Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 29, 2024 | Jun. 30, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 1,015 | ||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 185 | ||
Auditor Location | Denver, Colorado | ||
Entity Central Index Key | 0001042642 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 373,641 | $ 621,975 |
Marketable investment securities | 397 | 282,733 |
Trade accounts receivable, net of allowance for credit losses of $34,884 and $40,642, respectively | 619,604 | 660,808 |
Advances To Affiliates | 421,457 | |
Inventory | 267,841 | 307,411 |
Interest receivable - DISH Network (Note 17) | 17,761 | |
Prepaids and other assets | 147,740 | 174,522 |
Other current assets | 2,306 | 2,413 |
Total current assets | 1,850,747 | 2,049,862 |
Noncurrent Assets: | ||
Restricted cash, cash equivalents and marketable investment securities | 54,980 | 53,525 |
Property and equipment, net | 808,065 | 990,886 |
Regulatory authorizations, net | 611,794 | 611,794 |
Other investments, net | 90,168 | 93,806 |
Operating lease assets | 92,972 | 130,454 |
Notes receivable - DISH Network (Note 17) | 7,495,755 | 7,160,116 |
Interest receivable - DISH Network (Note 17) | 19,322 | 36,912 |
Other noncurrent assets, net | 107,987 | 116,026 |
Total noncurrent assets | 9,281,043 | 9,193,519 |
Total assets | 11,131,790 | 11,243,381 |
Current Liabilities: | ||
Trade accounts payable | 248,640 | 385,899 |
Deferred revenue and other | 505,361 | 555,151 |
Accrued programming | 1,427,762 | 1,298,777 |
Accrued interest | 160,137 | 180,823 |
Other accrued expenses and liabilities | 415,109 | 644,574 |
Current portion of long-term debt and finance lease obligations (Note 8) | 2,023,976 | 1,484,101 |
Total current liabilities | 4,780,985 | 4,549,325 |
Long-Term Obligations, Net of Current Portion: | ||
Long-term debt and finance lease obligations, net of current portion (Note 8) | 9,755,538 | 11,761,407 |
Deferred tax liabilities | 268,170 | 352,748 |
Operating lease liabilities | 61,381 | 75,142 |
Long-term deferred revenue and other long-term liabilities | 211,414 | 209,288 |
Total long-term obligations, net of current portion | 10,296,503 | 12,398,585 |
Total liabilities | 15,077,488 | 16,947,910 |
Commitments and Contingencies (Note 12) | ||
Stockholder's Equity (Deficit): | ||
Common stock, $0.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | ||
Additional paid-in capital | 1,547,164 | 1,532,906 |
Accumulated other comprehensive income (loss) | (2,501) | (2,445) |
Accumulated earnings (deficit) | (5,490,361) | (7,234,990) |
Total stockholder's equity (deficit) | (3,945,698) | (5,704,529) |
Total liabilities and stockholder's equity (deficit) | $ 11,131,790 | $ 11,243,381 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Allowance for credit losses | $ 34,884 | $ 40,642 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 1,015 | 1,015 |
Common stock, shares outstanding | 1,015 | 1,015 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Total revenue | $ 11,474,225 | $ 12,378,208 | $ 12,761,863 |
Costs and Expenses (exclusive of depreciation and amortization): | |||
Cost of services | 7,100,543 | 7,527,563 | 7,852,934 |
Cost of sales - equipment and other | 78,219 | 79,905 | 87,578 |
Selling, general and administrative expenses | 1,375,908 | 1,593,723 | 1,442,897 |
Depreciation and amortization | 315,660 | 354,361 | 439,004 |
Impairment of long-lived assets (Note 6) | 6,457 | ||
Total costs and expenses | 8,876,787 | 9,555,552 | 9,822,413 |
Operating income (loss) | 2,597,438 | 2,822,656 | 2,939,450 |
Other Income (Expense): | |||
Interest income | 464,939 | 440,412 | 36,458 |
Interest expense, net of amounts capitalized | (753,162) | (871,530) | (683,803) |
Other, net | 518 | 4,466 | (820) |
Total other income (expense) | (287,705) | (426,652) | (648,165) |
Income (loss) before income taxes | 2,309,733 | 2,396,004 | 2,291,285 |
Income tax (provision) benefit, net | (565,104) | (585,259) | (554,413) |
Net income (loss) | 1,744,629 | 1,810,745 | 1,736,872 |
Comprehensive Income (Loss): | |||
Net income (loss) | 1,744,629 | 1,810,745 | 1,736,872 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (48) | (1,245) | (402) |
Unrealized holding gains (losses) on available-for-sale debt securities | 14 | 107 | (122) |
Deferred income tax (expense) benefit, net | (22) | (45) | 67 |
Total other comprehensive income (loss), net of tax | (56) | (1,183) | (457) |
Comprehensive income (loss) | 1,744,573 | 1,809,562 | 1,736,415 |
Service revenue | |||
Revenue: | |||
Total revenue | 11,320,526 | 12,281,346 | 12,661,766 |
Equipment sales and other revenue | |||
Revenue: | |||
Total revenue | $ 153,699 | $ 96,862 | $ 100,097 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) - USD ($) $ in Thousands | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Total |
Balance at Dec. 31, 2020 | $ 1,463,407 | $ (805) | $ (10,782,607) | $ (9,320,005) |
Increase (Decrease) in Stockholder's Equity | ||||
Non-cash, stock-based compensation | 11,830 | 11,830 | ||
Other comprehensive income (loss) | (457) | (457) | ||
Sale of assets to DISH Network, net of deferred taxes of $2,292 | 16,937 | 16,937 | ||
Net income (loss) | 1,736,872 | 1,736,872 | ||
Balance at Dec. 31, 2021 | 1,492,174 | (1,262) | (9,045,735) | (7,554,823) |
Increase (Decrease) in Stockholder's Equity | ||||
Non-cash, stock-based compensation | 40,732 | 40,732 | ||
Other comprehensive income (loss) | (1,183) | (1,183) | ||
Net income (loss) | 1,810,745 | 1,810,745 | ||
Balance at Dec. 31, 2022 | 1,532,906 | (2,445) | (7,234,990) | (5,704,529) |
Increase (Decrease) in Stockholder's Equity | ||||
Non-cash, stock-based compensation | 14,258 | 14,258 | ||
Other comprehensive income (loss) | (56) | (56) | ||
Net income (loss) | 1,744,629 | 1,744,629 | ||
Balance at Dec. 31, 2023 | $ 1,547,164 | $ (2,501) | $ (5,490,361) | $ (3,945,698) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) | |
Deferred taxes on sale of assets to DISH Network | $ 2,292 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities: | |||
Net income (loss) | $ 1,744,629 | $ 1,810,745 | $ 1,736,872 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 315,660 | 354,361 | 439,004 |
Impairment of long-lived assets (Note 6) | 6,457 | ||
Realized and unrealized losses (gains) on investments and other | (1,262) | 922 | 3,587 |
Non-cash, stock-based compensation | 14,258 | 40,732 | 11,830 |
Deferred tax expense (benefit) | (84,600) | (116,715) | (41,304) |
Changes in allowance for credit losses | (5,758) | 7,781 | (10,372) |
Other, net | 37,540 | 63,194 | 51,842 |
Non-cash interest income - DISH Network | (318,050) | (415,188) | |
Changes in current assets and current liabilities: | |||
Trade accounts receivable | 46,962 | (67,036) | 24,037 |
Inventory | 36,925 | (11,143) | (38,405) |
Other current assets | 12,865 | 93,482 | 2,538 |
Trade accounts payable | (128,331) | (145,552) | 206,862 |
Deferred revenue and other | (49,790) | (47,370) | (64,705) |
Accrued programming and other accrued expenses | (98,474) | (840) | 28,276 |
Net cash flows from operating activities | 1,529,031 | 1,567,373 | 2,350,062 |
Cash Flows From Investing Activities: | |||
(Purchases) Sales and maturities of marketable investment securities, net | 282,350 | 1,388,113 | (1,538,268) |
Purchases of property and equipment | (132,607) | (122,477) | (156,860) |
Proceeds from sale of assets to DISH Network, net of tax | 60,369 | ||
Notes receivable - DISH Network | (1,500,000) | (5,250,000) | |
Advances to/from affiliates | (421,457) | ||
Other, net | 5,016 | 5,313 | 8,572 |
Net cash flows from investing activities | (266,698) | (229,051) | (6,876,187) |
Cash Flows From Financing Activities: | |||
Repayment of long-term debt and finance lease obligations | (49,850) | (33,713) | (54,162) |
Redemption and repurchases of senior notes | (1,460,635) | (2,056,821) | (2,000,000) |
Proceeds from issuance of senior notes | 6,750,000 | ||
Debt issuance costs | (34,459) | ||
Other, net | 1,273 | (906) | (3,368) |
Net cash flows from financing activities | (1,509,212) | (2,091,440) | 4,658,011 |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | (246,879) | (753,118) | 131,886 |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4) | 675,500 | 1,428,618 | 1,296,732 |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4) | $ 428,621 | $ 675,500 | $ 1,428,618 |
Organization and Business Activ
Organization and Business Activities | 12 Months Ended |
Dec. 31, 2023 | |
Organization and Business Activities | |
Organization and Business Activities | 1. Organization and Business Activitie s 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. Recent Developments Merger with EchoStar On December 31, 2023, EchoStar completed the acquisition of DISH Network pursuant to the Amended and Restated Agreement and Plan of Merger, dated as of October 2, 2023 (the “Amended Merger Agreement”), by and among EchoStar, EAV Corp., a Nevada corporation and its wholly owned subsidiary (“Merger Sub”), and DISH Network, pursuant to which EchoStar acquired DISH Network by means of the merger of Merger Sub with and into DISH Network (the “Merger”), with DISH Network surviving the Merger as its wholly owned subsidiary. For more information and a copy of the Amended Merger Agreement, see the Form 8-K of EchoStar filed on October 3, 2023 and the Form 8-K of EchoStar filed on January 2, 2024. With the Merger complete, we are currently focused on the process of integrating our and EchoStar’s business in a manner that facilitates synergies, cost savings, growth opportunities and achieves other anticipated benefits (the “Integration”). Future Capital Requirements The consolidated financial statements have been prepared in accordance with generally accepted accounting principles on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Our cash and cash equivalents and marketable investment securities totaled $374 million as of December 31, 2023 (“Cash on Hand”). As reflected in the consolidated financial statements as of December 31, 2023, we have Because we do not currently have committed financing to fund our operations for at least twelve months from the issuance of these consolidated financial statements, substantial doubt exists about our, our parent, DISH Network’s, and our ultimate parent, EchoStar’s, ability to continue as a going concern. We do not currently have the necessary Cash on Hand and/or projected future cash flows to fund the November 2024 debt maturity. To address our capital needs, we are in active discussions with funding sources to raise additional capital and restructure our outstanding debt. We cannot provide assurances that we will be successful in obtaining such new financing and/or restructuring the existing debt obligations necessary for us to have sufficient liquidity. In addition, our parent, DISH Network, and The consolidated financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should we not continue as a going concern. Pay-TV We offer pay-TV services under the DISH ® brand and the SLING ® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, Federal Communications Commission (“FCC”) licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear and on-demand streaming over-the-top (“OTT”) Internet-based domestic, international, Latino and Freestream video programming services (“SLING TV”). As of December 31, 2023, we had 8.526 million Pay-TV subscribers in the United States, including 6.471 million DISH TV subscribers and 2.055 million SLING TV subscribers. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include all balances and results of operations of DISH DBS and our consolidated subsidiaries and are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities (“VIEs”) 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, which will be initially recorded at cost, and based on observable market prices, will be adjusted to their fair value. We record fair value adjustments in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are based on historical experience, observable market inputs, and other reasonable assumptions in accounting for, among other things, allowances for credit losses, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under EchoStar’s stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, relative standalone selling prices of performance obligations , finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, incremental borrowing rate (“IBR”) on lease right of use assets, nonrefundable upfront fees, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. Cash and Cash Equivalents We consider all liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents as of December 31, 2023 and 2022 may consist of money market funds, government bonds, corporate notes and commercial paper. The amortized cost of these investments approximates their fair value. Marketable Investment Securities All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “ Stockholder’s Equity (Deficit) ,” net of related deferred income tax on our Consolidated Balance Sheets. The changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Interest income from available for sale debt securities is reported in “Interest income, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). We evaluate our debt investment portfolio to determine whether declines in the fair value of these securities are related to credit loss. Management estimates credit losses on marketable debt securities utilizing a credit loss impairment model on a quarterly basis. We estimate the expected credit losses, measured over the contractual life of marketable debt securities considering relevant issuer specific factors, including, but not limited to, a decrease in credit ratings or an entity’s ability to pay. Receivables and Related Allowance for Credit Losses General Accounts Receivable Trade accounts receivable represent our unconditional rights to consideration arising from our performance under our customer contracts and are recorded at cost less an allowance for expected credit losses that are not expected to be recovered. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for expected credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Management estimates credit losses on financial assets, including our trade accounts receivable, utilizing a current expected credit loss impairment model. We estimate the expected credit losses, measured over the contractual life of an asset considering relevant historical loss information, credit quality of the customer base, current economic conditions and forecasts of future economic conditions. In determining the allowance for credit losses, management groups similar types of financial assets with consistent risk characteristics. Pools identified by management include, but are not limited to residential customers, commercial customers and advertising services. The risk characteristics of the financial asset portfolios are monitored by management and reviewed periodically. The forecasts for future economic conditions are based on several factors including, but not limited to, changes in the unemployment rate, external economic forecasts and current collection rates. Our estimates of the allowance for credit losses may not be indicative of our actual credit losses requiring additional charges to be incurred to reflect the actual amount collected. Past due trade accounts receivable balances are writ Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The cost of manufactured inventory includes the cost of materials, labor, freight-in, royalties and manufacturing overhead. Net realizable value is calculated as the estimated selling price less reasonable costs necessary to complete, sell, transport and dispose of the inventory. We record write downs for inventory for obsolete and slow moving items based on trends and experience. We enter into arrangements with distributors where physical delivery of a product to a distributor has occurred, but we maintain control of the product until such time it is sold to an end consumer. For these arrangements, we account for the products as consigned inventory. Property and Equipment Property and equipment, including capitalized expenditures related to our satellites, are stated at cost less depreciation and impairment losses, if any. Capitalized expenditures include the cost of long-lived assets, plus the cost to construct the asset such as labor and overhead directly benefiting the asset. Interest is capitalized when pre-construction activity commences and ends once the asset is ready for its intended purpose. Our equipment leased to customers is generally capitalized when they are installed in customers’ homes. We have certain assets acquired under finance leases. The recorded costs of those assets are the present values of all lease payments. We amortize our finance lease right of use (“ROU”) assets over their respective lease terms. If a satellite were to fail while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from two . Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized. Internal Use Software We capitalize certain costs related to developing or acquiring internal use software. Capitalization of software costs begins once the preliminary project stage is completed and we commit to funding the software project. Capitalizing ceases when the software project is ready for its intended use. Capitalized software costs are recorded in “Property and equipment, net” on our Other Investments Equity Method Investments We use the equity method to account for investments when we have the ability to exercise significant influence on the operating decisions of the affiliate. Such investments are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The carrying amount of such investments includes a component of goodwill when the cost of our investment exceeds the fair value of the underlying identifiable assets and liabilities of the affiliate. Dividends received from these affiliates reduces the carrying amount of our investment. Cost Method Investments We generally measure investments in non-publicly traded equity instruments without a readily determinable fair value at cost adjusted for observable price changes in orderly transactions for the identical or similar securities of the same issuer and changes resulting from impairments, if any. Other equity instruments are measured to determine their value based on observable market information. When we adjust the carrying amount of an investment to its estimated fair value, the gain or loss is recorded in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Impairment Considerations We periodically evaluate all of our other investments to determine whether events or changes in circumstances have occurred that may have a significant adverse effect on the fair value of the investment. We consider information if provided to us by our investees such as current financial statements, business plans, investment documentation, capitalization tables, liquidation waterfalls, and board materials; and we may make additional inquiries of investee management. Indicators of impairment may include, but are not limited to, unprofitable operations, material loss contingencies, changes in business strategy, changes in market trends or market conditions, changes in the investees’ enterprise value and changes in the investees’ investment pricing. When we determine that one of our other investments is impaired we reduce its carrying value to its estimated fair value and recognize the impairment loss in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Impairment of Long-Lived Assets and Finite-Lived Intangible Assets We review our long-lived assets and identifiable finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Intangible assets that have finite lives are amortized over their estimated useful lives. For assets which are held and used in operations, the asset would be impaired if the carrying amount of the asset (or asset group) exceeded its undiscounted future net cash flows. When an impairment is determined, the actual impairment recognized is the difference between the carrying amount and the fair value as estimated using one of the following approaches: income, cost and/or market. In the event of an impairment, a loss is recorded in “Impairment of long-lived assets and goodwill” on our Consolidated Statements of Operations and Comprehensive Income (Loss) based on the amount by which the carrying amount exceeds the fair value of the long-lived asset or asset group. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Fair value, using the income approach, is determined primarily using a discounted cash flow model that uses the estimated cash flows associated with the asset or asset group under review, discounted at a rate commensurate with the risk involved. Fair value, utilizing the cost approach, is determined based on the replacement cost of the asset reduced for, among other things, depreciation and obsolescence. Fair value, utilizing the market approach, benchmarks the fair value against the carrying amount. DBS Satellites We currently evaluate our DBS satellite fleet for impairment as one asset group whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2023 and 2022. Finite-Lived Intangible Assets Intangible assets include customer relationships, trademarks, and certain below market contracts. These assets are amortized over their respective useful lives. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2023 and 2022. Indefinite-Lived Intangible Assets and Goodwill We do not amortize indefinite-lived intangible assets and goodwill but test these assets for impairment annually during the fourth quarter or more often if indicators of impairment arise. We have the option to first perform a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. However, we may elect to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our FCC licenses have indefinite useful lives due to the following: ● FCC licenses are a non-depleting asset; ● existing FCC licenses are integral to our business segments and will contribute to cash flows indefinitely; ● replacement DBS satellite applications are generally authorized by the FCC subject to certain conditions, without substantial cost under a stable regulatory, legislative and legal environment; ● maintenance expenditures to obtain future cash flows are not significant; ● FCC licenses are not technologically dependent; and ● we intend to use these assets indefinitely. DBS Licenses We combine all of our indefinite-lived DBS licenses that we currently utilize or plan to utilize in the future into a single unit of accounting. For 2023, 2022 and 2021, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS licenses exceeds the carrying amount. In our assessment, we considered several factors, including, among others, overall financial performance, industry and market considerations, and relevant company specific events. In contemplating all factors in their totality, we concluded that it is more likely than not that the fair value of the DBS licenses exceeds its carrying amount. As such, no further analysis was required. Goodwill Goodwill represents the excess of the consideration transferred over the estimated fair values of assets acquired and liabilities assumed as of the acquisition date. We perform our annual impairment assessment for goodwill and other indefinite-lived intangible assets each year during the fourth quarter or more frequently if events or changes in circumstances indicate an impairment may be possible. W e may consider qualitative factors to assess if it is more likely than not that the fair value for goodwill is below the carrying amount. If we determine in the qualitative assessment that it is more likely than not that the fair value is less than its carrying value, We may also elect to bypass the qualitative assessment and perform a quantitative assessment. Our assessment process included, among other things, discounted cash flow analyses, consideration of fair values of tangible and indefinite-lived intangible assets held by the reporting units and our ultimate parent, EchoStar’s recent market capitalization. Our assessment indicated the goodwill attributed to certain acquisitions was no longer supported based on the sustained decrease in our ultimate parent, EchoStar’s market capitalization. As such, we recorded a total noncash impairment charge of approximately $6 million in “Impairment of long-lived assets and goodwill” on our Consolidated Statements of Operations and Comprehensive Income (Loss). No impairments were indicated for any reporting unit for the years ended December 31, 2022 and 2021. Business Combinations When we acquire a business that is not subject to rules pertaining to common control, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component using various valuation techniques, including the market approach, income approach and/or cost approach. The accounting standard for business combinations requires identifiable assets, liabilities, noncontrolling interests and goodwill acquired to be recorded at acquisition-date fair values. Transaction costs related to the acquisition of the business are expensed as incurred. Costs associated with the issuance of debt associated with a business combination are capitalized and included as a yield adjustment to the underlying debt’s stated rate. Acquired intangible assets other than goodwill are amortized over their estimated useful lives unless the lives are determined to be indefinite. Amortization of these intangible assets in general are recognized on a straight-line basis over an average finite useful life primarily ranging from approximately 13 Long-Term Deferred Revenue and Other Long-Term Liabilities Certain programmers provide us up-front payments. Such amounts are deferred and recognized as reductions to “Cost of services” on a straight-line basis over the relevant remaining contract term (generally up to ). The current and long-term portions of these deferred credits are recorded on our Consolidated Balance Sheets in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities,” respectively. Sales Taxes We account for sales taxes imposed on our goods and services on a net basis on our Consolidated Statements of Operations and Comprehensive Income (Loss). Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. Income Taxes We establish a provision for income taxes currently payable or receivable and for income tax amounts deferred to future periods. Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that exist between the book and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that such net deferred tax assets will not be realized. From time to time, we engage in transactions where the tax consequences may be subject to uncertainty. We record a liability when, in management’s judgment, a tax filing position does not meet the more likely than not threshold. For tax positions that meet the more likely than not threshold, we may record a liability depending on management’s assessment of how the tax position will ultimately be settled. We adjust our estimates periodically for ongoing examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and precedent. We classify interest and penalties, if any, associated with our uncertain tax positions as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss). Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: ● Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ● Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of December 31, 2023 and 2022, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. Fair values of our marketable investment securities are measured on a recurring basis based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Additionally, we use fair value measurements from time to time in connection with other investments, asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were 31, 2023 and 2022. See Note 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. Deferred Debt Issuance Costs and Debt Discounts Costs of issuing debt, including premiums and discounts relative to par value, are generally deferred and amortized to “Interest expense, net of amounts capitalized” on our Consolidated Statements of Operations and Comprehensive Income (Loss) using the effective interest rate method over the terms of the respective notes. We report unamortized debt issuance costs as a reduction of the related long-term debt on our Consolidated Balance Sheets. See Note 8 for further information. Revenue Recognition Our revenue is primarily derived from Pay-TV subscriber revenue. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 14 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than . 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. A contract asset is recorded when revenue is recognized in advance of our right to receive consideration (i.e., we must perform additional services in order to receive consideration). Amounts are recorded as trade accounts receivable when our right to consideration is unconditional. When consideration is received, or we have an unconditional right to consideration in advance of delivery of goods or services, a contract liability is recorded. The transaction price can include nonrefundable upfront fees, which are allocated to the identifiable performance obligations. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. Contract assets are included in “Trade accounts receivable, net” and contract liabilities are included in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Consolidated Balance Sheets. Contract balances are amortized over the contract term. See Note 15 for further information, including balance and activity detail about our allowance for credit losses and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated customer life or the contract term. These amounts are capitalized in “Prepaids and other assets” and “Other noncurrent assets, net” on our Consolidated Balance Sheets, and then amortized in “Selling, general and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Leases Lessee Accounting We enter into non-cancelable operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles and other equipment. Substantially all of our leases have remaining lease terms from one within . For certain arrangements, the lease term includes the non-cancelable period plus the renewal period that we are reasonably certain to exercise. We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses and liabilities” and “Operating lease liabilities” on our Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 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. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. When our leases do not provide an implicit rate, we use our IBR based on the information available at commencement date in determining the present value of lease payments. Our IBR is based on an estimated secured rate for the same term as the underlying lease plus a credit spread as secured by our assets. For leases denominated in a currency different than U.S. dollar, IBR is estimated using the collateralized borrowing rate in the foreign currency using the U.S. dollar and foreign currency swap spread, when available. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which |
