Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 27, 2018 | Jun. 30, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | DISH DBS CORP | ||
Entity Central Index Key | 1,042,642 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,015 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 364,673 | $ 777,578 |
Marketable investment securities | 185,513 | 3,833 |
Trade accounts receivable, net of allowance for doubtful accounts of $15,056 and $17,440, respectively | 628,278 | 740,856 |
Inventory | 320,899 | 422,323 |
Other current assets | 189,480 | 112,745 |
Total current assets | 1,688,843 | 2,057,335 |
Noncurrent Assets: | ||
Restricted cash, cash equivalents and marketable investment securities | 72,407 | 82,360 |
Property and equipment, net | 1,632,161 | 1,890,368 |
FCC authorizations | 636,275 | 635,794 |
Other investment securities | 113,460 | 33,248 |
Other noncurrent assets, net | 236,041 | 243,112 |
Total noncurrent assets | 2,690,344 | 2,884,882 |
Total assets | 4,379,187 | 4,942,217 |
Current Liabilities: | ||
Trade accounts payable | 361,759 | 504,562 |
Deferred revenue and other | 693,595 | 751,397 |
Accrued programming | 1,571,273 | 1,542,036 |
Accrued interest | 236,509 | 265,224 |
Other accrued expenses (Note 11) | 759,639 | 459,239 |
Current portion of long-term debt and capital lease obligations | 1,064,474 | 938,832 |
Total current liabilities | 4,687,249 | 4,461,290 |
Long-Term Obligations, Net of Current Portion: | ||
Long-term debt and capital lease obligations, net of current portion | 12,046,173 | 13,274,536 |
Deferred tax liabilities | 485,099 | 776,903 |
Long-term deferred revenue and other long-term liabilities | 207,329 | 221,638 |
Total long-term obligations, net of current portion | 12,738,601 | 14,273,077 |
Total liabilities | 17,425,850 | 18,734,367 |
Commitments and Contingencies (Note 11) | ||
Stockholder's Equity (Deficit): | ||
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | ||
Additional paid-in capital | 1,116,848 | 1,097,606 |
Accumulated other comprehensive income (loss) | 935 | (116) |
Accumulated earnings (deficit) | (14,168,047) | (14,891,573) |
Total DISH DBS stockholder's equity (deficit) | (13,050,264) | (13,794,083) |
Noncontrolling interests | 3,601 | 1,933 |
Total stockholder's equity (deficit) | (13,046,663) | (13,792,150) |
Total liabilities and stockholder's equity (deficit) | $ 4,379,187 | $ 4,942,217 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Allowance for doubtful accounts on trade accounts receivable | $ 15,056 | $ 17,440 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 1,015 | 1,015 |
Common stock, shares outstanding | 1,015 | 1,015 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue: | |||
Subscriber-related revenue | $ 13,877,196 | $ 14,578,414 | $ 14,524,510 |
Equipment sales and other revenue | 130,315 | 177,525 | 271,518 |
Total revenue | 14,007,511 | 14,755,939 | 14,796,028 |
Costs and Expenses (exclusive of depreciation shown separately below - Note 6): | |||
Subscriber-related expenses | 8,692,676 | 8,639,893 | 8,550,226 |
Satellite and transmission expenses | 717,231 | 725,307 | 733,494 |
Cost of sales - equipment and other | 95,116 | 135,321 | 185,354 |
Subscriber acquisition costs: | |||
Cost of sales - subscriber promotion subsidies | 72,955 | 131,492 | 154,882 |
Other subscriber acquisition costs | 563,952 | 666,482 | 849,999 |
Subscriber acquisition advertising | 548,304 | 588,805 | 552,278 |
Total subscriber acquisition costs | 1,185,211 | 1,386,779 | 1,557,159 |
General and administrative expenses | 669,934 | 705,935 | 729,245 |
Litigation expense (Note 11) | 295,695 | 21,148 | 20,900 |
Depreciation and amortization (Note 6) | 741,772 | 832,435 | 870,996 |
Total costs and expenses | 12,397,635 | 12,446,818 | 12,647,374 |
Operating income (loss) | 1,609,876 | 2,309,121 | 2,148,654 |
Other Income (Expense): | |||
Interest income | 9,855 | 6,537 | 5,609 |
Interest expense, net of amounts capitalized | (865,181) | (825,765) | (862,302) |
Other, net | 88,511 | 32,805 | 17,816 |
Total other income (expense) | (766,815) | (786,423) | (838,877) |
Income (loss) before income taxes | 843,061 | 1,522,698 | 1,309,777 |
Income tax (provision) benefit, net | (117,616) | (557,586) | (474,134) |
Net income (loss) | 725,445 | 965,112 | 835,643 |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | 1,919 | 498 | 226 |
Net income (loss) attributable to DISH DBS | 723,526 | 964,614 | 835,417 |
Comprehensive Income (Loss): | |||
Net income (loss) | 725,445 | 965,112 | 835,643 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 1,027 | ||
Unrealized holding gains (losses) on available-for-sale securities | (33) | (1,488) | (23,468) |
Recognition of previously unrealized (gains) losses on available-for-sale securities included in net income (loss) | (18,357) | ||
Deferred income tax (expense) benefit, net | 57 | 7,690 | 7,124 |
Total other comprehensive income (loss), net of tax | 1,051 | (12,155) | (16,344) |
Comprehensive income (loss) | 726,496 | 952,957 | 819,299 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | 1,919 | 498 | 226 |
Comprehensive income (loss) attributable to DISH DBS | $ 724,577 | $ 952,459 | $ 819,073 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) - USD ($) $ in Thousands | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Noncontrolling Interest | Total |
Balance at Dec. 31, 2014 | $ 1,107,884 | $ 28,383 | $ (6,941,604) | $ 1,202 | $ (5,804,135) |
Increase (Decrease) in Stockholder's Equity | |||||
Dividends to DISH Orbital Corporation (Note 16) | (8,250,000) | (8,250,000) | |||
Non-cash, stock-based compensation | 19,199 | 19,199 | |||
Income tax (expense) benefit related to stock awards and other | 23,464 | 691 | 24,155 | ||
Change in unrealized holding gains (losses) on available-for-sale securities, net | (23,468) | (23,468) | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | 7,124 | 7,124 | |||
Payments made to parent of transferred businesses | (31,600) | (10) | (31,610) | ||
Net income (loss) attributable to noncontrolling interests | 226 | 226 | |||
Net income (loss) attributable to DISH DBS | 835,417 | 835,417 | |||
Balance at Dec. 31, 2015 | 1,118,947 | 12,039 | (14,356,187) | 2,109 | (13,223,092) |
Increase (Decrease) in Stockholder's Equity | |||||
Dividends to DISH Orbital Corporation (Note 16) | (1,500,000) | (1,500,000) | |||
Non-cash, stock-based compensation | 13,037 | 13,037 | |||
Change in unrealized holding gains (losses) on available-for-sale securities, net | (19,845) | (19,845) | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | 7,690 | 7,690 | |||
Payments made to parent of transferred businesses | (34,372) | (74) | (34,446) | ||
Net income (loss) attributable to noncontrolling interests | 498 | 498 | |||
Net income (loss) attributable to DISH DBS | 964,614 | 964,614 | |||
Other | (6) | (600) | (606) | ||
Balance at Dec. 31, 2016 | 1,097,606 | (116) | (14,891,573) | 1,933 | (13,792,150) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 29,941 | 29,941 | |||
Change in unrealized holding gains (losses) on available-for-sale securities, net | (33) | (33) | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | 57 | 57 | |||
Foreign currency translation | 1,027 | 1,027 | |||
Payments made to parent of transferred businesses | (7,372) | 274 | (7,098) | ||
Net income (loss) attributable to noncontrolling interests | 1,919 | 1,919 | |||
Net income (loss) attributable to DISH DBS | 723,526 | 723,526 | |||
Other | (3,327) | (525) | (3,852) | ||
Balance at Dec. 31, 2017 | $ 1,116,848 | $ 935 | $ (14,168,047) | $ 3,601 | $ (13,046,663) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operating Activities: | |||
Net income (loss) | $ 725,445 | $ 965,112 | $ 835,643 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 741,772 | 832,435 | 870,996 |
Realized and unrealized losses (gains) on investments | (85,550) | (32,509) | (14,449) |
Non-cash, stock-based compensation | 29,941 | 13,037 | 19,199 |
Deferred tax expense (benefit) | (297,012) | (84,970) | (86,770) |
Other, net | (3,431) | 67,366 | (11,967) |
Changes in current assets and current liabilities: | |||
Trade accounts receivable | 114,962 | 104,869 | 59,994 |
Allowance for doubtful accounts | (2,384) | (4,329) | (3,645) |
Inventory | 37,028 | (41,694) | 95,385 |
Other current assets | (76,735) | 12,323 | 16,824 |
Trade accounts payable | (142,803) | 50,497 | 55,546 |
Deferred revenue and other | (57,802) | (94,584) | (22,565) |
Accrued programming and other accrued expenses | 303,901 | 46,815 | 159,522 |
Net cash flows from operating activities | 1,287,332 | 1,834,368 | 1,973,713 |
Cash Flows From Investing Activities: | |||
(Purchases) Sales and maturities of marketable investment securities, net | (88,346) | 136,014 | 1,250,791 |
Purchases of property and equipment | (419,445) | (544,413) | (619,911) |
Purchases of strategic investments | (90,381) | ||
Other, net | 20,284 | 15,034 | (12,679) |
Net cash flows from investing activities | (577,888) | (393,365) | 618,201 |
Cash Flows From Financing Activities: | |||
Proceeds from issuance of senior notes | 2,000,000 | ||
Dividend to DISH Orbital Corporation | (1,500,000) | (8,250,000) | |
Redemption and repurchases of senior notes | (1,074,139) | (1,500,000) | (650,001) |
Payments made to parent of transferred businesses | (7,098) | (34,446) | (31,610) |
Repayment of long-term debt and capital lease obligations | (39,118) | (41,449) | (34,527) |
Debt issuance costs | (7,676) | ||
Other, net | (1,994) | (606) | 32,189 |
Net cash flows from financing activities | (1,122,349) | (1,084,177) | (8,933,949) |
Net increase (decrease) in cash and cash equivalents | (412,905) | 356,826 | (6,342,035) |
Cash and cash equivalents, beginning of period | 777,578 | 420,752 | 6,762,787 |
Cash and cash equivalents, end of period | $ 364,673 | $ 777,578 | $ 420,752 |
Organization and Business Activ
Organization and Business Activities | 12 Months Ended |
Dec. 31, 2017 | |
Organization and Business Activities | |
Organization and Business Activities | 1. Organization and Business Activitie Principal Business DISH DBS Corporation (which together with its subsidiaries is referred to as “DISH DBS,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context) is a holding company and an indirect, wholly-owned subsidiary of DISH Network Corporation (“DISH Network”). DISH DBS was formed under Colorado law in January 1996 and its common stock is held by DISH Orbital Corporation (“DOC”), a direct subsidiary of DISH Network. Our subsidiaries operate one business segment. 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, Federal Communications Commission (“FCC”) licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, customer service facilities, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). The Sling branded pay-TV services consist of, among other things, live, linear streaming over-the-top (“OTT”) Internet-based domestic, international and Latino video programming services (“Sling TV”). As of December 31, 2017, we had 13.242 million Pay-TV subscribers in the United States, including 11.030 million DISH TV subscribers and 2.212 million Sling TV subscribers. As a result of the completion of the Share Exchange with EchoStar, described below, 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. See Note 2 and Note 16 for further information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities 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, the cost method is used. 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. On February 28, 2017, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Share Exchange Agreement (the “Share Exchange Agreement”) that was previously entered into on January 31, 2017 (the “Share Exchange”). Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses, consisting primarily of the businesses that design, develop and distribute digital set-top boxes, provide satellite uplinking services and develop and support streaming video technology, as well as certain investments in joint ventures, spectrum licenses, real estate properties and EchoStar’s ten percent non-voting interest in Sling TV Holding L.L.C. (the “Transferred Businesses”), and in exchange, we transferred to EchoStar the 6,290,499 shares of preferred tracking stock issued by EchoStar (the “EchoStar Tracking Stock”) and 81.128 shares of preferred tracking stock issued by Hughes Satellite Systems Corporation, a subsidiary of EchoStar (the “HSSC Tracking Stock,” and together with the EchoStar Tracking Stock, collectively, the “Tracking Stock”), that tracked the residential retail satellite broadband business of Hughes Network Systems, LLC (“HNS”). In connection with the Share Exchange, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. See Note 11 for further information. As the Share Exchange was a transaction between entities that are under common control, accounting rules require that our Consolidated Financial Statements include the results of the Transferred Businesses for all periods presented, including periods prior to the completion of the Share Exchange. We initially recorded the Transferred Businesses at EchoStar’s historical cost basis. The difference between the historical cost basis of the Transferred Businesses and the net carrying value of the Tracking Stock is recorded in “Additional paid-in capital” on our Consolidated Balance Sheets. The results of the Transferred Businesses were prepared from separate records maintained by EchoStar for the periods prior to March 1, 2017, and may not necessarily be indicative of the conditions that would have existed, or the results of operations, if the Transferred Businesses had been operated on a combined basis with our subsidiaries. The primary impacts to our financial statement presentation are as follows: · Our investments in the EchoStar Tracking Stock and HSSC Tracking Stock are no longer included on our Consolidated Balance Sheets. · The assets and liabilities of the Transferred Businesses are recorded on our Consolidated Balance Sheets, and the results of operations of the Transferred Businesses, including sales of set-top boxes to third parties, are recorded on our Consolidated Statements of Operations and Comprehensive Income (Loss). · Sling TV Holding L.L.C., in which EchoStar held a 10% non-voting interest prior to the Share Exchange, is accounted for as though it was an indirect wholly-owned subsidiary of us. · Intercompany transactions between the Transferred Businesses and us, including, among others, the sale of set-top boxes and broadcast services from EchoStar to us, have been eliminated to the extent possible, including the margin EchoStar received on those sales. Our financial statements include the results of the Transferred Businesses as described above for all periods presented, including periods prior to the completion of the Share Exchange. The table below includes supplemental pro forma information for revenue and net income (loss) attributable to DISH DBS on our Consolidated Statements of Operations and Comprehensive Income (Loss) as if the results of the Transferred Businesses were included for the years ended December 31, 2016 and December 31, 2015, respectively. DISH DBS (as previously reported) Adjustments Relating to the Transferred Businesses DISH DBS (as currently reported) (In thousands) For the Year Ended December 31, 2016: Total revenue $ 14,637,043 $ 118,896 $ 14,755,939 Net income (loss) attributable to DISH DBS $ 916,528 $ 48,086 $ 964,614 For the Year Ended December 31, 2015: Total revenue $ 14,638,249 $ 157,779 $ 14,796,028 Net income (loss) attributable to DISH DBS $ 780,135 $ 55,282 $ 835,417 Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make 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 used in accounting for, among other things, allowances for doubtful accounts, 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 our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, 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, 2017 and 2016 may consist of money market funds, government bonds, corporate notes and commercial paper. The cost of these investments approximates their fair value. Marketable Investment Securities We currently classify all marketable investment securities as available-for-sale, except for investments which we account for as trading securities, discussed below. We adjust the carrying amount of our available-for-sale securities to fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Consolidated Balance Sheets. Declines in the fair value of a marketable investment security which are determined to be “other-than-temporary” are recognized on the Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment. Our trading securities are also 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). We evaluate our marketable investment securities portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other-than-temporary. This quarterly evaluation consists of reviewing, among other things: · the fair value of our marketable investment securities compared to the carrying amount, · the historical volatility of the price of each security, and · any market and company specific factors related to each security. Declines in the fair value of debt and equity investments below cost basis are generally accounted for as follows: Length of Time Investment Has Been In a Continuous Treatment of the Decline in Value Loss Position (absent specific factors to the contrary) Less than six months Generally, considered temporary. Six to nine months Evaluated on a case by case basis to determine whether any company or market-specific factors exist indicating that such decline is other-than-temporary. Greater than nine months Generally, considered other-than-temporary. The decline in value is recorded as a charge to earnings. Additionally, in situations where the fair value of a debt security is below its carrying amount, we consider the decline to be other-than-temporary and record a charge to earnings if any of the following factors apply: · we have the intent to sell the security, · it is more likely than not that we will be required to sell the security before maturity or recovery, or · we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. In general, we use the first in, first out method to determine the cost basis on sales of marketable investment securities. Trade Accounts Receivable Management estimates the amount of required allowances for the potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. However, past experience may not be indicative of future collections and therefore additional charges could be incurred in the future to reflect differences between estimated and actual collections. 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. Property and Equipment Property and equipment are stated at amortized cost less impairment losses, if any. The costs of satellites under construction, including interest and certain amounts prepaid under our satellite service agreements, are capitalized during the construction phase, assuming the eventual successful launch and in-orbit operation of the satellite. If a satellite were to fail during launch or 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 one 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. Costs related to the procurement and development of software for internal-use are capitalized and amortized using the straight-line method over the estimated useful life of the software. Impairment of Long-Lived 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. 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. Once 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. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The carrying amount of a long-lived asset or asset group is considered impaired when the anticipated undiscounted cash flows from such asset or asset group is less than its carrying amount. In that event, a loss is recorded in “Impairment of long-lived assets” 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. 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. See Note 6 for further information. 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, 2017. 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. Intangible assets that have finite lives are amortized over their estimated useful lives and tested for impairment as described above for long-lived assets. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our DBS 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 DBS 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 FCC 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 2017, 2016 and 2015, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS FCC licenses exceeds its carrying amount. In our assessment, we considered several qualitative 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 FCC licenses exceeds its carrying amount. As such, no further analysis was required. Other Investment Securities Generally, we account for our unconsolidated equity investments under either the equity method or cost method of accounting. Because these equity securities are generally not publicly traded, it is not practical to regularly estimate the fair value of the investments; however, these investments are subject to an evaluation for other-than-temporary impairment on a quarterly basis. This quarterly evaluation consists of reviewing, among other things, company business plans, current financial statements and key financial metrics, if available, for factors that may indicate an impairment of our investment. Such factors may include, but are not limited to, cash flow concerns, material litigation, violations of debt covenants and changes in business strategy. The fair value of these equity investments is not estimated unless there are identified changes in circumstances that may indicate an impairment exists and these changes are likely to have a significant adverse effect on the fair value of the investment. 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 “Subscriber-related expenses” 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 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 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. Accounting for Uncertainty in Income Taxes 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 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 · 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, 2017 and 2016, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) equals or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. 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, related 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 7 for the fair value of our long-term debt. Deferred Debt Issuance Costs Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 7 for further information. Revenue Recognition We recognize revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered. Revenue from our Pay-TV services is recognized when programming is broadcast to subscribers. Payments received from our Pay-TV subscribers in advance of the broadcast or service period are recorded as “Deferred revenue and other” on our Consolidated Balance Sheets until earned. Revenue from equipment sales generally is recognized upon shipment to customers. For certain of our promotions, subscribers are charged an upfront fee. A portion of these fees may be deferred and recognized over the estimated subscriber life for new subscribers or the estimated remaining life for existing subscribers ranging from four to five years. Revenue from advertising sales is recognized when the related services are performed. Subscriber fees for DISH TV equipment rental fees and other hardware related fees, including fees for DVRs, fees for equipment and additional outlet fees, advertising services and fees earned from our in-home service operations are recognized as revenue as earned. Generally, revenue from equipment sales, equipment upgrades and sales of streaming-capable devices for our Sling TV services are recognized upon shipment to customers. Certain of our existing and new subscriber promotions include programming discounts. Programming revenues are recorded as earned at the discounted monthly rate charged to the subscriber. We offer our customers the opportunity to download movies for a specific viewing period or permanently purchase a movie from our website. We recognize revenue when the movie is successfully downloaded by the customer, which, based on our current technology, occurs at the time the customer plays the movie for the first time. Subscriber-Related Expenses 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 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. “Subscriber-related expenses” on the Consolidated Statements of Operations and Comprehensive Income (Loss) principally include programming expenses, costs for Pay-TV services incurred in connection with our in-home service and call center operations, billing costs, refurbishment and repair costs related to DBS receiver systems, subscriber retention and other variable subscriber expenses. These costs are recognized as the services are performed or as incurred. Cost of Sales – Equipment and Other Costs include the cost of non-subsidized sales of DBS accessories and the cost of sales of digital receivers and related components to third-party pay-TV providers, both of which include freight and royalties. Costs are generally recognized as products are delivered to customers and the related revenue is recognized. Subscriber Acquisition Costs Subscriber acquisition costs on our Consolidated Statements of Operations and Comprehensive Income (Loss) consist of costs incurred to acquire new Pay-TV subscribers through independent third-party retailers, third-party marketing agreements and our direct sales distribution channel. Subscriber acquisition costs include the following line items from our Consolidated Statements of Operations and Comprehensive Income (Loss): · “Cost of sales - subscriber promotion subsidies” includes the cost of our DBS receiver systems sold to independent third-party retailers and other distributors of our equipment and DBS receiver systems sold directly by us to DISH TV subscribers. · “Other subscriber acquisition costs” includes net costs related to promotional incentives and costs related to installation and other promotional subsidies for our DISH TV services as well as our direct sales efforts and commissions for our Sling TV services. · “Subscriber acquisition advertising” includes advertising and marketing expenses related to the acquisition of new Pay-TV subscribers. Advertising costs are expensed as incurred. We characterize amounts paid to our independent third-party retailers as consideration for equipment installation services and for equipment buydowns (incentives and rebates) as a reduction of revenue. We expense payments for equipment installation services as “Other subscriber acquisition costs.” Our payments for equipment buydowns represent a partial or complete return of the independent third-party retailer’s purchase price and are, therefore, netted against the proceeds received from the independent third-party retailer. We report the net cost from our various sales promotions through our independent third-party retailer network as a component of “Other subscriber acquisition costs.” Research and Development Research and development costs are expensed as incurred. Research and development costs totaled $33 million, $41 million and $46 million for the years ended December 31, 2017, 2016 and 2015, respectively. Equipment Lease Programs 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. New Accounting Pronouncements Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), and has modified the standard thereafter. ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance. ASU 2014-09 also includes ASC 340-40 which codifies the guidance on other assets and deferred costs relating to contracts with customers. ASC 340-40 specifies the accounting treatment for costs an entity incurs to obtain and fulfill a contract to provide goods and services to customers. ASU 2014-09 became effective for us on January 1, 2018 and we elected to adopt the standard using the modified retrospective method. The impacts of the standard to us will include, among other things, the following: · We will recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, will meet the requirements to be capitalized, and expenses incurred under these programs will therefore be capitalized and amortized over the estimated subscriber life, whereas our current policy is to expense these costs as incurred. · We will change the timing of revenue recognition for certain nonrefundable upfront fees received from our residential video subscribers as these fees will be accounted for as implied performance obligations in the form of a material right to the customer related to the customer’s option to renew without having to pay an additional fee upon renewal. · Certain contracts related to our commercial, advertising, and equipment sales have one-time payments and deliverables that are significant to those contracts and for which the timing of revenue recognition will change. Note that while the one-time payments are significant to the contracts themselves, these contracts are not significant to our overall results of operations. We have concluded that for our residential video customers under a contract, the contract term under ASU 2014-09 is one month. Accordingly, while there will be changes in the way certain upfront fees and other items are recognized as discussed above, we do not believe at this time there will be a material change to our revenue recognition model for our residential video customers. Under the modified retrospective method we will recognize an asset for capitalized commission costs only for customers for which their initial contract was considered open as of January 1, 2018. We are currently in the process of applying the new guidance to all open contracts as of January 1, 2018 with existing customers and will recognize in beginning retained earnings an adjustment for the cumulative effect of the change, which we believe will be immaterial. We will provide additional disclosures for periods ending in 2018 comparing the results under previous guidance to those under the new standard. Recognition and Measurement of Financial Assets and Financial Liabilities . On January 5, 2016, the FASB issued ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) , which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We expect that the adoption of ASU 2016-01 will have an immaterial impact on our Consolidated Financial Statements and related disclosures. Statement of Cash Flows - Update. On August 26, 2016, the FASB issued 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). This update consists of eight provisions that provide guidance on the classification of certain cash receipts and cash payments. If practicable, this update should be applied using a retrospective transition method to each period presented. For the provisions that are impracticable to apply retrospectively, those provisions may be applied prospectively as of the earliest date practicable. This update will become effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We expect that the adoption of ASU 2016-15 will have an immaterial impact on our Consolidated Financial Statements and related disclosures. Statement of Cash Flows: Restricted Cash. On November 17, 2016, the FASB issued ASU 2016-18 Restricted Cash (“ASU 2016-18”) , which addresses the diversity where changes in restricted cash are classified on the cash flow statement. ASU 2016-18 requires that changes in restricted cash and cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We expect that the adoption of ASU 2016-18 will have an immaterial impact on our Consolidated Financial Statements and r |
Supplemental Data - Statements
Supplemental Data - Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Data - Statements of Cash Flows | |
Supplemental Data - Statements of Cash Flows | 3. Supplemental Data - Statements of Cash Flows The following table presents our supplemental cash flow and other non-cash data. For the Years Ended December 31, 2017 2016 2015 (In thousands) Cash paid for interest $ 878,772 $ 773,500 $ 852,679 Cash received for interest 9,855 2,936 5,609 Cash paid for income taxes 29,961 25,839 2,632 Cash paid for income taxes to DISH Network 408,265 551,693 558,220 Capitalized interest 481 — — Satellites and other assets financed under capital lease obligations 1,573 7,850 7,931 Our parent, DISH Network, provides a centralized system for the management of our cash and marketable investment securities as it does for all of its subsidiaries, among other reasons, to maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our Consolidated Balance Sheets is a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Consolidated Balance Sheets and managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each year presented on our Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities. |
Marketable Investment Securitie
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 4. 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, 2017 2016 (In thousands) Marketable investment securities: Current marketable investment securities: Trading $ 93,367 $ — Other 92,146 3,833 Total current marketable investment securities 185,513 3,833 Restricted marketable investment securities (1) 72,014 81,679 Total marketable investment securities 257,527 85,512 Restricted cash and cash equivalents (1) 393 681 Other investment securities: Other investment securities - equity method 113,460 25,098 Other investment securities - cost method — 8,150 Total other investment securities 113,460 33,248 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 371,380 $ 119,441 (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 consists of various debt and equity instruments, all of which are classified as available-for-sale, except as specified below. See Note 2 for further information. Current Marketable Investment Securities - Trading We had an investment in non-marketable preferred shares of a non-public company, which was received for no cash consideration and was accounted for as a cost method investment and included in “Other investment securities” on our Consolidated Balance Sheets. During the year ended December 31, 2017, our non-marketable preferred shares converted into common shares in conjunction with the issuer’s initial public offering, and accordingly we classified the new securities as “Marketable investment securities” on our Consolidated Balance Sheets. We have elected to account for these common shares as trading securities with changes in fair value reported each period as unrealized gains or losses in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). As of December 31, 2017, the fair value of our investment was approximately $93 million, and we recognized a pre-tax unrealized gain of approximately $85 million for the change in the fair value of the investment during the year ended December 31, 2017, which was recorded in “Other, net” within “Other Income (Expense).” Current Marketable Investment Securities - Other Our current 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. United States 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, 2017 and 2016, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit. Other Investment Securities We have strategic investments in certain debt and equity securities that are included in noncurrent “Other investment securities” on our Consolidated Balance Sheets and accounted for using the cost, equity and/or available-for-sale methods of accounting. Certain of our equity method investments are detailed below. NagraStar L.L.C. As a result of the completion of the Share Exchange on February 28, 2017, we own a 50% 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 . In November 2016, we, DIRECTV, LLC, a wholly-owned indirect subsidiary of AT&T Inc., and Cavendish Square Holding B.V., an affiliate of WPP plc, entered into a series of agreements to acquire Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. The transaction closed in January 2017. Our ability to realize value from our strategic investments in securities that are not publicly traded depends on 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. Unrealized Gains (Losses) on Marketable Investment Securities As of December 31, 2017 and 2016, we had accumulated net unrealized losses of less than $1 million. These amounts, net of related tax effect, were losses of less than $1 million. All of these amounts are included in “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit).” The components of our available-for-sale investments are summarized in the table below. As of December 31, 2017 2016 Marketable Marketable Investment Unrealized Investment Unrealized Securities Gains Losses Net Securities Gains Losses Net (In thousands) Debt securities (including restricted): U.S. Treasury and agency securities $ 74,788 $ 22 $ (141) $ (119) $ 81,982 $ 13 $ (132) $ (119) Commercial paper 24,407 — (2) (2) — — — — Corporate securities 63,809 — (29) (29) 3,530 3 — 3 Other 1,156 — — — — — — — Total $ 164,160 $ 22 $ (172) $ (150) $ 85,512 $ 16 $ (132) $ (116) As of December 31, 2017, restricted and non-restricted marketable investment securities included debt securities of $164 million 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. Marketable Investment Securities in a Loss Position The following table reflects the length of time that the individual securities, accounted for as available-for-sale, have been in an unrealized loss position, aggregated by investment category. As of December 31, 2017, the unrealized losses related to our investments in debt securities primarily represented investments in United States treasury and agency securities , commercial paper, and corporate securities . We have the ability to hold and do not intend to sell our investments in these debt securities before they recover or mature, and it is more likely than not that we will hold these investments until that time. In addition, we are not aware of any specific factors indicating that the underlying issuers of these debt securities would not be able to pay interest as it becomes due or repay the principal at maturity. Therefore, we believe that these changes in the estimated fair values of these marketable investment securities are related to temporary market fluctuations. As of December 31, 2017 2016 Fair Unrealized Fair Unrealized Value Loss Value Loss (In thousands) Debt Securities: Less than 12 months $ 109,853 $ (53) $ 51,796 $ (131) 12 months or more 34,203 (119) 1,410 (1) Total $ 144,056 $ (172) $ 53,206 $ (132) Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of December 31, 2017 2016 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 315,030 $ 140 $ 314,890 $ — $ 702,331 $ 4,126 $ 698,205 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 74,788 $ 74,788 $ — $ — $ 81,982 $ 81,982 $ — $ — Commercial paper 24,407 — 24,407 — — — — — Corporate securities 63,809 — 63,809 — 3,530 — 3,530 — Other 1,156 — 1,156 — — — — — Equity Securities 93,367 93,367 — — — — — — Total $ 257,527 $ 168,155 $ 89,372 $ — $ 85,512 $ 81,982 $ 3,530 $ — During the years ended December 31, 2017 and 2016, we had no transfers in or out of Level 1 and Level 2 fair value measurements. Gains and Losses on Sales and Changes in Carrying Amounts of Investments “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: 2017 2016 2015 (In thousands) Marketable investment securities - gains (losses) on sales/exchanges $ 1,803 $ 32,509 $ 14,449 Marketable investment securities - unrealized gains (losses) on trading securities 85,217 — — Costs related to early redemption of debt (1,470) — — Equity in earnings 2,163 2,508 4,372 Other 798 (2,212) (1,005) Total $ 88,511 $ 32,805 $ 17,816 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2017 | |
Inventory | |
Inventory | 5. Inventory Inventory consisted of the following: As of December 31, 2017 2016 (In thousands) Finished goods $ 248,233 $ 282,569 Work-in-process and service repairs 54,445 129,486 Raw materials 18,221 10,268 Total inventory $ 320,899 $ 422,323 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property and Equipment | |
Property and Equipment | 6. Property and Equipment and Intangible Assets Property and Equipment Property and equipment consisted of the following: Depreciable Life As of December 31, (In Years) 2017 2016 (In thousands) Equipment leased to customers 2-5 $ 2,264,653 $ 2,630,269 EchoStar XV 15 277,658 277,658 Satellites acquired under capital lease agreements 10-15 499,819 499,819 Furniture, fixtures, equipment and other 1-10 1,680,492 1,541,838 Buildings and improvements 1-40 292,191 287,612 Land - 14,057 14,057 Construction in progress - 92,946 87,887 Total property and equipment 5,121,816 5,339,140 Accumulated depreciation (3,489,655) (3,448,772) Property and equipment, net $ 1,632,161 $ 1,890,368 Depreciation and amortization expense consisted of the following: For the Years Ended December 31, 2017 2016 2015 (In thousands) Equipment leased to customers $ 539,434 $ 643,114 $ 679,543 Satellites 61,045 61,045 61,045 Buildings, furniture, fixtures, equipment and other 141,293 128,276 130,408 Total depreciation and amortization $ 741,772 $ 832,435 $ 870,996 Cost of sales and operating expense categories included in our accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation expense related to satellites or equipment leased to customers. Satellites Pay-TV Satellites . We currently utilize 12 satellites in geostationary orbit approximately 22,300 miles above the equator, one of which we own and depreciate over its estimated useful life. We currently utilize certain capacity on eight satellites that we lease from EchoStar and one satellite that we lease from DISH Network, which are accounted for as operating leases. We also lease two satellites from third parties, which are accounted for as capital leases and are depreciated over the shorter of the economic life or the term of the satellite agreement. As of December 31, 2017, our pay-TV satellite fleet consisted of the following: Degree Estimated Useful Life Launch Orbital (Years) / Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 15 Leased from DISH Network (1): EchoStar XVIII June 2016 61.5 Month to month Leased from EchoStar (2): EchoStar VII (3) February 2002 119 June 2018 EchoStar IX August 2003 121 Month to month EchoStar X (3) February 2006 110 February 2021 EchoStar XI (3) July 2008 110 September 2021 EchoStar XIV (3) March 2010 119 February 2023 EchoStar XVI (4) November 2012 61.5 January 2023 Nimiq 5 September 2009 72.7 September 2019 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2019 (1) See Note 16 for further information on our Related Party Transactions with DISH Network. (2) See Note 16 for further information on our Related Party Transactions with EchoStar. (3) We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite. (4) We have the option to renew this lease for an additional five-year period. 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 “Impairment of Long-Lived Assets” 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 use, other than certain satellites leased from third parties, and therefore, we will bear the risk associated with any uninsured launch or in-orbit satellite failures. Recent developments with respect to certain of our satellites are discussed below. Leased Satellites EchoStar X. In December 2017, EchoStar informed us that EchoStar X experienced anomalies resulting in the loss of some electrical power available from its solar arrays. As a result, EchoStar X is currently operating at 75% of its designed satellite capacity. Pursuant to our satellite lease agreement with EchoStar, we are entitled to a reduction in our monthly recurring lease payments in the event of a partial loss of satellite capacity or complete failure of the satellite. This satellite is currently still in service at the 110 degree orbital location. There can be no assurance that future anomalies will not further impact the commercial operation of EchoStar X. Based on the redundancy designed within our satellite fleet, we generally have in-orbit satellite capacity sufficient to transmit our existing channels and some backup capacity to recover the transmission of certain critical programming. Intangible Assets As of December 31, 2017 and 2016, our identifiable intangibles subject to amortization consisted of the following: As of December 31, 2017 December 31, 2016 Intangible Accumulated Intangible Accumulated Assets Amortization Assets Amortization (In thousands) Technology-based $ 58,162 $ (47,746) $ 58,162 $ (44,289) Trademarks 35,010 (23,426) 46,140 (31,063) Contract-based 4,500 (4,500) 4,500 (4,500) Customer relationships 23,632 (23,632) 23,632 (23,632) Total $ 121,304 $ (99,304) $ 132,434 $ (103,484) These identifiable intangibles are included in “Other noncurrent 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 five to 20 years. Amortization was $7 million, $8 million and $8 million for the years ended December 31, 2017, 2016 and 2015, respectively. Estimated future amortization of our identifiable intangible assets as of December 31, 2017 is as follows (in thousands): For the Years Ended December 31, 2018 $ 7,138 2019 5,792 2020 3,285 2021 835 2022 666 Thereafter 4,284 Total $ 22,000 As of December 31, 2017 and 2016, we had goodwill of $6 million, which is included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. FCC Authorizations As of December 31, 2017 and 2016, our FCC Authorizations consisted of the following: As of December 31, 2017 2016 (In thousands) DBS Licenses $ 611,794 $ 611,794 MVDDS Licenses 24,000 24,000 Capitalized Interest 481 — Total $ 636,275 $ 635,794 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Long-Term Debt | |
Long-Term Debt | 7. Long-Term Debt and Capital 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, 2017 and 2016: As of December 31, 2017 2016 Carrying Fair Value Carrying Fair Value (In thousands) 4 5/8% Senior Notes due 2017 (1) $ — $ — $ 900,000 $ 913,887 4 1/4% Senior Notes due 2018 (2) 1,025,861 1,031,596 1,200,000 1,228,464 7 7/8% Senior Notes due 2019 1,400,000 1,501,206 1,400,000 1,559,698 5 1/8% Senior Notes due 2020 1,100,000 1,127,588 1,100,000 1,141,866 6 3/4% Senior Notes due 2021 2,000,000 2,120,480 2,000,000 2,178,880 5 7/8% Senior Notes due 2022 2,000,000 2,014,140 2,000,000 2,114,780 5 % Senior Notes due 2023 1,500,000 1,432,335 1,500,000 1,500,315 5 7/8% Senior Notes due 2024 2,000,000 1,952,220 2,000,000 2,064,000 7 3/4% Senior Notes due 2026 2,000,000 2,118,400 2,000,000 2,270,900 Other notes payable 11,509 11,509 12,606 12,606 Subtotal 13,037,370 $ 13,309,474 14,112,606 $ 14,985,396 Unamortized deferred financing costs and debt discounts, net (31,041) (40,123) Capital lease obligations (3) 104,318 140,885 Total long-term debt and capital lease obligations (including current portion) $ 13,110,647 $ 14,213,368 (1) On July 17, 2017, we redeemed the principal balance of our 4 5/8% Senior Notes due 2017. (2) During 2017, we repurchased $174 million of our 4 1/4% Senior Notes due 2018 in open market trades. The remaining balance of $1.026 billion matures on April 1, 2018 and is included in “Current portion of long-term debt and capital lease obligations” on our Consolidated Balance Sheets as of December 31, 2017. (3) Disclosure regarding fair value of capital 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). Our Senior Notes are: · general unsecured senior obligations of 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. 4 1/4% Senior Notes due 2018 On April 5, 2013, we issued $1.2 billion aggregate principal amount of our five-year 4 1/4% Senior Notes due April 1, 2018. During 2017, we repurchased $174 million of our 4 1/4% Senior Notes due 2018 in open market trades. The remaining balance of $1.026 billion matures on April 1, 2018. Interest accrues at an annual rate of 4 1/4% and is payable semi-annually in cash, in arrears on April 1 and October 1 of each year. The 4 1/4% 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 7/8% Senior Notes due 2019 On August 17, 2009 and October 5, 2009, we issued $1.0 billion and $400 million, respectively, aggregate principal amount of our ten-year 7 7/8% Senior Notes due September 1, 2019. Interest accrues at an annual rate of 7 7/8% and is payable semi-annually in cash, in arrears on March 1 and September 1 of each year. The 7 7/8% 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. 5 1/8% Senior Notes due 2020 On April 5, 2013, we issued $1.1 billion aggregate principal amount of our seven-year 5 1/8% Senior Notes due May 1, 2020. Interest accrues at an annual rate of 5 1/8% and is payable semi-annually in cash, in arrears on May 1 and November 1 of each year. 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. 6 3/4% Senior Notes due 2021 On May 5, 2011, we issued $2.0 billion aggregate principal amount of our ten-year 6 3/4% Senior Notes due June 1, 2021. Interest accrues at an annual rate of 6 3/4% and is payable semi-annually in cash, in arrears on June 1 and December 1 of each year. The 6 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. 5 7/8% Senior Notes due 2022 On May 16, 2012 and July 26, 2012, we issued $1.0 billion and $1.0 billion, respectively, aggregate principal amount of our ten-year 5 7/8% Senior Notes due July 15, 2022. Interest accrues at an annual rate of 5 7/8% and is payable semi-annually in cash, in arrears on January 15 and July 15 of each year. The 5 7/8% Senior Notes due 2022 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. 5% Senior Notes due 2023 On December 27, 2012, we issued $1.5 billion aggregate principal amount of our 5% Senior Notes due March 15, 2023. Interest accrues at an annual rate of 5% and is payable semi-annually in cash, in arrears on March 15 and September 15 of each year. The 5% 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. 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% and is payable semi-annually in cash, in arrears on January 1 and July 1 of each year. 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. Prior to July 1, 2019, we may also redeem up to 35% of the 7 3/4% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. Interest on Long-Term Debt Annual Semi-Annual Debt Service Payment Dates Requirements (In thousands) 4 1/4% Senior Notes due 2018 April 1 and October 1 $ 51,000 7 7/8% Senior Notes due 2019 March 1 and September 1 $ 110,250 5 1/8% Senior Notes due 2020 May 1 and November 1 $ 56,375 6 3/4% Senior Notes due 2021 June 1 and December 1 $ 135,000 5 7/8% Senior Notes due 2022 January 15 and July 15 $ 117,500 5% Senior Notes due 2023 March 15 and September 15 $ 75,000 5 7/8% Senior Notes due 2024 May 15 and November 15 $ 117,500 7 3/4% Senior Notes due 2026 January 1 and July 1 $ 155,000 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 Capital Lease Obligations Other long-term debt and capital lease obligations consisted of the following: As of December 31, 2017 2016 (In thousands) Satellites and other capital lease obligations $ 104,318 $ 140,885 Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6.0% 11,509 12,606 Total 115,827 153,491 Less: current portion (38,613) (38,832) Other long-term debt and capital lease obligations, net of current portion $ 77,214 $ 114,659 Capital Lease Obligations Anik F3. Anik F3, an FSS satellite, was launched and commenced commercial operation in April 2007. This satellite is accounted for as a capital lease and depreciated over the term of the satellite service agreement. We have leased 100% of the Ku-band capacity on Anik F3 for a period of 15 years. Ciel II . Ciel II, a Canadian DBS satellite, was launched in December 2008 and commenced commercial operation in February 2009. This satellite is accounted for as a capital lease and depreciated over the term of the satellite service agreement. We have leased 100% of the capacity on Ciel II for an initial 10 year term, which expires in January 2019. As of December 31, 2017 and 2016, we had $500 million capitalized for the estimated fair value of satellites acquired under capital leases included in “Property and equipment, net,” with related accumulated depreciation of $407 million and $365 million, respectively. On our Consolidated Statements of Operations and Comprehensive Income (Loss), we recognized $42 million in depreciation expense on satellites acquired under capital lease agreements during each of the years ended December 31, 2017, 2016 and 2015. Future minimum lease payments under the capital lease obligations, together with the present value of the net minimum lease payments as of December 31, 2017 are as follows (in thousands): For the Years Ended December 31, 2018 $ 77,141 2019 50,719 2020 48,000 2021 48,000 2022 16,000 Thereafter — Total minimum lease payments 239,860 Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments (120,196) Net minimum lease payments 119,664 Less: Amount representing interest (15,346) Present value of net minimum lease payments 104,318 Less: Current portion (37,450) Long-term portion of capital lease obligations $ 66,868 The summary of future maturities of our outstanding long-term debt as of December 31, 2017 is included in the commitments table in Note 11. |
Income Taxes and Accounting for
Income Taxes and Accounting for Uncertainty in Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Taxes and Accounting for Uncertainty in Income Taxes | |
Income Taxes and Accounting for Uncertainty in Income Taxes | 8. Income Taxes and Accounting for Uncertainty in Income Taxes Income Taxes DISH DBS and its domestic subsidiaries join with DISH Network in filing U.S. consolidated federal income tax returns and, in some states, combined or consolidated returns. The federal and state income tax provisions or benefits recorded by DISH DBS are generally those that would have been recorded if DISH DBS and its domestic subsidiaries had filed returns as a consolidated group independent of DISH Network. Cash is due and paid to DISH Network based on amounts that would be payable based on DISH DBS consolidated or combined group filings. Amounts are receivable from DISH Network on a basis similar to when they would be receivable from the IRS or other state taxing authorities. The amounts paid to DISH Network during the years ended December 31, 2017, 2016 and 2015 were $408 million, $552 million and $558 million, respectively. 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. As of December 31, 2017, we had no net operating loss carryforwards (“NOLs”) for federal and state income tax purposes. In addition, there are $10 million of tax benefits related to credit carryforwards which are partially offset by a valuation allowance. Portions of the credit carryforwards may begin to lapse in 2018. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”) was enacted making significant changes to the Internal Revenue Code. Such changes include, but are not limited to, a reduction in the corporate tax rate and certain limitations on corporate deductions (e.g., a limitation on the interest expense deduction available to companies). The Tax Reform Act, among other things, lowered the federal statutory corporate tax rate effective for us in future periods from 35% to 21%. Consequently, we remeasured our deferred tax assets and liabilities as of December 31, 2017 which positively impacted our “Income tax (provision) benefit, net” by approximately $291 million. The components of the (benefit from) provision for income taxes were as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Current (benefit) provision: Federal $ 356,759 $ 567,850 $ 528,005 State 54,133 64,453 35,988 Foreign 3,736 10,253 (3,089) Total current (benefit) provision 414,628 642,556 560,904 Deferred (benefit) provision: Federal (308,028) (83,638) (92,415) State 11,954 (837) 7,050 Increase (decrease) in valuation allowance (938) (495) (1,405) Total deferred (benefit) provision (297,012) (84,970) (86,770) Total (benefit) provision $ 117,616 $ 557,586 $ 474,134 Our $843 million of “Income (loss) before income taxes” on our Consolidated Statements of Operations and Comprehensive Income (Loss) included a loss of $1 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, 2017 2016 2015 % of pre-tax income/(loss) Statutory rate 35.0 35.0 35.0 State income taxes, net of federal benefit 4.2 2.9 2.5 Reversal of uncertain tax positions (0.2) (1.3) (0.7) Tax Reform Act (1) (34.5) — — Nondeductible/Nontaxable items (2) 11.5 — — Other, net (2.0) — (0.6) Total (benefit) provision for income taxes 14.0 36.6 36.2 (1) On December 22, 2017, the Tax Reform Act was enacted, which, among other things, lowered the federal statutory corporate tax rate effective for us in future periods from 35% to 21%. Consequently, we remeasured our deferred tax assets and liabilities as of December 31, 2017 which positively impacted our “Income tax (provision) benefit, net” by approximately $291 million. (2) During the year ended December 31, 2017, we recorded $255 million of “Litigation expense” related to the FTC Action on our Consolidated Statements of Operations and Comprehensive Income (Loss). Any eventual payments made with respect to the FTC Action may not be deductible for tax purposes, which had a negative impact on our effective tax rate for the year ended December 31, 2017. The tax deductibility of any eventual payments made with respect to the FTC Action may change, based upon, among other things, further developments in the FTC Action, including final adjudication of the FTC Action. See Note 11 in the Notes to our Consolidated Financial Statements in this Annual Report on Form 10-K for further information. 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, 2017 2016 (In thousands) Deferred tax assets: NOL, credit and other carryforwards $ 11,197 $ 12,022 Accrued expenses 35,776 51,901 Stock-based compensation 14,875 17,659 Deferred revenue 15,236 19,064 Total deferred tax assets 77,084 100,646 Valuation allowance (5,887) (6,825) Deferred tax asset after valuation allowance 71,197 93,821 Deferred tax liabilities: Depreciation (394,528) (652,399) FCC authorizations and other intangible amortization (123,963) (200,285) Bases difference in partnerships and other investments (32,199) — Other liabilities (5,606) (18,040) Total deferred tax liabilities (556,296) (870,724) Net deferred tax asset (liability) $ (485,099) $ (776,903) 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 2005 due to the carryover of previously incurred NOLs. We are currently under a federal income tax examination for fiscal years 2008 through 2012. 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 2017 2016 2015 (In thousands) Balance as of beginning of period $ 201,693 $ 203,053 $ 208,328 Additions based on tax positions related to the current year 684 39,752 12,502 Additions based on tax positions related to prior years 4,593 395 14,593 Reductions based on tax positions related to prior years (1,061) (34,761) (24,905) Reductions based on tax positions related to settlements with taxing authorities (1,634) (3,628) (2,648) Reductions based on tax positions related to the lapse of the statute of limitations (3,113) (3,118) (4,817) Balance as of end of period $ 201,162 $ 201,693 $ 203,053 We have $201 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 twelve 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, 2017, 2016 and 2015, we recorded $4 million, $5 million and $3 million in net interest and penalty expense to earnings, respectively. Accrued interest and penalties were $24 million and $20 million at December 31, 2017 and 2016, respectively. The above table excludes these amounts. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans | |
Employee Benefit Plans | 9. Employee Benefit Plans Employee Stock Purchase Plan Our employees participate in the DISH Network employee stock purchase plan (the “ESPP”), in which DISH Network is authorized to issue up to 2.8 million shares of Class A common stock. At December 31, 2017, DISH Network had 0.4 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 DISH Network 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 DISH Network’s capital stock under all of DISH Network’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 DISH Network’s Class A common stock on the last business day of each calendar quarter in which such shares of DISH Network’s Class A common stock are deemed sold to an employee under the ESPP. During the years ended December 31, 2017, 2016 and 2015, employee purchases of DISH Network’s Class A common stock through the ESPP totaled approximately 0.3 million, 0.2 million and 0.1 million shares, respectively. 401(k) Employee Savings Plan DISH Network sponsors a 401(k) Employee Savings Plan (the “401(k) Plan”) for eligible employees. Voluntary employee contributions to the 401(k) Plan may be matched 50% by DISH Network, subject to a maximum annual contribution of $2,500 per employee. Forfeitures of unvested participant balances which are retained by the 401(k) Plan may be used to fund matching and discretionary contributions. DISH Network’s board of directors may also authorize an annual discretionary contribution to the 401(k) Plan with authorization by our Board of Directors, 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 DISH Network’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 2017 2016 2015 (In thousands) Total matching contributions, net of forfeitures $ 7,070 $ 6,546 $ 6,145 Discretionary stock contributions, net of forfeitures $ 27,969 $ 23,158 $ 25,261 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation | |
Stock-Based Compensation | 10. Stock-Based Compensation Stock Incentive Plans DISH Network maintains stock incentive plans to attract and retain officers, directors and key employees. Our employees participate in the DISH Network stock incentive plans. Stock awards under these plans include both performance and non-performance based stock incentives. As of December 31, 2017, there were outstanding under these plans stock options to acquire 8.8 million shares of DISH Network’s Class A common stock and 2.5 million restricted stock units and awards associated with our employees. Stock options granted on or prior to December 31, 2017 were granted with exercise prices equal to or greater than the market value of DISH Network Class A common stock at the date of grant and with a maximum term of approximately ten years. While historically DISH Network has issued stock awards subject to vesting, typically at the rate of 20% per year, some stock awards have been granted with immediate vesting and other stock awards vest only upon the achievement of certain DISH Network-specific subscriber, operational and/or financial goals. As of December 31, 2017, DISH Network had 65.0 million shares of its Class A common stock available for future grant under its stock incentive plans. Exercise prices for DISH Network stock options outstanding and exercisable associated with our employees as of December 31, 2017 were as follows: Options Outstanding Options Exercisable Number Weighted- Weighted- Number Weighted- Weighted- $ — - $ 10.00 133,400 1.15 $ 6.33 133,400 1.15 $ 6.33 $ 10.01 - $ 20.00 1,232,537 2.49 $ 15.37 32,537 2.25 $ 15.13 $ 20.01 - $ 30.00 1,402,183 3.69 $ 27.13 862,183 3.65 $ 26.65 $ 30.01 - $ 40.00 1,219,586 4.96 $ 36.19 257,886 4.75 $ 35.06 $ 40.01 - $ 50.00 360,800 8.00 $ 46.21 67,600 7.39 $ 45.89 $ 50.01 - $ 60.00 2,910,878 8.40 $ 57.55 228,152 6.51 $ 57.16 $ 60.01 - $ 70.00 1,568,350 8.32 $ 64.26 170,850 6.37 $ 66.26 $ 70.01 - $ 80.00 20,000 2.00 $ 72.89 20,000 2.00 $ 72.89 $ — - $ 80.00 8,847,734 6.20 $ 43.90 1,772,608 4.35 $ 35.13 Stock Award Activity DISH Network stock option activity associated with our employees was as follows: For the Years Ended December 31, 2017 2016 2015 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period 7,913,733 $ 36.22 6,807,169 $ 31.17 10,214,344 $ 25.29 Granted 3,468,626 $ 59.66 1,901,000 $ 54.41 452,000 $ 69.11 Exercised (505,125) $ 28.73 (403,834) $ 23.26 (1,731,975) $ 16.26 Forfeited and cancelled (2,029,500) $ 44.64 (390,602) $ 50.28 (2,127,200) $ 23.12 Total options outstanding, end of period 8,847,734 $ 43.90 7,913,733 $ 36.22 6,807,169 $ 31.17 Performance-based options outstanding, 5,490,626 $ 42.81 4,312,000 $ 31.39 3,904,500 $ 28.03 Exercisable at end of period 1,772,608 $ 35.13 1,883,533 $ 29.98 1,927,069 $ 26.87 (1) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2008 LTIP, 2013 LTIP, 2017 LTIP and Other Employee Performance Awards below. We realized tax benefits from stock awards exercised as follows: For the Years Ended December 31, 2017 2016 2015 (In thousands) Tax benefit from stock awards exercised $ 9,347 $ 5,006 $ 33,716 Based on the closing market price of DISH Network Class A common stock on December 31, 2017, the aggregate intrinsic value of stock options associated with our employees was as follows: As of December 31, 2017 Options Options Outstanding Exercisable (In thousands) Aggregate intrinsic value $ 88,990 $ 28,175 DISH Network restricted stock unit activity associated with our employees was as follows: For the Years Ended December 31, 2017 2016 2015 Restricted Weighted- Average Grant Date Fair Value Restricted Weighted- Average Grant Date Fair Value Restricted Weighted- Average Grant Date Fair Value Total restricted stock units/awards outstanding, beginning 1,336,000 $ 32.11 1,382,250 $ 32.01 1,731,332 $ 32.60 Granted 1,871,375 $ 63.87 67,060 $ 56.35 62,530 $ 68.79 Vested (14,845) $ 62.58 (60) $ 49.15 (125,280) $ 63.92 Forfeited and cancelled (707,810) $ 48.59 (113,250) $ 45.12 (286,332) $ 29.67 Total restricted stock units/awards outstanding, end 2,484,720 $ 51.16 1,336,000 $ 32.11 1,382,250 $ 32.01 Restricted Performance Units/Awards outstanding, 2,435,500 $ 50.91 1,336,000 $ 32.11 1,382,250 $ 32.01 (1) These stock options are included in the caption “Total restricted stock units/awards outstanding, end of period.” See discussion of the 2008 LTIP, 2013 LTIP, 2017 LTIP and Other Employee Performance Awards below. Long-Term Performance-Based Plans 2008 LTIP. During 2008, DISH Network adopted a long-term, performance-based stock incentive plan (the “2008 LTIP”). The 2008 LTIP provided stock options and restricted stock units, either alone or in combination, which vested based on DISH Network-specific subscriber and financial goals. As of June 30, 2013, 100% of the eligible 2008 LTIP awards had vested. 2013 LTIP. During 2013, DISH Network 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 DISH Network-specific subscriber and financial goals. Exercise of the stock awards is contingent on achieving these goals by September 30, 2022. Although no awards vest until DISH Network attains the performance goals, compensation related to the 2013 LTIP will be recorded based on DISH Network’s assessment of the probability of meeting the remaining goals. If the remaining goals 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 goal. During the years ended December 31, 2015, 2014, 2013, DISH Network determined that 30%, 10% and 20%, respectively, of the 2013 LTIP performance goals were probable of achievement. During the years ended December 31, 2017 and 2016, no additional 2013 LTIP performance goals were deemed probable of achievement. As a result, we recorded non-cash, stock-based compensation expense for the years ended December 31, 2017, 2016 and 2015, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2017, approximately 20% of the 2013 LTIP awards had vested. 2017 LTIP. On December 2, 2016, DISH Network adopted a long-term, performance-based stock incentive plan (the “2017 LTIP”). The 2017 LTIP provides stock options, which vest based on DISH Network-specific subscriber and financial goals. Awards were initially granted under the 2017 LTIP as of January 1, 2017. Exercise of the stock awards is contingent on achieving these goals by December 31, 2020. Although no awards vest until DISH Network attains the performance goals, compensation related to the 2017 LTIP will be recorded based on DISH Network’s assessment of the probability of meeting the performance goals. If the performance goals 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 goal. During the year ended December 31, 2017, DISH Network determined that 75% of the 2017 LTIP performance goals were probable of achievement. As a result, we recorded non-cash, stock-based compensation expense for the year ended December 31, 2017, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized. Other Employee Performance Awards. In addition to the above long-term, performance stock incentive plans, DISH Network has other stock awards that vest based on certain other DISH Network-specific subscriber, operational and/or financial goals. Exercise of these stock awards is contingent on achieving certain performance goals. Additional compensation related to these awards will be recorded based on DISH Network’s assessment of the probability of meeting the remaining performance goals. If the remaining goals 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 goal. See the table below titled “Estimated Remaining Non-Cash, Stock-Based Compensation Expense.” Although no awards vest until the performance goals are attained, DISH Network determined that certain goals were probable of achievement and, as a result, we recorded non-cash, stock-based compensation expense for the years ended December 31, 2017, 2016 and 2015, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” Given the competitive nature of DISH Network’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 DISH Network-specific subscriber, operational and/or financial goals was not probable as of December 31, 2017, that assessment could change in the future. 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 2017 2016 2015 (In thousands) 2017 LTIP $ 10,640 $ — $ — 2013 LTIP (1) (321) 2,565 10,157 Other employee performance awards 7,549 1,424 1,694 Total non-cash, stock-based compensation expense recognized for performance-based awards $ 17,868 $ 3,989 $ 11,851 (1) “Non-Cash, Stock-Based Compensation Expense Recognized” includes forfeitures. Estimated Remaining Non-Cash, Stock-Based Compensation Expense 2017 LTIP 2013 LTIP Other Employee Performance Awards (In thousands) Expense estimated to be recognized during 2018 $ 8,271 $ 1,974 $ 17,946 Estimated contingent expense subsequent to 2018 18,694 39,234 123,655 Total estimated remaining expense over the term of the plan $ 26,965 $ 41,208 $ 141,601 Of the 8.8 million stock options and 2.5 million restricted stock units and awards outstanding under the DISH Network stock incentive plans associated with our employees as of December 31, 2017, the following awards were outstanding pursuant to the performance-based stock incentive plans: As of December 31, 2017 Performance-Based Stock Options Number of Weighted- 2017 LTIP 2,545,626 $ 59.38 2013 LTIP 1,205,000 $ 41.78 Other employee performance awards 1,740,000 $ 19.27 Total 5,490,626 $ 42.81 Restricted Performance Units/Awards 2013 LTIP 602,500 Other employee performance awards 1,833,000 Total 2,435,500 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, 2017, 2016 and 2015 and was allocated to the same expense categories as the base compensation for such employees: For the Years Ended December 31, 2017 2016 2015 (In thousands) Subscriber-related $ 3,323 $ 694 $ 2,164 General and administrative 26,618 12,343 17,035 Total non-cash, stock based compensation $ 29,941 $ 13,037 $ 19,199 As of December 31, 2017, our total unrecognized compensation cost related to the non-performance based unvested stock awards was $22 million and will be recognized over a weighted-average period of approximately two years. Share-based compensation expense is recognized based on stock awards ultimately expected to vest. Valuation The fair value of each stock option granted for the years ended December 31, 2017, 2016 and 2015 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 2017 2016 2015 Risk-free interest rate 1.34 % - 2.29 % 1.06 % - 2.27 % 1.40 % - 2.19 % Volatility factor 22.25 % - 26.15 % 26.12 % - 33.37 % 26.42 % - 36.22 % Expected term of options in years 3.8 - 5.5 5.4 - 10.0 5.5 - 7.8 Weighted-average fair value of options granted $ 11.95 - $ 16.69 $ 12.45 - $ 26.86 $ 16.14 - $ 29.73 While DISH Network currently does not intend to declare dividends on its common stock, it 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 zero 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 DISH Network’s stock options as new events or changes in circumstances become known. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies | |
Commitments and Contingencies | 11. Commitments and Contingencies Commitments As of December 31, 2017, future maturities of our long-term debt, capital lease and contractual obligations are summarized as follows: Payments due by period Total 2018 2019 2020 2021 2022 Thereafter (In thousands) Long-term debt obligations $ 13,037,370 $ 1,027,024 $ 1,401,233 $ 1,101,306 $ 2,001,385 $ 2,001,468 $ 5,504,954 Capital lease obligations 104,318 37,451 19,896 19,137 20,615 7,219 — Interest expense on long-term debt and capital lease obligations 4,092,785 796,742 771,496 631,593 534,350 465,498 893,106 Satellite-related obligations 1,233,242 348,617 301,102 241,371 208,196 125,636 8,320 Operating lease obligations 198,890 48,029 33,125 25,404 19,996 13,556 58,780 Purchase obligations 1,449,556 1,283,645 134,859 16,019 8,833 6,200 — Total $ 20,116,161 $ 3,541,508 $ 2,661,711 $ 2,034,830 $ 2,793,375 $ 2,619,577 $ 6,465,160 In certain circumstances the dates on which we are obligated to make these payments could be delayed. These amounts will increase to the extent that we procure launch and/or in-orbit insurance on our satellites or contract for the construction, launch or lease of additional satellites. The table above does not include $201 million of liabilities associated with unrecognized tax benefits that were accrued, as discussed in Note 8, and are included on our Consolidated Balance Sheets as of December 31, 2017. We do not expect any portion of this amount to be paid or settled within the next twelve months. DISH Network Spectrum Since 2008, DISH Network has directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets and made over $10 billion in non-controlling investments in certain entities, for a total of over $21 billion, as described further below. DISH Network has directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets. These wireless spectrum licenses are subject to certain interim and final build-out requirements. DISH Network will need to make significant additional investments or partner with others to, among other things, commercialize, build-out, and integrate these licenses and related assets, and any additional acquired licenses and related assets; and comply with regulations applicable to such licenses. Depending on the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such investments or partnerships could vary significantly. In addition, as DISH Network considers its options for the commercialization of its wireless spectrum, it will incur significant additional expenses and will have to make significant investments related to, among other things, research and development, wireless testing and wireless network infrastructure. In March 2017, DISH Network notified the FCC that it plans to deploy a next-generation 5G-capable network, focused on supporting narrowband Internet of Things (“IoT”). The first phase of the network deployment will be completed by March 2020, with subsequent phases to be completed thereafter. DISH Network may also determine that additional wireless spectrum licenses may be required to commercialize its wireless business and to compete with other wireless service providers. In connection with the development of DISH Network’s wireless business, including, without limitation, the efforts described above, we have made cash distributions to partially finance these efforts to date and may make additional cash distributions to finance, in whole or in part, DISH Network’s future efforts. See Note 16 for further information regarding our dividends to DOC. There can be no assurance that DISH Network will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably deploy the assets represented by these wireless spectrum licenses. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses Through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network has made over $10 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“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 (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. DISH Network may need to make significant additional loans to the Northstar Entities and to the SNR Entities, or they may need to partner with others, so that the Northstar Entities and the SNR Entities may commercialize, build-out and integrate these AWS-3 Licenses, comply with regulations applicable to such AWS-3 Licenses, and make any potential payments related to the re-auction of AWS-3 Licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out, integration efforts, regulatory compliance, and potential re-auction payments, any such loans or partnerships could vary significantly. For further information regarding the potential re-auction of AWS-3 licenses retained by the FCC, see Note 14 “ Commitments and Contingencies – Wireless – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2017. In connection with certain funding obligations related to the investments by American II and American III discussed above, in February 2015, we paid a dividend of $8.250 billion to DOC for, among other things, general corporate purposes, which included such funding obligations, and to fund other DISH Network cash needs. We may make additional cash distributions to finance, in whole or in part, loans that DISH Network may make to the Northstar Entities and the SNR Entities in the future related to DISH Network’s non-controlling investments in these entities. There can be no assurance that DISH Network will be able to obtain a profitable return on its non-controlling investments in the Northstar Entities and the SNR Entities. We may need to raise significant additional capital in the future, which may not be available on acceptable terms or at all, to among other things, make additional cash distributions to DISH Network, continue investing in our business and to pursue acquisitions and other strategic transactions. See Note 14 “ Commitments and Contingencies – Wireless” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2017 for further information. Guarantees During the third quarter 2009, EchoStar entered into a satellite transponder service agreement for Nimiq 5 through 2024. We sublease this capacity from EchoStar and DISH Network guarantees a certain portion of EchoStar’s obligation under its satellite transponder service agreement through 2019. As of December 31, 2017, the remaining obligation of the DISH Network guarantee was $127 million. As of December 31, 2017, we have not recorded a liability on the balance sheet for this guarantee. Purchase Obligations Our 2018 purchase obligations primarily consist of binding purchase orders for certain fixed contractual commitments to purchase programming content, receiver systems and related equipment, broadband equipment, digital broadcast operations, transmission costs, streaming delivery technology and infrastructure, engineering services, and other products and services related to the operation of our Pay-TV services. Our purchase obligations can fluctuate significantly from period to period due to, among other things, management’s timing of payments and inventory purchases, and can materially impact our future operating asset and liability balances, and our future working capital requirements. Programming Contracts In the normal course of business, we enter into contracts to purchase programming content in which our payment obligations are generally contingent on the number of Pay-TV subscribers to whom we provide the respective content. These programming commitments are not included in the “Commitments” table above. The terms of our contracts typically range from one to ten years with annual rate increases. Our programming expenses will increase to the extent we are successful in growing our Pay-TV subscriber base. In addition, programming costs per subscriber continue to increase due to contractual price increases and the renewal of long-term programming contracts on less favorable pricing terms. Rent Expense Total rent expense for operating leases was $473 million, $431 million and $479 million in 2017, 2016 and 2015, respectively. Patents and Intellectual Property Many entities, including some of our competitors, have or may in the future obtain patents and other intellectual property rights that cover or affect products or services that we offer or that we may offer in the future. We may not be aware of all intellectual property rights that our products or services may potentially infringe. Damages in patent infringement cases can be substantial, and in certain circumstances can be trebled. Further, we cannot estimate the extent to which we may be required in the future to obtain licenses with respect to patents held by others and the availability and cost of any such licenses. Various parties have asserted patent and other intellectual property rights with respect to components of our products and services. We cannot be certain that these persons do not own the rights they claim, that our products do not infringe on these rights, and/or that these rights are not valid. Further, we cannot be certain that we would be able to obtain licenses from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our products to avoid infringement. Contingencies Separation Agreement 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. In connection with the Spin-off, DISH Network entered into a separation agreement with EchoStar that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, EchoStar has assumed certain liabilities that relate to its business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar will only be liable for its acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off, as well as our acts or omissions following the Spin-off. On February 28, 2017, DISH Network and EchoStar completed the Share Exchange pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to us. The Share Exchange Agreement contains additional indemnification provisions between us and EchoStar for certain liabilities and legal proceedings. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties (as with many patent-related cases). For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period. ClearPlay, Inc. On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against DISH Network, our wholly-owned subsidiary DISH Network L.L.C., EchoStar, and its then wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Utah. The complaint alleges infringement of United States Patent Nos. 6,898,799 (the “799 patent”), entitled “Multimedia Content Navigation and Playback”; 7,526,784 (the “784 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318 (the “318 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970 (the “970 patent”), entitled “Multimedia Content Navigation and Playback”; and 8,117,282 (the “282 patent”), entitled “Media Player Configured to Receive Playback Filters From Alternative Storage Mediums.” ClearPlay alleges that the AutoHop™ feature of our Hopper set-top box infringes the asserted patents. On February 11, 2015, the case was stayed pending various third-party challenges before the United States Patent and Trademark Office regarding the validity of certain of the patents asserted in the action. In those third-party challenges, the United States Patent and Trademark Office found that all claims of the 282 patent are unpatentable, and that certain claims of the 784 patent and 318 patent are unpatentable. ClearPlay appealed as to the 784 patent and the 318 patent, and on August 23, 2016, the United States Court of Appeals for the Federal Circuit affirmed the findings of the United States Patent and Trademark Office. On October 31, 2016, the stay was lifted. No trial date has been set. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. CRFD Research, Inc. (a subsidiary of Marathon Patent Group, Inc.) On January 17, 2014, CRFD Research, Inc. (“CRFD”) filed a complaint against us, our wholly-owned subsidiary DISH Network L.L.C., DISH Network, EchoStar, and its then wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 7,191,233 (the “233 patent”). The 233 patent is entitled “System for Automated, Mid-Session, User-Directed, Device-to-Device Session Transfer System,” and relates to transferring an ongoing software session from one device to another. CRFD alleges that our Hopper and Joey ® set-top boxes infringe the 233 patent. On the same day, CRFD filed similar complaints against AT&T Inc.; Comcast Corp.; DirecTV; Time Warner Cable Inc.; Cox Communications, Inc.; Akamai Technologies, Inc.; Cablevision Systems Corp. and Limelight Networks, Inc. CRFD is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On January 26, 2015, we and EchoStar filed a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 233 patent. The United States Patent and Trademark Office has agreed to institute a proceeding on our petition, as well as on two third-party petitions challenging the validity of certain claims of the 233 patent, and it heard oral argument on January 16, 2016. On June 1, 2016, the United States Patent and Trademark Office found that all claims asserted against us and the EchoStar parties were unpatentable. On July 5, 2016, CRFD filed a notice of appeal to the United States Court of Appeals for the Federal Circuit, which heard oral argument on April 6, 2017. On November 7, 2017, CRFD, we and EchoStar filed a joint motion to dismiss all claims in the action with prejudice, which the Court entered on November 9, 2017. This matter is now concluded. Customedia Technologies, L.L.C. On February 10, 2016, Customedia Technologies, L.L.C. (“Customedia”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of four patents: United States Patent No. 8,719,090 (the “090 patent”); United States Patent No. 9,053,494 (the “494 patent”); United States Patent No. 7,840,437 (the “437 patent”); and United States Patent No. 8,955,029 (the “029 patent”). Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia appears to allege infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. In December 2016 and January 2017, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of each of the asserted patents. On June 12, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petitions challenging the 090 patent and the 437 patent; on July 18, 2017, it agreed to institute proceedings on our petitions challenging the 029 patent; and on July 28, 2017, it agreed to institute proceedings on our petitions challenging the 494 patent. These instituted proceedings cover all asserted claims of each of the asserted patents, and the United States Patent and Trademark Office conducted a trial on them on March 5, 2018. On August 8, 2017, the litigation in the District Court was stayed pending resolution of the proceedings at the United States Patent and Trademark Office. Pursuant to an agreement between the parties, on December 20, 2017, DISH Network L.L.C. dismissed its petitions challenging the 029 patent in the United States Patent and Trademark Office, and on January 9, 2018, the parties dismissed their claims, counterclaims and defenses as to that patent in the litigation. Customedia is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Dragon Intellectual Property, LLC On December 20, 2013, Dragon Intellectual Property, LLC (“Dragon IP”) filed complaints against our wholly-owned subsidiary DISH Network L.L.C., as well as Apple Inc.; AT&T, Inc.; Charter Communications, Inc.; Comcast Corp.; Cox Communications, Inc.; DirecTV; Sirius XM Radio Inc.; Time Warner Cable Inc. and Verizon Communications, Inc., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 5,930,444 (the “444 patent”), which is entitled “Simultaneous Recording and Playback Apparatus.” Dragon IP alleges that various of our DVR receivers infringe the 444 patent. Dragon IP is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On December 23, 2014, DISH Network L.L.C. filed a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 444 patent. On April 10, 2015, the Court granted DISH Network L.L.C.’s motion to stay the action in light of DISH Network L.L.C.’s petition and certain other defendants’ petitions pending before the United States Patent and Trademark Office challenging the validity of certain claims of the 444 patent. On July 17, 2015, the United States Patent and Trademark Office agreed to institute a proceeding on our petition. Pursuant to a stipulation between the parties, on April 27, 2016, the Court entered an order of non-infringement and judgment in favor of DISH Network L.L.C. On June 15, 2016, the United States Patent and Trademark Office entered an order that the patent claims being asserted against DISH Network L.L.C. with respect to the 444 patent are unpatentable. On August 8, 2016, Dragon filed notices of appeal with respect to the Court’s judgment and the United States Patent and Trademark Office’s decision and, on October 5, 2017, the United States Court of Appeals for the Federal Circuit heard oral argument. On November 1, 2017, the United States Court of Appeals for the Federal Circuit affirmed the unpatentability of the 444 patent based on the petition filed in the United States Patent and Trademark Office by DISH Network L.L.C., and dismissed as moot the appeal of the order of non-infringement from the District Court. On December 1, 2017, Dragon IP filed a petition for panel rehearing with the United States Court of Appeals for the Federal Circuit, which the Court of Appeals denied on January 31, 2018. On March 16, 2018, Dragon IP filed a petition asking the United States Supreme Court to hear a further appeal on the constitutionality of the procedure by which the United States Patent and Trademark Office invalidated the asserted claims of the 444 patent. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Grecia On March 27, 2015, William Grecia (“Grecia”) filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of Illinois, alleging infringement of United States Patent No. 8,533,860 (the “860 patent”), which is entitled “Personalized Digital Media Access System—PDMAS Part II.” Grecia alleges that we violate the 860 patent in connection with our digital rights management. Grecia is the named inventor on the 860 patent. On June 22, 2015, the case was transferred to the United States District Court for the Northern District of California. On November 18, 2015, Grecia filed an amended complaint adding allegations that we infringe United States Patent No. 8,402,555 (the “555 patent”), which is entitled “Personalized Digital Media Access System (PDMAS).” Grecia is the named inventor on the 555 patent. Grecia alleges that we violate the 555 patent in connection with our digital rights management. Grecia dismissed his action with prejudice on February 3, 2016. On February 3, 2016, Grecia filed a new complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of California, alleging infringement of United States Patent No. 8,887,308 (the “308 patent”), which is entitled “Digital Cloud Access—PDMAS Part III,” on which Grecia is also the named inventor. Grecia alleges that we violate the 308 patent in connection with our DISH Anywhere feature. On July 29, 2016, DISH Network L.L.C. filed a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 308 patent. On January 19, 2017, the United States Patent and Trademark Office declined to institute a proceeding on our petition. The litigation in the District Court, which had been stayed since June 13, 2016 pending resolution of DISH Network L.L.C.’s petition to the United States Patent and Trademark Office, was further stayed on February 23, 2017 pending a claim construction order from the United States District Court for the Southern District of New York in a separate action in which Grecia is asserting the same patent. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. IPA Technologies Inc. On December 9, 2016, IPA Technologies Inc. (“IPA”) filed suit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the District of Delaware. IPA alleges that our Voice Remote with Hopper 3 infringes United States Patent Number 6,742,021 (the “021 patent”), which is entitled “Navigating Network-based Electronic Information Using Spoken Input with Multimodal Error Feedback”; United States Patent Number 6,523,061 (the “061 patent”), which is entitled “System, Method, and Article of Manufacture for Agent-Based Navigation in a Speech-Based Data Navigation System”; and United States Patent Number 6,757,718 (the “718 patent”), which is entitled “Mobile Navigation of Network-Based Electronic Information Using Spoken Input.” IPA is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. On December 20, 2017, we and DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of select claims of each of the asserted patents. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. LightSquared/Harbinger Capital Partners LLC (LightSquared Bankruptcy) As previously disclosed in our public filings, L-Band Acquisition, LLC (“LBAC”), DISH Network’s wholly-owned subsidiary, entered into a Plan Support Agreement (the “PSA”) with certain senior secured lenders to LightSquared LP (the “LightSquared LP Lenders”) on July 23, 2013, which contemplated the purchase by LBAC of substantially all of the assets of LightSquared LP and certain of its subsidiaries (the “LBAC Bid”) that are debtors and debtors in possession in the LightSquared bankruptcy cases pending in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”), which cases are jointly administered under the caption In re LightSquared Inc., et. al., Case No. 12 12080 (SCC). Pursuant to the PSA, LBAC was entitled to terminate the PSA in certain circumstances, certain of which required three business days’ written notice, including, without limitation, in the event that certain milestones specified in the PSA were not met. On January 7, 2014, LBAC delivered written notice of termination of the PSA to the LightSquared LP Lenders. As a result, the PSA terminated effective on January 10, 2014, and the LBAC Bid was withdrawn. On August 6, 2013, Harbinger Capital Partners LLC and other affiliates of Harbinger (collectively, “Harbinger”), a shareholder of LightSquared Inc., filed an adversary proceeding against DISH Network, LBAC, EchoStar, Charles W. Ergen (our Chairman), SP Special Opportunities, LLC (“SPSO”) (an entity controlled by Mr. Ergen), and certain other parties, in the Bankruptcy Court. Harbinger alleged, among other things, claims based on fraud, unfair competition, civil conspiracy and tortious interference with prospective economic advantage related to certain purchases of LightSquared secured debt by SPSO. Subsequently, LightSquared intervened to join in certain claims alleged against certain defendants other than DISH Network, LBAC and EchoStar. On October 29, 2013, the Bankruptcy Court dismissed all of the claims in Harbinger’s complaint in their entirety, but granted leave for LightSquared to file its own complaint in intervention. On November 15, 2013, LightSquared filed its complaint, which included various claims against DISH Network, EchoStar, Mr. Ergen and SPSO. On December 2, 2013, Harbinger filed an amended complaint, asserting various claims against SPSO. On December 12, 2013, the Bankruptcy Court dismissed several of the claims asserted by LightSquared and Harbinger. The surviving claims included, among others, LightSquared’s claims against SPSO for declaratory relief, breach of contract and statutory disallowance; LightSquared’s tortious interference claim against DISH Network, EchoStar and Mr. Ergen; and Harbinger’s claim against SPSO for statutory disallowance. These claims proceeded to a non-jury trial on January 9, 2014. In its Post-Trial Findings of Fact and Conclusions of Law entered on June 10, 2014, the Bankruptcy Court rejected all claims against DISH Network and EchoStar, and it rejected some but not all claims against the other defendants. On July 7, 2015, the United States District Court for the Southern District of New York denied Harbinger’s motion for an interlocutory appeal of certain Bankruptcy Court orders in the adversary proceeding. On March 27, 2015, the Bankruptcy Court entered an order confirming the Modified Second Amended Joint Plan pursuant to Chapter 11 of the Bankruptcy Code and, on December 7, 2015, the Plan became effective. DISH Network intends to vigorously defend any claims against it in this proceeding and cannot predict with any degree of certainty the outcome of this proceeding or determine the extent of any potential liability or damages. LightSquared Transaction Shareholder Derivative Actions On August 9, 2013, a purported shareholder of DISH Network, Jacksonville Police and Fire Pension Fund (“Jacksonville PFPF”), filed a putative shareholder derivative action in the District Court for Clark County, Nevada alleging, among other things, breach of fiduciary duty claims against the members of DISH Network’s Board of Directors as of that date: Charles W. Ergen; Joseph P. Clayton; James DeFranco; Cantey M. Ergen; Steven R. Goodbarn; David K. Moskowitz; Tom A. Ortolf; and Carl E. Vogel (collectively, the “Director Defendants”). In its first amended complaint, Jacksonville PFPF asserted claims that Mr. Ergen breached his fiduciary duty to DISH Network in connection with certain purchases of LightSquared debt by SPSO, an entity controlled by Mr. Ergen, and that the other Director Defendants aided and abetted that alleged breach of duty. The Jacksonville PFPF claims alleged that (1) the debt purchases created an impermissible conflict of interest and (2) put at risk the LBAC Bid, which as noted above was withdrawn. Jacksonville PFPF further claimed that most members of DISH Network’s Board of Directors are beholden to Mr. Ergen to an extent that prevents them from discharging their duties in connection with DISH Network’s participation in the LightSquared bankruptcy auction process. |
Financial Information for Subsi
Financial Information for Subsidiary Guarantors | 12 Months Ended |
Dec. 31, 2017 | |
Financial Information for Subsidiary Guarantors | |
Financial Information for Subsidiary Guarantors | 12. Financial Information for Subsidiary Guarantors Our senior notes are fully, unconditionally and jointly and severally guaranteed by all of our subsidiaries other than minor subsidiaries and the stand-alone entity DISH DBS has no independent assets or operations. Therefore, supplemental financial information on a condensed consolidating basis of the guarantor subsidiaries is not required. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the guarantor subsidiaries, except those imposed by applicable law. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2017 | |
Geographic Information | |
Geographic Information | 13. Geographic Information Revenue is attributed to geographic regions based upon the location where the goods and services are provided. All subscriber-related revenue was derived from the United States. Substantially all of our long-lived assets reside in the United States. The following table summarizes revenue by geographic region: For the Years Ended December 31, Revenue: 2017 2016 2015 (In thousands) United States $ 13,967,694 $ 14,655,469 $ 14,661,458 Canada and Mexico 39,817 100,470 134,570 Total revenue $ 14,007,511 $ 14,755,939 $ 14,796,028 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | 14. Valuation and Qualifying Accounts Our valuation and qualifying accounts as of December 31, 2017, 2016 and 2015 were as follows: Allowance for doubtful accounts Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year (In thousands) For the years ended: December 31, 2017 $ 17,440 $ 124,143 $ (126,527) $ 15,056 December 31, 2016 $ 21,769 $ 149,599 $ (153,928) $ 17,440 December 31, 2015 $ 25,414 $ 94,186 $ (97,831) $ 21,769 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data (Unaudited) | |
Quarterly Financial Data (Unaudited) | 15. 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, 2017: Total revenue $ 3,570,959 $ 3,543,812 $ 3,491,559 $ 3,401,181 Operating income (loss) 588,793 219,720 424,559 376,804 Net income (loss) attributable to DISH DBS 241,715 (95,656) 158,424 419,043 Year ended December 31, 2016: Total revenue $ 3,712,632 $ 3,747,296 $ 3,653,774 $ 3,642,237 Operating income (loss) 594,942 639,143 517,454 557,582 Net income (loss) attributable to DISH DBS 272,835 277,032 188,141 226,606 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions | |
Related Party Transactions | 16. Related Party Transactions Related Party Transactions with DISH Network On June 30, 2016, we paid a dividend of $1.5 billion to DOC. On February 12, 2015, we paid a dividend of $8.250 billion to DOC for, among other things, general corporate purposes, which included certain funding obligations related to DISH Network’s non-controlling debt and equity investments in the Northstar Entities and the SNR Entities, and to fund other DISH Network cash needs. Advertising Sales. We provide advertising services to DISH Network’s broadband business. During the years ended December 31, 2017, 2016 and 2015, we received revenue associated with these services of zero, $2 million and $10 million, respectively, in “Subscriber-related revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Broadband, Wireless and Other Operations. We provide certain administrative, call center, installation, marketing and other services to DISH Network’s broadband, wireless and other operations. During the years ended December 31, 2017, 2016 and 2015, the costs associated with these services were $48 million, $66 million and $66 million, respectively. EchoStar XVIII Satellite. The EchoStar XVIII satellite was launched on June 18, 2016 and became operational as an in-orbit spare at the 61.5 degree orbital location during the third quarter 2016, at which time we began leasing it from an indirect wholly-owned subsidiary of DISH Network. During the years ended December 31, 2017 and 2016, we incurred $67 million and $22 million, respectively, of expense related to this satellite. This amount is recorded in “Satellite and transmission expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Related Party Transactions with EchoStar Following the Spin-off, DISH Network and EchoStar have operated as separate publicly-traded companies and neither entity has any ownership interest in the other. However, a substantial majority of the voting power of the shares of both companies is owned beneficially by Charles W. Ergen, our Chairman, and by certain trusts established by Mr. Ergen for the benefit of his family. In connection with and following the Spin-off, we and EchoStar have entered into certain agreements pursuant to which we obtain certain products, services and rights from EchoStar, EchoStar obtains certain products, services and rights from us, and we and EchoStar have indemnified each other against certain liabilities arising from our respective businesses. In connection with the Share Exchange, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. In addition, certain agreements that we had with EchoStar have terminated, and we entered into certain new agreements with EchoStar. As the Share Exchange was a transaction between entities that are under common control, accounting rules require that our Consolidated Financial Statements include the results of the Transferred Businesses for all periods presented, including periods prior to the completion of the Share Exchange. Intercompany transactions between the Transferred Businesses and us, including, among others, the sale of set-top boxes and broadcast services from EchoStar to us, have been eliminated to the extent possible, including the margin EchoStar received on those sales. See Note 2 for further information. We also may enter into additional agreements with EchoStar in the future. 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, 2017 and 2016, trade accounts receivable from EchoStar was $2 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, 2017 and 2016, trade accounts payable to EchoStar was $29 million and $259 million, respectively. These amounts are recorded in “Trade accounts payable” on our Consolidated Balance Sheets. “Equipment sales and other revenue” During the years ended December 31, 2017, 2016 and 2015, we received $3 million, $2 million and $48 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. Satellite Capacity Leased to EchoStar. W e have entered into certain satellite capacity agreements pursuant to which EchoStar leases certain capacity on certain satellites owned by us. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. The term of each lease is set forth below: · EchoStar XV. In May 2013, we began leasing satellite capacity to EchoStar on EchoStar XV and relocated the satellite for testing at EchoStar’s Brazilian authorization at the 45 degree orbital location. Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days’ notice. This lease terminated in November 2015 and EchoStar relocated this satellite from the 45 degree orbital location back to the 61.5 degree orbital location where it currently serves as an in-orbit spare. Real Estate Lease Agreements. DISH Network has entered into lease agreements pursuant to which DISH Network leases 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, DISH Network 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 2015, EchoStar exercised its first renewal option for a period ending on August 1, 2018. · 90 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 90 Inverness Circle East, Englewood, Colorado for a period ending in February 2022. EchoStar has the option to renew this lease for four three-year periods. · Cheyenne Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 530 EchoStar Drive, Cheyenne, Wyoming for a period ending in February 2019. EchoStar has the option to renew this lease for thirteen one-year periods. · Gilbert Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 801 N. DISH Dr., Gilbert, Arizona for a period ending in March 2019. EchoStar has the option to renew this lease for thirteen one-year periods. · American Fork Occupancy License Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, we acquired the lease for certain space at 796 East Utah Valley Drive, American Fork, Utah, and we sublease certain space at this location to EchoStar for a period ending in August 2017. In June 2017, EchoStar exercised its five-year renewal option for a period ending in August 2022. Collocation and Antenna Space Agreements . In connection with the completion of the Share Exchange, effective March 1, 2017, we entered into certain agreements pursuant to which we will provide certain collocation and antenna space to HNS through February 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Englewood, Colorado and Spokane, Washington. During August 2017, we entered into certain other agreements pursuant to which we will 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: New Braunfels, Texas; 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. “Satellite and transmission expenses” During the years ended December 31, 2017, 2016 and 2015, we incurred $346 million, $351 million and $424 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. EchoStar is a supplier of the vast majority of our transponder capacity. These amounts are recorded in “Satellite and transmission expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Satellite Capacity Leased from EchoStar. We have entered into certain satellite capacity agreements pursuant to which we lease certain capacity on certain satellites owned or leased by EchoStar. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: · EchoStar I, VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar I, VII, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. The satellite capacity agreement for EchoStar I expired on November 30, 2015. · EchoStar VIII. In May 2013, we began leasing capacity from EchoStar on EchoStar VIII as an in-orbit spare. Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days’ notice. This lease terminated in November 2015. · EchoStar IX . We lease certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally have the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis. · EchoStar XII . The lease for EchoStar XII expired as of September 30, 2017. · EchoStar XVI. In December 2009, we entered into a transponder service agreement with EchoStar to lease all of the capacity on EchoStar XVI, a DBS satellite, after its service commencement date. EchoStar XVI was launched in November 2012 to replace EchoStar XV at the 61.5 degree orbital location and is currently in service. Effective December 21, 2012, we and EchoStar amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and EchoStar amended the transponder service agreement to, among other things, extend the initial term by one additional year and to reduce the term of the first renewal option by one year. Prior to expiration of the initial term, we had the option to renew for an additional five-year period. In May 2017, we exercised our first renewal option for an additional five-year period ending in January 2023. We also have the option to renew for an additional five-year period prior to expiration of the first renewal period in January 2023. There can be no assurance that the option to renew this agreement will be exercised. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we currently receive service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. DISH Network has also guaranteed certain obligations of EchoStar under the Telesat Transponder Agreement. See discussion under “Guarantees” in Note 11. Under the terms of the DISH Nimiq 5 Agreement, we make certain monthly payments to EchoStar that commenced in September 2009 when the Nimiq 5 satellite was placed into service and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we have the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Upon in-orbit failure or end-of-life of the Nimiq 5 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the DISH Nimiq 5 Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provides, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite. During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we receive service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location while we and EchoStar explored alternative uses for the QuetzSat-1 satellite. In the interim, EchoStar provided us with alternate capacity at the 77 degree orbital location. During the first quarter 2013, we and EchoStar entered into an agreement pursuant to which we sublease five DBS transponders back to EchoStar. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the QuetzSat-1 Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. Upon an in-orbit failure or end-of-life of the QuetzSat-1 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the QuetzSat-1 Transponder Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. 103 Degree Orbital Location/SES-3. In May 2012, EchoStar entered into a spectrum development agreement (the “103 Spectrum Development Agreement”) with Ciel Satellite Holdings Inc. (“Ciel”) to develop certain spectrum rights at the 103 degree orbital location (the “103 Spectrum Rights”). In June 2013, we and EchoStar entered into a spectrum development agreement (the “DISH 103 Spectrum Development Agreement”) pursuant to which we may use and develop the 103 Spectrum Rights. Unless earlier terminated under the terms and conditions of the DISH 103 Spectrum Development Agreement, the term generally will continue for the duration of the 103 Spectrum Rights. In connection with the 103 Spectrum Development Agreement, in May 2012, EchoStar also entered into a ten-year service agreement with Ciel pursuant to which EchoStar leases certain satellite capacity from Ciel on the SES-3 satellite at the 103 degree orbital location (the “103 Service Agreement”). In June 2013, we and EchoStar entered into an agreement pursuant to which we lease certain satellite capacity from EchoStar on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, we make certain monthly payments to EchoStar through the service term. Unless earlier terminated under the terms and conditions of the DISH 103 Service Agreement, the initial service term will expire on the earlier of: (i) the date the SES-3 satellite fails; (ii) the date the transponder(s) on which service was being provided under the agreement fails; or (iii) ten years following the actual service commencement date. Upon in-orbit failure or end of life of the SES-3 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that we will exercise our option to receive service on a replacement satellite. TT&C Agreement. Effective January 1, 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we receive TT&C services from EchoStar for certain satellites (the “TT&C Agreement”). The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We are able to terminate the TT&C Agreement for any reason upon 60 days’ notice. “General and administrative expenses” During the years ended December 31, 2017, 2016 and 2015, we incurred $29 million, $14 million and $13 million, respectively, for general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “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 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: · Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado was for a period ending on December 31, 2017. In December 2017, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2018. · Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado was for a period ending on December 31, 2017. In December 2017, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2018. · Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. In connection with the completion of the Share Exchange, EchoStar transferred ownership of a portion of this property to us, and, effective March 1, 2017, we and EchoStar amended this lease agreement to (i) terminate the lease of certain space at the portion of the property that was transferred to us and (ii) provide for the continued lease to us of certain space at the portion of the property that EchoStar retained. · 100 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, we lease certain space from EchoStar at 100 Inverness Terrace East, Englewood, Colorado for a period ending in December 2020. This agreement may be terminated by either party upon 180 days’ prior notice. Professional Services Agreement. Prior to 2010, in connection with the Spin-off, DISH Network 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, DISH Network and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under 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, DISH Network and EchoStar agreed that DISH Network shall continue to have the right, but not the obligation, to engage EchoStar to manage the process of procuring new satellite capacity for DISH Network (previously provided under the Satellite Procurement Agreement) and receive logistics, procurement and quality assurance services from EchoStar (previously provided under the Services Agreement) and other support services. The Professional Services Agreement renewed on January 1, 2018 for an additional one-year period until January 1, 2019 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. In connection with the completion of the Share Exchange on February 28, 2017, DISH Network and EchoStar amended the Professional Services Agreement to, among other things, provide certain transition services to each other related to the Share Exchange Agreement. Revenue for services provided by us to EchoStar under the Professional Services Agreement is recorded in “Equipment sales and other revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Other Agreements - EchoStar Tax Sharing Agreement. In connection with the Spin-off, DISH Network entered into a 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 DISH Network, and DISH Network will indemnify EchoStar for such taxes. However, DISH Network is 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 DISH Network 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. Tax Matters Agreement . In connection with the completion of the Share Exchange, DISH Network and EchoStar entered into a Tax Matters Agreement, which governs certain rights, responsibilities and obligations with respect to taxes of the Transferred Businesses pursuant to the Share Exchange. Generally, EchoStar is responsible for all tax returns and tax liabilities for the Transferred Businesses for periods prior to the Share Exchange, and DISH Network are responsible for all tax returns and tax liabilities for the Transferred Businesses from and after the Share Exchange. Both DISH Network and EchoStar have made certain tax-related representations and are subject to various tax-related covenants after the consummation of the Share Exchange. Both DISH Network and EchoStar have agreed to indemnify each other if there is a breach of any such tax representation or violation of any such tax covenant and that breach or violation results in the Share Exchange not qualifying for tax free treatment for the other party. In addition, DISH Network has agreed to indemnify EchoStar if the Transferred Businesses are acquired, either directly or indirectly (e.g., via an acquisition of DISH Network), by one or more persons and such acquisition results in the Share Exchange not qualifying for tax free treatment. The Tax Matters Agreement supplements the Tax Sharing Agreement described above, which continues in full force and effect. TiVo. On April 29, 2011, DISH Network and EchoStar entered into a settlement agreement with TiVo Inc. (“TiVo”). The settlement resolved all pending litigation between DISH Network and EchoStar, on the one hand, and TiVo, on the other hand, including litigation relating to alleged patent infringement involving certain DISH TV digital video recorders, or DVRs. Under the settlement agreement, all pending litigation was dismissed with prejudice and all injunctions that permanently restrain, enjoin or compel any action by DISH Network or EchoStar were dissolved. DISH Network and EchoStar are jointly responsible for making payments to TiVo in the aggregate amount of $500 million, including an initial payment of $300 million and the remaining $200 million in six equal annual installments between 2012 and 2017. Pursuant to the terms and conditions of the agreements entered into in connection with the Spin-off of EchoStar from DISH Network, DISH Network made the initial payment to TiVo in May 2011, except for the contribution from EchoStar totaling approximately $10 million, representing an allocation of liability relating to EchoStar’s sales of DVR-enabled receivers to an international customer. Future payments were allocated between DISH Network and EchoStar based on historical sales of certain licensed products, with DISH Network being responsible for 95% of each annual payment. Pursuant to the Share Exchange Agreement, DISH Network was responsible for EchoStar’s allocation of the final payment to TiVo, which was paid July 31, 2017. Patent Cross-License Agreements . In December 2011, DISH Network 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) DISH Network and such third party licensed their 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 $10 million. Each Cross License Agreement also contains an option to extend each Cross-License Agreement to include patents acquired by the respective party prior to January 1, 2022. In December 2016, DISH Network and EchoStar independently exercised their respective options to extend each Cross-License Agreement. The aggregate additional payments to such third-party was less than $3 million. Since the aggregate payments under both Cross-License Agreements were based on the combined annual revenues of DISH Network and EchoStar, DISH Network and EchoStar agreed to allocate their respective payments to such third party based on their respective percentage of combined total revenue. gTLD Bidding Agreement . In April 2015, we and EchoStar entered into a gTLD Bidding Agreement whereby, among other things: (i) we obtained rights from EchoStar to participate in a generic top level domain (“gTLD”) auction, assuming all rights and obligations from EchoStar related to EchoStar’s application with ICANN for a particular gTLD; (ii) we agreed to reimburse EchoStar for its ICANN application fee and certain out-of-pocket expenses related to the application and the auction; and (iii) we and EchoStar agreed to split equally the net proceeds obtained by us as the losing bidder in the auction, less such fee reimbursement and out-of-pocket expenses. During the year ended December 31, 2015, we paid EchoStar approximately $1 million related to this agreement. 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. Sale of Orange, New Jersey Properties. In October 2016, we and EchoStar sold two parcels of real estate owned separately by us and EchoStar in Orange, New Jersey to a third party pursuant to a purchase and sale agreement. Pursuant to the agreement, we and EchoStar separately received our respective payments from the buyer. Invidi. In November 2010 and April 2011, EchoStar made investments in Invidi in exchange for shares of Invidi’s Series D Preferred Stock. In November 2016, we, DIRECTV, LLC, a wholly-owned indirect subsidiary of AT&T Inc., and Cavendish Square Holding B.V., an affiliate of WPP plc, entered into a series of agreements to acquire Invidi. As a result of the transaction, EchoStar sold its ownership interest in Invidi on the same terms offered to the other shareholders of Invidi. The transaction closed in January 2017. Hughes Broadband Master Services Agreement. In March 2017, DISH Network L.L.C. (“DNLLC”) and HNS entered into a master service agreement (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 “Subscriber-related revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). 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 year ended December 31, 2017, we purchased broadband equipment from HNS of $22 million under the MSA. Employee Matters Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, DISH Network and EchoStar entered into an Employee Matters Agreement that addresses the transfer of employees from EchoStar to DI |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities 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, the cost method is used. 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. On February 28, 2017, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Share Exchange Agreement (the “Share Exchange Agreement”) that was previously entered into on January 31, 2017 (the “Share Exchange”). Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses, consisting primarily of the businesses that design, develop and distribute digital set-top boxes, provide satellite uplinking services and develop and support streaming video technology, as well as certain investments in joint ventures, spectrum licenses, real estate properties and EchoStar’s ten percent non-voting interest in Sling TV Holding L.L.C. (the “Transferred Businesses”), and in exchange, we transferred to EchoStar the 6,290,499 shares of preferred tracking stock issued by EchoStar (the “EchoStar Tracking Stock”) and 81.128 shares of preferred tracking stock issued by Hughes Satellite Systems Corporation, a subsidiary of EchoStar (the “HSSC Tracking Stock,” and together with the EchoStar Tracking Stock, collectively, the “Tracking Stock”), that tracked the residential retail satellite broadband business of Hughes Network Systems, LLC (“HNS”). In connection with the Share Exchange, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. See Note 11 for further information. As the Share Exchange was a transaction between entities that are under common control, accounting rules require that our Consolidated Financial Statements include the results of the Transferred Businesses for all periods presented, including periods prior to the completion of the Share Exchange. We initially recorded the Transferred Businesses at EchoStar’s historical cost basis. The difference between the historical cost basis of the Transferred Businesses and the net carrying value of the Tracking Stock is recorded in “Additional paid-in capital” on our Consolidated Balance Sheets. The results of the Transferred Businesses were prepared from separate records maintained by EchoStar for the periods prior to March 1, 2017, and may not necessarily be indicative of the conditions that would have existed, or the results of operations, if the Transferred Businesses had been operated on a combined basis with our subsidiaries. The primary impacts to our financial statement presentation are as follows: · Our investments in the EchoStar Tracking Stock and HSSC Tracking Stock are no longer included on our Consolidated Balance Sheets. · The assets and liabilities of the Transferred Businesses are recorded on our Consolidated Balance Sheets, and the results of operations of the Transferred Businesses, including sales of set-top boxes to third parties, are recorded on our Consolidated Statements of Operations and Comprehensive Income (Loss). · Sling TV Holding L.L.C., in which EchoStar held a 10% non-voting interest prior to the Share Exchange, is accounted for as though it was an indirect wholly-owned subsidiary of us. · Intercompany transactions between the Transferred Businesses and us, including, among others, the sale of set-top boxes and broadcast services from EchoStar to us, have been eliminated to the extent possible, including the margin EchoStar received on those sales. Our financial statements include the results of the Transferred Businesses as described above for all periods presented, including periods prior to the completion of the Share Exchange. The table below includes supplemental pro forma information for revenue and net income (loss) attributable to DISH DBS on our Consolidated Statements of Operations and Comprehensive Income (Loss) as if the results of the Transferred Businesses were included for the years ended December 31, 2016 and December 31, 2015, respectively. DISH DBS (as previously reported) Adjustments Relating to the Transferred Businesses DISH DBS (as currently reported) (In thousands) For the Year Ended December 31, 2016: Total revenue $ 14,637,043 $ 118,896 $ 14,755,939 Net income (loss) attributable to DISH DBS $ 916,528 $ 48,086 $ 964,614 For the Year Ended December 31, 2015: Total revenue $ 14,638,249 $ 157,779 $ 14,796,028 Net income (loss) attributable to DISH DBS $ 780,135 $ 55,282 $ 835,417 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make 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 used in accounting for, among other things, allowances for doubtful accounts, 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 our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, 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, 2017 and 2016 may consist of money market funds, government bonds, corporate notes and commercial paper. The cost of these investments approximates their fair value. |
Marketable Investment Securities | Marketable Investment Securities We currently classify all marketable investment securities as available-for-sale, except for investments which we account for as trading securities, discussed below. We adjust the carrying amount of our available-for-sale securities to fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Consolidated Balance Sheets. Declines in the fair value of a marketable investment security which are determined to be “other-than-temporary” are recognized on the Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment. Our trading securities are also 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). We evaluate our marketable investment securities portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other-than-temporary. This quarterly evaluation consists of reviewing, among other things: · the fair value of our marketable investment securities compared to the carrying amount, · the historical volatility of the price of each security, and · any market and company specific factors related to each security. Declines in the fair value of debt and equity investments below cost basis are generally accounted for as follows: Length of Time Investment Has Been In a Continuous Treatment of the Decline in Value Loss Position (absent specific factors to the contrary) Less than six months Generally, considered temporary. Six to nine months Evaluated on a case by case basis to determine whether any company or market-specific factors exist indicating that such decline is other-than-temporary. Greater than nine months Generally, considered other-than-temporary. The decline in value is recorded as a charge to earnings. Additionally, in situations where the fair value of a debt security is below its carrying amount, we consider the decline to be other-than-temporary and record a charge to earnings if any of the following factors apply: · we have the intent to sell the security, · it is more likely than not that we will be required to sell the security before maturity or recovery, or · we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. In general, we use the first in, first out method to determine the cost basis on sales of marketable investment securities. |
Trade Accounts Receivable | Trade Accounts Receivable Management estimates the amount of required allowances for the potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. However, past experience may not be indicative of future collections and therefore additional charges could be incurred in the future to reflect differences between estimated and actual collections. |
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. |
Property and Equipment | Property and Equipment Property and equipment are stated at amortized cost less impairment losses, if any. The costs of satellites under construction, including interest and certain amounts prepaid under our satellite service agreements, are capitalized during the construction phase, assuming the eventual successful launch and in-orbit operation of the satellite. If a satellite were to fail during launch or 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 one 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. Costs related to the procurement and development of software for internal-use are capitalized and amortized using the straight-line method over the estimated useful life of the software. |
Impairment of Long-Lived Assets | Impairment of Long-Lived 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. 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. Once 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. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The carrying amount of a long-lived asset or asset group is considered impaired when the anticipated undiscounted cash flows from such asset or asset group is less than its carrying amount. In that event, a loss is recorded in “Impairment of long-lived assets” 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. 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. See Note 6 for further information. 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, 2017. |
Indefinite Lived Intangible Assets | 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. Intangible assets that have finite lives are amortized over their estimated useful lives and tested for impairment as described above for long-lived assets. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our DBS 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 DBS 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 FCC 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 2017, 2016 and 2015, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS FCC licenses exceeds its carrying amount. In our assessment, we considered several qualitative 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 FCC licenses exceeds its carrying amount. As such, no further analysis was required. |
Other Investment Securities | Other Investment Securities Generally, we account for our unconsolidated equity investments under either the equity method or cost method of accounting. Because these equity securities are generally not publicly traded, it is not practical to regularly estimate the fair value of the investments; however, these investments are subject to an evaluation for other-than-temporary impairment on a quarterly basis. This quarterly evaluation consists of reviewing, among other things, company business plans, current financial statements and key financial metrics, if available, for factors that may indicate an impairment of our investment. Such factors may include, but are not limited to, cash flow concerns, material litigation, violations of debt covenants and changes in business strategy. The fair value of these equity investments is not estimated unless there are identified changes in circumstances that may indicate an impairment exists and these changes are likely to have a significant adverse effect on the fair value of the investment. |
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 “Subscriber-related expenses” 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 and Accounting for Uncertainty in 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. Accounting for Uncertainty in Income Taxes 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 · 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, 2017 and 2016, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) equals or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. 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, related 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 7 for the fair value of our long-term debt. |
Deferred Debt Issuance Costs | Deferred Debt Issuance Costs Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 7 for further information. |
Revenue Recognition | Revenue Recognition We recognize revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered. Revenue from our Pay-TV services is recognized when programming is broadcast to subscribers. Payments received from our Pay-TV subscribers in advance of the broadcast or service period are recorded as “Deferred revenue and other” on our Consolidated Balance Sheets until earned. Revenue from equipment sales generally is recognized upon shipment to customers. For certain of our promotions, subscribers are charged an upfront fee. A portion of these fees may be deferred and recognized over the estimated subscriber life for new subscribers or the estimated remaining life for existing subscribers ranging from four to five years. Revenue from advertising sales is recognized when the related services are performed. Subscriber fees for DISH TV equipment rental fees and other hardware related fees, including fees for DVRs, fees for equipment and additional outlet fees, advertising services and fees earned from our in-home service operations are recognized as revenue as earned. Generally, revenue from equipment sales, equipment upgrades and sales of streaming-capable devices for our Sling TV services are recognized upon shipment to customers. Certain of our existing and new subscriber promotions include programming discounts. Programming revenues are recorded as earned at the discounted monthly rate charged to the subscriber. We offer our customers the opportunity to download movies for a specific viewing period or permanently purchase a movie from our website. We recognize revenue when the movie is successfully downloaded by the customer, which, based on our current technology, occurs at the time the customer plays the movie for the first time. |
Subscriber-Related Expenses | Subscriber-Related Expenses 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 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. “Subscriber-related expenses” on the Consolidated Statements of Operations and Comprehensive Income (Loss) principally include programming expenses, costs for Pay-TV services incurred in connection with our in-home service and call center operations, billing costs, refurbishment and repair costs related to DBS receiver systems, subscriber retention and other variable subscriber expenses. These costs are recognized as the services are performed or as incurred. |
Cost of Sales – Equipment and Other | Cost of Sales – Equipment and Other Costs include the cost of non-subsidized sales of DBS accessories and the cost of sales of digital receivers and related components to third-party pay-TV providers, both of which include freight and royalties. Costs are generally recognized as products are delivered to customers and the related revenue is recognized. |
Subscriber Acquisition Costs | Subscriber Acquisition Costs Subscriber acquisition costs on our Consolidated Statements of Operations and Comprehensive Income (Loss) consist of costs incurred to acquire new Pay-TV subscribers through independent third-party retailers, third-party marketing agreements and our direct sales distribution channel. Subscriber acquisition costs include the following line items from our Consolidated Statements of Operations and Comprehensive Income (Loss): · “Cost of sales - subscriber promotion subsidies” includes the cost of our DBS receiver systems sold to independent third-party retailers and other distributors of our equipment and DBS receiver systems sold directly by us to DISH TV subscribers. · “Other subscriber acquisition costs” includes net costs related to promotional incentives and costs related to installation and other promotional subsidies for our DISH TV services as well as our direct sales efforts and commissions for our Sling TV services. · “Subscriber acquisition advertising” includes advertising and marketing expenses related to the acquisition of new Pay-TV subscribers. Advertising costs are expensed as incurred. We characterize amounts paid to our independent third-party retailers as consideration for equipment installation services and for equipment buydowns (incentives and rebates) as a reduction of revenue. We expense payments for equipment installation services as “Other subscriber acquisition costs.” Our payments for equipment buydowns represent a partial or complete return of the independent third-party retailer’s purchase price and are, therefore, netted against the proceeds received from the independent third-party retailer. We report the net cost from our various sales promotions through our independent third-party retailer network as a component of “Other subscriber acquisition costs.” |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development costs totaled $33 million, $41 million and $46 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Equipment Lease Programs | Equipment Lease Programs 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. |
New Accounting Pronouncements | New Accounting Pronouncements Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), and has modified the standard thereafter. ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance. ASU 2014-09 also includes ASC 340-40 which codifies the guidance on other assets and deferred costs relating to contracts with customers. ASC 340-40 specifies the accounting treatment for costs an entity incurs to obtain and fulfill a contract to provide goods and services to customers. ASU 2014-09 became effective for us on January 1, 2018 and we elected to adopt the standard using the modified retrospective method. The impacts of the standard to us will include, among other things, the following: · We will recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, will meet the requirements to be capitalized, and expenses incurred under these programs will therefore be capitalized and amortized over the estimated subscriber life, whereas our current policy is to expense these costs as incurred. · We will change the timing of revenue recognition for certain nonrefundable upfront fees received from our residential video subscribers as these fees will be accounted for as implied performance obligations in the form of a material right to the customer related to the customer’s option to renew without having to pay an additional fee upon renewal. · Certain contracts related to our commercial, advertising, and equipment sales have one-time payments and deliverables that are significant to those contracts and for which the timing of revenue recognition will change. Note that while the one-time payments are significant to the contracts themselves, these contracts are not significant to our overall results of operations. We have concluded that for our residential video customers under a contract, the contract term under ASU 2014-09 is one month. Accordingly, while there will be changes in the way certain upfront fees and other items are recognized as discussed above, we do not believe at this time there will be a material change to our revenue recognition model for our residential video customers. Under the modified retrospective method we will recognize an asset for capitalized commission costs only for customers for which their initial contract was considered open as of January 1, 2018. We are currently in the process of applying the new guidance to all open contracts as of January 1, 2018 with existing customers and will recognize in beginning retained earnings an adjustment for the cumulative effect of the change, which we believe will be immaterial. We will provide additional disclosures for periods ending in 2018 comparing the results under previous guidance to those under the new standard. Recognition and Measurement of Financial Assets and Financial Liabilities . On January 5, 2016, the FASB issued ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) , which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We expect that the adoption of ASU 2016-01 will have an immaterial impact on our Consolidated Financial Statements and related disclosures. Statement of Cash Flows - Update. On August 26, 2016, the FASB issued 2016-15 Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). This update consists of eight provisions that provide guidance on the classification of certain cash receipts and cash payments. If practicable, this update should be applied using a retrospective transition method to each period presented. For the provisions that are impracticable to apply retrospectively, those provisions may be applied prospectively as of the earliest date practicable. This update will become effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We expect that the adoption of ASU 2016-15 will have an immaterial impact on our Consolidated Financial Statements and related disclosures. Statement of Cash Flows: Restricted Cash. On November 17, 2016, the FASB issued ASU 2016-18 Restricted Cash (“ASU 2016-18”) , which addresses the diversity where changes in restricted cash are classified on the cash flow statement. ASU 2016-18 requires that changes in restricted cash and cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We expect that the adoption of ASU 2016-18 will have an immaterial impact on our Consolidated Financial Statements and related disclosures. Leases. On February 25, 2016, the FASB issued ASU 2016-02 Leases (“ASU 2016-02”), which relates to the accounting of leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our Consolidated Financial Statements and related disclosures. Financial Instruments – Credit Losses. On June 16, 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the way entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net earnings. This standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are evaluating the impact the adoption of ASU 2016-13 will have on our Consolidated Financial Statements and related disclosures. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |
Summary of income loss as if the results of transferred business were included in the results of the entity | DISH DBS (as previously reported) Adjustments Relating to the Transferred Businesses DISH DBS (as currently reported) (In thousands) For the Year Ended December 31, 2016: Total revenue $ 14,637,043 $ 118,896 $ 14,755,939 Net income (loss) attributable to DISH DBS $ 916,528 $ 48,086 $ 964,614 For the Year Ended December 31, 2015: Total revenue $ 14,638,249 $ 157,779 $ 14,796,028 Net income (loss) attributable to DISH DBS $ 780,135 $ 55,282 $ 835,417 |
Supplemental Data - Statement25
Supplemental Data - Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Data - Statements of Cash Flows | |
Schedule of supplemental cash flow and other non-cash data | For the Years Ended December 31, 2017 2016 2015 (In thousands) Cash paid for interest $ 878,772 $ 773,500 $ 852,679 Cash received for interest 9,855 2,936 5,609 Cash paid for income taxes 29,961 25,839 2,632 Cash paid for income taxes to DISH Network 408,265 551,693 558,220 Capitalized interest 481 — — Satellites and other assets financed under capital lease obligations 1,573 7,850 7,931 |
Marketable Investment Securit26
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 (In thousands) Marketable investment securities: Current marketable investment securities: Trading $ 93,367 $ — Other 92,146 3,833 Total current marketable investment securities 185,513 3,833 Restricted marketable investment securities (1) 72,014 81,679 Total marketable investment securities 257,527 85,512 Restricted cash and cash equivalents (1) 393 681 Other investment securities: Other investment securities - equity method 113,460 25,098 Other investment securities - cost method — 8,150 Total other investment securities 113,460 33,248 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 371,380 $ 119,441 (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 components of available-for-sale investments | As of December 31, 2017 2016 Marketable Marketable Investment Unrealized Investment Unrealized Securities Gains Losses Net Securities Gains Losses Net (In thousands) Debt securities (including restricted): U.S. Treasury and agency securities $ 74,788 $ 22 $ (141) $ (119) $ 81,982 $ 13 $ (132) $ (119) Commercial paper 24,407 — (2) (2) — — — — Corporate securities 63,809 — (29) (29) 3,530 3 — 3 Other 1,156 — — — — — — — Total $ 164,160 $ 22 $ (172) $ (150) $ 85,512 $ 16 $ (132) $ (116) |
Schedule of available-for-sale securities in continuous unrealized loss position by length of time and their fair value | As of December 31, 2017 2016 Fair Unrealized Fair Unrealized Value Loss Value Loss (In thousands) Debt Securities: Less than 12 months $ 109,853 $ (53) $ 51,796 $ (131) 12 months or more 34,203 (119) 1,410 (1) Total $ 144,056 $ (172) $ 53,206 $ (132) |
Schedule of investments measured at fair value on a recurring basis | As of December 31, 2017 2016 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 315,030 $ 140 $ 314,890 $ — $ 702,331 $ 4,126 $ 698,205 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 74,788 $ 74,788 $ — $ — $ 81,982 $ 81,982 $ — $ — Commercial paper 24,407 — 24,407 — — — — — Corporate securities 63,809 — 63,809 — 3,530 — 3,530 — Other 1,156 — 1,156 — — — — — Equity Securities 93,367 93,367 — — — — — — Total $ 257,527 $ 168,155 $ 89,372 $ — $ 85,512 $ 81,982 $ 3,530 $ — |
Gains and Losses on Sales and Changes in Carrying Amounts of Investments | For the Years Ended December 31, Other, net: 2017 2016 2015 (In thousands) Marketable investment securities - gains (losses) on sales/exchanges $ 1,803 $ 32,509 $ 14,449 Marketable investment securities - unrealized gains (losses) on trading securities 85,217 — — Costs related to early redemption of debt (1,470) — — Equity in earnings 2,163 2,508 4,372 Other 798 (2,212) (1,005) Total $ 88,511 $ 32,805 $ 17,816 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory | |
Schedule of inventory | As of December 31, 2017 2016 (In thousands) Finished goods $ 248,233 $ 282,569 Work-in-process and service repairs 54,445 129,486 Raw materials 18,221 10,268 Total inventory $ 320,899 $ 422,323 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property and Equipment | |
Schedule of property and equipment | Depreciable Life As of December 31, (In Years) 2017 2016 (In thousands) Equipment leased to customers 2-5 $ 2,264,653 $ 2,630,269 EchoStar XV 15 277,658 277,658 Satellites acquired under capital lease agreements 10-15 499,819 499,819 Furniture, fixtures, equipment and other 1-10 1,680,492 1,541,838 Buildings and improvements 1-40 292,191 287,612 Land - 14,057 14,057 Construction in progress - 92,946 87,887 Total property and equipment 5,121,816 5,339,140 Accumulated depreciation (3,489,655) (3,448,772) Property and equipment, net $ 1,632,161 $ 1,890,368 |
Schedule of depreciation and amortization expense | For the Years Ended December 31, 2017 2016 2015 (In thousands) Equipment leased to customers $ 539,434 $ 643,114 $ 679,543 Satellites 61,045 61,045 61,045 Buildings, furniture, fixtures, equipment and other 141,293 128,276 130,408 Total depreciation and amortization $ 741,772 $ 832,435 $ 870,996 |
Schedule of pay-TV satellite fleet | Degree Estimated Useful Life Launch Orbital (Years) / Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 15 Leased from DISH Network (1): EchoStar XVIII June 2016 61.5 Month to month Leased from EchoStar (2): EchoStar VII (3) February 2002 119 June 2018 EchoStar IX August 2003 121 Month to month EchoStar X (3) February 2006 110 February 2021 EchoStar XI (3) July 2008 110 September 2021 EchoStar XIV (3) March 2010 119 February 2023 EchoStar XVI (4) November 2012 61.5 January 2023 Nimiq 5 September 2009 72.7 September 2019 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2019 (1) See Note 16 for further information on our Related Party Transactions with DISH Network. (2) See Note 16 for further information on our Related Party Transactions with EchoStar. (3) We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite. (4) We have the option to renew this lease for an additional five-year period. |
Schedule of identifiable intangibles subject to amortizatio | As of December 31, 2017 December 31, 2016 Intangible Accumulated Intangible Accumulated Assets Amortization Assets Amortization (In thousands) Technology-based $ 58,162 $ (47,746) $ 58,162 $ (44,289) Trademarks 35,010 (23,426) 46,140 (31,063) Contract-based 4,500 (4,500) 4,500 (4,500) Customer relationships 23,632 (23,632) 23,632 (23,632) Total $ 121,304 $ (99,304) $ 132,434 $ (103,484) |
Schedule of estimated future amortization of identifiable intangible assets | For the Years Ended December 31, 2018 $ 7,138 2019 5,792 2020 3,285 2021 835 2022 666 Thereafter 4,284 Total $ 22,000 |
Schedule of FCC Authorizations | As of December 31, 2017 2016 (In thousands) DBS Licenses $ 611,794 $ 611,794 MVDDS Licenses 24,000 24,000 Capitalized Interest 481 — Total $ 636,275 $ 635,794 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-Term Debt | |
Schedule of carrying and fair values of the entity's debt facilities | As of December 31, 2017 2016 Carrying Fair Value Carrying Fair Value (In thousands) 4 5/8% Senior Notes due 2017 (1) $ — $ — $ 900,000 $ 913,887 4 1/4% Senior Notes due 2018 (2) 1,025,861 1,031,596 1,200,000 1,228,464 7 7/8% Senior Notes due 2019 1,400,000 1,501,206 1,400,000 1,559,698 5 1/8% Senior Notes due 2020 1,100,000 1,127,588 1,100,000 1,141,866 6 3/4% Senior Notes due 2021 2,000,000 2,120,480 2,000,000 2,178,880 5 7/8% Senior Notes due 2022 2,000,000 2,014,140 2,000,000 2,114,780 5 % Senior Notes due 2023 1,500,000 1,432,335 1,500,000 1,500,315 5 7/8% Senior Notes due 2024 2,000,000 1,952,220 2,000,000 2,064,000 7 3/4% Senior Notes due 2026 2,000,000 2,118,400 2,000,000 2,270,900 Other notes payable 11,509 11,509 12,606 12,606 Subtotal 13,037,370 $ 13,309,474 14,112,606 $ 14,985,396 Unamortized deferred financing costs and debt discounts, net (31,041) (40,123) Capital lease obligations (3) 104,318 140,885 Total long-term debt and capital lease obligations (including current portion) $ 13,110,647 $ 14,213,368 (1) On July 17, 2017, we redeemed the principal balance of our 4 5/8% Senior Notes due 2017. (2) During 2017, we repurchased $174 million of our 4 1/4% Senior Notes due 2018 in open market trades. The remaining balance of $1.026 billion matures on April 1, 2018 and is included in “Current portion of long-term debt and capital lease obligations” on our Consolidated Balance Sheets as of December 31, 2017. (3) Disclosure regarding fair value of capital leases is not required. |
Schedule of interest on long-term debt | Annual Semi-Annual Debt Service Payment Dates Requirements (In thousands) 4 1/4% Senior Notes due 2018 April 1 and October 1 $ 51,000 7 7/8% Senior Notes due 2019 March 1 and September 1 $ 110,250 5 1/8% Senior Notes due 2020 May 1 and November 1 $ 56,375 6 3/4% Senior Notes due 2021 June 1 and December 1 $ 135,000 5 7/8% Senior Notes due 2022 January 15 and July 15 $ 117,500 5% Senior Notes due 2023 March 15 and September 15 $ 75,000 5 7/8% Senior Notes due 2024 May 15 and November 15 $ 117,500 7 3/4% Senior Notes due 2026 January 1 and July 1 $ 155,000 |
Schedule of other long term debt and capital lease obligations | As of December 31, 2017 2016 (In thousands) Satellites and other capital lease obligations $ 104,318 $ 140,885 Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6.0% 11,509 12,606 Total 115,827 153,491 Less: current portion (38,613) (38,832) Other long-term debt and capital lease obligations, net of current portion $ 77,214 $ 114,659 |
Future minimum lease payments under capital lease obligations | For the Years Ended December 31, 2018 $ 77,141 2019 50,719 2020 48,000 2021 48,000 2022 16,000 Thereafter — Total minimum lease payments 239,860 Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments (120,196) Net minimum lease payments 119,664 Less: Amount representing interest (15,346) Present value of net minimum lease payments 104,318 Less: Current portion (37,450) Long-term portion of capital lease obligations $ 66,868 |
Income Taxes and Accounting f30
Income Taxes and Accounting for Uncertainty in Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 2016 2015 (In thousands) Current (benefit) provision: Federal $ 356,759 $ 567,850 $ 528,005 State 54,133 64,453 35,988 Foreign 3,736 10,253 (3,089) Total current (benefit) provision 414,628 642,556 560,904 Deferred (benefit) provision: Federal (308,028) (83,638) (92,415) State 11,954 (837) 7,050 Increase (decrease) in valuation allowance (938) (495) (1,405) Total deferred (benefit) provision (297,012) (84,970) (86,770) Total (benefit) provision $ 117,616 $ 557,586 $ 474,134 |
Schedule of reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes | For the Years Ended December 31, 2017 2016 2015 % of pre-tax income/(loss) Statutory rate 35.0 35.0 35.0 State income taxes, net of federal benefit 4.2 2.9 2.5 Reversal of uncertain tax positions (0.2) (1.3) (0.7) Tax Reform Act (1) (34.5) — — Nondeductible/Nontaxable items (2) 11.5 — — Other, net (2.0) — (0.6) Total (benefit) provision for income taxes 14.0 36.6 36.2 (1) On December 22, 2017, the Tax Reform Act was enacted, which, among other things, lowered the federal statutory corporate tax rate effective for us in future periods from 35% to 21%. Consequently, we remeasured our deferred tax assets and liabilities as of December 31, 2017 which positively impacted our “Income tax (provision) benefit, net” by approximately $291 million. (2) During the year ended December 31, 2017, we recorded $255 million of “Litigation expense” related to the FTC Action on our Consolidated Statements of Operations and Comprehensive Income (Loss). Any eventual payments made with respect to the FTC Action may not be deductible for tax purposes, which had a negative impact on our effective tax rate for the year ended December 31, 2017. The tax deductibility of any eventual payments made with respect to the FTC Action may change, based upon, among other things, further developments in the FTC Action, including final adjudication of the FTC Action. See Note 11 in the Notes to our Consolidated Financial Statements in this Annual Report on Form 10-K for further information. |
Schedule of deferred tax assets and liabilities | As of December 31, 2017 2016 (In thousands) Deferred tax assets: NOL, credit and other carryforwards $ 11,197 $ 12,022 Accrued expenses 35,776 51,901 Stock-based compensation 14,875 17,659 Deferred revenue 15,236 19,064 Total deferred tax assets 77,084 100,646 Valuation allowance (5,887) (6,825) Deferred tax asset after valuation allowance 71,197 93,821 Deferred tax liabilities: Depreciation (394,528) (652,399) FCC authorizations and other intangible amortization (123,963) (200,285) Bases difference in partnerships and other investments (32,199) — Other liabilities (5,606) (18,040) Total deferred tax liabilities (556,296) (870,724) Net deferred tax asset (liability) $ (485,099) $ (776,903) |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits included in long-term deferred revenue, distribution and carriage payments and other long-term liabilities | For the Years Ended December 31, Unrecognized tax benefit 2017 2016 2015 (In thousands) Balance as of beginning of period $ 201,693 $ 203,053 $ 208,328 Additions based on tax positions related to the current year 684 39,752 12,502 Additions based on tax positions related to prior years 4,593 395 14,593 Reductions based on tax positions related to prior years (1,061) (34,761) (24,905) Reductions based on tax positions related to settlements with taxing authorities (1,634) (3,628) (2,648) Reductions based on tax positions related to the lapse of the statute of limitations (3,113) (3,118) (4,817) Balance as of end of period $ 201,162 $ 201,693 $ 203,053 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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 2017 2016 2015 (In thousands) Total matching contributions, net of forfeitures $ 7,070 $ 6,546 $ 6,145 Discretionary stock contributions, net of forfeitures $ 27,969 $ 23,158 $ 25,261 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock-Based Compensation | |
Schedule of exercise prices for stock options outstanding and exercisable associated with employees | Options Outstanding Options Exercisable Number Weighted- Weighted- Number Weighted- Weighted- $ — - $ 10.00 133,400 1.15 $ 6.33 133,400 1.15 $ 6.33 $ 10.01 - $ 20.00 1,232,537 2.49 $ 15.37 32,537 2.25 $ 15.13 $ 20.01 - $ 30.00 1,402,183 3.69 $ 27.13 862,183 3.65 $ 26.65 $ 30.01 - $ 40.00 1,219,586 4.96 $ 36.19 257,886 4.75 $ 35.06 $ 40.01 - $ 50.00 360,800 8.00 $ 46.21 67,600 7.39 $ 45.89 $ 50.01 - $ 60.00 2,910,878 8.40 $ 57.55 228,152 6.51 $ 57.16 $ 60.01 - $ 70.00 1,568,350 8.32 $ 64.26 170,850 6.37 $ 66.26 $ 70.01 - $ 80.00 20,000 2.00 $ 72.89 20,000 2.00 $ 72.89 $ — - $ 80.00 8,847,734 6.20 $ 43.90 1,772,608 4.35 $ 35.13 |
Schedule of stock option activity associated with employees | For the Years Ended December 31, 2017 2016 2015 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period 7,913,733 $ 36.22 6,807,169 $ 31.17 10,214,344 $ 25.29 Granted 3,468,626 $ 59.66 1,901,000 $ 54.41 452,000 $ 69.11 Exercised (505,125) $ 28.73 (403,834) $ 23.26 (1,731,975) $ 16.26 Forfeited and cancelled (2,029,500) $ 44.64 (390,602) $ 50.28 (2,127,200) $ 23.12 Total options outstanding, end of period 8,847,734 $ 43.90 7,913,733 $ 36.22 6,807,169 $ 31.17 Performance-based options outstanding, 5,490,626 $ 42.81 4,312,000 $ 31.39 3,904,500 $ 28.03 Exercisable at end of period 1,772,608 $ 35.13 1,883,533 $ 29.98 1,927,069 $ 26.87 (1) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2008 LTIP, 2013 LTIP, 2017 LTIP and Other Employee Performance Awards below. |
Schedule of realized tax benefits from stock awards exercised | For the Years Ended December 31, 2017 2016 2015 (In thousands) Tax benefit from stock awards exercised $ 9,347 $ 5,006 $ 33,716 |
Schedule of aggregate intrinsic value of stock options associated with employees | As of December 31, 2017 Options Options Outstanding Exercisable (In thousands) Aggregate intrinsic value $ 88,990 $ 28,175 |
Schedule of restricted stock unit activity | For the Years Ended December 31, 2017 2016 2015 Restricted Weighted- Average Grant Date Fair Value Restricted Weighted- Average Grant Date Fair Value Restricted Weighted- Average Grant Date Fair Value Total restricted stock units/awards outstanding, beginning 1,336,000 $ 32.11 1,382,250 $ 32.01 1,731,332 $ 32.60 Granted 1,871,375 $ 63.87 67,060 $ 56.35 62,530 $ 68.79 Vested (14,845) $ 62.58 (60) $ 49.15 (125,280) $ 63.92 Forfeited and cancelled (707,810) $ 48.59 (113,250) $ 45.12 (286,332) $ 29.67 Total restricted stock units/awards outstanding, end 2,484,720 $ 51.16 1,336,000 $ 32.11 1,382,250 $ 32.01 Restricted Performance Units/Awards outstanding, 2,435,500 $ 50.91 1,336,000 $ 32.11 1,382,250 $ 32.01 (1) These stock options are included in the caption “Total restricted stock units/awards outstanding, end of period.” See discussion of the 2008 LTIP, 2013 LTIP, 2017 LTIP and Other Employee Performance Awards below. |
Schedule of non-cash, stock-based compensation expense recognized | For the Years Ended December 31, Non-Cash, Stock-Based Compensation Expense Recognized 2017 2016 2015 (In thousands) 2017 LTIP $ 10,640 $ — $ — 2013 LTIP (1) (321) 2,565 10,157 Other employee performance awards 7,549 1,424 1,694 Total non-cash, stock-based compensation expense recognized for performance-based awards $ 17,868 $ 3,989 $ 11,851 (1) “Non-Cash, Stock-Based Compensation Expense Recognized” includes forfeitures. |
Schedule of unrecognized non-cash, stock-based compensation expense | Estimated Remaining Non-Cash, Stock-Based Compensation Expense 2017 LTIP 2013 LTIP Other Employee Performance Awards (In thousands) Expense estimated to be recognized during 2018 $ 8,271 $ 1,974 $ 17,946 Estimated contingent expense subsequent to 2018 18,694 39,234 123,655 Total estimated remaining expense over the term of the plan $ 26,965 $ 41,208 $ 141,601 |
Schedule of awards outstanding pursuant to performance-based stock incentive plans | As of December 31, 2017 Performance-Based Stock Options Number of Weighted- 2017 LTIP 2,545,626 $ 59.38 2013 LTIP 1,205,000 $ 41.78 Other employee performance awards 1,740,000 $ 19.27 Total 5,490,626 $ 42.81 Restricted Performance Units/Awards 2013 LTIP 602,500 Other employee performance awards 1,833,000 Total 2,435,500 |
Schedule of allocated non-cash, stock-based compensation expense for all employees | For the Years Ended December 31, 2017 2016 2015 (In thousands) Subscriber-related $ 3,323 $ 694 $ 2,164 General and administrative 26,618 12,343 17,035 Total non-cash, stock based compensation $ 29,941 $ 13,037 $ 19,199 |
Schedule of assumptions of Black-Scholes option valuation model | For the Years Ended December 31, Stock Options 2017 2016 2015 Risk-free interest rate 1.34 % - 2.29 % 1.06 % - 2.27 % 1.40 % - 2.19 % Volatility factor 22.25 % - 26.15 % 26.12 % - 33.37 % 26.42 % - 36.22 % Expected term of options in years 3.8 - 5.5 5.4 - 10.0 5.5 - 7.8 Weighted-average fair value of options granted $ 11.95 - $ 16.69 $ 12.45 - $ 26.86 $ 16.14 - $ 29.73 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies | |
Schedule of future maturities of long-term debt, capital lease and contractual obligations | Payments due by period Total 2018 2019 2020 2021 2022 Thereafter (In thousands) Long-term debt obligations $ 13,037,370 $ 1,027,024 $ 1,401,233 $ 1,101,306 $ 2,001,385 $ 2,001,468 $ 5,504,954 Capital lease obligations 104,318 37,451 19,896 19,137 20,615 7,219 — Interest expense on long-term debt and capital lease obligations 4,092,785 796,742 771,496 631,593 534,350 465,498 893,106 Satellite-related obligations 1,233,242 348,617 301,102 241,371 208,196 125,636 8,320 Operating lease obligations 198,890 48,029 33,125 25,404 19,996 13,556 58,780 Purchase obligations 1,449,556 1,283,645 134,859 16,019 8,833 6,200 — Total $ 20,116,161 $ 3,541,508 $ 2,661,711 $ 2,034,830 $ 2,793,375 $ 2,619,577 $ 6,465,160 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Geographic Information | |
Schedule of revenue by geographical region | For the Years Ended December 31, Revenue: 2017 2016 2015 (In thousands) United States $ 13,967,694 $ 14,655,469 $ 14,661,458 Canada and Mexico 39,817 100,470 134,570 Total revenue $ 14,007,511 $ 14,755,939 $ 14,796,028 |
Valuation and Qualifying Acco35
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts | |
Summary of activity in the allowance for doubtful accounts | Allowance for doubtful accounts Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year (In thousands) For the years ended: December 31, 2017 $ 17,440 $ 124,143 $ (126,527) $ 15,056 December 31, 2016 $ 21,769 $ 149,599 $ (153,928) $ 17,440 December 31, 2015 $ 25,414 $ 94,186 $ (97,831) $ 21,769 |
Quarterly Financial Data (Una36
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017: Total revenue $ 3,570,959 $ 3,543,812 $ 3,491,559 $ 3,401,181 Operating income (loss) 588,793 219,720 424,559 376,804 Net income (loss) attributable to DISH DBS 241,715 (95,656) 158,424 419,043 Year ended December 31, 2016: Total revenue $ 3,712,632 $ 3,747,296 $ 3,653,774 $ 3,642,237 Operating income (loss) 594,942 639,143 517,454 557,582 Net income (loss) attributable to DISH DBS 272,835 277,032 188,141 226,606 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of related party transaction | For the Years Ended December 31, 2017 2016 2015 (In thousands) Purchases (including fees): Purchases from NagraStar $ 71,167 $ 84,459 $ 108,745 As of December 31, 2017 2016 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 16,685 $ 18,597 Commitments to NagraStar $ 4,927 $ 2,716 |
Dish Mexico | |
Schedule of related party transaction | For the Years Ended December 31, 2017 2016 2015 (In thousands) Sales: Digital receivers and related components $ 1,891 $ 52,324 $ 66,779 Uplink services $ 3,994 $ 4,059 $ 4,926 As of December 31, 2017 2016 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 3,027 $ 13,516 |
Organization and Business Act38
Organization and Business Activities (Details) customer in Thousands | Dec. 31, 2017customer |
DISH TV subscribers | |
Organization and Business Activities | |
Number of subscribers | 11,030 |
Sling TV subscribers | |
Organization and Business Activities | |
Number of subscribers | 2,212 |
Pay TV Subscribers | |
Organization and Business Activities | |
Number of subscribers | 13,242 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Feb. 28, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Significant accounting policies | ||||
Maturity period of cash equivalents | 90 days | |||
Research and Development | ||||
Research and Development Expense | $ 33,000 | $ 41,000 | $ 46,000 | |
Dish DBS | ||||
Significant accounting policies | ||||
Total revenue | 14,755,939 | 14,796,028 | ||
Net income (loss) attributable to Dish DBS | 964,614 | 835,417 | ||
Previously reported | Dish DBS | ||||
Significant accounting policies | ||||
Total revenue | 14,637,043 | 14,638,249 | ||
Net income (loss) attributable to Dish DBS | 916,528 | 780,135 | ||
Adjustment | Dish DBS | ||||
Significant accounting policies | ||||
Total revenue | 118,896 | 157,779 | ||
Net income (loss) attributable to Dish DBS | $ 48,086 | $ 55,282 | ||
EchoStar | Satellite and Tracking Stock Transaction | ||||
Significant accounting policies | ||||
Preferred tracking stock issued by related party | 6,290,499 | |||
HSSC | Satellite and Tracking Stock Transaction | ||||
Significant accounting policies | ||||
Preferred tracking stock issued by related party | 81.128 | |||
Minimum | ||||
Marketable Investment Securities | ||||
The length of time an investment has been in a continuous loss position in which the decline in value would be evaluated on a case by case basis to determine if the decline in value is other-than-temporary | 6 months | |||
Length of time an investment has been in a continuous loss position in which the decline in value is considered other-than-temporary | 9 months | |||
Property and Equipment | ||||
Useful life of property and equipment | 1 year | |||
Revenue Recognition | ||||
Period of deferral for the portion of subscriber fees that are deferred | 4 years | |||
Maximum | ||||
Marketable Investment Securities | ||||
Length of time an investment has been in a continuous loss position in which the decline in value is considered as temporary | 6 months | |||
The length of time an investment has been in a continuous loss position in which the decline in value would be evaluated on a case by case basis to determine if the decline in value is other-than-temporary | 9 months | |||
Property and Equipment | ||||
Useful life of property and equipment | 40 years | |||
Long-Term Deferred Revenue, Distribution and Carriage Payments | ||||
Deferred upfront payment, amortization period | 10 years | |||
Revenue Recognition | ||||
Period of deferral for the portion of subscriber fees that are deferred | 5 years | |||
Sling TV Holding | EchoStar | ||||
Significant accounting policies | ||||
Ownership percentage owned by noncontrolling owners | 10.00% | |||
Nonvoting Interest Prior To Share Exchange | 10.00% |
Supplemental Data - Statement40
Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Data - Statements of Cash Flows | |||
Cash paid for interest | $ 878,772 | $ 773,500 | $ 852,679 |
Cash received for interest | 9,855 | 2,936 | 5,609 |
Cash paid for income taxes | 29,961 | 25,839 | 2,632 |
Cash paid for income taxes to DISH Network | 408,265 | 551,693 | 558,220 |
Capitalized interest | 481 | ||
Satellites and other assets financed under capital lease obligations | $ 1,573 | $ 7,850 | $ 7,931 |
Marketable Investment Securit41
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2017 | Dec. 31, 2016 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Trading | $ 93,367 | ||
Other | 92,146 | $ 3,833 | |
Total current marketable investment securities | 185,513 | 3,833 | |
Restricted marketable investment securities(1) | 72,014 | 81,679 | |
Total marketable investment securities | 257,527 | 85,512 | |
Restricted cash and cash equivalents (1) | 393 | 681 | |
Other investment securities - equity method | 113,460 | 25,098 | |
Other investment securities - cost method | 8,150 | ||
Total other investment securities | 113,460 | 33,248 | |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | 371,380 | $ 119,441 | |
Marketable investment securities - unrealized gains (losses) on trading securities | $ 85,217 | ||
Maximum maturities of commercial paper | 365 days | ||
Maximum maturities of corporate securities | 18 months | ||
Marketable investment securities - unrealized gains (losses) on trading securities | $ 85,217 | ||
NagraStar L.L.C | |||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Interest on equity method investment | 50.00% |
Marketable Investment Securit42
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Unrealized Gains (Losses) On Marketable Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accumulated net unrealized gains (losses) | ||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | $ (150) | $ (116) |
Accumulated net unrealized gains, net of tax, in accumulated other comprehensive income (loss) | 1,000 | |
Components of available-for-sale investments | ||
Debt security | 164,160 | 85,512 |
Unrealized Gains (Losses) on Marketable Investment Securities | ||
Unrealized Gains | 22 | 16 |
Unrealized Losses | (172) | (132) |
Unrealized Gains Losses, Net | (150) | (116) |
Contractual maturities of restricted and non-restricted marketable investment securities | ||
Debt securities with contractual maturities within one year | 164,000 | |
U.S. Treasury and agency securities | ||
Accumulated net unrealized gains (losses) | ||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | (119) | (119) |
Components of available-for-sale investments | ||
Debt security | 74,788 | 81,982 |
Unrealized Gains (Losses) on Marketable Investment Securities | ||
Unrealized Gains | 22 | 13 |
Unrealized Losses | (141) | (132) |
Unrealized Gains Losses, Net | (119) | (119) |
Commercial paper | ||
Accumulated net unrealized gains (losses) | ||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | (2) | |
Components of available-for-sale investments | ||
Debt security | 24,407 | |
Unrealized Gains (Losses) on Marketable Investment Securities | ||
Unrealized Losses | (2) | |
Unrealized Gains Losses, Net | (2) | |
Corporate securities | ||
Accumulated net unrealized gains (losses) | ||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | (29) | 3 |
Components of available-for-sale investments | ||
Debt security | 63,809 | 3,530 |
Unrealized Gains (Losses) on Marketable Investment Securities | ||
Unrealized Gains | 3 | |
Unrealized Losses | (29) | |
Unrealized Gains Losses, Net | (29) | $ 3 |
Other (including restricted) | ||
Components of available-for-sale investments | ||
Debt security | $ 1,156 |
Marketable Investment Securit43
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Changes in Estimated Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Total | $ 144,056 | $ 53,206 |
Unrealized Loss, Total | (172) | (132) |
Debt Securities | ||
Less than 12 Months | 109,853 | 51,796 |
12 Months or More | 34,203 | 1,410 |
Less than 12 months | (53) | (131) |
12 months or more | $ (119) | $ (1) |
Marketable Investment Securit44
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair value of marketable securities | ||
Debt securities | $ 185,513 | $ 3,833 |
Debt security | 164,160 | 85,512 |
Equity Securities | 93,367 | |
Total marketable investment securities | 257,527 | 85,512 |
Transfer of investments from Level 1 to Level 2 | 0 | 0 |
Transfer of investments from Level 2 to Level 1 | 0 | |
U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Debt security | 74,788 | 81,982 |
Commercial paper | ||
Fair value of marketable securities | ||
Debt security | 24,407 | |
Corporate securities | ||
Fair value of marketable securities | ||
Debt security | 63,809 | 3,530 |
Other (including restricted) | ||
Fair value of marketable securities | ||
Debt security | 1,156 | |
Fair value measurements on recurring basis | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 315,030 | 702,331 |
Equity Securities | 93,367 | |
Total marketable investment securities | 257,527 | 85,512 |
Fair value measurements on recurring basis | U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Debt security | 74,788 | 81,982 |
Fair value measurements on recurring basis | Commercial paper | ||
Fair value of marketable securities | ||
Debt security | 24,407 | |
Fair value measurements on recurring basis | Corporate securities | ||
Fair value of marketable securities | ||
Debt security | 63,809 | 3,530 |
Fair value measurements on recurring basis | Other (including restricted) | ||
Fair value of marketable securities | ||
Debt security | 1,156 | |
Fair value measurements on recurring basis | Level 1 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 140 | 4,126 |
Equity Securities | 93,367 | |
Total marketable investment securities | 168,155 | 81,982 |
Fair value measurements on recurring basis | Level 1 | U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Debt security | 74,788 | 81,982 |
Fair value measurements on recurring basis | Level 2 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 314,890 | 698,205 |
Total marketable investment securities | 89,372 | 3,530 |
Fair value measurements on recurring basis | Level 2 | Commercial paper | ||
Fair value of marketable securities | ||
Debt security | 24,407 | |
Fair value measurements on recurring basis | Level 2 | Corporate securities | ||
Fair value of marketable securities | ||
Debt security | 63,809 | $ 3,530 |
Fair value measurements on recurring basis | Level 2 | Other (including restricted) | ||
Fair value of marketable securities | ||
Debt security | $ 1,156 |
Marketable Investment Securit45
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Gains And Losses On Sales And Changes In Carrying Amounts Of Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |||
Marketable investment securities - gains (losses) on sales/exchanges | $ 1,803 | $ 32,509 | $ 14,449 |
Marketable investment securities - unrealized gains (losses) on trading securities | 85,217 | ||
Costs related to early redemption of debt | (1,470) | ||
Equity in earnings | 2,163 | 2,508 | 4,372 |
Other | 798 | (2,212) | (1,005) |
Total | $ 88,511 | $ 32,805 | $ 17,816 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory | ||
Finished goods | $ 248,233 | $ 282,569 |
Work-in-process and service repairs | 54,445 | 129,486 |
Raw materials | 18,221 | 10,268 |
Total Inventory | $ 320,899 | $ 422,323 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property and Equipment | ||
Total property and equipment | $ 5,121,816 | $ 5,339,140 |
Accumulated depreciation | (3,489,655) | (3,448,772) |
Property and equipment, net | $ 1,632,161 | 1,890,368 |
Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 1 year | |
Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 40 years | |
Equipment Lease To Customers [Member] | ||
Property and Equipment | ||
Total property and equipment | $ 2,264,653 | 2,630,269 |
Equipment Lease To Customers [Member] | Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 2 years | |
Equipment Lease To Customers [Member] | Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 5 years | |
EchoStar XV | ||
Property and Equipment | ||
Total property and equipment | $ 277,658 | 277,658 |
Depreciable life of assets | 15 years | |
Satellites acquired under capital lease agreements | ||
Property and Equipment | ||
Total property and equipment | $ 499,819 | 499,819 |
Satellites acquired under capital lease agreements | Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 10 years | |
Satellites acquired under capital lease agreements | Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 15 years | |
Furniture, fixtures, equipment and other | ||
Property and Equipment | ||
Total property and equipment | $ 1,680,492 | 1,541,838 |
Furniture, fixtures, equipment and other | Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 1 year | |
Furniture, fixtures, equipment and other | Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 10 years | |
Buildings and improvements | ||
Property and Equipment | ||
Total property and equipment | $ 292,191 | 287,612 |
Buildings and improvements | Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 1 year | |
Buildings and improvements | Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 40 years | |
Land | ||
Property and Equipment | ||
Total property and equipment | $ 14,057 | 14,057 |
Construction in progress | ||
Property and Equipment | ||
Total property and equipment | $ 92,946 | $ 87,887 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Depreciation and amortization expense | |||
Depreciation and amortization expense | $ | $ 741,772 | $ 832,435 | $ 870,996 |
Equipment leased to customers | |||
Depreciation and amortization expense | |||
Depreciation and amortization expense | $ | 539,434 | 643,114 | 679,543 |
Satellites | |||
Depreciation and amortization expense | |||
Depreciation and amortization expense | $ | $ 61,045 | 61,045 | 61,045 |
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 12 | ||
Owned Satellites | 1 | ||
Number of satellites utilized under operating lease | 8 | ||
Number of satellites utilized under capital lease | 2 | ||
Buildings, furniture, fixtures, equipment and other | |||
Depreciation and amortization expense | |||
Depreciation and amortization expense | $ | $ 141,293 | $ 128,276 | $ 130,408 |
Dish Network [Member] | Satellites | |||
Depreciation and amortization expense | |||
Number of satellites utilized under operating lease | 1 |
Property and Equipment - Pay TV
Property and Equipment - Pay TV Satellites (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Property and Equipment | |||
Number of other satellites to be relocated in the event of failure or loss of any satellite | item | 1 | ||
Depreciation and amortization | $ 741,772 | $ 832,435 | $ 870,996 |
FCC authorizations | 636,275 | 635,794 | |
Capitalized interest | 481 | ||
DBS Licenses | |||
Property and Equipment | |||
FCC authorizations | 611,794 | 611,794 | |
MVDDS Licenses | |||
Property and Equipment | |||
FCC authorizations | $ 24,000 | $ 24,000 | |
Minimum | |||
Property and Equipment | |||
Depreciable life of assets | 1 year | ||
Maximum | |||
Property and Equipment | |||
Depreciable life of assets | 40 years | ||
EchoStar XV | |||
Property and Equipment | |||
Depreciable life of assets | 15 years | ||
EchoStar XVI | |||
Property and Equipment | |||
Option to renew the lease for an additional period | 5 years |
Property and Equipment - Intang
Property and Equipment - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Assets | |||
Intangible Assets | $ 121,304 | $ 132,434 | |
Accumulated Amortization | (99,304) | (103,484) | |
Amortization expenses | $ 7,000 | 8,000 | $ 8,000 |
Minimum | |||
Intangible Assets | |||
Useful life | 5 years | ||
Maximum | |||
Intangible Assets | |||
Useful life | 20 years | ||
Technology-based | |||
Intangible Assets | |||
Intangible Assets | $ 58,162 | 58,162 | |
Accumulated Amortization | (47,746) | (44,289) | |
Trademarks | |||
Intangible Assets | |||
Intangible Assets | 35,010 | 46,140 | |
Accumulated Amortization | (23,426) | (31,063) | |
Contract-based | |||
Intangible Assets | |||
Intangible Assets | 4,500 | 4,500 | |
Accumulated Amortization | (4,500) | (4,500) | |
Customer relationships | |||
Intangible Assets | |||
Intangible Assets | 23,632 | 23,632 | |
Accumulated Amortization | $ (23,632) | $ (23,632) |
Property and Equipment - Estima
Property and Equipment - Estimated future amortization (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Estimated future amortization of identifiable intangible assets | |
2,018 | $ 7,138 |
2,019 | 5,792 |
2,020 | 3,285 |
2,021 | 835 |
2,022 | 666 |
Thereafter | 4,284 |
Finite-Lived Intangible Assets, Net, Total | $ 22,000 |
Long-Term Debt - Long term debt
Long-Term Debt - Long term debt (Details) - USD ($) $ in Thousands | Jun. 13, 2016 | Nov. 20, 2014 | Apr. 05, 2013 | Jul. 26, 2012 | May 05, 2011 | Oct. 05, 2009 | Aug. 17, 2009 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 27, 2012 | May 16, 2012 |
Long-term debt | ||||||||||||||
Carrying Value | $ 13,037,370 | $ 14,112,606 | ||||||||||||
Fair Value | 13,309,474 | 14,985,396 | ||||||||||||
Unamortized deferred financing costs and debt discount, net | (31,041) | (40,123) | ||||||||||||
Capital lease obligations (3) | 104,318 | 140,885 | ||||||||||||
Total long-term debt and capital lease obligations (including current portion) | $ 13,110,647 | 14,213,368 | ||||||||||||
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101.00% | |||||||||||||
Principal balance of debt redeemed | $ 1,074,139 | 1,500,000 | $ 650,001 | |||||||||||
4 5/8% Senior Notes due 2017 | ||||||||||||||
Long-term debt | ||||||||||||||
Carrying Value | 900,000 | |||||||||||||
Fair Value | $ 913,887 | |||||||||||||
Interest rate (as a percent) | 4.625% | 4.625% | ||||||||||||
4 1/4% Senior Notes due 2018 | ||||||||||||||
Long-term debt | ||||||||||||||
Carrying Value | $ 1,025,861 | $ 1,200,000 | ||||||||||||
Fair Value | $ 1,031,596 | $ 1,228,464 | ||||||||||||
Interest rate (as a percent) | 4.25% | 4.25% | ||||||||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||||||
Aggregate principal amount | $ 1,200,000 | |||||||||||||
Term of debt instrument | 5 years | |||||||||||||
Annual Debt Service Requirements | $ 51,000 | |||||||||||||
Debt repurchased | 174,000 | |||||||||||||
7 7/8% Senior Notes due 2019 | ||||||||||||||
Long-term debt | ||||||||||||||
Carrying Value | 1,400,000 | $ 1,400,000 | ||||||||||||
Fair Value | $ 1,501,206 | $ 1,559,698 | ||||||||||||
Interest rate (as a percent) | 7.875% | 7.875% | ||||||||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||||||
Aggregate principal amount | $ 400,000 | $ 1,000,000 | ||||||||||||
Term of debt instrument | 10 years | 10 years | ||||||||||||
Annual Debt Service Requirements | $ 110,250 | |||||||||||||
5 1/8% Senior Notes due 2020 | ||||||||||||||
Long-term debt | ||||||||||||||
Carrying Value | 1,100,000 | $ 1,100,000 | ||||||||||||
Fair Value | $ 1,127,588 | $ 1,141,866 | ||||||||||||
Interest rate (as a percent) | 5.125% | 5.125% | ||||||||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||||||
Aggregate principal amount | $ 1,100,000 | |||||||||||||
Term of debt instrument | 7 years | |||||||||||||
Annual Debt Service Requirements | $ 56,375 | |||||||||||||
6 3/4% Senior Notes due 2021 | ||||||||||||||
Long-term debt | ||||||||||||||
Carrying Value | 2,000,000 | $ 2,000,000 | ||||||||||||
Fair Value | $ 2,120,480 | $ 2,178,880 | ||||||||||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | |||||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||||||
Aggregate principal amount | $ 2,000,000 | |||||||||||||
Term of debt instrument | 10 years | |||||||||||||
Annual Debt Service Requirements | $ 135,000 | |||||||||||||
5 7/8% Senior Notes due 2022 | ||||||||||||||
Long-term debt | ||||||||||||||
Carrying Value | 2,000,000 | $ 2,000,000 | ||||||||||||
Fair Value | $ 2,014,140 | $ 2,114,780 | ||||||||||||
Interest rate (as a percent) | 5.875% | 5.875% | 5.875% | |||||||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||||||
Aggregate principal amount | $ 1,000,000 | $ 1,000,000 | ||||||||||||
Term of debt instrument | 10 years | |||||||||||||
Annual Debt Service Requirements | $ 117,500 | |||||||||||||
5% Senior Notes due 2023 | ||||||||||||||
Long-term debt | ||||||||||||||
Carrying Value | 1,500,000 | $ 1,500,000 | ||||||||||||
Fair Value | $ 1,432,335 | $ 1,500,315 | ||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | |||||||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||||||
Aggregate principal amount | $ 1,500,000 | |||||||||||||
Annual Debt Service Requirements | $ 75,000 | |||||||||||||
5 7/8% Senior Notes due 2024 | ||||||||||||||
Long-term debt | ||||||||||||||
Carrying Value | 2,000,000 | $ 2,000,000 | ||||||||||||
Fair Value | $ 1,952,220 | $ 2,064,000 | ||||||||||||
Interest rate (as a percent) | 5.875% | 5.875% | ||||||||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||||||
Aggregate principal amount | $ 2,000,000 | |||||||||||||
Term of debt instrument | 10 years | |||||||||||||
Annual Debt Service Requirements | $ 117,500 | |||||||||||||
7 3/4% Senior Notes due 2026 | ||||||||||||||
Long-term debt | ||||||||||||||
Carrying Value | 2,000,000 | $ 2,000,000 | ||||||||||||
Fair Value | $ 2,118,400 | $ 2,270,900 | ||||||||||||
Interest rate (as a percent) | 7.75% | 7.75% | ||||||||||||
Aggregate principal amount | $ 2,000,000 | |||||||||||||
Term of debt instrument | 10 years | |||||||||||||
Maximum percentage of the aggregate principal amount of notes with net proceeds of certain equity offerings or capital contributions | 35.00% | |||||||||||||
Annual Debt Service Requirements | $ 155,000 | |||||||||||||
Other notes payable | ||||||||||||||
Long-term debt | ||||||||||||||
Carrying Value | 11,509 | $ 12,606 | ||||||||||||
Fair Value | $ 11,509 | $ 12,606 |
Long-Term Debt - Other Long-ter
Long-Term Debt - Other Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other long-term debt and capital lease obligations | ||
Total | $ 115,827 | $ 153,491 |
Less current portion | (38,613) | (38,832) |
Other long-term debt and capital lease obligations, net of current portion | 77,214 | 114,659 |
Capital lease obligations. | ||
Other long-term debt and capital lease obligations | ||
Total | 104,318 | 140,885 |
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6% | ||
Other long-term debt and capital lease obligations | ||
Total | $ 11,509 | $ 12,606 |
Interest rate (as a percent) | 6.00% |
Long-Term Debt- Capital lease o
Long-Term Debt- Capital lease obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Capital lease obligations | |||
Estimated fair value of satellites acquired under capital leases | $ 500,000 | $ 500,000 | |
Accumulated depreciation on satellites acquired under capital leases | 407,000 | 365,000 | |
Depreciation expense - capital leases | 42,000 | $ 42,000 | $ 42,000 |
Future minimum lease payments under the capital lease obligation, together with the present value of the net minimum lease payments | |||
2,018 | 77,141 | ||
2,019 | 50,719 | ||
2,020 | 48,000 | ||
2,021 | 48,000 | ||
2,022 | 16,000 | ||
Total minimum lease payments | 239,860 | ||
Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments | (120,196) | ||
Net minimum lease payments | 119,664 | ||
Less: Amount representing interest | (15,346) | ||
Present value of net minimum lease payments | 104,318 | ||
Less: Current portion | (37,450) | ||
Long-term portion of capital lease obligations | $ 66,868 | ||
FSS Satellite Anik F3 | |||
Capital lease obligations | |||
Ku-band capacity leased (as a percent) | 100.00% | ||
Term of capital lease | 15 years | ||
Canadian DBS Satellite Ciel II | |||
Capital lease obligations | |||
Satellite capacity leased (as a percent) | 100.00% | ||
Initial term of capital lease | 10 years |
Income Taxes and Accounting f55
Income Taxes and Accounting for Uncertainty in Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net operating loss carryforwards | ||||
Cash paid for income taxes to DISH Network | $ 408,265 | $ 551,693 | $ 558,220 | |
Gain (Loss) Related to Litigation Settlement | (295,695) | (21,148) | (20,900) | |
Net operating loss carryforwards | 0 | |||
Current (provision) benefit: | ||||
Federal | 356,759 | 567,850 | 528,005 | |
State | 54,133 | 64,453 | 35,988 | |
Foreign | 3,736 | 10,253 | (3,089) | |
Total current (benefit) provision | 414,628 | 642,556 | 560,904 | |
Deferred (provision) benefit: | ||||
Federal | (308,028) | (83,638) | (92,415) | |
State | 11,954 | (837) | 7,050 | |
Increase (decrease) in valuation allowance | (938) | (495) | (1,405) | |
Total deferred (benefit) provision | (297,012) | (84,970) | (86,770) | |
Total (benefit) provision | 117,616 | 557,586 | 474,134 | |
Income (loss) before income taxes | 843,061 | $ 1,522,698 | $ 1,309,777 | |
Income (loss) from foreign operations | $ 1,000 | |||
Reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes | ||||
Statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | |
State income taxes, net of Federal benefit (as a percent) | 4.20% | 2.90% | 2.50% | |
Reveral of uncertain tax positions (as a percent) | (0.20%) | (1.30%) | (0.70%) | |
Tax Reform Act (1) | (34.50%) | |||
Nondeductible/Nontaxable items (2) | 11.50% | |||
Other (as a percent) | (2.00%) | (0.60%) | ||
Total (benefit) provision for income taxes | 14.00% | 36.60% | 36.20% | |
Impact on Income tax (provision) benefit by remeasurement of deferred tax assets and liabilities | $ 291,000 | |||
Litigation expense | 255,000 | |||
Deferred tax assets: | ||||
NOL, credit and other carryforwards | 11,197 | $ 12,022 | ||
Accrued expenses | 35,776 | 51,901 | ||
Stock-based compensation | 14,875 | 17,659 | ||
Deferred revenue | 15,236 | 19,064 | ||
Total deferred tax assets | 77,084 | 100,646 | ||
Valuation allowance | (5,887) | (6,825) | ||
Deferred tax asset after valuation allowance | 71,197 | 93,821 | ||
Deferred tax liabilities: | ||||
Depreciation | (394,528) | (652,399) | ||
FCC authorizations and other intangible amortization | (123,963) | (200,285) | ||
Bases difference in partnerships and other investments | (32,199) | |||
Other liabilities | (5,606) | (18,040) | ||
Total deferred tax liabilities | (556,296) | (870,724) | ||
Net deferred tax asset (liability) | (485,099) | (776,903) | ||
Reconciliation of the beginning and ending amount of unrecognized tax benefits included in long-term deferred revenue, distribution and carriage payments and other long-term liabilities | ||||
Balance as of beginning of period | $ 201,162 | 201,693 | 203,053 | $ 208,328 |
Additions based on tax positions related to the current year | 684 | 39,752 | 12,502 | |
Additions based on tax positions related to prior years | 4,593 | 395 | 14,593 | |
Reductions based on tax positions related to prior years | (1,061) | (34,761) | (24,905) | |
Reductions based on tax positions related to settlements with taxing authorities | (1,634) | (3,628) | (2,648) | |
Reductions based on tax positions related to the lapse of the statute of limitations | (3,113) | (3,118) | (4,817) | |
Balance as of end of period | 201,162 | 201,693 | 203,053 | |
Unrecognized tax benefits if recognized, could favorably affect our effective tax rate | 201,000 | |||
Interest and penalty (benefit) expense | 4,000 | 5,000 | $ 3,000 | |
Accrued interest and penalties | 24,000 | $ 20,000 | ||
Forecast | ||||
Reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes | ||||
Statutory rate (as a percent) | 21.00% | |||
State | ||||
Net operating loss carryforwards | ||||
Tax benefits related to credit carryforwards | $ 10,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
401(k) Employee Savings Plan | |||
Employer matching contribution as a percentage of voluntary employee contributions under 401(k) plan | 50.00% | ||
Employer maximum annual contribution per employee under 401(k) plan | $ 2,500 | ||
Expense recognized related to 401(k) plan | |||
Matching contributions, net of forfeitures, under 401(k) plan | 7,070,000 | $ 6,546,000 | $ 6,145,000 |
Discretionary stock contributions, net of forfeitures, under 401(k) plan | $ 27,969,000 | $ 23,158,000 | $ 25,261,000 |
Employee Stock Purchase Plan | |||
Expense recognized related to 401(k) 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 | |||
Expense recognized related to 401(k) plan | |||
Number of shares authorized to be issued under Employee Stock Purchase Plan (ESPP) | 2.8 | ||
Shares of common stock available for future grant under stock incentive plans | 0.4 | ||
Purchase price as percentage of closing market price on the last business day of each calendar quarter under ESPP | 85.00% | ||
Number of shares of common stock purchased under ESPP | 0.3 | 0.2 | 0.1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 8,847,734 | |||
DISH Network Awards | ||||
Stock-Based Compensation | ||||
Percentage of stock awards vesting per year (as a percent) | 20.00% | |||
Class A common stock | DISH Network Awards | ||||
Stock-Based Compensation | ||||
Shares of common stock available for future grant under stock incentive plans | 65,000,000 | |||
Stock Options | Maximum | ||||
Stock-Based Compensation | ||||
Expiration term | 10 years | |||
Stock Options | DISH Network Awards | ||||
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 8,847,734 | 7,913,733 | 6,807,169 | 10,214,344 |
Stock Options | Class A common stock | DISH Network Awards | ||||
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 8,800,000 | |||
Stock Options | Long-Term Performance Based Plans | DISH Network Awards | ||||
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 5,490,626 | 4,312,000 | 3,904,500 | |
Restricted Stock Units | Held by DISH DBS employees | DISH Network Awards | ||||
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 2,435,500 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Outstanding And Exercisable Associated With Employees (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 80 | |||
Number of stock options outstanding (in shares) | 8,847,734 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 6 years 2 months 12 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 43.90 | |||
Number of stock options exercisable | 1,772,608 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 4 years 4 months 6 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 35.13 | |||
Stock Options | DISH Network Awards | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Number of stock options outstanding (in shares) | 8,847,734 | 7,913,733 | 6,807,169 | 10,214,344 |
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 43.90 | $ 36.22 | $ 31.17 | $ 25.29 |
Number of stock options exercisable | 1,772,608 | 1,883,533 | 1,927,069 | |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 35.13 | $ 29.98 | $ 26.87 | |
Range of Exercise Prices $00.00 - $10.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 10 | |||
Number of stock options outstanding (in shares) | 133,400 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 1 year 1 month 24 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 6.33 | |||
Number of stock options exercisable | 133,400 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 1 year 1 month 24 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 6.33 | |||
Range Of Exercise Prices $10.01 - $20.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 10.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 20 | |||
Number of stock options outstanding (in shares) | 1,232,537 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 2 years 5 months 27 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 15.37 | |||
Number of stock options exercisable | 32,537 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 2 years 3 months | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 15.13 | |||
Range of Exercise Prices $20.01 - $30.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 20.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 30 | |||
Number of stock options outstanding (in shares) | 1,402,183 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 3 years 8 months 9 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 27.13 | |||
Number of stock options exercisable | 862,183 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 3 years 7 months 24 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 26.65 | |||
Range of Exercise Prices $30.01 - $40.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 30.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 40 | |||
Number of stock options outstanding (in shares) | 1,219,586 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 4 years 11 months 16 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 36.19 | |||
Number of stock options exercisable | 257,886 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 4 years 9 months | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 35.06 | |||
Range of Exercise Prices $40.01 - $50.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 40.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 50 | |||
Number of stock options outstanding (in shares) | 360,800 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 8 years | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 46.21 | |||
Number of stock options exercisable | 67,600 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 7 years 4 months 21 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 45.89 | |||
Range of Exercise Prices $50.01 - $60.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 50.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 60 | |||
Number of stock options outstanding (in shares) | 2,910,878 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 8 years 4 months 24 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 57.55 | |||
Number of stock options exercisable | 228,152 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 6 years 6 months 4 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 57.16 | |||
Range of Exercise Prices $60.01 - $70.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 60.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 70 | |||
Number of stock options outstanding (in shares) | 1,568,350 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 8 years 3 months 26 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 64.26 | |||
Number of stock options exercisable | 170,850 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 6 years 4 months 13 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 66.26 | |||
Range of Exercise Prices $70.01 - $70.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 70.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 80 | |||
Number of stock options outstanding (in shares) | 20,000 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 2 years | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 72.89 | |||
Number of stock options exercisable | 20,000 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 2 years | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 72.89 |
Stock-Based Compensation - St59
Stock-Based Compensation - Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock option activity | |||
Total options outstanding, end of period (in shares) | 8,847,734 | ||
Exercisable at the end of the period (in shares) | 1,772,608 | ||
Weighted-Average Exercise Price | |||
Total options outstanding at the end of the period (in dollars per share) | $ 43.90 | ||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 35.13 | ||
Stock Options | DISH Network Awards | |||
Stock option activity | |||
Total options outstanding, beginning of period (in shares) | 7,913,733 | 6,807,169 | 10,214,344 |
Granted (in shares) | 3,468,626 | 1,901,000 | 452,000 |
Exercised (in shares) | (505,125) | (403,834) | (1,731,975) |
Forfeited and cancelled (in shares) | (2,029,500) | (390,602) | (2,127,200) |
Total options outstanding, end of period (in shares) | 8,847,734 | 7,913,733 | 6,807,169 |
Exercisable at the end of the period (in shares) | 1,772,608 | 1,883,533 | 1,927,069 |
Weighted-Average Exercise Price | |||
Total options outstanding, beginning of the period (in dollars per share) | $ 36.22 | $ 31.17 | $ 25.29 |
Granted (in dollars per share) | 59.66 | 54.41 | 69.11 |
Exercised (in dollars per share) | 28.73 | 23.26 | 16.26 |
Forfeited and cancelled (in dollars per share) | 44.64 | 50.28 | 23.12 |
Total options outstanding at the end of the period (in dollars per share) | 43.90 | 36.22 | 31.17 |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 35.13 | $ 29.98 | $ 26.87 |
Stock Options | DISH Network Awards | Long-Term Performance Based Plans | |||
Stock option activity | |||
Total options outstanding, beginning of period (in shares) | 4,312,000 | 3,904,500 | |
Total options outstanding, end of period (in shares) | 5,490,626 | 4,312,000 | 3,904,500 |
Weighted-Average Exercise Price | |||
Total options outstanding, beginning of the period (in dollars per share) | $ 31.39 | $ 28.03 | |
Total options outstanding at the end of the period (in dollars per share) | $ 42.81 | $ 31.39 | $ 28.03 |
Stock-Based Compensation - Tax
Stock-Based Compensation - Tax Benefits From Stock Awards Exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Options | |||
Stock-Based Compensation | |||
Tax benefit from stock awards exercised | $ 9,347 | $ 5,006 | $ 33,716 |
Stock-Based Compensation - Aggr
Stock-Based Compensation - Aggregate Intrinsic Value Of Stock Options (Details) - Stock Options - DISH Network Awards $ in Thousands | Dec. 31, 2017USD ($) |
Aggregate intrinsic value | |
Aggregate intrinsic value of stock options outstanding | $ 88,990 |
Aggregate intrinsic value of stock options exercisable | $ 28,175 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - DISH Network Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock Units | |||
Restricted stock unit activity | |||
Total restricted stock units outstanding, beginning of period (in shares) | 1,336,000 | 1,382,250 | 1,731,332 |
Granted (in shares) | 1,871,375 | 67,060 | 62,530 |
Vested (in shares) | (14,845) | (60) | (125,280) |
Forfeited and cancelled (in shares) | (707,810) | (113,250) | (286,332) |
Total restricted stock units outstanding, end of period (in shares) | 2,484,720 | 1,336,000 | 1,382,250 |
Weighted- Average Grant Date Fair Value | |||
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ 32.11 | $ 32.01 | $ 32.60 |
Granted (in dollars per share) | 63.87 | 56.35 | 68.79 |
Vested (in dollars per share) | 62.58 | 49.15 | 63.92 |
Forfeited and cancelled (in dollars per share) | 48.59 | 45.12 | 29.67 |
Total restricted stock units outstanding, end of period (in dollars per share) | $ 51.16 | $ 32.11 | $ 32.01 |
Performance Based Restricted Stock Units [Member] | |||
Restricted stock unit activity | |||
Total restricted stock units outstanding, beginning of period (in shares) | 1,336,000 | 1,382,250 | |
Total restricted stock units outstanding, end of period (in shares) | 2,435,500 | 1,336,000 | 1,382,250 |
Weighted- Average Grant Date Fair Value | |||
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ 32.11 | $ 32.01 | |
Total restricted stock units outstanding, end of period (in dollars per share) | $ 50.91 | $ 32.11 | $ 32.01 |
Stock-Based Compensation - LTIP
Stock-Based Compensation - LTIP (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Recognized non-cash stock-based compensation expense | |||||
Non-cash stock-based compensation expense recognized | $ 29,941 | $ 13,037 | $ 19,199 | ||
Outstanding awards pursuant to performance-based stock incentive plans | |||||
Performance Based Stock Options (in shares) | 8,847,734 | ||||
Weighted-Average Exercise Price (in dollars per share) | $ 43.90 | ||||
Unrecognized compensation expense, weighted average period | 2 years | ||||
Long-Term Performance Based Plans | |||||
Recognized non-cash stock-based compensation expense | |||||
Non-cash stock-based compensation expense recognized | $ 17,868 | $ 3,989 | $ 11,851 | ||
LTIP 2,008 | |||||
Share-based compensation additional disclosures | |||||
Portion vested (as a percent) | 100.00% | ||||
2013 LTIP | |||||
Share-based compensation additional disclosures | |||||
Portion vested (as a percent) | 20.00% | ||||
Percentage of performance goals probable of achievement | 30.00% | 10.00% | 20.00% | ||
Recognized non-cash stock-based compensation expense | |||||
Non-cash stock-based compensation expense recognized | $ (321) | $ 2,565 | $ 10,157 | ||
2017 LTIP | |||||
Share-based compensation additional disclosures | |||||
Percentage of performance goals probable of achievement | 75.00% | ||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | |||||
Non-cash, stock-based compensation expense recognized | $ 10,640 | ||||
Other Employee Performance Awards | |||||
Recognized non-cash stock-based compensation expense | |||||
Non-cash stock-based compensation expense recognized | 7,549 | $ 1,424 | $ 1,694 | ||
Non-Performance Based Stock Awards | |||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||
Unrecognized compensation expense | 22,000 | ||||
DISH Network Awards | 2013 LTIP | |||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | |||||
Expense estimated to be recognized during 2017 | 1,974 | ||||
Estimated contingent expense subsequent to 2017 | 39,234 | ||||
Total estimated remaining expense over the term of plan | 41,208 | ||||
DISH Network Awards | 2017 LTIP | |||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | |||||
Expense estimated to be recognized during 2017 | 8,271 | ||||
Estimated contingent expense subsequent to 2017 | 18,694 | ||||
Total estimated remaining expense over the term of plan | 26,965 | ||||
DISH Network Awards | Other Employee Performance Awards | |||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | |||||
Expense estimated to be recognized during 2017 | 17,946 | ||||
Estimated contingent expense subsequent to 2017 | 123,655 | ||||
Total estimated remaining expense over the term of plan | $ 141,601 | ||||
Stock Options | 2017 LTIP | |||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||
Weighted-Average Exercise Price (in dollars per share) | $ 59.38 | ||||
Stock Options | DISH Network Awards | |||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||
Performance Based Stock Options (in shares) | 8,847,734 | 7,913,733 | 6,807,169 | 10,214,344 | |
Weighted-Average Exercise Price (in dollars per share) | $ 43.90 | $ 36.22 | $ 31.17 | $ 25.29 | |
Stock Options | DISH Network Awards | Long-Term Performance Based Plans | |||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||
Performance Based Stock Options (in shares) | 5,490,626 | 4,312,000 | 3,904,500 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 42.81 | $ 31.39 | $ 28.03 | ||
Stock Options | DISH Network Awards | 2013 LTIP | |||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||
Performance Based Stock Options (in shares) | 1,205,000 | ||||
Weighted-Average Exercise Price (in dollars per share) | $ 41.78 | ||||
Stock Options | DISH Network Awards | 2017 LTIP | |||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||
Performance Based Stock Options (in shares) | 2,545,626 | ||||
Stock Options | DISH Network Awards | Other Employee Performance Awards | |||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||
Performance Based Stock Options (in shares) | 1,740,000 | ||||
Weighted-Average Exercise Price (in dollars per share) | $ 19.27 | ||||
Restricted Stock Units | DISH Network Awards | 2013 LTIP | |||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||
Performance Based Stock Options (in shares) | 602,500 | ||||
Restricted Stock Units | DISH Network Awards | Other Employee Performance Awards | |||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||
Performance Based Stock Options (in shares) | 1,833,000 | ||||
Restricted Stock Units | DISH Network Awards | Held by DISH DBS employees | |||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||
Performance Based Stock Options (in shares) | 2,435,500 | ||||
Subscriber-related | |||||
Recognized non-cash stock-based compensation expense | |||||
Non-cash stock-based compensation expense recognized | $ 3,323 | $ 694 | $ 2,164 | ||
General and administrative | |||||
Recognized non-cash stock-based compensation expense | |||||
Non-cash stock-based compensation expense recognized | $ 26,618 | $ 12,343 | $ 17,035 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Of Stock Options Granted (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Black-Scholes option valuation model, assumptions | |||
Risk-free interest rate, low end of range (as a percent) | 1.34% | 1.06% | 1.40% |
Risk-free interest rate, high end of range (as a percent) | 2.29% | 2.27% | 2.19% |
Volatility factor, low end of range (as a percent) | 22.25% | 26.12% | 26.42% |
Volatility factor, high end of range (as a percent) | 26.15% | 33.37% | 36.22% |
Maximum | |||
Black-Scholes option valuation model, assumptions | |||
Expected term of options | 5 years 6 months | 10 years | 7 years 9 months 18 days |
Weighted-average fair value of options granted (in dollars per share) | $ 16.69 | $ 26.86 | $ 29.73 |
Minimum | |||
Black-Scholes option valuation model, assumptions | |||
Expected term of options | 3 years 9 months 18 days | 5 years 4 months 24 days | 5 years 6 months |
Weighted-average fair value of options granted (in dollars per share) | $ 11.95 | $ 12.45 | $ 16.14 |
Commitments and Contingencies65
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitment and Contingencies | |
Total | $ 20,116,161 |
2,018 | 3,541,508 |
2,019 | 2,661,711 |
2,020 | 2,034,830 |
2,021 | 2,793,375 |
2,022 | 2,619,577 |
Thereafter | 6,465,160 |
Long-term debt obligations | |
Commitment and Contingencies | |
Total | 13,037,370 |
2,018 | 1,027,024 |
2,019 | 1,401,233 |
2,020 | 1,101,306 |
2,021 | 2,001,385 |
2,022 | 2,001,468 |
Thereafter | 5,504,954 |
Capital lease obligations. | |
Commitment and Contingencies | |
Total | 104,318 |
2,018 | 37,451 |
2,019 | 19,896 |
2,020 | 19,137 |
2,021 | 20,615 |
2,022 | 7,219 |
Interest expense on long-term debt and capital lease obligations | |
Commitment and Contingencies | |
Total | 4,092,785 |
2,018 | 796,742 |
2,019 | 771,496 |
2,020 | 631,593 |
2,021 | 534,350 |
2,022 | 465,498 |
Thereafter | 893,106 |
Satellite-related obligations | |
Commitment and Contingencies | |
Total | 1,233,242 |
2,018 | 348,617 |
2,019 | 301,102 |
2,020 | 241,371 |
2,021 | 208,196 |
2,022 | 125,636 |
Thereafter | 8,320 |
Operating lease obligations | |
Commitment and Contingencies | |
Total | 198,890 |
2,018 | 48,029 |
2,019 | 33,125 |
2,020 | 25,404 |
2,021 | 19,996 |
2,022 | 13,556 |
Thereafter | 58,780 |
Purchase obligations | |
Commitment and Contingencies | |
Total | 1,449,556 |
2,018 | 1,283,645 |
2,019 | 134,859 |
2,020 | 16,019 |
2,021 | 8,833 |
2,022 | $ 6,200 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | May 22, 2017USD ($) | Sep. 23, 2016USD ($) | Dec. 31, 2016USD ($) | Feb. 11, 2016USD ($) | Jul. 31, 2009item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 05, 2017USD ($) | Dec. 31, 2014USD ($) |
Spectrum Investments | ||||||||||
Litigation expense (Note 11) | $ 295,695,000 | $ 21,148,000 | $ 20,900,000 | |||||||
Unrecognized tax benefits | $ 201,693,000 | 201,162,000 | 201,693,000 | 203,053,000 | $ 208,328,000 | |||||
Total rent expense for operating leases | $ 473,000,000 | $ 431,000,000 | $ 479,000,000 | |||||||
Other accrued expenses | ||||||||||
Spectrum Investments | ||||||||||
Aggregate amount to the federal and state plaintiffs | $ 1,200 | |||||||||
Claim amount | $ 1,200 | |||||||||
Maximum | ||||||||||
Spectrum Investments | ||||||||||
Term of programming contracts | 10 years | |||||||||
Minimum | ||||||||||
Spectrum Investments | ||||||||||
Term of programming contracts | 1 year | |||||||||
LBAC | ||||||||||
Spectrum Investments | ||||||||||
Business days allowed to terminate existing agreements | 3 days | |||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | ||||||||||
Spectrum Investments | ||||||||||
Bidding credit | 25.00% | |||||||||
Bidding credit value | $ 3,300,000,000 | |||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | Maximum | ||||||||||
Spectrum Investments | ||||||||||
Aggregate amount to the federal and state plaintiffs | 11,000 | |||||||||
Claim amount | 11,000 | |||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | Minimum | ||||||||||
Spectrum Investments | ||||||||||
Aggregate amount to the federal and state plaintiffs | 5,500 | |||||||||
Claim amount | $ 5,500 | |||||||||
Satellite transponder guarantees | ||||||||||
Spectrum Investments | ||||||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 127,000,000 | |||||||||
Technology Development Licensing | ||||||||||
Spectrum Investments | ||||||||||
Number of reexamination petitions pending before patent and trademark office | item | 2 | |||||||||
Telemarketing Litigation [Member] | ||||||||||
Spectrum Investments | ||||||||||
Loss Contingency Accrual | $ 280,000,000 | |||||||||
Telemarketing Litigation [Member] | Other accrued expenses | ||||||||||
Spectrum Investments | ||||||||||
Loss Contingency Accrual | $ 280,000,000 | |||||||||
Do Not Call Litigation [Member] | ||||||||||
Spectrum Investments | ||||||||||
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services | 5 years | |||||||||
Do Not Call Litigation [Member] | DISH Network L.L.C. | ||||||||||
Spectrum Investments | ||||||||||
Aggregate amount to the federal and state plaintiffs | $ 270,000,000 | |||||||||
Federal Loss Contingency Damages Sought Value | 900,000,000 | |||||||||
State Loss Contingency Damages Sought Value | 23,500,000,000 | |||||||||
Claim amount | 270,000,000 | |||||||||
Do Not Call Litigation [Member] | Maximum | ||||||||||
Spectrum Investments | ||||||||||
Claim amount from state plaintiff | $ 1,000,000,000 | |||||||||
Claim amount from federal plaintiff | $ 900,000,000 | |||||||||
CALIFORNIA | Do Not Call Litigation [Member] | DISH Network L.L.C. | ||||||||||
Spectrum Investments | ||||||||||
Aggregate amount to the federal and state plaintiffs | 100,000,000 | |||||||||
Claim amount | 100,000,000 | |||||||||
OHIO | Do Not Call Litigation [Member] | DISH Network L.L.C. | ||||||||||
Spectrum Investments | ||||||||||
Aggregate amount to the federal and state plaintiffs | 10,000,000 | |||||||||
Claim amount | $ 10,000,000 |
Commitments and Contingencies67
Commitments and Contingencies - Narrative Part 2 (Details) | Jun. 05, 2017USD ($) | May 22, 2017USD ($) | Sep. 23, 2016USD ($) | Feb. 12, 2015USD ($) | Jul. 31, 2009item | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2014USD ($) |
Loss contingencies | |||||||||||
Unrecognized Tax Benefits | $ 201,693,000 | $ 201,162,000 | $ 201,693,000 | $ 203,053,000 | $ 201,162,000 | $ 208,328,000 | |||||
Payment to acquire interest in non-controlling investments in certain entities | 11,000,000,000 | ||||||||||
Total investment | 90,381,000 | 21,000,000,000 | |||||||||
Dividend paid to DOC | $ 8,250,000,000 | 1,500,000,000 | 8,250,000,000 | ||||||||
Litigation expense | (255,000,000) | ||||||||||
General and administrative expenses | 669,934,000 | 705,935,000 | $ 729,245,000 | ||||||||
Other accrued expenses | |||||||||||
Loss contingencies | |||||||||||
Claim amount | $ 1,200 | ||||||||||
Litigation expense | $ 41,000,000 | ||||||||||
Number of potential class members in whose favour judgement is made | item | 11,000 | ||||||||||
Number of potential class members | item | 18,000 | ||||||||||
LightSquared transaction shareholder derivative actions | |||||||||||
Loss contingencies | |||||||||||
Number of shareholders who filed lawsuits | item | 5 | ||||||||||
Satellite transponder guarantees | |||||||||||
Loss contingencies | |||||||||||
Guarantees for payments | $ 127,000,000 | 127,000,000 | |||||||||
Technology Development Licensing | |||||||||||
Loss contingencies | |||||||||||
Number of reexamination petitions pending before patent and trademark office | item | 2 | ||||||||||
Telemarketing Litigation [Member] | |||||||||||
Loss contingencies | |||||||||||
Demonstration requirements period | 5 years | ||||||||||
Number of years for which the company will be barred from accepting orders from that independent third-party retailer if the company fails to prove that a particular independent third-party retailer meets the Demonstration Requirements | 2 years | ||||||||||
Litigation expense | 255,000,000 | $ 25,000,000 | |||||||||
Litigation accrual | $ 280,000,000 | ||||||||||
Telemarketing Litigation [Member] | Other accrued expenses | |||||||||||
Loss contingencies | |||||||||||
Litigation accrual | 280,000,000 | 280,000,000 | |||||||||
Krakauer Action | |||||||||||
Loss contingencies | |||||||||||
Litigation expense | $ 20,000,000 | ||||||||||
Krakauer Action | Other accrued expenses | |||||||||||
Loss contingencies | |||||||||||
Litigation accrual | $ 61,000,000 | 61,000,000 | |||||||||
Do Not Call Litigation [Member] | |||||||||||
Loss contingencies | |||||||||||
Number of telemarketing calls | item | 51,119 | ||||||||||
Litigation per call damages | $ 400 | ||||||||||
Dish Network [Member] | Northstar Wireless or Northstar Spectrum | |||||||||||
Loss contingencies | |||||||||||
Non-controlling investments | $ 10,000,000,000 | $ 10,000,000,000 | |||||||||
AWS 3 Auction | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | |||||||||||
Loss contingencies | |||||||||||
Bidding Credit | $ 3,300,000,000 | ||||||||||
Loss Contingency Recovery Amount | 10,000,000,000 | ||||||||||
AWS 3 Auction | Maximum | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | |||||||||||
Loss contingencies | |||||||||||
Claim amount | 11,000 | ||||||||||
AWS 3 Auction | Minimum | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | |||||||||||
Loss contingencies | |||||||||||
Claim amount | $ 5,500 |
Geographic Information - (Detai
Geographic Information - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue by geographic region | |||
Revenue | $ 14,007,511 | $ 14,755,939 | $ 14,796,028 |
United States | |||
Revenue by geographic region | |||
Revenue | 13,967,694 | 14,655,469 | 14,661,458 |
Canada and Mexico | |||
Revenue by geographic region | |||
Revenue | $ 39,817 | $ 100,470 | $ 134,570 |
Valuation and Qualifying Acco69
Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Activity in Valuation and Qualifying Accounts | |||
Balance at Beginning of Year | $ 17,440 | $ 21,769 | $ 25,414 |
Charged to Cost and Expenses | 124,143 | 149,599 | 94,186 |
Deductions | (126,527) | (153,928) | (97,831) |
Balance at End of Year | $ 15,056 | $ 17,440 | $ 21,769 |
Quarterly Financial Data (Una70
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data (Unaudited) | |||||||||||
Total revenue | $ 3,401,181 | $ 3,491,559 | $ 3,543,812 | $ 3,570,959 | $ 3,642,237 | $ 3,653,774 | $ 3,747,296 | $ 3,712,632 | $ 14,007,511 | $ 14,755,939 | $ 14,796,028 |
Operating income (loss) | 376,804 | 424,559 | 219,720 | 588,793 | 557,582 | 517,454 | 639,143 | 594,942 | 1,609,876 | 2,309,121 | 2,148,654 |
Net income (loss) attributable to DISH DBS | $ 419,043 | $ 158,424 | $ (95,656) | $ 241,715 | $ 226,606 | $ 188,141 | $ 277,032 | $ 272,835 | $ 723,526 | $ 964,614 | $ 835,417 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Feb. 12, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||||
Dividend paid to DOC | $ 8,250,000,000 | $ 1,500,000,000 | $ 8,250,000,000 | |
Aggregate dividend declared | 1,500,000,000 | 8,250,000,000 | ||
Subscriber-related revenue | $ 13,877,196,000 | 14,578,414,000 | 14,524,510,000 | |
Trade accounts receivable | 628,278,000 | 740,856,000 | ||
Trade accounts payable | 361,759,000 | 504,562,000 | ||
Equipment sales and other revenue | 130,315,000 | 177,525,000 | 271,518,000 | |
Broadband, Wireless and Other Segments | ||||
Related Party Transaction [Line Items] | ||||
Expenses associated with services | 48,000,000 | 66,000,000 | 66,000,000 | |
Dish Network [Member] | ||||
Related Party Transaction [Line Items] | ||||
Dividend paid to DOC | $ 8,250,000,000 | |||
Dish Network [Member] | Advertising Sales [Member] | ||||
Related Party Transaction [Line Items] | ||||
Subscriber-related revenue | 0 | 2,000,000 | 10,000,000 | |
EchoStar | ||||
Related Party Transaction [Line Items] | ||||
Trade accounts receivable | 2,000,000 | 1,000,000 | ||
Trade accounts payable | 29,000,000 | 259,000,000 | ||
Equipment sales and other revenue | $ 3,000,000 | $ 2,000,000 | $ 48,000,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative Part 1 (Details) $ in Thousands | Mar. 01, 2017item | Mar. 31, 2017item | May 31, 2013 | Jan. 31, 2012item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Related Party Transaction [Line Items] | |||||||
Subscriber-related expenses | $ | $ 8,692,676 | $ 8,639,893 | $ 8,550,226 | ||||
EchoStar XV | |||||||
Related Party Transaction [Line Items] | |||||||
Minimum required notice period for termination of agreement by related party | 30 days | ||||||
100 Inverness Lease Agreement | |||||||
Related Party Transaction [Line Items] | |||||||
Required notice period for termination by the reporting entity | 180 days | ||||||
EchoStar | El Paso Lease Agreement | Dish Network [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of consecutive three year renewal options | 4 | ||||||
Agreement Renewal Option Term | 3 years | ||||||
EchoStar | Professional Services Agreement | Dish Network [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Agreement term | 1 year | ||||||
Automatic renewal period | 1 year | ||||||
Minimum notice period for termination of agreement | 60 days | ||||||
EchoStar | 90 Inverness Lease Agreement | Dish Network [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of consecutive three year renewal options | 4 | ||||||
Agreement Renewal Option Term | 3 years | ||||||
EchoStar | Cheyenne Lease Agreement | Dish Network [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of successive one year renewal options | 13 | ||||||
Agreement Renewal Option Term | 1 year | ||||||
EchoStar | Gilbert Lease Agreement | Dish Network [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of successive one year renewal options | 13 | ||||||
Agreement Renewal Option Term | 1 year | ||||||
EchoStar | Collocation And Antenna Space Agreements [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Required notice period for termination by the reporting entity | 180 days | ||||||
EchoStar | Collocation And Antenna Space Agreements [Member] | Dish Network [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of consecutive three year renewal options | 4 | ||||||
Agreement Renewal Option Term | 3 years |
Related Party Transactions - 73
Related Party Transactions - Narrative Part 2 (Details) $ in Thousands | Mar. 02, 2014 | Dec. 22, 2012 | Dec. 21, 2012 | Jan. 02, 2012 | Jun. 30, 2013 | May 31, 2012 | Mar. 31, 2015item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2009item | Dec. 31, 2008item |
Related Party Transaction [Line Items] | ||||||||||||
Satellite and transmission expenses | $ | $ 717,231 | $ 725,307 | $ 733,494 | |||||||||
Net book value of asset | $ | 22,000 | |||||||||||
EchoStar XVIII | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Satellite and transmission expenses | $ | 67,000 | 22,000 | ||||||||||
EchoStar | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Satellite and transmission expenses | $ | $ 346,000 | $ 351,000 | $ 424,000 | |||||||||
EchoStar | EchoStar VIII | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Notice period for termination of agreement | 30 days | |||||||||||
EchoStar | EchoStar XVI | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Agreement term from commencement of service date | 4 years | |||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||
Additional term of renewal option | 1 year | |||||||||||
EchoStar | Telesat Transponder Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Agreement term | 15 years | |||||||||||
Number of DBS transponders available to receive services | 32 | |||||||||||
EchoStar | DISH Nimiq 5 Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Agreement term | 10 years | |||||||||||
Number of DBS transponders currently used | 32 | |||||||||||
EchoStar | QuetzSat-1 Lease Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Agreement term with third party | 10 years | |||||||||||
Number of DBS transponders currently used | 32 | |||||||||||
Number of DBS transponders expected to receive services | 24 | |||||||||||
Number of transponders subleased | 5 | |||||||||||
EchoStar | 103 degree orbital location member | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Agreement term | 10 years | |||||||||||
Agreement term from commencement of service date | 10 years | |||||||||||
EchoStar | TT&C Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Required notice period for termination by the reporting entity | 60 days |
Related Party Transactions - 74
Related Party Transactions - Narrative Part 3 (Details) - USD ($) $ in Thousands | Mar. 01, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | |||||
General and administrative expenses | $ 669,934 | $ 705,935 | $ 729,245 | ||
EchoStar | |||||
Related Party Transaction [Line Items] | |||||
General and administrative expenses | $ 29,000 | $ 14,000 | $ 13,000 | ||
EchoStar | Dish Network [Member] | 90 Inverness Lease Agreement | |||||
Related Party Transaction [Line Items] | |||||
Agreement Renewal Option Term | 3 years | ||||
EchoStar | Dish Network [Member] | Gilbert Lease Agreement | |||||
Related Party Transaction [Line Items] | |||||
Agreement Renewal Option Term | 1 year | ||||
EchoStar | Dish Network [Member] | American Fork Occupancy License Agreement | |||||
Related Party Transaction [Line Items] | |||||
Term of renewal option exercised | 5 years | ||||
EchoStar | Dish Network [Member] | Professional Services Agreement | |||||
Related Party Transaction [Line Items] | |||||
Minimum notice period for termination of agreement | 60 days | ||||
Minimum notice period for termination of a specific service | 30 days | ||||
Agreement term | 1 year |
Related Party Transactions - 75
Related Party Transactions - Narrative Part 4 (Details) $ in Thousands | Apr. 29, 2011USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2011USD ($) |
Related Party Transaction [Line Items] | |||||
Cost of sales - equipment and other | $ 95,116 | $ 135,321 | $ 185,354 | ||
Patent Cross-License Agreements | |||||
Related Party Transaction [Line Items] | |||||
Payments to third party by related party under extension option | $ 3,000 | ||||
gTLD Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Net payment for agreement settlement | $ 1,000 | ||||
EchoStar | TiVo v. Dish Network and EchoStar Corporation | |||||
Related Party Transaction [Line Items] | |||||
Settlement amount | $ 500,000 | ||||
Initial settlement amount paid | 300,000 | ||||
Aggregate of six annual installment amounts between 2012 and 2017 | $ 200,000 | ||||
Litigation settlement number of annual installments | item | 6 | ||||
Contribution from related party | $ 10,000 | ||||
Percentage of litigation settlement amount to be made by related party annually | 95.00% | ||||
EchoStar | Patent Cross-License Agreements | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Payments to third party by related party | $ 10,000 |
Related Party Transactions - Pa
Related Party Transactions - Part 5 (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 23, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Hughes Broadband Sales Agency Agreement | ||||
Related Party Transaction [Line Items] | ||||
Required notice period for termination by the reporting entity | 90 days | |||
Agreement term | 5 years | |||
Automatic renewal period | 1 year | |||
Broadband equipment purchased from related party | $ 22,000 | |||
NagraStar | ||||
Related Party Transaction [Line Items] | ||||
Interest on equity method investment | 50.00% | |||
Purchases from NagraStar | $ 71,167 | $ 84,459 | $ 108,745 | |
Amounts payable to NagraStar | 16,685 | 18,597 | ||
Commitments to NagraStar | $ 4,927 | 2,716 | ||
Dish Mexico | ||||
Related Party Transaction [Line Items] | ||||
Interest on equity method investment | 49.00% | |||
Amounts receivable | $ 3,027 | 13,516 | ||
Dish Mexico | Digital receivers and related components | ||||
Related Party Transaction [Line Items] | ||||
Sales | 1,891 | 52,324 | 66,779 | |
Dish Mexico | Uplink services | ||||
Related Party Transaction [Line Items] | ||||
Sales | $ 3,994 | $ 4,059 | $ 4,926 |