Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 06, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-31929 | |
Entity Registrant Name | DISH DBS Corporation | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-1328967 | |
Entity Address, Address Line One | 9601 South Meridian Boulevard | |
Entity Address, City or Town | Englewood | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112 | |
City Area Code | 303 | |
Local Phone Number | 723-1000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,015 | |
Entity Central Index Key | 0001042642 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 827,362 | $ 17,426 |
Marketable investment securities | 445,685 | |
Trade accounts receivable, net of allowance for credit losses and allowance for doubtful accounts of $34,365 and $19,280, respectively | 576,978 | 568,679 |
Inventory | 293,034 | 321,983 |
Other current assets | 176,103 | 164,767 |
Total current assets | 2,319,162 | 1,072,855 |
Noncurrent Assets: | ||
Restricted cash, cash equivalents and marketable investment securities | 58,362 | 61,067 |
Property and equipment, net | 1,619,524 | 1,751,573 |
FCC authorizations | 611,794 | 611,794 |
Other investment securities | 96,481 | 106,874 |
Operating lease assets | 429,118 | 553,576 |
Other noncurrent assets, net | 233,145 | 228,820 |
Total noncurrent assets | 3,048,424 | 3,313,704 |
Total assets | 5,367,586 | 4,386,559 |
Current Liabilities: | ||
Trade accounts payable | 438,194 | 266,417 |
Advances from affiliates | 82,415 | |
Deferred revenue and other | 680,444 | 674,079 |
Accrued programming | 1,330,687 | 1,308,531 |
Accrued interest | 173,985 | 189,039 |
Other accrued expenses | 931,032 | 918,333 |
Current portion of long-term debt and finance lease obligations | 2,054,558 | 1,151,108 |
Total current liabilities | 5,608,900 | 4,589,922 |
Long-Term Obligations, Net of Current Portion: | ||
Long-term debt and finance lease obligations, net of current portion | 8,631,217 | 9,671,255 |
Deferred tax liabilities | 547,068 | 501,857 |
Operating lease liabilities | 224,593 | 350,155 |
Long-term deferred revenue and other long-term liabilities | 201,755 | 207,992 |
Total long-term obligations, net of current portion | 9,604,633 | 10,731,259 |
Total liabilities | 15,213,533 | 15,321,181 |
Commitments and Contingencies (Note 9) | ||
Stockholder's Equity (Deficit): | ||
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | ||
Additional paid-in capital | 1,452,849 | 1,432,736 |
Accumulated other comprehensive income (loss) | (893) | (449) |
Accumulated earnings (deficit) | (11,297,903) | (12,366,909) |
Total stockholder's equity (deficit) | (9,845,947) | (10,934,622) |
Total liabilities and stockholder's equity (deficit) | $ 5,367,586 | $ 4,386,559 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Allowance for credit losses | $ 34,365 | $ 19,280 |
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 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue: | ||||
Total revenue | $ 3,151,029 | $ 3,122,282 | $ 9,467,342 | $ 9,426,881 |
Costs and Expenses (exclusive of depreciation shown separately below - Note 6): | ||||
Cost of services | 1,849,824 | 2,056,701 | 5,911,995 | 6,337,170 |
Cost of sales - equipment and other | 28,366 | 43,358 | 82,840 | 133,302 |
Selling, general and administrative expenses | 379,167 | 438,644 | 1,149,782 | 1,215,414 |
Depreciation and amortization (Note 6) | 125,016 | 145,081 | 382,970 | 435,796 |
Total costs and expenses | 2,382,373 | 2,683,784 | 7,527,587 | 8,121,682 |
Operating income (loss) | 768,656 | 438,498 | 1,939,755 | 1,305,199 |
Other Income (Expense): | ||||
Interest income | 652 | 21,453 | 2,614 | 29,981 |
Interest expense, net of amounts capitalized | (171,246) | (187,784) | (517,633) | (578,286) |
Other, net | (91) | 1,508 | 702 | 6,072 |
Total other income (expense) | (170,685) | (164,823) | (514,317) | (542,233) |
Income (loss) before income taxes | 597,971 | 273,675 | 1,425,438 | 762,966 |
Income tax (provision) benefit, net | (148,098) | (68,817) | (356,432) | (195,104) |
Net income (loss) | 449,873 | 204,858 | 1,069,006 | 567,862 |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | (124) | |||
Net income (loss) attributable to DISH DBS | 449,873 | 204,858 | 1,069,006 | 567,986 |
Comprehensive Income (Loss): | ||||
Net income (loss) | 449,873 | 204,858 | 1,069,006 | 567,862 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (132) | (237) | (454) | (52) |
Unrealized holding gains (losses) on available-for-sale debt securities | 10 | (173) | 10 | 81 |
Deferred income tax (expense) benefit, net | 44 | (21) | ||
Total other comprehensive income (loss), net of tax | (122) | (366) | (444) | 8 |
Comprehensive income (loss) | 449,751 | 204,492 | 1,068,562 | 567,870 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | (124) | |||
Comprehensive income (loss) attributable to DISH DBS | 449,751 | 204,492 | 1,068,562 | 567,994 |
Service revenue | ||||
Revenue: | ||||
Total revenue | 3,109,479 | 3,070,913 | 9,357,713 | 9,285,915 |
Equipment sales and other revenue | ||||
Revenue: | ||||
Total revenue | $ 41,550 | $ 51,369 | $ 109,629 | $ 140,966 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED 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, 2018 | $ 1,152,369 | $ (376) | $ (13,194,440) | $ 287 | $ (12,042,160) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 11,003 | 11,003 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 152 | 152 | |||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | (38) | (38) | |||
Foreign currency translation | 47 | 47 | |||
Net income (loss) attributable to noncontrolling interests | (124) | (124) | |||
Net income (loss) attributable to DISH DBS | 177,760 | 177,760 | |||
Balance at Mar. 31, 2019 | 1,163,372 | (215) | (13,016,680) | 163 | (11,853,360) |
Balance at Dec. 31, 2018 | 1,152,369 | (376) | (13,194,440) | 287 | (12,042,160) |
Increase (Decrease) in Stockholder's Equity | |||||
Net income (loss) attributable to DISH DBS | 567,986 | ||||
Balance at Sep. 30, 2019 | 1,427,317 | (368) | (12,626,454) | (11,199,505) | |
Balance at Mar. 31, 2019 | 1,163,372 | (215) | (13,016,680) | 163 | (11,853,360) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 11,528 | 11,528 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 102 | 102 | |||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | (27) | (27) | |||
Foreign currency translation | 138 | 138 | |||
Satellite and Spectrum Transaction, net of deferred taxes | 267,437 | $ (163) | 267,274 | ||
Net income (loss) attributable to DISH DBS | 185,368 | 185,368 | |||
Balance at Jun. 30, 2019 | 1,442,337 | (2) | (12,831,312) | (11,388,977) | |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | (14,214) | (14,214) | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | (173) | (173) | |||
Deferred income tax (expense) benefit attributable to other comprehensive income (loss) | 44 | 44 | |||
Foreign currency translation | (237) | (237) | |||
Other | (806) | (806) | |||
Net income (loss) attributable to DISH DBS | 204,858 | 204,858 | |||
Balance at Sep. 30, 2019 | 1,427,317 | (368) | (12,626,454) | (11,199,505) | |
Balance at Dec. 31, 2019 | 1,432,736 | (449) | (12,366,909) | (10,934,622) | |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 6,953 | 6,953 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | (11) | (11) | |||
Foreign currency translation | (352) | (352) | |||
Net income (loss) attributable to DISH DBS | 244,153 | 244,153 | |||
Balance at Mar. 31, 2020 | 1,439,689 | (812) | (12,122,756) | (10,683,879) | |
Balance at Dec. 31, 2019 | 1,432,736 | (449) | (12,366,909) | (10,934,622) | |
Increase (Decrease) in Stockholder's Equity | |||||
Net income (loss) attributable to DISH DBS | 1,069,006 | ||||
Balance at Sep. 30, 2020 | 1,452,849 | (893) | (11,297,903) | (9,845,947) | |
Balance at Mar. 31, 2020 | 1,439,689 | (812) | (12,122,756) | (10,683,879) | |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 3,333 | 3,333 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 11 | 11 | |||
Foreign currency translation | 30 | 30 | |||
Net income (loss) attributable to DISH DBS | 374,980 | 374,980 | |||
Balance at Jun. 30, 2020 | 1,443,022 | (771) | (11,747,776) | (10,305,525) | |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 9,827 | 9,827 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 10 | 10 | |||
Foreign currency translation | (132) | (132) | |||
Net income (loss) attributable to DISH DBS | 449,873 | 449,873 | |||
Balance at Sep. 30, 2020 | $ 1,452,849 | $ (893) | $ (11,297,903) | $ (9,845,947) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 1,069,006 | $ 567,862 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation and amortization | 382,970 | 435,796 |
Realized and unrealized losses (gains) on investments | (3,117) | |
Non-cash, stock-based compensation | 20,113 | 8,317 |
Deferred tax expense (benefit) | 45,210 | (41,065) |
Allowance for credit losses and allowance for doubtful accounts, respectively | 15,085 | 6,165 |
Other, net | 142 | 69,851 |
Changes in current assets and current liabilities, net | 170,372 | (14,641) |
Net cash flows from operating activities | 1,702,898 | 1,029,168 |
Cash Flows From Investing Activities: | ||
(Purchases) Sales and maturities of marketable investment securities, net | (445,675) | 153,416 |
Purchases of property and equipment | (233,261) | (298,595) |
Other, net | 6,221 | 71,572 |
Net cash flows from investing activities | (672,715) | (73,607) |
Cash Flows From Financing Activities: | ||
Redemption and repurchases of senior notes | (1,100,000) | (1,317,372) |
Proceeds from the issuance of senior notes | 1,000,000 | |
Advances to affiliates | (82,415) | |
Advances from affiliates | 332,263 | |
Repayment of long-term debt and finance lease obligations | (38,867) | (23,086) |
Debt issuance costs | (1,670) | |
Other, net | (444) | |
Net cash flows from financing activities | (222,952) | (1,008,639) |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | 807,231 | (53,078) |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4) | 78,103 | 130,076 |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4) | $ 885,334 | $ 76,998 |
Organization and Business Activ
Organization and Business Activities | 9 Months Ended |
Sep. 30, 2020 | |
Organization and Business Activities | |
Organization and Business Activities | 1. Organization and Business Activities 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 (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, 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”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear streaming OTT Internet-based domestic, international and Latino video programming services (“SLING TV”). As of September 30, 2020, we had |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. Certain prior period amounts have been reclassified to conform to the current period presentation. Specifically, as a result of DISH Network’s entrance into the retail wireless industry, they have reclassified certain items on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We have made similar conforming changes to conform to our parent company. The reclassifications include: (a) “Subscriber-related revenue” has been retitled “Service revenue.” (b) “Subscriber-related expenses” has been retitled “Cost of services.” (c) “Satellite and transmission expenses” has been reclassified to “Cost of services.” (d) A new caption entitled “Selling, general and administrative expenses” has been created that includes historical “General and administrative expenses,” as well as “Subscriber acquisition costs.” All prior periods have been reclassified to conform to the current period presentation for these changes. Principles of Consolidation 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. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments and recorded at fair value with changes recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with 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 credit losses, 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, relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, 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 condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. Marketable Investment Securities All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. Historically, we reported 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 Condensed Consolidated Balance Sheets. Subsequent to the adoption of ASU 2016-13 Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) during the first quarter of 2020, we report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We evaluate our debt investment portfolio to determine whether declines in the fair value of these securities are related to credit loss. Management estimates credit losses on marketable debt securities utilizing a credit loss impairment model on a quarterly basis. We estimate the expected credit losses, measured over the contractual life of marketable debt securities considering relevant issuer specific factors, including, but not limited to, a decrease in credit ratings or an entities ability to pay. Trade Accounts Receivable Prior to January 1, 2020, management estimated the amount of allowance for doubtful accounts for potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. Subsequent to January 1, 2020 due to the adoption of ASU 2016-13, trade accounts receivable are recorded at amortized cost less an allowance for expected credit losses that are not expected to be recovered. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for expected credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Management estimates credit losses on financial assets, including our trade accounts receivable, utilizing a current expected credit loss impairment model. We estimate the expected credit losses, measured over the contractual life of an asset considering relevant historical loss information, credit quality of the customer base, current economic conditions and forecasts of future economic conditions. In determining the allowance for credit losses, management groups similar types of financial assets with consistent risk characteristics. Pools identified by management include but are not limited to residential customers, commercial customers and advertising services. The risk characteristics of the financial asset portfolios are monitored by management and reviewed periodically. The forecasts for future economic conditions are based on several factors including, but not limited to, changes in the unemployment rate, external economic forecasts and current collection rates. Our estimates of the allowance for credit losses may not be indicative of our actual credit losses requiring additional charges to be incurred to reflect the actual amount collected. 