Supplemental Data - Statements
Supplemental Data - Statements of Cash Flows | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Data - Statements of Cash Flows | |
Supplemental Data - Statements of Cash Flows | 3. Supplemental Data - Statements of Cash Flows The following table presents certain supplemental cash flow and other non-cash data. See Note 7 for supplemental cash flow and non-cash data related to leases. For the Years Ended December 31, 2023 2022 2021 (In thousands) Cash paid for interest $ 747,332 $ 899,382 $ 636,934 Cash received for interest 19,972 20,967 4,263 Cash received for interest - Intercompany Loan 104,940 — — Cash paid for income taxes, net of (refunds) 12,951 29,000 31,025 Cash paid for income taxes to DISH Network 622,512 489,819 562,268 Vendor financing 26,751 — 164 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 Consolidated Balance Sheets are a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Consolidated Balance Sheets and are 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 Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities. |
Marketable Investment Securitie
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 12 Months Ended |
Dec. 31, 2023 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 4. Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities Our marketable investment securities, restricted cash and cash equivalents, and other investment securities consisted of the following: As of December 31, 2023 2022 (In thousands) Marketable investment securities: Current marketable investment securities $ 397 $ 282,733 Restricted cash and cash equivalents (1) 54,980 53,525 Other investment securities, net: Equity method investments 90,168 93,806 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 145,545 $ 430,064 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Consolidated Balance Sheets. Marketable Investment Securities Our marketable investment securities portfolio may consist of debt and equity instruments. All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Stockholder’s Equity (Deficit),” net of related deferred income tax on our Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information. Current Marketable Investment Securities 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 . U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies. Restricted Cash, Cash Equivalents and Marketable Investment Securities As of December 31, 2023 and 2022, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts. Other Investments, net We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investments, net” on our Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and are recorded at fair value. Our equity investments where we have the ability to exercise significant influence over the investee are accounted for using the equity method of accounting. Certain of our equity method investments are detailed below. NagraStar L.L.C. We own a interest in NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. The Invidi Technologies Corporation . interest in Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. Invidi contracts with multichannel video programming distributers to include its software in their respective set-top boxes and DVRs in order to deliver targeted advertisements based on a variety of demographic attributes selected by the advertisers. Invidi has also developed a cloud-based solution for internet protocol-based platforms. Our ability to realize value from our strategic investments in securities that are not publicly traded depends on, among other things, the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them, we will not be able to obtain fair value for them. Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of December 31, 2023 2022 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 411,571 $ 358,545 $ 53,026 $ — $ 650,523 $ 99,437 $ 551,086 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ — $ — $ — $ — $ 7,727 $ 7,727 $ — $ — Commercial paper — — — — 227,787 — 227,787 — Corporate securities — — — — 46,764 — 46,764 — Other 397 — 397 — 455 — 455 — Total $ 397 $ — $ 397 $ — $ 282,733 $ 7,727 $ 275,006 $ — As of December 31, 2023, restricted and non-restricted marketable investment securities included debt securities of $397 thousand 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. Gains and Losses on Sales and Changes in Carrying Amounts of Investments and Other “Other, net” within “Other Income (Expense)” included on our Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows: For the Years Ended December 31, Other, net: 2023 2022 2021 (In thousands) Gains (losses) related to early redemption of debt $ 1,262 $ (922) $ (3,587) Equity in earnings (losses) of affiliates (1,202) 4,112 2,520 Other 458 1,276 247 Total $ 518 $ 4,466 $ (820) |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2023 | |
Inventory | |
Inventory | 5. Inventory Inventory consisted of the following: As of December 31, 2023 2022 (In thousands) Finished goods $ 208,049 $ 252,939 Work-in-process and service repairs 35,457 19,351 Raw materials 24,335 35,121 Total inventory $ 267,841 $ 307,411 |
Property and Equipment and Inta
Property and Equipment and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment and Intangible Assets | |
Property and Equipment and Intangible Assets | 6. Property and Equipment and Intangible Assets Property and Equipment Property and equipment consisted of the following: Depreciable Life As of December 31, (In Years) 2023 2022 (In thousands) Equipment leased to customers 2-5 $ 1,175,734 $ 1,309,737 EchoStar XV 15 277,658 277,658 EchoStar XVIII 15 411,255 411,255 Satellites acquired under finance lease agreements 5 174,685 174,685 Furniture, fixtures, equipment and other 2-10 755,163 753,138 Software and computer equipment 3-5 1,197,632 1,161,392 Buildings and improvements 5-40 294,890 295,375 Land - 12,505 12,505 Construction in progress - 45,413 35,326 Total property and equipment 4,344,935 4,431,071 Accumulated depreciation (3,536,870) (3,440,185) Property and equipment, net $ 808,065 $ 990,886 Depreciation and amortization expense consisted of the following: For the Years Ended December 31, 2023 2022 2021 (In thousands) Equipment leased to customers $ 166,918 $ 191,712 $ 244,735 Satellites 80,292 84,016 95,187 Buildings, furniture, fixtures, equipment and other 68,450 78,633 99,082 Total depreciation and amortization $ 315,660 $ 354,361 $ 439,004 Cost of sales and operating expense categories included in our accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation and amortization expense related to satellites, equipment leased to customers or software. Satellites We currently utilize nine satellites in geostationary orbit approximately 22,300 miles above the equator, two of which we own and depreciate over their estimated useful life. We currently utilize certain capacity on satellites that we lease from DISH Network, which are accounted for as operating leases, except for Nimiq 5 which is accounted for as a finance lease and is depreciated over its economic life. We also lease satellites from a third party: the Anik F3 satellite, which was accounted for as a finance lease until April 2022 and was fully depreciated. During April 2022, we extended the Anik F3 lease and as a result it is currently accounted for as an operating lease. As of July 2023, we no longer lease the Ciel II satellite. As of December 31, 2023, 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 Under Construction: EchoStar XXV 2026 110 N/A Leased from DISH Network (1): EchoStar X February 2006 110 February 2025 EchoStar XI July 2008 110 February 2025 EchoStar XIV March 2010 119 February 2025 EchoStar XVI November 2012 61.5 January 2025 EchoStar XXIII March 2017 110 Month to Month Nimiq 5 September 2009 72.7 September 2024 Leased from Other Third-Party: Anik F3 April 2007 118.7 April 2025 (1) See Note 17 for further information on our Related Party Transactions with DISH Network. Satellites Under Construction On March 20, 2023, DISH Network entered into a contract with Maxar Space LLC for the construction of EchoStar XXV, a DBS satellite that is capable of providing service to the continental United States (“CONUS”) and is intended to be used at the 110 degree orbital location. During the fourth quarter of 2023, DISH Network entered into an agreement with Space Exploration Technologies Corp (“SpaceX”) for launch services for this satellite, which is expected to be launched during 2026. Satellite Anomalies Operation of our DISH TV services requires that we have adequate satellite transmission capacity for the programming that we offer. While we generally have had in-orbit satellite capacity sufficient to transmit our existing channels and some backup capacity to recover the transmission of certain critical programming, our backup capacity is limited. In the event of a failure or loss of any of our owned or leased satellites, we may need to acquire or lease additional satellite capacity or relocate one of our other owned or leased satellites and use it as a replacement for the failed or lost satellite. Such a failure could result in a prolonged loss of critical programming or a significant delay in our plans to expand programming as necessary to remain competitive and thus may have a material adverse effect on our business, financial condition and results of operations. In the past, certain of our owned and leased satellites have experienced anomalies, some of which have had a significant adverse impact on their remaining useful life and/or commercial operation. There can be no assurance that future anomalies will not impact the remaining useful life and/or commercial operation of any of the owned and leased satellites in our fleet. See Note 2 for further information on evaluation of impairment. There can be no assurance that we can recover critical transmission capacity in the event one or more of our owned or leased in-orbit satellites were to fail. We generally do not carry commercial launch or in-orbit insurance on any of the satellites that we own and therefore, we will bear the risk associated with any uninsured launch or in-orbit satellite failures. Intangible Assets As of December 31, 2023 and 2022, our identifiable intangibles subject to amortization consisted of the following: As of December 31, 2023 2022 Intangible Accumulated Intangible Accumulated Assets Amortization Assets Amortization (In thousands) Technology-based $ 58,162 $ (55,623) $ 58,162 $ (55,079) Trademarks 18,251 (17,160) 18,251 (17,050) Contract-based 4,500 (4,500) 4,500 (4,500) Customer relationships 23,632 (23,632) 23,632 (23,632) Total $ 104,545 $ (100,915) $ 104,545 $ (100,261) These identifiable intangibles are included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. Amortization of these intangible assets is recorded on a straight-line basis over an average finite useful life primarily ranging from approximately 13 . Amortization was Estimated future amortization of our identifiable intangible assets as of December 31, 2023 is as follows (in thousands): For the Years Ended December 31, 2024 $ 654 2025 654 2026 654 2027 654 2028 473 Thereafter 541 Total $ 3,630 Goodwill Goodwill represents the excess of the consideration transferred over the estimated fair values of assets acquired and liabilities assumed as of the acquisition date and is not subject to amortization but is subject to impairment testing annually or whenever indicators of impairment arise. During the year ended December 31, 2023, we recorded a noncash impairment charge for goodwill of $6 million in “Impairment of long-lived assets and goodwill” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information. The non-recurring measurement of fair value of goodwill is classified as Level 3 in the fair value hierarchy. As of December 31, 2023 and 2022, we had goodwill of zero and $6 million, which is included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. Regulatory Authorizations As of December 31, 2023 and 2022, our FCC Authorizations consisted of the following: As of December 31, 2023 2022 (In thousands) DBS Licenses $ 611,794 $ 611,794 Total $ 611,794 $ 611,794 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Leases | 7. Leases Lessee Accounting We enter into non-cancelable 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 some of within . For certain arrangements, the lease term includes the non-cancelable period plus the renewal period that we are reasonably certain to exercise. Through the first quarter of 2022, our Anik F3 satellite was accounted for as a finance lease. However, during April 2022, we extended the Anik F3 lease and as a result, it is currently accounted for as an operating lease. Nimiq 5 is accounted for as a finance lease. 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 Years Ended December 31, 2023 2022 2021 (In thousands) Operating lease cost (1) $ 70,262 $ 166,599 $ 217,635 Short-term lease cost (1)(2) 169,159 74,514 33,456 Finance lease cost: Amortization of right-of-use assets (3) 34,448 38,322 49,496 Interest on lease liabilities (3) 4,845 8,566 13,122 Total finance lease cost (3) 39,293 46,888 62,618 Total lease costs $ 278,714 $ 288,001 $ 313,709 (1) The decrease in “Operating lease cost” is primarily related to our intercompany satellite leases with DISH Network, which were reclassified to “Short-term lease costs” during 2022 and the first quarter of 2023. All of our satellite operating leases with DISH Network are now short-term leases. In addition, the decrease in “Operating lease cost” from 2021 to 2022 was primarily related to the QuetzSat-1 lease, which expired in November 2021. (2) Leases that have terms of 12 months or less. (3) The decrease in finance lease cost is primarily related to the Anik F3 finance lease that was extended in April 2022 and as a result is currently accounted for as an operating lease. Supplemental cash flow information related to leases was as follows : For the Years Ended December 31, 2023 2022 2021 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 96,195 $ 138,318 $ 213,135 Operating cash flows from finance leases $ 6,633 $ 6,733 $ 13,002 Financing cash flows from finance leases $ 47,030 $ 31,030 $ 51,608 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 30,657 $ 74,317 $ 22,780 Finance leases $ — $ — $ — Supplemental balance sheet information related to leases was as follows: As of December 31, 2023 2022 (In thousands) Operating Leases: Operating lease assets $ 92,972 $ 130,454 Other current liabilities $ 36,618 $ 60,203 Operating lease liabilities 61,381 75,142 Total operating lease liabilities $ 97,999 $ 135,345 Finance Leases: Property and equipment, gross $ 175,704 $ 175,704 Accumulated depreciation (149,917) (115,469) Property and equipment, net $ 25,787 $ 60,235 Other current liabilities $ 31,104 $ 38,102 Other long-term liabilities — 31,104 Total finance lease liabilities $ 31,104 $ 69,206 Weighted Average Remaining Lease Term: Operating leases 4.1 years 3.7 years Finance leases 0.8 years 1.8 years Weighted Average Discount Rate: Operating leases 8.3% 7.2% Finance leases 10.0% 10.0% Maturities of lease liabilities as of December 31, 2023 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2024 $ 41,709 $ 32,147 $ 73,856 2025 26,417 — 26,417 2026 15,898 — 15,898 2027 8,337 — 8,337 2028 7,361 — 7,361 Thereafter 17,792 — 17,792 Total lease payments 117,514 32,147 149,661 Less: Imputed interest (19,515) (1,043) (20,558) Total 97,999 31,104 129,103 Less: Current portion (36,618) (31,104) (67,722) Long-term portion of lease obligations $ 61,381 $ — $ 61,381 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt and Finance Lease Obligations | |
Long-Term Debt and Finance Lease Obligations | 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 December 31, 2023 and 2022: As of December 31, 2023 2022 Issuer Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 5% Senior Notes due 2023 (1) DDBS $ — $ — $ 1,443,179 $ 1,441,635 5 7/8% Senior Notes due 2024 (2) DDBS 1,982,544 1,872,275 2,000,000 1,870,940 7 3/4% Senior Notes due 2026 DDBS 2,000,000 1,388,060 2,000,000 1,620,280 5 1/4% Senior Secured Notes due 2026 DDBS 2,750,000 2,366,073 2,750,000 2,336,813 7 3/8% Senior Notes due 2028 DDBS 1,000,000 600,160 1,000,000 708,320 5 3/4% Senior Secured Notes due 2028 DDBS 2,500,000 2,013,125 2,500,000 2,013,675 5 1/8% Senior Notes due 2029 DDBS 1,500,000 774,600 1,500,000 976,755 Other notes payable 42,678 42,678 18,329 18,329 Subtotal 11,775,222 $ 9,056,971 13,211,508 $ 10,986,747 Unamortized deferred financing costs and debt discounts, net (26,812) (35,206) Finance lease obligations (3) 31,104 69,206 Total long-term debt and finance lease obligations (including current portion) $ 11,779,514 $ 13,245,508 (1) We had repurchased or redeemed the principal balance of our 5% Senior Notes due 2023 as of March 15, 2023, the instrument’s maturity date. (2) During the year ended December 31, 2023, we repurchased approximately $17 million of our 5 7/8% Senior Notes due 2024 in open market trades. The remaining balance of approximately $1.983 billion matures on November 15, 2024 and is included in “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2023. (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). Unsecured Senior Notes Our Senior Notes are: ● general unsecured senior obligations of DISH DBS; ● ranked equally in right of payment with all of DISH DBS’ and the guarantors’ existing and future unsecured senior debt; and ● ranked effectively junior to our and the guarantors’ current and future secured senior indebtedness up to the value of the collateral securing such indebtedness. The indentures related to our Senior Notes contain restrictive covenants that, among other things, impose limitations on the ability of DISH DBS and its restricted subsidiaries to: ● incur additional debt; ● pay dividends or make distributions on DISH DBS’ capital stock or repurchase DISH DBS’ capital stock; ● make certain investments; ● create liens or enter into sale and leaseback transactions; ● enter into transactions with affiliates; ● merge or consolidate with another company; and ● transfer or sell assets. In the event of a change of control, as defined in the related indentures, we would be required to make an offer to repurchase all or any part of a holder’s Senior Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon, to the date of repurchase. 5 7/8% Senior Notes due 2024 On November 20, 2014, we issued $2.0 billion aggregate principal amount of our ten-year 5 7/8% Senior Notes due November 15, 2024. On January 29, 2015, we completed an exchange offer in which we exchanged substantially all of the notes for a like principal amount of notes with identical terms, except that such new notes have been registered under the Securities Act. We did not receive any proceeds in the exchange offer. Interest accrues at an annual rate of 5 7/8% The 5 7/8% 7 3/4% Senior Notes due 2026 On June 13, 2016, we issued $2.0 billion aggregate principal amount of our ten-year 7 3/4% Senior Notes due July 1, 2026. On October 3, 2016, we completed an exchange offer in which we exchanged substantially all of the notes for a like principal amount of notes with identical terms, except that such new notes have been registered under the Securities Act. We did not receive any proceeds in the exchange offer. Interest accrues at an annual rate of 7 3/4% and is payable semi-annually in cash, in arrears on January 1 and July 1 of each year. The 7 3/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 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. On September 29, 2020, we completed an exchange offer in which we exchanged substantially all of the notes for a like principal amount of notes with identical terms, except that such new notes have been registered under the Securities Act. We did not receive any proceeds in the exchange offer. 7 3/8% The 7 3/8% 5 1/8% Senior Notes due 2029 On May 24, 2021, we issued $1.5 billion aggregate principal amount of our 5 1/8% Senior Notes due June 1, 2029. On August 30, 2021, we completed an exchange offer in which we exchanged substantially all of the notes for a like principal amount of notes with identical terms, except that such new notes have been registered under the Securities Act. We did not receive any proceeds in the exchange offer. 5 1/8% The 5 1/8% 5 1/8% Senior Secured Notes Our Senior Secured Notes are: ● general senior secured obligations of DISH DBS; ● secured by security interests in substantially all existing and future tangible and intangible assets of DISH DBS and its principal operating subsidiaries on a first priority basis, subject to certain exceptions; ● ranked equally in right of payment with all of DISH DBS’ and the guarantors’ existing and future senior debt; ● ranked senior in right of payment and effectively senior to any of DISH DBS’ and the guarantors’ junior lien or unsecured debt to the extent of the value of the pledged collateral that secures the Senior Secured Notes; and ● ranked effectively junior to DISH DBS’ and the guarantors’ obligations that are secured by assets that are not part of the pledged collateral that secures the Senior Secured Notes, to the extent of the value of such assets. The indenture related to our Senior Secured Notes contain restrictive covenants that, among other things, impose limitations on the ability of DISH DBS and its restricted subsidiaries to: ● incur additional debt; ● pay dividends or make distributions on DISH DBS’ capital stock or repurchase DISH DBS’ capital stock; ● make certain investments; ● create liens or enter into sale and leaseback transactions; ● enter into transactions with affiliates; ● merge or consolidate with another company; and ● transfer or sell assets. In the event of a change of control, as defined in the related indenture, we would be required to make an offer to repurchase all or any part of a holder’s Senior Secured Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon, to the date of repurchase. The net proceeds from the offering of our Senior Secured Notes were used to make an intercompany loan to DISH Network pursuant to a Loan and Security Agreement dated November 26, 2021 (together with future advances to DISH Network, the “Intercompany Loan”) between us and DISH Network in order to finance the potential purchase of wireless spectrum licenses and for general corporate purposes, including the buildout of wireless infrastructure. We may make additional advances to DISH Network under the Intercompany Loan, and on February 11, 2022, we advanced an additional billion to DISH Network under the Intercompany Loan. The Intercompany Loan is secured by (i) the cash proceeds of the loan and (ii) an interest in any wireless spectrum licenses acquired using such proceeds. In certain cases, DISH Network wireless spectrum licenses (valued based upon a third-party valuation) may be substituted for the collateral. The Intercompany Loan is not included as collateral for the Senior Secured Notes, and the Senior Secured Notes are subordinated to our existing and certain future unsecured notes with respect to certain realizations under the Intercompany Loan and any collateral pledged as security for the Intercompany Loan. The initial cash proceeds of the Intercompany Loan were paid to the FCC by DISH Network in connection with DISH Network’s wholly-owned subsidiary Weminuche L.L.C.’s (“Weminuche”) winning bids in the FCC’s auction for the Flexible-Use Service Licenses in the 3.45–3.55 GHz band (“Auction 110”). As a result, the Intercompany Loan is secured by Weminuche’s interest in the wireless spectrum licenses acquired in Auction 110 with such cash proceeds. 