,000 | |||||||||||
7 3/4% Senior Notes due 2026 | DISH DBS Corporation ("DBS") | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 7.75% | 7.75% | ||||||||||
Annual Debt Service Requirements | $ 155,000 | |||||||||||
3 3/8% Convertible Notes due 2026 | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 3.375% | |||||||||||
Aggregate principal amount | $ 3,000,000 | |||||||||||
3 3/8% Convertible Notes due 2026 | Subsequent event | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 3.375% | |||||||||||
3 3/8% Convertible Notes due 2026 | DISH DBS Corporation ("DBS") | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 3.375% | 3.375% | ||||||||||
Annual Debt Service Requirements | $ 101,250 | |||||||||||
5 1/4% Senior Secured Notes due 2026 | ||||||||||||
Debt Instrument | ||||||||||||
Aggregate principal amount | $ 2,750,000 | |||||||||||
5 1/4% Senior Secured Notes due 2026 | DISH DBS Corporation ("DBS") | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 5.25% | 5.25% | ||||||||||
Annual Debt Service Requirements | $ 144,375 | |||||||||||
11 3/4% Senior Secured Notes due 2027 | ||||||||||||
Debt Instrument | ||||||||||||
Aggregate principal amount | $ 1,500,000 | $ 1,500,000 | $ 2,000,000 | |||||||||
11 3/4% Senior Secured Notes due 2027 | DISH DBS Corporation ("DBS") | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 11.75% | 11.75% | ||||||||||
Annual Debt Service Requirements | $ 411,250 | |||||||||||
7 3/8% Senior Notes due 2028 | DISH DBS Corporation ("DBS") | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 7.375% | 7.375% | ||||||||||
Aggregate principal amount | $ 1,000,000 | |||||||||||
Annual Debt Service Requirements | $ 73,750 | |||||||||||
5 1/8 % Senior Notes due 2029 | DISH DBS Corporation ("DBS") | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 5.125% | 5.125% | ||||||||||
Aggregate principal amount | $ 1,500,000 | |||||||||||
Annual Debt Service Requirements | $ 76,875 | |||||||||||
5 7/8% Senior Notes due 2022 | DISH DBS Corporation ("DBS") | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 5.875% | |||||||||||
Annual Debt Service Requirements | $ 117,500 | |||||||||||
5 3/4% Senior Secured Notes due 2028 | ||||||||||||
Debt Instrument | ||||||||||||
Aggregate principal amount | $ 2,500,000 | |||||||||||
5 3/4% Senior Secured Notes due 2028 | DISH DBS Corporation ("DBS") | ||||||||||||
Debt Instrument | ||||||||||||
Interest rate (as a percent) | 5.75% | 5.75% | ||||||||||
Annual Debt Service Requirements | $ 143,750 |
Long-Term Debt and Finance Le_7
Long-Term Debt and Finance Lease Obligations - Other Long-Term Debt and Finance Lease Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other long-term debt and capital lease obligations | ||
Total | $ 237,222 | $ 261,656 |
Less current portion | (107,717) | (104,011) |
Other long-term debt and capital lease obligations, net of current portion | $ 129,505 | 157,645 |
Interest rate (as a percent) | 0.25% | |
Finance lease obligations | ||
Other long-term debt and capital lease obligations | ||
Total | $ 123,658 | 123,353 |
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates ranging from approximately 6% to 13% | ||
Other long-term debt and capital lease obligations | ||
Total | $ 113,564 | $ 138,303 |
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates ranging from approximately 6% to 13% | Minimum | ||
Other long-term debt and capital lease obligations | ||
Interest rate (as a percent) | 0% | |
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates ranging from approximately 6% to 13% | Maximum | ||
Other long-term debt and capital lease obligations | ||
Interest rate (as a percent) | 11.40% |
Long-Term Debt and Finance Le_8
Long-Term Debt and Finance Lease Obligations - Finance Lease Obligations (Details) | 12 Months Ended |
Dec. 31, 2023 | |
FSS Satellite Anik F3 | |
Lessee, Lease, Description [Line Items] | |
Ku-band capacity leased (as a percent) | 100% |
Term of capital lease | 15 years |
Canadian DBS Satellite Ciel II | |
Lessee, Lease, Description [Line Items] | |
Satellite capacity leased (as a percent) | 100% |
Initial Term of capital lease | 10 years |
Nimiq 5 | |
Lessee, Lease, Description [Line Items] | |
Nimiq capacity leased (as a percent) | 100% |
Income Taxes and Accounting f_3
Income Taxes and Accounting for Uncertainty in Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes and Accounting for Uncertainty in Income Taxes | |||
NOL for federal income tax purposes | $ 267,000 | ||
NOL benefit for state income tax purposes | 286,000 | ||
Tax benefit related to credit carryforwards | 83,000 | ||
Current (benefit) provision: | |||
Federal | (29,307) | $ (23,571) | $ 126,435 |
State | 29,254 | 59,690 | 31,944 |
Foreign | 3,301 | (7,118) | 2,387 |
Total current (benefit) provision | 3,248 | 29,001 | 160,766 |
Deferred (benefit) provision: | |||
Federal | (293,666) | 615,323 | 509,405 |
State | (152,725) | 85,045 | 86,822 |
Increase (decrease) in valuation allowance | 71,481 | 2,367 | 5,817 |
Total deferred (benefit) provision | (374,910) | 702,735 | 602,044 |
Total (benefit) provision | (371,662) | 731,736 | 762,810 |
Income (loss) before income taxes | (1,500,084) | $ 3,104,643 | $ 3,218,756 |
Portion of Income (loss) before income taxes related to foreign operations | $ 2,000 | ||
Reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes | |||
Statutory rate (as a percent) | 21% | 21% | 21% |
State income taxes, net of federal benefit (as a percent) | 5% | 3.10% | 2.90% |
Rates different than statutory | 0.10% | ||
Increase (decrease) in valuation allowance | 4.80% | 0.20% | |
Tax credits | (2.70%) | (0.50%) | (0.30%) |
Impairments | 0.70% | ||
Other, net (as a percent) | 1.70% | (0.10%) | |
Total (benefit) provision for income taxes (as a percent) | 24.80% | 23.60% | 23.70% |
Deferred tax assets: | |||
NOL, credit and other carryforwards | $ 1,054,749 | $ 445,389 | |
Accrued and prepaid expenses | 866,277 | 672,854 | |
Stock-based compensation | 20,934 | 23,738 | |
Unrealized (gains) losses on available for sale and other investments | 198,587 | ||
Discount on convertible notes and convertible note hedge transaction, net | 46,636 | 64,643 | |
Deferred revenue | 13,197 | 6,903 | |
Total deferred tax assets | 2,200,380 | 1,213,527 | |
Valuation allowance | (153,453) | (81,972) | |
Deferred tax asset after valuation allowance | 2,046,927 | 1,131,555 | |
Deferred tax liabilities: | |||
Depreciation | (1,554,517) | (1,374,276) | |
Unrealized (gains) losses on available for sale and other investments | (244,397) | ||
FCC authorizations and other intangible amortization | (3,869,784) | (3,400,772) | |
Bases differences in partnerships and cost method investments | (1,179,888) | (1,042,245) | |
Total deferred tax liabilities | (6,604,189) | (6,061,690) | |
Net deferred tax asset (liability) | (4,557,262) | (4,930,135) | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Balance as of beginning of period | 431,640 | 388,837 | $ 378,467 |
Additions based on tax positions related to the current year | 3,601 | 35,180 | 303 |
Additions based on tax positions related to prior years | 9,292 | 14,723 | 12,095 |
Reductions based on tax positions related to prior years | (7,219) | (7,100) | (1,400) |
Reductions based on tax positions related to settlements with taxing authorities | (834) | ||
Reductions based on tax positions related to the lapse of the statute of limitations | (352) | (628) | |
Balance as of end of period | $ 436,128 | $ 431,640 | $ 388,837 |
Income Taxes and Accounting f_4
Income Taxes and Accounting for Uncertainty in Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes and Accounting for Uncertainty in Income Taxes | |||
Unrecognized tax benefits if recognized, could favorably affect our effective tax rate | $ 366 | ||
Interest and penalty (credit) expense | 39 | $ 22 | $ 16 |
Accrued interest and penalties | $ 164 | $ 126 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Stock Purchase Plan | |||