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 September 30, 2020 and December 31, 2019, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses or net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. 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 8 for the fair value of our long-term debt. Revenue Recognition Our revenue is primarily derived from Pay-TV programming services that we provide to our subscribers. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 11 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year . Revenues arising from our in-home services that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed. For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606, Revenue from Contracts with Customers Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month. Contract Balances The timing of revenue recognition generally differs from the timing of invoicing to customers. When revenue is recognized prior to invoicing, we record a receivable. When revenue is recognized subsequent to invoicing, we record deferred revenue. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts as we apply a practical expedient when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. See Note 12 for further information, including balance and activity detail about our allowance for credit losses and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We 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, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the three months ended September 30, 2020 and 2019, we capitalized million for the three months ended September 30, 2020 and 2019, respectively. During the nine months ended September 30, 2020 and 2019, we capitalized million for the nine months ended September 30, 2020 and 2019, respectively. As of September 30, 2020 and December 31, 2019, we had a total of million, respectively, capitalized net of related amortization expense on our Condensed Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 12 years , some of which include renewal options , and some of which include options to terminate the leases within one year . We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our Condensed Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Condensed Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 7 for further information on our lease expenses. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 13 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into a Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. See Note 14 “ Related Party Transactions – Master Transaction Agreement” We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The revenue related to equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. Impact of Adoption of ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (“ASU 2016-02”) and has modified the standard thereafter. We adopted ASU 2016-02, as modified, on January 1, 2019 using the modified retrospective method. Under the modified retrospective method, we applied the new guidance to all leases that commenced before and were existing as of January 1, 2019. The adoption of ASU 2016-02 had no impact on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating, investing and financing activities on our Condensed Consolidated Statements of Cash Flows. Advertising Costs We recognize advertising expense when incurred as selling, general and administrative expense. Advertising expenses totaled million for each of the three months ended September 30, 2020 and 2019, respectively. Advertising expenses totaled Research and Development Research and development costs are expensed as incurred. Research and development costs totaled Research and development costs totaled |
Supplemental Data - Statements
Supplemental Data - Statements of Cash Flows | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Data - Statements of Cash Flows | |
Supplemental Data - Statements of Cash Flows | 3. Supplemental Data - Statements of Cash Flows The following table presents certain supplemental cash flow and other non-cash data. See Note 7 for supplemental cash flow and non-cash data related to leases. For the Nine Months Ended September 30, 2020 2019 (In thousands) Cash paid for interest $ 505,664 $ 609,850 Cash received for interest 2,614 29,981 Cash paid for income taxes 13,673 16,510 Cash paid for income taxes to DISH Network 293,713 218,210 Capitalized interest — 440 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 to, among other reasons, maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our Condensed Consolidated Balance Sheets is a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Condensed 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 period presented on our Condensed 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 | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, December 31, 2020 2019 (In thousands) Marketable investment securities: Current marketable investment securities $ 445,685 $ — Restricted marketable investment securities (1) 390 390 Total marketable investment securities 446,075 390 Restricted cash and cash equivalents (1) 57,972 60,677 Other investment securities: Other investment securities 96,481 106,874 Total other investment securities 96,481 106,874 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 600,528 $ 167,941 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets. Marketable Investment Securities Our marketable investment securities portfolio may consist of debt and equity instruments. All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information. Current Marketable Investment Securities Our current marketable investment securities portfolio can include investments in various debt instruments including, among others, commercial paper, corporate securities and United States treasury and/or agency securities. Commercial paper consists mainly of unsecured short-term promissory notes, issued primarily by corporations, with maturities ranging up to 365 days . Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months . U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies. Restricted Cash, Cash Equivalents and Marketable Investment Securities As of September 30, 2020 and December 31, 2019, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts. Other Investment Securities We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investment securities” on our Condensed Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and our equity securities are accounted for using the equity method of accounting or recorded at fair value. 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 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 September 30, 2020 and December 31, 2019, we had accumulated net unrealized gains of less than $1 million and zero , respectively. These amounts, net of related tax effect, were , respectively. 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 September 30, 2020 As of December 31, 2019 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 $ 130,592 $ 8 $ — $ 8 $ 390 $ — $ — $ — Commercial paper 287,124 — — — — — — — Corporate securities 28,212 2 — 2 — — — — Other 147 — — — — — — — Total $ 446,075 $ 10 $ — $ 10 $ 390 $ — $ — $ — As of September 30, 2020, restricted and non-restricted marketable investment securities included debt securities of $446 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. Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of September 30, 2020 December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 867,906 $ 495,119 $ 372,787 $ — $ 60,677 $ 60,677 $ — $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 130,592 $ 130,592 $ — $ — $ 390 $ 390 $ — $ — Commercial paper 287,124 — 287,124 — — — — — Corporate securities 28,212 — 28,212 — — — — — Other 147 — 147 — — — — — Total $ 446,075 $ 130,592 $ 315,483 $ — $ 390 $ 390 $ — $ — Gains and Losses on Sales and Changes in Carrying Amounts of Investments “Other, net” within “Other Income (Expense)” included on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, Other, net: 2020 2019 2020 2019 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ — $ 1 $ — $ 3,600 Costs related to early redemption of debt — (44) — (483) Equity in earnings (losses) of affiliates (77) 743 (198) 2,096 Other (14) 808 900 859 Total $ (91) $ 1,508 $ 702 $ 6,072 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2020 | |
Inventory | |
Inventory | 5. Inventory Inventory consisted of the following: As of September 30, December 31, 2020 2019 (In thousands) Finished goods $ 245,618 $ 254,240 Work-in-process and service repairs 32,320 34,120 Raw materials 15,096 33,623 Total inventory $ 293,034 $ 321,983 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2020 | |
Property and Equipment | |
Property and Equipment | 6. Property and Equipment Property and equipment consisted of the following: Depreciable As of Life September 30, December 31, (In Years) 2020 2019 (In thousands) Equipment leased to customers 2 - 5 $ 1,753,757 $ 1,837,503 EchoStar XV 15 277,658 277,658 EchoStar XVIII 15 411,255 411,255 Satellites acquired under finance lease agreements 15 398,107 398,107 Furniture, fixtures, equipment and other 2 - 20 1,956,431 1,894,629 Buildings and improvements 5 - 40 294,651 289,421 Land - 13,186 13,186 Construction in progress - 59,548 70,081 Total property and equipment 5,164,593 5,191,840 Accumulated depreciation (3,545,069) (3,440,267) Property and equipment, net $ 1,619,524 $ 1,751,573 Depreciation and amortization expense consisted of the following: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In thousands) Equipment leased to customers $ 71,551 $ 92,193 $ 220,722 $ 286,782 Satellites 23,796 18,070 71,389 41,645 Buildings, furniture, fixtures, equipment and other 29,669 34,818 90,859 107,369 Total depreciation and amortization $ 125,016 $ 145,081 $ 382,970 $ 435,796 Cost of sales and operating expense categories included in our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation expense related to satellites or equipment leased to customers. Pay-TV Satellites. of which we own and depreciate over their estimated useful life. We currently utilize certain capacity on satellites that we lease from third parties. All leased satellites are accounted for as operating leases except Nimiq 5 and Anik F3, which are accounted for as financing leases and are depreciated over their economic life. As of September 30, 2020, our pay-TV satellite fleet consisted of the following: Degree Launch Orbital Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 N/A EchoStar XVIII June 2016 61.5 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from DISH Network (2): EchoStar X February 2006 110 February 2021 EchoStar XI July 2008 110 September 2021 EchoStar XIV March 2010 119 February 2023 EchoStar XVI November 2012 61.5 January 2023 Nimiq 5 (3) September 2009 72.7 September 2021 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2022 (1) See Note 13 for further information on our Related Party Transactions with EchoStar. (2) See Note 13 for further information on our Related Party Transactions with DISH Network. (3) The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease. On May 14, 2019, we and DISH Orbital II L.L.C (“DOLLC II”), an indirect wholly-owned subsidiary of DISH Network, entered into an agreement to sell our interests in the Local Multipoint Distribution Service (“LMDS”) and MVDDS licenses in exchange for the EchoStar XVIII satellite, including its related in-orbit incentive obligations of approximately $18 million (the “Satellite and Spectrum Transaction”). As the Satellite and Spectrum Transaction is among entities under common control, we recorded the EchoStar XVIII Satellite at DOLLC II’s net historical cost basis of |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Leases | 7. Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 12 years , some of which include renewal options , and some of which include options to terminate the leases within one year . Our Anik F3 and Nimiq 5 satellites are accounted for as financing leases. Substantially all of our remaining leases are accounted for as operating leases, including the remainder of our satellite fleet. The components of lease expense were as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In thousands) Operating lease cost $ 61,750 $ 72,739 $ 185,273 $ 234,787 Short-term lease cost (1) 3,148 3,010 9,548 34,436 Finance lease cost: Amortization of right-of-use assets 12,374 6,773 37,122 16,686 Interest on lease liabilities 4,270 2,495 13,602 4,775 Total finance lease cost 16,644 9,268 50,724 21,461 Total lease costs $ 81,542 $ 85,017 $ 245,545 $ 290,684 (1) Leases that have terms of 12 months or less . Supplemental cash flow information related to leases was as follows: For the Nine Months Ended September 30, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 186,059 $ 237,881 Operating cash flows from finance leases $ 13,602 $ 4,775 Financing cash flows from finance leases $ 35,234 $ 20,469 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 32,863 $ 72,947 Finance leases $ — $ 175,311 Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 $ 730,180 Supplemental balance sheet information related to leases was as follows: As of September 30, 2020 December 31, 2019 (In thousands) Operating Leases: Operating lease assets $ 429,118 $ 553,576 Other current liabilities $ 203,291 $ 202,972 Operating lease liabilities 224,593 350,155 Total operating lease liabilities $ 427,884 $ 553,127 Finance Leases: Property and equipment, gross $ 398,875 $ 399,764 Accumulated depreciation (238,699) (201,873) Property and equipment, net $ 160,176 $ 197,891 Other current liabilities $ 52,004 $ 48,678 Other long-term liabilities 124,176 163,939 Total finance lease liabilities $ 176,180 $ 212,617 Weighted Average Remaining Lease Term: Operating leases 3.0 years 3.4 years Finance leases 3.5 years 4.2 years Weighted Average Discount Rate: Operating leases 8.8% 9.1% Finance leases 9.6% 9.5% Maturities of lease liabilities as of September 30, 2020 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2020 (remaining three months) $ 61,023 $ 16,223 $ 77,246 2021 207,469 66,279 273,748 2022 134,793 50,227 185,020 2023 28,931 42,862 71,793 2024 11,836 32,147 43,983 Thereafter 43,555 — 43,555 Total lease payments 487,607 207,738 695,345 Less: Imputed interest (59,723) (31,558) (91,281) Total 427,884 176,180 604,064 Less: Current portion (203,291) (52,004) (255,295) Long-term portion of lease obligations $ 224,593 $ 124,176 $ 348,769 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Long-Term Debt and Finance Lease Obligations | |