5 1/4% Senior Secured Notes due 2026 On November 26, 2021, we issued $2.750 billion aggregate principal amount of our 5 1/4% Senior Secured Notes due December 1, 2026. Interest accrues at an annual rate of 5 1/4% The 5 1/4% 5 1/4% Prior to December 1, 2024, we may also redeem up to 5 1/4% Senior Secured Notes due 2026 at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. At 5 1/4% 5 3/4% Senior Secured Notes due 2028 On November 26, 2021, we issued $2.5 billion aggregate principal amount of our 5 3/4% Senior Secured Notes due December 1, 2028. Interest accrues at an annual rate of 5 3/4% The 5 3/4% 5 3/4% Prior to December 1, 2024, we may also redeem up to 5 3/4% Senior Secured Notes due 2028 at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. At 5 3/4% Interest on Long-Term Debt Annual Semi-Annual Debt Service Payment Dates Requirements (In thousands) 5 7/8% May 15 and November 15 $ 117,500 7 3/4% January 1 and July 1 $ 155,000 5 1/4% June 1 and December 1 $ 144,375 7 3/8% Senior Notes due 2028 January 1 and July 1 $ 73,750 5 3/4% June 1 and December 1 $ 143,750 5 1/8% June 1 and December 1 $ 76,875 (1) Our 5 7/8% Senior Notes due 2024 mature on November 15, 2024 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2023. Our ability to meet our debt service requirements will depend on, among other factors, the successful execution of our business strategy, which is subject to uncertainties and contingencies beyond our control. Other Long-Term Debt and Finance Lease Obligations Other long-term debt and finance lease obligations consisted of the following: As of December 31, 2023 2022 (In thousands) Satellites and other finance lease obligations $ 31,104 $ 69,206 Notes payable related to satellite vendor financing and other debt payable in installments through 2031 with interest rates ranging from approximately 4.0% to 6.0% 42,678 18,329 Total 73,782 87,535 Less: current portion (41,432) (40,922) Other long-term debt and finance lease obligations, net of current portion $ 32,350 $ 46,613 Finance Lease Obligations Anik F3. Anik F3, an FSS satellite, was launched and commenced commercial operation in April 2007. This satellite was previously accounted for as a finance lease and depreciated over the term of the satellite service agreement. We leased . During April 2022, we extended the Anik F3 lease and as a result it is currently accounted for as an operating lease. Nimiq 5 . On May 19, 2019, DISH Network entered into an agreement pursuant to which, on September 10, 2019, the satellite service agreement for Nimiq 5 was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network. Nimiq 5 was launched in September 2009 and commenced commercial operation at the 72.7 degree west longitude orbital location during October 2009. This satellite is accounted for as a finance lease and depreciated over the term of the satellite service agreement which includes options to extend the lease that we are reasonably certain to exercise. We lease of the capacity on Nimiq 5, and this lease expires in September 2024. See Note 17 for further information. The summary of future maturities of our outstanding long-term debt as of December 31, 2023 is included in the commitments table in Note 12. Future Liquidity We have made cash distributions and the Intercompany Loan to partially finance the development of DISH Network’s 5G Network Deployment, including, but not limited to, the purchase of wireless spectrum licenses and the retail wireless business to date, and we may make additional funds available to DISH Network or EchoStar in the form of cash distributions or loans to finance, in whole or in part, DISH Network or EchoStar’s future efforts. These factors, including, but not limited to, debt maturities, continuing investment in our business, financing acquisitions and other strategic transactions, require us to raise additional capital in the future which may not be available on favorable terms, or at all. |
Income Taxes and Accounting for
Income Taxes and Accounting for Uncertainty in Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes and Accounting for Uncertainty in Income Taxes | |
Income Taxes and Accounting for Uncertainty in Income Taxes | 9. Income Taxes and Accounting for Uncertainty in Income Taxes Income Taxes DISH DBS and its domestic subsidiaries join with DISH Network in filing U.S. consolidated federal income tax returns and, in some states, combined or consolidated returns. The federal and state income tax provisions or benefits recorded by DISH DBS are generally those that would have been recorded if DISH DBS and its domestic subsidiaries had filed returns as a consolidated group independent of DISH Network. Cash is due and paid to DISH Network based on amounts that would be payable based on DISH DBS consolidated or combined group filings. Amounts are receivable from DISH Network on a basis similar to when they would be receivable from the IRS or other state taxing authorities. The amounts paid to DISH Network during the years ended December 31, 2023, 2022 and 2021 were Our income tax policy is to record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported on our Consolidated Balance Sheets, as well as probable operating loss, tax credit and other carryforwards. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that net deferred tax assets will not be realized. We periodically evaluate our need for a valuation allowance. Determining necessary valuation allowances requires us to make assessments about historical financial information as well as the timing of future events, including the probability of expected future taxable income and available tax planning opportunities. As of December 31, 2023, we had no net operating loss carryforwards (“NOLs”) for federal and state income tax purposes. In addition, there are million of tax benefits related to credit carryforwards which are fully offset by a valuation allowance. Portions of the credit carryforwards expired in 2023. The components of the (benefit from) provision for income taxes were as follows: For the Years Ended December 31, 2023 2022 2021 (In thousands) Current (benefit) provision: Federal $ 528,689 $ 572,754 $ 486,736 State 118,540 133,475 106,594 Foreign 2,475 (4,255) 2,387 Total current (benefit) provision 649,704 701,974 595,717 Deferred (benefit) provision: Federal (69,321) (95,995) (31,424) State (15,794) (20,720) (7,090) Increase (decrease) in valuation allowance 515 — (2,790) Total deferred (benefit) provision (84,600) (116,715) (41,304) Total (benefit) provision $ 565,104 $ 585,259 $ 554,413 Our $2.310 billion of “Income (loss) before income taxes” on our Consolidated Statements of Operations and Comprehensive Income (Loss) included income of $13 million related to our foreign operations. The following table shows the principal reasons for the difference between the effective income tax rate and the statutory federal tax rate: For the Years Ended December 31, 2023 2022 2021 % of pre-tax income/(loss) Statutory rate 21.0 21.0 21.0 State income taxes, net of federal benefit 3.4 3.5 3.5 Other, net 0.1 (0.1) (0.3) Total (benefit) provision for income taxes 24.5 24.4 24.2 Deferred taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Significant components of deferred tax assets and liabilities were as follows: As of December 31, 2023 2022 (In thousands) Deferred tax assets: NOL, interest, credit and other carryforwards $ 7,277 $ 7,642 Accrued and prepaid expenses 22,449 8,526 Stock-based compensation 16,686 19,374 Deferred revenue 6,118 7,344 Bases differences in partnerships and cost method investments 3,360 1,281 Total deferred tax assets 55,890 44,167 Valuation allowance (8,194) (7,679) Deferred tax asset after valuation allowance 47,696 36,488 Deferred tax liabilities: Depreciation (193,564) (235,498) Regulatory authorizations and other intangible amortization (122,302) (153,738) Total deferred tax liabilities (315,866) (389,236) Net deferred tax asset (liability) $ (268,170) $ (352,748) Accounting for Uncertainty in Income Taxes In addition to filing federal income tax returns, we and one or more of our subsidiaries file income tax returns in all states that impose an income tax and a small number of foreign jurisdictions where we have immaterial operations. We are subject to United States federal, state and local income tax examinations by tax authorities for the years beginning in 2008 due to the carryover of previously incurred NOLs. We are currently under a federal income tax examination for years 2008 through 2011, 2013 through 2016, and 2018 through 2019. A reconciliation of the beginning and ending amount of unrecognized tax benefits included in “Long-term deferred revenue and other long-term liabilities” on our Consolidated Balance Sheets was as follows: For the Years Ended December 31, Unrecognized tax benefit 2023 2022 2021 (In thousands) Balance as of beginning of period $ 204,378 $ 198,511 $ 188,141 Additions based on tax positions related to the current year 3,601 3,444 303 Additions based on tax positions related to prior years 2,892 9,523 12,095 Reductions based on tax positions related to prior years (7,219) (7,100) (1,400) Reductions based on tax positions related to settlements with taxing authorities (834) — — Reductions based on tax positions related to the lapse of the statute of limitations (352) — (628) Balance as of end of period $ 202,466 $ 204,378 $ 198,511 We have $164 million in unrecognized tax benefits that, if recognized, could favorably affect our effective tax rate. We do not expect any material portion of this amount to be paid or settled within the next 12 months. Accrued interest and penalties on uncertain tax positions are recorded as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss). During the years ended December 31, 2023, 2022 and 2021, we recorded million in net interest and penalty expense to earnings, respectively. Accrued interest and penalties were 2023 and 2022, respectively. The above table excludes these amounts. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans | |
Employee Benefit Plans | 10. Employee Benefit Plans Employee Stock Purchase Plan Our employees may participate in the EchoStar employee stock purchase plan (the “ESPP”), in which EchoStar is authorized to issue up to 5.0 million shares of Class A common stock. At December 31, 2023, EchoStar had A common stock which remain available for issuance under the ESPP. Substantially all full-time employees who have been employed by EchoStar for at least one calendar quarter are eligible to participate in the ESPP. Employee stock purchases are made through payroll deductions. Under the terms of the ESPP, employees may not deduct an amount which would permit such employee to purchase EchoStar’s capital stock under all of EchoStar’s stock purchase plans at a rate which would exceed in fair value of capital stock in any one year. The purchase price of the stock is A common stock are deemed sold to an employee under the ESPP. 401(k) Employee Savings Plans EchoStar sponsors a 401(k) Employee Savings Plan (the “DISH Network 401(k) Plan”) for our eligible employees. Voluntary employee contributions to the DISH Network 401(k) Plan may be matched per employee. Forfeitures of unvested participant balances which are retained by the DISH Network 401(k) Plan may be used to fund matching and discretionary contributions. EchoStar’s Board of Directors may also authorize an annual discretionary contribution to the DISH Network 401(k) Plan, subject to the maximum deductible limit provided by the Internal Revenue Code of 1986, as amended. These contributions may be made in cash or in EchoStar’s stock. The following table summarizes the expense associated with our matching contributions and discretionary contributions: For the Years Ended December 31, Expense Recognized Related to the 401(k) Plan 2023 2022 2021 (In thousands) Matching contributions, net of forfeitures $ 10,966 $ 10,150 $ 7,525 Discretionary stock contributions, net of forfeitures $ 52 $ 11,150 $ 24,347 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation | |
Stock-Based Compensation | 11. Stock-Based Compensation DISH Network’s Merger with EchoStar Upon the completion of the Merger with EchoStar, EchoStar adopted all of DISH Network’s stock compensation plans. At the Effective Time, each DISH Network stock option outstanding immediately prior to the Effective Time was converted automatically into an EchoStar stock option on substantially the same terms and conditions (including, if applicable, with respect to any performance-based vesting, subject to certain adjustments that may be made pursuant to the terms of the Amended Merger Agreement and to the extent necessary to reflect the consummation of the Merger and the other transactions contemplated by the Amended Merger Agreement), with respect to a number of shares of EchoStar Class A Common Stock equal to (i) the number of shares of DISH Network Common Stock subject to the corresponding DISH Network stock option immediately prior to the Effective Time, multiplied by (ii) the Exchange Ratio (with the resulting number rounded down to the nearest whole share), at an exercise price (rounded up to the nearest whole cent) equal to the exercise price of the corresponding DISH Network stock option immediately prior to the Effective Time divided by the Exchange Ratio. At the Effective Time, each DISH Network restricted stock unit award outstanding immediately prior to the Effective Time was converted automatically into an EchoStar restricted stock unit award on substantially the same terms and conditions, with respect to a number of shares of EchoStar Class A Common Stock equal to (i) the number of shares of DISH Network Common Stock subject to the corresponding DISH Network restricted stock unit award immediately prior to the Effective Time, multiplied by (ii) the Exchange Ratio (with the resulting number rounded to the nearest whole share). Stock Incentive Plans All information below includes the Merger conversion discussed above. EchoStar maintains stock incentive plans to attract and retain officers, directors and key employees. Our employees participate in the EchoStar stock incentive plans. Stock awards under these plans include both performance and non-performance based stock incentives. Many of our employees work on projects associated with our business and projects associated with EchoStar’s business and other operations of EchoStar. Stock options, restricted stock units and non-cash stock-based compensation expense are included below only for employees who devote or more of their time to our business. For each employee, a change in status in relation to the threshold is reflected as a transfer to or from another EchoStar subsidiary that is not part of DISH DBS. As of December 31, 2023, EchoStar had outstanding under these plans stock options to acquire thousand restricted stock units and awards associated with our employees. Stock options granted on or prior to December 31, 2023 were granted with exercise prices equal to or greater than the market value of EchoStar’s Class A common stock at the date of grant and with a maximum term of approximately . EchoStar accounts for forfeitures as they are incurred. While historically EchoStar has issued stock awards subject to vesting, typically at the rate of per year, certain stock awards have been granted with immediate vesting and certain other stock awards vest only upon the achievement of certain EchoStar-specific subscriber, operational and/or financial goals. As of December 31, 2023, EchoStar had Exchange offer . On June 24, 2022, DISH Network commenced a tender offer to eligible employees (which excludes DISH Network’s co-founders and the independent members of DISH Network’s Board of Directors, at that time) to exchange eligible stock options (which excludes DISH Network’s Ergen 2020 Performance Award) for new options “Exchange Offer”), to, among other things, further align employee incentives with the current market. The Exchange Offer expired on July 22, 2022. As a result of the Exchange Offer, the exercise price of approximately . Stock Award Activity EchoStar stock option activity associated with our employees was as follows: For the Year Ended December 31, 2023 Options Weighted- Average Exercise Price Aggregate intrinsic value Weighted Average Remaining Contractual Life Total options outstanding, beginning of period 3,877,308 $ 72.53 Granted 355,652 $ 34.42 Exercised — $ — Forfeited, cancelled and transferred (1)(2) (944,927) $ 81.57 Total options outstanding, end of period 3,288,033 $ 65.81 $ — 6.94 Performance-based options outstanding, end of period (3) 815,370 $ 96.55 Exercisable at end of period 1,326,093 $ 59.06 $ — 6.24 (1) Includes the cancellation of the 2013 LTIP. See discussion below . (2) Certain of these stock options include options that were granted to individuals who transferred to and/or from another EchoStar subsidiary not a part of DISH DBS. (3) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2017 LTIP, 2019 LTIP, 2022 Incentive Plan and Other Employee Performance Awards below. We realized tax benefits from stock awards exercised as follows: For the Years Ended December 31, 2023 2022 2021 (In thousands) Tax benefit from stock awards exercised $ 871 $ 206 $ 3,815 EchoStar restricted stock unit and award activity associated with our employees was as follows: For the Year Ended December 31, 2023 Restricted Stock Units/Awards Weighted- Average Grant Date Fair Value Total restricted stock units/awards outstanding, beginning of period 379,073 $ 100.69 Granted 5,534 $ 17.18 Vested (208,520) $ 92.71 Forfeited, cancelled and transferred (1) (172,109) $ 107.22 Total restricted stock units/awards outstanding, end of period 3,978 $ 120.95 (1) Certain of these restricted stock units/awards include restricted stock units/awards that were granted to individuals who transferred to and/or from another EchoStar subsidiary not a part of DISH DBS. The following table summarizes additional information about EchoStar stock options and restricted stock units and awards associated with our employees: For the Years Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) Stock options: Weighted-average grant date fair value of options granted $ 34.42 $ 66.92 $ 115.57 Intrinsic value of options exercised (1) $ — $ 61 $ 6,370 Restricted stock units and awards: Weighted-average grant date fair value of units and awards granted $ 17.18 $ 84.56 $ 120.84 Fair value of units and rewards vested (1) $ 4,030 $ 874 $ 262 (1) Intrinsic value and fair value is based on the closing market price of EchoStar’s Class A Common Stock on December 31, 2023. Long-Term Performance-Based Plans 2013 LTIP. During 2013, EchoStar adopted a long-term, performance-based stock incentive plan (the “2013 LTIP”). The 2013 LTIP provides stock options and restricted stock units in combination, which vest based on certain EchoStar-specific subscriber and financial performance conditions. Exercise of the stock awards is contingent on achieving these performance conditions by September 30, 2022. This plan expired on January 1, 2023 which resulted in the cancellation of 2017 LTIP. On December 2, 2016, EchoStar adopted a long-term, performance-based stock incentive plan (the “2017 LTIP”). The 2017 LTIP provided stock options, which were subject to vesting based on certain EchoStar-specific subscriber and financial performance conditions. Awards were initially granted under the 2017 LTIP as of January 1, 2017. Exercise of the stock awards was contingent on achieving these performance conditions by December 31, 2020, however, none of the performance conditions were achieved. This plan will expire on January 1, 2027 which as of December 31, 2023, would result in the cancellation of 2019 LTIP. performance conditions Although no awards vest until EchoStar attains the performance conditions described above, compensation related to the 2019 LTIP will be recorded based on EchoStar’s assessment of the probability of meeting the performance conditions. If the performance conditions are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the performance condition. During the years ended December 31, 2023, 2022 and 2021, EchoStar determined that 85%, 89% and 90% , respectively, of the 2019 LTIP performance conditions were probable of achievement. As a result, non-cash, stock-based compensation expense was recorded for the years ended December 31, 2023, 2022 and 2021, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2023, 2022 and 2021, approximately , respectively, of the 2019 LTIP awards had vested. No additional awards will vest in future periods for the 2019 LTIP. 2022 Incentive Plan. financial performance conditions. Awards were initially granted under the 2022 1, 2022. Exercise of the stock awards is contingent on achieving these conditions by December 31, 2026. Although no awards vest until EchoStar attains the performance conditions described above, compensation related to the 2022 Incentive Plan will be recorded based on EchoStar’s assessment of the probability of meeting the performance conditions. If the performance conditions are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the performance condition. During the year ended December 31, 2023, EchoStar determined that 100% of the 2022 Incentive Plan performance conditions were probable of achievement. As a result, non-cash, stock-based compensation expense was recorded for the year ended December 31, 2023 as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2023 and 2022, approximately Other Employee Performance Awards. In addition to the above long-term, performance stock incentive plans, EchoStar has other stock awards that vest based on certain other EchoStar-specific subscriber, operational and/or financial performance conditions. Exercise of these stock awards is contingent on achieving certain performance conditions. Additional compensation related to these awards will be recorded based on EchoStar’s assessment of the probability of meeting the remaining performance conditions. If the remaining performance conditions are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the performance condition. See the table below titled “Estimated Remaining Non-Cash, Stock-Based Compensation Expense.” Although no awards vest until the performance are attained, EchoStar determined that certain described above were probable of achievement and, as a result, we recorded non-cash, stock-based compensation expense for the years ended December 31, 2023, 2022 and 2021, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” The non-cash, stock-based compensation expense associated with these awards for our employees was as follows: For the Years Ended December 31, Non-Cash, Stock-Based Compensation Expense Recognized (1) 2023 2022 2021 (In thousands) 2022 Incentive Plan $ 5,573 $ 15,024 $ — 2019 LTIP (1,631) (131) 370 2013 LTIP — — (10,550) Other employee performance awards 281 3,711 7,827 Total non-cash, stock-based compensation expense recognized for performance-based awards $ 4,223 $ 18,604 $ (2,353) (1) “Non-Cash, Stock-Based Compensation Expense Recognized” includes actual forfeitures . Estimated Remaining Non-Cash, Stock-Based Compensation Expense 2022 Incentive Plan 2019 LTIP Other Employee Performance Awards (In thousands) Expense estimated to be recognized during 2024 $ 1,714 $ — $ — Estimated contingent expense subsequent to 2024 902 — — Total estimated remaining expense over the term of the plan $ 2,616 $ — $ — Given the competitive nature of EchoStar’s business, small variations in subscriber churn, gross new subscriber activation rates and certain other factors can significantly impact subscriber growth. Consequently, while it was determined that achievement of certain other EchoStar-specific subscriber, operational and/or financial performance conditions were not probable as of December 31, 2023, that assessment could change in the future. Of the 3.3 million stock options and 4 thousand restricted stock units and awards outstanding under the EchoStar stock incentive plans associated with our employees as of December 31, 2023, the following awards were outstanding pursuant to the performance-based stock incentive plans: As of December 31, 2023 Performance-Based Stock Options Number of Awards Weighted- Average Grant Price 2022 Incentive Plan 303,379 $ 51.17 2019 LTIP 193,452 $ 59.16 2017 LTIP 318,539 $ 162.47 Total 815,370 $ 96.55 Stock-Based Compensation Total non-cash, stock-based compensation expense for all of our employees is shown in the following table for the years ended December 31, 2023, 2022 and 2021 and was allocated to the same expense categories as the base compensation for such employees: For the Years Ended December 31, 2023 2022 2021 (In thousands) Cost of services $ 2,240 $ 5,817 $ 4,170 Selling, general and administrative 12,018 34,915 7,660 Total non-cash, stock based compensation $ 14,258 $ 40,732 $ 11,830 As of December 31, 2023, our total unrecognized compensation cost related to the non-performance based unvested stock awards was $24 million and will be recognized over a weighted-average period of approximately 8.6 years. Share-based compensation expense is recognized based on stock awards ultimately expected to vest. Valuation The fair value of each stock option granted for the years ended December 31, 2023, 2022 and 2021 was estimated at the date of the grant using a Black-Scholes option valuation model with the following assumptions: For the Years Ended December 31, Stock Options 2023 2022 2021 Risk-free interest rate 3.58 % - 4.61 % 1.35 % - 4.02 % 0.48 % - 1.11 % Volatility factor 34.30 % - 41.25 % 32.67 % - 34.84 % 29.91 % - 34.51 % Expected term of options in years 4.1 - 6.6 4.1 - 6.0 4.0 - 5.9 Fair value of options granted $ 7.40 - $ 7.77 $ 5.97 - $ 9.27 $ 6.20 - $ 8.32 While EchoStar currently does not intend to declare dividends on its Class A common stock, EchoStar may elect to do so from time to time. Accordingly, the dividend yield percentage used in the Black-Scholes option valuation model was set at zero for all periods. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded stock options which have no vesting restrictions and are fully transferable. Consequently, our estimate of fair value may differ from other valuation models. Further, the Black-Scholes option valuation model requires the input of highly subjective assumptions. Changes in these subjective input assumptions can materially affect the fair value estimate. We will continue to evaluate the assumptions used to derive the estimated fair value of EchoStar’s stock options as new events or changes in circumstances become known. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Commitments and Contingencies | 12. Commitments and Contingencies Commitments As of December 31, 2023, future maturities of our long-term debt, finance lease and contractual obligations are summarized as follows: Payments due by period Total 2024 2025 2026 2027 2028 Thereafter (In thousands) Long-term debt obligations $ 11,775,222 $ 1,992,872 $ 9,425 $ 4,757,972 $ 8,423 $ 3,501,538 $ 1,504,992 Interest expense on long-term debt 2,532,110 712,442 595,606 595,205 295,379 294,636 38,842 Finance lease obligations (1) 31,104 31,104 — — — — — Interest expense on finance lease obligations (1) 1,043 1,043 — — — — — Other long-term obligations (2) 3,415,290 2,026,120 739,613 524,473 125,084 — — Operating lease obligations (1) 117,514 41,709 26,417 15,898 8,337 7,361 17,792 Purchase obligations 1,365,889 1,335,189 26,036 4,664 — — — Total $ 19,238,172 $ 6,140,479 $ 1,397,097 $ 5,898,212 $ 437,223 $ 3,803,535 $ 1,561,626 (1) See Note 7 for further information on leases and the adoption of ASC 842. (2) Represents obligations for satellite related executory costs, telemetry, tracking and control (“TT&C”) services, short-term leases and certain expenses associated with DISH Network’s Wireless segment. In certain circumstances the dates on which we are obligated to make these payments could be delayed. The table above does not include $202 million of liabilities associated with unrecognized tax benefits that were accrued, as discussed in Note 9, and are included on our Consolidated Balance Sheets as of December 31, 2023. We do not expect any portion of this amount to be paid or settled within the next 12 months. The table above includes certain obligations incurred by us on behalf of DISH Network’s Wireless segment. These obligations will be either paid directly by DISH Network or settled monthly as part of our centralized cash management system with our parent, DISH Network. See Note 3 for further information. On March 20, 2023, DISH Network entered into a contract with Maxar Space LLC and is intended to be used at the 110 degree orbital location. This satellite is expected to be launched during 2026. During the fourth quarter of 2023, DISH Network entered into an agreement with SpaceX for launch services for this satellite, which is expected to be launched during 2026. The satellite construction and launch costs for EchoStar XXV and any future lease obligations are not included in “Other long-term obligations” above. DISH Network’s Spectrum and 5G Network Deployment DISH Network has directly invested approximately $30 billion to acquire certain wireless spectrum licenses. DISH Network’s wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. DISH Network plans to commercialize its wireless spectrum licenses through the completion of the nation’s first cloud-native, Open Radio Access Network (“O-RAN”) based 5G network (the “5G Network Deployment”). DISH Network currently expects capital expenditures , excluding capitalized interest, for its 5G Network Deployment to be approximately $10 billion, including amounts incurred in 2021, 2022 and 2023 . DISH Network may need to make significant additional investments or partner with others to, among other things, continue its 5G Network Deployment and further commercialize, build-out, and integrate these licenses and related assets, and any additional acquired licenses and related assets, as well as to comply with regulations applicable to such licenses. Depending on the nature and scope of such activities, any such investments or partnerships could vary significantly. In addition, as DISH Network completes its 5G Network Deployment , DISH Network has and will continue to incur significant additional expenses related to, among other things, research and development, wireless testing and ongoing upgrades to the wireless network infrastructure, software and third party integration. DISH Network may also determine that additional wireless spectrum licenses may be required to complete its 5G Network Deployment and to compete effectively with other wireless service providers. In connection with the development of DISH Network’s wireless business, including, without limitation, the efforts described above, we have made cash distributions and the Intercompany Loan to partially finance these efforts to date and may make additional cash distributions or loans to finance, in whole or in part, DISH Network or EchoStar’s future efforts, including, among other things, any potential Northstar re-auction payment and SNR re-auction payment. There can be no assurance that DISH Network will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably these wireless spectrum licenses. We will need to raise additional capital in the future, which may not be available on favorable terms, to among other things, continue investing in our business and to pursue acquisitions and other strategic transactions. See Note 15 “ Commitments and Contingencies – Wireless – 5G Network Deployment” in the Notes to EchoStar’s Annual Report on Form 10-K for the year ended December 31, 2023 Satellite Insurance We generally do not carry commercial launch or in-orbit insurance on any of the satellites we own. We generally do not use commercial insurance to mitigate the potential financial impact of launch or in-orbit failures because we believe that the cost of insurance premiums is uneconomical relative to the risk of such failures. While we generally have had in-orbit satellite capacity sufficient to transmit our existing channels and some backup capacity to recover the transmission of certain critical programming, our backup capacity is limited. In the event of a failure or loss of any of our owned or leased satellites, we may need to acquire or lease additional satellite capacity or relocate one of our other owned or leased satellites and use it as a replacement for the failed or lost satellite. Purchase Obligations Our 2024 purchase obligations primarily consist of binding purchase orders for certain fixed contractual commitments to purchase programming content, receiver systems and related equipment, broadband equipment, digital broadcast operations, transmission costs, streaming delivery technology and infrastructure, engineering services, and other products and services related to the operation of our Pay-TV services. In addition, our 2024 purchase obligations also include DISH Network’s purchase obligations for certain wireless devices related to its retail wireless business as well as transition services pursuant to the TSA with T-Mobile. Our purchase obligations may fluctuate significantly from period to period due to, among other things, management’s timing of payments and inventory purchases, which can materially impact our future operating asset and liability balances, and our future working capital requirements. The purchase obligations will be either paid directly by DISH Network or settled monthly as part of our centralized cash management system . Programming Contracts In the normal course of business, we enter into contracts to purchase programming content in which our payment obligations are generally contingent on the number of Pay-TV subscribers to whom we provide the respective content. These programming commitments are not included in the “Commitments” table above. The terms of our contracts typically range from one with annual rate increases. Our programming expenses will increase to the extent we are successful in growing our Pay-TV subscriber base. I Patents and Intellectual Property Many entities, including some of our competitors, have or may in the future obtain patents and other intellectual property rights that cover or affect products or services that we offer or that we may offer in the future. We may not be aware of all intellectual property rights that our products or services may potentially infringe. Damages in patent infringement cases can be substantial, and in certain circumstances can be trebled. Further, we cannot estimate the extent to which we may be required in the future to obtain licenses with respect to patents held by others and the availability and cost of any such licenses. Various parties have asserted patent and other intellectual property rights with respect to components of our products and services. We cannot be certain that these persons do not own the rights they claim, that our products do not infringe on these rights, and/or that these rights are not valid. Further, we cannot be certain that we would be able to obtain licenses from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our products to avoid infringement. Contingencies 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. ClearPlay, Inc. On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against EchoStar and DISH Network, our wholly-owned subsidiary DISH Network L.L.C., and EchoStar’s 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, and in May 2017, ClearPlay agreed to dismiss EchoStar and us as defendants, leaving DISH Network L.L.C. and DISH Technologies L.L.C. as the sole defendants. On October 16, October 21, November 2, 2020 and November 9, 2020, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office requesting ex parte reexamination of the validity of the asserted claims of, respectively, the 784 patent, the 799 patent, the 318 patent and the 970 patent; and on November 2, November 20, December 14 and December 15, 2020, the United States Patent and Trademark Office granted each request for reexamination. In October and November 2021, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office requesting ex parte reexamination of the validity of certain asserted claims of the 784 patent, the 799 patent and the 970 patent. In November and December, 2021, the United States Patent and Trademark Office granted review of the challenged claims of the 799 patent and the 970 patent, but denied review of the challenged claims of the 784 patent. On January 24, 2022, an examiner of the United States Patent and Trademark Office affirmed the challenged claims of the 799 patent, and on January 19, 2023, an examiner of the United States Patent and Trademark Office affirmed the challenged claims of the 970 patent. In an order dated January 31, 2023, the Court granted in part and denied in part DISH Network L.L.C.’s and DISH Technologies L.L.C.’s motion for summary judgment. Thereafter, ClearPlay narrowed its case to three asserted claims: one under the 799 patent and two under the 970 patent. Following a two-week trial, on March 10, 2023, the jury returned a verdict that DISH Network L.L.C. and DISH Technologies L.L.C. infringed each of the asserted patent claims (though not willfully), and awarded damages of $469 million. That verdict became moot on March 21, 2023, when the trial court indicated that it would grant DISH Network L.L.C.’s and DISH Technologies L.L.C.’s motion for judgment as a matter of law, thus effectively vacating the jury award. On June 2, 2023, the Court entered its formal order granting judgment as a matter of law. On December 12, 2023, the Court denied ClearPlay’s motion to alter or amend the judgment. ClearPlay has filed a notice of appeal to the United States Court of Appeals for the Federal Circuit. 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. Data Breach Class Actions On May 9, 2023, Susan Owen-Brooks, an alleged customer, filed a putative class action complaint against DISH Network in the United States District Court for the District of Colorado. She purports to represent a nationwide class of all individuals in the United States who allegedly had private information stolen as a result of the February 23, 2023 Cyber-security Incident (and a North Carolina statewide subclass of the same individuals). On behalf of the nationwide class, she alleges claims for contractual breaches, negligence and unjust enrichment (and, on behalf of the North Carolina subclass only, violation of the North Carolina Deceptive Trade Practices Act), and seeks monetary damages, injunctive relief and a declaratory judgment. Since that filing, ten additional putative class action complaints have been filed in the United States District Court for the District of Colorado, purporting to represent the same nationwide class of people, and Owen-Brooks has filed an amended complaint. On August 2, 2023, the Court issued an order consolidating the first ten cases (the eleventh was dismissed) and, on November 16, 2023, the plaintiffs filed a consolidated amended class action complaint. DISH Network intends to vigorously defend this case. DISH Network cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Digital Broadcasting Solutions, LLC On August 29, 2022, Digital Broadcasting Solutions, LLC filed a complaint against our wholly-owned subsidiaries DISH Network L.L.C. and DISH Technologies L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of U.S. Patent No. 8,929,710 (the “710 patent”) and U.S. Patent No. 9,538,122 (the “122 patent”), each entitled “System and method for time shifting at least a portion of a video program.” Generally, the plaintiff contends that the AutoHop feature of our Hopper set-top boxes infringes the asserted patents. In May 2023, DISH Network L.L.C. and DISH Technologies L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of all claims of the 710 patent and the 122 patent and, on December 11, 2023, the United States Patent and Trademark Office entered decisions instituting each petition. 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. Entropic Communications, LLC (first action) On March 9, 2022, Entropic Communications, LLC (“Entropic”) filed a complaint against DISH Network and our wholly-owned subsidiaries DISH Network L.L.C. and Dish Network Service L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of U.S. Patent No. 7,130,576 (the “576 patent”), entitled “Signal Selector and Combiner for Broadband Content Distribution”; U.S. Patent No. 7,542,715 (the “715 Patent”), entitled “Signal Selector and Combiner for Broadband Content Distribution”; and U.S. Patent No. 8,792,008 (the “008 Patent”), entitled “Method and Apparatus for Spectrum Monitoring.” On March 30, 2022, Entropic filed an amended complaint alleging infringement of the same patents. Generally, the plaintiff accuses satellite antennas, low-noise block converters, signal selector and combiners, and set-top boxes and the manner in which they process signals for satellite television customers of infringing the asserted patents. On October 24, 2022, this case was ordered to be transferred to the United States District Court for the Central District of California. In January and February of 2023, DISH Network L.L.C. and Dish Network Service L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of all claims of the 715 patent, all claims of the 008 patent and 25 claims of the 576 patent, which includes all of its asserted claims. 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. Entropic Communications, LLC (second action) On February 10, 2023, Entropic filed a second lawsuit against DISH Network and our wholly-owned subsidiaries DISH Network L.L.C., Dish Network Service L.L.C. and Dish Network California Service Corporation in the United States District Court for the Central District of California. The complaint alleges infringement of U.S. Patent No. 7,295,518 (the “518 patent”), entitled “Broadband network for coaxial cable using multi-carrier modulation”; U.S. Patent No. 7,594,249 (the “249 patent”), entitled “Network interface device and broadband local area network using coaxial cable”; U.S. Patent Nos. 7,889,759 (the “759 patent”), entitled “Broadband cable network utilizing common bit-loading”; U.S. Patent No. 8,085,802 (the “802 Patent”), entitled “Multimedia over coaxial cable access protocol”; U.S. Patent No. 9,838,213 (the “213 patent”), entitled “Parameterized quality of service architecture in a network”; U.S. Patent No. 10,432,422 (the “422 patent”), entitled “Parameterized quality of service architecture in a network”; U.S. Patent No. 8,631,450 (the “450 patent”), entitled “Broadband local area network”; U.S. Patent No. 8,621,539 (the “539 patent”), entitled “Physical layer transmitter for use in a broadband local area network”; U.S. Patent No. 8,320,566 (the “0,566 patent”), entitled “Method and apparatus for performing constellation scrambling in a multimedia home network”; U.S. Patent No. 10,257,566 (the “7,566 patent”), entitled “Broadband local area network”; U.S. Patent No. 8,228,910 (the “910 Patent”), entitled “Aggregating network packets for transmission to a destination mode”; and U.S. Patent No. 8,363,681 (the “681 patent”), entitled “Method and apparatus for using ranging measurements in a multimedia home network.” Generally, the patents relate to Multimedia over Coax Alliance standards and the manner in which we provide a whole-home DVR network over an on-premises coaxial cable network. Entropic has asserted the same patents in the same court against Comcast, Cox and DirecTV. On September 7, 2023, the Court granted the motion of DISH Network L.L.C., Dish Network Service L.L.C. and Dish Network California Service Corporation to dismiss the claims arising from the 7,566 patent and the 910 patent on the grounds that they claimed in eligible subject matter. In January and February 2024, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the 249 patent, the 518 patent, the 759 patent, the 450 patent, the 539 patent, the ’0,566 patent, and the ’681 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. Freedom Patents On April 7, 2023, Freedom Patents LLC filed a complaint against DISH Network and our wholly-owned subsidiaries DISH Network L.L.C. and Dish Network Service L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of U.S. Patent No. 8,284,686 (the “686 Patent”), entitled “Antenna/Beam Selection Training in MIMO Wireless LANS with Different Sounding Frames”; U.S. Patent No. 8,374,096 (the “096 Patent”), entitled “Method for Selecting Antennas and Beams in MIMO Wireless LANs”; and U.S. Patent No. 8,514,815 (the “815 Patent”), entitled “Training Signals for Selecting Antennas and Beams in MIMO Wireless LANs.” Similar complaints were also filed against Acer, Altice, Charter, Comcast and Verizon. In general, the asserted patents relate to the 802.11 wireless standard, and the products accused of infringement are the Wireless Joey, its access point, and certain Ring, Nest and Linksys products that we sell. 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. The plaintiff is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. Jones 401(k) Litigation On December 20, 2021, four former employees filed a class action complaint in the United States District Court for the District of Colorado against DISH Network, DISH Network’s Board of Directors at that time, and DISH Network’s Retirement Plan Committee at that time alleging fiduciary breaches arising from the management of our 401(k) Plan. The putative class, comprised of all participants in the Plan on or after January 20, 2016, alleges that the Plan had excessive recordkeeping and administrative expenses and that it maintained underperforming funds. On February 1, 2023, a Magistrate Judge issued a recommendation that the defendants’ motion to dismiss the complaint be granted , 10, 2023, which is limited to allegations regarding the alleged underperformance of the Fidelity Freedom Funds. On November 7, 2023, a Magistrate Judge issued a recommendation that the defendants’ motion to dismiss the amended complaint be denied as to the duty to prudently monitor fund performance, but be granted as to the duty of loyalty and, on November 27, 2023, the district court judge entered an order adopting the recommendation. DISH Network intends to vigorously defend this case. DISH Network cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Lingam Securities Class Action (formerly Jaramillo) On March 23, 2023, a securities fraud class action complaint was filed against DISH Network and Messrs. Ergen, Carlson and Orban in the United States District Court for the District of Colorado. The complaint is brought on behalf of a putative class of purchasers of DISH Network’s securities during the February 22, 2021 to February 27, 2023 class period. In general, the complaint alleges that DISH Network’s public statements during that period were false and misleading and contained material omissions, because they did not disclose that we allegedly maintained a deficient cyber-security and information technology infrastructure, were unable to properly secure customer data and our operations were susceptible to widespread service outages. In August 2023, the Court appointed a new lead plaintiff and lead plaintiff’s counsel, and, on October 20, 2023, they filed an amended complaint that abandoned the original allegations. In their amended complaint, plaintiffs allege that, during the class period, the defendants concealed problems concerning the 5G network buildout that prevented scaling and commercializing the network to obtain enterprise customers. The amended complaint adds as individual defendants James S. Allen, DISH Network’s Senior Vice President and Chief Accounting Officer; John Swieringa, DISH Network’s President, Technology and Chief Operating Officer; Dave Mayo, DISH Network’s former Executive Vice President of Network Development; Marc Rouanne, DISH Network’s Executive Vice President and Chief Network Officer; and Stephen Bye, DISH Network’s former Executive Vice President and Chief Commercial Officer. After the defendants filed a motion to dismiss, the plaintiffs filed a further amended complaint, asserting the same theory, on February 23, 2024. The new complaint drops Erik Carlson, John Swieringa, Paul Orban and James Allen as individual defendants. DISH Network intends to vigorously defend this case. DISH Network cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. 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.” 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 Group, Inc. (alleging infringement of the 897 patent, the 610 patent and the 535 patent) from the Original Texas Action into a separate action in the United States District Court for the Eastern District of Texas (the “Second Texas Action”). On August 31, 2017, Realtime dismissed the claims against DISH Network, Sling TV L.L.C., Sling Media Inc., and Sling Media L.L.C. from the Second Texas Action and refiled these claims (alleging infringement of the 897 patent, the 610 patent and the 535 patent) against Sling TV L.L.C., Sling Media Inc., and Sling Media L.L.C. in a new action in the United States District Court for the District of Colorado (the “Colorado Action”). Also on August 31, 2017, Realtime dismissed DISH Technologies L.L.C. from the Original Texas Action, and on September 12, 2017, added it as a defendant in an amended complaint in the Second Texas Action. On November 6, 2017, Realtime filed a joint motion to dismiss the Second Texas Action without prejudice, which the Court entered on November 8, 2017. On October 10, 2017, Realtime Adaptive Streaming LLC (“Realtime Adaptive Streaming”) filed suit against our wholly-owned subsidiaries DISH Network L.L.C. and DISH Technologies L.L.C., as well as Arris Group, Inc., in a new action in the United States District Court for the Eastern District of Texas (the “Third Texas Action”), alleging infringement of the 610 patent and the 535 patent. Also on October 10, 2017, an amended complaint was filed in the Colorado Action, substituting Realtime Adaptive Streaming as the plaintiff instead of Realtime, and alleging infringement of only the 610 patent and the 535 patent, but not the 897 patent. On November 6, 2017, Realtime Adaptive Streaming filed a joint motion to dismiss the Third Texas Action without prejudice, which the court entered on November 8, 2017. Also on November 6, 2017, Realtime Adaptive Streaming filed a second amended complaint in the Colorado Action, adding our wholly-owned subsidiaries DISH Network L.L.C. and DISH Technologies L.L.C., as well as Arris Group, Inc., as defendants. As a result, neither DISH Network nor any of its subsidiaries is a defendant in the Original Texas Action; the Court has dismissed without prejudice the Second Texas Action and the Third Texas Action; and our wholly-owned subsidiaries DISH Network L.L.C., DISH Technologies L.L.C., Sling TV L.L.C. and Sling Media L.L.C. as well as Arris Group, Inc., are defendants in the Colorado Action, which now has Realtime Adaptive Streaming as the named plaintiff. Following settlements with the plaintiff, EchoStar and HNS were dismissed from |
Financial Information for Subsi
Financial Information for Subsidiary Guarantors | 12 Months Ended |
Dec. 31, 2023 | |
Financial Information for Subsidiary Guarantors | |
Financial Information for Subsidiary Guarantors | 13. Financial Information for Subsidiary Guarantors Our registered senior notes are fully and unconditionally guaranteed, jointly and severally on a senior unsecured basis by certain of our wholly-owned subsidiaries (the “Guarantors”). Our 7 3/8% Senior Notes due 2028 and 5 1/8% Senior Notes due 2029 are guaranteed by our current principal operating subsidiaries. Our 5 7/8% Senior Notes due 2024 and 7 3/4% Senior Notes due 2026 are guaranteed by our current principal operating subsidiaries other than Sling TV Holding L.L.C. (“Sling TV Holding”). However, Sling TV Holding, including all of its assets and operations, is a wholly-owned subsidiary of DISH Network L.L.C., which is a Guarantor on all of our outstanding registered senior notes. Certain of our wholly-owned subsidiaries are designated as “Unrestricted Subsidiaries” and do not guarantee any of our registered senior notes. These Unrestricted Subsidiaries are non-operating entities that hold minimal or no assets. We and our subsidiaries participate with our parent company, DISH Network, in a centralized system for the management of our cash and marketable investment securities. Please see Note 3 for further information. The assets, liabilities and results of operations of the combined issuer and Guarantors (excluding Unrestricted Subsidiaries) of the guaranteed securities are not materially different than corresponding amounts presented in the consolidated financial statements of the parent company issuer. Therefore, summarized financial information of the issuer and the Guarantors is not required. The below descriptions apply to all of our existing registered senior notes. There are no material differences between our registered senior notes guaranteed by all of our current principal operating subsidiaries and our registered senior notes guaranteed by our current principal operating subsidiaries other than Sling TV Holding, a wholly-owned subsidiary of DISH Network L.L.C., which is a Guarantor on all of our outstanding registered senior notes. The guarantee of a Guarantor will be deemed automatically discharged and released in accordance with the terms of the applicable indenture: (i) in connection with any direct or indirect sale, conveyance or other disposition of all of the capital stock or all or substantially all of the assets of that Guarantor (including by way of merger or consolidation), if such sale or disposition is made in compliance with the applicable provisions of the indenture; (ii) if such Guarantor is dissolved or liquidated in accordance with the provisions of the indenture; (iii) if we designate any such Guarantor as an “Unrestricted Subsidiary” in compliance with the terms of the indenture; or (iv) with respect to a Guarantor which constitutes a Non-Core Asset (as such term is defined in the applicable indenture), upon the sale or other disposition of certain equity interests of such Guarantor, if such sale or disposition is made in compliance with the applicable provisions of the indenture. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the Guarantors, except those imposed by applicable law. The rights of holders of the registered senior notes against the Guarantors may be limited under the U.S. Bankruptcy Code or state fraudulent transfer or conveyance law. Under certain circumstances (including a finding that a Guarantor was insolvent at the time its guarantee of the registered senior notes was issued), a court could hold that the obligations of a Guarantor under a guarantee may be voided or are subordinate to other obligations of the Guarantor. Each guarantee contains a provision intended to limit the Guarantor’s liability to the maximum amount that it could incur without causing the incurrence of obligations under its guarantee to be a fraudulent conveyance or transfer under U.S. federal or state law. |