Employer matching contribution as a percentage of voluntary employee contributions under 401(k) plan | 50% | ||
Employer maximum annual contribution per employee under 401(k) plan | $ 2,500 | ||
Expense recognized related to 401(k) plan | |||
Matching contributions, net of forfeitures | 14,532,000 | $ 12,800,000 | $ 8,912,000 |
Discretionary stock contributions, net of forfeitures | $ 70,000 | $ 14,564,000 | $ 26,383,000 |
Employee Stock Purchase Plan | |||
Employee Stock Purchase Plan | |||
Minimum number of calendar quarters to be employed for full-time employees to be eligible to participate in the ESPP | 3 months | ||
Maximum fair value of capital stock permitted to be purchased by employees in any one year under ESPP | $ 25,000 | ||
Employee Stock Purchase Plan | Class A common stock | |||
Employee Stock Purchase Plan | |||
Number of shares authorized to be issued under Employee Stock Purchase Plan (ESPP) | 5 | ||
Purchase price as percentage of closing market price on the last business day of each calendar quarter under ESPP | 85% | ||
Employee Stock Purchase Plan | Class A common stock | Maximum | |||
Employee Stock Purchase Plan | |||
Shares of common stock available for future grant under stock incentive plans | 0.5 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 12 Months Ended | ||
Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | Sep. 30, 2022 employee $ / shares shares | |
Share-based compensation | |||
Number of stock options outstanding (in shares) | 4,631,083 | 13 | |
Percentage of stock awards vesting per year | 20% | ||
Number of employees | employee | 700 | ||
Weighted-average exercise price (in dollars per share) | $ / shares | $ 84.20 | $ 20 | |
Class A common stock | |||
Share-based compensation | |||
Number of stock options outstanding (in shares) | 9,900,000 | ||
Class A common stock | Stock Incentive Plan | |||
Share-based compensation | |||
Shares of common stock available for future grant under stock incentive plans | 17,200,000 | ||
Employee Stock Option [Member] | |||
Share-based compensation | |||
Number of stock options outstanding (in shares) | 9,887,330 | 10,494,032 | |
Maximum Expiration term | 10 years | ||
Weighted-average exercise price (in dollars per share) | $ / shares | $ 70.36 | $ 74.66 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Award Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock option activity | |||
Total options outstanding, end of period (in shares) | 4,631,083 | ||
Weighted-Average Exercise Price | |||
Total options outstanding, beginning of the period (in dollars per share) | $ 84.20 | ||
Total options outstanding at the end of the period (in dollars per share) | $ 84.20 | ||
Long-Term Performance Based Plans | |||
Stock option activity | |||
Total options outstanding, end of period (in shares) | 248,758 | ||
Weighted-Average Exercise Price | |||
Total options outstanding at the end of the period (in dollars per share) | $ 60.04 | ||
Employee Stock Option [Member] | |||
Stock option activity | |||
Total options outstanding, beginning of period (in shares) | 10,494,032 | ||
Granted (in shares) | 790,526 | ||
Forfeited and cancelled (in shares) | (1,397,228) | ||
Total options outstanding, end of period (in shares) | 9,887,330 | 10,494,032 | |
Exercisable at the end of the period (in shares) | 2,893,380 | ||
Weighted-Average Exercise Price | |||
Total options outstanding, beginning of the period (in dollars per share) | $ 74.66 | ||
Granted (in dollars per share) | 28.24 | ||
Forfeited and cancelled (in dollars per share) | 78.85 | ||
Total options outstanding at the end of the period (in dollars per share) | 70.36 | $ 74.66 | |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 65.85 | ||
Share-based compensation additional disclosures | |||
Tax benefit from stock awards exercised | $ 1,384 | $ 573 | $ 4,153 |
Aggregate intrinsic value and weighted- average remaining contractual life | |||
Granted (in shares) | 790,526 | ||
Aggregate intrinsic value of stock options exercisable | $ 98 | $ 16,029 | |
Weighted- average remaining contractual life outstanding | 7 years 2 months 15 days | ||
Weighted- average remaining contractual life exercisable | 6 years 10 months 6 days | ||
Employee Stock Option [Member] | Long-Term Performance Based Plans | |||
Stock option activity | |||
Total options outstanding, end of period (in shares) | 4,631,083 | ||
Weighted-Average Exercise Price | |||
Total options outstanding at the end of the period (in dollars per share) | $ 84.20 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock options and restricted stock units and awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock - Based Compensation | |||
Weighted-average grant date fair value of units and awards granted | $ 17.50 | ||
Employee Stock Option | |||
Stock - Based Compensation | |||
Weighted-average grant date fair value of options granted | 28.24 | $ 63.90 | $ 112.76 |
Intrinsic value of options exercised | $ 98 | $ 16,029 | |
Restricted stock units and awards | |||
Stock - Based Compensation | |||
Weighted-average grant date fair value of units and awards granted | $ 17.50 | $ 88.39 | $ 120.86 |
Fair value of units and rewards vested | $ 5,612 | $ 2,212 | $ 980 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted stock unit activity | |||
Total restricted stock units outstanding, beginning of period (in shares) | 502,804 | ||
Granted (in shares) | 5,776 | ||
Vested (in shares) | (275,100) | ||
Forfeited and cancelled (in shares) | (184,835) | ||
Total restricted stock units outstanding, end of period (in shares) | 48,645 | 502,804 | |
Weighted - Average Grant Date Fair Value | |||
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ 101.03 | ||
Granted (in dollars per share) | 17.50 | ||
Vested (in dollars per share) | 93.32 | ||
Forfeited and cancelled (in dollars per share) | 110.50 | ||
Total restricted stock units outstanding, end of period (in dollars per share) | $ 98.78 | $ 101.03 | |
Long-Term Performance Based Plans | |||
Restricted stock unit activity | |||
Vested (in shares) | 0 | ||
Restricted stock units | |||
Weighted - Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 17.50 | $ 88.39 | $ 120.86 |
Stock-Based Compensation - Long
Stock-Based Compensation - Long-Term Performance-Based Plans (Details) - shares | 12 Months Ended | |||
Nov. 04, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation additional disclosures | ||||
Vested (in shares) | (275,100) | |||
Award other than options cancelled | 184,835 | |||
Other Employee Performance Awards | ||||
Share-based compensation additional disclosures | ||||
Vested (in shares) | 0 | |||
Long-Term Performance Based Plans | ||||
Share-based compensation additional disclosures | ||||
Percentage of performance goals probable of achievement | 85% | 89% | 90% | |
Percentage of award vested | 78% | 75% | 69% | |
Additional awards vest in future period | 0 | |||
Vested (in shares) | 0 | |||
LTIP 2013 | Employee Stock Option [Member] | ||||
Share-based compensation additional disclosures | ||||
Shares cancelled | 276,147 | |||
LTIP 2013 | Restricted stock units | ||||
Share-based compensation additional disclosures | ||||
Award other than options cancelled | 137,449 | |||
LTIP 2017 | Employee Stock Option [Member] | ||||
Share-based compensation additional disclosures | ||||
Shares cancelled | 471,727 | |||
Ergen 2020 Performance Award | ||||
2005 LTIP Terms | ||||
Awards vesting period | 10 years | |||
Share-based compensation additional disclosures | ||||
Percentage of award vested | 20% | |||
Vested (in shares) | 0 | |||
Awards vesting period | 10 years | |||
2022 Incentive Plan | ||||
Share-based compensation additional disclosures | ||||
Percentage of award vested | 17% | 33% | ||
Vested (in shares) | 0 | |||
Percentage of probability of achievement of performance conditions | 100% | |||
Class A common stock | Ergen 2020 Performance Award | ||||
Share-based compensation additional disclosures | ||||
Granted | 4,385,962 |
Stock-Based Compensation - Lo_2