Long-Term Debt and Finance Lease Obligations | 8. Long-Term Debt and Finance Lease Obligations Fair Value of our Long-Term Debt The following table summarizes the carrying amount and fair value of our debt facilities as of September 30, 2020 and December 31, 2019: As of September 30, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value (In thousands) 5 1/8% Senior Notes due 2020 (1) $ — $ — $ 1,100,000 $ 1,110,208 6 3/4% Senior Notes due 2021 (2) 2,000,000 2,055,660 2,000,000 2,109,420 5 7/8% Senior Notes due 2022 2,000,000 2,090,160 2,000,000 2,129,580 5 % Senior Notes due 2023 1,500,000 1,533,990 1,500,000 1,543,770 5 7/8% Senior Notes due 2024 2,000,000 2,064,700 2,000,000 2,049,080 7 3/4% Senior Notes due 2026 2,000,000 2,202,920 2,000,000 2,128,900 7 3/8% Senior Notes due 2028 1,000,000 1,032,270 — — Other notes payable 23,566 23,566 25,996 25,996 Subtotal 10,523,566 $ 11,003,266 10,625,996 $ 11,096,954 Unamortized deferred financing costs and debt discounts, net (13,971) (16,250) Finance lease obligations (3) 176,180 212,617 Total long-term debt and finance lease obligations (including current portion) $ 10,685,775 $ 10,822,363 (1) On May 1, 2020, we redeemed the principal balance of our 5 1/8% Senior Notes due 2020. (2) Our 6 3/4% Senior Notes due 2021 mature on June 1, 2021 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Condensed Consolidated Balance Sheets as of September 30, 2020. (3) Disclosure regarding fair value of finance leases is not required. We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2). 7 3/8% Senior Notes due 2028 On July 1, 2020, we issued $1.0 billion aggregate principal amount of our 7 3/8% Senior Notes due July 1, 2028. Interest accrues at an annual rate of 7 3/8% and is payable semi-annually in cash, in arrears on January 1 and July 1 of each year, commencing on January 1, 2021. The 7 3/8% Senior Notes are redeemable, in whole or in part, at any time prior to July 1, 2023 at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. On or after July 1, 2023, we may redeem the Notes, in whole or in part, at any time at the redemption prices specified under the related indenture, together with accrued and unpaid interest. Prior to July 1, 2023, we may also redeem up to 35% of the 7 3/8% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. Our 7 3/8% 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 indenture related to our 7 3/8% Senior Notes contains restrictive covenants that, among other things, impose limitations on the ability of DISH DBS and its restricted subsidiaries to: ● incur additional debt; ● pay dividends or make distributions on DISH DBS’ capital stock or repurchase DISH DBS’ capital stock; ● make certain investments; ● create liens or enter into sale and leaseback transactions; ● enter into transactions with affiliates; ● merge or consolidate with another company; and ● transfer or sell assets. In the event of a change of control, as defined in the related indenture, we would be required to make an offer to repurchase all or any part of a holder’s 7 3/8% |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies | |
Commitments and Contingencies | 9. Commitments and Contingencies Commitments 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, as well as certain renewal requirements. In March 2017, DISH Network notified the FCC that it planned to deploy a narrowband Internet of Things (“IoT”) network on certain of these wireless licenses, which was to be the first phase of its network deployment (“First Phase”). DISH Network expected to complete the First Phase by March 2020, with subsequent phases to be completed thereafter. In light of, among other things, certain developments related to the Sprint-TMUS merger, during the first quarter 2020, DISH Network determined that the revision of certain of its build-out deadlines was probable and, therefore, DISH Network no longer intends to complete its narrowband IoT deployment. The FCC issued an order effectuating the build-out deadline changes contemplated above on September 11, 2020. DISH Network has issued requests for information and proposals (“RFI/Ps”) to various vendors in the wireless industry and is in the process of selecting certain vendors as it moves forward with its 5G broadband network deployment (“5G Network Deployment”). billion, excluding capitalized interest. 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. 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. Asset Purchase Agreement. billion as adjusted for specific categories of net working capital on the closing date (the “Boost Mobile Acquisition”). Effective July 1, 2020 (the “Closing Date”), upon the terms and subject to the conditions set forth in the APA, DISH Network and NTM completed the Boost Mobile Acquisition. At the closing of the Boost Mobile Acquisition, DISH Network and NTM entered into a transition services agreement under which DISH Network will receive certain transitional services (the “TSA”), a master network services agreement for the provision of network services by NTM to DISH Network (the “MNSA”), an option agreement entitling DISH Network to acquire certain decommissioned cell sites and retail stores of NTM (the “Option Agreement”) and an agreement under which DISH Network would purchase all of Sprint’s 800 MHz spectrum licenses, totaling approximately 13.5 MHz of nationwide wireless spectrum for an additional approximately $3.59 billion (the “Spectrum Purchase Agreement” and together with the APA, the TSA, the MNSA and the Option Agreement, the “Transaction Agreements”). See Note 5 “ Acquisitions – Sprint Asset Acquisition 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. 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 During 2015, 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 initially 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. The Northstar Entities and/or the SNR Entities may need to raise significant additional capital in the future, which may be obtained from third party sources or from DISH Network, 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, equity contributions or partnerships could vary significantly. For further information regarding the potential re-auction of AWS-3 licenses retained by the FCC, see Note 11 “ Commitments and Contingencies – Commitments – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” We have made and may make cash distributions to finance, in whole or in part, loans that DISH Network has made or may make in the future to the Northstar Entities and the SNR Entities 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 11 “Commitments and Contingencies – Commitments” 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 DISH Network’s acts or omissions following the Spin-off. 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 which certain assets that were transferred to EchoStar in the Spin-off were transferred back to DISH Network. On September 10, 2019, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Master Transaction Agreement (the “Master Transaction Agreement”) that was previously entered into on May 19, 2019, pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to DISH Network. The Share Exchange Agreement and the Master Transaction Agreement contain additional indemnification provisions between DISH Network 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. 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. Broadband iTV On December 19, 2019, Broadband iTV, Inc. filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 10,028,026 (the “026 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 10,506,269 (the “269 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 9,998,791 (“the 791 patent”), entitled “Video-on-demand content delivery method for providing video-on-demand services to TV service subscribers”; and United States Patent No. 9,648,388 (the “388 patent”), entitled “Video-on-demand content delivery system for providing video-on-demand services to TV services subscribers.” Generally, the asserted patents relate to providing video on demand content to subscribers. On July 10, 2020, July 20, 2020, July 24, 2020 and July 31, 2020, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of, respectively, the 026 patent, the 791 patent, the 269 patent and the 388 patent. 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. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. Cedar Lane On October 13, 2020, Cedar Lane Technologies filed a complaint against our wholly owned subsidiary, DISH Network L.L.C., in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 6,502,194 (the “194 patent”), entitled “System for playback of network audio material on demand”; United States Patent No. 6,526,411 (the “411 patent”), entitled “System and method for creating dynamic playlists”; United States Patent No. 6,721,489 (the “489 patent”), entitled “Play list manager”; United States Patent No. 7,173,177 (the “177 patent”), entitled “User interface for simultaneous management of owned and unowned inventory”; United States Patent No. 7,642,443 (the “443 patent”), entitled “User interface for simultaneous management of owned and unowned inventory”; and United States Patent No. 8,165,867 (the “867 patent”), entitled “Methods for translating a device command.” Generally, the asserted patents relate to streaming digital audio to a home audio system; aspects of play lists and purchased content; and voice control. Cedar Lane Technologies is a non-practicing entity that has filed more than 75 patent infringement lawsuits. 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. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust On July 2, 2019, a putative class action lawsuit was filed by a purported EchoStar stockholder in the District Court of Clark County, Nevada under the caption City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Ergen, et al., Case No. A-19-797799-B. The lawsuit named as defendants Mr. Ergen, the other members of the EchoStar Board, as well as EchoStar, certain of its officers, DISH Network and certain of DISH Network’s and EchoStar’s affiliates. Plaintiff alleges, among other things, breach of fiduciary duties in approving the transactions contemplated under the Master Transaction Agreement for inadequate consideration and pursuant to an unfair and conflicted process, and that EchoStar, DISH Network and certain other defendants aided and abetted such breaches. In the operative First Amended Complaint, filed on October 11, 2019, the plaintiff dropped as defendants the EchoStar board members other than Mr. Ergen. The trial of this matter is scheduled to start sometime during the five-week “stack” beginning September 7, 2021. Related Party Transactions – Master Transaction Agreement” Q for the quarter ended September 30, 2020 for further information on the Master Transaction Agreement. Plaintiff seeks equitable relief, including the issuance of additional DISH Network Class A Common Stock, monetary relief and other costs and disbursements, including attorneys’ fees. DISH Network intends to vigorously defend this case, but cannot predict with any degree of certainty the outcome of this suit or determine the extent of any potential liability or damages. 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 willful 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. On October 16, October 21, November 2, and November 9, 2020, DISH Network L.L.C. and DISH Technologies L.L.C. filed petitions with the United States Patent and Trademark Office requesting ex parte reexamination of the validity of, respectively, the 784 patent, the 799 patent, the 318 patent and the 970 patent; and on November 3, 2020, the United States Patent and Trademark Office granted the request for reexamination of the 784 patent. The trial has been reset for July 26, 2021. The report issued by ClearPlay’s damages expert contends that ClearPlay is entitled to 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. Contemporary Display LLC On June 4, 2018, Contemporary Display LLC (“Contemporary”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of 6,028,643 (the “643 patent”), entitled “Multiple-Screen Video Adapter with Television Tuner”; United States Patent No. 6,429,903 (the “903 patent”), entitled “Video Adapter for Supporting at Least One Television Monitor”; United States Patent No. 6,492,997 (the “997 patent”), entitled “Method and System for Providing Selectable Programming in a Multi-Screen Mode”; United States Patent No. 7,500,202 (the “202 patent”), “Remote Control for Navigating Through Content in an Organized and Categorized Fashion”; and United States Patent No. 7,809,842 (the “842 patent”), entitled “Transferring Sessions Between Devices.” The 643 patent and the 903 patent are directed to video adapters for use with multiple displays. The 997 patent is directed to a system for presenting multiple video programs on a display device simultaneously. The 202 patent is directed to a remote control for interacting with a set-top box having programmable features and “operational controls” on at least three sides of the remote control. The 842 patent is directed to a system for managing online communication sessions between multiple devices. Contemporary is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. In a First Amended Complaint filed on August 6, 2018, Contemporary added our wholly-owned subsidiary DISH Network L.L.C. as a defendant. In a Second Amended Complaint filed on October 9, 2018, Contemporary named only our wholly- owned subsidiary DISH Network L.L.C. as a defendant and dropped certain indirect infringement allegations. On June 10, 2019, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 842 patent, the 903 patent, the 643 patent and the 997 patent. On December 13, 2019 and January 7, 2020, the United States Patent and Trademark Office agreed to institute proceedings on each of our petitions. Following Contemporary’s decision not to file Patent Owner Responses to DISH Network L.L.C.’s petitions on the 842 patent and the 903 patent, on April 24, 2020, the United States Patent and Trademark Office entered judgments granting those petitions and canceling the challenged claims of those patents. On July 11, 2019, the Court entered an order staying the case pending resolution of the petitions. On January 31, 2020, pursuant to the parties’ joint motion, the Court dismissed all claims arising from the 202 patent, and extended its stay of the litigation pending non-appealable determinations on all of the petitions before the United States Patent and Trademark Office. 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. 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 alleges infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. Customedia is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. 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. The litigation in the District Court has been stayed since August 8, 2017 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. On March 5, 2018, the United States Patent and Trademark Office conducted a trial on the remaining petitions. On June 11, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 090 patent and it invalidated all of the asserted claims. On July 25, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 437 patent and the 494 patent and it invalidated all of the asserted claims. Customedia appealed its losses before the United States Patent and Trademark Office. The Court of Appeals for the Federal Circuit heard oral argument on November 6, 2019 on the appeal involving the 437 patent, and summarily affirmed the patent’s invalidity on November 8, 2019. On January 7, 2020, Customedia petitioned the Court of Appeals for rehearing or rehearing en banc, raising issues about the constitutionality of the appointment of the administrative patent judges that heard the petition before the Patent and Trademark Office, but the Court of Appeals denied rehearing on March 5, 2020. On July 31, 2020, Customedia filed a petition with the United States Supreme Court asking it to hear a further appeal, but its petition was denied on October 13, 2020. The Court of Appeals heard oral argument on the appeal involving the 090 patent and the 494 patent on December 3, 2019, and affirmed those patents’ invalidity on March 6, 2020. On May 5, 2020, Customedia filed petitions in the Federal Circuit for rehearing and rehearing en banc, seeking to reverse our appellate victories on the 090 and 494 patents, but those petitions were denied on June 9, 2020. 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. Innovative Foundry Technologies LLC On December 20, 2019, Innovative Foundry Technologies LLC filed a complaint against DISH Network (as well as Semiconductor Manufacturing International Corporation; Broadcom Incorporated; Broadcom Corporation; and Cypress Semiconductor Corporation) in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 6,580,122 (the “122 patent”), entitled “Transistor Device Having an Enhanced Width Dimension and a Method of Making Same”; United States Patent No. 6,806,126 (the “126 patent”), entitled “Method of Manufacturing a Semiconductor Component”; United States Patent No. 6,933,620 (the “620 patent”), entitled “Semiconductor Component and Method of Manufacture”; and United States Patent No. 7,009,226 (the “226 patent”), entitled “In-Situ Nitride/Oxynitride Processing with Reduced Deposition Surface Pattern Sensitivity.” DISH Network intends 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. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. Mobile Networking Solutions On August 12, 2019, Mobile Networking Solutions, LLC (“Mobile Networking Solutions”) filed a complaint against our wholly-owned subsidiary Sling Media L.L.C. for infringement of two patents: United States Patent No. 7,543,177 (the “177 patent”) and United States Patent No. 7,958,388 (the “388 patent”), each entitled “Methods and Systems for a Storage System.” Mobile Networking Solutions alleges infringement in connection with Sling Media L.L.C.’s use of a Hadoop Distributed File System for storage and processing of large data files. Pursuant to a stipulation of the parties, on December 16, 2019, the Court entered an order staying the case for six months so the parties may discuss settling the case. On May 12, 2020, pursuant to the parties’ joint request, the Court ordered dismissal of the case with prejudice. This matter is now concluded. Multimedia Content Management LLC On July 25, 2018, Multimedia Content Management LLC (“Multimedia”) filed a complaint against DISH Network in the United States District Court for the Western District of Texas. Multimedia alleges that DISH Network infringes United States Patent No. 8,799,468 (the “468 patent”), entitled “System for Regulating Access to and Distributing Content in a Network,” and United States Patent No. 9,465,925 (the “925 patent”), entitled “System for Regulating Access to and Distributing Content in a Network,” in connection with impulse pay per view content offerings on certain set-top boxes. Multimedia is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. On March 7, 2019, pursuant to stipulation, the Court substituted our wholly-owned subsidiary DISH Network L.L.C. as the defendant in our place. On April 23, 2019, 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 November 13, 2019, the United States Patent and Trademark Office denied institution on both of the petitions. On December 13, 2019, DISH Network L.L.C. filed a motion for reconsideration, which the United States Patent and Trademark Office denied on March 10, 2020. On March 26, 2020, pursuant to the parties’ joint request, the Court dismissed the matter with prejudice. This matter is now concluded. Realtime Data LLC and Realtime Adaptive Streaming LLC On June 6, 2017, Realtime Data LLC d/b/a IXO (“Realtime”) filed an amended complaint in the United States District Court for the Eastern District of Texas (the “Original Texas Action”) against DISH Network; our wholly-owned subsidiaries DISH Network L.L.C., DISH Technologies L.L.C. (then known as EchoStar Technologies L.L.C.), Sling TV L.L.C. and Sling Media L.L.C.; EchoStar, and EchoStar’s wholly-owned subsidiary Hughes Network Systems, L.L.C. (“HNS”); and Arris Group, Inc. Realtime’s initial complaint in the Original Texas Action, filed on February 14, 2017, had named only EchoStar and HNS as defendants. The amended complaint in the Original Texas Action alleges infringement of United States Patent No. 8,717,204 (the “204 patent”), entitled “Methods for encoding and decoding data”; United States Patent No. 9,054,728 (the “728 patent”), entitled “Data compression systems and methods”; United States Patent No. 7,358,867 (the “867 patent”), entitled “Content independent data compression method and system”; United States Patent No. 8,502,707 (the “707 patent”), entitled “Data compression systems and methods”; United States Patent No. 8,275,897 (the “897 patent”), entitled “System and methods for accelerated data storage and retrieval”; United States Patent No. 8,867,610 (the “610 patent”), entitled “System and methods for video and audio data distribution”; United States Patent No. 8,934,535 (the “535 patent”), entitled “Systems and methods for video and audio data storage and distribution”; and United States Patent No. 8,553,759 (the “759 patent”), entitled “Bandwidth sensitive data compression and decompression.” Realtime alleges that DISH Network, Sling TV, Sling Media and Arris streaming video products and services compliant with various versions of the H.264 video compression standard infringe the 897 patent, the 610 patent and the 535 patent, and that the data compression system in Hughes’ products and services infringe the 204 patent, the 728 patent, the 867 patent, the 707 patent and the 759 patent. On July 19, 2017, the Court severed Realtime’s claims against DISH Network, DISH Network L.L.C., Sling TV L.L.C., Sling Media L.L.C. and Arris Gro |
Financial Information for Subsi
Financial Information for Subsidiary Guarantors | 9 Months Ended |
Sep. 30, 2020 | |
Financial Information for Subsidiary Guarantors | |
Financial Information for Subsidiary Guarantors | 10. 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. |
Disaggregation of Revenue
Disaggregation of Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Disaggregation of Revenue | |
Disaggregation of Revenue | 11. Disaggregation of Revenue Geographic Information. Revenue is attributed to geographic regions based upon the location where the goods and services are provided. All service 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 Three Months Ended For the Nine Months Ended September 30, September 30, Revenue: 2020 2019 2020 2019 (In thousands) United States $ 3,139,811 $ 3,112,046 $ 9,442,107 $ 9,394,983 Canada and Mexico 11,218 10,236 25,235 31,898 Total revenue $ 3,151,029 $ 3,122,282 $ 9,467,342 $ 9,426,881 The revenue from external customers disaggregated by major revenue source was as follows: For the Three Months Ended For the Nine Months Ended September 30, September 30, Category: 2020 2019 2020 2019 (In thousands) Pay-TV video and related revenue $ 3,109,479 $ 3,070,913 $ 9,357,713 $ 9,285,915 Equipment sales and other revenue 41,550 51,369 109,629 140,966 Total $ 3,151,029 $ 3,122,282 $ 9,467,342 $ 9,426,881 |
Contract Balances
Contract Balances | 9 Months Ended |
Sep. 30, 2020 | |
Contract Balances | |
Contract Balances | 12. Contract Balances Our valuation and qualifying accounts as of September 30, 2020 were as follows: Allowance for credit losses Balance at Beginning of Period Current Period Provision for Expected Credit Losses Write-offs Charged Against Allowance Balance at End of Period (In thousands) For the nine months ended September 30, 2020 $ 19,280 $ 56,398 $ (41,313) $ 34,365 Deferred revenue related to contracts with our customers is recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets. Changes in deferred revenue related to contracts with our customers were as follows: Contract Liabilities (In thousands) Balance as of December 31, 2019 $ 609,054 Recognition of unearned revenue (4,369,230) Deferral of revenue 4,365,480 Balance as of September 30, 2020 $ 605,304 We apply a practical expedient and do not disclose the value of the remaining performance obligations for contracts that are less than one year in duration, which represent a substantial majority of our revenue. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of our future revenue. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions | |
Related Party Transactions | 13. Related Party Transactions Master Transaction Agreement On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. As a result of the Master Transaction Agreement, certain agreements that we had with EchoStar have been transferred to DISH Network. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. See Related Party Transactions – Master Transaction Agreement” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended 30, 2020 for further information on the Master Transaction Agreement. Related Party Transactions with DISH Network “Cost of services” During the three months ended September 30, 2020 and 2019, we incurred expenses of $56 million and $12 million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. During the nine months ended September 30, 2020 and 2019, we incurred expenses of million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. As a result of the Master Transaction Agreement, discussed above, DISH Network is now a supplier of the vast majority of our transponder capacity. These amounts are recorded in “Cost of services” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Satellite Capacity Leased from DISH Network . On September 10, 2019, in connection with the Master Transaction Agreement DISH Network entered into with EchoStar on May 19, 2019, we began leasing satellite capacity on satellites owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: ● EchoStar X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar 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. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the satellite capacity agreement we previously had with EchoStar for EchoStar X, XI and XIV was transferred to DISH Network and we began leasing satellite capacity on these satellites from a wholly-owned subsidiary of DISH Network as of the same date. ● 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. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place and use certain satellites at the 61.5 degree orbital location. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the transponder service agreement we previously had with EchoStar for EchoStar XVI was transferred to DISH Network and we began receiving transponder services from a wholly-owned subsidiary of DISH Network as of the same date. 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 received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term, which expired 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 on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began receiving transponder services on the Nimiq 5 satellite from a wholly-owned subsidiary of DISH Network as of the same date and exercised our option to renew for a one-year period through September 2020. As discussed in Note 6, “Property and Equipment and Intangible Assets,” the Nimiq 5 satellite lease has been accounted for as a finance lease since September 2019. Accordingly, expenses related to this lease are no longer recorded in “Cost of services,” but rather in “Depreciation and amortization” and “Interest expense, net of amounts capitalized” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). During the three months ended September 30, 2020 and 2019, we recorded $9 million and $3 million of “Depreciation and amortization expense,” respectively, and $3 million and $1 million of “Interest expense, net of amounts capitalized,”respectively, related to Nimiq 5. During the nine months ended September 30, 2020 and 2019, we recorded $26 million and $3 million of “Depreciation and amortization expense,” respectively, and $11 million and $1 million of “Interest expense, net of amounts capitalized,”respectively, related to Nimiq 5. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provided, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite (“SES Transponder Agreement”) . During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we received 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. 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 SES Transponder Agreement and 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 SES Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. There can be no assurance that any options to renew the SES Transponder Agreement will be exercised. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the SES Transponder Agreement was transferred to DISH Network and we began receiving transponder services on QuetzSat-1 from a wholly-owned subsidiary of DISH Network as of the same date. Our lease arrangement with DISH Network expires in November 2021. 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 a wholly-owned subsidiary of DISH Network. On May 14, 2019, we and DOLLC II entered into an agreement to sell our interests in the LMDS and MVDDS licenses in exchange for the EchoStar XVIII satellite. See Note 6 for further information. TT&C Agreement. Effective January 1, 2012, we entered into a TT&C agreement pursuant to which we receive TT&C services from EchoStar for certain satellites (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. 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 and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network. We began receiving TT&C services from a wholly-owned subsidiary of DISH Network as of the same date. “Selling, general and administrative expenses” During the three months ended September 30, 2020 and 2019, we incurred $2 million and less than $1 million, respectively, for selling, general and administrative expenses for services provided to us by DISH Network. During the nine months ended September 30, 2020 and 2019, we incurred DISH Network. These amounts are recorded in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. On September 10, 2019, in connection with the Master Transaction Agreement discussed above, we began leasing office space owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. The term of each lease is set forth below: ● Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado originally from EchoStar to us was for a period ending on December 31, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we began leasing all of 5701 S. Santa Fe Dr. in Littleton, Colorado from a wholly-owned subsidiary of DISH Network as of the same date. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● 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 DISH Network, and, effective March 1, 2017, DISH Network 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. Pursuant to the Master Transaction Agreement, discussed above, the portion of the property EchoStar retained was transferred to DISH Network, and on September 10, 2019, this lease was transferred to DISH Network and we began leasing certain space from a wholly-owned subsidiary of DISH Network as of the same date. Other Agreements – DISH Network 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 three months ended September 30, 2020 and 2019, the costs associated with these services was During the nine months ended September 30, 2020 and 2019, the costs associated with these services was Spin-off from 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 entities established by Mr. Ergen for the benefit of his family. Related Party Transactions with EchoStar 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. 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. Pursuant to the Master Transaction Agreement, among other things, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. In connection with the Share Exchange and the Master Transaction Agreement, 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. 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 September 30, 2020 and December 31, 2019, trade accounts receivable from EchoStar was $3 million and $1 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Condensed Consolidated Balance Sheets. “Trade accounts payable” As of September 30, 2020 and December 31, 2019, trade accounts payable to EchoStar was $4 million and $3 million, respectively. These amounts are recorded in “Trade accounts payable” on our Condensed Consolidated Balance Sheets. “Equipment sales and other revenue” During the three months ended September 30, 2020 and 2019, we received $1 million and $2 million for services provided to EchoStar. During the nine months ended September 30, 2020 and 2019, we received million, respectively, for services provided to EchoStar. These amounts are recorded in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these revenues are discussed below. 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 and in April 2018 EchoStar exercised its second renewal option for a period ending in August 2021. ● 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. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for 12 one-year periods. In connection with the Master Transaction Agreement, DISH Network and EchoStar amended this lease to provide EchoStar with certain space for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon 180 days ’ written notice prior to the end of the term. ● Gilbert Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leased certain space from us at 801 N. DISH Dr., Gilbert, Arizona for a period ending in March 2019. EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. This lease was terminated effective September 10, 2019. ● 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. This lease was terminated effective March 2019. 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. In September 2019, in connection with the Master Transaction Agreement, we entered into an agreement pursuant to which we provide HNS with certain additional collocation space in Cheyenne, Wyoming for a period ending in September 2020, with the option for HNS to renew for a one-year period, with prior written notice no more than 120 days but no less than 90 days prior to the end of the term. In October 2019, HNS provided a termination notice for its New Braunfels, Texas agreement to be effective May 2020. 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. “Cost of services” During the three months ended 30, 2020 and 2019, we incurred expenses of $1 million and $55 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. During the nine months ended 30, 2020 and 2019, we incurred expenses of $2 million and $198 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. EchoStar was the supplier of the vast majority of our transponder capacity. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, certain of these satellites were transferred to DISH Network. We are now leasing this satellite capacity from DISH Network. These amounts are recorded in “Cost of services” on our Condensed 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 VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar 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 VII expired on June 30, 2018. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, these satellites were transferred to DISH Network. ● 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 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. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place and use certain satellites at the 61.5 degree orbital location. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, this satellite was transferred to DISH Network. 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 received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term, which expired 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 on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network and we exercised our option to renew for a one-year period through September 2020. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provided, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite (“SES Transponder Agreement”) . During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we received 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. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. During the first quarter 2013, DISH Network and EchoStar entered into an agreement pursuant to which DISH Network subleased five DBS transponders back to EchoStar. Unless earlier terminated under the terms and conditions of the SES Transponder Agreement and 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 SES Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. There can be no assurance that any options to renew the SES Transponder Agreement will be exercised. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the SES Transponder Agreement was transferred 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”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. 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 and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network and now DISH Network provides these services to us. “Selling, general and administrative expenses” During the three months ended September 30, 2020 and 2019, we incurred $3 million and $5 million, respectively, for selling, general and administrative expenses for services provided to us by EchoStar. During the nine months ended September 30, 2020 and 2019, we incurred EchoStar. These amounts are recorded in “Selling, general and administrative expenses” on our Condensed 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, 2019. In December 2019, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● 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, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● 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. Pursuant to the Master Transaction Agreement, discussed above, t he portion of the property EchoStar retained was transferred to DISH Network , and on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network. ● 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 EchoSt |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. Certain prior period amounts have been reclassified to conform to the current period presentation. Specifically, as a result of DISH Network’s entrance into the retail wireless industry, they have reclassified certain items on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We have made similar conforming changes to conform to our parent company. The reclassifications include: (a) “Subscriber-related revenue” has been retitled “Service revenue.” (b) “Subscriber-related expenses” has been retitled “Cost of services.” (c) “Satellite and transmission expenses” has been reclassified to “Cost of services.” (d) A new caption entitled “Selling, general and administrative expenses” has been created that includes historical “General and administrative expenses,” as well as “Subscriber acquisition costs.” All prior periods have been reclassified to conform to the current period presentation for these changes. |
Principles of Consolidation | Principles of Consolidation 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. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments and recorded at fair value with changes recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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 credit losses, 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, relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, 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 condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. |
Marketable Investment Securities | Marketable Investment Securities All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. Historically, we reported 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 Condensed Consolidated Balance Sheets. Subsequent to the adoption of ASU 2016-13 Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) during the first quarter of 2020, we report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We evaluate our debt investment portfolio to determine whether declines in the fair value of these securities are related to credit loss. Management estimates credit losses on marketable debt securities utilizing a credit loss impairment model on a quarterly basis. We estimate the expected credit losses, measured over the contractual life of marketable debt securities considering relevant issuer specific factors, including, but not limited to, a decrease in credit ratings or an entities ability to pay. |
Trade Accounts Receivable | Trade Accounts Receivable Prior to January 1, 2020, management estimated the amount of allowance for doubtful accounts for potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. Subsequent to January 1, 2020 due to the adoption of ASU 2016-13, trade accounts receivable are recorded at amortized cost less an allowance for expected credit losses that are not expected to be recovered. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for expected credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Management estimates credit losses on financial assets, including our trade accounts receivable, utilizing a current expected credit loss impairment model. We estimate the expected credit losses, measured over the contractual life of an asset considering relevant historical loss information, credit quality of the customer base, current economic conditions and forecasts of future economic conditions. In determining the allowance for credit losses, management groups similar types of financial assets with consistent risk characteristics. Pools identified by management include but are not limited to residential customers, commercial customers and advertising services. The risk characteristics of the financial asset portfolios are monitored by management and reviewed periodically. The forecasts for future economic conditions are based on several factors including, but not limited to, changes in the unemployment rate, external economic forecasts and current collection rates. Our estimates of the allowance for credit losses may not be indicative of our actual credit losses requiring additional charges to be incurred to reflect the actual amount collected. |
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 September 30, 2020 and December 31, 2019, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses or net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. 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 8 for the fair value of our long-term debt. |
Revenue Recognition | Revenue Recognition Our revenue is primarily derived from Pay-TV programming services that we provide to our subscribers. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 11 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year . Revenues arising from our in-home services that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed. For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606, Revenue from Contracts with Customers Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month. Contract Balances The timing of revenue recognition generally differs from the timing of invoicing to customers. When revenue is recognized prior to invoicing, we record a receivable. When revenue is recognized subsequent to invoicing, we record deferred revenue. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts as we apply a practical expedient when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. See Note 12 for further information, including balance and activity detail about our allowance for credit losses and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We 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, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the three months ended September 30, 2020 and 2019, we capitalized million for the three months ended September 30, 2020 and 2019, respectively. During the nine months ended September 30, 2020 and 2019, we capitalized million for the nine months ended September 30, 2020 and 2019, respectively. As of September 30, 2020 and December 31, 2019, we had a total of million, respectively, capitalized net of related amortization expense on our Condensed Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Selling, general and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). |
Leases | Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 12 years , some of which include renewal options , and some of which include options to terminate the leases within one year . We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our Condensed Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Condensed Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 7 for further information on our lease expenses. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 13 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into a Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. See Note 14 “ Related Party Transactions – Master Transaction Agreement” We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The revenue related to equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. Impact of Adoption of ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (“ASU 2016-02”) and has modified the standard thereafter. We adopted ASU 2016-02, as modified, on January 1, 2019 using the modified retrospective method. Under the modified retrospective method, we applied the new guidance to all leases that commenced before and were existing as of January 1, 2019. The adoption of ASU 2016-02 had no impact on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating, investing and financing activities on our Condensed Consolidated Statements of Cash Flows. |
Advertising Costs | Advertising Costs We recognize advertising expense when incurred as selling, general and administrative expense. Advertising expenses totaled million for each of the three months ended September 30, 2020 and 2019, respectively. Advertising expenses totaled |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development costs totaled Research and development costs totaled |
Supplemental Data - Statement_2
Supplemental Data - Statements of Cash Flows (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Supplemental Data - Statements of Cash Flows | |
Schedule of supplemental cash flow and other non-cash data | For the Nine Months Ended September 30, 2020 2019 (In thousands) Cash paid for interest $ 505,664 $ 609,850 Cash received for interest 2,614 29,981 Cash paid for income taxes 13,673 16,510 Cash paid for income taxes to DISH Network 293,713 218,210 Capitalized interest — 440 |
Marketable Investment Securit_2
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, December 31, 2020 2019 (In thousands) Marketable investment securities: Current marketable investment securities $ 445,685 $ — Restricted marketable investment securities (1) 390 390 Total marketable investment securities 446,075 390 Restricted cash and cash equivalents (1) 57,972 60,677 Other investment securities: Other investment securities 96,481 106,874 Total other investment securities 96,481 106,874 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 600,528 $ 167,941 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets. |
Schedule of components of available-for-sale investments | As of September 30, 2020 As of December 31, 2019 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 $ 130,592 $ 8 $ — $ 8 $ 390 $ — $ — $ — Commercial paper 287,124 — — — — — — — Corporate securities 28,212 2 — 2 — — — — Other 147 — — — — — — — Total $ 446,075 $ 10 $ — $ 10 $ 390 $ — $ — $ — |
Schedule of investments measured at fair value on a recurring basis | As of September 30, 2020 December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 867,906 $ 495,119 $ 372,787 $ — $ 60,677 $ 60,677 $ — $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 130,592 $ 130,592 $ — $ — $ 390 $ 390 $ — $ — Commercial paper 287,124 — 287,124 — — — — — Corporate securities 28,212 — 28,212 — — — — — Other 147 — 147 — — — — — Total $ 446,075 $ 130,592 $ 315,483 $ — $ 390 $ 390 $ — $ — |
Gains and Losses on Sales and Changes in Carrying Amounts of Investments | For the Three Months Ended For the Nine Months Ended September 30, September 30, Other, net: 2020 2019 2020 2019 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ — $ 1 $ — $ 3,600 Costs related to early redemption of debt — (44) — (483) Equity in earnings (losses) of affiliates (77) 743 (198) 2,096 Other (14) 808 900 859 Total $ (91) $ 1,508 $ 702 $ 6,072 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory | |
Schedule of inventory | As of September 30, December 31, 2020 2019 (In thousands) Finished goods $ 245,618 $ 254,240 Work-in-process and service repairs 32,320 34,120 Raw materials 15,096 33,623 Total inventory $ 293,034 $ 321,983 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property and Equipment | |
Schedule of property and equipment | Depreciable As of Life September 30, December 31, (In Years) 2020 2019 (In thousands) Equipment leased to customers 2 - 5 $ 1,753,757 $ 1,837,503 EchoStar XV 15 277,658 277,658 EchoStar XVIII 15 411,255 411,255 Satellites acquired under finance lease agreements 15 398,107 398,107 Furniture, fixtures, equipment and other 2 - 20 1,956,431 1,894,629 Buildings and improvements 5 - 40 294,651 289,421 Land - 13,186 13,186 Construction in progress - 59,548 70,081 Total property and equipment 5,164,593 5,191,840 Accumulated depreciation (3,545,069) (3,440,267) Property and equipment, net $ 1,619,524 $ 1,751,573 |
Schedule of depreciation and amortization expense | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In thousands) Equipment leased to customers $ 71,551 $ 92,193 $ 220,722 $ 286,782 Satellites 23,796 18,070 71,389 41,645 Buildings, furniture, fixtures, equipment and other 29,669 34,818 90,859 107,369 Total depreciation and amortization $ 125,016 $ 145,081 $ 382,970 $ 435,796 |
Schedule of pay-TV satellite fleet | Degree Launch Orbital Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 N/A EchoStar XVIII June 2016 61.5 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from DISH Network (2): EchoStar X February 2006 110 February 2021 EchoStar XI July 2008 110 September 2021 EchoStar XIV March 2010 119 February 2023 EchoStar XVI November 2012 61.5 January 2023 Nimiq 5 (3) September 2009 72.7 September 2021 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2022 (1) See Note 13 for further information on our Related Party Transactions with EchoStar. (2) See Note 13 for further information on our Related Party Transactions with DISH Network. (3) The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Summary of the components of lease expense | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In thousands) Operating lease cost $ 61,750 $ 72,739 $ 185,273 $ 234,787 Short-term lease cost (1) 3,148 3,010 9,548 34,436 Finance lease cost: Amortization of right-of-use assets 12,374 6,773 37,122 16,686 Interest on lease liabilities 4,270 2,495 13,602 4,775 Total finance lease cost 16,644 9,268 50,724 21,461 Total lease costs $ 81,542 $ 85,017 $ 245,545 $ 290,684 (1) Leases that have terms of 12 months or less . |
Summary of Supplemental cash flow information related to leases | For the Nine Months Ended September 30, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 186,059 $ 237,881 Operating cash flows from finance leases $ 13,602 $ 4,775 Financing cash flows from finance leases $ 35,234 $ 20,469 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 32,863 $ 72,947 Finance leases $ — $ 175,311 Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 $ 730,180 |
Summary of supplemental balance sheet information related to leases | As of September 30, 2020 December 31, 2019 (In thousands) Operating Leases: Operating lease assets $ 429,118 $ 553,576 Other current liabilities $ 203,291 $ 202,972 Operating lease liabilities 224,593 350,155 Total operating lease liabilities $ 427,884 $ 553,127 Finance Leases: Property and equipment, gross $ 398,875 $ 399,764 Accumulated depreciation (238,699) (201,873) Property and equipment, net $ 160,176 $ 197,891 Other current liabilities $ 52,004 $ 48,678 Other long-term liabilities 124,176 163,939 Total finance lease liabilities $ 176,180 $ 212,617 Weighted Average Remaining Lease Term: Operating leases 3.0 years 3.4 years Finance leases 3.5 years 4.2 years Weighted Average Discount Rate: Operating leases 8.8% 9.1% Finance leases 9.6% 9.5% |
Summary of maturities of operating lease liabilities | Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2020 (remaining three months) $ 61,023 $ 16,223 $ 77,246 2021 207,469 66,279 273,748 2022 134,793 50,227 185,020 2023 28,931 42,862 71,793 2024 11,836 32,147 43,983 Thereafter 43,555 — 43,555 Total lease payments 487,607 207,738 695,345 Less: Imputed interest (59,723) (31,558) (91,281) Total 427,884 176,180 604,064 Less: Current portion (203,291) (52,004) (255,295) Long-term portion of lease obligations $ 224,593 $ 124,176 $ 348,769 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Long-Term Debt and Finance Lease Obligations | |
Schedule of carrying and fair values of the entity's debt facilities | As of September 30, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value (In thousands) 5 1/8% Senior Notes due 2020 (1) $ — $ — $ 1,100,000 $ 1,110,208 6 3/4% Senior Notes due 2021 (2) 2,000,000 2,055,660 2,000,000 2,109,420 5 7/8% Senior Notes due 2022 2,000,000 2,090,160 2,000,000 2,129,580 5 % Senior Notes due 2023 1,500,000 1,533,990 1,500,000 1,543,770 5 7/8% Senior Notes due 2024 2,000,000 2,064,700 2,000,000 2,049,080 7 3/4% Senior Notes due 2026 2,000,000 2,202,920 2,000,000 2,128,900 7 3/8% Senior Notes due 2028 1,000,000 1,032,270 — — Other notes payable 23,566 23,566 25,996 25,996 Subtotal 10,523,566 $ 11,003,266 10,625,996 $ 11,096,954 Unamortized deferred financing costs and debt discounts, net (13,971) (16,250) Finance lease obligations (3) 176,180 212,617 Total long-term debt and finance lease obligations (including current portion) $ 10,685,775 $ 10,822,363 (1) On May 1, 2020, we redeemed the principal balance of our 5 1/8% Senior Notes due 2020. (2) Our 6 3/4% Senior Notes due 2021 mature on June 1, 2021 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Condensed Consolidated Balance Sheets as of September 30, 2020. (3) Disclosure regarding fair value of finance leases is not required. |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disaggregation of Revenue | |
Revenue by geographic region | For the Three Months Ended For the Nine Months Ended September 30, September 30, Revenue: 2020 2019 2020 2019 (In thousands) United States $ 3,139,811 $ 3,112,046 $ 9,442,107 $ 9,394,983 Canada and Mexico 11,218 10,236 25,235 31,898 Total revenue $ 3,151,029 $ 3,122,282 $ 9,467,342 $ 9,426,881 |
Schedule of disaggregation of revenue | For the Three Months Ended For the Nine Months Ended September 30, September 30, Category: 2020 2019 2020 2019 (In thousands) Pay-TV video and related revenue $ 3,109,479 $ 3,070,913 $ 9,357,713 $ 9,285,915 Equipment sales and other revenue 41,550 51,369 109,629 140,966 Total $ 3,151,029 $ 3,122,282 $ 9,467,342 $ 9,426,881 |
Contract Balances (Tables)
Contract Balances (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Contract Balances | |
Valuation and Qualifying Accounts | Allowance for credit losses Balance at Beginning of Period Current Period Provision for Expected Credit Losses Write-offs Charged Against Allowance Balance at End of Period (In thousands) For the nine months ended September 30, 2020 $ 19,280 $ 56,398 $ (41,313) $ 34,365 |
Schedule of Contract balances | Contract Liabilities (In thousands) Balance as of December 31, 2019 $ 609,054 Recognition of unearned revenue (4,369,230) Deferral of revenue 4,365,480 Balance as of September 30, 2020 $ 605,304 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of related party transaction | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In thousands) Purchases (including fees): Purchases from NagraStar $ 14,073 $ 14,434 $ 41,424 $ 43,148 As of September 30, December 31, 2020 2019 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 8,745 $ 9,630 Commitments to NagraStar $ 4,260 $ 4,893 |
Dish Mexico | |
Schedule of related party transaction | For the Three Months Ended For the Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (In thousands) Sales: Uplink services $ 1,207 $ 1,406 $ 3,875 $ 4,222 Total $ 1,207 $ 1,406 $ 3,875 $ 4,222 As of September 30, December 31, 2020 2019 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 2,603 $ 1,191 |
Organization and Business Act_2
Organization and Business Activities (Details) customer in Thousands | Sep. 30, 2020customer |
Pay TV Subscribers | |
Organization and Business Activities | |
Number of subscribers | 11,423 |
DISH TV subscribers | |
Organization and Business Activities | |
Number of subscribers | 8,965 |
Sling TV subscribers | |
Organization and Business Activities | |
Number of subscribers | 2,458 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |||||
Contract cost capitalized during the period | $ 46 | $ 67 | $ 128 | $ 159 | |
Amortization expense related to the programs | 33 | $ 21 | 89 | $ 52 | |
Total costs capitalized | $ 340 | $ 340 | $ 300 | ||
Maximum | |||||
Summary of Significant Accounting Policies | |||||
Period of deferral for the portion of subscriber fees that are deferred | 1 year |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Leases (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Renewal options, operating lease | true |
Renewal options, finance lease | true |
Options to terminate, operating lease | true |
Options to terminate, finance lease | true |
Minimum | |
Leases | |
Remaining lease terms, operating lease | 1 year |
Remaining lease terms, finance lease | 1 year |
Maximum | |
Leases | |
Remaining lease terms, operating lease | 12 years |
Remaining lease terms, finance lease | 12 years |
Termination period, operating lease | 1 year |
Termination period, finance lease | 1 year |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Principles of Consolidation and Research and Development (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Advertising Costs | ||||
Advertising expenses | $ 107 | $ 141 | $ 328 | $ 375 |
Research and Development | ||||
Research and development costs | $ 6 | $ 4 | $ 17 | $ 15 |
Supplemental Data - Statement_3
Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Supplemental Data - Statements of Cash Flows | ||
Cash paid for interest | $ 505,664 | $ 609,850 |
Cash received for interest | 2,614 | 29,981 |
Cash paid for income taxes | 13,673 | 16,510 |
Cash paid for income taxes to DISH Network | $ 293,713 | 218,210 |
Capitalized interest | $ 440 |
Marketable Investment Securit_3
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Feb. 28, 2017 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Total current marketable investment securities | $ 445,685 | ||
Restricted marketable investment securities(1) | 390 | $ 390 | |
Total marketable investment securities | 446,075 | 390 | |
Restricted cash and cash equivalents (1) | 57,972 | 60,677 | |
Other investment securities | 96,481 | 106,874 | |
Total other investment securities | 96,481 | 106,874 | |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | $ 600,528 | $ 167,941 | |
Maximum maturities of commercial paper | 365 days | ||
Maximum maturities of corporate securities | 18 months | ||
NagraStar L.L.C | |||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Ownership interest in equity method investment | 50.00% |
Marketable Investment Securit_4
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Unrealized Gains (Losses) On Marketable Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accumulated net unrealized gains (losses) | ||
Accumulated net unrealized gains, net of tax, in accumulated other comprehensive income (loss) | $ 0 | |
Unrealized Gains (Losses) on Marketable Investment Securities | ||
Unrealized Gains | $ 10 | $ 0 |
Unrealized Gains Losses, Net | 10 | |
Contractual maturities of restricted and non-restricted marketable investment securities | ||
Debt securities with contractual maturities within one year | 446,000 | |
Maximum | ||
Accumulated net unrealized gains (losses) | ||
Accumulated net unrealized gains, net of tax, in accumulated other comprehensive income (loss) | 1,000 | |
Unrealized Gains (Losses) on Marketable Investment Securities | ||
Unrealized Gains | 1,000 | |
U.S. Treasury and agency securities | ||
Unrealized Gains (Losses) on Marketable Investment Securities | ||
Unrealized Gains | 8 | |
Unrealized Gains Losses, Net | 8 | |
Corporate securities | ||
Unrealized Gains (Losses) on Marketable Investment Securities | ||
Unrealized Gains | 2 | |
Unrealized Gains Losses, Net | $ 2 |
Marketable Investment Securit_5
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair value of marketable securities | ||
Debt securities | $ 446,075 | $ 390 |
Total marketable investment securities | 446,075 | 390 |
U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Debt securities | 130,592 | 390 |
Commercial paper | ||
Fair value of marketable securities | ||
Debt securities | 287,124 | |
Corporate securities | ||
Fair value of marketable securities | ||
Debt securities | 28,212 | |
Other | ||
Fair value of marketable securities | ||
Debt securities | 147 | |
Fair value measurements on recurring basis | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 867,906 | 60,677 |
Total marketable investment securities | 446,075 | 390 |
Fair value measurements on recurring basis | U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Debt securities | 130,592 | 390 |
Fair value measurements on recurring basis | Commercial paper | ||
Fair value of marketable securities | ||
Debt securities | 287,124 | |
Fair value measurements on recurring basis | Corporate securities | ||
Fair value of marketable securities | ||
Debt securities | 28,212 | |
Fair value measurements on recurring basis | Other | ||
Fair value of marketable securities | ||
Debt securities | 147 | |
Fair value measurements on recurring basis | Level 1 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 495,119 | 60,677 |
Total marketable investment securities | 130,592 | 390 |
Fair value measurements on recurring basis | Level 1 | U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Debt securities | 130,592 | $ 390 |
Fair value measurements on recurring basis | Level 2 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 372,787 | |
Total marketable investment securities | 315,483 | |
Fair value measurements on recurring basis | Level 2 | Commercial paper | ||
Fair value of marketable securities | ||
Debt securities | 287,124 | |
Fair value measurements on recurring basis | Level 2 | Corporate securities | ||
Fair value of marketable securities | ||
Debt securities | 28,212 | |
Fair value measurements on recurring basis | Level 2 | Other | ||
Fair value of marketable securities | ||
Debt securities | $ 147 |
Marketable Investment Securit_6
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | ||||
Marketable investment securities - realized and unrealized gains (losses) | $ 1 | $ 3,600 | ||
Costs related to early redemption of debt | (44) | (483) | ||
Equity in earnings of affiliates | $ (77) | 743 | $ (198) | 2,096 |
Other | (14) | 808 | 900 | 859 |
Total | $ (91) | $ 1,508 | $ 702 | $ 6,072 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory | ||
Finished goods | $ 245,618 | $ 254,240 |
Work-in-process and service repairs | 32,320 | 34,120 |
Raw materials | 15,096 | 33,623 |
Total inventory | $ 293,034 | $ 321,983 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Property and Equipment | ||
Total property and equipment | $ 5,164,593 | $ 5,191,840 |
Accumulated depreciation | (3,545,069) | (3,440,267) |
Property and equipment, net | 1,619,524 | 1,751,573 |
Equipment leased to customers | ||
Property and Equipment | ||
Total property and equipment | $ 1,753,757 | 1,837,503 |
Equipment leased to customers | Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 2 years | |
Equipment leased to customers | 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 | |
EchoStar XVIII | ||
Property and Equipment | ||
Total property and equipment | $ 411,255 | 411,255 |
Depreciable life of assets | 15 years | |
Satellites acquired under finance lease agreements | ||
Property and Equipment | ||
Total property and equipment | $ 398,107 | 398,107 |
Depreciable life of assets | 15 years | |
Furniture, fixtures, equipment and other | ||
Property and Equipment | ||
Total property and equipment | $ 1,956,431 | 1,894,629 |
Furniture, fixtures, equipment and other | Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 2 years | |
Furniture, fixtures, equipment and other | Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 20 years | |
Buildings and improvements | ||
Property and Equipment | ||
Total property and equipment | $ 294,651 | 289,421 |
Buildings and improvements | Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 5 years | |
Buildings and improvements | Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 40 years | |
Land | ||
Property and Equipment | ||
Total property and equipment | $ 13,186 | 13,186 |
Construction in progress | ||
Property and Equipment | ||
Total property and equipment | $ 59,548 | $ 70,081 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)item | Sep. 30, 2019USD ($) | |
Depreciation and amortization expense | ||||
Depreciation and amortization expense | $ | $ 125,016 | $ 145,081 | $ 382,970 | $ 435,796 |
Equipment leased to customers | ||||
Depreciation and amortization expense | ||||
Depreciation and amortization expense | $ | 71,551 | 92,193 | 220,722 | 286,782 |
Satellites | ||||
Depreciation and amortization expense | ||||
Depreciation and amortization expense | $ | 23,796 | 18,070 | 71,389 | 41,645 |
Buildings, furniture, fixtures, equipment and other | ||||
Depreciation and amortization expense | ||||
Depreciation and amortization expense | $ | $ 29,669 | $ 34,818 | $ 90,859 | $ 107,369 |
Pay-TV Satellites | ||||
Depreciation and amortization expense | ||||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 11 | |||
Owned Satellites | 2 | 2 | ||
Number of satellites leased from third parties | 2 | |||
EchoStar | Pay-TV Satellites | ||||
Depreciation and amortization expense | ||||
Number of satellites utilized under operating lease | 1 | |||
Dish Network | Pay-TV Satellites | ||||
Depreciation and amortization expense | ||||
Number of satellites utilized under operating lease | 6 |
Property and Equipment - Pay TV
Property and Equipment - Pay TV Satellites (Details) $ in Millions | 1 Months Ended |
May 14, 2019USD ($) | |
Property and Equipment | |
Satellite transaction cost basis | $ 320 |
Net carrying value of licenses | 26 |
Capital transaction | 267 |
EchoStar XVIII | |
Property and Equipment | |
Satellite in orbit incentive obligation | $ 18 |
Leases (Details)
Leases (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Leases | |
Renewal options, operating lease | true |
Renewal options, finance lease | true |
Options to terminate, operating lease | true |
Options to terminate, finance lease | true |
Minimum | |
Leases | |
Remaining lease terms, operating lease | 1 year |
Remaining lease terms, finance lease | 1 year |
Maximum | |
Leases | |
Remaining lease terms, operating lease | 12 years |
Short Term Lease Period | 12 months |
Remaining lease terms, finance lease | 12 years |
Termination period, operating lease | 1 year |
Termination period, finance lease | 1 year |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases | ||||
Operating lease cost | $ 61,750 | $ 72,739 | $ 185,273 | $ 234,787 |
Short-term lease cost | 3,148 | 3,010 | 9,548 | 34,436 |
Amortization of right-of-use assets | 12,374 | 6,773 | 37,122 | 16,686 |
Interest on lease liabilities | 4,270 | 2,495 | 13,602 | 4,775 |
Total finance lease cost | 16,644 | 9,268 | 50,724 | 21,461 |
Total lease costs | $ 81,542 | $ 85,017 | $ 245,545 | $ 290,684 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases | ||
Operating cash flows from operating leases | $ 186,059 | $ 237,881 |
Operating cash flows from finance leases | 13,602 | 4,775 |
Financing cash flows from finance leases | 35,234 | 20,469 |
Operating leases | $ 32,863 | 72,947 |
Finance leases | 175,311 | |
Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 | $ 730,180 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases | ||
Operating lease assets | $ 429,118 | $ 553,576 |
Other current liabilities | 203,291 | 202,972 |
Operating lease liabilities | 224,593 | 350,155 |
Total operating lease liabilities | 427,884 | 553,127 |
Property and equipment, gross | 5,164,593 | 5,191,840 |
Accumulated depreciation | (3,545,069) | (3,440,267) |
Property and equipment, net | 1,619,524 | 1,751,573 |
Other current liabilities | 52,004 | 48,678 |
Other long-term liabilities | 124,176 | 163,939 |
Total finance lease liabilities | $ 176,180 | $ 212,617 |
Weighted Average Remaining Lease Term: Operating leases | 3 years | 3 years 4 months 24 days |
Weighted Average Remaining Lease Term: Finance leases | 3 years 6 months | 4 years 2 months 12 days |
Weighted Average Discount Rate: Operating leases | 8.80% | 9.10% |
Weighted Average Discount Rate: Finance leases | 9.60% | 9.50% |
Property and equipment [Member] | ||
Leases | ||
Property and equipment, gross | $ 398,875 | $ 399,764 |
Accumulated depreciation | (238,699) | (201,873) |
Property and equipment, net | $ 160,176 | $ 197,891 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Maturities of lease liabilities: Operating lease | ||
2020 (remaining three months) | $ 61,023 | |
2021 | 207,469 | |
2022 | 134,793 | |
2023 | 28,931 | |
2024 | 11,836 | |
Thereafter | 43,555 | |
Total lease payments | 487,607 | |
Less: Imputed interest | (59,723) | |
Total operating lease liabilities | 427,884 | $ 553,127 |
Less: Current portion | (203,291) | (202,972) |
Operating lease liabilities | 224,593 | 350,155 |
Maturities of lease liabilities: Finance lease | ||
2020 (remaining three months) | 16,223 | |
2021 | 66,279 | |
2022 | 50,227 | |
2023 | 42,862 | |
2024 | 32,147 | |
Total lease payments | 207,738 | |
Less: Imputed interest | (31,558) | |
Total finance lease liabilities | 176,180 | 212,617 |
Less: Current portion | (52,004) | (48,678) |
Long-term portion of lease obligations | 124,176 | $ 163,939 |
Future minimum payments for total lease liabilities | ||
2020 (remaining three months) | 77,246 | |
2020 | 273,748 | |
2022 | 185,020 | |
2023 | 71,793 | |
2024 | 43,983 | |
Thereafter | 43,555 | |
Total lease payments | 695,345 | |
Less: Imputed interest | (91,281) | |
Total | 604,064 | |
Less: Current portion | (255,295) | |
Long-term portion of lease obligations | $ 348,769 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Long term debt (Details) - USD ($) $ in Thousands | Jul. 01, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Long-term debt | |||
Carrying Amount | $ 10,523,566 | $ 10,625,996 | |
Fair Value | 11,003,266 | 11,096,954 | |
Unamortized deferred financing costs and debt discounts, net | (13,971) | (16,250) | |
Finance lease obligations | 176,180 | 212,617 | |
Total long-term debt and finance lease obligations (including current portion) | $ 10,685,775 | 10,822,363 | |
5 1/8% Senior Notes due 2020 | |||
Long-term debt | |||
Carrying Amount | 1,100,000 | ||
Fair Value | $ 1,110,208 | ||
Interest rate (as a percent) | 5.125% | 5.125% | |
6 3/4% Senior Notes due 2021 | |||
Long-term debt | |||
Carrying Amount | $ 2,000,000 | $ 2,000,000 | |
Fair Value | $ 2,055,660 | $ 2,109,420 | |
Interest rate (as a percent) | 6.75% | 6.75% | |
5 7/8% Senior Notes due 2022 | |||
Long-term debt | |||
Carrying Amount | $ 2,000,000 | $ 2,000,000 | |
Fair Value | $ 2,090,160 | $ 2,129,580 | |
Interest rate (as a percent) | 5.875% | 5.875% | |
5% Senior Notes due 2023 | |||
Long-term debt | |||
Carrying Amount | $ 1,500,000 | $ 1,500,000 | |
Fair Value | 1,533,990 | 1,543,770 | |
5 7/8% Senior Notes due 2024 | |||
Long-term debt | |||
Carrying Amount | 2,000,000 | 2,000,000 | |
Fair Value | $ 2,064,700 | $ 2,049,080 | |
Interest rate (as a percent) | 5.875% | 5.875% | |
7 3/4% Senior Notes due 2026 | |||
Long-term debt | |||
Carrying Amount | $ 2,000,000 | $ 2,000,000 | |
Fair Value | $ 2,202,920 | $ 2,128,900 | |
Interest rate (as a percent) | 7.75% | 7.75% | |
7 3/8% Senior Notes due 2028 | |||
Long-term debt | |||
Carrying Amount | $ 1,000,000 | ||
Fair Value | $ 1,032,270 | ||
Interest rate (as a percent) | 7.375% | 7.375% | |
Redemption price as a percentage of principal amount | 100.00% | ||
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101.00% | ||
Aggregate principal amount | $ 1,000,000 | ||
7 3/8% Senior Notes due 2028 | Maximum | |||
Long-term debt | |||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | ||
Other notes payable | |||
Long-term debt | |||
Carrying Amount | $ 23,566 | $ 25,996 | |
Fair Value | $ 23,566 | $ 25,996 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | Jul. 26, 2019USD ($) | Jun. 05, 2017USD ($) | May 22, 2017USD ($) | Sep. 23, 2016USD ($) | Dec. 12, 2014claim | Dec. 23, 2013USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2015USD ($) |
Commitments and Contingencies | |||||||||||
Term barred from conducting any outbound telemarketing | 2 years | ||||||||||
Other accrued expenses | |||||||||||
Commitments and Contingencies | |||||||||||
Claim amount | $ 1,200 | ||||||||||
NTM | |||||||||||
Commitments and Contingencies | |||||||||||
Purchase price | $ 1,400,000,000 | ||||||||||
Prepaid Business Sale [Member] | |||||||||||
Commitments and Contingencies | |||||||||||
Payment to acquire certain wireless licenses and related assets | $ 3,590,000,000 | ||||||||||
Dish Network | |||||||||||
Commitments and Contingencies | |||||||||||
Payment to acquire certain wireless licenses and related assets | $ 11,000,000,000 | ||||||||||
Dish Network | Spectrum Investments | |||||||||||
Commitments and Contingencies | |||||||||||
5G Network deployment | 10,000,000,000 | ||||||||||
Northstar Spectrum And SNR Holdco | |||||||||||
Commitments and Contingencies | |||||||||||
Non-controlling investments | $ 10,000,000,000 | ||||||||||
Northstar Spectrum And SNR Holdco | Dish Network | |||||||||||
Commitments and Contingencies | |||||||||||
Non-controlling investments | $ 10,000,000,000 | 10,000,000,000 | $ 10,000,000,000 | ||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | |||||||||||
Commitments and Contingencies | |||||||||||
Bidding credit credits | 25.00% | ||||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | Maximum | |||||||||||
Commitments and Contingencies | |||||||||||
Claim amount | $ 11,000 | ||||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | Minimum | |||||||||||
Commitments and Contingencies | |||||||||||
Claim amount | $ 5,500 | ||||||||||
Krakauer Action | |||||||||||
Commitments and Contingencies | |||||||||||
Claim amount | $ 10,760,000 | ||||||||||
Telemarketing Litigation | |||||||||||
Commitments and Contingencies | |||||||||||
Demonstration requirements period | 5 years | ||||||||||
Loss Contingency Accrual | $ 280,000,000 | ||||||||||
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services | 5 years | ||||||||||
Telemarketing Litigation | Other accrued expenses | |||||||||||
Commitments and Contingencies | |||||||||||
Loss Contingency Accrual | $ 280,000,000 | 280,000,000 | $ 280,000,000 | ||||||||
Telemarketing Litigation | DISH Network L.L.C. | |||||||||||
Commitments and Contingencies | |||||||||||
Claim amount | $ 270,000,000 | ||||||||||
Number of claims | claim | 1 | ||||||||||
Number of claims by plaintiff | claim | 10 | ||||||||||
ClearPlay, Inc. | |||||||||||
Commitments and Contingencies | |||||||||||
Loss contingency | $ 543,000,000 | $ 543,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative Part 2 (Details) | Sep. 27, 2019USD ($) | Apr. 05, 2018USD ($) | Oct. 06, 2017USD ($) | Jun. 05, 2017USD ($) | May 22, 2017USD ($) | Jan. 19, 2017USD ($)item | Sep. 23, 2016USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Oct. 01, 2018USD ($) | Jul. 03, 2017item |
Dish Network | |||||||||||||
Loss contingencies | |||||||||||||
Total investment | $ 21,000,000,000 | $ 21,000,000,000 | |||||||||||
Payment to acquire certain wireless licenses and related assets | $ 11,000,000,000 | ||||||||||||
Other accrued expenses | |||||||||||||
Loss contingencies | |||||||||||||
Claim amount | $ 1,200 | ||||||||||||
Telemarketing Litigation | |||||||||||||
Loss contingencies | |||||||||||||
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services | 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 | ||||||||||||
Number of motions filed with court | item | 2 | ||||||||||||
Litigation accrual | $ 280,000,000 | ||||||||||||
Telemarketing Litigation | Other accrued expenses | |||||||||||||
Loss contingencies | |||||||||||||
Litigation accrual | $ 280,000,000 | $ 280,000,000 | 280,000,000 | ||||||||||
Krakauer Action | |||||||||||||
Loss contingencies | |||||||||||||
Claim amount | $ 10,760,000 | ||||||||||||
Do Not Call Litigation | |||||||||||||
Loss contingencies | |||||||||||||
Number of telemarketing calls | item | 51,119 | ||||||||||||
Litigation per call damages | $ 400 | ||||||||||||
Telemarketing Litigation | |||||||||||||
Loss contingencies | |||||||||||||
Judgment in favor of the court | $ 61,000,000 | ||||||||||||
Turner Network Sales Litigation [Member] | |||||||||||||
Loss contingencies | |||||||||||||
Interest on loss contingency | $ 24,000,000 | ||||||||||||
Incremental loss contingency | 206,000,000 | $ 206,000,000 | |||||||||||
Turner Network Sales Litigation [Member] | Turner Network Sales | |||||||||||||
Loss contingencies | |||||||||||||
Claim amount | $ 159,000,000 | ||||||||||||
License fee payments | $ 20,000,000 | ||||||||||||
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 | ||||||||||||
Prepaid Business Sale [Member] | |||||||||||||
Loss contingencies | |||||||||||||
Payment to acquire certain wireless licenses and related assets | $ 3,590,000,000 |
Disaggregation of Revenue - Rev
Disaggregation of Revenue - Revenue by geographic location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue | ||||
Revenue | $ 3,151,029 | $ 3,122,282 | $ 9,467,342 | $ 9,426,881 |
United States | ||||
Disaggregation of Revenue | ||||
Revenue | 3,139,811 | 3,112,046 | 9,442,107 | 9,394,983 |
Canada and Mexico | ||||
Disaggregation of Revenue | ||||
Revenue | $ 11,218 | $ 10,236 | $ 25,235 | $ 31,898 |
Disaggregation of Revenue - R_2
Disaggregation of Revenue - Revenue from external customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue | ||||
Revenue | $ 3,151,029 | $ 3,122,282 | $ 9,467,342 | $ 9,426,881 |
Pay-TV video and related revenue | ||||
Disaggregation of Revenue | ||||
Revenue | 3,109,479 | 3,070,913 | 9,357,713 | 9,285,915 |
Equipment sales and other revenue | ||||
Disaggregation of Revenue | ||||
Revenue | $ 41,550 | $ 51,369 | $ 109,629 | $ 140,966 |
Contract Balances (Details)
Contract Balances (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at Beginning of Period | $ 19,280 |
Current Period Provision For Expected Credit Losses | 56,398 |
Write-offs Charged Against Allowance | (41,313) |
Balance at End of Period | 34,365 |
Balance at Beginning of Period | 609,054 |
Recognition of unearned revenue | (4,369,230) |
Deferral of revenue | 4,365,480 |
Balance at End of Period | $ 605,304 |
Remaining performance obligations | true |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | Dec. 21, 2012 | Dec. 21, 2012 | Jan. 02, 2012 | Jan. 02, 2012item | May 31, 2017 | Jul. 31, 2016 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2013item | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2009item | Dec. 31, 2008item |
EchoStar XVI | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Agreement Renewal Option Term | 5 years | ||||||||||||
TT&C Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Purchase of renewal of agreement | 1 year | ||||||||||||
Number of automatic renewal period | 4 | ||||||||||||
Notice period for termination of agreement | 12 months | ||||||||||||
EchoStar | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Satellite and transmission expenses | $ | $ 1 | $ 55 | $ 2 | $ 198 | |||||||||
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 | 5 years | 5 years | 1 year | ||||||||||
EchoStar | Telesat Transponder Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||||
Agreement term with third party | 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 available to receive services | 32 | ||||||||||||
Number of DBS transponders currently used | 24 | ||||||||||||
Number of transponders subleased | 5 | ||||||||||||
EchoStar | TT&C Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Required notice period for termination by the reporting entity | 12 months | ||||||||||||
Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Satellite and transmission expenses | $ | $ 56 | $ 12 | $ 168 | $ 37 |
Related Party Transactions - Na
Related Party Transactions - Narrative Part 1 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Trade accounts receivable | $ 576,978 | $ 576,978 | $ 568,679 | ||
Trade accounts payable | 438,194 | 438,194 | 266,417 | ||
Broadband, Wireless and Other Segments | |||||
Related Party Transaction [Line Items] | |||||
Expenses associated with services | 16,000 | $ 14,000 | 55,000 | $ 40,000 | |
Office Space from DISH Network | |||||
Related Party Transaction [Line Items] | |||||
Expenses associated with services | 2,000 | 1,000 | 6,000 | 1,000 | |
EchoStar | |||||
Related Party Transaction [Line Items] | |||||
Satellite and transmission expenses | 1,000 | 55,000 | 2,000 | 198,000 | |
Trade accounts receivable | 3,000 | 3,000 | 1,000 | ||
Trade accounts payable | 4,000 | 4,000 | $ 3,000 | ||
Equipment sales and other revenue | $ 1,000 | $ 2,000 | $ 3,000 | $ 5,000 |
Related Party Transactions - _2
Related Party Transactions - Narrative Part 2 (Details) $ in Thousands | Mar. 01, 2017item | Sep. 30, 2019 | Aug. 31, 2017item | Mar. 31, 2017 | Jan. 31, 2012item | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2009 |
Related Party Transaction [Line Items] | ||||||||||
Depreciation and amortization | $ 125,016 | $ 145,081 | $ 382,970 | $ 435,796 | ||||||
Interest expense, net of amounts capitalized | 171,246 | 187,784 | 517,633 | 578,286 | ||||||
Revenues | 3,151,029 | 3,122,282 | 9,467,342 | 9,426,881 | ||||||
Service revenue | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenues | 3,109,479 | 3,070,913 | $ 9,357,713 | 9,285,915 | ||||||
100 Inverness Lease Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Required notice period for termination by the reporting entity | 180 days | |||||||||
Nimiq 5 Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Agreement Renewal Option Term | 1 year | |||||||||
Depreciation and amortization | 9,000 | 3,000 | $ 26,000 | 3,000 | ||||||
Interest expense, net of amounts capitalized | 3,000 | 1,000 | 11,000 | 1,000 | ||||||
Hughes Broadband Master Services Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Agreement term | 5 years | |||||||||
Automatic renewal period | 1 year | |||||||||
Required notice period for termination by the reporting entity | 90 days | |||||||||
Hughes Broadband Master Services Agreement [Member] | Service revenue | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenues | $ 4,000 | $ 4,000 | $ 13,000 | $ 15,000 | ||||||
EchoStar | El Paso Lease Agreement | Dish Network | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of consecutive three year renewal options | item | 4 | |||||||||
Agreement Renewal Option Term | 3 years | |||||||||
EchoStar | Professional Services Agreement | Dish Network | ||||||||||
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 | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of consecutive three year renewal options | item | 4 | |||||||||
Agreement Renewal Option Term | 3 years | |||||||||
EchoStar | Cheyenne Lease Agreement | Dish Network | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of successive one year renewal options | item | 12 | |||||||||
Agreement Renewal Option Term | 1 year | |||||||||
Required notice period for termination by the reporting entity | 180 days | |||||||||
EchoStar | Gilbert Lease Agreement | Dish Network | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Agreement Renewal Option Term | 1 year | |||||||||
EchoStar | Collocation And Antenna Space Agreements | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Required notice period for termination by the reporting entity | 180 days | |||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Agreement Renewal Option Term | 1 year | 3 years | ||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | Minimum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Required notice period for termination by the reporting entity | 90 days | |||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | Maximum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Required notice period for termination by the reporting entity | 120 days | |||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of consecutive three year renewal options | item | 4 |
Related Party Transactions - _3
Related Party Transactions - Narrative Part 3 (Details) - USD ($) $ in Thousands | Mar. 01, 2017 | Jun. 30, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2009 |
Related Party Transaction [Line Items] | |||||||||
Selling, general and administrative expenses | $ 379,167 | $ 438,644 | $ 1,149,782 | $ 1,215,414 | |||||
Meridian Lease Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Additional term of renewal option | 1 year | ||||||||
Santa Fe Lease Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Additional term of renewal option | 1 year | 1 year | |||||||
EchoStar | |||||||||
Related Party Transaction [Line Items] | |||||||||
Selling, general and administrative expenses | $ 3,000 | $ 5,000 | $ 10,000 | $ 16,000 | |||||
Dish Network | EchoStar | 90 Inverness Lease Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Agreement Renewal Option Term | 3 years | ||||||||
Dish Network | EchoStar | Gilbert Lease Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Agreement Renewal Option Term | 1 year | ||||||||
Dish Network | EchoStar | American Fork Occupancy License Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Agreement Renewal Option Term | 5 years | ||||||||
Dish Network | EchoStar | 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 - _4
Related Party Transactions - Narrative Part 4 (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2011 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Related Party Transaction [Line Items] | |||||
Cost of sales - equipment and other | $ 28,366 | $ 43,358 | $ 82,840 | $ 133,302 | |
EchoStar | Patent Cross-License Agreements | Dish Network | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Payments to third party by related party | $ 10,000 | ||||
Payments to third party by related party under extension option | $ 3,000 |
Related Party Transactions - Pa
Related Party Transactions - Part 5 (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2017 | Aug. 19, 2016 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Feb. 28, 2017 | |
Related Party Transaction [Line Items] | ||||||||
Sales | $ 1,207 | $ 1,406 | $ 3,875 | $ 4,222 | ||||
Rovi License Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Agreement term | 10 years | |||||||
Payments to Related Parties | 0 | |||||||
Hughes Broadband Master Services Agreement [Member] | ||||||||
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 | 4,000 | 2,000 | 11,000 | 10,000 | ||||
NagraStar L.L.C | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest on equity method investment | 50.00% | |||||||
Purchases from NagraStar | 14,073 | 14,434 | 41,424 | 43,148 | ||||
Amounts payable to NagraStar | 8,745 | 8,745 | $ 9,630 | |||||
Commitments to NagraStar | $ 4,260 | $ 4,260 | 4,893 | |||||
Dish Mexico | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest on equity method investment | 49.00% | 49.00% | ||||||
Amounts receivable | $ 2,603 | $ 2,603 | $ 1,191 | |||||
Dish Mexico | Uplink services | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sales | $ 1,207 | $ 1,406 | $ 3,875 | $ 4,222 |