Disaggregation of Revenue
Disaggregation of Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Disaggregation of Revenue | |
Disaggregation of Revenue | 14. Disaggregation of Revenue Geographic Information. Revenue is attributed to geographic regions based upon the customer billing location. Long-lived assets are associated with the geographic regions based upon the location where the asset resides. All revenue was derived from North America, with all service revenue coming from the United States. The revenue from external customers disaggregated by major revenue source was as follows: For the Years Ended December 31, Category: 2023 2022 2021 (In thousands) Pay-TV subscriber and related revenue $ 11,320,526 $ 12,281,346 $ 12,661,766 Pay-TV equipment sales and other revenue 153,699 96,862 100,097 Total $ 11,474,225 $ 12,378,208 $ 12,761,863 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition | |
Revenue Recognition | 15. Revenue Recognition Contract Balances Our valuation and qualifying accounts as of December 31, 2023, 2022 and 2021 were as follows: For the Years Ended December 31, 2023 2022 2021 (In thousands) Balance at beginning of period $ 40,642 $ 32,861 $ 43,233 Current period provision for expected credit losses 56,047 75,245 48,150 Write-offs charged against allowance (61,805) (67,464) (58,522) Balance at end of period $ 34,884 $ 40,642 $ 32,861 Contract liabilities arise when we bill our customers and receive consideration in advance of providing the service. Contract liabilities are recognized as revenue when the service has been provided to the customer. Contract liabilities are recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Consolidated Balance Sheets. The following table summarizes our contract liability balances: As of December 31, 2023 2022 (In thousands) Contract liabilities $ 427,319 $ 481,220 Our beginning of period contract liability recorded as customer contract revenue during 2023 was $478 million. Performance Obligations We apply a practical expedient and do not disclose the value of the remaining performance obligations for contracts that are less than one year in duration, which represent a substantial majority of our revenue. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of our future revenue. Contract Acquisition Costs For the Years Ended December 31, 2023 2022 2021 (In thousands) Balance at beginning of period $ 230,146 $ 298,112 $ 338,893 Additions 71,931 86,740 116,922 Amortization expense (126,392) (154,706) (157,703) Balance at end of period $ 175,685 $ 230,146 $ 298,112 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Data (Unaudited) | |
Quarterly Financial Data (Unaudited) | 16. Quarterly Financial Data (Unaudited) Our quarterly results of operations are summarized as follows: For the Three Months Ended March 31 June 30 September 30 December 31 (In thousands) Year ended December 31, 2023: Total revenue $ 2,946,411 $ 2,951,159 $ 2,783,387 $ 2,793,268 Operating income (loss) 652,899 684,470 582,280 677,789 Net income (loss) 433,283 457,638 388,754 464,954 Year ended December 31, 2022: Total revenue $ 3,133,411 $ 3,121,014 $ 3,048,315 $ 3,075,468 Operating income (loss) 724,776 757,713 622,781 717,386 Net income (loss) 444,411 483,180 408,337 474,817 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions | |
Related Party Transactions | 17. Related Party Transactions Related Party Transactions with DISH Network “Notes Receivable – DISH Network” Concurrently with the issuance of the 5 1/4% 5 3/4% Senior Secured Notes due 2028 (our “Senior Secured Notes”) and using the proceeds thereof, we made the Intercompany Loan to DISH Network to be used by DISH Network to finance the purchase of certain wireless spectrum licenses and for general corporate purposes, including the buildout of wireless infrastructure. The Intercompany Loan is secured by: (i) the cash proceeds of the loan and (ii) an interest in the wireless spectrum licenses acquired using such proceeds. Such collateral may be replaced by other then-existing wireless spectrum licenses held directly or indirectly by DISH Network of equivalent value (based upon a third-party valuation). The Intercompany Loan will mature in (the “2028 Tranche”). The aggregate principal amount of the Intercompany Loan was initially billion to DISH Network under the 2026 Tranche. Interest accrues and is payable semiannually, and interest payments with respect to the Intercompany Loan are, at DISH Network’s option, payable in kind for the first . In the third year, beginning November 2023, a minimum of of each interest payment due with respect to each tranche of the Intercompany Loan must be paid in cash. Thereafter, beginning in November 2024, interest payments must be paid in cash. Interest accrues: (a) when paid in cash, at a fixed rate of 5 1/4% 5 3/4% per annum in excess of the Cash Accrual Rate for the applicable tranche. The Intercompany Loan is repayable by DISH Network in whole or in part, at any time or from time to time, at a price equal to of the principal amount thereof, plus accrued but unpaid interest thereon. The 5 1/4% 5 3/4% are subordinated to our existing and certain future unsecured notes with respect to certain realizations under the Intercompany Loan and any collateral pledged as security therefor. Any material amendments or modifications to the terms of the Intercompany Loan will require the written consent of the holders of a majority of the then-outstanding 5 1/4% 5 3/4% Senior Secured Notes due 2028. During the years ended December 31, 2023 and 2022, we recorded $441 million and $415 million, respectively, of “Interest income” on our Consolidated Statements of Operations and Comprehensive Income (Loss). As of December 31, 2023 and 2022, “Notes receivable – – “Cost of services” During the years ended December 31, 2023, 2022 and 2021, million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. DISH Network is a supplier of the vast majority of our transponder capacity. These amounts are recorded in “Cost of services” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Satellite Capacity Leased from DISH Network . We lease satellite capacity on satellites owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. See “Satellites” in Note 6 for further information. The term of each lease is set forth below: ● EchoStar X, XI, XIV and XVI. We lease all available capacity on the EchoStar X, XI, XIV and XVI satellites from a wholly-owned subsidiary of DISH Network. 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. ● EchoStar XXIII. On March 1, 2023, we began leasing certain capacity on the EchoStar XXIII satellite from a wholly-owned subsidiary of DISH Network on a month to month basis. ● Nimiq 5. DISH Network has a 15-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 with the option to renew on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. We are receiving transponder service on all 32 of the DBS transponders on this satellite from DISH Network and have exercised our option to renew for a one-year period through September 2024. As discussed in Note 6, “Property and Equipment and Intangible Assets,” the Nimiq 5 satellite lease is accounted for as a finance lease. Expenses related to this lease are recorded in “Depreciation and amortization” and “Interest expense, net of amounts capitalized” on our Consolidated Statements of Operations and Comprehensive Income (Loss). During each of the years ended December 31, 2023, 2022 and 2021, we recorded $34 million of “Depreciation and amortization” expense related to Nimiq 5 and $5 million, $8 million and $12 million of “Interest expense, net of amounts capitalized,” respectively. ● QuetzSat-1. Our arrangement with DISH Network to receive service on 24 DBS transponders on the QuetzSat-1 satellite at the 77 degree orbital location expired in November 2021. 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 DISH Network are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. “Selling, general and administrative expenses” During the years ended December 31, 2023, 2022 and 2021, we incurred $9 million, $ million and $ million, respectively, for services provided to us by DISH Network. These amounts are recorded in “Selling, general and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. We lease 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. Our lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado from a wholly-owned subsidiary of DISH Network expired on December 31, 2021. ● Cheyenne Lease Agreement. Our lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming from a wholly-owned subsidiary of DISH Network is for a period ending on December 31, 2031. 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 years ended December 31, 2023, 2022 and 2021, the costs associated with these services were Sale of Assets to DISH Network. million. This was accounted for as a transaction among entities under common control. The difference between our net carrying value of the assets sold to their fair value of Related Party Transactions with NagraStar L.L.C. We own a 50% interest in NagraStar, a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Certain payments related to NagraStar are recorded in “Cost of services” on our Consolidated Statements of Operations and Comprehensive Income (Loss). In addition, certain other payments are initially included in “Inventory” and are subsequently capitalized as “Property and equipment, net” on our Consolidated Balance Sheets or expensed as “Selling, general and administrative expenses” or “Cost of services” on our Consolidated Statements of Operations and Comprehensive Income (Loss) when the equipment is deployed. We record all payables in “Trade accounts payable” or “Other accrued expenses” on our Consolidated Balance Sheets. Our investment in NagraStar is accounted for using the equity method. The table below summarizes our transactions with NagraStar. For the Years Ended December 31, 2023 2022 2021 (In thousands) Purchases (including fees): Purchases from NagraStar $ 37,068 $ 43,416 $ 45,944 As of December 31, 2023 2022 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 9,821 $ 7,422 Commitments to NagraStar $ 1,727 $ 3,272 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events | |
Subsequent Events | 18. Subsequent Events Asset Transfers On January 10, 2024, our parent, DISH Network, transferred certain of its wireless spectrum licenses, including AWS-4, H-Block, CBRS, C-Band - , 12GHz, LMDS, 24 GHz, 28 GHz, 37GHz, 39GHz and 47GHz to , our ultimate parent, EchoStar’s direct wholly-owned subsidiary (the “Spectrum Transfer”). DISH Network retained ownership of certain other wireless spectrum licenses, including 600 MHz, 700 MHz, 3.45 GHz and AWS-3, of which 700 MHz and AWS-3 remain unencumbered, and . Prior to the Spectrum Transfer, we designated a newly formed subsidiary of (the “DBS Subscriber Subsidiary”) as an unrestricted subsidiary. DBS Subscriber Subsidiary holds approximately 3.0 million DISH TV subscribers immediately following the unrestricting of the entity. In addition, we, in our capacity as “Lender” under the terms of the Loan and Security Agreement related to the Intercompany Loan between DISH Network and us, have consummated the assignment pursuant to such terms, without any modification or amendment thereto, of our receivable in respect to the of $4.7 billion to DBS Intercompany Receivable L.L.C. has subsequently assigned its rights as lender thereunder to , our ultimate parent, EchoStar’s direct wholly-owned subsidiary, such that amounts owed in respect of the will now be paid by DISH Network to DISH DBS Exchange Offers On January 16, 2024, EchoStar announced its wholly-owned subsidiary DISH DBS Issuer LLC (“DBS Issuer”) commenced offers (“the DISH DBS Exchange Offers”) to eligible holders to exchange the 5 7/8% 7 3/4% 7 3/8% 5 1/8% EchoStar Exchange Offer On March 4, 2024, EchoStar commenced a tender offer to eligible employees to exchange eligible stock options for new options as detailed in its Schedule TO filed March 4, 2024 with the Securities and Exchange Commission (the “Exchange Offer”), to, among other things, further align employee incentives with the current market. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include all balances and results of operations of DISH DBS and our consolidated subsidiaries and are prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities (“VIEs”) 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, which will be initially recorded at cost, and based on observable market prices, will be adjusted to their fair value. We record fair value adjustments in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are based on historical experience, observable market inputs, and other reasonable assumptions in accounting for, among other things, allowances for credit losses, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under EchoStar’s stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, relative standalone selling prices of performance obligations , finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, incremental borrowing rate (“IBR”) on lease right of use assets, nonrefundable upfront fees, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents as of December 31, 2023 and 2022 may consist of money market funds, government bonds, corporate notes and commercial paper. The amortized cost of these investments approximates their fair value. |
Marketable Investment Securities | Marketable Investment Securities All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “ Stockholder’s Equity (Deficit) ,” net of related deferred income tax on our Consolidated Balance Sheets. The changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Interest income from available for sale debt securities is reported in “Interest income, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). We evaluate our debt investment portfolio to determine whether declines in the fair value of these securities are related to credit loss. Management estimates credit losses on marketable debt securities utilizing a credit loss impairment model on a quarterly basis. We estimate the expected credit losses, measured over the contractual life of marketable debt securities considering relevant issuer specific factors, including, but not limited to, a decrease in credit ratings or an entity’s ability to pay. |
Receivables and Related Allowance for Credit Losses | Receivables and Related Allowance for Credit Losses General Accounts Receivable Trade accounts receivable represent our unconditional rights to consideration arising from our performance under our customer contracts and are recorded at cost less an allowance for expected credit losses that are not expected to be recovered. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for expected credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Management estimates credit losses on financial assets, including our trade accounts receivable, utilizing a current expected credit loss impairment model. We estimate the expected credit losses, measured over the contractual life of an asset considering relevant historical loss information, credit quality of the customer base, current economic conditions and forecasts of future economic conditions. In determining the allowance for credit losses, management groups similar types of financial assets with consistent risk characteristics. Pools identified by management include, but are not limited to residential customers, commercial customers and advertising services. The risk characteristics of the financial asset portfolios are monitored by management and reviewed periodically. The forecasts for future economic conditions are based on several factors including, but not limited to, changes in the unemployment rate, external economic forecasts and current collection rates. Our estimates of the allowance for credit losses may not be indicative of our actual credit losses requiring additional charges to be incurred to reflect the actual amount collected. Past due trade accounts receivable balances are writ |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The cost of manufactured inventory includes the cost of materials, labor, freight-in, royalties and manufacturing overhead. Net realizable value is calculated as the estimated selling price less reasonable costs necessary to complete, sell, transport and dispose of the inventory. We record write downs for inventory for obsolete and slow moving items based on trends and experience. We enter into arrangements with distributors where physical delivery of a product to a distributor has occurred, but we maintain control of the product until such time it is sold to an end consumer. For these arrangements, we account for the products as consigned inventory. |
Property and Equipment | Property and Equipment Property and equipment, including capitalized expenditures related to our satellites, are stated at cost less depreciation and impairment losses, if any. Capitalized expenditures include the cost of long-lived assets, plus the cost to construct the asset such as labor and overhead directly benefiting the asset. Interest is capitalized when pre-construction activity commences and ends once the asset is ready for its intended purpose. Our equipment leased to customers is generally capitalized when they are installed in customers’ homes. We have certain assets acquired under finance leases. The recorded costs of those assets are the present values of all lease payments. We amortize our finance lease right of use (“ROU”) assets over their respective lease terms. If a satellite were to fail while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from two . Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized. Internal Use Software We capitalize certain costs related to developing or acquiring internal use software. Capitalization of software costs begins once the preliminary project stage is completed and we commit to funding the software project. Capitalizing ceases when the software project is ready for its intended use. Capitalized software costs are recorded in “Property and equipment, net” on our |
Other Investments | Other Investments Equity Method Investments We use the equity method to account for investments when we have the ability to exercise significant influence on the operating decisions of the affiliate. Such investments are initially recorded at cost and subsequently adjusted for our proportionate share of the net earnings or loss of the investee, which is reported in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The carrying amount of such investments includes a component of goodwill when the cost of our investment exceeds the fair value of the underlying identifiable assets and liabilities of the affiliate. Dividends received from these affiliates reduces the carrying amount of our investment. Cost Method Investments We generally measure investments in non-publicly traded equity instruments without a readily determinable fair value at cost adjusted for observable price changes in orderly transactions for the identical or similar securities of the same issuer and changes resulting from impairments, if any. Other equity instruments are measured to determine their value based on observable market information. When we adjust the carrying amount of an investment to its estimated fair value, the gain or loss is recorded in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Impairment Considerations We periodically evaluate all of our other investments to determine whether events or changes in circumstances have occurred that may have a significant adverse effect on the fair value of the investment. We consider information if provided to us by our investees such as current financial statements, business plans, investment documentation, capitalization tables, liquidation waterfalls, and board materials; and we may make additional inquiries of investee management. Indicators of impairment may include, but are not limited to, unprofitable operations, material loss contingencies, changes in business strategy, changes in market trends or market conditions, changes in the investees’ enterprise value and changes in the investees’ investment pricing. When we determine that one of our other investments is impaired we reduce its carrying value to its estimated fair value and recognize the impairment loss in “Other, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss). |
Impairment of Long-Lived Assets and Finite-Lived Intangible Assets | Impairment of Long-Lived Assets and Finite-Lived Intangible Assets We review our long-lived assets and identifiable finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Intangible assets that have finite lives are amortized over their estimated useful lives. For assets which are held and used in operations, the asset would be impaired if the carrying amount of the asset (or asset group) exceeded its undiscounted future net cash flows. When an impairment is determined, the actual impairment recognized is the difference between the carrying amount and the fair value as estimated using one of the following approaches: income, cost and/or market. In the event of an impairment, a loss is recorded in “Impairment of long-lived assets and goodwill” on our Consolidated Statements of Operations and Comprehensive Income (Loss) based on the amount by which the carrying amount exceeds the fair value of the long-lived asset or asset group. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Fair value, using the income approach, is determined primarily using a discounted cash flow model that uses the estimated cash flows associated with the asset or asset group under review, discounted at a rate commensurate with the risk involved. Fair value, utilizing the cost approach, is determined based on the replacement cost of the asset reduced for, among other things, depreciation and obsolescence. Fair value, utilizing the market approach, benchmarks the fair value against the carrying amount. DBS Satellites We currently evaluate our DBS satellite fleet for impairment as one asset group whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2023 and 2022. Finite-Lived Intangible Assets Intangible assets include customer relationships, trademarks, and certain below market contracts. These assets are amortized over their respective useful lives. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2023 and 2022. |
Indefinite-Lived Intangible Assets and Goodwill | Indefinite-Lived Intangible Assets and Goodwill We do not amortize indefinite-lived intangible assets and goodwill but test these assets for impairment annually during the fourth quarter or more often if indicators of impairment arise. We have the option to first perform a qualitative assessment to determine whether it is necessary to perform a quantitative impairment test. However, we may elect to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our FCC licenses have indefinite useful lives due to the following: ● FCC licenses are a non-depleting asset; ● existing FCC licenses are integral to our business segments and will contribute to cash flows indefinitely; ● replacement DBS satellite applications are generally authorized by the FCC subject to certain conditions, without substantial cost under a stable regulatory, legislative and legal environment; ● maintenance expenditures to obtain future cash flows are not significant; ● FCC licenses are not technologically dependent; and ● we intend to use these assets indefinitely. DBS Licenses We combine all of our indefinite-lived DBS licenses that we currently utilize or plan to utilize in the future into a single unit of accounting. For 2023, 2022 and 2021, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS licenses exceeds the carrying amount. In our assessment, we considered several factors, including, among others, overall financial performance, industry and market considerations, and relevant company specific events. In contemplating all factors in their totality, we concluded that it is more likely than not that the fair value of the DBS licenses exceeds its carrying amount. As such, no further analysis was required. Goodwill Goodwill represents the excess of the consideration transferred over the estimated fair values of assets acquired and liabilities assumed as of the acquisition date. We perform our annual impairment assessment for goodwill and other indefinite-lived intangible assets each year during the fourth quarter or more frequently if events or changes in circumstances indicate an impairment may be possible. W e may consider qualitative factors to assess if it is more likely than not that the fair value for goodwill is below the carrying amount. If we determine in the qualitative assessment that it is more likely than not that the fair value is less than its carrying value, We may also elect to bypass the qualitative assessment and perform a quantitative assessment. Our assessment process included, among other things, discounted cash flow analyses, consideration of fair values of tangible and indefinite-lived intangible assets held by the reporting units and our ultimate parent, EchoStar’s recent market capitalization. Our assessment indicated the goodwill attributed to certain acquisitions was no longer supported based on the sustained decrease in our ultimate parent, EchoStar’s market capitalization. As such, we recorded a total noncash impairment charge of approximately $6 million in “Impairment of long-lived assets and goodwill” on our Consolidated Statements of Operations and Comprehensive Income (Loss). No impairments were indicated for any reporting unit for the years ended December 31, 2022 and 2021. |
Business Combinations | Business Combinations When we acquire a business that is not subject to rules pertaining to common control, we allocate the purchase price to the various components of the acquisition based upon the fair value of each component using various valuation techniques, including the market approach, income approach and/or cost approach. The accounting standard for business combinations requires identifiable assets, liabilities, noncontrolling interests and goodwill acquired to be recorded at acquisition-date fair values. Transaction costs related to the acquisition of the business are expensed as incurred. Costs associated with the issuance of debt associated with a business combination are capitalized and included as a yield adjustment to the underlying debt’s stated rate. Acquired intangible assets other than goodwill are amortized over their estimated useful lives unless the lives are determined to be indefinite. Amortization of these intangible assets in general are recognized on a straight-line basis over an average finite useful life primarily ranging from approximately 13 |