Stock-Based Compensation - Long-Term Performance-Based Plans - Additional (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Recognized non-cash stock-based compensation expense | ||||
Non-cash stock-based compensation expense recognized | $ 36,143 | $ 71,450 | $ 51,680 | |
Share-based compensation additional disclosures | ||||
Performance Based Stock Options (in shares) | 4,631,083 | 13 | ||
Weighted-average exercise price (in dollars per share) | $ 84.20 | $ 20 | ||
Restricted Performance Units (in shares) | 48,645 | 502,804 | ||
Long-Term Performance Based Plans | ||||
Recognized non-cash stock-based compensation expense | ||||
Non-cash stock-based compensation expense recognized | $ (1,903) | $ (97) | 489 | |
Share-based compensation additional disclosures | ||||
Performance Based Stock Options (in shares) | 248,758 | |||
Weighted-average exercise price (in dollars per share) | $ 60.04 | |||
LTIP 2013 | ||||
Recognized non-cash stock-based compensation expense | ||||
Non-cash stock-based compensation expense recognized | (13,610) | |||
LTIP 2017 | ||||
Share-based compensation additional disclosures | ||||
Performance Based Stock Options (in shares) | 471,727 | |||
Weighted-average exercise price (in dollars per share) | $ 164.20 | |||
Ergen 2020 Performance Award. | ||||
Recognized non-cash stock-based compensation expense | ||||
Non-cash stock-based compensation expense recognized | $ 12,308 | 12,308 | 34,513 | |
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | ||||
Expense estimated to be recognized during 2024 | 10,816 | |||
Estimated contingent expense subsequent to 2024 | 16,913 | |||
Total estimated remaining expense over the term of plan | $ 27,729 | |||
Share-based compensation additional disclosures | ||||
Performance Based Stock Options (in shares) | 3,508,770 | |||
Weighted-average exercise price (in dollars per share) | $ 78.98 | |||
2022 Incentive Plan | ||||
Recognized non-cash stock-based compensation expense | ||||
Non-cash stock-based compensation expense recognized | $ 7,346 | 19,088 | ||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | ||||
Expense estimated to be recognized during 2024 | 2,119 | |||
Estimated contingent expense subsequent to 2024 | 1,114 | |||
Total estimated remaining expense over the term of plan | $ 3,233 | |||
Share-based compensation additional disclosures | ||||
Performance Based Stock Options (in shares) | 401,828 | |||
Weighted-average exercise price (in dollars per share) | $ 50.78 | |||
Class A common stock | ||||
Share-based compensation additional disclosures | ||||
Performance Based Stock Options (in shares) | 9,900,000 | |||
Other Employee Performance Awards | ||||
Recognized non-cash stock-based compensation expense | ||||
Non-cash stock-based compensation expense recognized | $ 462 | 4,502 | 9,033 | |
Other Employee Performance Awards | Continuing operations | ||||
Recognized non-cash stock-based compensation expense | ||||
Non-cash stock-based compensation expense recognized | $ 18,213 | $ 35,801 | $ 30,425 | |
Restricted stock units | ||||
Share-based compensation additional disclosures | ||||
Performance Based Stock Options (in shares) | 49,000 | |||
Restricted stock units | Class A common stock | ||||
Share-based compensation additional disclosures | ||||
Performance Based Stock Options (in shares) | 49,000 |
Stock-Based Compensation - Comp
Stock-Based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation | |||
Non-cash, stock-based compensation | $ 36,143 | $ 71,450 | $ 51,680 |
Subscriber-related | |||
Stock-Based Compensation | |||
Non-cash, stock-based compensation | 2,609 | 6,511 | 4,365 |
Selling, general and administrative expenses | |||
Stock-Based Compensation | |||
Non-cash, stock-based compensation | 33,534 | $ 64,939 | $ 47,315 |
Non-Performance Based Stock Awards | |||
Share-based expenses | |||
Unrecognized compensation expense | $ 50,000 | ||
Share-based compensation additional disclosures | |||
Weighted average period for recognition of compensation cost | 8 years 7 months 6 days |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation | |||
Non-cash stock-based compensation expense recognized | $ 36,143 | $ 71,450 | $ 51,680 |
Black-Scholes option valuation model, assumptions | |||
Dividend yield (as a percent) | 0% | ||
Employee Stock Option [Member] | |||
Black-Scholes option valuation model, assumptions | |||
Fair value of options granted (in dollars per share) | $ 28.24 | $ 63.90 | $ 112.76 |
Employee Stock Option [Member] | Minimum | |||
Black-Scholes option valuation model, assumptions | |||
Risk free interest rate (as a percent) | 3.58% | 1.35% | 0.48% |
Volatility factor (as a percent) | 34.30% | 32.67% | 29.91% |
Expected term of options | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years |
Fair value of options granted (in dollars per share) | $ 7.40 | $ 5.97 | $ 6.20 |
Employee Stock Option [Member] | Maximum | |||
Black-Scholes option valuation model, assumptions | |||
Risk free interest rate (as a percent) | 4.61% | 4.02% | 1.11% |
Volatility factor (as a percent) | 41.25% | 34.84% | 34.51% |
Expected term of options | 6 years 7 months 6 days | 6 years | 5 years 10 months 24 days |
Fair value of options granted (in dollars per share) | $ 7.77 | $ 9.27 | $ 8.32 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 1 Months Ended | 12 Months Ended | 180 Months Ended | 192 Months Ended | |||||||||||||||||||||||
Feb. 24, 2024 USD ($) | Feb. 16, 2024 USD ($) | Oct. 25, 2023 USD ($) | Oct. 15, 2023 USD ($) | Oct. 12, 2023 USD ($) | Jun. 14, 2023 USD ($) | Jun. 14, 2022 USD ($) | Dec. 30, 2020 USD ($) | Jul. 01, 2020 USD ($) | Jun. 08, 2018 | Jun. 07, 2018 USD ($) | Jun. 06, 2018 | Sep. 23, 2016 | Aug. 18, 2015 USD ($) | Dec. 31, 2027 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2018 USD ($) item | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) item | Jun. 14, 2025 | Jul. 14, 2023 | Sep. 20, 2022 USD ($) | Dec. 31, 2020 USD ($) | |
Commitment and Contingencies | |||||||||||||||||||||||||||
2024 | $ 9,650,863,000 | $ 9,650,863,000 | |||||||||||||||||||||||||
2025 | 5,816,559,000 | 5,816,559,000 | |||||||||||||||||||||||||
2026 | 11,226,273,000 | 11,226,273,000 | |||||||||||||||||||||||||
2027 | 5,875,445,000 | 5,875,445,000 | |||||||||||||||||||||||||
2028 | 5,265,368,000 | 5,265,368,000 | |||||||||||||||||||||||||
Thereafter | 8,852,589,000 | 8,852,589,000 | |||||||||||||||||||||||||
Total | 46,687,097,000 | 46,687,097,000 | |||||||||||||||||||||||||
Network Development Future Expenditures | 10,000,000,000 | ||||||||||||||||||||||||||
Litigation accrual | $ 3,900,000 | ||||||||||||||||||||||||||
Unrecognized tax benefits | 436,128,000 | $ 431,640,000 | $ 388,837,000 | $ 431,640,000 | 436,128,000 | $ 378,467,000 | |||||||||||||||||||||
Unrecognized tax benefits To Be settle in Next 12 months | 0 | 0 | |||||||||||||||||||||||||
Purchase of ownership interests | $ 109,000,000 | ||||||||||||||||||||||||||
Percentage of Population 5G Services Offered | 50% | 75% | 70% | ||||||||||||||||||||||||
Percentage of population for deploy 5G services | 73% | ||||||||||||||||||||||||||
Minimum percentage of population having access to average download speed | 70% | ||||||||||||||||||||||||||
Payment to customer | 30,000,000,000 | ||||||||||||||||||||||||||
Proceeds from Refund of Deposits on Auction | 337,490,000 | ||||||||||||||||||||||||||
Carrying amount | 159,269,000 | 159,269,000 | |||||||||||||||||||||||||
Contractual Obligation | 46,687,097,000 | 46,687,097,000 | |||||||||||||||||||||||||
Percentage of Population to Whom 5G Broadband Service is Provided | 50% | ||||||||||||||||||||||||||
Percentage of Population Northstar Wireless and SNR Wireless offered | 75% | ||||||||||||||||||||||||||
Regulatory authorizations, net | 38,114,249,000 | 36,933,073,000 | 36,933,073,000 | $ 38,114,249,000 | |||||||||||||||||||||||
Impairment of long-lived assets | $ 225,017,000 | ||||||||||||||||||||||||||