Long-Term Deferred Revenue and Other Long-Term Liabilities | Long-Term Deferred Revenue and Other Long-Term Liabilities Certain programmers provide us up-front payments. Such amounts are deferred and recognized as reductions to “Cost of services” on a straight-line basis over the relevant remaining contract term (generally up to ). The current and long-term portions of these deferred credits are recorded on our Consolidated Balance Sheets in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities,” respectively. |
Sales Taxes | Sales Taxes We account for sales taxes imposed on our goods and services on a net basis on our Consolidated Statements of Operations and Comprehensive Income (Loss). Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. |
Income Taxes | Income Taxes We establish a provision for income taxes currently payable or receivable and for income tax amounts deferred to future periods. Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that exist between the book and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that such net deferred tax assets will not be realized. From time to time, we engage in transactions where the tax consequences may be subject to uncertainty. We record a liability when, in management’s judgment, a tax filing position does not meet the more likely than not threshold. For tax positions that meet the more likely than not threshold, we may record a liability depending on management’s assessment of how the tax position will ultimately be settled. We adjust our estimates periodically for ongoing examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and precedent. We classify interest and penalties, if any, associated with our uncertain tax positions as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss). |
Fair Value Measurements | Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: ● Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ● Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of December 31, 2023 and 2022, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. Fair values of our marketable investment securities are measured on a recurring basis based on a variety of observable market inputs. For our investments in publicly traded equity securities and U.S. government securities, fair value ordinarily is determined based on Level 1 measurements that reflect quoted prices for identical securities in active markets. Fair values of our investments in other marketable debt securities are generally based on Level 2 measurements as the markets for such debt securities are less active. We consider trades of identical debt securities on or near the measurement date as a strong indication of fair value and matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features may also be used to determine fair value of our investments in marketable debt securities. Additionally, we use fair value measurements from time to time in connection with other investments, asset impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies. Those fair value measurements typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were 31, 2023 and 2022. See Note 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. |
Deferred Debt Issuance Costs and Debt Discounts | Deferred Debt Issuance Costs and Debt Discounts Costs of issuing debt, including premiums and discounts relative to par value, are generally deferred and amortized to “Interest expense, net of amounts capitalized” on our Consolidated Statements of Operations and Comprehensive Income (Loss) using the effective interest rate method over the terms of the respective notes. We report unamortized debt issuance costs as a reduction of the related long-term debt on our Consolidated Balance Sheets. See Note 8 for further information. |
Revenue Recognition | Revenue Recognition Our revenue is primarily derived from Pay-TV subscriber revenue. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 14 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than . 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. A contract asset is recorded when revenue is recognized in advance of our right to receive consideration (i.e., we must perform additional services in order to receive consideration). Amounts are recorded as trade accounts receivable when our right to consideration is unconditional. When consideration is received, or we have an unconditional right to consideration in advance of delivery of goods or services, a contract liability is recorded. The transaction price can include nonrefundable upfront fees, which are allocated to the identifiable performance obligations. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. Contract assets are included in “Trade accounts receivable, net” and contract liabilities are included in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Consolidated Balance Sheets. Contract balances are amortized over the contract term. See Note 15 for further information, including balance and activity detail about our allowance for credit losses and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated customer life or the contract term. These amounts are capitalized in “Prepaids and other assets” and “Other noncurrent assets, net” on our Consolidated Balance Sheets, and then amortized in “Selling, general and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). |
Leases | Leases Lessee Accounting We enter into non-cancelable operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles and other equipment. Substantially all of our leases have remaining lease terms from one within . For certain arrangements, the lease term includes the non-cancelable period plus the renewal period that we are reasonably certain to exercise. We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses and liabilities” and “Operating lease liabilities” on our Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 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. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. When our leases do not provide an implicit rate, we use our IBR based on the information available at commencement date in determining the present value of lease payments. Our IBR is based on an estimated secured rate for the same term as the underlying lease plus a credit spread as secured by our assets. For leases denominated in a currency different than U.S. dollar, IBR is estimated using the collateralized borrowing rate in the foreign currency using the U.S. dollar and foreign currency swap spread, when available. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lessor Accounting DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers, we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The non-lease service revenue related to equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. |
Cost of Services | Cost of Services “Cost of services” on our Consolidated Statements of Operations and Comprehensive Income (Loss) principally includes programming expenses and other operating costs related to our Pay-TV services. The cost of television programming distribution rights is generally incurred on a per subscriber basis and various upfront carriage payments are recognized when the related programming is distributed to subscribers. Long-term flat rate programming contracts are generally charged to expense using the straight-line method over the term of the agreement. The cost of television programming rights to distribute live sporting events for a season or tournament is charged to expense using the straight-line method over the course of the season or tournament. |
Cost of Sales - Equipment and Other | Cost of Sales – Equipment and Other “Cost of sales – equipment and other” on our Consolidated Statements of Operations and Comprehensive Income (Loss) principally includes costs related to the non-subsidized sales of Pay-TV equipment. Costs are generally recognized as products are delivered to customers and the related revenue is recognized. |
Advertising Costs | Advertising Costs We recognize advertising expense when incurred as a component of “Selling, general and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Advertising expenses totaled |
Research and Development | Research and Development Research and development costs, not incurred in connection with customer requirements, are expensed as incurred and are included as a component of “Selling, general and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Research and development costs totaled |
New Accounting Pronouncements | New Accounting Pronouncements Joint Ventures. Business Combinations — Joint Venture Formations (Subtopic 805-60) Segment Reporting. Segment Reporting (Topic 280): Improvements to Reporting Segment Disclosures Income Taxes Income Taxes (Topic 740) Improvements to Income Tax Disclosures (“ASU 2023-09”), which will enhance income tax disclosures. ASU 2023-09 requires among other items disaggregated information in a reporting entity’s rate reconciliation table, clarification on uncertain tax positions and the related financial statement impact as well as information on income taxes paid on a disaggregated basis. This standard will be effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We are evaluating the impact the adoption of ASU 2023-09 will have on our Consolidated Financial Statements and related disclosures. |
Supplemental Data - Statement_2
Supplemental Data - Statements of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Data - Statements of Cash Flows | |
Schedule of supplemental cash flow and other non-cash data | For the Years Ended December 31, 2023 2022 2021 (In thousands) Cash paid for interest $ 747,332 $ 899,382 $ 636,934 Cash received for interest 19,972 20,967 4,263 Cash received for interest - Intercompany Loan 104,940 — — Cash paid for income taxes, net of (refunds) 12,951 29,000 31,025 Cash paid for income taxes to DISH Network 622,512 489,819 562,268 Vendor financing 26,751 — 164 |
Marketable Investment Securit_2
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |
Schedule of marketable investment securities, restricted cash and cash equivalents, and other investment securities | As of December 31, 2023 2022 (In thousands) Marketable investment securities: Current marketable investment securities $ 397 $ 282,733 Restricted cash and cash equivalents (1) 54,980 53,525 Other investment securities, net: Equity method investments 90,168 93,806 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 145,545 $ 430,064 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Consolidated Balance Sheets. |
Schedule of investments measured at fair value on a recurring basis | Our investments measured at fair value on a recurring basis were as follows: As of December 31, 2023 2022 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 411,571 $ 358,545 $ 53,026 $ — $ 650,523 $ 99,437 $ 551,086 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ — $ — $ — $ — $ 7,727 $ 7,727 $ — $ — Commercial paper — — — — 227,787 — 227,787 — Corporate securities — — — — 46,764 — 46,764 — Other 397 — 397 — 455 — 455 — Total $ 397 $ — $ 397 $ — $ 282,733 $ 7,727 $ 275,006 $ — |
Schedule of Gains and Losses on Sales and Changes in Carrying Amounts of Investments and Other | For the Years Ended December 31, Other, net: 2023 2022 2021 (In thousands) Gains (losses) related to early redemption of debt $ 1,262 $ (922) $ (3,587) Equity in earnings (losses) of affiliates (1,202) 4,112 2,520 Other 458 1,276 247 Total $ 518 $ 4,466 $ (820) |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory | |
Schedule of inventory | As of December 31, 2023 2022 (In thousands) Finished goods $ 208,049 $ 252,939 Work-in-process and service repairs 35,457 19,351 Raw materials 24,335 35,121 Total inventory $ 267,841 $ 307,411 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property and Equipment and Intangible Assets | |
Schedule of property and equipment | Depreciable Life As of December 31, (In Years) 2023 2022 (In thousands) Equipment leased to customers 2-5 $ 1,175,734 $ 1,309,737 EchoStar XV 15 277,658 277,658 EchoStar XVIII 15 411,255 411,255 Satellites acquired under finance lease agreements 5 174,685 174,685 Furniture, fixtures, equipment and other 2-10 755,163 753,138 Software and computer equipment 3-5 1,197,632 1,161,392 Buildings and improvements 5-40 294,890 295,375 Land - 12,505 12,505 Construction in progress - 45,413 35,326 Total property and equipment 4,344,935 4,431,071 Accumulated depreciation (3,536,870) (3,440,185) Property and equipment, net $ 808,065 $ 990,886 |
Schedule of pay-TV satellite fleet | As of December 31, 2023, 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 Under Construction: EchoStar XXV 2026 110 N/A Leased from DISH Network (1): EchoStar X February 2006 110 February 2025 EchoStar XI July 2008 110 February 2025 EchoStar XIV March 2010 119 February 2025 EchoStar XVI November 2012 61.5 January 2025 EchoStar XXIII March 2017 110 Month to Month Nimiq 5 September 2009 72.7 September 2024 Leased from Other Third-Party: Anik F3 April 2007 118.7 April 2025 (1) See Note 17 for further information on our Related Party Transactions with DISH Network. |
Schedule of identifiable intangibles subject to amortization | As of December 31, 2023 2022 Intangible Accumulated Intangible Accumulated Assets Amortization Assets Amortization (In thousands) Technology-based $ 58,162 $ (55,623) $ 58,162 $ (55,079) Trademarks 18,251 (17,160) 18,251 (17,050) Contract-based 4,500 (4,500) 4,500 (4,500) Customer relationships 23,632 (23,632) 23,632 (23,632) Total $ 104,545 $ (100,915) $ 104,545 $ (100,261) |
Schedule of estimated future amortization of identifiable intangible assets | For the Years Ended December 31, 2024 $ 654 2025 654 2026 654 2027 654 2028 473 Thereafter 541 Total $ 3,630 |
Schedule of FCC Authorizations | As of December 31, 2023 2022 (In thousands) DBS Licenses $ 611,794 $ 611,794 Total $ 611,794 $ 611,794 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Summary of the components of lease expense | For the Years Ended December 31, 2023 2022 2021 (In thousands) Operating lease cost (1) $ 70,262 $ 166,599 $ 217,635 Short-term lease cost (1)(2) 169,159 74,514 33,456 Finance lease cost: Amortization of right-of-use assets (3) 34,448 38,322 49,496 Interest on lease liabilities (3) 4,845 8,566 13,122 Total finance lease cost (3) 39,293 46,888 62,618 Total lease costs $ 278,714 $ 288,001 $ 313,709 (1) The decrease in “Operating lease cost” is primarily related to our intercompany satellite leases with DISH Network, which were reclassified to “Short-term lease costs” during 2022 and the first quarter of 2023. All of our satellite operating leases with DISH Network are now short-term leases. In addition, the decrease in “Operating lease cost” from 2021 to 2022 was primarily related to the QuetzSat-1 lease, which expired in November 2021. (2) Leases that have terms of 12 months or less. (3) The decrease in finance lease cost is primarily related to the Anik F3 finance lease that was extended in April 2022 and as a result is currently accounted for as an operating lease. |
Summary of Supplemental cash flow information related to leases | For the Years Ended December 31, 2023 2022 2021 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 96,195 $ 138,318 $ 213,135 Operating cash flows from finance leases $ 6,633 $ 6,733 $ 13,002 Financing cash flows from finance leases $ 47,030 $ 31,030 $ 51,608 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 30,657 $ 74,317 $ 22,780 Finance leases $ — $ — $ — |
Summary of supplemental balance sheet information related to leases | As of December 31, 2023 2022 (In thousands) Operating Leases: Operating lease assets $ 92,972 $ 130,454 Other current liabilities $ 36,618 $ 60,203 Operating lease liabilities 61,381 75,142 Total operating lease liabilities $ 97,999 $ 135,345 Finance Leases: Property and equipment, gross $ 175,704 $ 175,704 Accumulated depreciation (149,917) (115,469) Property and equipment, net $ 25,787 $ 60,235 Other current liabilities $ 31,104 $ 38,102 Other long-term liabilities — 31,104 Total finance lease liabilities $ 31,104 $ 69,206 Weighted Average Remaining Lease Term: Operating leases 4.1 years 3.7 years Finance leases 0.8 years 1.8 years Weighted Average Discount Rate: Operating leases 8.3% 7.2% Finance leases 10.0% 10.0% |
Summary of maturities of finance lease liabilities | Maturities of lease liabilities as of December 31, 2023 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2024 $ 41,709 $ 32,147 $ 73,856 2025 26,417 — 26,417 2026 15,898 — 15,898 2027 8,337 — 8,337 2028 7,361 — 7,361 Thereafter 17,792 — 17,792 Total lease payments 117,514 32,147 149,661 Less: Imputed interest (19,515) (1,043) (20,558) Total 97,999 31,104 129,103 Less: Current portion (36,618) (31,104) (67,722) Long-term portion of lease obligations $ 61,381 $ — $ 61,381 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Long-Term Debt and Finance Lease Obligations | |
Schedule of carrying and fair values of the entity's debt facilities | As of December 31, 2023 2022 Issuer Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 5% Senior Notes due 2023 (1) DDBS $ — $ — $ 1,443,179 $ 1,441,635 5 7/8% Senior Notes due 2024 (2) DDBS 1,982,544 1,872,275 2,000,000 1,870,940 7 3/4% Senior Notes due 2026 DDBS 2,000,000 1,388,060 2,000,000 1,620,280 5 1/4% Senior Secured Notes due 2026 DDBS 2,750,000 2,366,073 2,750,000 2,336,813 7 3/8% Senior Notes due 2028 DDBS 1,000,000 600,160 1,000,000 708,320 5 3/4% Senior Secured Notes due 2028 DDBS 2,500,000 2,013,125 2,500,000 2,013,675 5 1/8% Senior Notes due 2029 DDBS 1,500,000 774,600 1,500,000 976,755 Other notes payable 42,678 42,678 18,329 18,329 Subtotal 11,775,222 $ 9,056,971 13,211,508 $ 10,986,747 Unamortized deferred financing costs and debt discounts, net (26,812) (35,206) Finance lease obligations (3) 31,104 69,206 Total long-term debt and finance lease obligations (including current portion) $ 11,779,514 $ 13,245,508 (1) We had repurchased or redeemed the principal balance of our 5% Senior Notes due 2023 as of March 15, 2023, the instrument’s maturity date. (2) During the year ended December 31, 2023, we repurchased approximately $17 million of our 5 7/8% Senior Notes due 2024 in open market trades. The remaining balance of approximately $1.983 billion matures on November 15, 2024 and is included in “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2023. (3) Disclosure regarding fair value of finance leases is not required. |
Schedule of interest on long-term debt | Annual Semi-Annual Debt Service Payment Dates Requirements (In thousands) 5 7/8% May 15 and November 15 $ 117,500 7 3/4% January 1 and July 1 $ 155,000 5 1/4% June 1 and December 1 $ 144,375 7 3/8% Senior Notes due 2028 January 1 and July 1 $ 73,750 5 3/4% June 1 and December 1 $ 143,750 5 1/8% June 1 and December 1 $ 76,875 (1) Our 5 7/8% Senior Notes due 2024 mature on November 15, 2024 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2023. |
Schedule of other long term debt and capital lease obligations | As of December 31, 2023 2022 (In thousands) Satellites and other finance lease obligations $ 31,104 $ 69,206 Notes payable related to satellite vendor financing and other debt payable in installments through 2031 with interest rates ranging from approximately 4.0% to 6.0% 42,678 18,329 Total 73,782 87,535 Less: current portion (41,432) (40,922) Other long-term debt and finance lease obligations, net of current portion $ 32,350 $ 46,613 |
Income Taxes and Accounting f_2
Income Taxes and Accounting for Uncertainty in Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes and Accounting for Uncertainty in Income Taxes | |
Schedule of components of the (provision for) benefit from income taxes | For the Years Ended December 31, 2023 2022 2021 (In thousands) Current (benefit) provision: Federal $ 528,689 $ 572,754 $ 486,736 State 118,540 133,475 106,594 Foreign 2,475 (4,255) 2,387 Total current (benefit) provision 649,704 701,974 595,717 Deferred (benefit) provision: Federal (69,321) (95,995) (31,424) State (15,794) (20,720) (7,090) Increase (decrease) in valuation allowance 515 — (2,790) Total deferred (benefit) provision (84,600) (116,715) (41,304) Total (benefit) provision $ 565,104 $ 585,259 $ 554,413 |
Schedule of reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes | For the Years Ended December 31, 2023 2022 2021 % of pre-tax income/(loss) Statutory rate 21.0 21.0 21.0 State income taxes, net of federal benefit 3.4 3.5 3.5 Other, net 0.1 (0.1) (0.3) Total (benefit) provision for income taxes 24.5 24.4 24.2 |
Schedule of deferred tax assets and liabilities | As of December 31, 2023 2022 (In thousands) Deferred tax assets: NOL, interest, credit and other carryforwards $ 7,277 $ 7,642 Accrued and prepaid expenses 22,449 8,526 Stock-based compensation 16,686 19,374 Deferred revenue 6,118 7,344 Bases differences in partnerships and cost method investments 3,360 1,281 Total deferred tax assets 55,890 44,167 Valuation allowance (8,194) (7,679) Deferred tax asset after valuation allowance 47,696 36,488 Deferred tax liabilities: Depreciation (193,564) (235,498) Regulatory authorizations and other intangible amortization (122,302) (153,738) Total deferred tax liabilities (315,866) (389,236) Net deferred tax asset (liability) $ (268,170) $ (352,748) |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits included in long-term deferred revenue, distribution and carriage payments and other long-term liabilities | For the Years Ended December 31, Unrecognized tax benefit 2023 2022 2021 (In thousands) Balance as of beginning of period $ 204,378 $ 198,511 $ 188,141 Additions based on tax positions related to the current year 3,601 3,444 303 Additions based on tax positions related to prior years 2,892 9,523 12,095 Reductions based on tax positions related to prior years (7,219) (7,100) (1,400) Reductions based on tax positions related to settlements with taxing authorities (834) — — Reductions based on tax positions related to the lapse of the statute of limitations (352) — (628) Balance as of end of period $ 202,466 $ 204,378 $ 198,511 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Employee Benefit Plans | |
Schedule of expense recognized related to the 401(k) Plan | For the Years Ended December 31, Expense Recognized Related to the 401(k) Plan 2023 2022 2021 (In thousands) Matching contributions, net of forfeitures $ 10,966 $ 10,150 $ 7,525 Discretionary stock contributions, net of forfeitures $ 52 $ 11,150 $ 24,347 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation | |
Schedule of stock option activity associated with employees | For the Year Ended December 31, 2023 Options Weighted- Average Exercise Price Aggregate intrinsic value Weighted Average Remaining Contractual Life Total options outstanding, beginning of period 3,877,308 $ 72.53 Granted 355,652 $ 34.42 Exercised — $ — Forfeited, cancelled and transferred (1)(2) (944,927) $ 81.57 Total options outstanding, end of period 3,288,033 $ 65.81 $ — 6.94 Performance-based options outstanding, end of period (3) 815,370 $ 96.55 Exercisable at end of period 1,326,093 $ 59.06 $ — 6.24 (1) Includes the cancellation of the 2013 LTIP. See discussion below . (2) Certain of these stock options include options that were granted to individuals who transferred to and/or from another EchoStar subsidiary not a part of DISH DBS. (3) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2017 LTIP, 2019 LTIP, 2022 Incentive Plan and Other Employee Performance Awards below. |
Schedule of realized tax benefits from stock awards exercised | For the Years Ended December 31, 2023 2022 2021 (In thousands) Tax benefit from stock awards exercised $ 871 $ 206 $ 3,815 |
Schedule of aggregate intrinsic value of stock options associated with employees | For the Years Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) Stock options: Weighted-average grant date fair value of options granted $ 34.42 $ 66.92 $ 115.57 Intrinsic value of options exercised (1) $ — $ 61 $ 6,370 Restricted stock units and awards: Weighted-average grant date fair value of units and awards granted $ 17.18 $ 84.56 $ 120.84 Fair value of units and rewards vested (1) $ 4,030 $ 874 $ 262 (1) Intrinsic value and fair value is based on the closing market price of EchoStar’s Class A Common Stock on December 31, 2023. |
Schedule of restricted stock unit activity | For the Year Ended December 31, 2023 Restricted Stock Units/Awards Weighted- Average Grant Date Fair Value Total restricted stock units/awards outstanding, beginning of period 379,073 $ 100.69 Granted 5,534 $ 17.18 Vested (208,520) $ 92.71 Forfeited, cancelled and transferred (1) (172,109) $ 107.22 Total restricted stock units/awards outstanding, end of period 3,978 $ 120.95 (1) Certain of these restricted stock units/awards include restricted stock units/awards that were granted to individuals who transferred to and/or from another EchoStar subsidiary not a part of DISH DBS. |
Schedule of non-cash, stock-based compensation expense recognized | For the Years Ended December 31, Non-Cash, Stock-Based Compensation Expense Recognized (1) 2023 2022 2021 (In thousands) 2022 Incentive Plan $ 5,573 $ 15,024 $ — 2019 LTIP (1,631) (131) 370 2013 LTIP — — (10,550) Other employee performance awards 281 3,711 7,827 Total non-cash, stock-based compensation expense recognized for performance-based awards $ 4,223 $ 18,604 $ (2,353) (1) “Non-Cash, Stock-Based Compensation Expense Recognized” includes actual forfeitures . |
Schedule of unrecognized non-cash, stock-based compensation expense | Estimated Remaining Non-Cash, Stock-Based Compensation Expense 2022 Incentive Plan 2019 LTIP Other Employee Performance Awards (In thousands) Expense estimated to be recognized during 2024 $ 1,714 $ — $ — Estimated contingent expense subsequent to 2024 902 — — Total estimated remaining expense over the term of the plan $ 2,616 $ — $ — |
Schedule of awards outstanding pursuant to performance-based stock incentive plans | As of December 31, 2023 Performance-Based Stock Options Number of Awards Weighted- Average Grant Price 2022 Incentive Plan 303,379 $ 51.17 2019 LTIP 193,452 $ 59.16 2017 LTIP 318,539 $ 162.47 Total 815,370 $ 96.55 |
Schedule of allocated non-cash, stock-based compensation expense for all employees | For the Years Ended December 31, 2023 2022 2021 (In thousands) Cost of services $ 2,240 $ 5,817 $ 4,170 Selling, general and administrative 12,018 34,915 7,660 Total non-cash, stock based compensation $ 14,258 $ 40,732 $ 11,830 |
Schedule of assumptions of Black-Scholes option valuation model | For the Years Ended December 31, Stock Options 2023 2022 2021 Risk-free interest rate 3.58 % - 4.61 % 1.35 % - 4.02 % 0.48 % - 1.11 % Volatility factor 34.30 % - 41.25 % 32.67 % - 34.84 % 29.91 % - 34.51 % Expected term of options in years 4.1 - 6.6 4.1 - 6.0 4.0 - 5.9 Fair value of options granted $ 7.40 - $ 7.77 $ 5.97 - $ 9.27 $ 6.20 - $ 8.32 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies | |
Schedule of future maturities of long-term debt, finance lease and contractual obligations | Payments due by period Total 2024 2025 2026 2027 2028 Thereafter (In thousands) Long-term debt obligations $ 11,775,222 $ 1,992,872 $ 9,425 $ 4,757,972 $ 8,423 $ 3,501,538 $ 1,504,992 Interest expense on long-term debt 2,532,110 712,442 595,606 595,205 295,379 294,636 38,842 Finance lease obligations (1) 31,104 31,104 — — — — — Interest expense on finance lease obligations (1) 1,043 1,043 — — — — — Other long-term obligations (2) 3,415,290 2,026,120 739,613 524,473 125,084 — — Operating lease obligations (1) 117,514 41,709 26,417 15,898 8,337 7,361 17,792 Purchase obligations 1,365,889 1,335,189 26,036 4,664 — — — Total $ 19,238,172 $ 6,140,479 $ 1,397,097 $ 5,898,212 $ 437,223 $ 3,803,535 $ 1,561,626 (1) See Note 7 for further information on leases and the adoption of ASC 842. (2) Represents obligations for satellite related executory costs, telemetry, tracking and control (“TT&C”) services, short-term leases and certain expenses associated with DISH Network’s Wireless segment. |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disaggregation of Revenue | |
Schedule of disaggregation of revenue | For the Years Ended December 31, Category: 2023 2022 2021 (In thousands) Pay-TV subscriber and related revenue $ 11,320,526 $ 12,281,346 $ 12,661,766 Pay-TV equipment sales and other revenue 153,699 96,862 100,097 Total $ 11,474,225 $ 12,378,208 $ 12,761,863 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition | |
Valuation and Qualifying Accounts | For the Years Ended December 31, 2023 2022 2021 (In thousands) Balance at beginning of period $ 40,642 $ 32,861 $ 43,233 Current period provision for expected credit losses 56,047 75,245 48,150 Write-offs charged against allowance (61,805) (67,464) (58,522) Balance at end of period $ 34,884 $ 40,642 $ 32,861 |
Schedule of Contract balances | As of December 31, 2023 2022 (In thousands) Contract liabilities $ 427,319 $ 481,220 |
Schedule of Contract Acquisition Costs | For the Years Ended December 31, 2023 2022 2021 (In thousands) Balance at beginning of period $ 230,146 $ 298,112 $ 338,893 Additions 71,931 86,740 116,922 Amortization expense (126,392) (154,706) (157,703) Balance at end of period $ 175,685 $ 230,146 $ 298,112 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Data (Unaudited) | |
Schedule of quarterly results of operations | For the Three Months Ended March 31 June 30 September 30 December 31 (In thousands) Year ended December 31, 2023: Total revenue $ 2,946,411 $ 2,951,159 $ 2,783,387 $ 2,793,268 Operating income (loss) 652,899 684,470 582,280 677,789 Net income (loss) 433,283 457,638 388,754 464,954 Year ended December 31, 2022: Total revenue $ 3,133,411 $ 3,121,014 $ 3,048,315 $ 3,075,468 Operating income (loss) 724,776 757,713 622,781 717,386 Net income (loss) 444,411 483,180 408,337 474,817 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions | |
Schedule of related party transaction | For the Years Ended December 31, 2023 2022 2021 (In thousands) Purchases (including fees): Purchases from NagraStar $ 37,068 $ 43,416 $ 45,944 As of December 31, 2023 2022 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 9,821 $ 7,422 Commitments to NagraStar $ 1,727 $ 3,272 |
Organization and Business Act_2
Organization and Business Activities (Details) customer in Thousands, $ in Millions | Dec. 31, 2023 USD ($) customer |
Organization and Business Activities | |
Cash and cash equivalents and marketable investment securities | $ | $ 374 |
5 7/8% Senior Notes due 2024 | |
Organization and Business Activities | |
Long-term Debt, Gross | $ | $ 1,983 |
Pay TV Subscribers | |
Organization and Business Activities | |
Number of subscribers | 8,526 |
DISH TV subscribers | |
Organization and Business Activities | |
Number of subscribers | 6,471 |
Sling TV subscribers | |
Organization and Business Activities | |
Number of subscribers | 2,055 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Principles of Consolidation and Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Significant accounting policies | ||||
Maturity period of cash equivalents | 90 days | |||
Business Combinations | ||||
Impairment of long-lived assets and goodwill (Note 2) | $ 6 | $ 0 | ||
Advertising Costs | ||||
Advertising expenses | 365 | $ 480 | $ 431 | |
Research and Development | ||||
Research and development costs | $ 42 | $ 45 | $ 29 | |
Minimum | ||||
Property and Equipment | ||||
Useful life of property and equipment | 2 years | |||
Business Combinations | ||||
Amortization of finite lived intangible assets useful life | 13 years | |||
Maximum | ||||
Property and Equipment | ||||
Useful life of property and equipment | 40 years | |||
Business Combinations | ||||
Amortization of finite lived intangible assets useful life | 20 years | |||
Long-Term Deferred Revenue and Other Long-Term Liabilities | ||||
Deferred upfront payment, amortization period | 10 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Fair Value Measurements (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Summary of Significant Accounting Policies | ||
Fair value transfer of assets from level 1 to level 2 | $ 0 | $ 0 |
Fair value transfer of assets from level 2 to level 1 | 0 | 0 |
Fair value transfer of assets to level 3 | 0 | 0 |
Fair value transfer of assets from level 3 | 0 | 0 |
Fair value transfer of liabilities from level 1 to level 2 | 0 | 0 |
Fair value transfer of liabilities from level 2 to level 1 | 0 | 0 |
Fair value transfer of liabilities to level 3 | 0 | 0 |
Fair value transfer of liabilities from level 3 | $ 0 | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Contract cost capitalized during the period | $ 71,931 | $ 86,740 | $ 116,922 | |
Amortization expense related to the programs | (126,392) | (154,706) | (157,703) | |
Total costs capitalized | $ 175,685 | $ 230,146 | $ 298,112 | $ 338,893 |
Maximum | ||||
Period of deferral for the portion of subscriber fees that are deferred | 1 year |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Leases (Details) | 12 Months Ended |
Dec. 31, 2023 | |
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 | 9 years |
Remaining lease terms, finance lease | 9 years |
Termination period, operating lease | 1 year |
Termination period, finance lease | 1 year |
Supplemental Data - Statement_3
Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for interest | $ 747,332 | $ 899,382 | $ 636,934 |
Cash received for interest | 19,972 | 20,967 | 4,263 |
Cash paid for income taxes | 12,951 | 29,000 | 31,025 |
Cash paid for income taxes to DISH Network | 622,512 | $ 489,819 | 562,268 |
Vendor financing | 26,751 | $ 164 | |
Intercompany Loan [Member] | |||
Cash received for interest | $ 104,940 |
Marketable Investment Securit_3
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) item | Dec. 31, 2022 USD ($) | Feb. 28, 2017 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Current marketable investment securities | $ 397 | $ 282,733 | |
Restricted cash and cash equivalents | 54,980 | 53,525 | |
Other investment securities | 90,168 | 93,806 | |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | $ 145,545 | $ 430,064 | |
NagraStar | |||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Ownership interest in equity method investment | 50% | 50% | |
Number of technologies provided to customers | item | 3 | ||
Invidi Technologies Corporation | |||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Ownership interest in equity method investment | 35% |
Marketable Investment Securit_4
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Commercial Paper | |
Other investment securities: | |
Debt term of Maturity | 365 days |
Corporate securities | |
Other investment securities: | |
Debt term of Maturity | 18 months |
Marketable Investment Securit_5
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Fair Value Measurements (Details) - Fair value measurements on recurring basis - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair value of marketable securities | ||
Cash equivalents (including restricted) | $ 411,571 | $ 650,523 |
Total | 397 | 282,733 |
U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Debt securities | 7,727 | |
Commercial paper | ||
Fair value of marketable securities | ||
Debt securities | 227,787 | |
Corporate securities | ||
Fair value of marketable securities | ||
Debt securities | 46,764 | |
Other (including restricted) | ||
Fair value of marketable securities | ||
Debt securities | 397 | 455 |
Level 1 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 358,545 | 99,437 |
Total | 7,727 | |
Level 1 | U.S. Treasury and agency securities | ||
Fair value of marketable securities | ||
Debt securities | 7,727 | |
Level 2 | ||
Fair value of marketable securities | ||
Cash equivalents (including restricted) | 53,026 | 551,086 |
Total | 397 | 275,006 |
Level 2 | Commercial paper | ||
Fair value of marketable securities | ||
Debt securities | 227,787 | |
Level 2 | Corporate securities | ||
Fair value of marketable securities | ||
Debt securities | 46,764 | |
Level 2 | Other (including restricted) | ||
Fair value of marketable securities | ||
Debt securities | $ 397 | $ 455 |
Marketable Investment Securit_6
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Unrealized Gains (Losses) On Marketable Investment Securities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Contractual maturities of restricted and non-restricted marketable investment securities | |
Debt securities with contractual maturities within one year | $ 397 |
Marketable Investment Securit_7
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Gains And Losses On Sales And Changes In Carrying Amounts Of Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |||
Gains (losses) related to early redemption of debt | $ 1,262 | $ (922) | $ (3,587) |
Equity in earnings (losses) of affiliates | (1,202) | 4,112 | 2,520 |
Other | 458 | 1,276 | 247 |
Total | $ 518 | $ 4,466 | $ (820) |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory | ||
Finished goods | $ 208,049 | $ 252,939 |
Work-in-process and service repairs | 35,457 | 19,351 |
Raw materials | 24,335 | 35,121 |
Total inventory | $ 267,841 | $ 307,411 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property and Equipment | ||
Total property and equipment | $ 4,344,935 | $ 4,431,071 |
Accumulated depreciation | (3,536,870) | (3,440,185) |
Property and equipment, net | $ 808,065 | 990,886 |
Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 2 years | |
Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 40 years | |
Equipment leased to customers | ||
Property and Equipment | ||
Total property and equipment | $ 1,175,734 | 1,309,737 |
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 | $ 174,685 | 174,685 |
Depreciable life of assets | 5 years | |
Furniture, fixtures, equipment and other | ||
Property and Equipment | ||
Total property and equipment | $ 755,163 | 753,138 |
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 | 10 years | |
Software | ||
Property and Equipment | ||
Total property and equipment | $ 1,197,632 | 1,161,392 |
Software | Minimum | ||
Property and Equipment | ||
Depreciable life of assets | 3 years | |
Software | Maximum | ||
Property and Equipment | ||
Depreciable life of assets | 5 years | |
Buildings and improvements | ||
Property and Equipment | ||
Total property and equipment | $ 294,890 | 295,375 |
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 | $ 12,505 | 12,505 |
Construction in progress | ||
Property and Equipment | ||
Total property and equipment | $ 45,413 | $ 35,326 |
Property and Equipment - Deprec
Property and Equipment - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Depreciation and amortization expense | |||
Depreciation and amortization expense | $ 315,660 | $ 354,361 | $ 439,004 |
Equipment leased to customers | |||
Depreciation and amortization expense | |||
Depreciation and amortization expense | 166,918 | 191,712 | 244,735 |
Satellites | |||
Depreciation and amortization expense | |||
Depreciation and amortization expense | 80,292 | 84,016 | 95,187 |
Buildings, furniture, fixtures, equipment and other | |||
Depreciation and amortization expense | |||
Depreciation and amortization expense | $ 68,450 | $ 78,633 | $ 99,082 |
Property and Equipment - Satell
Property and Equipment - Satellites (Details) | 12 Months Ended |
Dec. 31, 2023 item | |
Property, Plant and Equipment [Line Items] | |
Number of other satellites to be relocated in the event of failure or loss of any satellite | 1 |
Pay-TV Satellites | |
Property, Plant and Equipment [Line Items] | |
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 9 |
Owned Satellites | 2 |
Number of satellites leased from third parties | 1 |
Dish Network | Pay-TV Satellites | |
Property, Plant and Equipment [Line Items] | |
Number of satellites utilized under operating lease | 6 |
Property and Equipment - Intang
Property and Equipment - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets | |||
Intangible Assets | $ 104,545 | $ 104,545 | |
Accumulated Amortization | (100,915) | (100,261) | |
Amortization expenses | $ 1,000 | 1,000 | $ 1,000 |
Minimum | |||
Intangible Assets | |||
Useful life | 13 years | ||
Maximum | |||
Intangible Assets | |||
Useful life | 20 years | ||
Technology-based | |||
Intangible Assets | |||
Intangible Assets | $ 58,162 | 58,162 | |
Accumulated Amortization | (55,623) | (55,079) | |
Trademarks | |||
Intangible Assets | |||
Intangible Assets | 18,251 | 18,251 | |
Accumulated Amortization | (17,160) | (17,050) | |
Contract-based | |||
Intangible Assets | |||
Intangible Assets | 4,500 | 4,500 | |
Accumulated Amortization | (4,500) | (4,500) | |
Customer relationships | |||
Intangible Assets | |||
Intangible Assets | 23,632 | 23,632 | |
Accumulated Amortization | $ (23,632) | $ (23,632) |
Property and Equipment - Estima
Property and Equipment - Estimated future amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Estimated future amortization of identifiable intangible assets | ||
2024 | $ 654 | |
2025 | 654 | |
2026 | 654 | |
2027 | 654 | |
2028 | 473 | |
Thereafter | 541 | |
Total | 3,630 | |
Impairment charge for goodwill | 6,000 | |
Other noncurrent assets, net | ||
Estimated future amortization of identifiable intangible assets | ||
Goodwill | $ 0 | $ 6,000 |
Property and Equipment - FCC Au
Property and Equipment - FCC Authorizations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Regulatory authorizations, net | $ 611,794 | $ 611,794 |
FCC Authorizations | ||
Regulatory authorizations, net | 611,794 | 611,794 |
DBS Licenses | FCC Authorizations | ||
Regulatory authorizations, net | $ 611,794 | $ 611,794 |
Leases (Details)
Leases (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Leases | |
Short term lease period | 12 months |
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 | 9 years |
Remaining lease terms, finance lease | 9 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 | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Operating lease cost | $ 70,262 | $ 166,599 | $ 217,635 |
Short-term lease cost | 169,159 | 74,514 | 33,456 |
Amortization of right-of-use assets | 34,448 | 38,322 | 49,496 |
Interest on lease liabilities | 4,845 | 8,566 | 13,122 |
Total finance lease cost | 39,293 | 46,888 | 62,618 |
Total lease costs | $ 278,714 | $ 288,001 | $ 313,709 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases | |||
Operating cash flows from operating leases | $ 96,195 | $ 138,318 | $ 213,135 |
Operating cash flows from finance leases | 6,633 | 6,733 | 13,002 |
Financing cash flows from finance leases | 47,030 | 31,030 | 51,608 |
Right-of-use assets obtained in exchange for lease obligations, operating leases | $ 30,657 | $ 74,317 | $ 22,780 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases | ||
Operating lease assets | $ 92,972 | $ 130,454 |
Other current liabilities | $ 36,618 | $ 60,203 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | Other Accrued Liabilities, Current |
Operating lease liabilities | $ 61,381 | $ 75,142 |
Total operating lease liabilities | $ 97,999 | $ 135,345 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Operating lease liabilities, Other Accrued Liabilities, Current | Operating lease liabilities, Other Accrued Liabilities, Current |
Property and equipment, gross | $ 4,344,935 | $ 4,431,071 |
Accumulated depreciation | (3,536,870) | (3,440,185) |
Property and equipment, net | 808,065 | 990,886 |
Other current liabilities | $ 31,104 | $ 38,102 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Long-term Debt and Capital Lease Obligations, Current | Long-term Debt and Capital Lease Obligations, Current |
Other long-term liabilities | $ 31,104 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term Debt, Excluding Current Maturities | Long-term Debt, Excluding Current Maturities |
Total finance lease liabilities | $ 31,104 | $ 69,206 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Contract with Customer, Liability, Noncurrent and Other Long Term Liabilities | Contract with Customer, Liability, Noncurrent and Other Long Term Liabilities |
Weighted Average Remaining Lease Term: Operating leases | 4 years 1 month 6 days | 3 years 8 months 12 days |
Weighted Average Remaining Lease Term: Finance leases | 9 months 18 days | 1 year 9 months 18 days |
Weighted Average Discount Rate: Operating leases | 8.30% | 7.20% |
Weighted Average Discount Rate: Finance leases | 10% | 10% |
Property and equipment | ||
Leases | ||
Property and equipment, gross | $ 175,704 | $ 175,704 |
Accumulated depreciation | (149,917) | (115,469) |
Property and equipment, net | $ 25,787 | $ 60,235 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Maturities of lease liabilities: Operating leases | ||
2024 | $ 41,709 | |
2025 | 26,417 | |
2026 | 15,898 | |
2027 | 8,337 | |
2028 | 7,361 | |
Thereafter | 17,792 | |
Total lease payments | 117,514 | |
Less: Imputed interest | (19,515) | |
Total operating lease liabilities | 97,999 | $ 135,345 |
Less: Current portion | (36,618) | (60,203) |
Long-term portion of lease obligations | 61,381 | 75,142 |
Maturities of lease liabilities: Finance leases | ||
2024 | 32,147 | |
Total lease payments | 32,147 | |
Less: Imputed interest | (1,043) | |
Total finance lease liabilities | 31,104 | 69,206 |
Less: Current portion | (31,104) | (38,102) |
Long-term portion of lease obligations | $ 31,104 | |
Future minimum payments for total lease liabilities | ||
2024 | 73,856 | |
2025 | 26,417 | |
2026 | 15,898 | |
2027 | 8,337 | |
2028 | 7,361 | |
Thereafter | 17,792 | |
Total lease payments | 149,661 | |
Less: Imputed interest | (20,558) | |
Total | 129,103 | |
Less: Current portion | (67,722) | |
Long-term portion of lease obligations | $ 61,381 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Long term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Jun. 13, 2016 | Nov. 20, 2014 | Dec. 31, 2023 | Jan. 16, 2024 | Dec. 31, 2022 | Nov. 26, 2021 | May 24, 2021 | Jul. 01, 2020 | |
Long-term debt | ||||||||
Finance lease obligations | $ 31,104 | $ 69,206 | ||||||
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101% | |||||||
5% Senior Notes due 2023 | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 5% | |||||||
5 7/8% Senior Notes due 2024 | ||||||||
Long-term debt | ||||||||
Carrying Amount | $ 1,983,000 | |||||||
Interest rate (as a percent) | 5.875% | 5.875% | ||||||
Debt repurchased | $ 17,000 | |||||||
Outstanding debt | $ 1,983,000 | |||||||
Redemption price as a percentage of principal amount | 100% | |||||||
Aggregate principal amount | $ 2,000,000 | |||||||
Term of debt instrument | 10 years | |||||||
Annual Debt Service Requirements | $ 117,500 | |||||||
7 3/4% Senior Notes due 2026 | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 7.75% | 7.75% | ||||||
Redemption price as a percentage of principal amount | 100% | |||||||
Aggregate principal amount | $ 2,000,000 | |||||||
Term of debt instrument | 10 years | |||||||
Annual Debt Service Requirements | $ 155,000 | |||||||
5 1/4% Senior Secured Notes due 2026 | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 5.25% | 5.25% | ||||||
Redemption price as a percentage of principal amount | 100% | |||||||
Aggregate principal amount | $ 2,750,000 | |||||||
Term of debt instrument | 36 months | |||||||
Annual Debt Service Requirements | $ 144,375 | |||||||
5 1/4% Senior Secured Notes due 2026 | Redemption Prior to December 1, 2024 | ||||||||
Long-term debt | ||||||||
Redemption price as a percentage of principal amount | 100% | |||||||
5 1/4% Senior Secured Notes due 2026 | Redemption Prior to December 1, 2024 | Maximum | ||||||||
Long-term debt | ||||||||
Percentage of principal amount redeemed | 35% | |||||||
5 1/4% Senior Secured Notes due 2026 | Each Twelve Months period commencing with issuance date | ||||||||
Long-term debt | ||||||||
Redemption price as a percentage of principal amount | 103% | |||||||
5 1/4% Senior Secured Notes due 2026 | Each Twelve Months period commencing with issuance date | Maximum | ||||||||
Long-term debt | ||||||||
Percentage of principal amount redeemed | 10% | |||||||
7 3/8% Senior Notes due 2028 | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 7.375% | 7.375% | ||||||
Redemption price as a percentage of principal amount | 100% | |||||||
Aggregate principal amount | $ 1,000,000 | |||||||
Annual Debt Service Requirements | $ 73,750 | |||||||
5 3/4% Senior Secured Notes due 2028 | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 5.75% | 5.75% | ||||||
Redemption price as a percentage of principal amount | 100% | |||||||
Aggregate principal amount | $ 2,500,000 | |||||||
Term of debt instrument | 36 months | |||||||
Annual Debt Service Requirements | $ 143,750 | |||||||
5 3/4% Senior Secured Notes due 2028 | Redemption Prior to December 1, 2024 | ||||||||
Long-term debt | ||||||||
Redemption price as a percentage of principal amount | 100% | |||||||
5 3/4% Senior Secured Notes due 2028 | Redemption Prior to December 1, 2024 | Maximum | ||||||||
Long-term debt | ||||||||
Percentage of principal amount redeemed | 35% | |||||||
5 3/4% Senior Secured Notes due 2028 | Each Twelve Months period commencing with issuance date | ||||||||
Long-term debt | ||||||||
Percentage of principal amount redeemed | 10% | |||||||
Redemption price as a percentage of principal amount | 103% | |||||||
5 1/8% Senior Notes due 2029 | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 5.125% | 5.125% | ||||||
Redemption price as a percentage of principal amount | 100% | |||||||
Aggregate principal amount | $ 1,500,000 | |||||||
Annual Debt Service Requirements | $ 76,875 | |||||||
5 1/8% Senior Notes due 2029 | Redemption Prior to June 1, 2014 | Maximum | ||||||||
Long-term debt | ||||||||
Percentage of principal amount redeemed | 35% | |||||||
D I S H D B S Corporation | ||||||||
Long-term debt | ||||||||
Carrying Amount | $ 11,775,222 | 13,211,508 | ||||||
Fair Value | 9,056,971 | 10,986,747 | ||||||
Unamortized deferred financing costs and debt discounts, net | (26,812) | (35,206) | ||||||
Finance lease obligations | 31,104 | 69,206 | ||||||
Total long-term debt and finance lease obligations (including current portion) | $ 11,779,514 | 13,245,508 | ||||||
D I S H D B S Corporation | 5% Senior Notes due 2023 | ||||||||
Long-term debt | ||||||||
Carrying Amount | 1,443,179 | |||||||
Fair Value | $ 1,441,635 | |||||||
Interest rate (as a percent) | 5% | 5% | ||||||
D I S H D B S Corporation | 5 7/8% Senior Notes due 2024 | ||||||||
Long-term debt | ||||||||
Carrying Amount | $ 1,982,544 | $ 2,000,000 | ||||||
Fair Value | $ 1,872,275 | 1,870,940 | ||||||
Interest rate (as a percent) | 5.875% | |||||||
D I S H D B S Corporation | 5 7/8% Senior Notes due 2024 | Subsequent event | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 5.875% | |||||||
D I S H D B S Corporation | 7 3/4% Senior Notes due 2026 | ||||||||
Long-term debt | ||||||||
Carrying Amount | $ 2,000,000 | 2,000,000 | ||||||
Fair Value | $ 1,388,060 | 1,620,280 | ||||||
Interest rate (as a percent) | 7.75% | |||||||
D I S H D B S Corporation | 7 3/4% Senior Notes due 2026 | Subsequent event | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 7.75% | |||||||
D I S H D B S Corporation | 5 1/4% Senior Secured Notes due 2026 | ||||||||
Long-term debt | ||||||||
Carrying Amount | $ 2,750,000 | 2,750,000 | ||||||
Fair Value | $ 2,366,073 | 2,336,813 | ||||||
Interest rate (as a percent) | 5.25% | |||||||
D I S H D B S Corporation | 7 3/8% Senior Notes due 2028 | ||||||||
Long-term debt | ||||||||
Carrying Amount | $ 1,000,000 | 1,000,000 | ||||||
Fair Value | $ 600,160 | 708,320 | ||||||
Interest rate (as a percent) | 7.375% | |||||||
D I S H D B S Corporation | 7 3/8% Senior Notes due 2028 | Subsequent event | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 7.375% | |||||||
D I S H D B S Corporation | 5 3/4% Senior Secured Notes due 2028 | ||||||||
Long-term debt | ||||||||
Carrying Amount | $ 2,500,000 | 2,500,000 | ||||||
Fair Value | $ 2,013,125 | 2,013,675 | ||||||
Interest rate (as a percent) | 5.75% | |||||||
D I S H D B S Corporation | 5 1/8% Senior Notes due 2029 | ||||||||
Long-term debt | ||||||||
Carrying Amount | $ 1,500,000 | 1,500,000 | ||||||
Fair Value | $ 774,600 | 976,755 | ||||||
Interest rate (as a percent) | 5.125% | |||||||
D I S H D B S Corporation | 5 1/8% Senior Notes due 2029 | Subsequent event | ||||||||
Long-term debt | ||||||||
Interest rate (as a percent) | 5.125% | |||||||
D I S H D B S Corporation | Other notes payable | ||||||||
Long-term debt | ||||||||
Carrying Amount | $ 42,678 | 18,329 | ||||||
Fair Value | $ 42,678 | $ 18,329 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Obligations - Other Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other long-term debt and capital lease obligations | ||
Total | $ 73,782 | $ 87,535 |
Less current portion | (41,432) | (40,922) |
Other long-term debt and capital lease obligations, net of current portion | 32,350 | 46,613 |
Satellites and other finance lease obligations | ||
Other long-term debt and capital lease obligations | ||
Total | 31,104 | 69,206 |
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates ranging from approximately 6% to 13% | ||
Other long-term debt and capital lease obligations | ||
Total | $ 42,678 | $ 18,329 |
Minimum | Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates ranging from approximately 6% to 13% | ||
Other long-term debt and capital lease obligations | ||
Interest rate (as a percent) | 4% | |
Maximum | Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates ranging from approximately 6% to 13% | ||
Other long-term debt and capital lease obligations | ||
Interest rate (as a percent) | 6% |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Obligations - Finance Lease Obligations (Details) | 12 Months Ended |
Dec. 31, 2023 | |
FSS Satellite Anik F3 | |
Lessee, Lease, Description [Line Items] | |
Ku-band capacity leased (as a percent) | 100% |
Term of capital lease | 15 years |
Nimiq 5 | |
Lessee, Lease, Description [Line Items] | |
Percentage of capacity leased | 100% |
Income Taxes and Accounting f_3
Income Taxes and Accounting for Uncertainty in Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes and Accounting for Uncertainty in Income Taxes | |||
Tax benefits related to credit carryforwards | $ 9,000 | ||
Cash paid for income taxes to DISH Network | 622,512 | $ 489,819 | $ 562,268 |