Interest rate (as a percent) | 0.25% | 0.25% | |||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Noncontrolling Interest in Variable Interest Entity | $ 10,000,000,000 | $ 10,000,000,000 | |||||||||||||||||||||||||
Percentage of bidding credit | 25% | ||||||||||||||||||||||||||
MHz 700 Licenses and AWS-4 Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Percentage of Population to Whom 5G Broadband Service is Provided | 50% | ||||||||||||||||||||||||||
Percentage of population for deploy 5G services in each Economic Area | 70% | ||||||||||||||||||||||||||
H Block Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Percentage of population for deploy 5G services in each Economic Area | 75% | ||||||||||||||||||||||||||
5G Network Development | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Payment to customer | 30,000,000,000 | 30,000,000,000 | |||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Noncontrolling Interest in Variable Interest Entity | 10,000,000,000 | 10,000,000,000 | |||||||||||||||||||||||||
Capitalized interest on FCC authorizations | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Percentage of Population 5G Services Offered | 70% | ||||||||||||||||||||||||||
Regulatory authorizations, net | $ 8,523,682,000 | 7,344,515,000 | 7,344,515,000 | 8,523,682,000 | |||||||||||||||||||||||
Spectrum Purchase Agreement | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Purchase price | $ 3,590,000,000 | ||||||||||||||||||||||||||
Asset Purchase Agreement, Termination Fee Payable | $ 72,000,000 | ||||||||||||||||||||||||||
Class B common stock | Northstar Manager LLC | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Equity Method Investment, Ownership Percentage | 3% | ||||||||||||||||||||||||||
Maximum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Programming Contracts term | 10 years | ||||||||||||||||||||||||||
Minimum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Percentage of population for deploy 5G services | 70% | ||||||||||||||||||||||||||
Programming Contracts term | 1 year | ||||||||||||||||||||||||||
Minimum | MHz 700 Licenses and AWS-4 Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Minimum percentage of population having access to average download speed | 70% | ||||||||||||||||||||||||||
Northstar Manager LLC | Class B common stock | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Ownership percentage | 97% | ||||||||||||||||||||||||||
Payment For Purchase Agreement | $ 312,000,000 | ||||||||||||||||||||||||||
Wireless | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Network development current and future expenditures | $ 10,000,000,000 | 10,000,000,000 | $ 10,000,000,000 | ||||||||||||||||||||||||
Percentage of population for deploy 5G services | 20% | 70% | 20% | ||||||||||||||||||||||||
Payment to customer | 30,000,000,000 | ||||||||||||||||||||||||||
Regulatory authorizations, net | $ 25,319,108,000 | $ 25,317,099,000 | $ 25,317,099,000 | 25,319,108,000 | |||||||||||||||||||||||
Number of Americans, Provided With Five G Deployment Services | 200,000,000 | ||||||||||||||||||||||||||
Wireless | Maximum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Percentage of population for deploy 5G services | 70% | 70% | |||||||||||||||||||||||||
Wireless | At least 50% by June 2023 | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Percentage of population for deploy 5G services | 50% | 50% | |||||||||||||||||||||||||
H Block Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Percentage of population for deploy 5G services in each Economic Area | 75% | ||||||||||||||||||||||||||
Regulatory authorizations, net | $ 1,671,506,000 | 1,671,506,000 | |||||||||||||||||||||||||
DBS Licenses. | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 677,409,000 | 677,409,000 | |||||||||||||||||||||||||
700 MHz Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 711,871,000 | 711,871,000 | |||||||||||||||||||||||||
600 MHz Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 6,213,335,000 | 6,213,335,000 | |||||||||||||||||||||||||
MVDDS | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 24,000,000 | 24,000,000 | |||||||||||||||||||||||||
28 GHz Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 2,883,000 | 2,883,000 | |||||||||||||||||||||||||
24 GHz Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 11,772,000 | 11,772,000 | |||||||||||||||||||||||||
37 Ghz, 39 Ghz and 47 Ghz Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 202,533,000 | 202,533,000 | |||||||||||||||||||||||||
3550-3650 MHz Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 912,939,000 | 912,939,000 | |||||||||||||||||||||||||
Ghz 3.7 to 3.98 | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 2,969,000 | 2,969,000 | |||||||||||||||||||||||||
Ghz 3.45 to 3.55 | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 7,327,989,000 | 7,327,989,000 | |||||||||||||||||||||||||
1695-1710 MHz, 1755-1780 MHz, and 2155-2180 MHz | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 972,000 | 972,000 | |||||||||||||||||||||||||
AWS 3 Auction | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | $ 5,618,930,000 | 5,618,930,000 | |||||||||||||||||||||||||
AWS-3 Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Accelerated build out period | 2 years | ||||||||||||||||||||||||||
AWS-4 Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | $ 1,940,000,000 | 1,940,000,000 | |||||||||||||||||||||||||
SNR Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 4,271,459,000 | 4,271,459,000 | |||||||||||||||||||||||||
Capitalized Interest | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Regulatory authorizations, net | 8,523,682,000 | 8,523,682,000 | |||||||||||||||||||||||||
5 G Network Deployment | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Percentage of Population to Whom 5G Broadband Service is Provided | 73% | ||||||||||||||||||||||||||
Number of Americans To Whom Five G Broadband Service Is Provided | 246,000,000 | 250,000,000 | |||||||||||||||||||||||||
Northstar Spectrum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Purchase of ownership interests | 109,000,000 | ||||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Value of ownership rights accrued | $ 109,000,000 | ||||||||||||||||||||||||||
Northstar Spectrum And SNR Holdco | |||||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Noncontrolling Interest in Variable Interest Entity | $ 10,000,000,000 | $ 10,000,000,000 | |||||||||||||||||||||||||
Northstar Spectrum And SNR Holdco | AWS 3 Auction | |||||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Percentage of bidding credit | 25% | ||||||||||||||||||||||||||
Northstar Spectrum And SNR Holdco | AWS-3 Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Interim Build-out Requirement (as a percent) | 40% | ||||||||||||||||||||||||||
Final Build-out Requirement (as a percent) | 75% | ||||||||||||||||||||||||||
Accelerated period to meet Final Build-Out Requirement on failure to meet Interim Build-Out Requirement | 2 years | ||||||||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Interim payment percentage | 15% | ||||||||||||||||||||||||||
Re-Auction payment | $ 1,892,000,000 | ||||||||||||||||||||||||||
Overpayment of interim payment | $ 334,000,000 | ||||||||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | Preferred Class A | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Ownership percentage | 100% | ||||||||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | Northstar Manager LLC | |||||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Controlling interest owned by other companies | 15% | ||||||||||||||||||||||||||
Equity contribution | $ 133,000,000 | ||||||||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | American II. | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Ownership percentage | 85% | ||||||||||||||||||||||||||
Loan made | $ 69,000,000 | ||||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Equity contribution | 7,621,000,000 | ||||||||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Interim Payment | $ 334,000,000 | ||||||||||||||||||||||||||
Interim payment percentage | 15% | ||||||||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | Northstar Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Number of wireless spectrum licenses | item | 261 | 261 | |||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Gross winning bids | $ 5,619,000,000 | ||||||||||||||||||||||||||
Bidding credit value | $ 1,961,000,000 | ||||||||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Non-payment gross winning bids | 2,226,000,000 | $ 2,226,000,000 | |||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Gross winning bids | $ 7,845,000,000 | ||||||||||||||||||||||||||
Percentage of bidding credit | 25% | ||||||||||||||||||||||||||
Net winning bid | $ 5,884,000,000 | ||||||||||||||||||||||||||
Northstar Wireless or Northstar Spectrum | SNR Licenses | |||||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Percentage of bidding credit | 25% | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Non-payment gross winning bids | $ 1,211,000,000 | 1,211,000,000 | |||||||||||||||||||||||||
Interim payment percentage | 15% | ||||||||||||||||||||||||||
Re-Auction payment | $ 1,029,000,000 | ||||||||||||||||||||||||||
Overpayment of interim payment | $ 182,000,000 | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | Maximum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 12% | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | Minimum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 8% | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | SNR Wireless Management LLC | |||||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Controlling interest owned by other companies | 15% | ||||||||||||||||||||||||||
Equity contribution | 93,000,000 | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American II. | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Window of days for management to put its interest | 360 days | 270 days | |||||||||||||||||||||||||
Additional days allowed for management to put its interest | 90 days | ||||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Value of ownership rights accrued | $ 109,000,000 | $ 109,000,000 | |||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American II. | Maximum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 12% | ||||||||||||||||||||||||||
Window of days for management to put its interest | 90 days | 90 days | |||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American II. | Minimum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 8% | ||||||||||||||||||||||||||
Window of days for management to put its interest | 30 days | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American III | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Number of wireless spectrum licenses | item | 244 | 244 | |||||||||||||||||||||||||
Loan made | $ 344,000,000 | ||||||||||||||||||||||||||
Debt outstanding amount | 5,065,000,000 | ||||||||||||||||||||||||||
Principal amount of debt | 500,000,000 | ||||||||||||||||||||||||||
Window of days for management to put its interest | 90 days | 30 days | |||||||||||||||||||||||||
Additional days allowed for management to put its interest | 90 days | ||||||||||||||||||||||||||
Additional loan to pay gross winning bids | 344,000,000 | ||||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Equity contribution | $ 5,590,000,000 | ||||||||||||||||||||||||||
Gross winning bids | 4,271,000,000 | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American III | Preferred Class A | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Number shares issued in conversion | item | 5,065,415 | ||||||||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 12% | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American III | Maximum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Interest rate (as a percent) | 12% | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | American III | Minimum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Interest rate (as a percent) | 6% | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | AWS-3 Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Non-payment gross winning bids | 1,211,000,000 | $ 1,211,000,000 | |||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco | SNR Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Interim Payment | 182,000,000 | ||||||||||||||||||||||||||
Non-payment gross winning bids | $ 1,211,000,000 | 1,211,000,000 | |||||||||||||||||||||||||
Interim payment percentage | 15% | ||||||||||||||||||||||||||
Additional Bid Withdrawal Payment | $ 3,000,000 | ||||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Gross winning bids | $ 5,482,000,000 | ||||||||||||||||||||||||||
Percentage of bidding credit | 25% | ||||||||||||||||||||||||||
Net winning bid | $ 4,112,000,000 | ||||||||||||||||||||||||||
Bid withdrawal payment | $ 8,000,000 | ||||||||||||||||||||||||||
Bidding credit value | $ 1,370,000,000 | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco Class B Common Interests | American III | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Ownership percentage | 85% | ||||||||||||||||||||||||||
SNR Wireless or SNR Wireless Holdco Class A Common Interests | American III | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Ownership percentage | 100% | ||||||||||||||||||||||||||
American II. | Northstar Manager LLC | Class B common stock | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Ownership percentage | 80% | ||||||||||||||||||||||||||
Prior Arrangement | Northstar Licenses | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Non-payment gross winning bids | $ 2,226,000,000 | 2,226,000,000 | |||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Number of licenses returned | item | 84 | ||||||||||||||||||||||||||
Prior Arrangement | SNR Wireless or SNR Wireless Holdco | SNR Licenses | |||||||||||||||||||||||||||
Commitments relating to AWS-3 Auction | |||||||||||||||||||||||||||
Number of licenses returned | item | 113 | ||||||||||||||||||||||||||
Northstar Operative Agreement | Northstar Spectrum And SNR Holdco | American II. | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Debt outstanding amount | $ 6,870,000,000 | ||||||||||||||||||||||||||
Northstar Operative Agreement | Northstar Wireless or Northstar Spectrum | American II. | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Principal amount of debt | $ 500,000,000 | ||||||||||||||||||||||||||
Loan balance maturity period | 10 years | 7 years | |||||||||||||||||||||||||
Removal of consent for unsecured financing and equipment financing | $ 25,000,000 | ||||||||||||||||||||||||||
Northstar Operative Agreement | Northstar Wireless or Northstar Spectrum | American II. | Preferred Class A | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Number shares issued in conversion | 6,870,493 | ||||||||||||||||||||||||||
Preferred stock quarterly distribution (as a percent) | 12% | ||||||||||||||||||||||||||
Northstar Operative Agreement | Northstar Wireless or Northstar Spectrum | American II. | Maximum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Interest rate (as a percent) | 12% | ||||||||||||||||||||||||||
Northstar Operative Agreement | Northstar Wireless or Northstar Spectrum | American II. | Minimum | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Interest rate (as a percent) | 6% | ||||||||||||||||||||||||||
SNR Operative Agreement | SNR Wireless or SNR Wireless Holdco | American III | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Loan balance maturity period | 10 years | 7 years | |||||||||||||||||||||||||
Removal of consent for unsecured financing and equipment financing | $ 25,000,000 | ||||||||||||||||||||||||||
The Amendment | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Upfront payment payable | $ 100,000,000 | ||||||||||||||||||||||||||
Payment of Upfront Payment | $ 100,000,000 | ||||||||||||||||||||||||||
Pay Upfront Payment, Paid | $ 100,000,000 | ||||||||||||||||||||||||||
Long-term debt obligations | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
2024 | $ 2,984,970,000 | 2,984,970,000 | |||||||||||||||||||||||||
2025 | 1,985,772,000 | 1,985,772,000 | |||||||||||||||||||||||||
2026 | 7,669,305,000 | 7,669,305,000 | |||||||||||||||||||||||||
2027 | 3,511,107,000 | 3,511,107,000 | |||||||||||||||||||||||||
2028 | 3,502,529,000 | 3,502,529,000 | |||||||||||||||||||||||||
Thereafter | 1,509,591,000 | 1,509,591,000 | |||||||||||||||||||||||||
Total | 21,163,274,000 | 21,163,274,000 | |||||||||||||||||||||||||
Contractual Obligation | 21,163,274,000 | 21,163,274,000 | |||||||||||||||||||||||||
Interest expense on long-term debt and capital lease obligations | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
2024 | 1,237,046,000 | 1,237,046,000 | |||||||||||||||||||||||||
2025 | 1,106,622,000 | 1,106,622,000 | |||||||||||||||||||||||||
2026 | 1,105,276,000 | 1,105,276,000 | |||||||||||||||||||||||||
2027 | 707,126,000 | 707,126,000 | |||||||||||||||||||||||||
2028 | 294,971,000 | 294,971,000 | |||||||||||||||||||||||||
Thereafter | 39,552,000 | 39,552,000 | |||||||||||||||||||||||||
Total | 4,490,593,000 | 4,490,593,000 | |||||||||||||||||||||||||
Contractual Obligation | 4,490,593,000 | 4,490,593,000 | |||||||||||||||||||||||||
Finance lease obligations | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
2024 | 56,459,000 | 56,459,000 | |||||||||||||||||||||||||
2025 | 30,381,000 | 30,381,000 | |||||||||||||||||||||||||
2026 | 34,290,000 | 34,290,000 | |||||||||||||||||||||||||
2027 | 2,528,000 | 2,528,000 | |||||||||||||||||||||||||
Total | 123,658,000 | 123,658,000 | |||||||||||||||||||||||||
Contractual Obligation | 123,658,000 | 123,658,000 | |||||||||||||||||||||||||
5G network deployment obligations | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Total | 1,557,000,000 | 1,557,000,000 | |||||||||||||||||||||||||
Percentage of Population 5G Services Offered | 70% | ||||||||||||||||||||||||||
Percentage of population for deploy 5G services | 75% | ||||||||||||||||||||||||||
Contractual Obligation | 1,557,000,000 | 1,557,000,000 | |||||||||||||||||||||||||
Interest expense on finance lease obligations | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
2024 | 9,614,000 | 9,614,000 | |||||||||||||||||||||||||
2025 | 5,011,000 | 5,011,000 | |||||||||||||||||||||||||
2026 | 2,298,000 | 2,298,000 | |||||||||||||||||||||||||
2027 | 46,000 | 46,000 | |||||||||||||||||||||||||
Total | 16,969,000 | 16,969,000 | |||||||||||||||||||||||||
Contractual Obligation | 16,969,000 | 16,969,000 | |||||||||||||||||||||||||
Satellite-related obligations | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
2024 | 2,886,529,000 | 2,886,529,000 | |||||||||||||||||||||||||
2025 | 2,198,229,000 | 2,198,229,000 | |||||||||||||||||||||||||
2026 | 1,913,876,000 | 1,913,876,000 | |||||||||||||||||||||||||
2027 | 1,158,515,000 | 1,158,515,000 | |||||||||||||||||||||||||
2028 | 1,013,256,000 | 1,013,256,000 | |||||||||||||||||||||||||
Thereafter | 4,236,411,000 | 4,236,411,000 | |||||||||||||||||||||||||
Total | 13,406,816,000 | 13,406,816,000 | |||||||||||||||||||||||||
Contractual Obligation | 13,406,816,000 | 13,406,816,000 | |||||||||||||||||||||||||
Operating lease obligations | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
2024 | 423,347,000 | 423,347,000 | |||||||||||||||||||||||||
2025 | 463,276,000 | 463,276,000 | |||||||||||||||||||||||||
2026 | 495,472,000 | 495,472,000 | |||||||||||||||||||||||||
2027 | 495,786,000 | 495,786,000 | |||||||||||||||||||||||||
2028 | 454,612,000 | 454,612,000 | |||||||||||||||||||||||||
Thereafter | 3,067,035,000 | 3,067,035,000 | |||||||||||||||||||||||||
Total | 5,399,528,000 | 5,399,528,000 | |||||||||||||||||||||||||
Contractual Obligation | 5,399,528,000 | 5,399,528,000 | |||||||||||||||||||||||||
Purchase obligations | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
2024 | 2,052,898,000 | 2,052,898,000 | |||||||||||||||||||||||||
2025 | 27,268,000 | 27,268,000 | |||||||||||||||||||||||||
2026 | 5,756,000 | 5,756,000 | |||||||||||||||||||||||||
2027 | 337,000 | 337,000 | |||||||||||||||||||||||||
Total | 2,086,259,000 | 2,086,259,000 | |||||||||||||||||||||||||
Contractual Obligation | $ 2,086,259,000 | $ 2,086,259,000 | |||||||||||||||||||||||||
SNR Credit Agreement | SNR Wireless or SNR Wireless Holdco | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Loan made | $ 500,000,000 | ||||||||||||||||||||||||||
SNR Credit Agreement | SNR Wireless or SNR Wireless Holdco | American III | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Loan made | 500,000,000 | ||||||||||||||||||||||||||
Northstar Credit Agreement | Northstar Wireless or Northstar Spectrum | American II. | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Loan made | $ 500,000,000 | ||||||||||||||||||||||||||
Subsequent event | SNR Operative Agreement | |||||||||||||||||||||||||||
Commitment and Contingencies | |||||||||||||||||||||||||||
Purchase of ownership interests | $ 442,000,000 | $ 442,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Part 2 (Details) person in Millions | 12 Months Ended | ||||||||
Sep. 29, 2023 person | Jun. 14, 2023 person | Sep. 23, 2016 USD ($) | Aug. 18, 2015 USD ($) | Jul. 15, 2015 USD ($) | Mar. 14, 2014 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Loss contingencies | |||||||||
Number of Americans Nationwide For Deploy FiveG Services | person | 200 | 246 | |||||||
Impairment of long-lived assets | $ 225,017,000 | ||||||||
Loss contingency terms | |||||||||
Percentage of bidding credit | 25% | ||||||||
ClearPlay | |||||||||
Loss contingency terms | |||||||||
Claim amount | $ 469,000,000 | ||||||||
Wireless | |||||||||
Loss contingencies | |||||||||
Network development current and future expenditures | $ 10,000,000,000 | $ 10,000,000,000 | $ 10,000,000,000 | ||||||
Northstar Spectrum And SNR Holdco | AWS-3 Licenses | |||||||||
Loss contingencies | |||||||||
Interim Build-out Requirement (as a percent) | 40% | ||||||||
Final Build-out Requirement (as a percent) | 75% | ||||||||
Accelerated period to meet Final Build-Out Requirement on failure to meet Interim Build-Out Requirement | 2 years | ||||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | |||||||||
Loss contingency terms | |||||||||
Percentage of bidding credit | 25% | ||||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | Vermont National Telephone Company | |||||||||
Loss contingency terms | |||||||||
Recovery amount | $ 10,000,000,000 | ||||||||
Bidding credit value | 3,300,000,000 | ||||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | Minimum | Vermont National Telephone Company | |||||||||
Loss contingency terms | |||||||||
Claim amount | 5,500 | ||||||||
Northstar Wireless or Northstar Spectrum | AWS-3 Licenses | Maximum | Vermont National Telephone Company | |||||||||
Loss contingency terms | |||||||||
Claim amount | $ 11,000 | ||||||||
Northstar Wireless or Northstar Spectrum | SNR Licenses | |||||||||
Loss contingency terms | |||||||||
Percentage of bidding credit | 25% | ||||||||
Northstar Wireless or Northstar Spectrum | Northstar Licenses | |||||||||
Loss contingency terms | |||||||||
Bidding credit value | $ 1,961,000,000 | ||||||||
SNR Wireless or SNR Wireless Holdco | SNR Licenses | |||||||||
Loss contingency terms | |||||||||
Percentage of bidding credit | 25% | ||||||||
Bidding credit value | $ 1,370,000,000 | ||||||||
Pending Litigation | TQ Delta | |||||||||
Loss contingency terms | |||||||||
Claim amount | $ 251,000,000 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Segment information | |||||||||||
Number of primary operating business segments | segment | 3 | ||||||||||
Total assets | $ 51,413,031 | $ 52,606,562 | $ 51,413,031 | $ 52,606,562 | |||||||
Total revenue | 3,722,013 | $ 3,704,516 | $ 3,911,577 | $ 3,956,982 | 4,043,373 | $ 4,095,451 | $ 4,209,963 | $ 4,330,620 | 15,295,088 | 16,679,407 | $ 17,881,106 |
Depreciation and amortization | 1,181,921 | 717,073 | 724,852 | ||||||||
Operating income (loss) | (312,694) | (41,806) | 206,334 | 323,423 | 375,342 | 427,029 | 692,935 | 550,360 | 175,257 | 2,045,666 | 3,203,035 |
Interest income | 105,416 | 42,776 | 11,338 | ||||||||
Interest expense, net of amounts capitalized | (38,881) | (22,781) | (16,174) | ||||||||
Other, net | (1,741,876) | 1,038,982 | 20,557 | ||||||||
Income tax (provision) benefit, net | 371,662 | (731,736) | (762,810) | ||||||||
Net income (loss) | (1,477,245) | $ (116,839) | $ 222,424 | $ 243,238 | 954,469 | $ 429,585 | $ 540,007 | $ 448,846 | (1,128,422) | 2,372,907 | 2,455,946 |
Purchases of property and equipment (including capitalized interest related to FCC authorizations) | 3,991,360 | 3,711,611 | 1,963,527 | ||||||||
Pay-TV subscriber and related revenue | |||||||||||
Segment information | |||||||||||
Total revenue | 11,385,961 | 12,360,601 | 12,787,485 | ||||||||
Wireless services and related revenue | |||||||||||
Segment information | |||||||||||
Total revenue | 3,337,240 | 3,653,909 | 4,142,883 | ||||||||
Pay-TV | |||||||||||
Segment information | |||||||||||
Purchases of property and equipment (including capitalized interest related to FCC authorizations) | 242,736 | 131,093 | 173,485 | ||||||||
Pay-TV | Equipment sales and other revenue | |||||||||||
Segment information | |||||||||||
Total revenue | 185,198 | 144,791 | 141,222 | ||||||||
Retail Wireless | Equipment sales and other revenue | |||||||||||
Segment information | |||||||||||
Total revenue | 355,132 | 481,220 | 754,322 | ||||||||
5 G Network Deployment | |||||||||||
Segment information | |||||||||||
Purchases of property and equipment (including capitalized interest related to FCC authorizations) | 3,748,624 | 3,580,518 | 1,790,042 | ||||||||
5 G Network Deployment | Equipment sales and other revenue | |||||||||||
Segment information | |||||||||||
Total revenue | 91,928 | 65,768 | 73,889 | ||||||||
All Other & Eliminations | |||||||||||
Segment information | |||||||||||
Total revenue | (60,371) | (26,882) | (18,695) | ||||||||
Operating segment | Pay-TV | |||||||||||
Segment information | |||||||||||
Total assets | 49,437,958 | 46,295,495 | 49,437,958 | 46,295,495 | |||||||
Total revenue | 11,571,159 | 12,505,392 | 12,928,707 | ||||||||
Depreciation and amortization | 381,292 | 428,471 | 538,836 | ||||||||
Operating income (loss) | 2,699,810 | 2,933,898 | 3,075,579 | ||||||||
Interest income | 2,604,599 | 1,872,645 | 1,346,502 | ||||||||
Interest expense, net of amounts capitalized | (1,290,099) | (1,036,829) | (819,510) | ||||||||
Other, net | 74,114 | 1,264 | (2,917) | ||||||||
Income tax (provision) benefit, net | (578,739) | (911,955) | (853,362) | ||||||||
Net income (loss) | 3,509,685 | 2,859,023 | 2,746,292 | ||||||||
Operating segment | Wireless | |||||||||||
Segment information | |||||||||||
Total revenue | 3,692,372 | 4,135,129 | 4,897,205 | ||||||||
Depreciation and amortization | 221,968 | 177,914 | 176,833 | ||||||||
Operating income (loss) | (643,184) | (77,264) | 343,785 | ||||||||
Interest income | 27 | 5 | 6 | ||||||||
Interest expense, net of amounts capitalized | (64,565) | (49,123) | (1,309) | ||||||||
Other, net | (1,793,387) | 1,012,147 | 26,695 | ||||||||
Income tax (provision) benefit, net | 201,091 | (219,720) | (95,982) | ||||||||
Net income (loss) | (2,300,018) | 666,045 | 273,195 | ||||||||
Operating segment | Retail Wireless | |||||||||||
Segment information | |||||||||||
Total assets | 777,957 | 2,798,561 | 777,957 | 2,798,561 | |||||||
Operating segment | 5 G Network Deployment | |||||||||||
Segment information | |||||||||||
Total assets | 46,793,378 | 43,462,443 | 46,793,378 | 43,462,443 | |||||||
Total revenue | 91,928 | 65,768 | 73,889 | ||||||||
Depreciation and amortization | 620,685 | 131,566 | 23,005 | ||||||||
Operating income (loss) | (1,881,369) | (810,968) | (216,329) | ||||||||
Interest income | 3,041 | ||||||||||
Interest expense, net of amounts capitalized | (1,186,468) | (766,703) | (530,525) | ||||||||
Other, net | (22,603) | 25,571 | (3,221) | ||||||||
Income tax (provision) benefit, net | 749,310 | 399,939 | 186,534 | ||||||||
Net income (loss) | (2,338,089) | (1,152,161) | (563,541) | ||||||||
Eliminations | All Other & Eliminations | |||||||||||
Segment information | |||||||||||
Total assets | $ (45,596,262) | $ (39,949,937) | (45,596,262) | (39,949,937) | |||||||
Total revenue | (60,371) | (26,882) | (18,695) | ||||||||
Depreciation and amortization | (42,024) | (20,878) | (13,822) | ||||||||
Interest income | (2,502,251) | (1,829,874) | (1,335,170) | ||||||||
Interest expense, net of amounts capitalized | $ 2,502,251 | $ 1,829,874 | $ 1,335,170 |
Revenue Recognition - Valuation
Revenue Recognition - Valuation And Qualifying Accounts Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition | |||
Balance at beginning of period | $ 44,431 | $ 38,534 | $ 72,278 |
Current period provision for expected credit losses | 67,302 | 79,664 | 54,083 |
Write-offs charged against allowance | (57,742) | (73,845) | (87,919) |
Acquisitions | 78 | 92 | |
Balance at end of period | $ 53,991 | $ 44,431 | $ 38,534 |
Revenue Recognition - Contract
Revenue Recognition - Contract Liability Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Contract liabilities | $ 586,867 | $ 672,757 |
Customer Contract | ||
Contract liabilities | $ 642,000 |
Revenue Recognition - Contrac_2
Revenue Recognition - Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition | |||
Balance at beginning of period | $ 381,401 | $ 458,006 | $ 456,255 |
Additions | 278,077 | 346,577 | 393,109 |
Amortization expense | (372,202) | (423,182) | (391,358) |
Balance at end of period | $ 287,276 | $ 381,401 | $ 458,006 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Data (Unaudited) | |||||||||||
Total revenue | $ 3,722,013 | $ 3,704,516 | $ 3,911,577 | $ 3,956,982 | $ 4,043,373 | $ 4,095,451 | $ 4,209,963 | $ 4,330,620 | $ 15,295,088 | $ 16,679,407 | $ 17,881,106 |
Operating income (loss) | (312,694) | (41,806) | 206,334 | 323,423 | 375,342 | 427,029 | 692,935 | 550,360 | 175,257 | 2,045,666 | 3,203,035 |
Net income (loss) | (1,477,245) | (116,839) | 222,424 | 243,238 | 954,469 | 429,585 | 540,007 | 448,846 | (1,128,422) | 2,372,907 | 2,455,946 |
Net income (loss) attributable to DISH Network | $ (1,496,066) | $ (139,185) | $ 200,323 | $ 222,705 | $ 935,520 | $ 412,230 | $ 522,832 | $ 432,651 | $ (1,212,223) | $ 2,303,233 | $ 2,410,642 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 01, 2022 | Aug. 19, 2016 | Oct. 02, 2012 | Jun. 30, 2021 item | Feb. 28, 2019 | Mar. 31, 2017 | Dec. 31, 2011 USD ($) | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Related Party Transactions | |||||||||||||||||||
Trade accounts receivable, net | $ 890,333 | $ 953,812 | $ 890,333 | $ 953,812 | |||||||||||||||
Trade accounts payable | 673,291 | 924,438 | 673,291 | 924,438 | |||||||||||||||
Revenue recorded | 3,722,013 | $ 3,704,516 | $ 3,911,577 | $ 3,956,982 | 4,043,373 | $ 4,095,451 | $ 4,209,963 | $ 4,330,620 | 15,295,088 | 16,679,407 | $ 17,881,106 | ||||||||
Cost of sales - equipment and other | 2,201,870 | 1,812,591 | 1,552,377 | ||||||||||||||||
Selling, general and administrative expenses | $ 2,521,062 | 2,545,593 | 2,214,936 | ||||||||||||||||
Professional Services Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Automatic Renewal Period | 1 year | ||||||||||||||||||
Hughes Broadband Distribution Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Term of renewal option | 1 year | ||||||||||||||||||
Hughes Broadband Distribution Agreement | Minimum | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Notice period for termination of agreement | 180 days | ||||||||||||||||||
Hughes Broadband Master Services Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Payments to third party by related party under extension option | $ 2,000 | 8,000 | 9,000 | ||||||||||||||||
Service revenue | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Revenue recorded | 14,721,682 | 16,014,284 | 16,929,860 | ||||||||||||||||
Satellite hosting operations and maintenance services [Member] | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Cost of sales - equipment and other | 5,000 | 5,000 | 6,000 | ||||||||||||||||
EchoStar | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Trade accounts receivable, net | 4,000 | 1,000 | 4,000 | 1,000 | |||||||||||||||
Trade accounts payable | 13,000 | $ 4,000 | 13,000 | 4,000 | |||||||||||||||
Equipment sales and other revenue | 3,000 | 2,000 | 2,000 | ||||||||||||||||
Cost of services | 8,000 | 12,000 | 15,000 | ||||||||||||||||
Selling, general and administrative expenses | $ 12,000 | 14,000 | 19,000 | ||||||||||||||||
EchoStar | El Paso Lease Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Number of consecutive three year renewal options | item | 4 | ||||||||||||||||||
Term of renewal option | 3 years | ||||||||||||||||||
EchoStar | Inverness Lease Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Number of renewal options | item | 4 | ||||||||||||||||||
Term of renewal option | 3 years | ||||||||||||||||||
EchoStar | Cheyenne Lease Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Number of renewal options | item | 12 | ||||||||||||||||||
Term of renewal option | 1 year | ||||||||||||||||||
Renewal notice period | 180 days | ||||||||||||||||||
EchoStar | Collocation And Antenna Space Agreements | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Number of renewal options | item | 4 | ||||||||||||||||||
Term of renewal option | 3 years | ||||||||||||||||||
Notice period for termination of agreement | 180 days | ||||||||||||||||||
EchoStar | 100 Inverness Lease Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Notice period for termination of agreement | 180 days | ||||||||||||||||||
EchoStar | Professional Services Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Automatic renewal period | 1 year | ||||||||||||||||||
Notice period for termination of agreement | 60 days | ||||||||||||||||||
Minimum notice period for termination of a specific service | 30 days | ||||||||||||||||||
EchoStar | Patent Cross-License Agreements | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Payments to third party | $ 10,000 | ||||||||||||||||||
EchoStar | Rovi License Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Agreement term | 10 years | ||||||||||||||||||
Amount paid to related party | $ 0 | ||||||||||||||||||
EchoStar | Tax Sharing Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Payment made for tax benefit received | 13,000 | 13,000 | |||||||||||||||||
Related Party Transaction, Remaining Payment Of Tax Benefit To Be Paid | 69,000 | 69,000 | |||||||||||||||||
Net amount of the allocated tax attributes payable | $ 82,000 | $ 82,000 | |||||||||||||||||
EchoStar | TT & C Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Number of renewal options | item | 3 | ||||||||||||||||||
Term of renewal option | 1 year | ||||||||||||||||||
EchoStar | Prior TT&C Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Term of renewal option | 1 year | ||||||||||||||||||
EchoStar | Service revenue | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Revenue recorded | $ 5,000 | 4,000 | 4,000 | ||||||||||||||||
HNS | Collocation And Antenna Space Agreements | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Number of renewal options | item | 4 | ||||||||||||||||||
Term of renewal option | 3 years | ||||||||||||||||||
Agreement term from commencement of service date | 5 years | ||||||||||||||||||
HNS | Collocation And Antenna Space Agreements | Maximum | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Notice period for termination of agreement | 120 days | ||||||||||||||||||
HNS | Collocation And Antenna Space Agreements | Minimum | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Notice period for termination of agreement | 90 days | ||||||||||||||||||
HNS | Hughes Broadband Master Services Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Notice period for termination of agreement | 90 days | ||||||||||||||||||
Broadband equipment purchased from related parties | $ 0 | $ 7,000 | $ 7,000 | ||||||||||||||||
Agreement term | 5 years | ||||||||||||||||||
Automatic Renewal Period | 1 year | ||||||||||||||||||
HNS | Hughes Equipment and Services Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Term of renewal option | 1 year | ||||||||||||||||||
Minimum required notice period for termination of agreement by related party | 180 days | ||||||||||||||||||
Agreement term | 5 years | ||||||||||||||||||
Minimum required notice period for termination by the reporting entity | 365 days | ||||||||||||||||||
Master Transaction Agreement | EchoStar | TT & C Agreement | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Notice period for termination of agreement | 12 months | ||||||||||||||||||
Master Transaction Agreement | EchoStar | TT & C Agreement | Minimum | |||||||||||||||||||
Related Party Transactions | |||||||||||||||||||
Notice period for termination of agreement | 90 days |
Related Party Transactions - Tr
Related Party Transactions - Transactions with NagraStar (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 28, 2017 | |
Related Party Transactions | ||||
Amounts payable to NagraStar | $ 673,291 | $ 924,438 | ||
NagraStar | ||||
Related Party Transactions | ||||
Ownership interest (as a percent) | 50% | |||
NagraStar | ||||
Related Party Transactions | ||||
Purchases from NagraStar | 37,068 | 43,416 | $ 45,944 | |
Amounts payable to NagraStar | 9,821 | 7,422 | ||
Commitments to NagraStar | $ 1,727 | $ 3,272 |
Subsequent Events (Details)
Subsequent Events (Details) item in Millions, $ in Millions | 1 Months Ended | |||||
Jan. 31, 2024 USD ($) | Mar. 15, 2024 USD ($) | Jan. 16, 2024 | Jan. 12, 2024 | Jan. 10, 2024 item | Dec. 31, 2023 | |
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 0.25% | |||||
0% Convertible Notes due 2025 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 0% | |||||
3 3/8% Convertible Notes due 2026 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 3.375% | |||||
5 7/8% Senior Notes due 2024 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 5.875% | |||||
2 3/8% Convertible Notes due 2024 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 2.375% | |||||
Intercompany Loan | ||||||
Subsequent Event [Line Items] | ||||||
Additional debt | $ 4,700 | |||||
Subsequent event | 0% Convertible Notes due 2025 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 0% | |||||
Subsequent event | 3 3/8% Convertible Notes due 2026 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 3.375% | |||||
Subsequent event | 2 3/8% Convertible Notes due 2024 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 2.375% | |||||
Debt repurchased | $ 951 | |||||
Subsequent event | Intercompany Loan | ||||||
Subsequent Event [Line Items] | ||||||
Additional debt | $ 4,700 | |||||
Subsequent event | EchoStar | 700 MHz Spectrum | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Subsequent Event [Line Items] | ||||||
Sales value | $ 1,000 | |||||
Subsequent event | EchoStar | 10.00% Senior Secured Notes due 2030 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 10% | |||||
Subsequent event | Dish DBS Issuer LLC | 5 7/8% Senior Notes due 2024 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 5.875% | |||||
Subsequent event | Dish DBS Issuer LLC | 7 3/4% Senior Notes due 2026 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 7.75% | |||||
Subsequent event | Dish DBS Issuer LLC | 7 3/8% Senior Notes due 2028 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 7.375% | |||||
Subsequent event | Dish DBS Issuer LLC | 5 1/8 % Senior Notes due 2029 | ||||||
Subsequent Event [Line Items] | ||||||
Interest rate (as a percent) | 5.125% | |||||
Subsequent event | DISH Network L.L.C. | ||||||
Subsequent Event [Line Items] | ||||||
Number of dish TV subscribers held | item | 3 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Non-Rule10b5-1 Arrangement Modified | false |
Rule10b5-1 Arrangement Modified | false |