Net operating loss carryforwards | 0 | ||
Current (benefit) provision: | |||
Federal | 528,689 | 572,754 | 486,736 |
State | 118,540 | 133,475 | 106,594 |
Foreign | 2,475 | (4,255) | 2,387 |
Total current (benefit) provision | 649,704 | 701,974 | 595,717 |
Deferred (benefit) provision: | |||
Federal | (69,321) | (95,995) | (31,424) |
State | (15,794) | (20,720) | (7,090) |
Increase (decrease) in valuation allowance | 515 | (2,790) | |
Total deferred (benefit) provision | (84,600) | (116,715) | (41,304) |
Total (benefit) provision | 565,104 | 585,259 | 554,413 |
Income (loss) before income taxes | 2,309,733 | $ 2,396,004 | $ 2,291,285 |
Income (loss) from foreign operations | $ 13,000 | ||
Reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes | |||
Statutory rate (as a percent) | 21% | 21% | 21% |
State income taxes, net of Federal benefit (as a percent) | 3.40% | 3.50% | 3.50% |
Other, net (as a percent) | 0.10% | (0.10%) | (0.30%) |
Total (benefit) provision for income taxes | 24.50% | 24.40% | 24.20% |
Deferred tax assets: | |||
NOL, interest, credit and other carryforwards | $ 7,277 | $ 7,642 | |
Accrued and prepaid expenses | 22,449 | 8,526 | |
Stock-based compensation | 16,686 | 19,374 | |
Deferred revenue | 6,118 | 7,344 | |
Bases differences in partnerships and cost method investments | 3,360 | 1,281 | |
Total deferred tax assets | 55,890 | 44,167 | |
Valuation allowance | (8,194) | (7,679) | |
Deferred tax asset after valuation allowance | 47,696 | 36,488 | |
Deferred tax liabilities: | |||
Depreciation | (193,564) | (235,498) | |
FCC authorizations and other intangible amortization | (122,302) | (153,738) | |
Total deferred tax liabilities | (315,866) | (389,236) | |
Net deferred tax asset (liability) | (268,170) | (352,748) | |
Reconciliation of the beginning and ending amount of unrecognized tax benefits included in long-term deferred revenue, distribution and carriage payments and other long-term liabilities | |||
Balance as of beginning of period | 204,378 | 198,511 | $ 188,141 |
Additions based on tax positions related to the current year | 3,601 | 3,444 | 303 |
Additions based on tax positions related to prior years | 2,892 | 9,523 | 12,095 |
Reductions based on tax positions related to prior years | (7,219) | (7,100) | (1,400) |
Reductions based on tax positions related to settlements with taxing authorities | (834) | ||
Reductions based on tax positions related to the lapse of the statute of limitations | (352) | (628) | |
Balance as of end of period | 202,466 | 204,378 | 198,511 |
Unrecognized tax benefits if recognized, could favorably affect our effective tax rate | 164,000 | ||
Interest and penalty (benefit) expense | 14,000 | 8,000 | $ 6,000 |
Accrued interest and penalties | $ 62,000 | $ 49,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expense recognized related to 401(k) plan | |||
Matching contributions, net of forfeitures | $ 10,966,000 | $ 10,150,000 | $ 7,525,000 |
Discretionary stock contributions, net of forfeitures | $ 52,000 | $ 11,150,000 | $ 24,347,000 |
Employer matching contribution as a percentage of voluntary employee contributions under 401(k) plan | 50% | ||
Employer maximum annual contribution per employee under 401(k) plan | $ 2,500 | ||
Employee Stock Purchase Plan | |||
Expense recognized related to 401(k) plan | |||
Minimum number of calendar quarters to be employed for full-time employees to be eligible to participate in the ESPP | 3 months | ||
Maximum fair value of capital stock permitted to be purchased by employees in any one year under ESPP | $ 25,000 | ||
Employee Stock Purchase Plan | Class A common stock | |||
Expense recognized related to 401(k) plan | |||
Number of shares authorized to be issued under Employee Stock Purchase Plan (ESPP) | 5 | ||
Shares of common stock available for future grant under stock incentive plans | 0.5 | ||
Purchase price as percentage of closing market price on the last business day of each calendar quarter under ESPP | 85% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 12 Months Ended | ||||
Jul. 22, 2022 employee shares | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | Sep. 30, 2022 $ / shares | Dec. 31, 2021 shares | |
Stock-Based Compensation | |||||
Percentage of work time needed for stock based compensation | 50% | ||||
DISH Network Awards | |||||
Stock-Based Compensation | |||||
Percentage of stock awards vesting per year (as a percent) | 20% | ||||
Class A common stock | DISH Network Awards | |||||
Stock-Based Compensation | |||||
Shares of common stock available for future grant under stock incentive plans | 17,200,000 | ||||
Employee Stock Option [Member] | |||||
Stock-Based Compensation | |||||
Stock Awards Outstanding (in shares) | 9,000,000 | ||||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 20 | ||||
Number of employees affected by stock option adjustment | employee | 500 | ||||
Employee Stock Option [Member] | Maximum | |||||
Stock-Based Compensation | |||||
Expiration term | 10 years | ||||
Employee Stock Option [Member] | DISH Network Awards | |||||
Stock-Based Compensation | |||||
Stock Awards Outstanding (in shares) | 3,288,033 | 3,877,308 | 6.94 | ||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 65.81 | $ 72.53 | |||
Employee Stock Option [Member] | Class A common stock | DISH Network Awards | |||||
Stock-Based Compensation | |||||
Stock Awards Outstanding (in shares) | 3,300,000 | ||||
Employee Stock Option [Member] | Long-Term Performance Based Plans | DISH Network Awards | |||||
Stock-Based Compensation | |||||
Stock Awards Outstanding (in shares) | 815,370 | ||||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ / shares | $ 96.55 | ||||
Restricted Stock Units | |||||
Stock-Based Compensation | |||||
Stock Awards Outstanding (in shares) | 4,000 | ||||
Restricted Stock Units | DISH Network Awards | |||||
Stock-Based Compensation | |||||
Stock Awards Outstanding (in shares) | 4,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Outstanding And Exercisable Associated With Employees (Details) - Employee Stock Option [Member] - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jul. 22, 2022 | Dec. 31, 2021 |
Exercise prices for stock options outstanding and exercisable: | |||||
Number of stock options outstanding (in shares) | 9,000,000 | ||||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 20 | ||||
DISH Network Awards | |||||
Exercise prices for stock options outstanding and exercisable: | |||||
Number of stock options outstanding (in shares) | 3,288,033 | 3,877,308 | 6.94 | ||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 65.81 | $ 72.53 | |||
Number of stock options exercisable | 1,326,093 | 6.24 | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 59.06 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) - Employee Stock Option [Member] - DISH Network Awards - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2021 | |
Stock option activity | ||
Total options outstanding, beginning of period (in shares) | 3,877,308 | |
Granted (in shares) | 355,652 | |
Forfeited and cancelled (in shares) | (944,927) | |
Total options outstanding, end of period (in shares) | 3,288,033 | |
Exercisable at the end of the period (in shares) | 1,326,093 | 6.24 |
Weighted-Average Exercise Price | ||
Total options outstanding, beginning of the period (in dollars per share) | $ 72.53 | |
Granted (in dollars per share) | 34.42 | |
Forfeited and cancelled (in dollars per share) | 81.57 | |
Total options outstanding at the end of the period (in dollars per share) | 65.81 | |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 59.06 | |
Long-Term Performance Based Plans | ||
Stock option activity | ||
Total options outstanding, end of period (in shares) | 815,370 | |
Weighted-Average Exercise Price | ||
Total options outstanding at the end of the period (in dollars per share) | $ 96.55 |
Stock-Based Compensation - Tax
Stock-Based Compensation - Tax Benefits From Stock Awards Exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Stock Option [Member] | |||
Stock-Based Compensation | |||
Tax benefit from stock awards exercised | $ 871 | $ 206 | $ 3,815 |
Stock-Based Compensation - Aggr
Stock-Based Compensation - Aggregate Intrinsic Value Of Stock Options (Details) - DISH Network Awards - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Stock Option [Member] | |||
Aggregate intrinsic value | |||
Weighted-average fair value of options granted (in dollars per share) | $ 34.42 | $ 66.92 | $ 115.57 |
Aggregate intrinsic value of stock options exercisable | $ 61 | $ 6,370 | |
Restricted Stock Units | |||
Aggregate intrinsic value | |||
Weighted-average fair value of options granted (in dollars per share) | $ 17.18 | $ 84.56 | $ 120.84 |
Fair value of units and rewards vested | $ 4,030 | $ 874 | $ 262 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit Activity (Details) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Long-Term Performance Based Plans | |
Restricted stock unit activity | |
Vested (in shares) | 0 |
Restricted Stock Units | DISH Network Awards | |
Restricted stock unit activity | |
Total restricted stock units outstanding, beginning of period (in shares) | 379,073 |
Granted (in shares) | 5,534 |
Vested (in shares) | (208,520) |
Forfeited and cancelled (in shares) | (172,109) |
Total restricted stock units outstanding, end of period (in shares) | 3,978 |
Weighted- Average Grant Date Fair Value | |
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ / shares | $ 100.69 |
Granted (in dollars per share) | $ / shares | 17.18 |
Vested (in dollars per share) | $ / shares | 92.71 |
Forfeited and cancelled (in dollars per share) | $ / shares | 107.22 |
Total restricted stock units outstanding, end of period (in dollars per share) | $ / shares | $ 120.95 |
Stock-Based Compensation - LTIP
Stock-Based Compensation - LTIP (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | 24 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Sep. 30, 2022 | Jul. 22, 2022 | |
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | $ 14,258 | $ 40,732 | $ 11,830 | |||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Unrecognized compensation expense, weighted average period | 8 years 7 months 6 days | |||||
Long-Term Performance Based Plans | ||||||
LTIP Terms | ||||||
Vested (in Shares) | 0 | |||||
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | $ 4,223 | $ 18,604 | (2,353) | |||
2013 LTIP | ||||||
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | $ (10,550) | |||||
2019 LTIP | ||||||
Share-based compensation additional disclosures | ||||||
Percentage of performance goals probable of achievement | 85% | 89% | 90% | |||
Percentage of awards vested | 78% | 75% | 69% | |||
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | $ (1,631) | $ (131) | $ 370 | |||
2022 Incentive Plan | ||||||
LTIP Terms | ||||||
Vested (in Shares) | 0 | |||||
Share-based compensation additional disclosures | ||||||
Percentage of performance goals probable of achievement | 100% | |||||
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | $ 5,573 | $ 15,024 | ||||
Other Employee Performance Awards | ||||||
LTIP Terms | ||||||
Vested (in Shares) | 0 | 0 | 0 | |||
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | $ 281 | $ 3,711 | $ 7,827 | |||
Non-Performance Based Stock Awards | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Unrecognized compensation expense | $ 24,000 | |||||
DISH Network Awards | ||||||
Share-based compensation additional disclosures | ||||||
Percentage of stock awards vesting per year (as a percent) | 20% | |||||
DISH Network Awards | 2022 Incentive Plan | ||||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | ||||||
Expense estimated to be recognized during 2022 | $ 1,714 | |||||
Estimated contingent expense subsequent to 2022 | 902 | |||||
Total estimated remaining expense over the term of plan | $ 2,616 | |||||
Employee Stock Option [Member] | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 9,000,000 | |||||
Weighted-Average Exercise Price (in dollars per share) | $ 20 | |||||
Employee Stock Option [Member] | 2013 LTIP | ||||||
LTIP Terms | ||||||
Cancelled (in shares) | 190,149 | |||||
Employee Stock Option [Member] | 2017 LTIP | ||||||
LTIP Terms | ||||||
Cancelled (in shares) | 318,539 | |||||
Employee Stock Option [Member] | DISH Network Awards | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 3,288,033 | 3,877,308 | 6.94 | 3,877,308 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 65.81 | $ 72.53 | $ 72.53 | |||
Employee Stock Option [Member] | DISH Network Awards | Long-Term Performance Based Plans | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 815,370 | |||||
Weighted-Average Exercise Price (in dollars per share) | $ 96.55 | |||||
Employee Stock Option [Member] | DISH Network Awards | 2017 LTIP | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 318,539 | |||||
Weighted-Average Exercise Price (in dollars per share) | $ 162.47 | |||||
Employee Stock Option [Member] | DISH Network Awards | 2019 LTIP | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 193,452 | |||||
Weighted-Average Exercise Price (in dollars per share) | $ 59.16 | |||||
Employee Stock Option [Member] | DISH Network Awards | 2022 Incentive Plan | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 303,379 | |||||
Weighted-Average Exercise Price (in dollars per share) | $ 51.17 | |||||
Restricted Stock Units | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 4,000 | |||||
Restricted Stock Units | 2013 LTIP | ||||||
LTIP Terms | ||||||
Cancelled (in shares) | 135,344 | |||||
Restricted Stock Units | DISH Network Awards | ||||||
LTIP Terms | ||||||
Vested (in Shares) | 208,520 | |||||
Cancelled (in shares) | 172,109 | |||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 4,000 | |||||
Subscriber-related | ||||||
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | $ 2,240 | $ 5,817 | $ 4,170 | |||
General and administrative | ||||||
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | $ 12,018 | $ 34,915 | $ 7,660 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Of Stock Options Granted (Details) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Black-Scholes option valuation model, assumptions | |||
Risk-free interest rate, low end of range (as a percent) | 3.58% | 1.35% | 0.48% |
Risk-free interest rate, high end of range (as a percent) | 4.61% | 4.02% | 1.11% |
Volatility factor, low end of range (as a percent) | 34.30% | 32.67% | 29.91% |
Volatility factor, high end of range (as a percent) | 41.25% | 34.84% | 34.51% |
DISH Network Awards | |||
Black-Scholes option valuation model, assumptions | |||
Weighted-average fair value of options granted (in dollars per share) | $ 34.42 | $ 66.92 | $ 115.57 |
Maximum | |||
Black-Scholes option valuation model, assumptions | |||
Expected term of options | 6 years 7 months 6 days | 6 years | 5 years 10 months 24 days |
Weighted-average fair value of options granted (in dollars per share) | $ 7.77 | $ 9.27 | $ 8.32 |
Minimum | |||
Black-Scholes option valuation model, assumptions | |||
Expected term of options | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years |
Weighted-average fair value of options granted (in dollars per share) | $ 7.40 | $ 5.97 | $ 6.20 |
Commitments and Contingencies -
Commitments and Contingencies - Future maturities of other long term obligations (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitment and Contingencies | |
2024 | $ 6,140,479 |
2025 | 1,397,097 |
2026 | 5,898,212 |
2027 | 437,223 |
2028 | 3,803,535 |
Thereafter | 1,561,626 |
Total | 19,238,172 |
Long-term debt obligations | |
Commitment and Contingencies | |
2024 | 1,992,872 |
2025 | 9,425 |
2026 | 4,757,972 |
2027 | 8,423 |
2028 | 3,501,538 |
Thereafter | 1,504,992 |
Total | 11,775,222 |
Interest expense on long-term debt | |
Commitment and Contingencies | |
2024 | 712,442 |
2025 | 595,606 |
2026 | 595,205 |
2027 | 295,379 |
2028 | 294,636 |
Thereafter | 38,842 |
Total | 2,532,110 |
Finance lease obligations | |
Commitment and Contingencies | |
2024 | 31,104 |
Total | 31,104 |
Interest Expense [Member] | |
Commitment and Contingencies | |
2024 | 1,043 |
Total | 1,043 |
Other long-term obligations | |
Commitment and Contingencies | |
2024 | 2,026,120 |
2025 | 739,613 |
2026 | 524,473 |
2027 | 125,084 |
Total | 3,415,290 |
Operating lease obligations | |
Commitment and Contingencies | |
2024 | 41,709 |
2025 | 26,417 |
2026 | 15,898 |
2027 | 8,337 |
2028 | 7,361 |
Thereafter | 17,792 |
Total | 117,514 |
Purchase obligations | |
Commitment and Contingencies | |
2024 | 1,335,189 |
2025 | 26,036 |
2026 | 4,664 |
Total | $ 1,365,889 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) | 12 Months Ended | |||||
Sep. 20, 2022 | Sep. 23, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies | ||||||
Contractual obligation | $ 19,238,172,000 | |||||
Unrecognized tax benefits | $ 202,466,000 | $ 204,378,000 | $ 198,511,000 | $ 188,141,000 | ||
Maximum | ||||||
Commitments and Contingencies | ||||||
Term of programming contracts | 10 years | |||||
Minimum | ||||||
Commitments and Contingencies | ||||||
Term of programming contracts | 1 year | |||||
Dish Network | ||||||
Commitments and Contingencies | ||||||
Payment to acquire certain wireless licenses and related assets | $ 30,000,000,000 | |||||
Dish Network | Spectrum Investments | ||||||
Commitments and Contingencies | ||||||
5G Network deployment | 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% | |||||
Bidding Credit | $ 3,300,000,000 | |||||
Loss Contingency Recovery Amount | 10,000,000,000 | |||||
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 | |||||
ClearPlay, Inc. | ||||||
Commitments and Contingencies | ||||||
Loss contingency | 469,000,000 | |||||
TQ Delta LLC | ||||||
Commitments and Contingencies | ||||||
Loss contingency | 251,000,000 | |||||
Realtime Adaptive Streaming Litigation | ||||||
Commitments and Contingencies | ||||||
Attorney fees awarded | $ 3,900,000 | |||||
Interest Expense [Member] | ||||||
Commitments and Contingencies | ||||||
Contractual obligation | $ 1,043,000 |
Financial Information for Sub_2
Financial Information for Subsidiary Guarantors (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | May 24, 2021 | Jul. 01, 2020 | Jun. 13, 2016 | Nov. 20, 2014 |
Assets | $ 11,131,790 | $ 11,243,381 | ||||
Unrestricted Subsidiaries | ||||||
Assets | $ 0 | |||||
5% Senior Notes due 2023 | ||||||
Interest rate (as a percent) | 5% | |||||
5 7/8% Senior Notes due 2024 | ||||||
Interest rate (as a percent) | 5.875% | 5.875% | ||||
7 3/4% Senior Notes due 2026 | ||||||
Interest rate (as a percent) | 7.75% | 7.75% | ||||
7 3/8% Senior Notes due 2028 | ||||||
Interest rate (as a percent) | 7.375% | 7.375% | ||||
5 1/8% Senior Notes due 2029 | ||||||
Interest rate (as a percent) | 5.125% | 5.125% |
Disaggregation of Revenue - Rev
Disaggregation of Revenue - Revenue from external customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue | |||
Revenue | $ 11,474,225 | $ 12,378,208 | $ 12,761,863 |
Pay-TV subscriber and related revenue | |||
Disaggregation of Revenue | |||
Revenue | 11,320,526 | 12,281,346 | 12,661,766 |
Equipment sales and other revenue | |||
Disaggregation of Revenue | |||
Revenue | $ 153,699 | $ 96,862 | $ 100,097 |
Revenue Recognition - Contract
Revenue Recognition - Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 40,642 | $ 32,861 | $ 43,233 |
Current period provision for expected credit losses | 56,047 | 75,245 | 48,150 |
Write-offs charged against allowance | (61,805) | (67,464) | (58,522) |
Balance at end of period | $ 34,884 | $ 40,642 | $ 32,861 |
Remaining performance obligations | true |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue Recognition | ||
Contract liabilities | $ 427,319 | $ 481,220 |
Contract liability recorded as customer contract revenue | $ 478,000 |
Revenue Recognition - Contrac_2
Revenue Recognition - Contract Acquisition Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition | |||
Balance at beginning of period | $ 230,146 | $ 298,112 | $ 338,893 |
Additions | 71,931 | 86,740 | 116,922 |
Amortization expense | (126,392) | (154,706) | (157,703) |
Balance at end of period | $ 175,685 | $ 230,146 | $ 298,112 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Data (Unaudited) | |||||||||||
Total revenue | $ 2,793,268 | $ 2,783,387 | $ 2,951,159 | $ 2,946,411 | $ 3,075,468 | $ 3,048,315 | $ 3,121,014 | $ 3,133,411 | $ 11,474,225 | $ 12,378,208 | $ 12,761,863 |
Operating income (loss) | 677,789 | 582,280 | 684,470 | 652,899 | 717,386 | 622,781 | 757,713 | 724,776 | $ 2,597,438 | $ 2,822,656 | $ 2,939,450 |
Net income (loss) | $ 464,954 | $ 388,754 | $ 457,638 | $ 433,283 | $ 474,817 | $ 408,337 | $ 483,180 | $ 444,411 |
Related Party Transactions - DI
Related Party Transactions - DISH Network (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Feb. 11, 2022 USD ($) | Feb. 28, 2018 item | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) tranche | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2009 item | Nov. 26, 2021 | Dec. 31, 2008 item | |
Related Party Transaction [Line Items] | |||||||||
Selling, General and Administrative Expense | $ 1,375,908 | $ 1,593,723 | $ 1,442,897 | ||||||
Depreciation and amortization | 315,660 | 354,361 | 439,004 | ||||||
Interest expense, net of amounts capitalized | 753,162 | 871,530 | 683,803 | ||||||
Net book value of asset | 3,630 | ||||||||
Interest income | 318,050 | 415,188 | |||||||
Aggregate principal amount | 7,495,755 | 7,160,116 | |||||||
Interest receivable - DISH Network - PIK | 37,000 | 37,000 | |||||||
Advanced an additional amount | $ 1,500,000 | ||||||||
Interest receivable - DISH Network | 17,761 | ||||||||
Interest receivable - DISH Network - Paid in kind | $ 19,322 | 36,912 | |||||||
Deferred taxes on sale of assets to DISH Network, net | 16,937 | ||||||||
5 1/4% Senior Secured Notes due 2026 | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest rate (as a percent) | 5.25% | 5.25% | |||||||
Term of debt instrument | 36 months | ||||||||
5 3/4% Senior Secured Notes due 2028 | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest rate (as a percent) | 5.75% | 5.75% | |||||||
Term of debt instrument | 36 months | ||||||||
Nimiq 5 Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Agreement Renewal Option Term | 1 year | ||||||||
Depreciation and amortization | $ 34,000 | 34,000 | 34,000 | ||||||
Interest expense, net of amounts capitalized | 5,000 | 8,000 | 12,000 | ||||||
TT&C Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Purchase of renewal of agreement | 1 year | ||||||||
Office Space from DISH Network | |||||||||
Related Party Transaction [Line Items] | |||||||||
Expenses associated with services | $ 9,000 | 11,000 | 8,000 | ||||||
EchoStar | Telesat Transponder Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Agreement term with third party | 15 years | ||||||||
Number of DBS transponders available to receive services | item | 32 | ||||||||
EchoStar | DISH Nimiq 5 Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of DBS transponders currently used | item | 32 | ||||||||
EchoStar | QuetzSat-1 Lease Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of DBS transponders currently used | item | 24 | ||||||||
EchoStar | TT&C Agreement | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of automatic renewal period | item | 4 | ||||||||
Notice period for termination of agreement | 12 months | ||||||||
Dish Network | Minimum | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest payment due | 50% | ||||||||
Dish Network | Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Satellite and transmission expenses | $ 206,000 | 194,000 | 219,000 | ||||||
Term of debt instrument | 2 years | ||||||||
Paid in kind Interest rate | 0.75% | ||||||||
Number of tranches | tranche | 2 | ||||||||
Interest income | $ 441,000 | 415,000 | |||||||
Aggregate principal amount | 5,250,000 | ||||||||
Advanced an additional amount | $ 1,500,000 | ||||||||
Percent of loan repayable | 100% | ||||||||
Fixed rate | 0.25% | ||||||||
Sale of Assets | $ 60,000 | 60,000 | |||||||
Deferred taxes on sale of assets to DISH Network, net | $ 17,000 | ||||||||
Dish Network | Related Party | 5 1/4% Senior Secured Notes due 2026 | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest rate (as a percent) | 5.25% | ||||||||
Dish Network | Related Party | 5 3/4% Senior Secured Notes due 2028 | |||||||||
Related Party Transaction [Line Items] | |||||||||
Interest rate (as a percent) | 5.75% | ||||||||
Dish Network | Broadband, Wireless and Other Segments | Related Party | |||||||||
Related Party Transaction [Line Items] | |||||||||
Expenses associated with services | $ 115,000 | $ 116,000 | $ 91,000 |
Related Party Transactions - Na
Related Party Transactions - NagraStar and Dish Mexico (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 28, 2017 | |
Related Party Transaction [Line Items] | ||||
Amounts payable to NagraStar | $ 248,640 | $ 385,899 | ||
NagraStar | ||||
Related Party Transaction [Line Items] | ||||
Interest on equity method investment | 50% | 50% | ||
NagraStar | Related Party | ||||
Related Party Transaction [Line Items] | ||||
Purchases from NagraStar | $ 37,068 | 43,416 | $ 45,944 | |
Amounts payable to NagraStar | 9,821 | 7,422 | ||
Commitments to NagraStar | $ 1,727 | $ 3,272 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Billions | Jan. 10, 2024 USD ($) item | Jan. 16, 2024 | Dec. 31, 2023 | May 24, 2021 | Jul. 01, 2020 | Jun. 13, 2016 | Nov. 20, 2014 |
5 7/8% Senior Notes due 2024 | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 5.875% | 5.875% | |||||
5 7/8% Senior Notes due 2024 | D I S H D B S Corporation | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 5.875% | ||||||
7 3/4% Senior Notes due 2026 | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 7.75% | 7.75% | |||||
7 3/4% Senior Notes due 2026 | D I S H D B S Corporation | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 7.75% | ||||||
7 3/8% Senior Notes due 2028 | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 7.375% | 7.375% | |||||
7 3/8% Senior Notes due 2028 | D I S H D B S Corporation | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 7.375% | ||||||
5 1/8% Senior Notes due 2029 | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 5.125% | 5.125% | |||||
5 1/8% Senior Notes due 2029 | D I S H D B S Corporation | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 5.125% | ||||||
Subsequent event | Intercompany Loan [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from Related Party Debt | $ | $ 4.7 | ||||||
Subsequent event | 5 7/8% Senior Notes due 2024 | D I S H D B S Corporation | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 5.875% | ||||||
Subsequent event | 7 3/4% Senior Notes due 2026 | D I S H D B S Corporation | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 7.75% | ||||||
Subsequent event | 7 3/8% Senior Notes due 2028 | D I S H D B S Corporation | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 7.375% | ||||||
Subsequent event | 5 1/8% Senior Notes due 2029 | D I S H D B S Corporation | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate (as a percent) | 5.125% | ||||||
DISH Network L.L.C. | Subsequent event | |||||||
Subsequent Event [Line Items] | |||||||
Number of Dish TV Subscribers Held | item | 3,000,000 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |