Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020 | |
Document and Entity Information | |
Entity Registrant Name | DISH DBS Corporation |
Entity Central Index Key | 0001042642 |
Document Type | S-4 |
Amendment Flag | false |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 17,426 | $ 129,498 |
Marketable investment securities | 149,740 | |
Trade accounts receivable, net of allowance for credit losses and allowance for doubtful accounts of $41,188 and $19,280, respectively | 568,679 | 623,602 |
Inventory | 321,983 | 290,697 |
Other current assets | 164,767 | 234,054 |
Total current assets | 1,072,855 | 1,427,591 |
Noncurrent Assets: | ||
Restricted cash, cash equivalents and marketable investment securities | 61,067 | 67,597 |
Property and equipment, net | 1,751,573 | 1,377,949 |
FCC authorizations | 611,794 | 637,346 |
Other investment securities | 106,874 | 108,308 |
Operating lease assets | 553,576 | |
Other noncurrent assets, net | 228,820 | 286,753 |
Total noncurrent assets | 3,313,704 | 2,477,953 |
Total assets | 4,386,559 | 3,905,544 |
Current Liabilities: | ||
Trade accounts payable | 266,417 | 217,268 |
Advances from affiliates | 82,415 | |
Deferred revenue and other | 674,079 | 644,920 |
Accrued programming | 1,308,531 | 1,474,207 |
Accrued interest | 189,039 | 222,996 |
Other accrued expenses | 918,333 | 756,534 |
Current portion of long-term debt and finance lease obligations | 1,151,108 | 1,338,527 |
Total current liabilities | 4,589,922 | 4,654,452 |
Long-Term Obligations, Net of Current Portion: | ||
Long-term debt and finance lease obligations, net of current portion | 9,671,255 | 10,632,960 |
Deferred tax liabilities | 501,857 | 461,452 |
Operating lease liabilities | 350,155 | |
Long-term deferred revenue and other long-term liabilities | 207,992 | 198,840 |
Total long-term obligations, net of current portion | 10,731,259 | 11,293,252 |
Total liabilities | 15,321,181 | 15,947,704 |
Commitments and Contingencies (Note 12) | ||
Stockholder's Equity (Deficit): | ||
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | ||
Additional paid-in capital | 1,432,736 | 1,152,369 |
Accumulated other comprehensive income (loss) | (449) | (376) |
Accumulated earnings (deficit) | (12,366,909) | (13,194,440) |
Total DISH DBS stockholder's equity (deficit) | (10,934,622) | (12,042,447) |
Noncontrolling interests | 287 | |
Total stockholder's equity (deficit) | (10,934,622) | (12,042,160) |
Total liabilities and stockholder's equity (deficit) | $ 4,386,559 | $ 3,905,544 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | |||
Allowance for doubtful accounts on trade accounts receivable | $ 41,188 | $ 19,280 | $ 16,956 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Common stock, shares issued | 1,015 | 1,015 | 1,015 |
Common stock, shares outstanding | 1,015 | 1,015 | 1,015 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Total revenue | $ 12,622,893 | $ 13,362,139 | $ 14,007,511 |
Costs and Expenses (exclusive of depreciation shown separately below - Note 6): | |||
Subscriber-related expenses | 7,768,732 | 8,392,150 | 8,692,676 |
Satellite and transmission expenses | 555,803 | 637,160 | 717,231 |
Cost of sales - equipment and other | 172,700 | 143,671 | 95,116 |
Subscriber acquisition costs: | |||
Cost of sales - subscriber promotion subsidies | 29,592 | 50,253 | 72,955 |
Other subscriber acquisition costs | 444,993 | 292,824 | 563,952 |
Subscriber acquisition advertising | 519,938 | 426,230 | 548,304 |
Total subscriber acquisition costs | 994,523 | 769,307 | 1,185,211 |
General and administrative expenses | 732,589 | 692,881 | 669,934 |
Litigation expense (Note 12) | 295,695 | ||
Depreciation and amortization (Note 6) | 577,348 | 660,460 | 741,772 |
Total costs and expenses | 10,801,695 | 11,295,629 | 12,397,635 |
Operating income (loss) | 1,821,198 | 2,066,510 | 1,609,876 |
Other Income (Expense): | |||
Interest income | 30,041 | 8,923 | 9,855 |
Interest expense, net of amounts capitalized | (756,690) | (792,436) | (865,181) |
Other, net | 7,609 | 8,994 | 88,511 |
Total other income (expense) | (719,040) | (774,519) | (766,815) |
Income (loss) before income taxes | 1,102,158 | 1,291,991 | 843,061 |
Income tax (provision) benefit, net | (274,751) | (318,305) | (117,616) |
Net income (loss) | 827,407 | 973,686 | 725,445 |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | (124) | 2,399 | 1,919 |
Net income (loss) attributable to DISH DBS | 827,531 | 971,287 | 723,526 |
Comprehensive Income (Loss): | |||
Net income (loss) | 827,407 | 973,686 | 725,445 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (133) | (1,343) | 1,027 |
Unrealized holding gains (losses) on available-for-sale securities | 81 | 69 | (33) |
Deferred income tax (expense) benefit, net | (21) | (37) | 57 |
Total other comprehensive income (loss), net of tax | (73) | (1,311) | 1,051 |
Comprehensive income (loss) | 827,334 | 972,375 | 726,496 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | (124) | 2,399 | 1,919 |
Comprehensive income (loss) attributable to DISH DBS | 827,458 | 969,976 | 724,577 |
Subscriber-related | |||
Revenue: | |||
Total revenue | 12,436,637 | 13,197,994 | 13,877,196 |
Equipment sales and other revenue | |||
Revenue: | |||
Total revenue | $ 186,256 | $ 164,145 | $ 130,315 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) - USD ($) $ in Thousands | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Noncontrolling Interest | Total |
Balance at Dec. 31, 2016 | $ 1,097,606 | $ (116) | $ (14,891,573) | $ 1,933 | $ (13,792,150) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 29,941 | 29,941 | |||
Change in unrealized holding gains (losses) on available-for-sale securities, net | (33) | (33) | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | 57 | 57 | |||
Foreign currency translation | 1,027 | 1,027 | |||
Payments made to parent of transferred businesses | (7,372) | 274 | (7,098) | ||
Net income (loss) attributable to noncontrolling interests | 1,919 | 1,919 | |||
Net income (loss) attributable to DISH DBS | 723,526 | 723,526 | |||
Other | (3,327) | (525) | (3,852) | ||
Balance at Dec. 31, 2017 | 1,116,848 | 935 | (14,168,047) | 3,601 | (13,046,663) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 35,521 | 35,521 | |||
Change in unrealized holding gains (losses) on available-for-sale securities, net | 69 | 69 | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (37) | (37) | |||
Foreign currency translation | (1,343) | (1,343) | |||
ASU 2014-09 cumulative catch-up adjustment | 2,320 | 2,320 | |||
Net income (loss) attributable to noncontrolling interests | 2,399 | 2,399 | |||
Net income (loss) attributable to DISH DBS | 971,287 | 971,287 | |||
Other | (5,713) | (5,713) | |||
Balance at Dec. 31, 2018 | 1,152,369 | (376) | (13,194,440) | 287 | (12,042,160) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 11,003 | 11,003 | |||
Change in unrealized holding gains (losses) on available-for-sale securities, net | 152 | 152 | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (38) | (38) | |||
Foreign currency translation | 47 | 47 | |||
Net income (loss) attributable to noncontrolling interests | (124) | (124) | |||
Net income (loss) attributable to DISH DBS | 177,760 | 177,760 | |||
Balance at Mar. 31, 2019 | 1,163,372 | (215) | (13,016,680) | 163 | (11,853,360) |
Balance at Dec. 31, 2018 | 1,152,369 | (376) | (13,194,440) | 287 | (12,042,160) |
Increase (Decrease) in Stockholder's Equity | |||||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (65) | ||||
Net income (loss) attributable to DISH DBS | 363,128 | ||||
Balance at Jun. 30, 2019 | 1,442,337 | (2) | (12,831,312) | (11,388,977) | |
Balance at Dec. 31, 2018 | 1,152,369 | (376) | (13,194,440) | 287 | (12,042,160) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 13,853 | 13,853 | |||
Change in unrealized holding gains (losses) on available-for-sale securities, net | 81 | 81 | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (21) | (21) | |||
Foreign currency translation | (133) | (133) | |||
Satellite and Spectrum Transaction, net of deferred taxes | 267,437 | (163) | 267,274 | ||
Net income (loss) attributable to noncontrolling interests | (124) | (124) | |||
Net income (loss) attributable to DISH DBS | 827,531 | 827,531 | |||
Other | (923) | (923) | |||
Balance at Dec. 31, 2019 | 1,432,736 | (449) | (12,366,909) | (10,934,622) | |
Balance at Mar. 31, 2019 | 1,163,372 | (215) | (13,016,680) | 163 | (11,853,360) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 11,528 | 11,528 | |||
Change in unrealized holding gains (losses) on available-for-sale securities, net | 102 | 102 | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (27) | (27) | |||
Foreign currency translation | 138 | 138 | |||
Satellite and Spectrum Transaction, net of deferred taxes | 267,437 | $ (163) | 267,274 | ||
Net income (loss) attributable to DISH DBS | 185,368 | 185,368 | |||
Balance at Jun. 30, 2019 | 1,442,337 | (2) | (12,831,312) | (11,388,977) | |
Balance at Dec. 31, 2019 | 1,432,736 | (449) | (12,366,909) | (10,934,622) | |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 6,953 | 6,953 | |||
Change in unrealized holding gains (losses) on available-for-sale securities, net | (11) | (11) | |||
Foreign currency translation | (352) | (352) | |||
Net income (loss) attributable to DISH DBS | 244,153 | 244,153 | |||
Balance at Mar. 31, 2020 | 1,439,689 | (812) | (12,122,756) | (10,683,879) | |
Balance at Dec. 31, 2019 | 1,432,736 | (449) | (12,366,909) | (10,934,622) | |
Increase (Decrease) in Stockholder's Equity | |||||
Net income (loss) attributable to DISH DBS | 619,133 | ||||
Balance at Jun. 30, 2020 | 1,443,022 | (771) | (11,747,776) | (10,305,525) | |
Balance at Mar. 31, 2020 | 1,439,689 | (812) | (12,122,756) | (10,683,879) | |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 3,333 | 3,333 | |||
Change in unrealized holding gains (losses) on available-for-sale securities, net | 11 | 11 | |||
Foreign currency translation | 30 | 30 | |||
Net income (loss) attributable to DISH DBS | 374,980 | 374,980 | |||
Balance at Jun. 30, 2020 | $ 1,443,022 | $ (771) | $ (11,747,776) | $ (10,305,525) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) | |
Satellite and Spectrum Transaction, deferred taxes | $ 29,075 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities: | |||
Net income (loss) | $ 827,407 | $ 973,686 | $ 725,445 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 577,348 | 660,460 | 741,772 |
Realized and unrealized losses (gains) on investments | (3,119) | (9,056) | (85,550) |
Non-cash, stock-based compensation | 13,853 | 35,521 | 29,941 |
Deferred tax expense (benefit) | 11,310 | (24,477) | (297,012) |
Other, net | 71,406 | (67,672) | (3,431) |
Changes in current assets and current liabilities: | |||
Trade accounts receivable | 52,599 | 2,137 | 114,962 |
Allowance for doubtful accounts | 2,324 | 1,900 | (2,384) |
Inventory | (78,216) | 15,754 | 37,028 |
Other current assets | 70,449 | (39,822) | (76,735) |
Trade accounts payable | 49,149 | (145,891) | (142,803) |
Deferred revenue and other | 29,159 | (93,093) | (57,802) |
Accrued programming and other accrued expenses | (238,969) | (111,987) | 303,901 |
Net cash flows from operating activities | 1,384,700 | 1,197,460 | 1,287,332 |
Cash Flows From Investing Activities: | |||
(Purchases) Sales and maturities of marketable investment securities, net | 153,422 | 41,155 | (88,346) |
Purchases of property and equipment | (392,690) | (348,023) | (419,445) |
Purchases of strategic investments | (90,381) | ||
Other, net | 73,352 | 24,816 | 19,996 |
Net cash flows from investing activities | (165,916) | (282,052) | (578,176) |
Cash Flows From Financing Activities: | |||
Redemption and repurchases of senior notes | (1,317,372) | (1,108,489) | (1,074,139) |
Payments made to parent of transferred businesses | (7,098) | ||
Advances from affiliates | 82,415 | ||
Repayment of long-term debt and finance lease obligations | (35,356) | (38,639) | (39,118) |
Other, net | (444) | (3,270) | (1,994) |
Net cash flows from financing activities | (1,270,757) | (1,150,398) | (1,122,349) |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | (51,973) | (234,990) | (413,193) |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4) | 130,076 | 365,066 | 778,259 |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4) | $ 78,103 | $ 130,076 | $ 365,066 |
Organization and Business Activ
Organization and Business Activities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Organization and Business Activities | ||
Organization and Business Activities | 1. Organization and Business Activities Principal Business DISH DBS Corporation (which together with its subsidiaries is referred to as “DISH DBS,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context) is a holding company and an indirect, wholly-owned subsidiary of DISH Network Corporation (“DISH Network”). DISH DBS was formed under Colorado law in January 1996 and its common stock is held by DISH Orbital Corporation (“DOC”), a direct subsidiary of DISH Network. Our subsidiaries operate one business segment. Pay-TV We offer pay-TV services under the DISH ® ® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, FCC licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, customer service facilities, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear streaming OTT Internet-based domestic, international and Latino video programming services (“SLING TV”). As of June 30, 2020, we had | 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 We offer pay-TV services under the DISH ® brand and the Sling ® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, Federal Communications Commission (“FCC”) licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, customer service facilities, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The Sling branded pay-TV services consist of, among other things, multichannel, live-linear streaming over-the-top (“OTT”) Internet-based domestic, international and Latino video programming services (“Sling TV”). As of December 31, 2019, we had 11.986 million Pay-TV subscribers in the United States, including 9.394 million DISH TV subscribers and 2.592 million Sling TV subscribers. Master Transaction Agreement On May 19, 2019, DISH Network entered into a Master Transaction Agreement with EchoStar (the “Master Transaction Agreement”) pursuant to which, on September 10, 2019, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. As a result of the Master Transaction Agreement, certain agreements that we had with EchoStar have been transferred to DISH Network. See Note 1 “ Recent Developments ” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies | ||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. Certain prior period amounts have been reclassified to conform to the current period presentation. Principles of Consolidation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments and recorded at fair value with changes recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for credit losses, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. Marketable Investment Securities All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. Historically, we reported temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. Subsequent to the adoption of ASU 2016-13 Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) during the first quarter of 2020, we report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We evaluate our debt investment portfolio to determine whether declines in the fair value of these securities are related to credit loss. Management estimates credit losses on marketable debt securities utilizing a credit loss impairment model on a quarterly basis. We estimate the expected credit losses, measured over the contractual life of marketable debt securities considering relevant issuer specific factors, including, but not limited to, a decrease in credit ratings or an entities ability to pay. Trade Accounts Receivable Prior to January 1, 2020, management estimated the amount of allowance for doubtful accounts for potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. Subsequent to January 1, 2020 due to the adoption of ASU 2016-13, trade accounts receivable are recorded at amortized cost less an allowance for expected credit losses that are not expected to be recovered. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for expected credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Management estimates credit losses on financial assets, including our trade accounts receivable, utilizing a current expected credit loss impairment model. We estimate the expected credit losses, measured over the contractual life of an asset considering relevant historical loss information, credit quality of the customer base, current economic conditions and forecasts of future economic conditions. In determining the allowance for credit losses, management groups similar types of financial assets with consistent risk characteristics. Pools identified by management include but are not limited to residential customers, commercial customers and advertising services. The risk characteristics of the financial asset portfolios are monitored by management and reviewed periodically. The forecasts for future economic conditions are based on several factors including, but not limited to, changes in the unemployment rate, external economic forecasts and current collection rates. Our estimates of the allowance for credit losses may not be indicative of our actual credit losses requiring additional charges to be incurred to reflect the actual amount collected. Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: ● Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ● Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of June 30, 2020 and December 31, 2019, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses or net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 8 for the fair value of our long-term debt. Revenue Recognition Our revenue is primarily derived from Pay-TV programming services that we provide to our subscribers. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 11 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year . Revenues arising from our in-home services that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed. For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606, Revenue from Contracts with Customers Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month. Contract Balances The timing of revenue recognition generally differs from the timing of invoicing to customers. When revenue is recognized prior to invoicing, we record a receivable. When revenue is recognized subsequent to invoicing, we record deferred revenue. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts as we apply a practical expedient when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. See Note 12 for further information, including balance and activity detail about our allowance for credit losses and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the three months ended June 30, 2020 and 2019, we capitalized million for the three months ended June 30, 2020 and 2019, respectively. During the six months ended June 30, 2020 and 2019, we capitalized million for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020 and December 31, 2019, we had a total of million, respectively, capitalized on our Condensed Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 12 years , some of which include renewal options , and some of which include options to terminate the leases within one year . We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our Condensed Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Condensed Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 7 for further information on our lease expenses. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 13 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into a Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. See Note 13 “ Related Party Transactions – Master Transaction Agreement” We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The revenue related to equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. Impact of Adoption of ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (“ASU 2016-02”) and has modified the standard thereafter. We adopted ASU 2016-02, as modified, on January 1, 2019 using the modified retrospective method. Under the modified retrospective method, we applied the new guidance to all leases that commenced before and were existing as of January 1, 2019. The adoption of ASU 2016-02 had no impact on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating, investing and financing activities on our Condensed Consolidated Statements of Cash Flows. Research and Development Research and development costs are expensed as incurred. Research and development costs totaled Research and development costs totaled | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments and recorded at fair value with changes recognized in “Other, net” within “Other Income (Expense)” on our 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. On February 28, 2017, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Share Exchange Agreement (the “Share Exchange Agreement”) that was previously entered into on January 31, 2017 (the “Share Exchange”). Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses, consisting primarily of the businesses that design, develop and distribute digital set-top boxes, provide satellite uplink services and develop and support streaming video technology, as well as certain investments in joint ventures, spectrum licenses, real estate properties and EchoStar’s In connection with the Share Exchange, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. See Note 17 for further information. As the Share Exchange was a transaction between entities that are under common control, accounting rules require that our Consolidated Financial Statements include the results of the Transferred Businesses for all periods presented, including periods prior to the completion of the Share Exchange. We initially recorded the Transferred Businesses at EchoStar’s historical cost basis. The difference between the historical cost basis of the Transferred Businesses and the net carrying value of the Tracking Stock was recorded in “Additional paid-in capital” on our Consolidated Balance Sheets. The results of the Transferred Businesses were prepared from separate records maintained by EchoStar for the periods prior to March 1, 2017, and may not necessarily be indicative of the conditions that would have existed, or the results of operations, if the Transferred Businesses had been operated on a combined basis with our subsidiaries. Our financial statements include the results of the Transferred Businesses as described above for all periods presented, including periods prior to the completion of the Share Exchange. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, , finance leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. Cash and Cash Equivalents We consider all liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents as of December 31, 2019 and 2018 may consist of money market funds, government bonds, corporate notes and commercial paper. The cost of these investments approximates their fair value. Marketable Investment Securities Historically, we classified all marketable investment securities as available-for-sale, except for investments which were accounted for as trading securities, and adjusted the carrying amount of our available-for-sale securities to fair value and reported the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Consolidated Balance Sheets. Our trading securities were 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). Subsequent to the adoption of ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) during the first quarter 2018, 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. We adjust the carrying amount of our debt securities to fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Consolidated Balance Sheets. Declines in the fair value of a marketable debt security which are determined to be “other-than-temporary” are recognized on our Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment. We evaluate our debt investment portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other-than-temporary. This quarterly evaluation consists of reviewing, among other things: ● the fair value of our debt investments compared to the carrying amount, ● the historical volatility of the price of each security, and ● any market and company specific factors related to each security. Declines in the fair value of debt investments below cost basis are generally accounted for as follows: Length of Time Investment Has Been In a Continuous Treatment of the Decline in Value Loss Position (absent specific factors to the contrary) Less than six months Generally, considered temporary. Six to nine months Evaluated on a case by case basis to determine whether any company or market-specific factors exist indicating that such decline is other-than-temporary. Greater than nine months Generally, considered other-than-temporary. The decline in value is recorded as a charge to earnings. Additionally, in situations where the fair value of a debt security is below its carrying amount, we consider the decline to be other-than-temporary and record a charge to earnings if any of the following factors apply: ● we have the intent to sell the security, ● it is more likely than not that we will be required to sell the security before maturity or recovery, or ● we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. In general, we use the first in, first out method to determine the cost basis on sales of marketable investment securities. Trade Accounts Receivable Management estimates the amount of required allowances for the potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. However, past experience may not be indicative of future collections and therefore additional charges could be incurred in the future to reflect differences between estimated and actual collections. Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The cost of manufactured inventory includes the cost of materials, labor, freight-in, royalties and manufacturing overhead. Property and Equipment Property and equipment are stated at amortized cost less impairment losses, if any. Our set-top boxes are generally capitalized when they are installed in customers’ homes. The costs of satellites under construction, including interest and certain amounts prepaid under our satellite service agreements, are capitalized during the construction phase, assuming the eventual successful launch and in-orbit operation of the satellite. If a satellite were to fail during launch or while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from two to 40 years . Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized. Costs related to the procurement and development of software for internal-use are capitalized and amortized using the straight-line method over the estimated useful life of the software. Impairment of Long-Lived Assets We review our long-lived assets and identifiable finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For assets which are held and used in operations, the asset would be impaired if the carrying amount of the asset (or asset group) exceeded its undiscounted future net cash flows. Once an impairment is determined, the actual impairment recognized is the difference between the carrying amount and the fair value as estimated using one of the following approaches: income, cost and/or market. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The carrying amount of a long-lived asset or asset group is considered impaired when the anticipated undiscounted cash flows from such asset or asset group is less than its carrying amount. In that event, a loss is recorded in “Impairment of long-lived assets” on our Consolidated Statements of Operations and Comprehensive Income (Loss) based on the amount by which the carrying amount exceeds the fair value of the long-lived asset or asset group. Fair value, using the income approach, is determined primarily using a discounted cash flow model that uses the estimated cash flows associated with the asset or asset group under review, discounted at a rate commensurate with the risk involved. Fair value, utilizing the cost approach, is determined based on the replacement cost of the asset reduced for, among other things, depreciation and obsolescence. Fair value, utilizing the market approach, benchmarks the fair value against the carrying amount. See Note 6 for further information. DBS Satellites . We currently evaluate our DBS satellite fleet for impairment as one asset group whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2019. 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. Intangible assets that have finite lives are amortized over their estimated useful lives and tested for impairment as described above for long-lived assets. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our 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 2019, 2018 and 2017, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS licenses exceeds its 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. MVDDS Licenses. During 2018 and 2017, our multichannel video distribution and data service (“MVDDS”) wireless spectrum licenses were assessed as a single unit of accounting. For 2018 and 2017, management assessed these licenses quantitatively. Our quantitative assessment in each year for these licenses consisted of a market approach. The market approach uses prior transactions including auctions to estimate the fair value of the licenses. In conducting these quantitative assessments, we determined that the fair value of these licenses exceeded their carrying amount. Business Combinations When we acquire a business, 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 most identifiable assets, liabilities, noncontrolling interests and goodwill acquired to be recorded at fair value. 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 are recorded on a straight-line basis over an average finite useful life primarily ranging from approximately five to 20 years or in relation to the estimated discounted cash flows over the life of the intangible asset. Long-Term Deferred Revenue and Other Long-Term Liabilities Certain programmers provide us up-front payments. Such amounts are deferred and recognized as reductions to “Subscriber-related expenses” on a straight-line basis over the relevant remaining contract term (generally up to ten years ). The current and long-term portions of these deferred credits are recorded on our Consolidated Balance Sheets in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities,” respectively. Sales Taxes We account for sales taxes imposed on our goods and services on a net basis on our Consolidated Statements of Operations and Comprehensive Income (Loss). Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. Income Taxes We establish a provision for income taxes currently payable or receivable and for income tax amounts deferred to future periods. Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that exist between the book and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that such net deferred tax assets will not be realized. 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, 2019 and 2018, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 8 for the fair value of our long-term debt. Deferred Debt Issuance Costs Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 8 for further information. Revenue Recognition Our revenue is primarily derived from Pay-TV programming services that we provide to our subscribers. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 14 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year . Revenues arising from our in-home services that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed. For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606 (“ASC 606”) is one month and as a result the revenue recognized for these subscribers for a given month is equal to the amount billed in that month, except for certain nonrefundable upfront fees that are accounted for as material rights, as discussed above. Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month. Contract Balances The timing of revenue recognition generally differs from the timing of invoicing to customers. When revenue is recognized prior to invoicing, we record a receivable. When revenue is recognized subsequent to invoicing, we record deferred revenue. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts as we apply a practical expedient when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. See Note 15 for further information, including balance and activity detail about our allowance for doubtful accounts and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the years ended December 31, 2019 and 2018, we capitalized $207 million and $183 million, respectively, under these programs. The amortization expense related to these programs was $76 million and $28 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, we had a total of $300 million and $169 million capitalized on our Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Impact of Adoption of ASU 2014-09 On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 Revenue from Contracts with Customers We adopted ASU 2014-09, as modified, and now codified as ASC 606 and Accounting Standard Codification Topic 340-40 (“ASC 340-40”) on January 1, 2018, using the modified retrospective method. Under that method, we applied the new guidance to all open contracts existing as of January 1, 2018, recognizing in beginning retained earnings an adjustment for the cumulative effect of the change, which was Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to twelve years , some of which include renewal options , and some of which include options to terminate the leases within one year . We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our 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. When our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 17 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into the Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. Recent Developments” December 31 We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. Impact of Adoption of ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (“ASU 2016-02”) and has modified the standard thereafter. We adopted ASU 2016-02, as modified, on January 1, 2019 using the modified retrospective method. Under the modified retrospective method, we applied the new guidance to all leases that commenced before and were existing as of January 1, 2019. The adoption of ASU 2016-02 had no impact on our Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating, investing and financing activities on our Consolidated Statements of Cash Flows. The adoption of ASU 2016-02 impacted our December 31, 2019 Consolidated Balance Sheets, including the reclassification of our deferred rent liabilities to an operating lease asset, as follows: Consolidated Balance Sheets DISH DBS (as would have been reported under previous standards) Impact of adopting ASU 2016-02 DISH DBS (as currently reported) (In thousands) As of December 31, 2019 Operating lease assets $ — $ 553,576 $ 553,576 Total assets $ 3,832,983 $ 553,576 $ 4,386,559 Other accrued expenses $ 715,361 $ 202,972 $ 918,333 Operating lease liabilities $ — $ 350,155 $ 350,155 Long-term deferred revenue and other long-term liabilities $ 207,543 $ 449 $ 207,992 Total liabilities $ 14,767,605 $ 553,576 $ 15,321,181 Total stockholder's equity (deficit) $ (10,934,622) $ — $ (10,934,622) Total liabilities and stockholder's equity (deficit) $ 3,832,983 $ 553,576 $ 4,386,559 Subscriber-Related Expenses The cost of television programming distribution rights is generally incurred on a per subscriber basis and various upfront carriage payments are recognized when the related programming is distributed to subscribers. Long-term flat rate programming contracts are 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. “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss) principally include programming expenses, costs for Pay-TV services |
Supplemental Data - Statements
Supplemental Data - Statements of Cash Flows | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 Six Months Ended June 30, 2020 2019 (In thousands) Cash paid for interest $ 329,923 $ 382,391 Cash received for interest 1,962 8,528 Cash paid for income taxes 3,205 8,845 Cash paid for income taxes to DISH Network 176,964 152,526 Capitalized interest — 440 Reclassification of a receivable from noncurrent to current — 138,210 Our parent, DISH Network, provides a centralized system for the management of our cash and marketable investment securities as it does for all of its subsidiaries to, among other reasons, maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our Condensed Consolidated Balance Sheets is a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Condensed Consolidated Balance Sheets and managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each period presented on our Condensed Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities. | 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, 2019 2018 2017 (In thousands) Cash paid for interest $ 765,510 $ 793,506 $ 878,772 Cash received for interest 30,041 6,043 9,855 Cash paid for income taxes 19,485 18,683 29,961 Cash paid for income taxes to DISH Network 245,028 302,329 408,265 Capitalized interest 440 1,071 481 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 is a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Consolidated Balance Sheets and managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each year presented on our Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities. |
Marketable Investment Securitie
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 June 30, December 31, 2020 2019 (In thousands) Marketable investment securities: Current marketable investment securities $ 31 $ — Restricted marketable investment securities (1) — 390 Total marketable investment securities 31 390 Restricted cash and cash equivalents (1) 61,349 60,677 Other investment securities: Other investment securities 96,886 106,874 Total other investment securities 96,886 106,874 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 158,266 $ 167,941 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets. Marketable Investment Securities Our marketable investment securities portfolio may consist of debt and equity instruments. All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information. Current Marketable Investment Securities Our current marketable investment securities portfolio can include investments in various debt instruments including, among others, commercial paper, corporate securities and United States treasury and/or agency securities. Commercial paper consists mainly of unsecured short-term promissory notes, issued primarily by corporations, with maturities ranging up to 365 days . Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months . U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies. Restricted Cash, Cash Equivalents and Marketable Investment Securities As of June 30, 2020 and December 31, 2019, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts. Other Investment Securities We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investment securities” on our Condensed Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and our equity securities are accounted for using the equity method of accounting or recorded at fair value. Certain of our equity method investments are detailed below. NagraStar L.L.C. As a result of the completion of the share exchange on February 28, 2017, we own a interest in NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Invidi Technologies Corporation . In November 2016, we, DIRECTV, LLC, a wholly-owned indirect subsidiary of AT&T Inc., and Cavendish Square Holding B.V., an affiliate of WPP plc, entered into a series of agreements to acquire Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. The transaction closed in January 2017. Our ability to realize value from our strategic investments in securities that are not publicly traded depends on the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them. Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of June 30, 2020 December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 63,344 $ 62,740 $ 604 $ — $ 60,677 $ 60,677 $ — $ — Debt securities (including restricted): U.S. Treasury and agency securities $ — $ — $ — $ — $ 390 $ 390 $ — $ — Commercial paper 31 — 31 — — — — — Corporate securities — — — — — — — — Other — — — — — — — — Total $ 31 $ — $ 31 $ — $ 390 $ 390 $ — $ — Gains and Losses on Sales and Changes in Carrying Amounts of Investments “Other, net” within “Other Income (Expense)” included on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, Other, net: 2020 2019 2020 2019 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ — $ 829 $ — $ 3,599 Costs related to early redemption of debt — — — (439) Equity in earnings of affiliates (399) 2,297 (121) 1,353 Other 247 5 914 51 Total $ (152) $ 3,131 $ 793 $ 4,564 | 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, 2019 2018 (In thousands) Marketable investment securities: Current marketable investment securities: Trading/equity $ — $ 2,370 Other — 147,370 Total current marketable investment securities — 149,740 Restricted marketable investment securities (1) 390 67,019 Total marketable investment securities 390 216,759 Restricted cash and cash equivalents (1) 60,677 578 Other investment securities: Other investment securities 106,874 108,308 Total other investment securities 106,874 108,308 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 167,941 $ 325,645 (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 various debt and equity instruments. All debt securities are classified as available-for-sale. Subsequent to the adoption of ASU 2016-01 during the first quarter 2018, 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). See Note 2 for further information. Current Marketable Investment Securities - Trading We had an investment in non-marketable preferred shares of a non-public company, which was received for no cash consideration and was previously accounted for as a cost method investment and included in “Other investment securities” on our Consolidated Balance Sheets. During the third quarter 2017, our non-marketable preferred shares converted into common shares in conjunction with the issuer’s initial public offering, and, accordingly, we classified the new equity securities as “Marketable investment securities” on our Consolidated Balance Sheets. Current Marketable Investment Securities - Other Our current other marketable investment securities portfolio can include investments in various debt instruments including, among others, commercial paper, corporate securities and United States treasury and/or agency securities. Commercial paper consists mainly of unsecured short-term, promissory notes issued primarily by corporations with maturities ranging up to 365 days . Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months . U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies. Restricted Cash, Cash Equivalents and Marketable Investment Securities As of December 31, 2019 and 2018, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts. Other Investment Securities We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investment securities” on our Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and our equity securities are accounted for using the equity method of accounting or recorded at fair value. Certain of our equity method investments are detailed below. NagraStar L.L.C. As a result of the completion of the Share Exchange on February 28, 2017, we own a interest in NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Invidi Technologies Corporation . In November 2016, we, DIRECTV, LLC, a wholly-owned indirect subsidiary of AT&T Inc., and Cavendish Square Holding B.V., an affiliate of WPP plc, entered into a series of agreements to acquire Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. The transaction closed in January 2017. Our ability to realize value from our strategic investments in securities that are not publicly traded depends on the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them, we will not be able to obtain fair value for them. Unrealized Gains (Losses) on Marketable Investment Securities As of December 31, 2019 and 2018, we had accumulated net unrealized losses of zero and less than $1 million, respectively. These amounts, net of related tax effect, were accumulated net unrealized losses of million, respectively. All of these amounts are included in “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit).” The components of our available-for-sale investments are summarized in the table below. As of December 31, 2019 2018 Marketable Marketable Investment Unrealized Investment Unrealized Securities Gains Losses Net Securities Gains Losses Net (In thousands) Debt securities (including restricted): U.S. Treasury and agency securities $ 390 $ — $ — $ — $ 66,823 $ 40 $ (19) $ 21 Commercial paper — — — — 45,938 — — — Corporate securities — — — — 100,662 11 (113) (102) Other — — — — 966 — — — Total $ 390 $ — $ — $ — $ 214,389 $ 51 $ (132) $ (81) As of December 31, 2019, restricted and non-restricted marketable investment securities included debt securities of less than $1 million with contractual maturities within one year. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity. Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of December 31, 2019 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 60,677 $ 60,677 $ — $ — $ 114,464 $ 12,493 $ 101,971 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 390 $ 390 $ — $ — $ 66,823 $ 66,823 $ — $ — Commercial paper — — — — 45,938 — 45,938 — Corporate securities — — — — 100,662 — 100,662 — Other — — — — 966 — 966 — Equity securities — — — — 2,370 2,370 — — Total $ 390 $ 390 $ — $ — $ 216,759 $ 69,193 $ 147,566 $ — During the years ended December 31, 2019 and 2018, we had no transfers in or out of Level 1 and Level 2 fair value measurements. Gains and Losses on Sales and Changes in Carrying Amounts of Investments “Other, net” within “Other Income (Expense)” included on our Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows: For the Years Ended December 31, Other, net: 2019 2018 2017 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ 3,119 $ 5,313 $ 87,020 Costs related to early redemption of debt — (3,261) (1,470) Gain (loss) on sale of subsidiary — 7,004 — Equity in earnings of affiliates 3,514 (2,110) 2,163 Other 976 2,048 798 Total $ 7,609 $ 8,994 $ 88,511 |
Inventory
Inventory | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Inventory | ||
Inventory | 5. Inventory Inventory consisted of the following: As of June 30, December 31, 2020 2019 (In thousands) Finished goods $ 249,605 $ 254,240 Work-in-process and service repairs 34,245 34,120 Raw materials 17,558 33,623 Total inventory $ 301,408 $ 321,983 | 5. Inventory Inventory consisted of the following: As of December 31, 2019 2018 (In thousands) Finished goods $ 254,240 $ 215,150 Work-in-process and service repairs 34,120 56,871 Raw materials 33,623 18,676 Total inventory $ 321,983 $ 290,697 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property and Equipment | |
Property and Equipment and Intangible Assets | 6. Property and Equipment and Intangible Assets Property and Equipment Property and equipment consisted of the following: Depreciable As of Life December 31, December 31, (In Years) 2019 2018 (In thousands) Equipment leased to customers 2 -5 $ 1,837,503 $ 1,980,808 EchoStar XV 15 277,658 277,658 EchoStar XVIII (1) 15 411,255 — Satellites acquired under finance lease agreements (2)(3) 15 398,107 499,819 Furniture, fixtures, equipment and other 2 -20 1,894,629 1,820,883 Buildings and improvements 5 -40 289,421 289,244 Land - 13,186 13,186 Construction in progress - 70,081 47,077 Total property and equipment 5,191,840 4,928,675 Accumulated depreciation (3,440,267) (3,550,726) Property and equipment, net $ 1,751,573 $ 1,377,949 (1) On May 14, 2019, we and DISH Orbital II L.L.C (“DOLLC II”), an indirect wholly-owned subsidiary of DISH Network, entered into an agreement to sell our interests in the Local Multipoint Distribution Service (“LMDS”) and MVDDS licenses in exchange for the EchoStar XVIII satellite, including its related in-orbit incentive obligations of approximately $18 million (the “Satellite and Spectrum Transaction”). See Note 17 for further information. (2) The Ciel II satellite was previously classified as a finance lease, with a cost basis of $277 million, however, as a result of an amendment, which was effective during the first quarter 2019, Ciel II is now accounted for as an operating lease. (3) The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease, with a cost basis of $175 million. Depreciation and amortization expense consisted of the following: For the Years Ended December 31, 2019 2018 2017 (In thousands) Equipment leased to customers $ 370,867 $ 437,342 $ 539,434 Satellites 65,441 61,045 61,045 Buildings, furniture, fixtures, equipment and other 141,040 162,073 141,293 Total depreciation and amortization $ 577,348 $ 660,460 $ 741,772 Cost of sales and operating expense categories included in our accompanying Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation expense related to satellites or equipment leased to customers. Satellites Pay-TV Satellites . We currently utilize of which we own and depreciate over their estimated useful life. We currently utilize certain capacity on satellites that we lease from third parties. All leased satellites are accounted for as operating leases except Nimiq 5 and Anik F3, which are accounted for as financing leases and are depreciated over their economic life. As of December 31, 2019, our pay-TV satellite fleet consisted of the following: Degree Launch Orbital Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 N/A EchoStar XVIII June 2016 61.5 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from DISH Network (2): EchoStar X (3) February 2006 110 February 2021 EchoStar XI (3) July 2008 110 September 2021 EchoStar XIV (3) March 2010 119 February 2023 EchoStar XVI (3) November 2012 61.5 January 2023 Nimiq 5 (3)(4) September 2009 72.7 September 2020 QuetzSat-1 (3) September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2021 (1) See Note 17 for further information on our Related Party Transactions with EchoStar. (2) See Note 17 for further information on our Related Party Transactions with DISH Network. (3) On May 19, 2019, DISH Network entered into the Master Transaction Agreement with EchoStar. Upon the closing of the Master Transaction Agreement on September 10, 2019, these satellites and satellite service agreements leased from EchoStar were transferred to DISH Network. See Note 1 “ Recent Developments” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31 , 2019 for further information on the Master Transaction Agreement. (4) The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease. On May 14, 2019, we and DOLLC II entered into the Satellite and Spectrum Transaction, discussed above. Satellite Anomalies Operation of our DISH TV services requires that we have adequate satellite transmission capacity for the programming that we offer. While we generally have had in-orbit satellite capacity sufficient to transmit our existing channels and some backup capacity to recover the transmission of certain critical programming, our backup capacity is limited. In the event of a failure or loss of any of our owned or leased satellites, we may need to acquire or lease additional satellite capacity or relocate one of our other owned or leased satellites and use it as a replacement for the failed or lost satellite. Such a failure could result in a prolonged loss of critical programming or a significant delay in our plans to expand programming as necessary to remain competitive and thus may have a material adverse effect on our business, financial condition and results of operations. In the past, certain of our owned and leased satellites have experienced anomalies, some of which have had a significant adverse impact on their remaining useful life and/or commercial operation. There can be no assurance that future anomalies will not impact the remaining useful life and/or commercial operation of any of the owned and leased satellites in our fleet. See Note 2 “Impairment of Long-Lived Assets” for further information on evaluation of impairment. There can be no assurance that we can recover critical transmission capacity in the event one or more of our owned or leased in-orbit satellites were to fail. We generally do not carry commercial launch or in-orbit insurance on any of the satellites that we own, and therefore, we will bear the risk associated with any uninsured launch or in-orbit satellite failures. Intangible Assets As of December 31, 2019 and 2018, our identifiable intangibles subject to amortization consisted of the following: As of December 31, 2019 2018 Intangible Accumulated Intangible Accumulated Assets Amortization Assets Amortization (In thousands) Technology-based $ 58,162 $ (53,447) $ 58,162 $ (51,204) Trademarks 35,010 (30,655) 35,010 (27,106) Contract-based 4,500 (4,500) 4,500 (4,500) Customer relationships 23,632 (23,632) 23,632 (23,632) Total $ 121,304 $ (112,234) $ 121,304 $ (106,442) These identifiable intangibles are included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. Amortization of these intangible assets is recorded on a straight-line basis over an average finite useful life primarily ranging from approximately five to 20 years . Amortization was $6 million, $7 million and $7 million for the years ended December 31, 2019, 2018 and 2017, respectively. Estimated future amortization of our identifiable intangible assets as of December 31, 2019 is as follows (in thousands): For the Years Ended December 31, 2020 $ 3,285 2021 835 2022 666 2023 654 2024 654 Thereafter 2,976 Total $ 9,070 As of December 31, 2019 and 2018, we had goodwill of $6 million, which is included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. FCC Authorizations As of December 31, 2019 and 2018, our FCC Authorizations consisted of the following: As of December 31, 2019 2018 (In thousands) DBS Licenses $ 611,794 $ 611,794 MVDDS Licenses (1) — 24,000 Capitalized Interest — 1,552 Total $ 611,794 $ 637,346 (1) On May 14, 2019, we and DOLLC II entered into an agreement to sell our interests in the LMDS and MVDDS licenses in exchange for the EchoStar XVIII satellite. |
Leases
Leases | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Leases | ||
Leases | 7. Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 12 years , some of which include renewal options , and some of which include options to terminate the leases within one year . Our Anik F3 and Nimiq 5 satellites are accounted for as financing leases. Substantially all of our remaining leases are accounted for as operating leases, including the remainder of our satellite fleet. The components of lease expense were as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Operating lease cost $ 61,808 $ 81,762 $ 123,523 $ 162,048 Short-term lease cost (1) 3,733 12,141 6,400 31,426 Finance lease cost: Amortization of right-of-use assets 12,300 3,805 24,748 9,913 Interest on lease liabilities 4,534 1,099 9,332 2,280 Total finance lease cost 16,834 4,904 34,080 12,193 Total lease costs $ 82,375 $ 98,807 $ 164,003 $ 205,667 (2) Leases that have terms of 12 months or less . Supplemental cash flow information related to leases was as follows: For the Six Months Ended June 30, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 123,811 $ 164,159 Operating cash flows from finance leases $ 9,332 $ 2,295 Financing cash flows from finance leases $ 23,227 $ 10,454 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 17,967 $ 61,872 Finance leases $ — $ — Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 $ 730,180 Supplemental balance sheet information related to leases was as follows: As of June 30, 2020 December 31, 2019 (In thousands) Operating Leases: Operating lease assets $ 471,987 $ 553,576 Other current liabilities $ 204,138 $ 202,972 Operating lease liabilities 267,154 350,155 Total operating lease liabilities $ 471,292 $ 553,127 Finance Leases: Property and equipment, gross $ 398,875 $ 399,764 Accumulated depreciation (226,325) (201,873) Property and equipment, net $ 172,550 $ 197,891 Other current liabilities $ 50,860 $ 48,678 Other long-term liabilities 137,949 163,939 Total finance lease liabilities $ 188,809 $ 212,617 Weighted Average Remaining Lease Term: Operating leases 3.1 years 3.4 years Finance leases 3.8 years 4.2 years Weighted Average Discount Rate: Operating leases 9.0% 9.1% Finance leases 9.5% 9.5% Maturities of lease liabilities as of June 30, 2020 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2020 (remaining six months) $ 121,315 $ 33,139 $ 154,454 2021 205,137 66,279 271,416 2022 132,452 50,226 182,678 2023 27,439 42,862 70,301 2024 11,376 32,147 43,523 Thereafter 42,414 — 42,414 Total lease payments 540,133 224,653 764,786 Less: Imputed interest (68,841) (35,844) (104,685) Total 471,292 188,809 660,101 Less: Current portion (204,138) (50,860) (254,998) Long-term portion of lease obligations $ 267,154 $ 137,949 $ 405,103 | 7. Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles and other equipment. Our leases have remaining lease terms from one to twelve years , some of which include renewal options , and some of which include options to terminate the leases within one year . Our Anik F3 and Nimiq 5 satellites are accounted for as financing leases. Substantially all of our remaining leases are accounted for as operating leases, including the remainder of our satellite fleet. The components of lease expense were as follows: For the Year Ended December 31, 2019 (In thousands) Operating lease cost $ 297,181 Short-term lease cost (1) 37,686 Finance lease cost: Amortization of right-of-use assets 29,134 Interest on lease liabilities 9,826 Total finance lease cost 38,960 Total lease costs $ 373,827 (1) Leases that have terms of 12 months or less. Supplemental cash flow information related to leases was as follows : For the Year Ended December 31, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 301,524 Operating cash flows from finance leases $ 9,826 Financing cash flows from finance leases $ 31,841 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 81,198 Finance leases $ 175,311 Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 $ 730,180 Supplemental balance sheet information related to leases was as follows: As of December 31, 2019 (In thousands) Operating Leases: Operating lease right-of-use assets $ 553,576 Other current liabilities $ 202,972 Operating lease liabilities 350,155 Total operating lease liabilities $ 553,127 Finance Leases: Property and equipment, gross $ 399,764 Accumulated depreciation (201,873) Property and equipment, net $ 197,891 Other current liabilities $ 48,678 Other long-term liabilities 163,939 Total finance lease liabilities $ 212,617 Weighted Average Remaining Lease Term: Operating leases 3.4 years Finance leases 4.2 years Weighted Average Discount Rate: Operating leases 9.1% Finance leases 9.5% Maturities of lease liabilities as of December 31, 2019 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2020 $ 239,660 $ 66,285 $ 305,945 2021 199,062 66,279 265,341 2022 127,300 50,227 177,527 2023 24,571 42,862 67,433 2024 9,191 32,147 41,338 Thereafter 42,008 42,008 Total lease payments 641,792 257,800 899,592 Less: Imputed interest (88,665) (45,183) (133,848) Total 553,127 212,617 765,744 Less: Current portion (202,972) (48,678) (251,650) Long-term portion of lease obligations $ 350,155 $ 163,939 $ 514,094 |
Long-Term Debt and Finance Leas
Long-Term Debt and Finance Lease Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt and Finance Lease Obligations | |
Long-Term Debt and Capital 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, 2019 and 2018: As of December 31, 2019 2018 Carrying Fair Value Carrying Fair Value (In thousands) 7 7/8% Senior Notes due 2019 (1) — — 1,317,372 1,343,298 5 1/8% Senior Notes due 2020 (2) 1,100,000 1,110,208 1,100,000 1,089,957 6 3/4% Senior Notes due 2021 2,000,000 2,109,420 2,000,000 1,974,940 5 7/8% Senior Notes due 2022 2,000,000 2,129,580 2,000,000 1,833,140 5 % Senior Notes due 2023 1,500,000 1,543,770 1,500,000 1,247,445 5 7/8% Senior Notes due 2024 2,000,000 2,049,080 2,000,000 1,611,960 7 3/4% Senior Notes due 2026 2,000,000 2,128,900 2,000,000 1,653,720 Other notes payable 25,996 25,996 10,346 10,346 Subtotal 10,625,996 $ 11,096,954 11,927,718 $ 10,764,806 Unamortized deferred financing costs and debt discounts, net (16,250) (23,215) Finance lease obligations (3) 212,617 66,984 Total long-term debt and finance lease obligations (including current portion) $ 10,822,363 $ 11,971,487 (1) On September 3, 2019, we redeemed the principal balance of our 7 7/8% Senior Notes due 2019. (2) Our 5 1/8% Senior Notes due 2020 mature on May 1, 2020 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2019. We will either fund this obligation from cash and marketable investment securities balances at that time and/or advances from our parent, DISH Network or, depending on market conditions, we may refinance this obligation, in whole or in part. (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). 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 1/8% Senior Notes due 2020 On April 5, 2013, we issued $1.1 billion aggregate principal amount of our seven-year 5 1/8% Senior Notes due May 1, 2020. Interest accrues at an annual rate of 5 1/8% and is payable semi-annually in cash, in arrears on May 1 and November 1 of each year. The 5 1/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 6 3/4% Senior Notes due 2021 On May 5, 2011, we issued $2.0 billion aggregate principal amount of our ten-year 6 3/4% Senior Notes due June 1, 2021. Interest accrues at an annual rate of 6 3/4% and is payable semi-annually in cash, in arrears on June 1 and December 1 of each year. The 6 3/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 5 7/8% Senior Notes due 2022 On May 16, 2012 and July 26, 2012, we issued $1.0 billion and $1.0 billion, respectively, aggregate principal amount of our ten-year 5 7/8% Senior Notes due July 15, 2022. Interest accrues at an annual rate of 5 7/8% and is payable semi-annually in cash, in arrears on January 15 and July 15 of each year. The 5 7/8% Senior Notes due 2022 are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 5% Senior Notes due 2023 On December 27, 2012, we issued $1.5 billion aggregate principal amount of our 5% Senior Notes due March 15, 2023. Interest accrues at an annual rate of The 5% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 5 7/8% Senior Notes due 2024 On November 20, 2014, we issued $2.0 billion aggregate principal amount of our ten-year 5 7/8% Senior Notes due November 15, 2024. Interest accrues at an annual rate of 5 7/8% and is payable semi-annually in cash, in arrears on May 15 and November 15 of each year. The 5 7/8% Senior Notes due 2024 are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 7 3/4% Senior Notes due 2026 On June 13, 2016, we issued $2.0 billion aggregate principal amount of our ten-year 7 3/4% Senior Notes due July 1, 2026. Interest accrues at an annual rate of 7 3/4% and is payable semi-annually in cash, in arrears on January 1 and July 1 of each year. The 7 3/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Interest on Long-Term Debt Annual Semi-Annual Debt Service Payment Dates Requirements (In thousands) 5 1/8% Senior Notes due 2020 (1) May 1 and November 1 $ 56,375 6 3/4% Senior Notes due 2021 June 1 and December 1 $ 135,000 5 7/8% Senior Notes due 2022 January 15 and July 15 $ 117,500 5% Senior Notes due 2023 March 15 and September 15 $ 75,000 5 7/8% Senior Notes due 2024 May 15 and November 15 $ 117,500 7 3/4% Senior Notes due 2026 January 1 and July 1 $ 155,000 (1) Our 5 1/8% Senior Notes due 2020 mature on May 1, 2020 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2019. 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, 2019 2018 (In thousands) Satellites and other finance lease obligations $ 212,617 $ 66,984 Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6.0% 25,996 10,346 Total 238,613 77,330 Less: current portion (51,108) (21,155) Other long-term debt and finance lease obligations, net of current portion $ 187,505 $ 56,175 Finance Lease Obligations Anik F3. Anik F3, an FSS satellite, was launched and commenced commercial operation in April 2007. This satellite is accounted for as a finance lease and depreciated over the term of the satellite service agreement. We have leased 100% of the Ku-band capacity on Anik F3 for a period of 15 years . Nimiq 5 . On May 19, 2019, DISH Network entered into a Master Transaction 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 is being depreciated over the lease term which includes options to extend the lease that we are reasonably certain to exercise. We lease of the capacity on Nimiq 5. See Note 17 for further discussion. Ciel II . Ciel II, a Canadian DBS satellite, was launched in December 2008 and commenced commercial operation in February 2009. This satellite was previously accounted for as a finance lease and depreciated over the term of the satellite service agreement, however, as a result of an amendment, which was effective during the first quarter 2019, Ciel II is now accounted for as an operating lease. We lease 100% of the capacity on Ciel II. The initial 10-year term expired in January 2019 and as a result of an amendment, we renewed this lease through January 2021. The summary of future maturities of our outstanding long-term debt as of December 31, 2019 is included in the commitments table in Note 12. |
Income Taxes and Accounting for
Income Taxes and Accounting for Uncertainty in Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, 2018 and 2017 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, 2019, 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 partially offset by a valuation allowance. Portions of the credit carryforwards will expire in 2020. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”) was enacted making significant changes to the Internal Revenue Code. Such changes include, but are not limited to, a reduction in the corporate tax rate and certain limitations on corporate deductions (e.g., a limitation on the interest expense deduction available to companies). The Tax Reform Act, among other things, lowered the federal statutory corporate tax rate effective January 1, 2018 from . Consequently, we remeasured our deferred tax assets and liabilities as of December 31, 2017 which positively impacted our “Income tax (provision) benefit, net” by approximately million. The components of the (benefit from) provision for income taxes were as follows: For the Years Ended December 31, 2019 2018 2017 (In thousands) Current (benefit) provision: Federal $ 208,821 $ 273,632 $ 356,759 State 48,417 64,534 54,133 Foreign 6,203 4,616 3,736 Total current (benefit) provision 263,441 342,782 414,628 Deferred (benefit) provision: Federal 11,243 (25,934) (308,028) State (1,987) (123) 11,954 Increase (decrease) in valuation allowance 2,054 1,580 (938) Total deferred (benefit) provision 11,310 (24,477) (297,012) Total (benefit) provision $ 274,751 $ 318,305 $ 117,616 Our $1.102 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, 2019 2018 2017 % of pre-tax income/(loss) Statutory rate 21.0 21.0 35.0 State income taxes, net of federal benefit 3.6 4.4 4.2 Tax Reform Act (1) — — (34.5) Nondeductible/Nontaxable items (2) — — 11.5 Other, net 0.3 (0.8) (2.2) Total (benefit) provision for income taxes 24.9 24.6 14.0 (1) On December 22, 2017, the Tax Reform Act was enacted, which, among other things, lowered the federal statutory corporate tax rate effective January 1, 2018 from 35% to 21% . Consequently, we remeasured our deferred tax assets and liabilities as of December 31, 2017 which positively impacted our “Income tax (provision) benefit, net” by approximately $291 million. (2) During the year ended December 31, 2017, we recorded $255 million of “Litigation expense” related to the FTC Action on our Consolidated Statements of Operations and Comprehensive Income (Loss). Any eventual payments made with respect to the FTC Action may not be deductible for tax purposes, which had a negative impact on our effective tax rate for the year ended December 31, 2017. The tax deductibility of any eventual payments made with respect to the FTC Action may change, based upon, among other things, further developments in the FTC Action, including final adjudication of the FTC Action. See Note 12 for further information. Deferred taxes arise because of the differences in the book and tax bases of certain assets and liabilities. Significant components of deferred tax assets and liabilities were as follows: As of December 31, 2019 2018 (In thousands) Deferred tax assets: NOL, interest, credit and other carryforwards $ 12,323 $ 10,915 Accrued and prepaid expenses 96,974 — Stock-based compensation 19,719 21,198 Deferred revenue 17,238 18,361 Total deferred tax assets 146,254 50,474 Valuation allowance (9,521) (7,467) Deferred tax asset after valuation allowance 136,733 43,007 Deferred tax liabilities: Depreciation (458,811) (345,358) Accrued and prepaid expenses — (15,537) FCC authorizations and other intangible amortization (174,399) (131,452) Bases difference in partnerships and other investments (5,380) (12,112) Other liabilities — — Total deferred tax liabilities (638,590) (504,459) Net deferred tax asset (liability) $ (501,857) $ (461,452) 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 fiscal years 2008 through 2016. 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 2019 2018 2017 (In thousands) Balance as of beginning of period $ 194,136 $ 201,162 $ 201,693 Additions based on tax positions related to the current year 3,232 10,550 684 Additions based on tax positions related to prior years 28,137 1,154 4,593 Reductions based on tax positions related to prior years (13,028) (4,479) (1,061) Reductions based on tax positions related to settlements with taxing authorities (2,362) (8,328) (1,634) Reductions based on tax positions related to the lapse of the statute of limitations (1,963) (5,923) (3,113) Balance as of end of period $ 208,152 $ 194,136 $ 201,162 We have $179 million in unrecognized tax benefits that, if recognized, could favorably affect our effective tax rate. We do not expect any material portion of this amount to be paid or settled within the next twelve months. Accrued interest and penalties on uncertain tax positions are recorded as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss). During the years ended December 31, 2019, 2018 and 2017, we recorded million in net interest and penalty expense to earnings, respectively. Accrued interest and penalties were 2019 and 2018, respectively. The above table excludes these amounts. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans | |
Employee Benefit Plans | 10. Employee Benefit Plans Employee Stock Purchase Plan Our employees participate in the DISH Network employee stock purchase plan (the “ESPP”), in which DISH Network is authorized to issue up to 3.8 million shares of Class A common stock. At December 31, 2019, DISH Network had 0.2 million shares of Class A common stock which remain available for issuance under the ESPP. Substantially all full-time employees who have been employed by DISH Network for at least one calendar quarter are eligible to participate in the ESPP. Employee stock purchases are made through payroll deductions. Under the terms of the ESPP, employees may not deduct an amount which would permit such employee to purchase DISH Network’s capital stock under all of DISH Network’s stock purchase plans at a rate which would exceed $25,000 in fair value of capital stock in any one year. The purchase price of the stock is 85% of the closing price of DISH Network’s Class A common stock on the last business day of each calendar quarter in which such shares of DISH Network’s Class A common stock are deemed sold to an employee under the ESPP. During the years ended December 31, 2019, 2018 and 2017, employee purchases of DISH Network’s Class A common stock through the ESPP totaled approximately 0.6 million, 0.6 million and 0.3 million shares, respectively. 401(k) Employee Savings Plan DISH Network sponsors a 401(k) Employee Savings Plan (the “401(k) Plan”) for eligible employees. Voluntary employee contributions to the 401(k) Plan may be matched per employee. Forfeitures of unvested participant balances which are retained by the 401(k) Plan may be used to fund matching and discretionary contributions. DISH Network’s board of directors may also authorize an annual discretionary contribution to the 401(k) Plan with authorization by our Board of Directors, subject to the maximum deductible limit provided by the Internal Revenue Code of 1986, as amended. These contributions may be made in cash or in DISH Network’s stock. The following table summarizes the expense associated with our matching contributions and discretionary contributions: For the Years Ended December 31, Expense Recognized Related to the 401(k) Plan 2019 2018 2017 (In thousands) Matching contributions, net of forfeitures $ 11,181 $ 10,300 $ 7,070 Discretionary stock contributions, net of forfeitures $ 28,774 $ 27,048 $ 27,969 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | |
Stock-Based Compensation | 11. Stock-Based Compensation Stock Incentive Plans DISH Network maintains stock incentive plans to attract and retain officers, directors and key employees. Our employees participate in the DISH Network stock incentive plans. Stock awards under these plans include both performance and non-performance based stock incentives. As of December 31, 2019, there were outstanding under these plans stock options to acquire 12.8 million shares of DISH Network’s Class A common stock and 1.5 million restricted stock units and awards associated with our employees. Stock options granted on or prior to December 31, 2019 were granted with exercise prices equal to or greater than the market value of DISH Network Class A common stock at the date of grant and with a maximum term of approximately ten years . While historically DISH Network has issued stock awards subject to vesting, typically at the rate of 20% per year, some stock awards have been granted with immediate vesting and other stock awards vest only upon the achievement of certain DISH Network-specific subscriber, operational and/or financial goals. As of December 31, 2019, DISH Network had 80.3 million shares of its Class A common stock available for future grant under its stock incentive plans. Exercise prices for DISH Network stock options outstanding and exercisable associated with our employees as of December 31, 2019 were as follows: Options Outstanding Options Exercisable Number Weighted- Weighted- Number Weighted- Weighted- $ 10.01 - $ 20.00 616,160 0.50 $ 15.39 16,160 0.50 $ 15.62 $ 20.01 - $ 30.00 826,983 3.37 $ 26.74 124,233 3.25 $ 24.02 $ 30.01 - $ 40.00 6,671,563 7.94 $ 35.67 1,057,044 7.50 $ 35.52 $ 40.01 - $ 50.00 1,468,628 7.59 $ 47.52 384,800 7.10 $ 47.24 $ 50.01 - $ 60.00 2,154,378 6.47 $ 57.50 430,952 5.69 $ 59.90 $ 60.01 - $ 70.00 1,040,100 6.29 $ 64.22 304,300 5.50 $ 65.23 $ 70.01 - $ 80.00 15,000 — $ 72.89 15,000 — $ 72.89 $ — - $ 80.00 12,792,812 6.85 $ 41.52 2,332,489 6.51 $ 44.77 Stock Award Activity DISH Network stock option activity associated with our employees was as follows: For the Years Ended December 31, 2019 2018 2017 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period 13,365,489 $ 41.78 8,847,734 $ 43.90 7,913,733 $ 36.22 Granted 1,396,750 $ 33.52 7,026,512 $ 38.44 3,468,626 $ 59.66 Exercised (713,411) $ 27.46 (267,905) $ 16.43 (505,125) $ 28.73 Forfeited and cancelled (1) (1,256,016) $ 43.40 (2,240,852) $ 39.73 (2,029,500) $ 44.64 Total options outstanding, end of period 12,792,812 $ 41.52 13,365,489 $ 41.78 8,847,734 $ 43.90 Performance-based options outstanding, 7,608,446 $ 39.78 8,671,886 $ 39.95 5,490,626 $ 42.81 Exercisable at end of period 2,332,489 $ 44.93 1,705,103 $ 40.87 1,772,608 $ 35.13 (1) Certain of these stock options include options that were granted to individuals who transferred to and/or from another DISH Network subsidiary not a part of DISH DBS. (2) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the, 2013 LTIP, 2017 LTIP, 2019 LTIP and Other Employee Performance Awards below. We realized tax benefits from stock awards exercised as follows: For the Years Ended December 31, 2019 2018 2017 (In thousands) Tax benefit from stock awards exercised $ 1,239 $ 1,664 $ 9,347 Based on the closing market price of DISH Network Class A common stock on December 31, 2019, the aggregate intrinsic value of stock options associated with our employees was as follows: As of December 31, 2019 Options Options Outstanding Exercisable (In thousands) Aggregate intrinsic value $ 21,829 $ 2,136 DISH Network restricted stock unit and award activity associated with our employees was as follows: For the Years Ended December 31, 2019 2018 2017 Restricted Weighted- Average Grant Date Fair Value Restricted Weighted- Average Grant Date Fair Value Restricted Weighted- Average Grant Date Fair Value Total restricted stock units/awards outstanding, beginning 1,718,945 $ 52.16 2,484,720 $ 51.16 1,336,000 $ 32.11 Granted — $ — — $ — 1,871,375 $ 63.87 Vested (9,565) $ 63.49 (10,475) $ 63.49 (14,845) $ 62.58 Forfeited and cancelled (1) (245,730) $ 59.86 (755,300) $ 48.51 (707,810) $ 48.59 Total restricted stock units/awards outstanding, end 1,463,650 $ 50.82 1,718,945 $ 52.16 2,484,720 $ 51.16 Restricted Performance Units/Awards outstanding, 1,446,300 $ 50.66 1,689,350 $ 51.97 2,435,500 $ 50.91 (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 DISH Network subsidiary not a part of DISH DBS. (2) These stock units/awards are included in the caption “Total restricted stock units/awards outstanding, end of period.” See discussion of the 2013 LTIP and Other Employee Performance Awards below. Long-Term Performance-Based Plans 2013 LTIP. During 2013, DISH Network adopted a long-term, performance-based stock incentive plan (the “2013 LTIP”). The 2013 LTIP provides stock options and restricted stock units in combination, which vest based on DISH Network-specific subscriber and financial performance conditions. Exercise of the stock awards is contingent on achieving these performance conditions by September 30, 2022. Although no awards vest until DISH Network attains the performance conditions described above, compensation related to the 2013 LTIP will be recorded based on DISH Network’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. During the years ended December 31, 2015, 2014, 2013, DISH Network determined that 30%, 10% and 20%, respectively, of the 2013 LTIP performance conditions were probable of achievement. During the years ended December 31, 2018, 2017 and 2016, no additional 2013 LTIP performance conditions were deemed probable of achievement. During 2018, management determined the 2013 LTIP performance conditions were neither probable nor improbable of achievement. As a result, we are no longer recording non-cash, stock-based compensation expense for the 2013 LTIP. We recorded non-cash, stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2018, approximately of the 2013 LTIP awards had vested. 2017 LTIP. On December 2, 2016, DISH Network adopted a long-term, performance-based stock incentive plan (the “2017 LTIP”). The 2017 LTIP provides stock options, which vest based on DISH Network-specific subscriber and financial performance conditions. Awards were initially granted under the 2017 LTIP as of January 1, 2017. Exercise of the stock awards is contingent on achieving these performance conditions by December 31, 2020. Although no awards vest until DISH Network attains the performance conditions described above, compensation related to the 2017 LTIP will be recorded based on DISH Network’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 both the years ended December 31, 2018 and 2017, DISH Network determined that 75% of the 2017 LTIP performance conditions were probable of achievement. During 2019, management determined the 2017 LTIP performance conditions were not probable of achievement and as a result, DISH Network reversed million of non-cash, stock-based compensation expense. As a result, we are no longer recording non-cash, stock-based compensation expense for the 2017 LTIP. We recorded non-cash, stock-based compensation expense for the years ended December 31, 2019, 2018 and 2017, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” 2019 LTIP. performance conditions Although no awards vest until the DISH Network attains the performance conditions described above, compensation related to the 2019 LTIP will be recorded based on management’s assessment of the probability of meeting the performance conditions. If the performance conditions are probable of being achieved, DISH Network will begin recognizing the associated non-cash, stock-based compensation expense on its Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the performance condition. During the year ended December 31, 2019 and 2018, DISH Network determined that 90% and 82% , respectively, of the 2019 LTIP performance conditions were probable of achievement. As a result, non-cash, stock-based compensation expense was recorded for the year ended December 31, 2019 and 2018, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2019, approximately of the 2019 LTIP awards had vested. Other Employee Performance Awards. In addition to the above long-term, performance stock incentive plans, DISH Network has other stock awards that vest based on certain other DISH Network-specific subscriber, operational and/or financial 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 DISH Network’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, DISH Network 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, 2019, 2018 and 2017, 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) 2019 2018 2017 (In thousands) 2019 LTIP $ 14,946 $ 3,475 $ — 2017 LTIP (12,902) 3,293 10,640 2013 LTIP (1,021) (2,471) (321) Other employee performance awards (592) 17,888 7,549 Total non-cash, stock-based compensation expense recognized for performance-based awards $ 431 $ 22,185 $ 17,868 (1) “Non-Cash, Stock-Based Compensation Expense Recognized” includes forfeitures. Estimated Remaining Non-Cash, Stock-Based Compensation Expense 2019 LTIP 2017 LTIP 2013 LTIP Other Employee Performance Awards (In thousands) Expense estimated to be recognized during 2020 $ 10,541 $ — $ — $ — Estimated contingent expense subsequent to 2020 12,682 29,341 29,766 61,322 Total estimated remaining expense over the term of the plan $ 23,223 $ 29,341 $ 29,766 $ 61,322 Given the competitive nature of DISH Network’s business, small variations in subscriber churn, gross new subscriber activation rates and certain other factors can significantly impact subscriber growth. Consequently, while it was determined that achievement of certain DISH Network-specific subscriber, operational and/or financial performance conditions were not probable as of December 31, 2019, that assessment could change in the future. Of the 12.8 million stock options and 1.5 million restricted stock units and awards outstanding under the DISH Network stock incentive plans associated with our employees as of December 31, 2019, the following awards were outstanding pursuant to the performance-based stock incentive plans: As of December 31, 2019 Performance-Based Stock Options Number of Weighted- 2019 LTIP 3,510,375 $ 35.16 2017 LTIP 2,083,071 $ 57.12 2013 LTIP 875,000 $ 41.08 Other employee performance awards 1,140,000 $ 21.31 Total 7,608,446 $ 39.78 Restricted Performance Units/Awards 2013 LTIP 437,500 Other employee performance awards 1,008,800 Total 1,446,300 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, 2019, 2018 and 2017 and was allocated to the same expense categories as the base compensation for such employees: For the Years Ended December 31, 2019 2018 2017 (In thousands) Subscriber-related $ 509 $ 1,150 $ 1,562 Satellite and transmission 329 262 1,761 General and administrative 13,015 34,109 26,618 Total non-cash, stock based compensation $ 13,853 $ 35,521 $ 29,941 As of December 31, 2019, our total unrecognized compensation cost related to the non-performance based unvested stock awards was $26 million and will be recognized over a weighted-average period of approximately 2.8 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, 2019, 2018 and 2017 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 2019 2018 2017 Risk-free interest rate 1.51 % - 2.53 % 2.09 % - 2.98 % 1.34 % - 2.29 % Volatility factor 28.86 % - 32.08 % 23.33 % - 30.22 % 22.25 % - 26.15 % Expected term of options in years 4.3 - 5.5 2.8 - 5.5 3.8 - 5.5 Fair value of options granted $ 7.58 - $ 12.45 $ 7.10 - $ 12.53 $ 11.95 - $ 16.69 While DISH Network currently does not intend to declare dividends on its common stock, it may elect to do so from time to time. Accordingly, the dividend yield percentage used in the Black-Scholes option valuation model was set at zero for all periods. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded stock options which have no vesting restrictions and are fully transferable. Consequently, our estimate of fair value may differ from other valuation models. Further, the Black-Scholes option valuation model requires the input of highly subjective assumptions. Changes in these subjective input assumptions can materially affect the fair value estimate. We will continue to evaluate the assumptions used to derive the estimated fair value of DISH Network’s stock options as new events or changes in circumstances become known. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies | ||
Commitments and Contingencies | 9. Commitments and Contingencies Commitments DISH Network Spectrum Since 2008, DISH Network has directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets and made over $10 billion in non-controlling investments in certain entities, for a total of over $21 billion, as described further below. DISH Network has directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets. These wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. In March 2017, DISH Network notified the FCC that it planned to deploy a narrowband Internet of Things (“IoT”) network on certain of these wireless licenses, which was to be the first phase of its network deployment (“First Phase”). DISH Network expected to complete the First Phase by March 2020, with subsequent phases to be completed thereafter. In light of, among other things, certain developments related to the Sprint-TMUS merger, during the first quarter 2020, DISH Network determined that the revision of certain of its build-out deadlines was probable and, therefore, DISH Network no longer intends to complete its narrowband IoT deployment. DISH Network has issued requests for information and proposals (“RFI/Ps”) to various vendors in the wireless industry as it moves forward with its 5G broadband network deployment (“5G Network Deployment”). DISH Network currently expects expenditures for its wireless projects to be between $250 million and $500 million during 2020, excluding capitalized interest. DISH Network currently expects expenditures for its 5G Network Deployment to be approximately $10 billion, excluding capitalized interest. DISH Network will need to make significant additional investments or partner with others to, among other things, commercialize, build-out, and integrate these licenses and related assets, and any additional acquired licenses and related assets; and comply with regulations applicable to such licenses. Depending on the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such investments or partnerships could vary significantly. In addition, as DISH Network considers its options for the commercialization of its wireless spectrum, it will incur significant additional expenses and will have to make significant investments related to, among other things, research and development, wireless testing and wireless network infrastructure. DISH Network may also determine that additional wireless spectrum licenses may be required to commercialize its wireless business and to compete with other wireless service providers. Asset Purchase Agreement. billion as adjusted for specific categories of net working capital on the closing date (the “Prepaid Business Sale”). Effective July 1, 2020 (the “Closing Date”), upon the terms and subject to the conditions set forth in the APA, DISH Network and NTM completed the Prepaid Business Sale. At the closing of the Prepaid Business Sale, DISH Network and NTM entered into a transition services agreement under which DISH Network will receive certain transitional services (the “TSA”), a master network services agreement for the provision of network services by NTM to DISH Network (the “MNSA”), an option agreement entitling DISH Network to acquire certain decommissioned cell sites and retail stores of NTM (the “Option Agreement”) and an agreement under which DISH Network would purchase all of Sprint’s 800 MHz spectrum licenses, totaling approximately 13.5 MHz of nationwide wireless spectrum for an additional approximately $3.59 billion (the “Spectrum Purchase Agreement” and together with the APA, the TSA, the MNSA and the Option Agreement, the “Transaction Agreements”). See Note 10 “ Commitments and Contingencies – Commitments – Sprint Asset Acquisition In connection with the development of DISH Network’s wireless business, including, without limitation, the efforts described above, we have made cash distributions to partially finance these efforts to date and may make additional cash distributions to finance, in whole or in part, DISH Network’s future efforts. There can be no assurance that DISH Network will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably deploy the assets represented by these wireless spectrum licenses. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses During 2015, through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network initially made over $10 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. The Northstar Entities and/or the SNR Entities may need to raise significant additional capital in the future, which may be obtained from third party sources or from DISH Network, so that the Northstar Entities and the SNR Entities may commercialize, build-out and integrate these AWS-3 Licenses, comply with regulations applicable to such AWS-3 Licenses, and make any potential payments related to the re-auction of AWS-3 licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out, integration efforts, regulatory compliance, and potential re-auction payments, any such loans, equity contributions or partnerships could vary significantly. For further information regarding the potential re-auction of AWS-3 licenses retained by the FCC, see Note 10 “ Commitments and Contingencies – Commitments – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” We have made and may make cash distributions to finance, in whole or in part, loans that DISH Network has made or may make in the future to the Northstar Entities and the SNR Entities related to DISH Network’s non-controlling investments in these entities. There can be no assurance that DISH Network will be able to obtain a profitable return on its non-controlling investments in the Northstar Entities and the SNR Entities. We may need to raise significant additional capital in the future, which may not be available on acceptable terms or at all, to among other things, make additional cash distributions to DISH Network, continue investing in our business and to pursue acquisitions and other strategic transactions. See Note 10 “Commitments and Contingencies – Commitments” Contingencies Separation Agreement On January 1, 2008, DISH Network completed the distribution of its technology and set-top box business and certain infrastructure assets (the “Spin-off”) into a separate publicly-traded company, EchoStar. In connection with the Spin-off, DISH Network entered into a separation agreement with EchoStar that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, EchoStar has assumed certain liabilities that relate to its business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar will only be liable for its acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off, as well as DISH Network’s acts or omissions following the Spin-off. On February 28, 2017, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Share Exchange Agreement (the “Share Exchange Agreement”) that was previously entered into on January 31, 2017 (the “Share Exchange”), pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to DISH Network. On September 10, 2019, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Master Transaction Agreement (the “Master Transaction Agreement”) that was previously entered into on May 19, 2019, pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to DISH Network. The Share Exchange Agreement and the Master Transaction Agreement contain additional indemnification provisions between DISH Network and EchoStar for certain liabilities and legal proceedings. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period. Broadband iTV On December 19, 2019, Broadband iTV, Inc. filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 10,028,026 (the “026 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 10,506,269 (the “269 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 9,998,791 (“the 791 patent”), entitled “Video-on-demand content delivery method for providing video-on-demand services to TV service subscribers”; and United States Patent No. 9,648,388 (the “388 patent”), entitled “Video-on-demand content delivery system for providing video-on-demand services to TV services subscribers.” Generally, the asserted patents relate to providing video on demand content to subscribers. On July 10, 2020, July 20, 2020, July 24, 2020 and July 31, 2020, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of, respectively, the 026 patent, the 791 patent, the 269 patent and the 388 patent. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust On July 2, 2019, a putative class action lawsuit was filed by a purported EchoStar stockholder in the District Court of Clark County, Nevada under the caption City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Ergen, et al., Case No. A-19-797799-B. The lawsuit named as defendants Mr. Ergen, the other members of the EchoStar Board, as well as EchoStar, certain of its officers, DISH Network and certain of DISH Network’s and EchoStar’s affiliates. Plaintiff alleges, among other things, breach of fiduciary duties in approving the transactions contemplated under the Master Transaction Agreement for inadequate consideration and pursuant to an unfair and conflicted process, and that EchoStar, DISH Network and certain other defendants aided and abetted such breaches. In the operative First Amended Complaint, filed on October 11, 2019, the plaintiff dropped as defendants the EchoStar board members other than Mr. Ergen. Related Party Transactions – Master Transaction Agreement” Q for the quarter ended June 30, 2020 for further information on the Master Transaction Agreement. Plaintiff seeks equitable relief, including the issuance of additional DISH Network Class A Common Stock, monetary relief and other costs and disbursements, including attorneys’ fees. DISH Network intends to vigorously defend this case, but cannot predict with any degree of certainty the outcome of this suit or determine the extent of any potential liability or damages. ClearPlay, Inc. On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against DISH Network, our wholly-owned subsidiary DISH Network L.L.C., EchoStar, and its then wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Utah. The complaint alleges willful infringement of United States Patent Nos. 6,898,799 (the “799 patent”), entitled “Multimedia Content Navigation and Playback”; 7,526,784 (the “784 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318 (the “318 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970 (the “970 patent”), entitled “Multimedia Content Navigation and Playback”; and 8,117,282 (the “282 patent”), entitled “Media Player Configured to Receive Playback Filters From Alternative Storage Mediums.” ClearPlay alleges that the AutoHop ™ feature of our Hopper set-top box infringes the asserted patents. On February 11, 2015, the case was stayed pending various third-party challenges before the United States Patent and Trademark Office regarding the validity of certain of the patents asserted in the action. In those third-party challenges, the United States Patent and Trademark Office found that all claims of the 282 patent are unpatentable, and that certain claims of the 784 patent and 318 patent are unpatentable. ClearPlay appealed as to the 784 patent and the 318 patent, and on August 23, 2016, the United States Court of Appeals for the Federal Circuit affirmed the findings of the United States Patent and Trademark Office. On October 31, 2016, the stay was lifted. The trial has been reset for March 22, 2021. The report issued by ClearPlay’s damages expert contends that ClearPlay is entitled to We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Contemporary Display LLC On June 4, 2018, Contemporary Display LLC (“Contemporary”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of 6,028,643 (the “643 patent”), entitled “Multiple-Screen Video Adapter with Television Tuner”; United States Patent No. 6,429,903 (the “903 patent”), entitled “Video Adapter for Supporting at Least One Television Monitor”; United States Patent No. 6,492,997 (the “997 patent”), entitled “Method and System for Providing Selectable Programming in a Multi-Screen Mode”; United States Patent No. 7,500,202 (the “202 patent”), “Remote Control for Navigating Through Content in an Organized and Categorized Fashion”; and United States Patent No. 7,809,842 (the “842 patent”), entitled “Transferring Sessions Between Devices.” The 643 patent and the 903 patent are directed to video adapters for use with multiple displays. The 997 patent is directed to a system for presenting multiple video programs on a display device simultaneously. The 202 patent is directed to a remote control for interacting with a set-top box having programmable features and “operational controls” on at least three sides of the remote control. The 842 patent is directed to a system for managing online communication sessions between multiple devices. Contemporary is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. In a First Amended Complaint filed on August 6, 2018, Contemporary added our wholly-owned subsidiary DISH Network L.L.C. as a defendant. In a Second Amended Complaint filed on October 9, 2018, Contemporary named only our wholly- owned subsidiary DISH Network L.L.C. as a defendant and dropped certain indirect infringement allegations. On June 10, 2019, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 842 patent, the 903 patent, the 643 patent and the 997 patent. On December 13, 2019 and January 7, 2020, the United States Patent and Trademark Office agreed to institute proceedings on each of our petitions. On July 11, 2019, the Court entered an order staying the case pending resolution of the petitions. On January 31, 2020, pursuant to the parties’ joint motion, the Court dismissed all claims arising from the 202 patent, and extended its stay of the litigation pending non-appealable determinations on all of the petitions before the United States Patent and Trademark Office. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Customedia Technologies, L.L.C. On February 10, 2016, Customedia Technologies, L.L.C. (“Customedia”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of four patents: United States Patent No. 8,719,090 (the “090 patent”); United States Patent No. 9,053,494 (the “494 patent”); United States Patent No. 7,840,437 (the “437 patent”); and United States Patent No. 8,955,029 (the “029 patent”). Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia alleges infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. Customedia is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. In December 2016 and January 2017, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of each of the asserted patents. On June 12, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petitions challenging the 090 patent and the 437 patent; on July 18, 2017, it agreed to institute proceedings on our petitions challenging the 029 patent; and on July 28, 2017, it agreed to institute proceedings on our petitions challenging the 494 patent. These instituted proceedings cover all asserted claims of each of the asserted patents. The litigation in the District Court has been stayed since August 8, 2017 pending resolution of the proceedings at the United States Patent and Trademark Office. Pursuant to an agreement between the parties, on December 20, 2017, DISH Network L.L.C. dismissed its petitions challenging the 029 patent in the United States Patent and Trademark Office, and on January 9, 2018, the parties dismissed their claims, counterclaims and defenses as to that patent in the litigation. On March 5, 2018, the United States Patent and Trademark Office conducted a trial on the remaining petitions. On June 11, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 090 patent and it invalidated all of the asserted claims. On July 25, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 437 patent and the 494 patent and it invalidated all of the asserted claims. Customedia appealed its losses before the United States Patent and Trademark Office. The Court of Appeals for the Federal Circuit heard oral argument on November 6, 2019 on the appeal involving the 437 patent, and summarily affirmed the patent’s invalidity on November 8, 2019. On January 7, 2020, Customedia petitioned the Court of Appeals for rehearing or rehearing en banc, raising issues about the constitutionality of the appointment of the administrative patent judges that heard the petition before the Patent and Trademark Office, but the Court of Appeals denied rehearing on March 5, 2020. On July 31, 2020, Customedia filed a petition with the United States Supreme Court asking it to hear a further appeal. The Court of Appeals heard oral argument on the appeal involving the 090 patent and the 494 patent on December 3, 2019, and affirmed those patents’ invalidity on March 6, 2020. On May 5, 2020, Customedia filed petitions in the Federal Circuit for rehearing and rehearing en banc, seeking to reverse our appellate victories on the 090 and 494 patents, but those petitions were denied on June 9, 2020. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Innovative Foundry Technologies LLC On December 20, 2019, Innovative Foundry Technologies LLC filed a complaint against DISH Network (as well as Semiconductor Manufacturing International Corporation; Broadcom Incorporated; Broadcom Corporation; and Cypress Semiconductor Corporation) in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 6,580,122 (the “122 patent”), entitled “Transistor Device Having an Enhanced Width Dimension and a Method of Making Same”; United States Patent No. 6,806,126 (the “126 patent”), entitled “Method of Manufacturing a Semiconductor Component”; United States Patent No. 6,933,620 (the “620 patent”), entitled “Semiconductor Component and Method of Manufacture”; and United States Patent No. 7,009,226 (the “226 patent”), entitled “In-Situ Nitride/Oxynitride Processing with Reduced Deposition Surface Pattern Sensitivity.” DISH Network intends to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. Mobile Networking Solutions On August 12, 2019, Mobile Networking Solutions, LLC (“Mobile Networking Solutions”) filed a complaint against our wholly-owned subsidiary Sling Media L.L.C. for infringement of two patents: United States Patent No. 7,543,177 (the “177 patent”) and United States Patent No. 7,958,388 (the “388 patent”), each entitled “Methods and Systems for a Storage System.” Mobile Networking Solutions alleges infringement in connection with Sling Media L.L.C.’s use of a Hadoop Distributed File System for storage and processing of large data files. Pursuant to a stipulation of the parties, on December 16, 2019, the Court entered an order staying the case for six months so the parties may discuss settling the case. On May 12, 2020, pursuant to the parties’ joint request, the Court ordered dismissal of the case with prejudice. This matter is now concluded. Multimedia Content Management LLC On July 25, 2018, Multimedia Content Management LLC (“Multimedia”) filed a complaint against DISH Network in the United States District Court for the Western District of Texas. Multimedia alleges that DISH Network infringes United States Patent No. 8,799,468 (the “468 patent”), entitled “System for Regulating Access to and Distributing Content in a Network,” and United States Patent No. 9,465,925 (the “925 patent”), entitled “System for Regulating Access to and Distributing Content in a Network,” in connection with impulse pay per view content offerings on certain set-top boxes. Multimedia is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. On March 7, 2019, pursuant to stipulation, the Court substituted our wholly-owned subsidiary DISH Network L.L.C. as the defendant in our place. On April 23, 2019, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of each of the asserted patents. On November 13, 2019, the United States Patent and Trademark Office denied institution on both of the petitions. On December 13, 2019, DISH Network L.L.C. filed a motion for reconsideration, which the United States Patent and Trademark Office denied on March 10, 2020. On March 26, 2020, pursuant to the parties’ joint request, the Court dismissed the matter with prejudice. This matter is now concluded. Realtime Data LLC and Realtime Adaptive Streaming LLC On June 6, 2017, Realtime Data LLC d/b/a IXO (“Realtime”) filed an amended complaint in the United States District Court for the Eastern District of Texas (the “Original Texas Action”) against DISH Network; our wholly-owned subsidiaries DISH Network L.L.C., DISH Technologies L.L.C. (then known as EchoStar Technologies L.L.C.), Sling TV L.L.C. and Sling Media L.L.C.; EchoStar, and EchoStar’s wholly-owned subsidiary Hughes Network Systems, L.L.C. (“HNS”); and Arris Group, Inc. Realtime’s initial complaint in the Original Texas Action, filed on February 14, 2017, had named only EchoStar and HNS as defendants. The amended complaint in the Original Texas Action alleges infringement of United States Patent No. 8,717,204 (the “204 patent”), entitled “Methods for encoding and decoding data”; United States Patent No. 9,054,728 (the “728 patent”), entitled “Data compression systems and methods”; United States Patent No. 7,358,867 (the “867 patent”), entitled “Content independent data compression method and system”; United States Patent No. 8,502,707 (the “707 patent”), entitled “Data compression systems and methods”; United States Patent No. 8,275,897 (the “897 patent”), entitled “System and methods for accelerated data storage and retrieval”; United States Patent No. 8,867,610 (the “610 patent”), entitled “System and methods for video and audio data distribution”; United States Patent No. 8,934,535 (the “535 patent”), entitled “Systems and methods for video and audio data storage and distribution”; and United States Patent No. 8,553,759 (the “759 patent”), entitled “Bandwidth sensitive data compression and decompression.” Realtime alleges that DISH Network, Sling TV, Sling Media and Arris streaming video products and services compliant with various versions of the H.264 video compression standard infringe the 897 patent, the 610 patent and the 535 patent, and that the data compression system in Hughes’ products and services infringe the 204 patent, the 728 patent, the 867 patent, the 707 patent and the 759 patent. On July 19, 2017, the Court severed Realtime’s claims against DISH Network, DISH Network L.L.C., Sling TV L.L.C., Sling Media L.L.C. and Arris 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. On July 3, 2018, Sling TV L.L.C., Sling Media L.L.C., DISH Network L.L.C., and | 12. Commitments and Contingencies Commitments As of December 31, 2019, future maturities of our long-term debt, finance lease and contractual obligations are summarized as follows: Payments due by period Total 2020 2021 2022 2023 2024 Thereafter Long-term debt obligations $ 10,625,996 $ 1,102,430 $ 2,002,554 $ 2,002,683 $ 1,502,820 $ 2,002,964 $ 2,012,545 Interest expense on long-term debt 2,524,898 $ 629,410 $ 533,599 $ 465,969 $ 310,832 $ 273,188 $ 311,900 Finance lease obligations (1) 212,617 48,678 53,150 41,666 38,018 31,105 — Interest expense on finance lease obligations (1) 45,183 17,607 13,129 8,561 4,844 1,042 — Satellite-related and other obligations (2) 219,019 71,931 65,663 41,291 23,321 16,813 — Operating lease obligations (1) 641,792 239,660 199,062 127,300 24,571 9,191 42,008 Purchase obligations 1,241,340 1,200,025 29,284 12,031 — — — Total $ 15,510,845 $ 3,309,741 $ 2,896,441 $ 2,699,501 $ 1,904,406 $ 2,334,303 $ 2,366,453 (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 and short-term leases. In certain circumstances the dates on which we are obligated to make these payments could be delayed. These amounts will increase to the extent that we procure launch and/or in-orbit insurance on our owned satellites or contract for the construction, launch or lease of additional satellites. The table above does not include $208 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, 2019. We do not expect any portion of this amount to be paid or settled within the next twelve months. DISH Network Spectrum Since 2008, DISH Network has directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets and made over $10 billion in non-controlling investments in certain entities, for a total of over $21 billion, as described further below. DISH Network has directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets. These wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. In March 2017, DISH Network notified the FCC that it planned to deploy a narrowband IoT network on certain of these wireless licenses, which was to be the first phase of its network deployment (“First Phase”). DISH Network expected to complete the First Phase by March 2020, with subsequent phases to be completed thereafter. entered into vendor contracts with multiple parties for, among other things, base stations, chipsets, modules, tower leases, the core network, (“RF”) design, and deployment services for the First Phase. 5G broadband network deployment (“5G Network Deployment”) DISH Network currently expects expenditures for its wireless projects to be between $250 million and $500 million during 2020, excluding capitalized interest. DISH Network currently expects expenditures for its 5G Network Deployment to be approximately $10 billion, excluding capitalized interest. DISH Network will need to make significant additional investments or partner with others to, among other things, commercialize, build-out, and integrate these licenses and related assets, and any additional acquired licenses and related assets; and comply with regulations applicable to such licenses. Depending on the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such investments or partnerships could vary significantly. In addition, as DISH Network considers its options for the commercialization of its wireless spectrum, it will incur significant additional expenses and will have to make significant investments related to, among other things, research and development, wireless testing and wireless network infrastructure. DISH Network may also determine that additional wireless spectrum licenses may be required to commercialize its wireless business and to compete with other wireless service providers. Asset Purchase Agreement. Pursuant to the APA, after the consummation of the Sprint-TMUS merger and at the closing of the transaction, NTM will sell to DISH Network and DISH Network will acquire from NTM certain assets and liabilities associated with Sprint’s Boost Mobile, Virgin Mobile and Sprint-branded prepaid mobile services businesses (the “Prepaid Business”) for an aggregate purchase price of $1.4 billion as adjusted for specific categories of net working capital on the Closing Date (the “Prepaid Business Sale”). At the closing of the Prepaid Business Sale, DISH Network and NTM will enter into a transition services agreement under which DISH Network will receive certain transitional services (the “TSA”), a master network services agreement for the provision of network services by NTM to DISH Network (the “MNSA”), an option agreement entitling DISH Network to acquire certain decommissioned cell sites and retail stores of NTM (the “Option Agreement”) and an agreement under which DISH Network would purchase all of Sprint’s 800 MHz spectrum licenses, totaling approximately 13.5 MHz of nationwide wireless spectrum for an additional approximately $3.59 billion (the “Spectrum Purchase Agreement” and together with the APA, the TSA, the MNSA and the Option Agreement, the “Transaction Agreements”). See Note 15 “ Commitments and Contingencies – Commitments – Sprint Asset Acquisition Beginning on November 5, 2019, and while the approval of the Sprint-TMUS merger is pending, the March 7, 2020 build-out deadline for both the AWS-4 and Lower 700 MHz E Block spectrum bands is tolled; however, if the Sprint-TMUS merger is not consummated, the original deadlines would be reinstated with extensions equal to the length of time the deadline was tolled. During October 2019, DISH Network paused work on its narrowband Internet of Things (“IoT”) deployment due to its March 2020 build-out deadlines being tolled. DISH Network has issued requests for information and proposals (“RFI/Ps”) to various vendors in the wireless industry as it moves forward with its 5G Network Deployment. In connection with the development of DISH Network’s wireless business, including, without limitation, the efforts described above, we have made cash distributions to partially finance these efforts to date and may make additional cash distributions to finance, in whole or in part, DISH Network’s future efforts. There can be no assurance that DISH Network will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably deploy the assets represented by these wireless spectrum licenses. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses During 2015, through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network initially made over in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. , and make any potential payments related to the re-auction of AWS-3 licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out, integration efforts, regulatory compliance, and potential re-auction payments, any such loans, equity contributions or partnerships could vary significantly. For further information regarding the potential re-auction of AWS-3 licenses retained by the FCC, see Note 15 “ Commitments and Contingencies – Commitments – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019. In connection with certain funding obligations related to the investments by American II and American III discussed above, in February 2015, we paid a dividend of $8.250 billion to DOC for, among other things, general corporate purposes, which included such funding obligations, and to fund other DISH Network cash needs. We may make additional cash distributions to finance, in whole or in part, loans that DISH Network may make to the Northstar Entities and the SNR Entities in the future related to DISH Network’s non-controlling investments in these entities. There can be no assurance that DISH Network will be able to obtain a profitable return on its non-controlling investments in the Northstar Entities and the SNR Entities. We may need to raise significant additional capital in the future, which may not be available on acceptable terms or at all, to among other things, make additional cash distributions to DISH Network, continue investing in our business and to pursue acquisitions and other strategic transactions. See Note 15 “ Commitments and Contingencies – Wireless” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 Purchase Obligations Our 2020 purchase obligations primarily consist of binding purchase orders for certain fixed contractual commitments to purchase programming content, receiver systems and related equipment, broadband equipment, digital broadcast operations, transmission costs, streaming delivery technology and infrastructure, engineering services, and other products and services related to the operation of our Pay-TV services. Our purchase obligations can fluctuate significantly from period to period due to, among other things, management’s timing of payments and inventory purchases, and can materially impact our future operating asset and liability balances, and our future working capital requirements. Programming Contracts In the normal course of business, we enter into contracts to purchase programming content in which our payment obligations are generally contingent on the number of Pay-TV subscribers to whom we provide the respective content. These programming commitments are not included in the “Commitments” table above. The terms of our contracts typically range from one to ten years with annual rate increases. Our programming expenses will increase to the extent we are successful in growing our Pay-TV subscriber base. I n addition, programming costs per subscriber continue to increase due to contractual price increases and the renewal of long-term programming contracts on less favorable pricing terms. Rent Expense Total rent expense for operating leases was $357 million, $449 million and $473 million in 2019, 2018 and 2017, respectively. Patents and Intellectual Property Many entities, including some of our competitors, have or may in the future obtain patents and other intellectual property rights that cover or affect products or services that we offer or that we may offer in the future. We may not be aware of all intellectual property rights that our products or services may potentially infringe. Damages in patent infringement cases can be substantial, and in certain circumstances can be trebled. Further, we cannot estimate the extent to which we may be required in the future to obtain licenses with respect to patents held by others and the availability and cost of any such licenses. Various parties have asserted patent and other intellectual property rights with respect to components of our products and services. We cannot be certain that these persons do not own the rights they claim, that our products do not infringe on these rights, and/or that these rights are not valid. Further, we cannot be certain that we would be able to obtain licenses from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our products to avoid infringement. Contingencies Separation Agreement On January 1, 2008, DISH Network completed the distribution of its technology and set-top box business and certain infrastructure assets (the “Spin-off”) into a separate publicly-traded company, EchoStar. In connection with the Spin-off, DISH Network entered into a separation agreement with EchoStar that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, EchoStar has assumed certain liabilities that relate to its business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar will only be liable for its acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off, as well as our acts or omissions following the Spin-off. On February 28, 2017, DISH Network and EchoStar completed the Share Exchange Agreement. The Share Exchange Agreement contains additional indemnification provisions between us and EchoStar for certain liabilities and legal proceedings. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. 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. Blue Spike, LLC On July 6, 2018, Blue Spike, LLC (“Blue Spike”) 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 Reissued United States Patent RE44,222E1 (the “222 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; Reissued United States Patent RE44,307 (the “307 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; and United States Patent Nos. 7,287,275B2 (the “275 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; 8,473,746 (the “746 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; 8,224,705 (the “705 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; 7,475,246 (the “246 patent”), entitled “Secure personal content server”; 8,739,295B2 (the “295 patent”), entitled “Secure personal content server”; 9,021,602 (the “602 patent”), entitled “Data Protection and Device”; 9,104,842 (the “842 patent”), entitled “Data Protection and Device”; 9,934,408 (the “408 patent”), entitled “Secure personal content server”; 7,159,116B2 (the “116 patent”), entitled “Systems, methods and devices for trusted transactions”; and 8,538,011B2 (the “011 patent”), entitled “Systems, methods and devices for trusted transactions.” On September 5, 2018, pursuant to a joint motion of the parties, the Court ordered the case transferred to the United States District Court for the District of Delaware. In a First Amended Complaint filed on October 12, 2018, Blue Spike dropped its claims for infringement of the 222 patent, the 307 patent, the 275 patent, the 705 patent, and the 746 patent. On November 11, 2018, Blue Spike dismissed its complaint. On January 28, 2019, Blue Spike, along with Blue Spike International, Ltd. and Wistaria Trading Ltd., filed a new action 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 District of Delaware. The complaint alleges infringement of the 246 patent, the 295 patent, the 408 patent, the 116 patent, the 011 patent, the 602 patent and the 842 patent, all of which were asserted in the prior action. On March 29, 2019, the plaintiffs filed a First Amended Complaint, which dropped their claims arising from the 116 patent and the 011 patent. On July 5 and July 8, 2019, respectively, DISH Network, 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 the asserted claims of the 295 and the 408 patents. On July 19, 2019, DISH Network, 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 the asserted claims of the 246 patent. On August 1, 2019, DISH Network, 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 the asserted claims of the 842 patent and the 602 patent. On January 23, 2020, pursuant to the parties’ joint motion, all proceedings on the petitions before the United States Patent and Trademark Office were terminated. On January 28, 2020, pursuant to a stipulation of the parties, the litigation in the United States District Court for the District of Delaware was dismissed with prejudice. Broadband iTV On December 19, 2019, Broadband iTV, Inc. filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 10,028,026 (the “026 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 10,506,269 (the “269 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 9,998,791 (“the 791 patent”), entitled “Video-on-demand content delivery method for providing video-on-demand services to TV service subscribers”; and United States Patent No. 9,648,388 (the “388 patent”), entitled “Video-on-demand content delivery system for providing video-on-demand services to TV services subscribers.” Generally, the asserted patents relate to providing video on demand content to subscribers. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust On July 2, 2019, a putative class action lawsuit was filed by a purported EchoStar stockholder in the District Court of Clark County, Nevada under the caption City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Ergen, et al., Case No. A-19-797799-B. The lawsuit named as defendants Mr. Ergen, the other members of the EchoStar Board, as well as EchoStar, certain of its officers, DISH Network and certain of DISH Network’s and EchoStar’s affiliates. Plaintiff alleges, among other things, breach of fiduciary duties in approving the transactions contemplated under the Master Transaction Agreement for inadequate consideration and pursuant to an unfair and conflicted process, and that EchoStar, DISH Network and certain other defendants aided and abetted such breaches. See Note 1 “ Recent Developments ” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement. Plaintiff seeks equitable relief, including the issuance of additional DISH Network Class A Common Stock, monetary relief and other costs and disbursements, including attorneys’ fees. DISH Network intends to vigorously defend this case, but cannot predict with any degree of certainty the outcome of this suit or determine the extent of any potential liability or damages. ClearPlay, Inc. On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against DISH Network, our wholly-owned subsidiary DISH Network L.L.C., EchoStar, and its then wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Utah. The complaint alleges 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. The trial has been set for October 26, 2020. The report issued by ClearPlay’s damages expert contends that ClearPlay is entitled to $543 million in damages. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Contemporary Display LLC On June 4, 2018, Contemporary Display LLC (“Contemporary”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of 6,028,643 (the “643 patent”), entitled “Multiple-Screen Video Adapter with Television Tuner”; United States Patent No. 6,429,903 (the “903 patent”), entitled “Video Adapter for Supporting at Least One Television Monitor”; United States Patent No. 6,492,997 (the “997 patent”), entitled “Method and System for Providing Selectable Programming in a Multi-Screen Mode”; United States Patent No. 7,500,202 (the “202 patent”), “Remote Control for Navigating Through Content in an Organized and Categorized Fashion”; and United States Patent No. 7,809,842 (the “842 patent”), entitled “Transferring Sessions Between Devices.” The 643 patent and the 903 patent are directed to video adapters for use with multiple displays. The 997 patent is directed to a system for presenting multiple video programs on a display device simultaneously. The 202 patent is directed to a remote control for interacting with a set-top box having programmable features and “operational controls” on at least three sides of the remote control. The 842 patent is directed to a system for managing online communication sessions between multiple devices. Contemporary is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. In a First Amended Complaint filed on August 6, 2018, Contemporary added our wholly-owned subsidiary DISH Network L.L.C. as a defendant. In a Second Amended Complaint filed on October 9, 2018, Contemporary named only our wholly-owned subsidiary DISH Network L.L.C. as a defendant and dropped certain indirect infringement allegations. On June 10, 2019, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 842 patent, the 903 patent, the 643 patent and the 997 patent. On December 13, 2019 and January 7, 2020, the United States Patent and Trademark Office agreed to institute proceedings on each of our petitions. On July 11, 2019, the Court entered an order staying the case pending resolution of the petitions. On January 31, 2020, pursuant to the parties’ joint motion, the Court dismissed all claims arising from the 202 patent, and extended its stay of the litigation pending non-appealable determinations on all of the petitions before the United States Patent and Trademark Office. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Customedia Technologies, L.L.C. On February 10, 2016, Customedia Technologies, L.L.C. (“Customedia”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of four patents: United States Patent No. 8,719,090 (the “090 patent”); United States Patent No. 9,053,494 (the “494 patent”); United States Patent No. 7,840,437 (the “437 patent”); and United States Patent No. 8,955,029 (the “029 patent”). Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia alleges infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. In December 2016 and January 2017, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of each of the asserted patents. On June 12, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petitions challenging the 090 patent and the 437 patent; on July 18, 2017, it agreed to institute proceedings on our petitions challenging the 029 patent; and on July 28, 2017, it agreed to institute proceedings on our petitions challenging the 494 patent. These instituted proceedings cover all asserted claims of each of the asserted patents. The litigation in the District Court has been stayed since August 8, 2017 pending resolution of the proceedings at the United States Patent and Trademark Office. Pursuant to an agreement between the parties, on December 20, 2017, DISH Network L.L.C. dismissed its petitions challenging the 029 patent in the United States Patent and Trademark Office, and on January 9, 2018, the parties dismissed their claims, counterclaims and defenses as to that patent in the litigation. On March 5, 2018, the United States Patent and Trademark Office conducted a trial on the remaining petitions. On June 11, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 090 patent and it invalidated all of the asserted claims. On July 25, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 437 patent and the 494 patent and it invalidated all of the asserted claims. Customedia has filed notices of appeal from all of the final written decisions adverse to it, and DISH Network L.L.C. cross-appealed to the extent that its petitions were not successful. On February 6, 2019, the Court of Appeals granted DISH Network L.L.C.’s motion to dismiss its cross-appeals related to the 090 patent and, on February 26, 2019, granted DISH Network L.L.C.’s motion to dismiss its cross-appeals related to the 437 patent. The Court of Appeals for the Federal Circuit heard oral argument on November 6, 2019 on the appeal involving the 437 patent, and summarily affirmed the patent’s invalidity on November 8, 2019. On January 7, 2020, Customedia petitioned the Court of Appeals for rehearing or rehearing en banc, raising issues about the constitutionality of the appointment of the administrative patent judges that heard the petition before the Patent and Trademark Office, and DISH Network L.L.C. filed a response to that petition on February 10, 2020. The Court of Appeals heard oral argument on the appeal involving the 090 patent and the 494 patent on December 3, 2019. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Innovative Foundry Technologies On December 20, 2019, Innovative Foundry Technologies LLC filed a complaint against DISH Network (as well as Semiconductor Manufacturing International Corporation; Broadcom Incorporated; Broadcom Corporation; and Cypress Semiconductor Corporation) in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 6,580,122 (the “122 patent”), entitled “Transistor Device Having an Enhanced Width Dimension and a Method of Making Same”; United States Patent No. 6,806,126 (the “126 patent”), entitled “Method of Manufacturing a Semiconductor Component”; Uni |
Financial Information for Subsi
Financial Information for Subsidiary Guarantors | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Financial Information for Subsidiary Guarantors | ||
Financial Information for Subsidiary Guarantors | 10. Financial Information for Subsidiary Guarantors Our senior notes are fully, unconditionally and jointly and severally guaranteed by all of our subsidiaries other than minor subsidiaries, and the stand-alone entity DISH DBS has no independent assets or operations. Therefore, supplemental financial information on a condensed consolidating basis of the guarantor subsidiaries is not required. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the guarantor subsidiaries, except those imposed by applicable law. | 13. Financial Information for Subsidiary Guarantors Our senior notes are fully, unconditionally and jointly and severally guaranteed by all of our subsidiaries other than minor subsidiaries and the stand-alone entity DISH DBS has no independent assets or operations. Therefore, supplemental financial information on a consolidating basis of the guarantor subsidiaries is not required. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the guarantor subsidiaries, except those imposed by applicable law. |
Disaggregation of Revenue
Disaggregation of Revenue | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue | ||
Disaggregation of Revenue | 11. Disaggregation of Revenue Geographic Information. Revenue is attributed to geographic regions based upon the location where the goods and services are provided. All subscriber-related revenue was derived from the United States. Substantially all of our long-lived assets reside in the United States. The following table summarizes revenue by geographic region: For the Three Months Ended For the Six Months Ended June 30, June 30, Revenue: 2020 2019 2020 2019 (In thousands) United States $ 3,144,992 $ 3,155,828 $ 6,302,296 $ 6,282,937 Canada and Mexico 3,539 10,771 14,017 21,662 Total revenue $ 3,148,531 $ 3,166,599 $ 6,316,313 $ 6,304,599 The revenue from external customers disaggregated by major revenue source was as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, Category: 2020 2019 2020 2019 (In thousands) Pay-TV video and related revenue $ 3,117,334 $ 3,117,066 $ 6,248,234 $ 6,215,002 Equipment sales and other revenue 31,197 49,533 68,079 89,597 Total $ 3,148,531 $ 3,166,599 $ 6,316,313 $ 6,304,599 | 14. Disaggregation of Revenue Geographic Information. Revenue is attributed to geographic regions based upon the location where the goods and services are provided. All subscriber-related revenue was derived from the United States. Substantially all of our long-lived assets reside in the United States. The following table summarizes revenue by geographic region: For the Years Ended December 31, Revenue: 2019 2018 2017 (In thousands) United States $ 12,581,855 $ 13,319,091 $ 13,967,694 Canada and Mexico 41,038 43,048 39,817 Total revenue $ 12,622,893 $ 13,362,139 $ 14,007,511 The revenue from external customers disaggregated by major revenue source was as follows: For the Years Ended December 31, Category: 2019 2018 2017 (In thousands) Pay-TV video and related revenue $ 12,436,637 $ 13,197,994 $ 13,877,196 Equipment sales and other revenue 186,256 164,145 130,315 Total $ 12,622,893 $ 13,362,139 $ 14,007,511 |
Contract Balances
Contract Balances | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Contract Balances | ||
Contract Balances | 12. Contract Balances Our valuation and qualifying accounts as of June 30, 2020 were as follows: Allowance for credit losses Balance at Beginning of Period Current Period Provision for Expected Credit Losses Write-offs Charged Against Allowance Balance at End of Period (In thousands) For the six months ended June 30, 2020 $ 19,280 $ 51,808 $ (29,900) $ 41,188 Deferred revenue related to contracts with our customers is recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets. Changes in deferred revenue related to contracts with our customers were as follows: Contract Liabilities (In thousands) Balance as of December 31, 2019 $ 609,054 Recognition of unearned revenue (2,951,822) Deferral of revenue 2,925,648 Balance as of June 30, 2020 $ 582,880 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. | 15. Contract Balances Our valuation and qualifying accounts as of December 31, 2019, 2018 and 2017 were as follows: Allowance for doubtful accounts Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year (In thousands) For the years ended: December 31, 2019 $ 16,956 $ 69,866 $ (67,542) $ 19,280 December 31, 2018 $ 15,056 $ 98,461 $ (96,561) $ 16,956 December 31, 2017 $ 17,440 $ 124,143 $ (126,527) $ 15,056 Deferred revenue related to contracts with our customers is recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Consolidated Balance Sheets. Changes in deferred revenue related to contracts with our customers were as follows: Contract Liabilities (In thousands) Balance as of December 31, 2018 $ 624,626 Recognition of unearned revenue (7,086,252) Deferral of revenue 7,070,680 Balance as of December 31, 2019 $ 609,054 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. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019: Total revenue $ 3,138,000 $ 3,166,599 $ 3,122,282 $ 3,196,012 Operating income (loss) 430,735 435,966 438,498 515,999 Net income (loss) attributable to DISH DBS 177,760 185,368 204,858 259,545 Year ended December 31, 2018: Total revenue $ 3,383,222 $ 3,393,307 $ 3,334,444 $ 3,251,166 Operating income (loss) 508,121 549,502 542,439 466,448 Net income (loss) attributable to DISH DBS 204,192 285,691 281,272 200,132 |
Related Party Transactions
Related Party Transactions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Related Party Transactions | ||
Related Party Transactions | 13. Related Party Transactions Master Transaction Agreement On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. As a result of the Master Transaction Agreement, certain agreements that we had with EchoStar have been transferred to DISH Network. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. See Related Party Transactions – Master Transaction Agreement” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 for further information on the Master Transaction Agreement. Related Party Transactions with DISH Network “Satellite and transmission expenses” During the three months ended June 30, 2020 and 2019, we incurred expenses of $56 million and $8 million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. During the six months ended June 30, 2020 and 2019, we incurred expenses of million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. As a result of the Master Transaction Agreement, discussed above, DISH Network is now a supplier of the vast majority of our transponder capacity. These amounts are recorded in “Satellite and transmission expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Satellite Capacity Leased from DISH Network . On September 10, 2019, in connection with the Master Transaction Agreement DISH Network entered into with EchoStar on May 19, 2019, we began leasing satellite capacity on satellites owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: ● EchoStar X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the satellite capacity agreement we previously had with EchoStar for EchoStar X, XI and XIV was transferred to DISH Network and we began leasing satellite capacity on these satellites from a wholly-owned subsidiary of DISH Network as of the same date. ● EchoStar XVI. In December 2009, we entered into a transponder service agreement with EchoStar to lease all of the capacity on EchoStar XVI, a DBS satellite, after its service commencement date. EchoStar XVI was launched in November 2012 to replace EchoStar XV at the 61.5 degree orbital location and is currently in service. Effective December 21, 2012, we and EchoStar amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and EchoStar amended the transponder service agreement to, among other things, extend the initial term by one additional year and to reduce the term of the first renewal option by one year . Prior to expiration of the initial term, we had the option to renew for an additional five-year period. In May 2017, we exercised our first renewal option for an additional five-year period ending in January 2023. We also have the option to renew for an additional five-year period prior to expiration of the first renewal period in January 2023. There can be no assurance that the option to renew this agreement will be exercised. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place and use certain satellites at the 61.5 degree orbital location. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the transponder service agreement we previously had with EchoStar for EchoStar XVI was transferred to DISH Network and we began receiving transponder services from a wholly-owned subsidiary of DISH Network as of the same date. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term, which expired ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we have the option to renew on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began receiving transponder services on the Nimiq 5 satellite from a wholly-owned subsidiary of DISH Network as of the same date and exercised our option to renew for a one-year period through September 2020. As discussed in Note 6, “Property and Equipment and Intangible Assets,” the Nimiq 5 satellite lease has been accounted for as a finance lease since September 2019. Accordingly, expenses related to this lease are no longer recorded in “Satellite and transmission expenses,” but rather in “Depreciation and amortization” and “Interest expense, net of amounts capitalized” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). During the three and six months ended June 30, 2020, we recorded $8 million and $17 million of “Depreciation and amortization expense,” respectively, and $4 million and $8 million, respectively, of “Interest expense, net of amounts capitalized” related to Nimiq 5. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provided, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite (“SES Transponder Agreement”). During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we received service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the SES Transponder Agreement and QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the SES Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. There can be no assurance that any options to renew the SES Transponder Agreement will be exercised. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the SES Transponder Agreement was transferred to DISH Network and we began receiving transponder services on QuetzSat-1 from a wholly-owned subsidiary of DISH Network as of the same date. Our lease arrangement with DISH Network expires in November 2021. EchoStar XVIII Satellite. The EchoStar XVIII satellite was launched on June 18, 2016 and became operational as an in-orbit spare at the 61.5 degree orbital location during the third quarter 2016, at which time we began leasing it from a wholly-owned subsidiary of DISH Network. On May 14, 2019, we and DOLLC II entered into an agreement to sell our interests in the LMDS and MVDDS licenses in exchange for the EchoStar XVIII satellite. See Note 6 for further information. TT&C Agreement. Effective January 1, 2012, we entered into a TT&C agreement pursuant to which we receive TT&C services from EchoStar for certain satellites (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network. We began receiving TT&C services from a wholly-owned subsidiary of DISH Network as of the same date. “General and administrative expenses” During the three months ended June 30, 2020 and 2019, we incurred $2 million and zero , respectively, for general and administrative expenses for services provided to us by DISH Network. During the six months ended June 30, 2020 and 2019, we incurred , respectively, for general and administrative expenses for services provided to us by DISH Network. These amounts are recorded in “General and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. On September 10, 2019, in connection with the Master Transaction Agreement discussed above, we began leasing office space owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. The term of each lease is set forth below: ● Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado originally from EchoStar to us was for a period ending on December 31, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we began leasing all of 5701 S. Santa Fe Dr. in Littleton, Colorado from a wholly-owned subsidiary of DISH Network as of the same date. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. In connection with the completion of the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network, and, effective March 1, 2017, DISH Network and EchoStar amended this lease agreement to (i) terminate the lease of certain space at the portion of the property that was transferred to us and (ii) provide for the continued lease to us of certain space at the portion of the property that EchoStar retained. Pursuant to the Master Transaction Agreement, discussed above, the portion of the property EchoStar retained was transferred to DISH Network, and on September 10, 2019, this lease was transferred to DISH Network and we began leasing certain space from a wholly-owned subsidiary of DISH Network as of the same date. Other Agreements – DISH Network Broadband, Wireless and Other Operations. We provide certain administrative, call center, installation, marketing and other services to DISH Network’s broadband, wireless and other operations. During the three months ended June 30, 2020 and 2019, the costs associated with these services was During the six months ended June 30, 2020 and 2019, the costs associated with these services was Spin-off from EchoStar Following the Spin-off, DISH Network and EchoStar have operated as separate publicly-traded companies and neither entity has any ownership interest in the other. However, a substantial majority of the voting power of the shares of both companies is owned beneficially by Charles W. Ergen, our Chairman, and by certain entities established by Mr. Ergen for the benefit of his family. Related Party Transactions with EchoStar In connection with and following the Spin-off, we and EchoStar have entered into certain agreements pursuant to which we obtain certain products, services and rights from EchoStar, EchoStar obtains certain products, services and rights from us, and we and EchoStar have indemnified each other against certain liabilities arising from our respective businesses. Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses. Pursuant to the Master Transaction Agreement, among other things, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. In connection with the Share Exchange and the Master Transaction Agreement, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. In addition, certain agreements that we had with EchoStar have terminated, and we entered into certain new agreements with EchoStar. We also may enter into additional agreements with EchoStar in the future. The following is a summary of the terms of our principal agreements with EchoStar that may have an impact on our financial condition and results of operations. “Trade accounts receivable” As of June 30, 2020 and December 31, 2019, trade accounts receivable from EchoStar was $4 million and $1 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Condensed Consolidated Balance Sheets. “Trade accounts payable” As of June 30, 2020 and December 31, 2019, trade accounts payable to EchoStar was $14 million and $3 million, respectively. These amounts are recorded in “Trade accounts payable” on our Condensed Consolidated Balance Sheets. “Equipment sales and other revenue” During each of the three months ended June 30, 2020 and 2019, we received $1 million for services provided to EchoStar. During the six months ended June 30, 2020 and 2019, we received million, respectively, for services provided to EchoStar. These amounts are recorded in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these revenues are discussed below. Real Estate Lease Agreements. DISH Network has entered into lease agreements pursuant to which DISH Network leases certain real estate to EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic areas, and EchoStar is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● El Paso Lease Agreement. During 2012, DISH Network began leasing certain space at 1285 Joe Battle Blvd., El Paso, Texas to EchoStar for an initial period ending on August 1, 2015, which also provides EchoStar with renewal options for four consecutive three-year terms. During the second quarter 2015, EchoStar exercised its first renewal option for a period ending on August 1, 2018 and in April 2018 EchoStar exercised its second renewal option for a period ending in August 2021. ● 90 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 90 Inverness Circle East, Englewood, Colorado for a period ending in February 2022. EchoStar has the option to renew this lease for four three-year periods. ● Cheyenne Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 530 EchoStar Drive, Cheyenne, Wyoming for a period ending in February 2019. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for 12 one-year periods. In connection with the Master Transaction Agreement, DISH Network and EchoStar amended this lease to provide EchoStar with certain space for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon 180 days ’ written notice prior to the end of the term . ● Gilbert Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 801 N. DISH Dr., Gilbert, Arizona for a period ending in March 2019. EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. This lease was terminated effective September 10, 2019. ● American Fork Occupancy License Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, we acquired the lease for certain space at 796 East Utah Valley Drive, American Fork, Utah, and we sublease certain space at this location to EchoStar for a period ending in August 2017. In June 2017, EchoStar exercised its five-year renewal option for a period ending in August 2022. This lease was terminated effective March 2019. Collocation and Antenna Space Agreements . In connection with the completion of the Share Exchange, effective March 1, 2017, we entered into certain agreements pursuant to which we will provide certain collocation and antenna space to HNS through February 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Englewood, Colorado; and Spokane, Washington. During August 2017, we entered into certain other agreements pursuant to which we will provide certain collocation and antenna space to HNS through August 2022 at the following locations: Monee, Illinois and Spokane, Washington. HNS has the option to renew each of these agreements for four three-year periods. HNS may terminate certain of these agreements with 180 days ’ prior written notice to us at the following locations: New Braunfels, Texas; Englewood, Colorado; and Spokane, Washington. In September 2019, in connection with the Master Transaction Agreement, we entered into an agreement pursuant to which we provide HNS with certain additional collocation space in Cheyenne, Wyoming for a period ending in September 2020, with the option for HNS to renew for a one-year period, with prior written notice no more than 120 days but no less than 90 days prior to the end of the term. In October 2019, HNS provided a termination notice for its New Braunfels, Texas agreement to be effective May 2020. The fees for the services provided under these agreements depend, among other things, on the number of racks leased and/or antennas present at the location. “Satellite and transmission expenses” During the three months ended June 30, 2020 and 2019, we incurred expenses of less than $1 million and $72 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. During the six months ended June 30, 2020 and 2019, we incurred expenses of $1 million and $143 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. EchoStar was the supplier of the vast majority of our transponder capacity. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, certain of these satellites were transferred to DISH Network. We are now leasing this satellite capacity from DISH Network. These amounts are recorded in “Satellite and transmission expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Satellite Capacity Leased from EchoStar . We have entered into certain satellite capacity agreements pursuant to which we lease certain capacity on certain satellites owned or leased by EchoStar. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: ● EchoStar VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar VII, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. The satellite capacity agreement for EchoStar VII expired on June 30, 2018. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, these satellites were transferred to DISH Network. ● EchoStar IX . We lease certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally have the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis. ● EchoStar XVI. In December 2009, we entered into a transponder service agreement with EchoStar to lease all of the capacity on EchoStar XVI, a DBS satellite, after its service commencement date. EchoStar XVI was launched in November 2012 to replace EchoStar XV at the 61.5 degree orbital location and is currently in service. Effective December 21, 2012, we and EchoStar amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and EchoStar amended the transponder service agreement to, among other things, extend the initial term by one additional year and to reduce the term of the first renewal option by one year . Prior to expiration of the initial term, we had the option to renew for an additional five-year period. In May 2017, we exercised our first renewal option for an additional five-year period ending in January 2023. We also have the option to renew for an additional five-year period prior to expiration of the first renewal period in January 2023. There can be no assurance that the option to renew this agreement will be exercised. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place and use certain satellites at the 61.5 degree orbital location. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, this satellite was transferred to DISH Network. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term, which expired ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we have the option to renew on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network and we exercised our option to renew for a one-year period through September 2020. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provided, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite (“SES Transponder Agreement”) . During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we receive service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. During the first quarter 2013, DISH Network and EchoStar entered into an agreement pursuant to which DISH Network subleased five DBS transponders back to EchoStar. Unless earlier terminated under the terms and conditions of the SES Transponder Agreement and QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the SES Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. There can be no assurance that any options to renew the SES Transponder Agreement will be exercised. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the SES Transponder Agreement was transferred TT&C Agreement. Effective January 1, 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we receive TT&C services from EchoStar for certain satellites (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network and now DISH Network provides these services to us. “General and administrative expenses” During the three months ended June 30, 2020 and 2019, we incurred $3 million and $6 million, respectively, for general and administrative expenses for services provided to us by EchoStar. During the six months ended June 30, 2020 and 2019, we incurred million, respectively, for general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “General and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. We have entered into lease agreements pursuant to which we lease certain real estate from EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic area, and EchoStar is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado was for a period ending on December 31, 2019. In December 2019, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado was for a period ending on December 31, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. In connection with the completion of the Share Exchange, EchoStar transferred ownership of a portion of this property to us, and, effective March 1, 2017, we and EchoStar amended this lease agreement to (i) terminate the lease of certain space at the portion of the property that was transferred to us and (ii) provide for the continued lease to us of certain space at the portion of the property that EchoStar retained. Pursuant to the Master Transaction Agreement, discussed above, t he portion of the property EchoStar retained was transferred to DISH Network , and on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network. ● 100 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, we lease certain space from EchoStar at 100 Inverness Terrace East, Englewood, Colorado for a period ending in December 2020. This agreement may be terminated by either party upon 180 days ’ prior notice. Professional Services Agreement . Prior to 2010, in connection with the Spin-off, DISH Network entered into various agreements with EchoStar including the Transition Services Agreement, Satellite Procurement Agreement and Services Agreement, which all expired on January 1, 2010 and were replaced by a Professional Services Agreement. During 2009, DISH Network and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Additionally, DISH Network and EchoStar agreed that DISH Network shall continue to have the right, but not the obligation, to engage EchoStar to manage the | 17. Related Party Transactions Master Transaction Agreement On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. As a result of the Master Transaction Agreement, certain agreements that we had with EchoStar have been transferred to DISH Network. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. See Note 1 “ Recent Developments ” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement. Related Party Transactions with DISH Network “Satellite and transmission expenses” During the years ended December 31, 2019, 2018 and 2017, million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. As a result of the Master Transaction Agreement, discussed above, DISH Network is now a supplier of the vast majority of our transponder capacity. These amounts are recorded in “Satellite and transmission expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Satellite Capacity Leased from DISH Network . O n September 10, 2019, in connection with the Master Transaction Agreement DISH Network entered into with EchoStar on May 19, 2019, we began leasing satellite capacity on satellites owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: ● EchoStar X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the satellite capacity agreement we previously had with EchoStar for EchoStar X, XI and XIV was transferred to DISH Network and we began leasing satellite capacity on these satellites from a wholly-owned subsidiary of DISH Network as of the same date. ● EchoStar XVI. In December 2009, we entered into a transponder service agreement with EchoStar to lease all of the capacity on EchoStar XVI, a DBS satellite, after its service commencement date. EchoStar XVI was launched in November 2012 to replace EchoStar XV at the 61.5 degree orbital location and is currently in service. Effective December 21, 2012, we and EchoStar amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and EchoStar amended the transponder service agreement to, among other things, extend the initial term by one additional year and to reduce the term of the first renewal option by one year . Prior to expiration of the initial term, we had the option to renew for an additional five-year period. In May 2017, we exercised our first renewal option for an additional five-year period ending in January 2023. We also have the option to renew for an additional five-year period prior to expiration of the first renewal period in January 2023. There can be no assurance that the option to renew this agreement will be exercised. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place and use certain satellites at the 61.5 degree orbital location. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the transponder service agreement we previously had with EchoStar for EchoStar XVI was transferred to DISH Network and we began receiving transponder services from a wholly-owned subsidiary of DISH Network as of the same date. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term would expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term in September 2019, we had the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Upon in- orbit failure or end-of-life of the Nimiq 5 satellite, and in certain other circumstances, we had certain rights to receive service from EchoStar on a replacement satellite. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began receiving transponder services on the Nimiq 5 satellite from a wholly-owned subsidiary of DISH Network as of the same date and exercised our option to renew for a one-year period through September 2020. As discussed in Note 6, “Property and Equipment and Intangible Assets,” the Nimiq 5 satellite lease has been accounted for as a finance lease since September 2019. Accordingly, expenses related to this lease are no longer recorded in “Satellite and transmission expenses,” but rather in “Depreciation and amortization” and “Interest expense, net of amounts capitalized” on our Consolidated Statements of Operations and Comprehensive Income (Loss). During the year ended December 31, 2019, we recorded $11 million of “Depreciation and amortization expense” and $5 million of “Interest expense, net of amounts capitalized” related to Nimiq 5. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provides, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite. During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we received service from EchoStar on 24 DBS transponders. QuetzSat- 1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location while we and EchoStar explored alternative uses for the QuetzSat-1 satellite. In the interim, EchoStar provided us with alternate capacity at the 77 degree orbital location. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the QuetzSat-1 Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. Upon an in-orbit failure or end-of-life of the QuetzSat-1 satellite, and in certain other circumstances, we have certain rights to receive service from DISH Network on a replacement satellite. There can be no assurance that any options to renew the QuetzSat-1 Transponder Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the QuetzSat-1 Transponder Agreement was transferred to DISH Network and we began receiving transponder services on QuetzSat-1 from a wholly-owned subsidiary of DISH Network as of the same date. Our lease arrangement with DISH Network expires in November 2021. EchoStar XVIII Satellite. The EchoStar XVIII satellite was launched on June 18, 2016 and became operational as an in-orbit spare at the 61.5 degree orbital location during the third quarter 2016, at which time we began leasing it from a wholly-owned subsidiary of DISH Network. On May 14, 2019, we and DOLLC II entered into an agreement to sell our interests in the LMDS and MVDDS licenses in exchange for the EchoStar XVIII satellite. See Note 6 for further information. TT&C Agreement. Effective January 1, 2012, we entered into a TT&C agreement pursuant to which we receive TT&C services from EchoStar for certain satellites (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network. We began receiving TT&C services from a wholly-owned subsidiary of DISH Network as of the same date. “General and administrative expenses” During the year ended December 31, 2019, we incurred $3 million DISH Network. These amounts are recorded in “General and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. O n September 10, 2019, in connection with the Master Transaction Agreement DISH Network entered into with EchoStar on May 19, 2019 and we began leasing office space owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. The term of each lease is set forth below: ● Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado originally from EchoStar to us was for a period ending on December 31, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we began leasing all of 5701 S. Santa Fe Dr. in Littleton, Colorado from a wholly-owned subsidiary of DISH Network as of the same date. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. In connection with the completion of the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network, and, effective March 1, 2017, DISH Network and EchoStar amended this lease agreement to (i) terminate the lease of certain space at the portion of the property that was transferred to us and (ii) provide for the continued lease to us of certain space at the portion of the property that EchoStar retained. P ursuant to the Master Transaction Agreement, discussed above, t he portion of the property EchoStar retained was transferred to DISH Network , and on September 10, 2019, this lease was transferred to DISH Network and we began leasing certain space from a wholly-owned subsidiary of DISH Network as of the same date. Other Agreements – DISH Network Broadband, Wireless and Other Operations. We provide certain administrative, call center, installation, marketing and other services to DISH Network’s broadband, wireless and other operations. During the years ended December 31, 2019, 2018 and 2017, the costs associated with these services were Related Party Transactions with EchoStar Following the Spin-off, DISH Network and EchoStar have operated as separate publicly-traded companies and neither entity has any ownership interest in the other. However, a substantial majority of the voting power of the shares of both companies is owned beneficially by Charles W. Ergen, our Chairman, and by certain entities established by Mr. Ergen for the benefit of his family. In connection with and following the Spin-off, we and EchoStar have entered into certain agreements pursuant to which we obtain certain products, services and rights from EchoStar, EchoStar obtains certain products, services and rights from us, and we and EchoStar have indemnified each other against certain liabilities arising from our respective businesses. Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses. Pursuant to the Master Transaction Agreement, among other things, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. In connection with the Share Exchange and the Master Transaction Agreement, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. In addition, certain agreements that we had with EchoStar have terminated, and we entered into certain new agreements with EchoStar. We also may enter into additional agreements with EchoStar in the future. The following is a summary of the terms of our principal agreements with EchoStar that may have an impact on our financial condition and results of operations. “Trade accounts receivable” As of December 31, 2019 and 2018, trade accounts receivable from EchoStar was $1 million and $4 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Consolidated Balance Sheets. “Trade accounts payable” As of December 31, 2019 and 2018, trade accounts payable to EchoStar was $3 million and $6 million, respectively. These amounts are recorded in “Trade accounts payable” on our Consolidated Balance Sheets. “Equipment sales and other revenue” During the years ended December 31, 2019, 2018 and 2017, we received $6 million, $8 million and $3 million, respectively, for services provided to EchoStar. These amounts are recorded in “Equipment sales and other revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these revenues are discussed below. Real Estate Lease Agreements. DISH Network has entered into lease agreements pursuant to which DISH Network leases certain real estate to EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic areas, and EchoStar is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● El Paso Lease Agreement. During 2012, DISH Network began leasing certain space at 1285 Joe Battle Blvd., El Paso, Texas to EchoStar for an initial period ending on August 1, 2015, which also provides EchoStar with renewal options for four consecutive three-year terms. During the second quarter 2015, EchoStar exercised its first renewal option for a period ending on August 1, 2018 and in April 2018 EchoStar exercised its second renewal option for a period ending in August 2021. ● 90 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 90 Inverness Circle East, Englewood, Colorado for a period ending in February 2022. EchoStar has the option to renew this lease for four three-year periods. ● Cheyenne Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 530 EchoStar Drive, Cheyenne, Wyoming for a period ending in February 2019. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for twelve one-year periods. In connection with the Master Transaction Agreement, DISH Network and EchoStar amended this lease to provide EchoStar with certain space for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon 180 days ’ written notice prior to the end of the term . ● Gilbert Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 801 N. DISH Dr., Gilbert, Arizona for a period ending in March 2019. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for twelve one-year periods. This lease was terminated effective September 10, 2019. ● American Fork Occupancy License Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, we acquired the lease for certain space at 796 East Utah Valley Drive, American Fork, Utah, and we sublease certain space at this location to EchoStar for a period ending in August 2017. In June 2017, EchoStar exercised its five-year renewal option for a period ending in August 2022. This lease was terminated effective March 2019. Collocation and Antenna Space Agreements . In connection with the completion of the Share Exchange, effective March 1, 2017, we entered into certain agreements pursuant to which we will provide certain collocation and antenna space to HNS through February 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Englewood, Colorado and Spokane, Washington. During August 2017, we entered into certain other agreements pursuant to which we will provide certain collocation and antenna space to HNS through August 2022 at the following locations: Monee, Illinois and Spokane, Washington. HNS has the option to renew each of these agreements for four three-year periods. HNS may terminate certain of these agreements with 180 days ’ prior written notice to us at the following locations: New Braunfels, Texas; Englewood, Colorado; and Spokane, Washington. In September 2019, in connection with the Master Transaction Agreement, we entered into an agreement pursuant to which we provide HNS with certain additional collocation space in Cheyenne, Wyoming for a period ending in September 2020, with the option for HNS to renew for a one-year period, with prior written notice no more than 120 days but no less than 90 days prior to the end of the term. In October 2019, HNS provided a termination notice for its New Braunfels, Texas agreement to be effective May 2020. The fees for the services provided under these agreements depend, among other things, on the number of racks leased and/or antennas present at the location. “Satellite and transmission expenses” During the years ended December 31, 2019, 2018 and 2017, we incurred $198 million, $309 million and $346 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. Historically, EchoStar was the supplier of the vast majority of our transponder capacity. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, certain of these satellites were transferred to DISH Network. We are now leasing this satellite capacity from DISH Network. These amounts are recorded in “Satellite and transmission expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Satellite Capacity Leased from EchoStar. We have entered into certain satellite capacity agreements pursuant to which we lease certain capacity on certain satellites owned or leased by EchoStar. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: ● EchoStar VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar VII, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. The satellite capacity agreement for EchoStar VII expired on June 30, 2018. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, these satellites were transferred to DISH Network. ● EchoStar IX . We lease certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally have the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis. ● EchoStar XVI. In December 2009, we entered into a transponder service agreement with EchoStar to lease all of the capacity on EchoStar XVI, a DBS satellite, after its service commencement date. EchoStar XVI was launched in November 2012 to replace EchoStar XV at the 61.5 degree orbital location and is currently in service. Effective December 21, 2012, we and EchoStar amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and EchoStar amended the transponder service agreement to, among other things, extend the initial term by one additional year and to reduce the term of the first renewal option by one year . Prior to expiration of the initial term, we had the option to renew for an additional five-year period. In May 2017, we exercised our first renewal option for an additional five-year period ending in January 2023. We also have the option to renew for an additional five-year period prior to expiration of the first renewal period in January 2023. There can be no assurance that the option to renew this agreement will be exercised. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place and use certain satellites at the 61.5 degree orbital location. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, this satellite was transferred to DISH Network. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term in September 2019, we have the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Upon in- orbit failure or end-of-life of the Nimiq 5 satellite, and in certain other circumstances, we had certain rights to receive service from EchoStar on a replacement satellite. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network and we exercised our option to renew for a one-year period through September 2020. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provides, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite. During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we receive service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location while we and EchoStar explored alternative uses for the QuetzSat-1 satellite. In the interim, EchoStar provided us with alternate capacity at the 77 degree orbital location. During the first quarter 2013, we and EchoStar entered into an agreement pursuant to which we sublease five DBS transponders back to EchoStar. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the QuetzSat-1 Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. Upon an in-orbit failure or end-of-life of the QuetzSat-1 satellite, and in certain other circumstances, we had certain rights to receive service from EchoStar on a replacement satellite. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the QuetzSat-1 Transponder Agreement was transferred to DISH Network and 103 Degree Orbital Location/SES-3. In May 2012, EchoStar entered into a spectrum development agreement (the “103 Spectrum Development Agreement”) with Ciel Satellite Holdings Inc. (“Ciel”) to develop certain spectrum rights at the 103 degree orbital location (the “103 Spectrum Rights”). In June 2013, we and EchoStar entered into a spectrum development agreement (the “DISH 103 Spectrum Development Agreement”) pursuant to which we may use and develop the 103 Spectrum Rights. Both the 103 Spectrum Development Agreement and DISH 103 Spectrum Development Agreement were terminated on March 31, 2018. In connection with the 103 Spectrum Development Agreement, in May 2012, EchoStar also entered into a ten-year service agreement with Ciel pursuant to which EchoStar leases certain satellite capacity from Ciel on the SES-3 satellite at the 103 degree orbital location (the “103 Service Agreement”). In June 2013, we and EchoStar entered into an agreement pursuant to which we lease certain satellite capacity from EchoStar on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, we make certain monthly payments to EchoStar through the service term. Both the 103 Service Agreement and DISH 103 Service Agreement were terminated on March 31, 2018. TT&C Agreement. Effective January 1, 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we receive TT&C services from EchoStar for certain satellites (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network and now DISH Network provides these services to us. “General and administrative expenses” During the years ended December 31, 2019, 2018 and 2017, we incurred $20 million, $21 million and $29 million, respectively, for general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “General and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. We have entered into lease agreements pursuant to which we lease certain real estate from EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic area, and EchoStar is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado was for a period ending on December 31, 2019. In December 2019, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado was for a period ending on December 31, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. In connection with the completion of the Share Exchange, EchoStar transferred ownership of a portion of this property to us, and, effective March 1, 2017, we and EchoStar amended this lease agreement to (i) terminate the lease of certain space at the portion of the property that was transferred to us and (ii) provide for the continued lease to us of certain space at the portion of the property that EchoStar retained. Pursuant to the Master Transaction Agreement, discussed above, t he portion of the property EchoStar retained was transferred to DISH Network , and on Se |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies | ||
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments and recorded at fair value with changes recognized in “Other, net” within “Other Income (Expense)” on our 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. On February 28, 2017, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Share Exchange Agreement (the “Share Exchange Agreement”) that was previously entered into on January 31, 2017 (the “Share Exchange”). Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses, consisting primarily of the businesses that design, develop and distribute digital set-top boxes, provide satellite uplink services and develop and support streaming video technology, as well as certain investments in joint ventures, spectrum licenses, real estate properties and EchoStar’s In connection with the Share Exchange, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. See Note 17 for further information. As the Share Exchange was a transaction between entities that are under common control, accounting rules require that our Consolidated Financial Statements include the results of the Transferred Businesses for all periods presented, including periods prior to the completion of the Share Exchange. We initially recorded the Transferred Businesses at EchoStar’s historical cost basis. The difference between the historical cost basis of the Transferred Businesses and the net carrying value of the Tracking Stock was recorded in “Additional paid-in capital” on our Consolidated Balance Sheets. The results of the Transferred Businesses were prepared from separate records maintained by EchoStar for the periods prior to March 1, 2017, and may not necessarily be indicative of the conditions that would have existed, or the results of operations, if the Transferred Businesses had been operated on a combined basis with our subsidiaries. Our financial statements include the results of the Transferred Businesses as described above for all periods presented, including periods prior to the completion of the Share Exchange. | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for credit losses, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, , finance leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents as of December 31, 2019 and 2018 may consist of money market funds, government bonds, corporate notes and commercial paper. The cost of these investments approximates their fair value. | |
Marketable Investment Securities | Marketable Investment Securities All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. Historically, we reported temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. Subsequent to the adoption of ASU 2016-13 Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) during the first quarter of 2020, we report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We evaluate our debt investment portfolio to determine whether declines in the fair value of these securities are related to credit loss. Management estimates credit losses on marketable debt securities utilizing a credit loss impairment model on a quarterly basis. We estimate the expected credit losses, measured over the contractual life of marketable debt securities considering relevant issuer specific factors, including, but not limited to, a decrease in credit ratings or an entities ability to pay. | Marketable Investment Securities Historically, we classified all marketable investment securities as available-for-sale, except for investments which were accounted for as trading securities, and adjusted the carrying amount of our available-for-sale securities to fair value and reported the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Consolidated Balance Sheets. Our trading securities were 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). Subsequent to the adoption of ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) during the first quarter 2018, 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. We adjust the carrying amount of our debt securities to fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Consolidated Balance Sheets. Declines in the fair value of a marketable debt security which are determined to be “other-than-temporary” are recognized on our Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment. We evaluate our debt investment portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other-than-temporary. This quarterly evaluation consists of reviewing, among other things: ● the fair value of our debt investments compared to the carrying amount, ● the historical volatility of the price of each security, and ● any market and company specific factors related to each security. Declines in the fair value of debt investments below cost basis are generally accounted for as follows: Length of Time Investment Has Been In a Continuous Treatment of the Decline in Value Loss Position (absent specific factors to the contrary) Less than six months Generally, considered temporary. Six to nine months Evaluated on a case by case basis to determine whether any company or market-specific factors exist indicating that such decline is other-than-temporary. Greater than nine months Generally, considered other-than-temporary. The decline in value is recorded as a charge to earnings. Additionally, in situations where the fair value of a debt security is below its carrying amount, we consider the decline to be other-than-temporary and record a charge to earnings if any of the following factors apply: ● we have the intent to sell the security, ● it is more likely than not that we will be required to sell the security before maturity or recovery, or ● we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. In general, we use the first in, first out method to determine the cost basis on sales of marketable investment securities. |
Trade Accounts Receivable | Trade Accounts Receivable Prior to January 1, 2020, management estimated the amount of allowance for doubtful accounts for potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. Subsequent to January 1, 2020 due to the adoption of ASU 2016-13, trade accounts receivable are recorded at amortized cost less an allowance for expected credit losses that are not expected to be recovered. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for expected credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Management estimates credit losses on financial assets, including our trade accounts receivable, utilizing a current expected credit loss impairment model. We estimate the expected credit losses, measured over the contractual life of an asset considering relevant historical loss information, credit quality of the customer base, current economic conditions and forecasts of future economic conditions. In determining the allowance for credit losses, management groups similar types of financial assets with consistent risk characteristics. Pools identified by management include but are not limited to residential customers, commercial customers and advertising services. The risk characteristics of the financial asset portfolios are monitored by management and reviewed periodically. The forecasts for future economic conditions are based on several factors including, but not limited to, changes in the unemployment rate, external economic forecasts and current collection rates. Our estimates of the allowance for credit losses may not be indicative of our actual credit losses requiring additional charges to be incurred to reflect the actual amount collected. | Trade Accounts Receivable Management estimates the amount of required allowances for the potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. However, past experience may not be indicative of future collections and therefore additional charges could be incurred in the future to reflect differences between estimated and actual collections. |
Inventory | Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The cost of manufactured inventory includes the cost of materials, labor, freight-in, royalties and manufacturing overhead. | |
Property and Equipment | Property and Equipment Property and equipment are stated at amortized cost less impairment losses, if any. Our set-top boxes are generally capitalized when they are installed in customers’ homes. The costs of satellites under construction, including interest and certain amounts prepaid under our satellite service agreements, are capitalized during the construction phase, assuming the eventual successful launch and in-orbit operation of the satellite. If a satellite were to fail during launch or while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from two to 40 years . Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized. Costs related to the procurement and development of software for internal-use are capitalized and amortized using the straight-line method over the estimated useful life of the software. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review our long-lived assets and identifiable finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For assets which are held and used in operations, the asset would be impaired if the carrying amount of the asset (or asset group) exceeded its undiscounted future net cash flows. Once an impairment is determined, the actual impairment recognized is the difference between the carrying amount and the fair value as estimated using one of the following approaches: income, cost and/or market. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The carrying amount of a long-lived asset or asset group is considered impaired when the anticipated undiscounted cash flows from such asset or asset group is less than its carrying amount. In that event, a loss is recorded in “Impairment of long-lived assets” on our Consolidated Statements of Operations and Comprehensive Income (Loss) based on the amount by which the carrying amount exceeds the fair value of the long-lived asset or asset group. Fair value, using the income approach, is determined primarily using a discounted cash flow model that uses the estimated cash flows associated with the asset or asset group under review, discounted at a rate commensurate with the risk involved. Fair value, utilizing the cost approach, is determined based on the replacement cost of the asset reduced for, among other things, depreciation and obsolescence. Fair value, utilizing the market approach, benchmarks the fair value against the carrying amount. See Note 6 for further information. DBS Satellites . We currently evaluate our DBS satellite fleet for impairment as one asset group whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2019. | |
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. Intangible assets that have finite lives are amortized over their estimated useful lives and tested for impairment as described above for long-lived assets. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our 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 2019, 2018 and 2017, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS licenses exceeds its 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. MVDDS Licenses. During 2018 and 2017, our multichannel video distribution and data service (“MVDDS”) wireless spectrum licenses were assessed as a single unit of accounting. For 2018 and 2017, management assessed these licenses quantitatively. Our quantitative assessment in each year for these licenses consisted of a market approach. The market approach uses prior transactions including auctions to estimate the fair value of the licenses. In conducting these quantitative assessments, we determined that the fair value of these licenses exceeded their carrying amount. | |
Business Combinations | Business Combinations When we acquire a business, 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 most identifiable assets, liabilities, noncontrolling interests and goodwill acquired to be recorded at fair value. 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 are recorded on a straight-line basis over an average finite useful life primarily ranging from approximately five to 20 years or in relation to the estimated discounted cash flows over the life of the intangible asset. | |
Long-Term Deferred Revenue and Other Long-Term Liabilities | Long-Term Deferred Revenue and Other Long-Term Liabilities Certain programmers provide us up-front payments. Such amounts are deferred and recognized as reductions to “Subscriber-related expenses” on a straight-line basis over the relevant remaining contract term (generally up to ten years ). The current and long-term portions of these deferred credits are recorded on our Consolidated Balance Sheets in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities,” respectively. | |
Sales Taxes | Sales Taxes We account for sales taxes imposed on our goods and services on a net basis on our Consolidated Statements of Operations and Comprehensive Income (Loss). Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. | |
Income Taxes | 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 June 30, 2020 and December 31, 2019, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses or net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 8 for the fair value of our long-term debt. | 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, 2019 and 2018, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 8 for the fair value of our long-term debt. |
Deferred Debt Issuance Costs | Deferred Debt Issuance Costs Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 8 for further information. | |
Revenue Recognition | Revenue Recognition Our revenue is primarily derived from Pay-TV programming services that we provide to our subscribers. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 11 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year . Revenues arising from our in-home services that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed. For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606, Revenue from Contracts with Customers Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month. Contract Balances The timing of revenue recognition generally differs from the timing of invoicing to customers. When revenue is recognized prior to invoicing, we record a receivable. When revenue is recognized subsequent to invoicing, we record deferred revenue. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts as we apply a practical expedient when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. See Note 12 for further information, including balance and activity detail about our allowance for credit losses and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the three months ended June 30, 2020 and 2019, we capitalized million for the three months ended June 30, 2020 and 2019, respectively. During the six months ended June 30, 2020 and 2019, we capitalized million for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020 and December 31, 2019, we had a total of million, respectively, capitalized on our Condensed Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). | Revenue Recognition Our revenue is primarily derived from Pay-TV programming services that we provide to our subscribers. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 14 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year . Revenues arising from our in-home services that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed. For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606 (“ASC 606”) is one month and as a result the revenue recognized for these subscribers for a given month is equal to the amount billed in that month, except for certain nonrefundable upfront fees that are accounted for as material rights, as discussed above. Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month. Contract Balances The timing of revenue recognition generally differs from the timing of invoicing to customers. When revenue is recognized prior to invoicing, we record a receivable. When revenue is recognized subsequent to invoicing, we record deferred revenue. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts as we apply a practical expedient when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. See Note 15 for further information, including balance and activity detail about our allowance for doubtful accounts and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the years ended December 31, 2019 and 2018, we capitalized $207 million and $183 million, respectively, under these programs. The amortization expense related to these programs was $76 million and $28 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, we had a total of $300 million and $169 million capitalized on our Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Impact of Adoption of ASU 2014-09 On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 Revenue from Contracts with Customers We adopted ASU 2014-09, as modified, and now codified as ASC 606 and Accounting Standard Codification Topic 340-40 (“ASC 340-40”) on January 1, 2018, using the modified retrospective method. Under that method, we applied the new guidance to all open contracts existing as of January 1, 2018, recognizing in beginning retained earnings an adjustment for the cumulative effect of the change, which was |
Leases | Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 12 years , some of which include renewal options , and some of which include options to terminate the leases within one year . We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our Condensed Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Condensed Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 7 for further information on our lease expenses. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 13 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into a Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. See Note 13 “ Related Party Transactions – Master Transaction Agreement” We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The revenue related to equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. Impact of Adoption of ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (“ASU 2016-02”) and has modified the standard thereafter. We adopted ASU 2016-02, as modified, on January 1, 2019 using the modified retrospective method. Under the modified retrospective method, we applied the new guidance to all leases that commenced before and were existing as of January 1, 2019. The adoption of ASU 2016-02 had no impact on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating, investing and financing activities on our Condensed Consolidated Statements of Cash Flows. | Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to twelve years , some of which include renewal options , and some of which include options to terminate the leases within one year . We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our 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. When our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 17 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into the Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. Recent Developments” December 31 We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. Impact of Adoption of ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (“ASU 2016-02”) and has modified the standard thereafter. We adopted ASU 2016-02, as modified, on January 1, 2019 using the modified retrospective method. Under the modified retrospective method, we applied the new guidance to all leases that commenced before and were existing as of January 1, 2019. The adoption of ASU 2016-02 had no impact on our Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating, investing and financing activities on our Consolidated Statements of Cash Flows. The adoption of ASU 2016-02 impacted our December 31, 2019 Consolidated Balance Sheets, including the reclassification of our deferred rent liabilities to an operating lease asset, as follows: Consolidated Balance Sheets DISH DBS (as would have been reported under previous standards) Impact of adopting ASU 2016-02 DISH DBS (as currently reported) (In thousands) As of December 31, 2019 Operating lease assets $ — $ 553,576 $ 553,576 Total assets $ 3,832,983 $ 553,576 $ 4,386,559 Other accrued expenses $ 715,361 $ 202,972 $ 918,333 Operating lease liabilities $ — $ 350,155 $ 350,155 Long-term deferred revenue and other long-term liabilities $ 207,543 $ 449 $ 207,992 Total liabilities $ 14,767,605 $ 553,576 $ 15,321,181 Total stockholder's equity (deficit) $ (10,934,622) $ — $ (10,934,622) Total liabilities and stockholder's equity (deficit) $ 3,832,983 $ 553,576 $ 4,386,559 |
Subscriber-Related Expenses | Subscriber-Related Expenses The cost of television programming distribution rights is generally incurred on a per subscriber basis and various upfront carriage payments are recognized when the related programming is distributed to subscribers. Long-term flat rate programming contracts are 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. “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss) principally include programming expenses, costs for Pay-TV services incurred in connection with our in-home service and call center operations, billing costs, refurbishment and repair costs related to DBS receiver systems, subscriber retention and other variable subscriber expenses. These costs are recognized as the services are performed or as incurred. | |
Cost of Sales - Equipment and Other | Cost of Sales – Equipment and Other Costs include the cost of non-subsidized sales of DBS accessories and the cost of sales of digital receivers and related components to third-party pay-TV providers, both of which include freight and royalties, costs associated with in-home services, and costs related to services and other agreements with EchoStar. Costs are generally recognized as products are delivered to customers and the related revenue is recognized. | |
Subscriber Acquisition Costs | Subscriber Acquisition Costs Subscriber acquisition costs on our Consolidated Statements of Operations and Comprehensive Income (Loss) consist of costs incurred to acquire new Pay-TV subscribers through independent third-party retailers, third-party marketing agreements and our direct sales distribution channel. Subscriber acquisition costs include the following line items from our Consolidated Statements of Operations and Comprehensive Income (Loss): ● “Cost of sales - subscriber promotion subsidies” includes the cost of our DBS receiver systems sold to independent third-party retailers and other distributors of our equipment and DBS receiver systems sold directly by us to DISH TV subscribers. ● “Other subscriber acquisition costs” includes net costs related to promotional incentives and costs related to installation and other promotional subsidies for our DISH TV services as well as our direct sales efforts and commissions for our Sling TV services. ● “Subscriber acquisition advertising” includes advertising and marketing expenses related to the acquisition of new Pay-TV subscribers. Advertising costs are expensed as incurred. We characterize amounts paid to our independent third-party retailers as consideration for equipment installation services and for equipment buydowns (incentives and rebates) as a reduction of revenue. We expense payments for equipment installation services as “Other subscriber acquisition costs.” Our payments for equipment buydowns represent a partial or complete return of the independent third-party retailer’s purchase price and are, therefore, netted against the proceeds received from the independent third-party retailer. We report the net cost from our various sales promotions through our independent third-party retailer network as a component of “Other subscriber acquisition costs.” | |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development costs totaled Research and development costs totaled | Research and Development Research and development costs are expensed as incurred. Research and development costs totaled $21 million, $24 million and $33 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
New Accounting Pronouncements | New Accounting Pronouncements Financial Instruments – Credit Losses. On June 16, 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the way entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net earnings. This standard will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We currently expect that the adoption of ASU 2016-13 will have an immaterial impact on our Consolidated Financial Statements and related disclosures. Fair Value Measurement. Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of adoption of ASU 2016-02 impacted our consolidated balance sheets | Consolidated Balance Sheets DISH DBS (as would have been reported under previous standards) Impact of adopting ASU 2016-02 DISH DBS (as currently reported) (In thousands) As of December 31, 2019 Operating lease assets $ — $ 553,576 $ 553,576 Total assets $ 3,832,983 $ 553,576 $ 4,386,559 Other accrued expenses $ 715,361 $ 202,972 $ 918,333 Operating lease liabilities $ — $ 350,155 $ 350,155 Long-term deferred revenue and other long-term liabilities $ 207,543 $ 449 $ 207,992 Total liabilities $ 14,767,605 $ 553,576 $ 15,321,181 Total stockholder's equity (deficit) $ (10,934,622) $ — $ (10,934,622) Total liabilities and stockholder's equity (deficit) $ 3,832,983 $ 553,576 $ 4,386,559 |
Supplemental Data - Statement_2
Supplemental Data - Statements of Cash Flows (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Supplemental Data - Statements of Cash Flows | ||
Schedule of supplemental cash flow and other non-cash data | For the Six Months Ended June 30, 2020 2019 (In thousands) Cash paid for interest $ 329,923 $ 382,391 Cash received for interest 1,962 8,528 Cash paid for income taxes 3,205 8,845 Cash paid for income taxes to DISH Network 176,964 152,526 Capitalized interest — 440 Reclassification of a receivable from noncurrent to current — 138,210 | For the Years Ended December 31, 2019 2018 2017 (In thousands) Cash paid for interest $ 765,510 $ 793,506 $ 878,772 Cash received for interest 30,041 6,043 9,855 Cash paid for income taxes 19,485 18,683 29,961 Cash paid for income taxes to DISH Network 245,028 302,329 408,265 Capitalized interest 440 1,071 481 |
Marketable Investment Securit_2
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 June 30, December 31, 2020 2019 (In thousands) Marketable investment securities: Current marketable investment securities $ 31 $ — Restricted marketable investment securities (1) — 390 Total marketable investment securities 31 390 Restricted cash and cash equivalents (1) 61,349 60,677 Other investment securities: Other investment securities 96,886 106,874 Total other investment securities 96,886 106,874 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 158,266 $ 167,941 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets. | As of December 31, 2019 2018 (In thousands) Marketable investment securities: Current marketable investment securities: Trading/equity $ — $ 2,370 Other — 147,370 Total current marketable investment securities — 149,740 Restricted marketable investment securities (1) 390 67,019 Total marketable investment securities 390 216,759 Restricted cash and cash equivalents (1) 60,677 578 Other investment securities: Other investment securities 106,874 108,308 Total other investment securities 106,874 108,308 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 167,941 $ 325,645 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Consolidated Balance Sheets. |
Schedule of components of available-for-sale investments | As of December 31, 2019 2018 Marketable Marketable Investment Unrealized Investment Unrealized Securities Gains Losses Net Securities Gains Losses Net (In thousands) Debt securities (including restricted): U.S. Treasury and agency securities $ 390 $ — $ — $ — $ 66,823 $ 40 $ (19) $ 21 Commercial paper — — — — 45,938 — — — Corporate securities — — — — 100,662 11 (113) (102) Other — — — — 966 — — — Total $ 390 $ — $ — $ — $ 214,389 $ 51 $ (132) $ (81) | |
Schedule of investments measured at fair value on a recurring basis | As of June 30, 2020 December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 63,344 $ 62,740 $ 604 $ — $ 60,677 $ 60,677 $ — $ — Debt securities (including restricted): U.S. Treasury and agency securities $ — $ — $ — $ — $ 390 $ 390 $ — $ — Commercial paper 31 — 31 — — — — — Corporate securities — — — — — — — — Other — — — — — — — — Total $ 31 $ — $ 31 $ — $ 390 $ 390 $ — $ — | As of December 31, 2019 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 60,677 $ 60,677 $ — $ — $ 114,464 $ 12,493 $ 101,971 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 390 $ 390 $ — $ — $ 66,823 $ 66,823 $ — $ — Commercial paper — — — — 45,938 — 45,938 — Corporate securities — — — — 100,662 — 100,662 — Other — — — — 966 — 966 — Equity securities — — — — 2,370 2,370 — — Total $ 390 $ 390 $ — $ — $ 216,759 $ 69,193 $ 147,566 $ — |
Gains and Losses on Sales and Changes in Carrying Amounts of Investments | For the Three Months Ended For the Six Months Ended June 30, June 30, Other, net: 2020 2019 2020 2019 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ — $ 829 $ — $ 3,599 Costs related to early redemption of debt — — — (439) Equity in earnings of affiliates (399) 2,297 (121) 1,353 Other 247 5 914 51 Total $ (152) $ 3,131 $ 793 $ 4,564 | For the Years Ended December 31, Other, net: 2019 2018 2017 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ 3,119 $ 5,313 $ 87,020 Costs related to early redemption of debt — (3,261) (1,470) Gain (loss) on sale of subsidiary — 7,004 — Equity in earnings of affiliates 3,514 (2,110) 2,163 Other 976 2,048 798 Total $ 7,609 $ 8,994 $ 88,511 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Inventory | ||
Schedule of inventory | As of June 30, December 31, 2020 2019 (In thousands) Finished goods $ 249,605 $ 254,240 Work-in-process and service repairs 34,245 34,120 Raw materials 17,558 33,623 Total inventory $ 301,408 $ 321,983 | As of December 31, 2019 2018 (In thousands) Finished goods $ 254,240 $ 215,150 Work-in-process and service repairs 34,120 56,871 Raw materials 33,623 18,676 Total inventory $ 321,983 $ 290,697 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Property and Equipment | ||
Schedule of property and equipment | Depreciable As of Life June 30, December 31, (In Years) 2020 2019 (In thousands) Equipment leased to customers 2 - 5 $ 1,779,445 $ 1,837,503 EchoStar XV 15 277,658 277,658 EchoStar XVIII 15 411,255 411,255 Satellites acquired under finance lease agreements 15 398,107 398,107 Furniture, fixtures, equipment and other 2 - 20 1,934,783 1,894,629 Buildings and improvements 5 - 40 294,342 289,421 Land - 13,186 13,186 Construction in progress - 62,862 70,081 Total property and equipment 5,171,638 5,191,840 Accumulated depreciation (3,509,710) (3,440,267) Property and equipment, net $ 1,661,928 $ 1,751,573 | Depreciable As of Life December 31, December 31, (In Years) 2019 2018 (In thousands) Equipment leased to customers 2 -5 $ 1,837,503 $ 1,980,808 EchoStar XV 15 277,658 277,658 EchoStar XVIII (1) 15 411,255 — Satellites acquired under finance lease agreements (2)(3) 15 398,107 499,819 Furniture, fixtures, equipment and other 2 -20 1,894,629 1,820,883 Buildings and improvements 5 -40 289,421 289,244 Land - 13,186 13,186 Construction in progress - 70,081 47,077 Total property and equipment 5,191,840 4,928,675 Accumulated depreciation (3,440,267) (3,550,726) Property and equipment, net $ 1,751,573 $ 1,377,949 (1) On May 14, 2019, we and DISH Orbital II L.L.C (“DOLLC II”), an indirect wholly-owned subsidiary of DISH Network, entered into an agreement to sell our interests in the Local Multipoint Distribution Service (“LMDS”) and MVDDS licenses in exchange for the EchoStar XVIII satellite, including its related in-orbit incentive obligations of approximately $18 million (the “Satellite and Spectrum Transaction”). See Note 17 for further information. (2) The Ciel II satellite was previously classified as a finance lease, with a cost basis of $277 million, however, as a result of an amendment, which was effective during the first quarter 2019, Ciel II is now accounted for as an operating lease. (3) The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease, with a cost basis of $175 million. |
Schedule of depreciation and amortization expense | For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Equipment leased to customers $ 69,489 $ 86,453 $ 149,171 $ 194,589 Satellites 23,796 12,920 47,593 23,575 Buildings, furniture, fixtures, equipment and other 29,584 36,227 61,190 72,551 Total depreciation and amortization $ 122,869 $ 135,600 $ 257,954 $ 290,715 | For the Years Ended December 31, 2019 2018 2017 (In thousands) Equipment leased to customers $ 370,867 $ 437,342 $ 539,434 Satellites 65,441 61,045 61,045 Buildings, furniture, fixtures, equipment and other 141,040 162,073 141,293 Total depreciation and amortization $ 577,348 $ 660,460 $ 741,772 |
Schedule of pay-TV satellite fleet | Degree Launch Orbital Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 N/A EchoStar XVIII June 2016 61.5 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from DISH Network (2): EchoStar X February 2006 110 February 2021 EchoStar XI July 2008 110 September 2021 EchoStar XIV March 2010 119 February 2023 EchoStar XVI November 2012 61.5 January 2023 Nimiq 5 (3) September 2009 72.7 September 2020 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2021 (1) See Note 13 for further information on our Related Party Transactions with EchoStar. (2) See Note 13 for further information on our Related Party Transactions with DISH Network. (3) The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease. | Degree Launch Orbital Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 N/A EchoStar XVIII June 2016 61.5 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from DISH Network (2): EchoStar X (3) February 2006 110 February 2021 EchoStar XI (3) July 2008 110 September 2021 EchoStar XIV (3) March 2010 119 February 2023 EchoStar XVI (3) November 2012 61.5 January 2023 Nimiq 5 (3)(4) September 2009 72.7 September 2020 QuetzSat-1 (3) September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2021 (1) See Note 17 for further information on our Related Party Transactions with EchoStar. (2) See Note 17 for further information on our Related Party Transactions with DISH Network. (3) On May 19, 2019, DISH Network entered into the Master Transaction Agreement with EchoStar. Upon the closing of the Master Transaction Agreement on September 10, 2019, these satellites and satellite service agreements leased from EchoStar were transferred to DISH Network. See Note 1 “ Recent Developments” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31 , 2019 for further information on the Master Transaction Agreement. (4) The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease. |
Schedule of identifiable intangibles subject to amortization | As of December 31, 2019 2018 Intangible Accumulated Intangible Accumulated Assets Amortization Assets Amortization (In thousands) Technology-based $ 58,162 $ (53,447) $ 58,162 $ (51,204) Trademarks 35,010 (30,655) 35,010 (27,106) Contract-based 4,500 (4,500) 4,500 (4,500) Customer relationships 23,632 (23,632) 23,632 (23,632) Total $ 121,304 $ (112,234) $ 121,304 $ (106,442) | |
Schedule of estimated future amortization of identifiable intangible assets | For the Years Ended December 31, 2020 $ 3,285 2021 835 2022 666 2023 654 2024 654 Thereafter 2,976 Total $ 9,070 | |
Schedule of FCC Authorizations | As of December 31, 2019 2018 (In thousands) DBS Licenses $ 611,794 $ 611,794 MVDDS Licenses (1) — 24,000 Capitalized Interest — 1,552 Total $ 611,794 $ 637,346 |
Leases (Tables)
Leases (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Leases | ||
Summary of the components of lease expense | For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Operating lease cost $ 61,808 $ 81,762 $ 123,523 $ 162,048 Short-term lease cost (1) 3,733 12,141 6,400 31,426 Finance lease cost: Amortization of right-of-use assets 12,300 3,805 24,748 9,913 Interest on lease liabilities 4,534 1,099 9,332 2,280 Total finance lease cost 16,834 4,904 34,080 12,193 Total lease costs $ 82,375 $ 98,807 $ 164,003 $ 205,667 (2) Leases that have terms of 12 months or less . | For the Year Ended December 31, 2019 (In thousands) Operating lease cost $ 297,181 Short-term lease cost (1) 37,686 Finance lease cost: Amortization of right-of-use assets 29,134 Interest on lease liabilities 9,826 Total finance lease cost 38,960 Total lease costs $ 373,827 (1) Leases that have terms of 12 months or less. |
Summary of Supplemental cash flow information related to leases | For the Six Months Ended June 30, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 123,811 $ 164,159 Operating cash flows from finance leases $ 9,332 $ 2,295 Financing cash flows from finance leases $ 23,227 $ 10,454 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 17,967 $ 61,872 Finance leases $ — $ — Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 $ 730,180 | For the Year Ended December 31, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 301,524 Operating cash flows from finance leases $ 9,826 Financing cash flows from finance leases $ 31,841 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 81,198 Finance leases $ 175,311 Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 $ 730,180 |
Summary of supplemental balance sheet information related to leases | As of June 30, 2020 December 31, 2019 (In thousands) Operating Leases: Operating lease assets $ 471,987 $ 553,576 Other current liabilities $ 204,138 $ 202,972 Operating lease liabilities 267,154 350,155 Total operating lease liabilities $ 471,292 $ 553,127 Finance Leases: Property and equipment, gross $ 398,875 $ 399,764 Accumulated depreciation (226,325) (201,873) Property and equipment, net $ 172,550 $ 197,891 Other current liabilities $ 50,860 $ 48,678 Other long-term liabilities 137,949 163,939 Total finance lease liabilities $ 188,809 $ 212,617 Weighted Average Remaining Lease Term: Operating leases 3.1 years 3.4 years Finance leases 3.8 years 4.2 years Weighted Average Discount Rate: Operating leases 9.0% 9.1% Finance leases 9.5% 9.5% | As of December 31, 2019 (In thousands) Operating Leases: Operating lease right-of-use assets $ 553,576 Other current liabilities $ 202,972 Operating lease liabilities 350,155 Total operating lease liabilities $ 553,127 Finance Leases: Property and equipment, gross $ 399,764 Accumulated depreciation (201,873) Property and equipment, net $ 197,891 Other current liabilities $ 48,678 Other long-term liabilities 163,939 Total finance lease liabilities $ 212,617 Weighted Average Remaining Lease Term: Operating leases 3.4 years Finance leases 4.2 years Weighted Average Discount Rate: Operating leases 9.1% Finance leases 9.5% |
Summary of maturities of operating lease liabilities | Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2020 (remaining six months) $ 121,315 $ 33,139 $ 154,454 2021 205,137 66,279 271,416 2022 132,452 50,226 182,678 2023 27,439 42,862 70,301 2024 11,376 32,147 43,523 Thereafter 42,414 — 42,414 Total lease payments 540,133 224,653 764,786 Less: Imputed interest (68,841) (35,844) (104,685) Total 471,292 188,809 660,101 Less: Current portion (204,138) (50,860) (254,998) Long-term portion of lease obligations $ 267,154 $ 137,949 $ 405,103 | Maturities of lease liabilities as of December 31, 2019 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2020 $ 239,660 $ 66,285 $ 305,945 2021 199,062 66,279 265,341 2022 127,300 50,227 177,527 2023 24,571 42,862 67,433 2024 9,191 32,147 41,338 Thereafter 42,008 42,008 Total lease payments 641,792 257,800 899,592 Less: Imputed interest (88,665) (45,183) (133,848) Total 553,127 212,617 765,744 Less: Current portion (202,972) (48,678) (251,650) Long-term portion of lease obligations $ 350,155 $ 163,939 $ 514,094 |
Summary of maturities of finance lease liabilities | Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2020 $ 239,660 $ 66,285 $ 305,945 2021 199,062 66,279 265,341 2022 127,300 50,227 177,527 2023 24,571 42,862 67,433 2024 9,191 32,147 41,338 Thereafter 42,008 42,008 Total lease payments 641,792 257,800 899,592 Less: Imputed interest (88,665) (45,183) (133,848) Total 553,127 212,617 765,744 Less: Current portion (202,972) (48,678) (251,650) Long-term portion of lease obligations $ 350,155 $ 163,939 $ 514,094 |
Long-Term Debt and Finance Le_2
Long-Term Debt and Finance Lease Obligations (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Long-Term Debt and Finance Lease Obligations | ||
Schedule of carrying and fair values of the entity's debt facilities | As of June 30, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value (In thousands) 5 1/8% Senior Notes due 2020 (1) $ — $ — $ 1,100,000 $ 1,110,208 6 3/4% Senior Notes due 2021 (2) 2,000,000 2,045,100 2,000,000 2,109,420 5 7/8% Senior Notes due 2022 2,000,000 2,043,040 2,000,000 2,129,580 5 % Senior Notes due 2023 1,500,000 1,495,545 1,500,000 1,543,770 5 7/8% Senior Notes due 2024 2,000,000 2,000,340 2,000,000 2,049,080 7 3/4% Senior Notes due 2026 2,000,000 2,130,880 2,000,000 2,128,900 Other notes payable 25,996 25,996 25,996 25,996 Subtotal 9,525,996 $ 9,740,901 10,625,996 $ 11,096,954 Unamortized deferred financing costs and debt discounts, net (13,581) (16,250) Finance lease obligations (3) 188,809 212,617 Total long-term debt and finance lease obligations (including current portion) $ 9,701,224 $ 10,822,363 (4) On May 1, 2020, we redeemed the principal balance of our 5 1/8% Senior Notes due 2020. (5) Our 6 3/4% Senior Notes due 2021 mature on June 1, 2021 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Condensed Consolidated Balance Sheets as of June 30, 2020. (6) Disclosure regarding fair value of finance leases is not required. | As of December 31, 2019 2018 Carrying Fair Value Carrying Fair Value (In thousands) 7 7/8% Senior Notes due 2019 (1) — — 1,317,372 1,343,298 5 1/8% Senior Notes due 2020 (2) 1,100,000 1,110,208 1,100,000 1,089,957 6 3/4% Senior Notes due 2021 2,000,000 2,109,420 2,000,000 1,974,940 5 7/8% Senior Notes due 2022 2,000,000 2,129,580 2,000,000 1,833,140 5 % Senior Notes due 2023 1,500,000 1,543,770 1,500,000 1,247,445 5 7/8% Senior Notes due 2024 2,000,000 2,049,080 2,000,000 1,611,960 7 3/4% Senior Notes due 2026 2,000,000 2,128,900 2,000,000 1,653,720 Other notes payable 25,996 25,996 10,346 10,346 Subtotal 10,625,996 $ 11,096,954 11,927,718 $ 10,764,806 Unamortized deferred financing costs and debt discounts, net (16,250) (23,215) Finance lease obligations (3) 212,617 66,984 Total long-term debt and finance lease obligations (including current portion) $ 10,822,363 $ 11,971,487 (1) On September 3, 2019, we redeemed the principal balance of our 7 7/8% Senior Notes due 2019. (2) Our 5 1/8% Senior Notes due 2020 mature on May 1, 2020 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2019. We will either fund this obligation from cash and marketable investment securities balances at that time and/or advances from our parent, DISH Network or, depending on market conditions, we may refinance this obligation, in whole or in part. (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 1/8% Senior Notes due 2020 (1) May 1 and November 1 $ 56,375 6 3/4% Senior Notes due 2021 June 1 and December 1 $ 135,000 5 7/8% Senior Notes due 2022 January 15 and July 15 $ 117,500 5% Senior Notes due 2023 March 15 and September 15 $ 75,000 5 7/8% Senior Notes due 2024 May 15 and November 15 $ 117,500 7 3/4% Senior Notes due 2026 January 1 and July 1 $ 155,000 (1) Our 5 1/8% Senior Notes due 2020 mature on May 1, 2020 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2019. | |
Schedule of other long term debt and capital lease obligations | As of December 31, 2019 2018 (In thousands) Satellites and other finance lease obligations $ 212,617 $ 66,984 Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6.0% 25,996 10,346 Total 238,613 77,330 Less: current portion (51,108) (21,155) Other long-term debt and finance lease obligations, net of current portion $ 187,505 $ 56,175 |
Income Taxes and Accounting f_2
Income Taxes and Accounting for Uncertainty in Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 2018 2017 (In thousands) Current (benefit) provision: Federal $ 208,821 $ 273,632 $ 356,759 State 48,417 64,534 54,133 Foreign 6,203 4,616 3,736 Total current (benefit) provision 263,441 342,782 414,628 Deferred (benefit) provision: Federal 11,243 (25,934) (308,028) State (1,987) (123) 11,954 Increase (decrease) in valuation allowance 2,054 1,580 (938) Total deferred (benefit) provision 11,310 (24,477) (297,012) Total (benefit) provision $ 274,751 $ 318,305 $ 117,616 |
Schedule of reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes | For the Years Ended December 31, 2019 2018 2017 % of pre-tax income/(loss) Statutory rate 21.0 21.0 35.0 State income taxes, net of federal benefit 3.6 4.4 4.2 Tax Reform Act (1) — — (34.5) Nondeductible/Nontaxable items (2) — — 11.5 Other, net 0.3 (0.8) (2.2) Total (benefit) provision for income taxes 24.9 24.6 14.0 (1) On December 22, 2017, the Tax Reform Act was enacted, which, among other things, lowered the federal statutory corporate tax rate effective January 1, 2018 from 35% to 21% . Consequently, we remeasured our deferred tax assets and liabilities as of December 31, 2017 which positively impacted our “Income tax (provision) benefit, net” by approximately $291 million. (2) During the year ended December 31, 2017, we recorded $255 million of “Litigation expense” related to the FTC Action on our Consolidated Statements of Operations and Comprehensive Income (Loss). Any eventual payments made with respect to the FTC Action may not be deductible for tax purposes, which had a negative impact on our effective tax rate for the year ended December 31, 2017. The tax deductibility of any eventual payments made with respect to the FTC Action may change, based upon, among other things, further developments in the FTC Action, including final adjudication of the FTC Action. See Note 12 for further information. |
Schedule of deferred tax assets and liabilities | As of December 31, 2019 2018 (In thousands) Deferred tax assets: NOL, interest, credit and other carryforwards $ 12,323 $ 10,915 Accrued and prepaid expenses 96,974 — Stock-based compensation 19,719 21,198 Deferred revenue 17,238 18,361 Total deferred tax assets 146,254 50,474 Valuation allowance (9,521) (7,467) Deferred tax asset after valuation allowance 136,733 43,007 Deferred tax liabilities: Depreciation (458,811) (345,358) Accrued and prepaid expenses — (15,537) FCC authorizations and other intangible amortization (174,399) (131,452) Bases difference in partnerships and other investments (5,380) (12,112) Other liabilities — — Total deferred tax liabilities (638,590) (504,459) Net deferred tax asset (liability) $ (501,857) $ (461,452) |
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 2019 2018 2017 (In thousands) Balance as of beginning of period $ 194,136 $ 201,162 $ 201,693 Additions based on tax positions related to the current year 3,232 10,550 684 Additions based on tax positions related to prior years 28,137 1,154 4,593 Reductions based on tax positions related to prior years (13,028) (4,479) (1,061) Reductions based on tax positions related to settlements with taxing authorities (2,362) (8,328) (1,634) Reductions based on tax positions related to the lapse of the statute of limitations (1,963) (5,923) (3,113) Balance as of end of period $ 208,152 $ 194,136 $ 201,162 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 2018 2017 (In thousands) Matching contributions, net of forfeitures $ 11,181 $ 10,300 $ 7,070 Discretionary stock contributions, net of forfeitures $ 28,774 $ 27,048 $ 27,969 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation | |
Schedule of exercise prices for stock options outstanding and exercisable associated with employees | Options Outstanding Options Exercisable Number Weighted- Weighted- Number Weighted- Weighted- $ 10.01 - $ 20.00 616,160 0.50 $ 15.39 16,160 0.50 $ 15.62 $ 20.01 - $ 30.00 826,983 3.37 $ 26.74 124,233 3.25 $ 24.02 $ 30.01 - $ 40.00 6,671,563 7.94 $ 35.67 1,057,044 7.50 $ 35.52 $ 40.01 - $ 50.00 1,468,628 7.59 $ 47.52 384,800 7.10 $ 47.24 $ 50.01 - $ 60.00 2,154,378 6.47 $ 57.50 430,952 5.69 $ 59.90 $ 60.01 - $ 70.00 1,040,100 6.29 $ 64.22 304,300 5.50 $ 65.23 $ 70.01 - $ 80.00 15,000 — $ 72.89 15,000 — $ 72.89 $ — - $ 80.00 12,792,812 6.85 $ 41.52 2,332,489 6.51 $ 44.77 |
Schedule of stock option activity associated with employees | For the Years Ended December 31, 2019 2018 2017 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period 13,365,489 $ 41.78 8,847,734 $ 43.90 7,913,733 $ 36.22 Granted 1,396,750 $ 33.52 7,026,512 $ 38.44 3,468,626 $ 59.66 Exercised (713,411) $ 27.46 (267,905) $ 16.43 (505,125) $ 28.73 Forfeited and cancelled (1) (1,256,016) $ 43.40 (2,240,852) $ 39.73 (2,029,500) $ 44.64 Total options outstanding, end of period 12,792,812 $ 41.52 13,365,489 $ 41.78 8,847,734 $ 43.90 Performance-based options outstanding, 7,608,446 $ 39.78 8,671,886 $ 39.95 5,490,626 $ 42.81 Exercisable at end of period 2,332,489 $ 44.93 1,705,103 $ 40.87 1,772,608 $ 35.13 (1) Certain of these stock options include options that were granted to individuals who transferred to and/or from another DISH Network subsidiary not a part of DISH DBS. (2) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the, 2013 LTIP, 2017 LTIP, 2019 LTIP and Other Employee Performance Awards below. |
Schedule of realized tax benefits from stock awards exercised | For the Years Ended December 31, 2019 2018 2017 (In thousands) Tax benefit from stock awards exercised $ 1,239 $ 1,664 $ 9,347 |
Schedule of aggregate intrinsic value of stock options associated with employees | As of December 31, 2019 Options Options Outstanding Exercisable (In thousands) Aggregate intrinsic value $ 21,829 $ 2,136 |
Schedule of restricted stock unit activity | For the Years Ended December 31, 2019 2018 2017 Restricted Weighted- Average Grant Date Fair Value Restricted Weighted- Average Grant Date Fair Value Restricted Weighted- Average Grant Date Fair Value Total restricted stock units/awards outstanding, beginning 1,718,945 $ 52.16 2,484,720 $ 51.16 1,336,000 $ 32.11 Granted — $ — — $ — 1,871,375 $ 63.87 Vested (9,565) $ 63.49 (10,475) $ 63.49 (14,845) $ 62.58 Forfeited and cancelled (1) (245,730) $ 59.86 (755,300) $ 48.51 (707,810) $ 48.59 Total restricted stock units/awards outstanding, end 1,463,650 $ 50.82 1,718,945 $ 52.16 2,484,720 $ 51.16 Restricted Performance Units/Awards outstanding, 1,446,300 $ 50.66 1,689,350 $ 51.97 2,435,500 $ 50.91 (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 DISH Network subsidiary not a part of DISH DBS. (2) These stock units/awards are included in the caption “Total restricted stock units/awards outstanding, end of period.” See discussion of the 2013 LTIP and Other Employee Performance Awards below. |
Schedule of non-cash, stock-based compensation expense recognized | For the Years Ended December 31, Non-Cash, Stock-Based Compensation Expense Recognized (1) 2019 2018 2017 (In thousands) 2019 LTIP $ 14,946 $ 3,475 $ — 2017 LTIP (12,902) 3,293 10,640 2013 LTIP (1,021) (2,471) (321) Other employee performance awards (592) 17,888 7,549 Total non-cash, stock-based compensation expense recognized for performance-based awards $ 431 $ 22,185 $ 17,868 (1) “Non-Cash, Stock-Based Compensation Expense Recognized” includes forfeitures. |
Schedule of unrecognized non-cash, stock-based compensation expense | Estimated Remaining Non-Cash, Stock-Based Compensation Expense 2019 LTIP 2017 LTIP 2013 LTIP Other Employee Performance Awards (In thousands) Expense estimated to be recognized during 2020 $ 10,541 $ — $ — $ — Estimated contingent expense subsequent to 2020 12,682 29,341 29,766 61,322 Total estimated remaining expense over the term of the plan $ 23,223 $ 29,341 $ 29,766 $ 61,322 |
Schedule of awards outstanding pursuant to performance-based stock incentive plans | As of December 31, 2019 Performance-Based Stock Options Number of Weighted- 2019 LTIP 3,510,375 $ 35.16 2017 LTIP 2,083,071 $ 57.12 2013 LTIP 875,000 $ 41.08 Other employee performance awards 1,140,000 $ 21.31 Total 7,608,446 $ 39.78 Restricted Performance Units/Awards 2013 LTIP 437,500 Other employee performance awards 1,008,800 Total 1,446,300 |
Schedule of allocated non-cash, stock-based compensation expense for all employees | For the Years Ended December 31, 2019 2018 2017 (In thousands) Subscriber-related $ 509 $ 1,150 $ 1,562 Satellite and transmission 329 262 1,761 General and administrative 13,015 34,109 26,618 Total non-cash, stock based compensation $ 13,853 $ 35,521 $ 29,941 |
Schedule of assumptions of Black-Scholes option valuation model | For the Years Ended December 31, Stock Options 2019 2018 2017 Risk-free interest rate 1.51 % - 2.53 % 2.09 % - 2.98 % 1.34 % - 2.29 % Volatility factor 28.86 % - 32.08 % 23.33 % - 30.22 % 22.25 % - 26.15 % Expected term of options in years 4.3 - 5.5 2.8 - 5.5 3.8 - 5.5 Fair value of options granted $ 7.58 - $ 12.45 $ 7.10 - $ 12.53 $ 11.95 - $ 16.69 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Schedule of future maturities of long-term debt, capital lease and contractual obligations | Payments due by period Total 2020 2021 2022 2023 2024 Thereafter Long-term debt obligations $ 10,625,996 $ 1,102,430 $ 2,002,554 $ 2,002,683 $ 1,502,820 $ 2,002,964 $ 2,012,545 Interest expense on long-term debt 2,524,898 $ 629,410 $ 533,599 $ 465,969 $ 310,832 $ 273,188 $ 311,900 Finance lease obligations (1) 212,617 48,678 53,150 41,666 38,018 31,105 — Interest expense on finance lease obligations (1) 45,183 17,607 13,129 8,561 4,844 1,042 — Satellite-related and other obligations (2) 219,019 71,931 65,663 41,291 23,321 16,813 — Operating lease obligations (1) 641,792 239,660 199,062 127,300 24,571 9,191 42,008 Purchase obligations 1,241,340 1,200,025 29,284 12,031 — — — Total $ 15,510,845 $ 3,309,741 $ 2,896,441 $ 2,699,501 $ 1,904,406 $ 2,334,303 $ 2,366,453 (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 and short-term leases. |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue | ||
Revenue by geographic region | For the Three Months Ended For the Six Months Ended June 30, June 30, Revenue: 2020 2019 2020 2019 (In thousands) United States $ 3,144,992 $ 3,155,828 $ 6,302,296 $ 6,282,937 Canada and Mexico 3,539 10,771 14,017 21,662 Total revenue $ 3,148,531 $ 3,166,599 $ 6,316,313 $ 6,304,599 | For the Years Ended December 31, Revenue: 2019 2018 2017 (In thousands) United States $ 12,581,855 $ 13,319,091 $ 13,967,694 Canada and Mexico 41,038 43,048 39,817 Total revenue $ 12,622,893 $ 13,362,139 $ 14,007,511 |
Schedule of disaggregation of revenue | For the Three Months Ended For the Six Months Ended June 30, June 30, Category: 2020 2019 2020 2019 (In thousands) Pay-TV video and related revenue $ 3,117,334 $ 3,117,066 $ 6,248,234 $ 6,215,002 Equipment sales and other revenue 31,197 49,533 68,079 89,597 Total $ 3,148,531 $ 3,166,599 $ 6,316,313 $ 6,304,599 | For the Years Ended December 31, Category: 2019 2018 2017 (In thousands) Pay-TV video and related revenue $ 12,436,637 $ 13,197,994 $ 13,877,196 Equipment sales and other revenue 186,256 164,145 130,315 Total $ 12,622,893 $ 13,362,139 $ 14,007,511 |
Contract Balances (Tables)
Contract Balances (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Contract Balances | ||
Valuation and Qualifying Accounts | Allowance for credit losses Balance at Beginning of Period Current Period Provision for Expected Credit Losses Write-offs Charged Against Allowance Balance at End of Period (In thousands) For the six months ended June 30, 2020 $ 19,280 $ 51,808 $ (29,900) $ 41,188 | Allowance for doubtful accounts Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year (In thousands) For the years ended: December 31, 2019 $ 16,956 $ 69,866 $ (67,542) $ 19,280 December 31, 2018 $ 15,056 $ 98,461 $ (96,561) $ 16,956 December 31, 2017 $ 17,440 $ 124,143 $ (126,527) $ 15,056 |
Schedule of Contract balances | Contract Liabilities (In thousands) Balance as of December 31, 2019 $ 609,054 Recognition of unearned revenue (2,951,822) Deferral of revenue 2,925,648 Balance as of June 30, 2020 $ 582,880 | Contract Liabilities (In thousands) Balance as of December 31, 2018 $ 624,626 Recognition of unearned revenue (7,086,252) Deferral of revenue 7,070,680 Balance as of December 31, 2019 $ 609,054 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019: Total revenue $ 3,138,000 $ 3,166,599 $ 3,122,282 $ 3,196,012 Operating income (loss) 430,735 435,966 438,498 515,999 Net income (loss) attributable to DISH DBS 177,760 185,368 204,858 259,545 Year ended December 31, 2018: Total revenue $ 3,383,222 $ 3,393,307 $ 3,334,444 $ 3,251,166 Operating income (loss) 508,121 549,502 542,439 466,448 Net income (loss) attributable to DISH DBS 204,192 285,691 281,272 200,132 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Schedule of related party transaction | For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Purchases (including fees): Purchases from NagraStar $ 13,259 $ 14,355 $ 27,351 $ 28,714 As of June 30, December 31, 2020 2019 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 17,930 $ 9,630 Commitments to NagraStar $ 4,159 $ 4,893 | For the Years Ended December 31, 2019 2018 2017 (In thousands) Purchases (including fees): Purchases from NagraStar $ 56,284 $ 72,162 $ 71,167 As of December 31, 2019 2018 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 9,630 $ 9,871 Commitments to NagraStar $ 4,893 $ 3,888 |
Dish Mexico | ||
Schedule of related party transaction | For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Sales: Uplink services $ 1,288 $ 1,412 $ 2,669 $ 2,816 Total $ 1,288 $ 1,412 $ 2,669 $ 2,816 As of June 30, December 31, 2020 2019 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 2,116 $ 1,191 | For the Years Ended December 31, 2019 2018 2017 (In thousands) Sales: Digital receivers and related components $ — $ 1,227 $ 1,891 Uplink services 5,620 5,426 3,994 Total $ 5,620 $ 6,653 $ 5,885 As of December 31, 2019 2018 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 1,191 $ 1,370 |
Organization and Business Act_2
Organization and Business Activities (Details) - customer customer in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
DISH TV subscribers | ||
Organization and Business Activities | ||
Number of subscribers | 9,017 | 9,394 |
Sling TV subscribers | ||
Organization and Business Activities | ||
Number of subscribers | 2,255 | 2,592 |
Pay TV Subscribers | ||
Organization and Business Activities | ||
Number of subscribers | 11,272 | 11,986 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Contract cost capitalized during the period | $ 44,000 | $ 55,000 | $ 82,000 | $ 92,000 | $ 207,000 | $ 183,000 |
Amortization expense related to the programs | 29,000 | $ 17,000 | 56,000 | $ 31,000 | 76,000 | 28,000 |
Total costs capitalized | 326,000 | 326,000 | 300,000 | 169,000 | ||
Retained earnings | $ (11,747,776) | $ (11,747,776) | (12,366,909) | $ (13,194,440) | ||
ASU 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Retained earnings | 2,000 | |||||
Deferred taxes | $ 1,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Leases (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Leases | ||
Renewal options, operating lease | true | true |
Renewal options, finance lease | true | true |
Options to terminate, operating lease | true | true |
Options to terminate, finance lease | true | true |
Minimum | ||
Leases | ||
Remaining lease terms, operating lease | 1 year | 1 year |
Remaining lease terms, finance lease | 1 year | 1 year |
Maximum | ||
Leases | ||
Remaining lease terms, operating lease | 12 years | 12 years |
Remaining lease terms, finance lease | 12 years | 8 years |
Termination period, operating lease | 1 year | 1 year |
Termination period, finance lease | 1 year | 1 year |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Impact of Adoption of ASU2016-02 (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Operating lease assets | $ 471,987 | $ 553,576 | ||||||
Total assets | 4,156,336 | 4,386,559 | $ 3,905,544 | |||||
Other accrued expenses | 893,149 | 918,333 | 756,534 | |||||
Operating lease liabilities | 267,154 | 350,155 | ||||||
Long-term deferred revenue and other long-term liabilities | 224,210 | 207,992 | 198,840 | |||||
Total liabilities | 14,461,861 | 15,321,181 | 15,947,704 | |||||
Total stockholders' equity (deficit) | (10,305,525) | $ (10,683,879) | (10,934,622) | $ (11,388,977) | $ (11,853,360) | (12,042,160) | $ (13,046,663) | $ (13,792,150) |
Total liabilities and stockholders' equity (deficit) | $ 4,156,336 | 4,386,559 | $ 3,905,544 | |||||
Accounting Standards Update 2016-02 | DISH DBS (as would have been reported under previous standards) [Member] | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total assets | 3,832,983 | |||||||
Other accrued expenses | 715,361 | |||||||
Long-term deferred revenue and other long-term liabilities | 207,543 | |||||||
Total liabilities | 14,767,605 | |||||||
Total stockholders' equity (deficit) | (10,934,622) | |||||||
Total liabilities and stockholders' equity (deficit) | 3,832,983 | |||||||
Accounting Standards Update 2016-02 | Impact of adopting ASU 2016-02 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Operating lease assets | 553,576 | |||||||
Total assets | 553,576 | |||||||
Other accrued expenses | 202,972 | |||||||
Operating lease liabilities | 350,155 | |||||||
Long-term deferred revenue and other long-term liabilities | 449 | |||||||
Total liabilities | 553,576 | |||||||
Total liabilities and stockholders' equity (deficit) | $ 553,576 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Principles of Consolidation and Research and Development (Details) - USD ($) $ in Millions | Feb. 28, 2017 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Significant accounting policies | ||||||||
Maturity period of cash equivalents | 90 days | |||||||
Research and Development | ||||||||
Research and development expense | $ 5 | $ 6 | $ 11 | $ 11 | $ 21 | $ 24 | $ 33 | |
EchoStar | Satellite and Tracking Stock Transaction | ||||||||
Significant accounting policies | ||||||||
Preferred tracking stock issued by related party | 6,290,499 | |||||||
HSSC | Satellite and Tracking Stock Transaction | ||||||||
Significant accounting policies | ||||||||
Preferred tracking stock issued by related party | 81.128 | |||||||
Minimum | ||||||||
Marketable Investment Securities | ||||||||
The length of time an investment has been in a continuous loss position in which the decline in value would be evaluated on a case by case basis to determine if the decline in value is other-than-temporary | 6 months | |||||||
Length of time an investment has been in a continuous loss position in which the decline in value is considered other-than-temporary | 9 months | |||||||
Property and Equipment | ||||||||
Useful life of property and equipment | 2 years | |||||||
Business Combinations | ||||||||
Amortization of finite lived intangible assets useful life | 5 years | |||||||
Maximum | ||||||||
Marketable Investment Securities | ||||||||
Length of time an investment has been in a continuous loss position in which the decline in value is considered as temporary | 6 months | |||||||
The length of time an investment has been in a continuous loss position in which the decline in value would be evaluated on a case by case basis to determine if the decline in value is other-than-temporary | 9 months | |||||||
Property and Equipment | ||||||||
Useful life of property and equipment | 40 years | |||||||
Business Combinations | ||||||||
Amortization of finite lived intangible assets useful life | 20 years | |||||||
Long-Term Deferred Revenue, Distribution and Carriage Payments | ||||||||
Deferred upfront payment, amortization period | 10 years | |||||||
Revenue Recognition | ||||||||
Period of deferral for the portion of subscriber fees that are deferred | 1 year | 1 year | ||||||
Sling TV Holding | EchoStar | ||||||||
Significant accounting policies | ||||||||
Ownership percentage owned by noncontrolling owners | 10.00% |
Supplemental Data - Statement_3
Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Data - Statements of Cash Flows | |||||
Cash paid for interest | $ 329,923 | $ 382,391 | $ 765,510 | $ 793,506 | $ 878,772 |
Cash received for interest | 1,962 | 8,528 | 30,041 | 6,043 | 9,855 |
Cash paid for income taxes | 3,205 | 8,845 | 19,485 | 18,683 | 29,961 |
Cash paid for income taxes to DISH Network | $ 176,964 | 152,526 | 245,028 | 302,329 | 408,265 |
Capitalized interest | $ 440 | 440 | $ 1,071 | $ 481 | |
Satellite and Tracking Stock Transaction with EchoStar: | |||||
Satellite and Spectrum Transaction, deferred taxes | $ 29,075 |
Marketable Investment Securit_3
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2017 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | ||||
Trading/equity (Note 2) | $ 2,370 | |||
Total current marketable investment securities | $ 31 | 149,740 | ||
Restricted marketable investment securities(1) | $ 390 | 67,019 | ||
Total marketable investment securities | 31 | 390 | 216,759 | |
Restricted cash and cash equivalents (1) | 61,349 | 60,677 | 578 | |
Other investment securities | 96,886 | 106,874 | 108,308 | |
Total other investment securities | 96,886 | 106,874 | 108,308 | |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | $ 158,266 | $ 167,941 | 325,645 | |
Maximum maturities of commercial paper | 365 days | 365 days | ||
Maximum maturities of corporate securities | 18 months | 18 months | ||
NagraStar L.L.C | ||||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | ||||
Ownership interest in equity method investment | 50.00% | |||
Current marketable investment securities - other | ||||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | ||||
Total current marketable investment securities | $ 147,370 |
Marketable Investment Securit_4
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Unrealized Gains (Losses) On Marketable Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated net unrealized gains (losses) | ||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | $ (81) | |
Accumulated net unrealized gains, net of tax, in accumulated other comprehensive income (loss) | $ 0 | |
Unrealized losses on markatable investment securites | 0 | |
Unrealized Gains (Losses) on Marketable Investment Securities | ||
Unrealized Gains | 51 | |
Unrealized Losses | (132) | |
Unrealized Gains Losses, Net | (81) | |
Maximum | ||
Accumulated net unrealized gains (losses) | ||
Accumulated net unrealized gains, net of tax, in accumulated other comprehensive income (loss) | (1,000) | |
Unrealized losses on markatable investment securites | 1,000 | |
Contractual maturities of restricted and non-restricted marketable investment securities | ||
Debt securities with contractual maturities within one year | $ 1,000 | |
U.S. Treasury and agency securities | ||
Accumulated net unrealized gains (losses) | ||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | 21 | |
Unrealized Gains (Losses) on Marketable Investment Securities | ||
Unrealized Gains | 40 | |
Unrealized Losses | (19) | |
Unrealized Gains Losses, Net | 21 | |
Corporate securities | ||
Accumulated net unrealized gains (losses) | ||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | (102) | |
Unrealized Gains (Losses) on Marketable Investment Securities | ||
Unrealized Gains | 11 | |
Unrealized Losses | (113) | |
Unrealized Gains Losses, Net | $ (102) |
Marketable Investment Securit_5
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value of marketable securities | |||
Debt securities | $ 390 | $ 214,389 | |
Equity Securities | 2,370 | ||
Total marketable investment securities | $ 31 | 390 | 216,759 |
Transfer of investments from Level 1 to Level 2 | 0 | 0 | |
Transfer of investments from Level 2 to Level 1 | 0 | 0 | |
U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | 390 | 66,823 | |
Commercial paper | |||
Fair value of marketable securities | |||
Debt securities | 45,938 | ||
Corporate securities | |||
Fair value of marketable securities | |||
Debt securities | 100,662 | ||
Other | |||
Fair value of marketable securities | |||
Debt securities | 966 | ||
Fair value measurements on recurring basis | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 63,344 | 60,677 | 114,464 |
Equity Securities | 2,370 | ||
Total marketable investment securities | 31 | 390 | 216,759 |
Fair value measurements on recurring basis | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | 390 | 66,823 | |
Fair value measurements on recurring basis | Commercial paper | |||
Fair value of marketable securities | |||
Debt securities | 31 | 45,938 | |
Fair value measurements on recurring basis | Corporate securities | |||
Fair value of marketable securities | |||
Debt securities | 100,662 | ||
Fair value measurements on recurring basis | Other | |||
Fair value of marketable securities | |||
Debt securities | 966 | ||
Fair value measurements on recurring basis | Level 1 | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 62,740 | 60,677 | 12,493 |
Equity Securities | 2,370 | ||
Total marketable investment securities | 390 | 69,193 | |
Fair value measurements on recurring basis | Level 1 | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | $ 390 | 66,823 | |
Fair value measurements on recurring basis | Level 2 | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 604 | 101,971 | |
Total marketable investment securities | 31 | 147,566 | |
Fair value measurements on recurring basis | Level 2 | Commercial paper | |||
Fair value of marketable securities | |||
Debt securities | $ 31 | 45,938 | |
Fair value measurements on recurring basis | Level 2 | Corporate securities | |||
Fair value of marketable securities | |||
Debt securities | 100,662 | ||
Fair value measurements on recurring basis | Level 2 | Other | |||
Fair value of marketable securities | |||
Debt securities | $ 966 |
Marketable Investment Securit_6
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Gains And Losses On Sales And Changes In Carrying Amounts Of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |||||||
Marketable investment securities - realized and unrealized gains (losses) | $ 829 | $ 3,599 | $ 3,119 | $ 5,313 | $ 87,020 | ||
Costs related to early redemption of debt | (439) | (3,261) | (1,470) | ||||
Gain (loss) on sale of subsidiary | 7,004 | ||||||
Equity in earnings of affiliates | $ (399) | 2,297 | $ (121) | 1,353 | 3,514 | (2,110) | 2,163 |
Other | 247 | 5 | 914 | 51 | 976 | 2,048 | 798 |
Total | $ (152) | $ 3,131 | $ 793 | $ 4,564 | $ 7,609 | $ 8,994 | $ 88,511 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory | |||
Finished goods | $ 249,605 | $ 254,240 | $ 215,150 |
Work-in-process and service repairs | 34,245 | 34,120 | 56,871 |
Raw materials | 17,558 | 33,623 | 18,676 |
Total inventory | $ 301,408 | $ 321,983 | $ 290,697 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property and Equipment | ||||||
Total property and equipment | $ 5,171,638 | $ 5,171,638 | $ 5,191,840 | $ 4,928,675 | ||
Accumulated depreciation | (3,509,710) | (3,509,710) | (3,440,267) | (3,550,726) | ||
Property and equipment, net | 1,661,928 | 1,661,928 | 1,751,573 | 1,377,949 | ||
Finance Lease Cost | 16,834 | $ 4,904 | 34,080 | $ 12,193 | $ 38,960 | |
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 | 1,779,445 | $ 1,779,445 | $ 1,837,503 | 1,980,808 | ||
Equipment leased to customers | Minimum | ||||||
Property and Equipment | ||||||
Depreciable life of assets | 2 years | 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 | $ 277,658 | 277,658 | ||
Depreciable life of assets | 15 years | 15 years | ||||
EchoStar XVIII | ||||||
Property and Equipment | ||||||
Total property and equipment | 411,255 | $ 411,255 | $ 411,255 | |||
Depreciable life of assets | 15 years | 15 years | ||||
Incentive obligations | $ 18,000 | |||||
Ciel II | ||||||
Property and Equipment | ||||||
Finance Lease Cost | 277,000 | |||||
Nimiq 5 | ||||||
Property and Equipment | ||||||
Finance Lease Cost | 175,000 | |||||
Satellites acquired under finance lease agreements | ||||||
Property and Equipment | ||||||
Total property and equipment | 398,107 | $ 398,107 | $ 398,107 | 499,819 | ||
Depreciable life of assets | 15 years | 15 years | ||||
Furniture, fixtures, equipment and other | ||||||
Property and Equipment | ||||||
Total property and equipment | 1,934,783 | $ 1,934,783 | $ 1,894,629 | 1,820,883 | ||
Furniture, fixtures, equipment and other | Minimum | ||||||
Property and Equipment | ||||||
Depreciable life of assets | 2 years | 2 years | ||||
Furniture, fixtures, equipment and other | Maximum | ||||||
Property and Equipment | ||||||
Depreciable life of assets | 20 years | |||||
Buildings and improvements | ||||||
Property and Equipment | ||||||
Total property and equipment | 294,342 | $ 294,342 | $ 289,421 | 289,244 | ||
Buildings and improvements | Minimum | ||||||
Property and Equipment | ||||||
Depreciable life of assets | 5 years | 5 years | ||||
Buildings and improvements | Maximum | ||||||
Property and Equipment | ||||||
Depreciable life of assets | 40 years | |||||
Land | ||||||
Property and Equipment | ||||||
Total property and equipment | 13,186 | $ 13,186 | $ 13,186 | 13,186 | ||
Construction in progress | ||||||
Property and Equipment | ||||||
Total property and equipment | $ 62,862 | $ 62,862 | $ 70,081 | $ 47,077 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020USD ($)item | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)item | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | $ 122,869 | $ 135,600 | $ 257,954 | $ 290,715 | $ 577,348 | $ 660,460 | $ 741,772 |
Equipment leased to customers | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | 69,489 | 86,453 | 149,171 | 194,589 | 370,867 | 437,342 | 539,434 |
Satellites | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | 23,796 | 12,920 | 47,593 | 23,575 | 65,441 | 61,045 | 61,045 |
Buildings, furniture, fixtures, equipment and other | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | $ 29,584 | $ 36,227 | $ 61,190 | $ 72,551 | $ 141,040 | $ 162,073 | $ 141,293 |
Pay-TV Satellites | |||||||
Depreciation and amortization expense | |||||||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 11 | 11 | |||||
Owned Satellites | 2 | 2 | 2 | ||||
Number of satellites utilized under operating lease | 6 | ||||||
Number of satellites utilized under capital lease | 2 | ||||||
Dish Network | Pay-TV Satellites | |||||||
Depreciation and amortization expense | |||||||
Number of satellites utilized under operating lease | 1 |
Property and Equipment - Pay TV
Property and Equipment - Pay TV Satellites (Details) $ in Millions | May 14, 2019USD ($) | May 14, 2019USD ($) | Dec. 31, 2019item |
Property and Equipment | |||
Satellite transaction cost basis | $ 320 | $ 320 | |
Net carrying value of licenses | 26 | 26 | |
Capital transaction | $ 267 | $ 267 | |
Number of other satellites to be relocated in the event of failure or loss of any satellite | item | 1 |
Property and Equipment and Inta
Property and Equipment and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets | |||
Intangible Assets | $ 121,304 | $ 121,304 | |
Accumulated Amortization | (112,234) | (106,442) | |
Amortization expenses | $ 6,000 | 7,000 | $ 7,000 |
Minimum | |||
Intangible Assets | |||
Useful life | 5 years | ||
Maximum | |||
Intangible Assets | |||
Useful life | 20 years | ||
Technology-based | |||
Intangible Assets | |||
Intangible Assets | $ 58,162 | 58,162 | |
Accumulated Amortization | (53,447) | (51,204) | |
Trademarks | |||
Intangible Assets | |||
Intangible Assets | 35,010 | 35,010 | |
Accumulated Amortization | (30,655) | (27,106) | |
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 and In_2
Property and Equipment and Intangible Assets - Estimated future amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Estimated future amortization of identifiable intangible assets | ||
2020 | $ 3,285 | |
2021 | 835 | |
2022 | 666 | |
2023 | 654 | |
2024 | 654 | |
Thereafter | 2,976 | |
Finite-Lived Intangible Assets, Net, Total | 9,070 | |
Other noncurrent assets, net | ||
Estimated future amortization of identifiable intangible assets | ||
Goodwill | $ 6,000 | $ 6,000 |
Property and Equipment and In_3
Property and Equipment and Intangible Assets - FCC Authorizations (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2020 | |
Capitalized interest | $ 440 | $ 440 | $ 1,071 | $ 481 | |
FCC authorizations | 611,794 | 637,346 | $ 611,794 | ||
FCC Authorizations | |||||
Capitalized interest | 1,552 | ||||
FCC authorizations | 611,794 | 637,346 | |||
DBS Licenses | FCC Authorizations | |||||
FCC authorizations | $ 611,794 | 611,794 | |||
MVDDS Licenses | FCC Authorizations | |||||
FCC authorizations | $ 24,000 |
Leases (Details)
Leases (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Leases | ||
Short Term Lease Period | 12 months | |
Renewal options, operating lease | true | true |
Renewal options, finance lease | true | true |
Options to terminate, operating lease | true | true |
Options to terminate, finance lease | true | true |
Minimum | ||
Leases | ||
Remaining lease terms, operating lease | 1 year | 1 year |
Remaining lease terms, finance lease | 1 year | 1 year |
Maximum | ||
Leases | ||
Remaining lease terms, operating lease | 12 years | 12 years |
Short Term Lease Period | 12 months | |
Remaining lease terms, finance lease | 12 years | 8 years |
Termination period, operating lease | 1 year | 1 year |
Termination period, finance lease | 1 year | 1 year |
Leases - Components of lease ex
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases | |||||
Operating lease cost | $ 61,808 | $ 81,762 | $ 123,523 | $ 162,048 | $ 297,181 |
Short-term lease cost | 3,733 | 12,141 | 6,400 | 31,426 | 37,686 |
Amortization of right-of-use assets | 12,300 | 3,805 | 24,748 | 9,913 | 29,134 |
Interest on lease liabilities | 4,534 | 1,099 | 9,332 | 2,280 | 9,826 |
Total finance lease cost | 16,834 | 4,904 | 34,080 | 12,193 | 38,960 |
Total lease costs | $ 82,375 | $ 98,807 | $ 164,003 | $ 205,667 | $ 373,827 |
Leases - Supplemental cash flow
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases | |||
Operating cash flows from operating leases | $ 123,811 | $ 164,159 | $ 301,524 |
Operating cash flows from finance leases | 9,332 | 2,295 | 9,826 |
Financing cash flows from finance leases | 23,227 | 10,454 | 31,841 |
Operating leases | $ 17,967 | 61,872 | 81,198 |
Finance leases | 175,311 | ||
Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 | $ 730,180 | $ 730,180 |
Leases - Supplemental balance s
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Leases | |||
Operating lease right-of-use assets | $ 471,987 | $ 553,576 | |
Other current liabilities | 204,138 | $ 202,972 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other Accrued Liabilities, Current | ||
Operating lease liabilities | 267,154 | $ 350,155 | |
Total operating lease liabilities | 471,292 | $ 553,127 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherAccruedLiabilitiesCurrent us-gaap:OperatingLeaseLiabilityNoncurrent | ||
Property and equipment, gross | 5,171,638 | $ 5,191,840 | $ 4,928,675 |
Accumulated depreciation | (3,509,710) | (3,440,267) | (3,550,726) |
Property and equipment, net | 1,661,928 | 1,751,573 | 1,377,949 |
Other current liabilities | 50,860 | 48,678 | |
Other long-term liabilities | 137,949 | 163,939 | |
Total finance lease liabilities | $ 188,809 | $ 212,617 | $ 66,984 |
Weighted Average Remaining Lease Term: Operating leases | 3 years 1 month 6 days | 3 years 4 months 24 days | |
Weighted Average Remaining Lease Term: Finance leases | 3 years 9 months 18 days | 4 years 2 months 12 days | |
Weighted Average Discount Rate: Operating leases | 9.00% | 9.10% | |
Weighted Average Discount Rate: Finance leases | 9.50% | 9.50% | |
Property and equipment [Member] | |||
Leases | |||
Property and equipment, gross | $ 398,875 | $ 399,764 | |
Accumulated depreciation | (226,325) | (201,873) | |
Property and equipment, net | $ 172,550 | $ 197,891 |
Leases - Maturities of lease li
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities of lease liabilities: Operating lease | |||
2020 | $ 239,660 | ||
2021 | $ 205,137 | 199,062 | |
2022 | 132,452 | 127,300 | |
2023 | 27,439 | 24,571 | |
2024 | 11,376 | 9,191 | |
Thereafter | 42,414 | 42,008 | |
Total lease payments | 540,133 | 641,792 | |
Less: Imputed interest | (68,841) | (88,665) | |
Total operating lease liabilities | 471,292 | 553,127 | |
Other current liabilities | (204,138) | (202,972) | |
Operating lease liabilities | 267,154 | 350,155 | |
Maturities of lease liabilities: Finance lease | |||
2020 | 66,285 | ||
2021 | 66,279 | 66,279 | |
2022 | 50,226 | 50,227 | |
2023 | 42,862 | 42,862 | |
2024 | 32,147 | 32,147 | |
Total lease payments | 224,653 | 257,800 | |
Less: Imputed interest | (35,844) | (45,183) | |
Total finance lease liabilities | 188,809 | 212,617 | $ 66,984 |
Less: Current portion | (50,860) | (48,678) | |
Long-term portion of lease obligations | 137,949 | 163,939 | |
Future minimum payments for total lease liabilities | |||
2020 | 305,945 | ||
2021 | 271,416 | 265,341 | |
2022 | 182,678 | 177,527 | |
2023 | 70,301 | 67,433 | |
2024 | 43,523 | 41,338 | |
Thereafter | 42,414 | 42,008 | |
Total lease payments | 764,786 | 899,592 | |
Less: Imputed interest | (104,685) | (133,848) | |
Total | 660,101 | 765,744 | |
Less: Current portion | (254,998) | (251,650) | |
Long-term portion of lease obligations | $ 405,103 | $ 514,094 |
Long-Term Debt and Finance Le_3
Long-Term Debt and Finance Lease Obligations - Long term debt (Details) - USD ($) $ in Thousands | Jun. 13, 2016 | Nov. 20, 2014 | Apr. 05, 2013 | Jul. 26, 2012 | May 05, 2011 | Dec. 31, 2019 | Jun. 30, 2020 | Sep. 03, 2019 | Dec. 31, 2018 | Dec. 27, 2012 | May 16, 2012 |
Long-term debt | |||||||||||
Carrying Amount | $ 10,625,996 | $ 9,525,996 | $ 11,927,718 | ||||||||
Fair Value | 11,096,954 | 9,740,901 | 10,764,806 | ||||||||
Unamortized deferred financing costs and debt discounts, net | (16,250) | (13,581) | (23,215) | ||||||||
Finance lease obligations (3) | 212,617 | 188,809 | 66,984 | ||||||||
Total long-term debt and finance lease obligations (including current portion) | $ 10,822,363 | $ 9,701,224 | 11,971,487 | ||||||||
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101.00% | ||||||||||
7 7/8% Senior Notes due 2019 | |||||||||||
Long-term debt | |||||||||||
Carrying Amount | 1,317,372 | ||||||||||
Fair Value | $ 1,343,298 | ||||||||||
Interest rate (as a percent) | 7.875% | 7.875% | 7.875% | ||||||||
5 1/8% Senior Notes due 2020 | |||||||||||
Long-term debt | |||||||||||
Carrying Amount | $ 1,100,000 | $ 1,100,000 | |||||||||
Fair Value | $ 1,110,208 | $ 1,089,957 | |||||||||
Interest rate (as a percent) | 5.125% | 5.125% | 5.125% | ||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||
Aggregate principal amount | $ 1,100,000 | ||||||||||
Term of debt instrument | 7 years | ||||||||||
Annual Debt Service Requirements | $ 56,375 | ||||||||||
6 3/4% Senior Notes due 2021 | |||||||||||
Long-term debt | |||||||||||
Carrying Amount | 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||||
Fair Value | $ 2,109,420 | $ 2,045,100 | $ 1,974,940 | ||||||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | 6.75% | |||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||
Aggregate principal amount | $ 2,000,000 | ||||||||||
Term of debt instrument | 10 years | ||||||||||
Annual Debt Service Requirements | $ 135,000 | ||||||||||
5 7/8% Senior Notes due 2022 | |||||||||||
Long-term debt | |||||||||||
Carrying Amount | 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||||
Fair Value | $ 2,129,580 | $ 2,043,040 | $ 1,833,140 | ||||||||
Interest rate (as a percent) | 5.875% | 5.875% | 5.875% | 5.875% | |||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||
Aggregate principal amount | $ 1,000,000 | $ 1,000,000 | |||||||||
Term of debt instrument | 10 years | ||||||||||
Annual Debt Service Requirements | $ 117,500 | ||||||||||
5% Senior Notes due 2023 | |||||||||||
Long-term debt | |||||||||||
Carrying Amount | 1,500,000 | $ 1,500,000 | $ 1,500,000 | ||||||||
Fair Value | $ 1,543,770 | $ 1,495,545 | $ 1,247,445 | ||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | |||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||
Aggregate principal amount | $ 1,500,000 | ||||||||||
Annual Debt Service Requirements | $ 75,000 | ||||||||||
5 7/8% Senior Notes due 2024 | |||||||||||
Long-term debt | |||||||||||
Carrying Amount | 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||||
Fair Value | $ 2,049,080 | $ 2,000,340 | $ 1,611,960 | ||||||||
Interest rate (as a percent) | 5.875% | 5.875% | 5.875% | ||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||
Aggregate principal amount | $ 2,000,000 | ||||||||||
Term of debt instrument | 10 years | ||||||||||
Annual Debt Service Requirements | $ 117,500 | ||||||||||
7 3/4% Senior Notes due 2026 | |||||||||||
Long-term debt | |||||||||||
Carrying Amount | 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||||
Fair Value | $ 2,128,900 | $ 2,130,880 | $ 1,653,720 | ||||||||
Interest rate (as a percent) | 7.75% | 7.75% | 7.75% | ||||||||
Aggregate principal amount | $ 2,000,000 | ||||||||||
Term of debt instrument | 10 years | ||||||||||
Annual Debt Service Requirements | $ 155,000 | ||||||||||
Other notes payable | |||||||||||
Long-term debt | |||||||||||
Carrying Amount | 25,996 | $ 25,996 | $ 10,346 | ||||||||
Fair Value | $ 25,996 | $ 25,996 | $ 10,346 |
Long-Term Debt - Other Long-ter
Long-Term Debt - Other Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other long-term debt and capital lease obligations | ||
Total | $ 238,613 | $ 77,330 |
Less current portion | (51,108) | (21,155) |
Other long-term debt and capital lease obligations, net of current portion | 187,505 | 56,175 |
Capital lease obligations. | ||
Other long-term debt and capital lease obligations | ||
Total | 212,617 | 66,984 |
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates of approximately 6% | ||
Other long-term debt and capital lease obligations | ||
Total | $ 25,996 | $ 10,346 |
Interest rate (as a percent) | 6.00% |
Long-Term Debt- Capital lease o
Long-Term Debt- Capital lease obligations (Details) | 12 Months Ended |
Dec. 31, 2019 | |
FSS Satellite Anik F3 | |
Capital lease obligations | |
Ku-band capacity leased (as a percent) | 100.00% |
Term of capital lease | 15 years |
Nimiq 5 | |
Capital lease obligations | |
Percentage of capacity leased | 100.00% |
Canadian DBS Satellite Ciel II | |
Capital lease obligations | |
Satellite capacity leased (as a percent) | 100.00% |
Initial term of capital lease | 10 years |
Income Taxes and Accounting f_3
Income Taxes and Accounting for Uncertainty in Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes and Accounting for Uncertainty in Income Taxes | |||||||
Tax benefits related to credit carryforwards | $ 10,000 | ||||||
Cash paid for income taxes to DISH Network | $ 176,964 | $ 152,526 | $ 245,028 | 302,329 | $ 408,265 | ||
Gain (Loss) Related to Litigation Settlement | (295,695) | ||||||
Net operating loss carryforwards | 0 | ||||||
Current (benefit) provision: | |||||||
Federal | 208,821 | 273,632 | 356,759 | ||||
State | 48,417 | 64,534 | 54,133 | ||||
Foreign | 6,203 | 4,616 | 3,736 | ||||
Total current (benefit) provision | 263,441 | 342,782 | 414,628 | ||||
Deferred (benefit) provision: | |||||||
Federal | 11,243 | (25,934) | (308,028) | ||||
State | (1,987) | (123) | 11,954 | ||||
Increase (decrease) in valuation allowance | 2,054 | 1,580 | (938) | ||||
Total deferred (benefit) provision | 19,576 | (39,649) | 11,310 | (24,477) | (297,012) | ||
Total (benefit) provision | $ 125,830 | $ 64,465 | 208,334 | 126,287 | 274,751 | 318,305 | 117,616 |
Income (loss) before income taxes | $ 500,810 | $ 249,833 | 827,467 | 489,291 | 1,102,158 | $ 1,291,991 | $ 843,061 |
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) | 21.00% | 21.00% | 35.00% | ||||
State income taxes, net of Federal benefit (as a percent) | 3.60% | 4.40% | 4.20% | ||||
Tax Reform Act (1) | (34.50%) | ||||||
Nondeductible/Nontaxable items (2) | 11.50% | ||||||
Other, net (as a percent) | 0.30% | (0.80%) | (2.20%) | ||||
Total (benefit) provision for income taxes | 24.90% | 24.60% | 14.00% | ||||
Impact on Income tax (provision) benefit by remeasurement of deferred tax assets and liabilities | $ 291,000 | $ 291,000 | |||||
Litigation expense | 255,000 | ||||||
Deferred tax assets: | |||||||
NOL, interest, credit and other carryforwards | $ 12,323 | 10,915 | |||||
Accrued and prepaid expenses | 96,974 | ||||||
Stock-based compensation | 19,719 | 21,198 | |||||
Deferred revenue | 17,238 | 18,361 | |||||
Total deferred tax assets | 146,254 | 50,474 | |||||
Valuation allowance | (9,521) | (7,467) | |||||
Deferred tax asset after valuation allowance | 136,733 | 43,007 | |||||
Deferred tax liabilities: | |||||||
Depreciation | (458,811) | (345,358) | |||||
Accrued and prepaid expenses | (15,537) | ||||||
FCC authorizations and other intangible amortization | (174,399) | (131,452) | |||||
Bases difference in partnerships and other investments | (5,380) | (12,112) | |||||
Total deferred tax liabilities | (638,590) | (504,459) | |||||
Net deferred tax asset (liability) | (501,857) | (461,452) | |||||
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 | $ 208,152 | $ 194,136 | 194,136 | 201,162 | 201,693 | ||
Additions based on tax positions related to the current year | 3,232 | 10,550 | 684 | ||||
Additions based on tax positions related to prior years | 28,137 | 1,154 | 4,593 | ||||
Reductions based on tax positions related to prior years | (13,028) | (4,479) | (1,061) | ||||
Reductions based on tax positions related to settlements with taxing authorities | (2,362) | (8,328) | (1,634) | ||||
Reductions based on tax positions related to the lapse of the statute of limitations | (1,963) | (5,923) | (3,113) | ||||
Balance as of end of period | 208,152 | 194,136 | 201,162 | ||||
Unrecognized tax benefits if recognized, could favorably affect our effective tax rate | 179,000 | ||||||
Interest and penalty (benefit) expense | 7,000 | 2,000 | $ 4,000 | ||||
Accrued interest and penalties | $ 33,000 | $ 26,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
401(k) Employee Savings Plan | |||
Employer matching contribution as a percentage of voluntary employee contributions under 401(k) plan | 50.00% | ||
Employer maximum annual contribution per employee under 401(k) plan | $ 2,500 | ||
Expense recognized related to 401(k) plan | |||
Matching contributions, net of forfeitures, under 401(k) plan | 11,181,000 | $ 10,300,000 | $ 7,070,000 |
Discretionary stock contributions, net of forfeitures, under 401(k) plan | $ 28,774,000 | $ 27,048,000 | $ 27,969,000 |
Employee Stock Purchase Plan | |||
Expense recognized related to 401(k) plan | |||
Minimum number of calendar quarters to be employed for full-time employees to be eligible to participate in the ESPP | 3 months | ||
Maximum fair value of capital stock permitted to be purchased by employees in any one year under ESPP | $ 25,000 | ||
Employee Stock Purchase Plan | Class A common stock | |||
Expense recognized related to 401(k) plan | |||
Number of shares authorized to be issued under Employee Stock Purchase Plan (ESPP) | 3.8 | ||
Shares of common stock available for future grant under stock incentive plans | 0.2 | ||
Purchase price as percentage of closing market price on the last business day of each calendar quarter under ESPP | 85.00% | ||
Number of shares of common stock purchased under ESPP | 0.6 | 0.6 | 0.3 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 12,792,812 | |||
DISH Network Awards | ||||
Stock-Based Compensation | ||||
Percentage of stock awards vesting per year (as a percent) | 20.00% | |||
Class A common stock | DISH Network Awards | ||||
Stock-Based Compensation | ||||
Shares of common stock available for future grant under stock incentive plans | 80,300,000 | |||
Stock Options | Maximum | ||||
Stock-Based Compensation | ||||
Expiration term | 10 years | |||
Stock Options | DISH Network Awards | ||||
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 12,792,812 | 13,365,489 | 8,847,734 | 7,913,733 |
Stock Options | Class A common stock | DISH Network Awards | ||||
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 12,800,000 | |||
Stock Options | Long-Term Performance Based Plans | DISH Network Awards | ||||
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 7,608,446 | 8,671,886 | 5,490,626 | |
Restricted Stock Units | ||||
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 1,500,000 | |||
Restricted Stock Units | DISH Network Awards | ||||
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 1,500,000 | |||
Restricted Stock Units | Held by DISH DBS employees | DISH Network Awards | ||||
Stock-Based Compensation | ||||
Stock Awards Outstanding (in shares) | 1,446,300 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Outstanding And Exercisable Associated With Employees (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 80 | |||
Number of stock options outstanding (in shares) | 12,792,812 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 6 years 10 months 6 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 41.52 | |||
Number of stock options exercisable | 2,332,489 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 6 years 6 months 3 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 44.77 | |||
Stock Options | DISH Network Awards | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Number of stock options outstanding (in shares) | 12,792,812 | 13,365,489 | 8,847,734 | 7,913,733 |
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 41.52 | $ 41.78 | $ 43.90 | $ 36.22 |
Number of stock options exercisable | 2,332,489 | 1,705,103 | 1,772,608 | |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 44.93 | $ 40.87 | $ 35.13 | |
Range Of Exercise Prices $10.01 - $20.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 10.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 20 | |||
Number of stock options outstanding (in shares) | 616,160 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 6 months | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 15.39 | |||
Number of stock options exercisable | 16,160 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 6 months | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 15.62 | |||
Range of Exercise Prices $20.01 - $30.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 20.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 30 | |||
Number of stock options outstanding (in shares) | 826,983 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 3 years 4 months 13 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 26.74 | |||
Number of stock options exercisable | 124,233 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 3 years 3 months | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 24.02 | |||
Range of Exercise Prices $30.01 - $40.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 30.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 40 | |||
Number of stock options outstanding (in shares) | 6,671,563 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 7 years 11 months 8 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 35.67 | |||
Number of stock options exercisable | 1,057,044 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 7 years 6 months | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 35.52 | |||
Range of Exercise Prices $40.01 - $50.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 40.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 50 | |||
Number of stock options outstanding (in shares) | 1,468,628 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 7 years 7 months 2 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 47.52 | |||
Number of stock options exercisable | 384,800 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 7 years 1 month 6 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 47.24 | |||
Range of Exercise Prices $50.01 - $60.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 50.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 60 | |||
Number of stock options outstanding (in shares) | 2,154,378 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 6 years 5 months 19 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 57.50 | |||
Number of stock options exercisable | 430,952 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 5 years 8 months 8 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 59.90 | |||
Range of Exercise Prices $60.01 - $70.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 60.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 70 | |||
Number of stock options outstanding (in shares) | 1,040,100 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 6 years 3 months 14 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 64.22 | |||
Number of stock options exercisable | 304,300 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 5 years 6 months | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 65.23 | |||
Range of Exercise Prices $70.01 - $70.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 70.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 80 | |||
Number of stock options outstanding (in shares) | 15,000 | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 72.89 | |||
Number of stock options exercisable | 15,000 | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 72.89 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock option activity | |||
Total options outstanding, end of period (in shares) | 12,792,812 | ||
Exercisable at the end of the period (in shares) | 2,332,489 | ||
Weighted-Average Exercise Price | |||
Total options outstanding at the end of the period (in dollars per share) | $ 41.52 | ||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 44.77 | ||
Stock Options | DISH Network Awards | |||
Stock option activity | |||
Total options outstanding, beginning of period (in shares) | 13,365,489 | 8,847,734 | 7,913,733 |
Granted (in shares) | 1,396,750 | 7,026,512 | 3,468,626 |
Exercised (in shares) | (713,411) | (267,905) | (505,125) |
Forfeited and cancelled (in shares) | (1,256,016) | (2,240,852) | (2,029,500) |
Total options outstanding, end of period (in shares) | 12,792,812 | 13,365,489 | 8,847,734 |
Exercisable at the end of the period (in shares) | 2,332,489 | 1,705,103 | 1,772,608 |
Weighted-Average Exercise Price | |||
Total options outstanding, beginning of the period (in dollars per share) | $ 41.78 | $ 43.90 | $ 36.22 |
Granted (in dollars per share) | 33.52 | 38.44 | 59.66 |
Exercised (in dollars per share) | 27.46 | 16.43 | 28.73 |
Forfeited and cancelled (in dollars per share) | 43.40 | 39.73 | 44.64 |
Total options outstanding at the end of the period (in dollars per share) | 41.52 | 41.78 | 43.90 |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 44.93 | $ 40.87 | $ 35.13 |
Stock Options | DISH Network Awards | Long-Term Performance Based Plans | |||
Stock option activity | |||
Total options outstanding, beginning of period (in shares) | 8,671,886 | 5,490,626 | |
Total options outstanding, end of period (in shares) | 7,608,446 | 8,671,886 | 5,490,626 |
Weighted-Average Exercise Price | |||
Total options outstanding, beginning of the period (in dollars per share) | $ 39.95 | $ 42.81 | |
Total options outstanding at the end of the period (in dollars per share) | $ 39.78 | $ 39.95 | $ 42.81 |
Stock-Based Compensation - Tax
Stock-Based Compensation - Tax Benefits From Stock Awards Exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options | |||
Stock-Based Compensation | |||
Tax benefit from stock awards exercised | $ 1,239 | $ 1,664 | $ 9,347 |
Stock-Based Compensation - Aggr
Stock-Based Compensation - Aggregate Intrinsic Value Of Stock Options (Details) - Stock Options - DISH Network Awards $ in Thousands | Dec. 31, 2019USD ($) |
Aggregate intrinsic value | |
Aggregate intrinsic value of stock options outstanding | $ 21,829 |
Aggregate intrinsic value of stock options exercisable | $ 2,136 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - DISH Network Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units | |||
Restricted stock unit activity | |||
Total restricted stock units outstanding, beginning of period (in shares) | 1,718,945 | 2,484,720 | 1,336,000 |
Granted (in shares) | 1,871,375 | ||
Vested (in shares) | (9,565) | (10,475) | (14,845) |
Forfeited and cancelled (in shares) | (245,730) | (755,300) | (707,810) |
Total restricted stock units outstanding, end of period (in shares) | 1,463,650 | 1,718,945 | 2,484,720 |
Weighted- Average Grant Date Fair Value | |||
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ 52.16 | $ 51.16 | $ 32.11 |
Granted (in dollars per share) | 63.87 | ||
Vested (in dollars per share) | 63.49 | 63.49 | 62.58 |
Forfeited and cancelled (in dollars per share) | 59.86 | 48.51 | 48.59 |
Total restricted stock units outstanding, end of period (in dollars per share) | $ 50.82 | $ 52.16 | $ 51.16 |
Performance Based Restricted Stock Units | |||
Restricted stock unit activity | |||
Total restricted stock units outstanding, beginning of period (in shares) | 1,689,350 | 2,435,500 | |
Total restricted stock units outstanding, end of period (in shares) | 1,446,300 | 1,689,350 | 2,435,500 |
Weighted- Average Grant Date Fair Value | |||
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ 51.97 | $ 50.91 | |
Total restricted stock units outstanding, end of period (in dollars per share) | $ 50.66 | $ 51.97 | $ 50.91 |
Stock-Based Compensation - LTIP
Stock-Based Compensation - LTIP (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2016 | |
Recognized non-cash stock-based compensation expense | |||||||
Non-cash stock-based compensation expense recognized | $ 13,853 | $ 35,521 | $ 29,941 | ||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 12,792,812 | ||||||
Weighted-Average Exercise Price (in dollars per share) | $ 41.52 | ||||||
Unrecognized compensation expense, weighted average period | 2 years 9 months 18 days | ||||||
Long-Term Performance Based Plans | |||||||
Recognized non-cash stock-based compensation expense | |||||||
Non-cash stock-based compensation expense recognized | $ 431 | $ 22,185 | 17,868 | ||||
2013 LTIP | |||||||
Share-based compensation additional disclosures | |||||||
Portion vested (as a percent) | 20.00% | ||||||
Percentage of performance goals probable of achievement | 30.00% | 10.00% | 20.00% | ||||
Recognized non-cash stock-based compensation expense | |||||||
Non-cash stock-based compensation expense recognized | (1,021) | $ (2,471) | $ (321) | ||||
2017 LTIP | |||||||
Share-based compensation additional disclosures | |||||||
Percentage of performance goals probable of achievement | 75.00% | 75.00% | |||||
Non-cash stock-based compensation expense | 13,000 | ||||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | |||||||
Non-cash, stock-based compensation expense recognized | $ (12,902) | $ 3,293 | $ 10,640 | ||||
2019 LTIP | |||||||
Share-based compensation additional disclosures | |||||||
Percentage of performance goals probable of achievement | 90.00% | 82.00% | |||||
Percentage of awards vested | 18.00% | ||||||
Recognized non-cash stock-based compensation expense | |||||||
Non-cash stock-based compensation expense recognized | $ 14,946 | $ 3,475 | |||||
Other Employee Performance Awards | |||||||
Recognized non-cash stock-based compensation expense | |||||||
Non-cash stock-based compensation expense recognized | (592) | $ 17,888 | $ 7,549 | ||||
Non-Performance Based Stock Awards | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Unrecognized compensation expense | 26,000 | ||||||
DISH Network Awards | 2013 LTIP | |||||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | |||||||
Estimated contingent expense subsequent to 2020 | 29,766 | ||||||
Total estimated remaining expense over the term of plan | 29,766 | ||||||
DISH Network Awards | 2017 LTIP | |||||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | |||||||
Estimated contingent expense subsequent to 2020 | 29,341 | ||||||
Total estimated remaining expense over the term of plan | 29,341 | ||||||
DISH Network Awards | 2019 LTIP | |||||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | |||||||
Expense estimated to be recognized during 2020 | 10,541 | ||||||
Estimated contingent expense subsequent to 2020 | 12,682 | ||||||
Total estimated remaining expense over the term of plan | 23,223 | ||||||
DISH Network Awards | Other Employee Performance Awards | |||||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | |||||||
Estimated contingent expense subsequent to 2020 | 61,322 | ||||||
Total estimated remaining expense over the term of plan | $ 61,322 | ||||||
Stock Options | DISH Network Awards | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 12,792,812 | 13,365,489 | 8,847,734 | 7,913,733 | |||
Weighted-Average Exercise Price (in dollars per share) | $ 41.52 | $ 41.78 | $ 43.90 | $ 36.22 | |||
Stock Options | DISH Network Awards | Long-Term Performance Based Plans | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 7,608,446 | 8,671,886 | 5,490,626 | ||||
Weighted-Average Exercise Price (in dollars per share) | $ 39.78 | $ 39.95 | $ 42.81 | ||||
Stock Options | DISH Network Awards | 2013 LTIP | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 875,000 | ||||||
Weighted-Average Exercise Price (in dollars per share) | $ 41.08 | ||||||
Stock Options | DISH Network Awards | 2017 LTIP | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 2,083,071 | ||||||
Weighted-Average Exercise Price (in dollars per share) | $ 57.12 | ||||||
Stock Options | DISH Network Awards | 2019 LTIP | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 3,510,375 | ||||||
Weighted-Average Exercise Price (in dollars per share) | $ 35.16 | ||||||
Stock Options | DISH Network Awards | Other Employee Performance Awards | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 1,140,000 | ||||||
Weighted-Average Exercise Price (in dollars per share) | $ 21.31 | ||||||
Restricted Stock Units | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 1,500,000 | ||||||
Restricted Stock Units | DISH Network Awards | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 1,500,000 | ||||||
Restricted Stock Units | DISH Network Awards | 2013 LTIP | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 437,500 | ||||||
Restricted Stock Units | DISH Network Awards | Other Employee Performance Awards | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 1,008,800 | ||||||
Restricted Stock Units | DISH Network Awards | Held by DISH DBS employees | |||||||
Outstanding awards pursuant to performance-based stock incentive plans | |||||||
Performance Based Stock Options (in shares) | 1,446,300 | ||||||
Subscriber-related | |||||||
Recognized non-cash stock-based compensation expense | |||||||
Non-cash stock-based compensation expense recognized | $ 509 | $ 1,150 | $ 1,562 | ||||
Satellite and transmission | |||||||
Recognized non-cash stock-based compensation expense | |||||||
Non-cash stock-based compensation expense recognized | 329 | 262 | 1,761 | ||||
General and administrative | |||||||
Recognized non-cash stock-based compensation expense | |||||||
Non-cash stock-based compensation expense recognized | $ 13,015 | $ 34,109 | $ 26,618 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Of Stock Options Granted (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Black-Scholes option valuation model, assumptions | |||
Risk-free interest rate, low end of range (as a percent) | 1.51% | 2.09% | 1.34% |
Risk-free interest rate, high end of range (as a percent) | 2.53% | 2.98% | 2.29% |
Volatility factor, low end of range (as a percent) | 28.86% | 23.33% | 22.25% |
Volatility factor, high end of range (as a percent) | 32.08% | 30.22% | 26.15% |
Maximum | |||
Black-Scholes option valuation model, assumptions | |||
Expected term of options | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Weighted-average fair value of options granted (in dollars per share) | $ 12.45 | $ 12.53 | $ 16.69 |
Minimum | |||
Black-Scholes option valuation model, assumptions | |||
Expected term of options | 4 years 3 months 18 days | 2 years 9 months 18 days | 3 years 9 months 18 days |
Weighted-average fair value of options granted (in dollars per share) | $ 7.58 | $ 7.10 | $ 11.95 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitment and Contingencies | |
Total | $ 15,510,845 |
2020 | 3,309,741 |
2021 | 2,896,441 |
2022 | 2,699,501 |
2023 | 1,904,406 |
2024 | 2,334,303 |
Thereafter | 2,366,453 |
Long-term debt obligations | |
Commitment and Contingencies | |
Total | 10,625,996 |
2020 | 1,102,430 |
2021 | 2,002,554 |
2022 | 2,002,683 |
2023 | 1,502,820 |
2024 | 2,002,964 |
Thereafter | 2,012,545 |
Interest Expense On Long Term Debt [Member] | |
Commitment and Contingencies | |
Total | 2,524,898 |
2020 | 629,410 |
2021 | 533,599 |
2022 | 465,969 |
2023 | 310,832 |
2024 | 273,188 |
Thereafter | 311,900 |
Finance Lease Obligations [Member] | |
Commitment and Contingencies | |
Total | 212,617 |
2020 | 48,678 |
2021 | 53,150 |
2022 | 41,666 |
2023 | 38,018 |
2024 | 31,105 |
Interest expense on finanace lease obligations | |
Commitment and Contingencies | |
Total | 45,183 |
2020 | 17,607 |
2021 | 13,129 |
2022 | 8,561 |
2023 | 4,844 |
2024 | 1,042 |
Satellite-related obligations | |
Commitment and Contingencies | |
Total | 219,019 |
2020 | 71,931 |
2021 | 65,663 |
2022 | 41,291 |
2023 | 23,321 |
2024 | 16,813 |
Operating lease obligations | |
Commitment and Contingencies | |
Total | 641,792 |
2020 | 239,660 |
2021 | 199,062 |
2022 | 127,300 |
2023 | 24,571 |
2024 | 9,191 |
Thereafter | 42,008 |
Purchase obligations | |
Commitment and Contingencies | |
Total | 1,241,340 |
2020 | 1,200,025 |
2021 | 29,284 |
2022 | $ 12,031 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | Jun. 05, 2017 | May 22, 2017 | Sep. 23, 2016 | Dec. 23, 2013 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments and Contingencies | ||||||||||||
Term barred from conducting any outbound telemarketing | 2 years | |||||||||||
Phase two expected expenditures | $ 10,000,000,000 | |||||||||||
Litigation expense (Note 12) | $ 295,695,000 | |||||||||||
Unrecognized tax benefits | 208,152,000 | $ 194,136,000 | 201,162,000 | $ 208,152,000 | $ 201,693,000 | |||||||
Total rent expense for operating leases | $ 357,000,000 | 449,000,000 | $ 473,000,000 | |||||||||
Other accrued expenses | ||||||||||||
Commitments and Contingencies | ||||||||||||
Claim amount | $ 1,200 | |||||||||||
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 | $ 11,000,000,000 | 11,000,000,000 | 11,000,000,000 | $ 11,000,000,000 | ||||||||
Dish Network | Maximum | ||||||||||||
Commitments and Contingencies | ||||||||||||
Phase one expected expenditures | 500,000,000 | |||||||||||
Dish Network | Minimum | ||||||||||||
Commitments and Contingencies | ||||||||||||
Phase one expected expenditures | 250,000,000 | |||||||||||
Northstar Spectrum And SNR Holdco | ||||||||||||
Commitments and Contingencies | ||||||||||||
Non-controlling investments | 10,000,000,000 | 10,000,000,000 | $ 10,000,000,000 | |||||||||
Northstar Spectrum And SNR Holdco | DISH Network L.L.C. | ||||||||||||
Commitments and Contingencies | ||||||||||||
Non-controlling investments | 10,000,000,000 | 10,000,000,000 | ||||||||||
Northstar Spectrum And SNR Holdco | Dish Network | ||||||||||||
Commitments and Contingencies | ||||||||||||
Non-controlling investments | $ 10,000,000,000 | $ 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | ||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | ||||||||||||
Commitments and Contingencies | ||||||||||||
Bidding credit credits | 25.00% | |||||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | Maximum | ||||||||||||
Commitments and Contingencies | ||||||||||||
Claim amount | $ 11,000 | |||||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | Minimum | ||||||||||||
Commitments and Contingencies | ||||||||||||
Claim amount | $ 5,500 | |||||||||||
Krakauer Action | ||||||||||||
Commitments and Contingencies | ||||||||||||
Claim amount | 10,760,000 | |||||||||||
Krakauer Action | Other accrued expenses | ||||||||||||
Commitments and Contingencies | ||||||||||||
Loss Contingency Accrual | 61,000,000 | |||||||||||
Telemarketing Litigation | ||||||||||||
Commitments and Contingencies | ||||||||||||
Demonstration requirements period | 5 years | |||||||||||
Loss Contingency Accrual | $ 280,000,000 | |||||||||||
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services | 5 years | 5 years | ||||||||||
Telemarketing Litigation | DISH Network L.L.C. | ||||||||||||
Commitments and Contingencies | ||||||||||||
Claim amount | $ 270,000,000 | $ 270,000,000 | ||||||||||
Telemarketing Litigation | Other accrued expenses | ||||||||||||
Commitments and Contingencies | ||||||||||||
Loss Contingency Accrual | $ 280,000,000 | 280,000,000 | $ 280,000,000 | 280,000,000 | 280,000,000 | |||||||
ClearPlay, Inc. | ||||||||||||
Commitments and Contingencies | ||||||||||||
Loss contingency | $ 543,000,000 | $ 543,000,000 | $ 543,000,000 | $ 543,000,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Narrative Part 2 (Details) | Sep. 27, 2019USD ($) | Apr. 05, 2018USD ($) | Oct. 06, 2017USD ($) | Jun. 05, 2017USD ($) | May 22, 2017USD ($) | Sep. 23, 2016USD ($) | Feb. 12, 2015USD ($) | Feb. 28, 2015USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Oct. 01, 2018USD ($) |
Loss contingencies | ||||||||||||||||||||
Unrecognized Tax Benefits | $ 201,693,000 | $ 208,152,000 | $ 194,136,000 | $ 201,162,000 | $ 208,152,000 | |||||||||||||||
Total investment | 90,381,000 | |||||||||||||||||||
Dividend paid to DOC | $ 8,250,000,000 | $ 8,250,000,000 | ||||||||||||||||||
Interest on loss contingency | $ 24,000,000 | |||||||||||||||||||
Litigation expense | 255,000,000 | |||||||||||||||||||
General and administrative expenses | $ 156,574,000 | $ 187,930,000 | $ 341,498,000 | $ 374,507,000 | 732,589,000 | 692,881,000 | 669,934,000 | |||||||||||||
Dish Network | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Total investment | $ 21,000,000,000 | 21,000,000,000 | ||||||||||||||||||
Payment to acquire certain wireless licenses and related assets | $ 11,000,000,000 | 11,000,000,000 | 11,000,000,000 | $ 11,000,000,000 | ||||||||||||||||
Other accrued expenses | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Claim amount | $ 1,200 | |||||||||||||||||||
Litigation expense | $ (41,000,000) | |||||||||||||||||||
Telemarketing Litigation | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services | 5 years | 5 years | ||||||||||||||||||
Number of years for which the company will be barred from accepting orders from that independent third-party retailer if the company fails to prove that a particular independent third-party retailer meets the Demonstration Requirements | 2 years | |||||||||||||||||||
Litigation expense | $ (255,000,000) | $ (25,000,000) | ||||||||||||||||||
Litigation accrual | $ 280,000,000 | |||||||||||||||||||
Telemarketing Litigation | Other accrued expenses | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Litigation accrual | $ 280,000,000 | $ 280,000,000 | $ 280,000,000 | 280,000,000 | $ 280,000,000 | $ 280,000,000 | ||||||||||||||
Krakauer Action | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Claim amount | 10,760,000 | |||||||||||||||||||
Litigation expense | $ (20,000,000) | |||||||||||||||||||
Krakauer Action | Other accrued expenses | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Litigation accrual | $ 61,000,000 | |||||||||||||||||||
Turner Network Sales | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Claim amount | $ 159,000,000 | |||||||||||||||||||
Interest on loss contingency | $ 30,000,000 | $ 24,000,000 | ||||||||||||||||||
Loss contingency | 118,000,000 | |||||||||||||||||||
License fee payments | $ 20,000,000 | |||||||||||||||||||
Telemarketing Litigation | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Judgment in favor of the court | $ 61,000,000 | |||||||||||||||||||
Do Not Call Litigation | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Number of telemarketing calls | item | 51,119 | |||||||||||||||||||
Litigation per call damages | $ 400 | |||||||||||||||||||
AWS 3 Auction | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Bidding Credit | $ 3,300,000,000 | |||||||||||||||||||
Loss Contingency Recovery Amount | 10,000,000,000 | |||||||||||||||||||
AWS 3 Auction | Maximum | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Claim amount | 11,000 | |||||||||||||||||||
AWS 3 Auction | Minimum | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Claim amount | $ 5,500 | |||||||||||||||||||
Prepaid Business Sale [Member] | ||||||||||||||||||||
Loss contingencies | ||||||||||||||||||||
Total investment | 1,400,000,000 | |||||||||||||||||||
Payment to acquire certain wireless licenses and related assets | $ 3,590,000,000 | $ 3,590,000,000 |
Disaggregation of Revenue - Rev
Disaggregation of Revenue - Revenue by geographic location (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue | |||||||
Revenue | $ 3,148,531 | $ 3,166,599 | $ 6,316,313 | $ 6,304,599 | $ 12,622,893 | $ 13,362,139 | $ 14,007,511 |
United States | |||||||
Disaggregation of Revenue | |||||||
Revenue | 3,144,992 | 3,155,828 | 6,302,296 | 6,282,937 | 12,581,855 | 13,319,091 | 13,967,694 |
Canada and Mexico | |||||||
Disaggregation of Revenue | |||||||
Revenue | $ 3,539 | $ 10,771 | $ 14,017 | $ 21,662 | $ 41,038 | $ 43,048 | $ 39,817 |
Disaggregation of Revenue - R_2
Disaggregation of Revenue - Revenue from external customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue | |||||||
Revenue | $ 3,148,531 | $ 3,166,599 | $ 6,316,313 | $ 6,304,599 | $ 12,622,893 | $ 13,362,139 | $ 14,007,511 |
Pay-TV video and related revenue | |||||||
Disaggregation of Revenue | |||||||
Revenue | 3,117,334 | 3,117,066 | 6,248,234 | 6,215,002 | 12,436,637 | 13,197,994 | 13,877,196 |
Equipment sales and other revenue | |||||||
Disaggregation of Revenue | |||||||
Revenue | $ 31,197 | $ 49,533 | $ 68,079 | $ 89,597 | $ 186,256 | $ 164,145 | $ 130,315 |
Contract Balances (Details)
Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | $ 19,280 | $ 16,956 | $ 15,056 | $ 17,440 |
Charged to Cost and Expenses | 51,808 | 69,866 | 98,461 | 124,143 |
Deductions | (29,900) | (67,542) | (96,561) | (126,527) |
Balance at End of Period | 41,188 | 19,280 | 16,956 | $ 15,056 |
Balance at Beginning of Period | 609,054 | 624,626 | ||
Recognition of unearned revenue | (2,951,822) | (7,086,252) | ||
Deferral of revenue | 2,925,648 | 7,070,680 | ||
Balance at End of Period | $ 582,880 | $ 609,054 | $ 624,626 | |
Remaining performance obligations | true | true |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Data (Unaudited) | |||||||||||||||
Total revenue | $ 3,148,531 | $ 3,196,012 | $ 3,122,282 | $ 3,166,599 | $ 3,138,000 | $ 3,251,166 | $ 3,334,444 | $ 3,393,307 | $ 3,383,222 | $ 6,316,313 | $ 6,304,599 | $ 12,622,893 | $ 13,362,139 | $ 14,007,511 | |
Operating income (loss) | 663,897 | 515,999 | 438,498 | 435,966 | 430,735 | 466,448 | 542,439 | 549,502 | 508,121 | 1,171,099 | 866,701 | 1,821,198 | 2,066,510 | 1,609,876 | |
Net income (loss) attributable to DISH DBS | $ 374,980 | $ 244,153 | $ 259,545 | $ 204,858 | $ 185,368 | $ 177,760 | $ 200,132 | $ 281,272 | $ 285,691 | $ 204,192 | $ 619,133 | $ 363,128 | $ 827,531 | $ 971,287 | $ 723,526 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | May 31, 2017 | Feb. 12, 2015USD ($) | Dec. 21, 2012 | Dec. 21, 2012 | Jan. 21, 2012 | Jan. 02, 2012item | Jan. 02, 2012 | May 31, 2017 | Jul. 31, 2016 | Feb. 28, 2015USD ($) | May 31, 2012 | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2013item | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2009item | Dec. 31, 2008item |
Related Party Transaction [Line Items] | |||||||||||||||||||||
Payments of Dividends | $ | $ 8,250,000 | $ 8,250,000 | |||||||||||||||||||
Satellite and transmission expenses | $ | $ 117,912 | $ 144,983 | $ 239,973 | $ 299,880 | $ 555,803 | $ 637,160 | $ 717,231 | ||||||||||||||
Net book value of asset | $ | 9,070 | ||||||||||||||||||||
EchoStar XVI | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Agreement Renewal Option Term | 5 years | 5 years | |||||||||||||||||||
TT&C Agreement | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Purchase of renewal of agreement | 1 year | ||||||||||||||||||||
Number of automatic renewal period | 4 | ||||||||||||||||||||
EchoStar | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Satellite and transmission expenses | $ | 1,000 | 72,000 | $ 1,000 | 143,000 | 198,000 | 309,000 | 346,000 | ||||||||||||||
EchoStar | EchoStar XVI | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Agreement term from commencement of service date | 4 years | 4 years | |||||||||||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||||||||||||
Additional term of renewal option | 5 years | 5 years | 5 years | 5 years | 1 year | ||||||||||||||||
EchoStar | Telesat Transponder Agreement | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Agreement term | 15 years | ||||||||||||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||||||||||||
Agreement term with third party | 15 years | ||||||||||||||||||||
Number of DBS transponders available to receive services | 32 | ||||||||||||||||||||
EchoStar | DISH Nimiq 5 Agreement | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Agreement term | 10 years | ||||||||||||||||||||
Number of DBS transponders currently used | 32 | ||||||||||||||||||||
EchoStar | QuetzSat-1 Lease Agreement | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Agreement term with third party | 10 years | ||||||||||||||||||||
Number of DBS transponders available to receive services | 32 | ||||||||||||||||||||
Number of DBS transponders currently used | 24 | ||||||||||||||||||||
Number of transponders subleased | 5 | ||||||||||||||||||||
EchoStar | 103 degree orbital location | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Agreement term | 10 years | ||||||||||||||||||||
EchoStar | TT&C Agreement | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Required notice period for termination by the reporting entity | 12 months | 12 months | |||||||||||||||||||
Number of automatic renewal period | 4 | ||||||||||||||||||||
Dish Network | |||||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||||
Satellite and transmission expenses | $ | $ 56,000 | $ 8,000 | $ 112,000 | $ 25,000 | $ 93,000 | $ 67,000 | $ 67,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative Part 1 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||||
Satellite and transmission expenses | $ 117,912 | $ 144,983 | $ 239,973 | $ 299,880 | $ 555,803 | $ 637,160 | $ 717,231 |
Trade accounts receivable | 514,086 | 514,086 | 568,679 | 623,602 | |||
Trade accounts payable | 338,109 | 338,109 | 266,417 | 217,268 | |||
Broadband, Wireless and Other Segments | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses associated with services | 18,000 | 14,000 | 39,000 | 26,000 | 54,000 | 40,000 | 48,000 |
Office Space from DISH Network | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses associated with services | 2,000 | 0 | |||||
Office Space from DISH Network | Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses associated with services | 3,000 | ||||||
EchoStar | |||||||
Related Party Transaction [Line Items] | |||||||
Satellite and transmission expenses | 1,000 | 72,000 | 1,000 | 143,000 | 198,000 | 309,000 | 346,000 |
Trade accounts receivable | 4,000 | 4,000 | 1,000 | 4,000 | |||
Trade accounts payable | 14,000 | 14,000 | 3,000 | 6,000 | |||
Equipment sales and other revenue | $ 1,000 | $ 1,000 | $ 2,000 | $ 3,000 | $ 6,000 | $ 8,000 | $ 3,000 |
Related Party Transactions - _2
Related Party Transactions - Narrative Part 2 (Details) $ in Thousands | Mar. 01, 2017item | Sep. 30, 2019 | Aug. 31, 2017item | Jan. 31, 2012item | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2012item | Dec. 31, 2009 |
Related Party Transaction [Line Items] | |||||||||||||
Subscriber acquisition costs | $ | $ 1,863,895 | $ 1,974,439 | $ 3,797,718 | $ 3,950,875 | $ 7,768,732 | $ 8,392,150 | $ 8,692,676 | ||||||
100 Inverness Lease Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Required notice period for termination by the reporting entity | 180 days | ||||||||||||
EchoStar | El Paso Lease Agreement | Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of consecutive three year renewal options | 4 | ||||||||||||
Agreement Renewal Option Term | 3 years | ||||||||||||
EchoStar | El Paso Lease Agreement | Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of consecutive three year renewal options | 4 | ||||||||||||
Agreement Renewal Option Term | 3 years | ||||||||||||
EchoStar | Professional Services Agreement | Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Agreement term | 1 year | ||||||||||||
Automatic renewal period | 1 year | ||||||||||||
Minimum notice period for termination of agreement | 60 days | ||||||||||||
EchoStar | 90 Inverness Lease Agreement | Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of consecutive three year renewal options | 4 | ||||||||||||
Agreement Renewal Option Term | 3 years | ||||||||||||
EchoStar | 90 Inverness Lease Agreement | Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of consecutive three year renewal options | 4 | ||||||||||||
EchoStar | Cheyenne Lease Agreement | Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of successive one year renewal options | 12 | ||||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||||
Required notice period for termination by the reporting entity | 180 days | ||||||||||||
EchoStar | Cheyenne Lease Agreement | Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of successive one year renewal options | 12 | ||||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||||
Required notice period for termination by the reporting entity | 180 days | ||||||||||||
EchoStar | Gilbert Lease Agreement | Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||||
EchoStar | Gilbert Lease Agreement | Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of successive one year renewal options | 12 | ||||||||||||
EchoStar | Collocation And Antenna Space Agreements | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Required notice period for termination by the reporting entity | 180 days | ||||||||||||
HNS | Collocation And Antenna Space Agreements | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Agreement Renewal Option Term | 1 year | 3 years | |||||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | Minimum | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Required notice period for termination by the reporting entity | 90 days | ||||||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | Maximum | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Required notice period for termination by the reporting entity | 120 days | ||||||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of consecutive three year renewal options | 4 | ||||||||||||
Agreement Renewal Option Term | 3 years |
Related Party Transactions - _3
Related Party Transactions - Narrative Part 3 (Details) - USD ($) $ in Thousands | Mar. 01, 2017 | Dec. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2009 |
Related Party Transaction [Line Items] | |||||||||||
General and administrative expenses | $ 156,574 | $ 187,930 | $ 341,498 | $ 374,507 | $ 732,589 | $ 692,881 | $ 669,934 | ||||
Meridian Lease Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Additional term of renewal option | 1 year | 1 year | |||||||||
Santa Fe Lease Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Additional term of renewal option | 1 year | 1 year | 1 year | ||||||||
EchoStar | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
General and administrative expenses | $ 3,000 | $ 6,000 | $ 7,000 | $ 11,000 | $ 20,000 | $ 21,000 | $ 29,000 | ||||
EchoStar | Dish Network | American Fork Occupancy License Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Term of renewal option exercised | 5 years | ||||||||||
Dish Network | EchoStar | 90 Inverness Lease Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Agreement Renewal Option Term | 3 years | ||||||||||
Dish Network | EchoStar | Gilbert Lease Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||
Dish Network | EchoStar | American Fork Occupancy License Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Agreement Renewal Option Term | 5 years | ||||||||||
Dish Network | EchoStar | Professional Services Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Minimum notice period for termination of agreement | 60 days | ||||||||||
Minimum notice period for termination of a specific service | 30 days | ||||||||||
Agreement term | 1 year |
Related Party Transactions - _4
Related Party Transactions - Narrative Part 4 (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2011 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||||||||
Cost of sales - equipment and other | $ 23,660 | $ 49,603 | $ 54,474 | $ 89,944 | $ 172,700 | $ 143,671 | $ 95,116 | |
EchoStar | Patent Cross-License Agreements | Maximum | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments to third party by related party | $ 10,000 | |||||||
Payments to third party by related party under extension option | 3,000 | |||||||
EchoStar | Patent Cross-License Agreements | Dish Network | Maximum | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments to third party by related party | 10,000 | |||||||
Payments to third party by related party under extension option | $ 3,000 |
Related Party Transactions - Pa
Related Party Transactions - Part 5 (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2017 | Aug. 19, 2016 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | |
Related Party Transaction [Line Items] | ||||||||||
Sales | $ 1,288 | $ 1,412 | $ 2,669 | $ 2,816 | ||||||
Rovi License Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Agreement term | 10 years | |||||||||
Payments to Related Parties | 0 | $ 0 | ||||||||
Hughes Broadband Sales Agency Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Required notice period for termination by the reporting entity | 90 days | |||||||||
Agreement term | 5 years | |||||||||
Automatic renewal period | 1 year | |||||||||
Broadband equipment purchased from related party | 3,000 | 3,000 | 7,000 | 8,000 | $ 14,000 | $ 21,000 | $ 22,000 | |||
NagraStar | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest on equity method investment | 50.00% | 50.00% | ||||||||
Purchases from NagraStar | 13,259 | 14,355 | 27,351 | 28,714 | $ 56,284 | 72,162 | 71,167 | |||
Amounts payable to NagraStar | 17,930 | 17,930 | 9,630 | 9,871 | ||||||
Commitments to NagraStar | $ 4,159 | $ 4,159 | $ 4,893 | 3,888 | ||||||
Dish Mexico | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest on equity method investment | 49.00% | 49.00% | 49.00% | |||||||
Sales | $ 5,620 | 6,653 | 5,885 | |||||||
Amounts receivable | $ 2,116 | $ 2,116 | 1,191 | 1,370 | ||||||
Dish Mexico | Digital receivers and related components | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Sales | 1,227 | 1,891 | ||||||||
Dish Mexico | Uplink services | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Sales | $ 1,288 | $ 1,412 | $ 2,669 | $ 2,816 | $ 5,620 | $ 5,426 | $ 3,994 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||||||||
Cash and cash equivalents | $ 26,819 | $ 17,426 | $ 129,498 | |||||
Marketable investment securities | 31 | 149,740 | ||||||
Trade accounts receivable, net of allowance for credit losses and allowance for doubtful accounts of $41,188 and $19,280, respectively | 514,086 | 568,679 | 623,602 | |||||
Inventory | 301,408 | 321,983 | 290,697 | |||||
Other current assets | 179,818 | 164,767 | 234,054 | |||||
Total current assets | 1,022,162 | 1,072,855 | 1,427,591 | |||||
Noncurrent Assets: | ||||||||
Restricted cash, cash equivalents and marketable investment securities | 61,349 | 61,067 | 67,597 | |||||
Property and equipment, net | 1,661,928 | 1,751,573 | 1,377,949 | |||||
FCC authorizations | 611,794 | 611,794 | 637,346 | |||||
Other investment securities | 96,886 | 106,874 | 108,308 | |||||
Operating lease assets | 471,987 | 553,576 | ||||||
Other noncurrent assets, net | 230,230 | 228,820 | 286,753 | |||||
Total noncurrent assets | 3,134,174 | 3,313,704 | 2,477,953 | |||||
Total assets | 4,156,336 | 4,386,559 | 3,905,544 | |||||
Current Liabilities: | ||||||||
Trade accounts payable | 338,109 | 266,417 | 217,268 | |||||
Advances from affiliates | 82,415 | |||||||
Deferred revenue and other | 652,866 | 674,079 | 644,920 | |||||
Accrued programming | 1,683,468 | 1,308,531 | 1,474,207 | |||||
Accrued interest | 180,248 | 189,039 | 222,996 | |||||
Other accrued expenses | 893,149 | 918,333 | 756,534 | |||||
Current portion of long-term debt and finance lease obligations | 2,053,291 | 1,151,108 | 1,338,527 | |||||
Total current liabilities | 5,801,131 | 4,589,922 | 4,654,452 | |||||
Long-Term Obligations, Net of Current Portion: | ||||||||
Long-term debt and finance lease obligations, net of current portion | 7,647,933 | 9,671,255 | 10,632,960 | |||||
Deferred tax liabilities | 521,433 | 501,857 | 461,452 | |||||
Operating lease liabilities | 267,154 | 350,155 | ||||||
Long-term deferred revenue and other long-term liabilities | 224,210 | 207,992 | 198,840 | |||||
Total long-term obligations, net of current portion | 8,660,730 | 10,731,259 | 11,293,252 | |||||
Total liabilities | 14,461,861 | 15,321,181 | 15,947,704 | |||||
Commitments and Contingencies (Note 9) | ||||||||
Stockholder's Equity (Deficit): | ||||||||
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | ||||||||
Additional paid-in capital | 1,443,022 | 1,432,736 | 1,152,369 | |||||
Accumulated other comprehensive income (loss) | (771) | (449) | (376) | |||||
Accumulated earnings (deficit) | (11,747,776) | (12,366,909) | (13,194,440) | |||||
Total stockholder's equity (deficit) | (10,305,525) | $ (10,683,879) | (10,934,622) | $ (11,388,977) | $ (11,853,360) | (12,042,160) | $ (13,046,663) | $ (13,792,150) |
Total liabilities and stockholder's equity (deficit) | $ 4,156,336 | $ 4,386,559 | $ 3,905,544 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | |||
Allowance for credit losses | $ 41,188 | $ 19,280 | $ 16,956 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Common stock, shares issued | 1,015 | 1,015 | 1,015 |
Common stock, shares outstanding | 1,015 | 1,015 | 1,015 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||||||
Total revenue | $ 3,148,531 | $ 3,166,599 | $ 6,316,313 | $ 6,304,599 | $ 12,622,893 | $ 13,362,139 | $ 14,007,511 |
Costs and Expenses (exclusive of depreciation shown separately below - Note 6): | |||||||
Subscriber-related expenses | 1,863,895 | 1,974,439 | 3,797,718 | 3,950,875 | 7,768,732 | 8,392,150 | 8,692,676 |
Satellite and transmission expenses | 117,912 | 144,983 | 239,973 | 299,880 | 555,803 | 637,160 | 717,231 |
Cost of sales - equipment and other | 23,660 | 49,603 | 54,474 | 89,944 | 172,700 | 143,671 | 95,116 |
Subscriber acquisition costs: | |||||||
Cost of sales - subscriber promotion subsidies | 1,159 | 3,007 | 10,048 | 9,524 | 29,592 | 50,253 | 72,955 |
Other subscriber acquisition costs | 109,055 | 108,289 | 222,957 | 188,764 | |||
Subscriber acquisition advertising | 89,510 | 126,782 | 220,592 | 233,689 | |||
Total subscriber acquisition costs | 199,724 | 238,078 | 453,597 | 431,977 | 994,523 | 769,307 | 1,185,211 |
General and administrative expenses | 156,574 | 187,930 | 341,498 | 374,507 | 732,589 | 692,881 | 669,934 |
Depreciation and amortization (Note 6) | 122,869 | 135,600 | 257,954 | 290,715 | 577,348 | 660,460 | 741,772 |
Total costs and expenses | 2,484,634 | 2,730,633 | 5,145,214 | 5,437,898 | 10,801,695 | 11,295,629 | 12,397,635 |
Operating income (loss) | 663,897 | 435,966 | 1,171,099 | 866,701 | 1,821,198 | 2,066,510 | 1,609,876 |
Other Income (Expense): | |||||||
Interest income | 1,112 | 5,593 | 1,962 | 8,528 | 30,041 | 8,923 | 9,855 |
Interest expense, net of amounts capitalized | (164,047) | (194,857) | (346,387) | (390,502) | (756,690) | (792,436) | (865,181) |
Other, net | (152) | 3,131 | 793 | 4,564 | 7,609 | 8,994 | 88,511 |
Total other income (expense) | (163,087) | (186,133) | (343,632) | (377,410) | (719,040) | (774,519) | (766,815) |
Income (loss) before income taxes | 500,810 | 249,833 | 827,467 | 489,291 | 1,102,158 | 1,291,991 | 843,061 |
Income tax (provision) benefit, net | (125,830) | (64,465) | (208,334) | (126,287) | (274,751) | (318,305) | (117,616) |
Net income (loss) | 374,980 | 185,368 | 619,133 | 363,004 | 827,407 | 973,686 | 725,445 |
Less: Net income (loss) attributable to noncontrolling interests, net of tax | (124) | (124) | 2,399 | 1,919 | |||
Net income (loss) attributable to DISH DBS | 374,980 | 185,368 | 619,133 | 363,128 | 827,531 | 971,287 | 723,526 |
Comprehensive Income (Loss): | |||||||
Net income (loss) | 374,980 | 185,368 | 619,133 | 363,004 | 827,407 | 973,686 | 725,445 |
Other comprehensive income (loss): | |||||||
Foreign currency translation adjustments | 30 | 138 | (322) | 185 | (133) | (1,343) | 1,027 |
Unrealized holding gains (losses) on available-for-sale debt securities | 11 | 102 | 254 | 81 | 69 | (33) | |
Deferred income tax (expense) benefit, net | (27) | (65) | (21) | (37) | 57 | ||
Total other comprehensive income (loss), net of tax | 41 | 213 | (322) | 374 | (73) | (1,311) | 1,051 |
Comprehensive income (loss) | 375,021 | 185,581 | 618,811 | 363,378 | 827,334 | 972,375 | 726,496 |
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | (124) | (124) | 2,399 | 1,919 | |||
Comprehensive income (loss) attributable to DISH DBS | 375,021 | 185,581 | 618,811 | 363,502 | 827,458 | 969,976 | 724,577 |
Subscriber-related | |||||||
Revenue: | |||||||
Total revenue | 3,117,334 | 3,117,066 | 6,248,234 | 6,215,002 | 12,436,637 | 13,197,994 | 13,877,196 |
Equipment sales and other revenue | |||||||
Revenue: | |||||||
Total revenue | $ 31,197 | $ 49,533 | $ 68,079 | $ 89,597 | $ 186,256 | $ 164,145 | $ 130,315 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) - USD ($) $ in Thousands | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) | Noncontrolling Interest | Total |
Balance at Dec. 31, 2016 | $ 1,097,606 | $ (116) | $ (14,891,573) | $ 1,933 | $ (13,792,150) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 29,941 | 29,941 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | (33) | (33) | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | 57 | 57 | |||
Foreign currency translation | 1,027 | 1,027 | |||
Net income (loss) attributable to noncontrolling interests | 1,919 | 1,919 | |||
Net income (loss) attributable to DISH DBS | 723,526 | 723,526 | |||
Balance at Dec. 31, 2017 | 1,116,848 | 935 | (14,168,047) | 3,601 | (13,046,663) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 35,521 | 35,521 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 69 | 69 | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (37) | (37) | |||
Foreign currency translation | (1,343) | (1,343) | |||
Net income (loss) attributable to noncontrolling interests | 2,399 | 2,399 | |||
Net income (loss) attributable to DISH DBS | 971,287 | 971,287 | |||
Balance at Dec. 31, 2018 | 1,152,369 | (376) | (13,194,440) | 287 | (12,042,160) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 11,003 | 11,003 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 152 | 152 | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (38) | (38) | |||
Foreign currency translation | 47 | 47 | |||
Net income (loss) attributable to noncontrolling interests | (124) | (124) | |||
Net income (loss) attributable to DISH DBS | 177,760 | 177,760 | |||
Balance at Mar. 31, 2019 | 1,163,372 | (215) | (13,016,680) | 163 | (11,853,360) |
Balance at Dec. 31, 2018 | 1,152,369 | (376) | (13,194,440) | 287 | (12,042,160) |
Increase (Decrease) in Stockholder's Equity | |||||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (65) | ||||
Net income (loss) attributable to DISH DBS | 363,128 | ||||
Balance at Jun. 30, 2019 | 1,442,337 | (2) | (12,831,312) | (11,388,977) | |
Balance at Dec. 31, 2018 | 1,152,369 | (376) | (13,194,440) | 287 | (12,042,160) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 13,853 | 13,853 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 81 | 81 | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (21) | (21) | |||
Foreign currency translation | (133) | (133) | |||
Satellite and Spectrum Transaction, net of deferred taxes | 267,437 | (163) | 267,274 | ||
Net income (loss) attributable to noncontrolling interests | (124) | (124) | |||
Net income (loss) attributable to DISH DBS | 827,531 | 827,531 | |||
Balance at Dec. 31, 2019 | 1,432,736 | (449) | (12,366,909) | (10,934,622) | |
Balance at Mar. 31, 2019 | 1,163,372 | (215) | (13,016,680) | 163 | (11,853,360) |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 11,528 | 11,528 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 102 | 102 | |||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (27) | (27) | |||
Foreign currency translation | 138 | 138 | |||
Satellite and Spectrum Transaction, net of deferred taxes | 267,437 | $ (163) | 267,274 | ||
Net income (loss) attributable to DISH DBS | 185,368 | 185,368 | |||
Balance at Jun. 30, 2019 | 1,442,337 | (2) | (12,831,312) | (11,388,977) | |
Balance at Dec. 31, 2019 | 1,432,736 | (449) | (12,366,909) | (10,934,622) | |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 6,953 | 6,953 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | (11) | (11) | |||
Foreign currency translation | (352) | (352) | |||
Net income (loss) attributable to DISH DBS | 244,153 | 244,153 | |||
Balance at Mar. 31, 2020 | 1,439,689 | (812) | (12,122,756) | (10,683,879) | |
Balance at Dec. 31, 2019 | 1,432,736 | (449) | (12,366,909) | (10,934,622) | |
Increase (Decrease) in Stockholder's Equity | |||||
Net income (loss) attributable to DISH DBS | 619,133 | ||||
Balance at Jun. 30, 2020 | 1,443,022 | (771) | (11,747,776) | (10,305,525) | |
Balance at Mar. 31, 2020 | 1,439,689 | (812) | (12,122,756) | (10,683,879) | |
Increase (Decrease) in Stockholder's Equity | |||||
Non-cash, stock-based compensation | 3,333 | 3,333 | |||
Change in unrealized holding gains (losses) on available-for-sale debt securities, net | 11 | 11 | |||
Foreign currency translation | 30 | 30 | |||
Net income (loss) attributable to DISH DBS | 374,980 | 374,980 | |||
Balance at Jun. 30, 2020 | $ 1,443,022 | $ (771) | $ (11,747,776) | $ (10,305,525) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 619,133 | $ 363,004 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation and amortization | 257,954 | 290,715 |
Realized and unrealized losses (gains) on investments | (3,160) | |
Non-cash, stock-based compensation | 10,286 | 22,531 |
Deferred tax expense (benefit) | 19,576 | (39,649) |
Allowance for credit losses and allowance for doubtful accounts, respectively | 21,908 | 1,119 |
Other, net | 25,554 | (30,509) |
Changes in current assets and current liabilities, net | 405,709 | 160,594 |
Net cash flows from operating activities | 1,360,120 | 764,645 |
Cash Flows From Investing Activities: | ||
(Purchases) Sales and maturities of marketable investment securities, net | (31) | (96,031) |
Purchases of property and equipment | (148,256) | (183,776) |
Other, net | 4,454 | 17,432 |
Net cash flows from investing activities | (143,833) | (262,375) |
Cash Flows From Financing Activities: | ||
Redemption and repurchases of senior notes | (1,100,000) | (22,365) |
Advances to/from affiliates | (82,415) | |
Repayment of long-term debt and finance lease obligations | (23,807) | (10,860) |
Other, net | (400) | |
Net cash flows from financing activities | (1,206,222) | (33,625) |
Net increase (decrease) in cash, cash equivalents, restricted cash and cash equivalents | 10,065 | 468,645 |
Cash, cash equivalents, restricted cash and cash equivalents, beginning of period (Note 4) | 78,103 | 130,076 |
Cash, cash equivalents, restricted cash and cash equivalents, end of period (Note 4) | $ 88,168 | $ 598,721 |
Organization and Business Act_3
Organization and Business Activities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Organization and Business Activities | ||
Organization and Business Activities | 1. Organization and Business Activities Principal Business DISH DBS Corporation (which together with its subsidiaries is referred to as “DISH DBS,” the “Company,” “we,” “us” and/or “our,” unless otherwise required by the context) is a holding company and an indirect, wholly-owned subsidiary of DISH Network Corporation (“DISH Network”). DISH DBS was formed under Colorado law in January 1996 and its common stock is held by DISH Orbital Corporation (“DOC”), a direct subsidiary of DISH Network. Our subsidiaries operate one business segment. Pay-TV We offer pay-TV services under the DISH ® ® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, FCC licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, customer service facilities, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear streaming OTT Internet-based domestic, international and Latino video programming services (“SLING TV”). As of June 30, 2020, we had | 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 We offer pay-TV services under the DISH ® brand and the Sling ® brand (collectively “Pay-TV” services). The DISH branded pay-TV service consists of, among other things, Federal Communications Commission (“FCC”) licenses authorizing us to use direct broadcast satellite (“DBS”) and Fixed Satellite Service (“FSS”) spectrum, our owned and leased satellites, receiver systems, broadcast operations, customer service facilities, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in our operations (“DISH TV”). We also design, develop and distribute receiver systems and provide digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The Sling branded pay-TV services consist of, among other things, multichannel, live-linear streaming over-the-top (“OTT”) Internet-based domestic, international and Latino video programming services (“Sling TV”). As of December 31, 2019, we had 11.986 million Pay-TV subscribers in the United States, including 9.394 million DISH TV subscribers and 2.592 million Sling TV subscribers. Master Transaction Agreement On May 19, 2019, DISH Network entered into a Master Transaction Agreement with EchoStar (the “Master Transaction Agreement”) pursuant to which, on September 10, 2019, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. As a result of the Master Transaction Agreement, certain agreements that we had with EchoStar have been transferred to DISH Network. See Note 1 “ Recent Developments ” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement. |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies | ||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. Certain prior period amounts have been reclassified to conform to the current period presentation. Principles of Consolidation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments and recorded at fair value with changes recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for credit losses, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. Marketable Investment Securities All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. Historically, we reported temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. Subsequent to the adoption of ASU 2016-13 Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) during the first quarter of 2020, we report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We evaluate our debt investment portfolio to determine whether declines in the fair value of these securities are related to credit loss. Management estimates credit losses on marketable debt securities utilizing a credit loss impairment model on a quarterly basis. We estimate the expected credit losses, measured over the contractual life of marketable debt securities considering relevant issuer specific factors, including, but not limited to, a decrease in credit ratings or an entities ability to pay. Trade Accounts Receivable Prior to January 1, 2020, management estimated the amount of allowance for doubtful accounts for potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. Subsequent to January 1, 2020 due to the adoption of ASU 2016-13, trade accounts receivable are recorded at amortized cost less an allowance for expected credit losses that are not expected to be recovered. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for expected credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Management estimates credit losses on financial assets, including our trade accounts receivable, utilizing a current expected credit loss impairment model. We estimate the expected credit losses, measured over the contractual life of an asset considering relevant historical loss information, credit quality of the customer base, current economic conditions and forecasts of future economic conditions. In determining the allowance for credit losses, management groups similar types of financial assets with consistent risk characteristics. Pools identified by management include but are not limited to residential customers, commercial customers and advertising services. The risk characteristics of the financial asset portfolios are monitored by management and reviewed periodically. The forecasts for future economic conditions are based on several factors including, but not limited to, changes in the unemployment rate, external economic forecasts and current collection rates. Our estimates of the allowance for credit losses may not be indicative of our actual credit losses requiring additional charges to be incurred to reflect the actual amount collected. Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: ● Level 1, defined as observable inputs being quoted prices in active markets for identical assets; ● Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of June 30, 2020 and December 31, 2019, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses or net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 8 for the fair value of our long-term debt. Revenue Recognition Our revenue is primarily derived from Pay-TV programming services that we provide to our subscribers. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 11 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year . Revenues arising from our in-home services that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed. For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606, Revenue from Contracts with Customers Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month. Contract Balances The timing of revenue recognition generally differs from the timing of invoicing to customers. When revenue is recognized prior to invoicing, we record a receivable. When revenue is recognized subsequent to invoicing, we record deferred revenue. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts as we apply a practical expedient when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. See Note 12 for further information, including balance and activity detail about our allowance for credit losses and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the three months ended June 30, 2020 and 2019, we capitalized million for the three months ended June 30, 2020 and 2019, respectively. During the six months ended June 30, 2020 and 2019, we capitalized million for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020 and December 31, 2019, we had a total of million, respectively, capitalized on our Condensed Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 12 years , some of which include renewal options , and some of which include options to terminate the leases within one year . We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our Condensed Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Condensed Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 7 for further information on our lease expenses. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 13 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into a Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. See Note 13 “ Related Party Transactions – Master Transaction Agreement” We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The revenue related to equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. Impact of Adoption of ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (“ASU 2016-02”) and has modified the standard thereafter. We adopted ASU 2016-02, as modified, on January 1, 2019 using the modified retrospective method. Under the modified retrospective method, we applied the new guidance to all leases that commenced before and were existing as of January 1, 2019. The adoption of ASU 2016-02 had no impact on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating, investing and financing activities on our Condensed Consolidated Statements of Cash Flows. Research and Development Research and development costs are expensed as incurred. Research and development costs totaled Research and development costs totaled | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments and recorded at fair value with changes recognized in “Other, net” within “Other Income (Expense)” on our 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. On February 28, 2017, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Share Exchange Agreement (the “Share Exchange Agreement”) that was previously entered into on January 31, 2017 (the “Share Exchange”). Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses, consisting primarily of the businesses that design, develop and distribute digital set-top boxes, provide satellite uplink services and develop and support streaming video technology, as well as certain investments in joint ventures, spectrum licenses, real estate properties and EchoStar’s In connection with the Share Exchange, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. See Note 17 for further information. As the Share Exchange was a transaction between entities that are under common control, accounting rules require that our Consolidated Financial Statements include the results of the Transferred Businesses for all periods presented, including periods prior to the completion of the Share Exchange. We initially recorded the Transferred Businesses at EchoStar’s historical cost basis. The difference between the historical cost basis of the Transferred Businesses and the net carrying value of the Tracking Stock was recorded in “Additional paid-in capital” on our Consolidated Balance Sheets. The results of the Transferred Businesses were prepared from separate records maintained by EchoStar for the periods prior to March 1, 2017, and may not necessarily be indicative of the conditions that would have existed, or the results of operations, if the Transferred Businesses had been operated on a combined basis with our subsidiaries. Our financial statements include the results of the Transferred Businesses as described above for all periods presented, including periods prior to the completion of the Share Exchange. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, , finance leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. Cash and Cash Equivalents We consider all liquid investments purchased with a remaining maturity of 90 days or less at the date of acquisition to be cash equivalents. Cash equivalents as of December 31, 2019 and 2018 may consist of money market funds, government bonds, corporate notes and commercial paper. The cost of these investments approximates their fair value. Marketable Investment Securities Historically, we classified all marketable investment securities as available-for-sale, except for investments which were accounted for as trading securities, and adjusted the carrying amount of our available-for-sale securities to fair value and reported the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Consolidated Balance Sheets. Our trading securities were 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). Subsequent to the adoption of ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) during the first quarter 2018, 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. We adjust the carrying amount of our debt securities to fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Consolidated Balance Sheets. Declines in the fair value of a marketable debt security which are determined to be “other-than-temporary” are recognized on our Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment. We evaluate our debt investment portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other-than-temporary. This quarterly evaluation consists of reviewing, among other things: ● the fair value of our debt investments compared to the carrying amount, ● the historical volatility of the price of each security, and ● any market and company specific factors related to each security. Declines in the fair value of debt investments below cost basis are generally accounted for as follows: Length of Time Investment Has Been In a Continuous Treatment of the Decline in Value Loss Position (absent specific factors to the contrary) Less than six months Generally, considered temporary. Six to nine months Evaluated on a case by case basis to determine whether any company or market-specific factors exist indicating that such decline is other-than-temporary. Greater than nine months Generally, considered other-than-temporary. The decline in value is recorded as a charge to earnings. Additionally, in situations where the fair value of a debt security is below its carrying amount, we consider the decline to be other-than-temporary and record a charge to earnings if any of the following factors apply: ● we have the intent to sell the security, ● it is more likely than not that we will be required to sell the security before maturity or recovery, or ● we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. In general, we use the first in, first out method to determine the cost basis on sales of marketable investment securities. Trade Accounts Receivable Management estimates the amount of required allowances for the potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. However, past experience may not be indicative of future collections and therefore additional charges could be incurred in the future to reflect differences between estimated and actual collections. Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined using the first-in, first-out method. The cost of manufactured inventory includes the cost of materials, labor, freight-in, royalties and manufacturing overhead. Property and Equipment Property and equipment are stated at amortized cost less impairment losses, if any. Our set-top boxes are generally capitalized when they are installed in customers’ homes. The costs of satellites under construction, including interest and certain amounts prepaid under our satellite service agreements, are capitalized during the construction phase, assuming the eventual successful launch and in-orbit operation of the satellite. If a satellite were to fail during launch or while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from two to 40 years . Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized. Costs related to the procurement and development of software for internal-use are capitalized and amortized using the straight-line method over the estimated useful life of the software. Impairment of Long-Lived Assets We review our long-lived assets and identifiable finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For assets which are held and used in operations, the asset would be impaired if the carrying amount of the asset (or asset group) exceeded its undiscounted future net cash flows. Once an impairment is determined, the actual impairment recognized is the difference between the carrying amount and the fair value as estimated using one of the following approaches: income, cost and/or market. Assets which are to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The carrying amount of a long-lived asset or asset group is considered impaired when the anticipated undiscounted cash flows from such asset or asset group is less than its carrying amount. In that event, a loss is recorded in “Impairment of long-lived assets” on our Consolidated Statements of Operations and Comprehensive Income (Loss) based on the amount by which the carrying amount exceeds the fair value of the long-lived asset or asset group. Fair value, using the income approach, is determined primarily using a discounted cash flow model that uses the estimated cash flows associated with the asset or asset group under review, discounted at a rate commensurate with the risk involved. Fair value, utilizing the cost approach, is determined based on the replacement cost of the asset reduced for, among other things, depreciation and obsolescence. Fair value, utilizing the market approach, benchmarks the fair value against the carrying amount. See Note 6 for further information. DBS Satellites . We currently evaluate our DBS satellite fleet for impairment as one asset group whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. We do not believe any triggering event has occurred which would indicate impairment as of December 31, 2019. 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. Intangible assets that have finite lives are amortized over their estimated useful lives and tested for impairment as described above for long-lived assets. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our 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 2019, 2018 and 2017, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS licenses exceeds its 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. MVDDS Licenses. During 2018 and 2017, our multichannel video distribution and data service (“MVDDS”) wireless spectrum licenses were assessed as a single unit of accounting. For 2018 and 2017, management assessed these licenses quantitatively. Our quantitative assessment in each year for these licenses consisted of a market approach. The market approach uses prior transactions including auctions to estimate the fair value of the licenses. In conducting these quantitative assessments, we determined that the fair value of these licenses exceeded their carrying amount. Business Combinations When we acquire a business, 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 most identifiable assets, liabilities, noncontrolling interests and goodwill acquired to be recorded at fair value. 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 are recorded on a straight-line basis over an average finite useful life primarily ranging from approximately five to 20 years or in relation to the estimated discounted cash flows over the life of the intangible asset. Long-Term Deferred Revenue and Other Long-Term Liabilities Certain programmers provide us up-front payments. Such amounts are deferred and recognized as reductions to “Subscriber-related expenses” on a straight-line basis over the relevant remaining contract term (generally up to ten years ). The current and long-term portions of these deferred credits are recorded on our Consolidated Balance Sheets in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities,” respectively. Sales Taxes We account for sales taxes imposed on our goods and services on a net basis on our Consolidated Statements of Operations and Comprehensive Income (Loss). Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. Income Taxes We establish a provision for income taxes currently payable or receivable and for income tax amounts deferred to future periods. Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that exist between the book and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that such net deferred tax assets will not be realized. 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, 2019 and 2018, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 8 for the fair value of our long-term debt. Deferred Debt Issuance Costs Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 8 for further information. Revenue Recognition Our revenue is primarily derived from Pay-TV programming services that we provide to our subscribers. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 14 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year . Revenues arising from our in-home services that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed. For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606 (“ASC 606”) is one month and as a result the revenue recognized for these subscribers for a given month is equal to the amount billed in that month, except for certain nonrefundable upfront fees that are accounted for as material rights, as discussed above. Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month. Contract Balances The timing of revenue recognition generally differs from the timing of invoicing to customers. When revenue is recognized prior to invoicing, we record a receivable. When revenue is recognized subsequent to invoicing, we record deferred revenue. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts as we apply a practical expedient when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. See Note 15 for further information, including balance and activity detail about our allowance for doubtful accounts and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the years ended December 31, 2019 and 2018, we capitalized $207 million and $183 million, respectively, under these programs. The amortization expense related to these programs was $76 million and $28 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, we had a total of $300 million and $169 million capitalized on our Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Impact of Adoption of ASU 2014-09 On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 Revenue from Contracts with Customers We adopted ASU 2014-09, as modified, and now codified as ASC 606 and Accounting Standard Codification Topic 340-40 (“ASC 340-40”) on January 1, 2018, using the modified retrospective method. Under that method, we applied the new guidance to all open contracts existing as of January 1, 2018, recognizing in beginning retained earnings an adjustment for the cumulative effect of the change, which was Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to twelve years , some of which include renewal options , and some of which include options to terminate the leases within one year . We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our 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. When our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 17 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into the Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. Recent Developments” December 31 We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. Impact of Adoption of ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (“ASU 2016-02”) and has modified the standard thereafter. We adopted ASU 2016-02, as modified, on January 1, 2019 using the modified retrospective method. Under the modified retrospective method, we applied the new guidance to all leases that commenced before and were existing as of January 1, 2019. The adoption of ASU 2016-02 had no impact on our Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating, investing and financing activities on our Consolidated Statements of Cash Flows. The adoption of ASU 2016-02 impacted our December 31, 2019 Consolidated Balance Sheets, including the reclassification of our deferred rent liabilities to an operating lease asset, as follows: Consolidated Balance Sheets DISH DBS (as would have been reported under previous standards) Impact of adopting ASU 2016-02 DISH DBS (as currently reported) (In thousands) As of December 31, 2019 Operating lease assets $ — $ 553,576 $ 553,576 Total assets $ 3,832,983 $ 553,576 $ 4,386,559 Other accrued expenses $ 715,361 $ 202,972 $ 918,333 Operating lease liabilities $ — $ 350,155 $ 350,155 Long-term deferred revenue and other long-term liabilities $ 207,543 $ 449 $ 207,992 Total liabilities $ 14,767,605 $ 553,576 $ 15,321,181 Total stockholder's equity (deficit) $ (10,934,622) $ — $ (10,934,622) Total liabilities and stockholder's equity (deficit) $ 3,832,983 $ 553,576 $ 4,386,559 Subscriber-Related Expenses The cost of television programming distribution rights is generally incurred on a per subscriber basis and various upfront carriage payments are recognized when the related programming is distributed to subscribers. Long-term flat rate programming contracts are 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. “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss) principally include programming expenses, costs for Pay-TV services |
Supplemental Data - Statement_4
Supplemental Data - Statements of Cash Flows | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 Six Months Ended June 30, 2020 2019 (In thousands) Cash paid for interest $ 329,923 $ 382,391 Cash received for interest 1,962 8,528 Cash paid for income taxes 3,205 8,845 Cash paid for income taxes to DISH Network 176,964 152,526 Capitalized interest — 440 Reclassification of a receivable from noncurrent to current — 138,210 Our parent, DISH Network, provides a centralized system for the management of our cash and marketable investment securities as it does for all of its subsidiaries to, among other reasons, maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our Condensed Consolidated Balance Sheets is a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Condensed Consolidated Balance Sheets and managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each period presented on our Condensed Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities. | 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, 2019 2018 2017 (In thousands) Cash paid for interest $ 765,510 $ 793,506 $ 878,772 Cash received for interest 30,041 6,043 9,855 Cash paid for income taxes 19,485 18,683 29,961 Cash paid for income taxes to DISH Network 245,028 302,329 408,265 Capitalized interest 440 1,071 481 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 is a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Consolidated Balance Sheets and managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each year presented on our Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities. |
Marketable Investment Securit_7
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 June 30, December 31, 2020 2019 (In thousands) Marketable investment securities: Current marketable investment securities $ 31 $ — Restricted marketable investment securities (1) — 390 Total marketable investment securities 31 390 Restricted cash and cash equivalents (1) 61,349 60,677 Other investment securities: Other investment securities 96,886 106,874 Total other investment securities 96,886 106,874 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 158,266 $ 167,941 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets. Marketable Investment Securities Our marketable investment securities portfolio may consist of debt and equity instruments. All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. We report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 2 for further information. Current Marketable Investment Securities Our current marketable investment securities portfolio can include investments in various debt instruments including, among others, commercial paper, corporate securities and United States treasury and/or agency securities. Commercial paper consists mainly of unsecured short-term promissory notes, issued primarily by corporations, with maturities ranging up to 365 days . Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months . U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies. Restricted Cash, Cash Equivalents and Marketable Investment Securities As of June 30, 2020 and December 31, 2019, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts. Other Investment Securities We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investment securities” on our Condensed Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and our equity securities are accounted for using the equity method of accounting or recorded at fair value. Certain of our equity method investments are detailed below. NagraStar L.L.C. As a result of the completion of the share exchange on February 28, 2017, we own a interest in NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Invidi Technologies Corporation . In November 2016, we, DIRECTV, LLC, a wholly-owned indirect subsidiary of AT&T Inc., and Cavendish Square Holding B.V., an affiliate of WPP plc, entered into a series of agreements to acquire Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. The transaction closed in January 2017. Our ability to realize value from our strategic investments in securities that are not publicly traded depends on the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them. Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of June 30, 2020 December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 63,344 $ 62,740 $ 604 $ — $ 60,677 $ 60,677 $ — $ — Debt securities (including restricted): U.S. Treasury and agency securities $ — $ — $ — $ — $ 390 $ 390 $ — $ — Commercial paper 31 — 31 — — — — — Corporate securities — — — — — — — — Other — — — — — — — — Total $ 31 $ — $ 31 $ — $ 390 $ 390 $ — $ — Gains and Losses on Sales and Changes in Carrying Amounts of Investments “Other, net” within “Other Income (Expense)” included on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, Other, net: 2020 2019 2020 2019 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ — $ 829 $ — $ 3,599 Costs related to early redemption of debt — — — (439) Equity in earnings of affiliates (399) 2,297 (121) 1,353 Other 247 5 914 51 Total $ (152) $ 3,131 $ 793 $ 4,564 | 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, 2019 2018 (In thousands) Marketable investment securities: Current marketable investment securities: Trading/equity $ — $ 2,370 Other — 147,370 Total current marketable investment securities — 149,740 Restricted marketable investment securities (1) 390 67,019 Total marketable investment securities 390 216,759 Restricted cash and cash equivalents (1) 60,677 578 Other investment securities: Other investment securities 106,874 108,308 Total other investment securities 106,874 108,308 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 167,941 $ 325,645 (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 various debt and equity instruments. All debt securities are classified as available-for-sale. Subsequent to the adoption of ASU 2016-01 during the first quarter 2018, 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). See Note 2 for further information. Current Marketable Investment Securities - Trading We had an investment in non-marketable preferred shares of a non-public company, which was received for no cash consideration and was previously accounted for as a cost method investment and included in “Other investment securities” on our Consolidated Balance Sheets. During the third quarter 2017, our non-marketable preferred shares converted into common shares in conjunction with the issuer’s initial public offering, and, accordingly, we classified the new equity securities as “Marketable investment securities” on our Consolidated Balance Sheets. Current Marketable Investment Securities - Other Our current other marketable investment securities portfolio can include investments in various debt instruments including, among others, commercial paper, corporate securities and United States treasury and/or agency securities. Commercial paper consists mainly of unsecured short-term, promissory notes issued primarily by corporations with maturities ranging up to 365 days . Corporate securities consist of debt instruments issued by corporations with various maturities normally less than 18 months . U.S. Treasury and agency securities consist of debt instruments issued by the federal government and other government agencies. Restricted Cash, Cash Equivalents and Marketable Investment Securities As of December 31, 2019 and 2018, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit and trusts. Other Investment Securities We have strategic investments in certain debt and/or equity securities that are included in noncurrent “Other investment securities” on our Consolidated Balance Sheets. Our debt securities are classified as available-for-sale and our equity securities are accounted for using the equity method of accounting or recorded at fair value. Certain of our equity method investments are detailed below. NagraStar L.L.C. As a result of the completion of the Share Exchange on February 28, 2017, we own a interest in NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security systems intended to assure that only authorized customers have access to our programming. Invidi Technologies Corporation . In November 2016, we, DIRECTV, LLC, a wholly-owned indirect subsidiary of AT&T Inc., and Cavendish Square Holding B.V., an affiliate of WPP plc, entered into a series of agreements to acquire Invidi Technologies Corporation (“Invidi”), an entity that provides proprietary software for the addressable advertising market. The transaction closed in January 2017. Our ability to realize value from our strategic investments in securities that are not publicly traded depends on the success of the issuers’ businesses and their ability to obtain sufficient capital, on acceptable terms or at all, and to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them, we will not be able to obtain fair value for them. Unrealized Gains (Losses) on Marketable Investment Securities As of December 31, 2019 and 2018, we had accumulated net unrealized losses of zero and less than $1 million, respectively. These amounts, net of related tax effect, were accumulated net unrealized losses of million, respectively. All of these amounts are included in “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit).” The components of our available-for-sale investments are summarized in the table below. As of December 31, 2019 2018 Marketable Marketable Investment Unrealized Investment Unrealized Securities Gains Losses Net Securities Gains Losses Net (In thousands) Debt securities (including restricted): U.S. Treasury and agency securities $ 390 $ — $ — $ — $ 66,823 $ 40 $ (19) $ 21 Commercial paper — — — — 45,938 — — — Corporate securities — — — — 100,662 11 (113) (102) Other — — — — 966 — — — Total $ 390 $ — $ — $ — $ 214,389 $ 51 $ (132) $ (81) As of December 31, 2019, restricted and non-restricted marketable investment securities included debt securities of less than $1 million with contractual maturities within one year. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity. Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of December 31, 2019 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 60,677 $ 60,677 $ — $ — $ 114,464 $ 12,493 $ 101,971 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 390 $ 390 $ — $ — $ 66,823 $ 66,823 $ — $ — Commercial paper — — — — 45,938 — 45,938 — Corporate securities — — — — 100,662 — 100,662 — Other — — — — 966 — 966 — Equity securities — — — — 2,370 2,370 — — Total $ 390 $ 390 $ — $ — $ 216,759 $ 69,193 $ 147,566 $ — During the years ended December 31, 2019 and 2018, we had no transfers in or out of Level 1 and Level 2 fair value measurements. Gains and Losses on Sales and Changes in Carrying Amounts of Investments “Other, net” within “Other Income (Expense)” included on our Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows: For the Years Ended December 31, Other, net: 2019 2018 2017 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ 3,119 $ 5,313 $ 87,020 Costs related to early redemption of debt — (3,261) (1,470) Gain (loss) on sale of subsidiary — 7,004 — Equity in earnings of affiliates 3,514 (2,110) 2,163 Other 976 2,048 798 Total $ 7,609 $ 8,994 $ 88,511 |
Inventory_2
Inventory | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Inventory | ||
Inventory | 5. Inventory Inventory consisted of the following: As of June 30, December 31, 2020 2019 (In thousands) Finished goods $ 249,605 $ 254,240 Work-in-process and service repairs 34,245 34,120 Raw materials 17,558 33,623 Total inventory $ 301,408 $ 321,983 | 5. Inventory Inventory consisted of the following: As of December 31, 2019 2018 (In thousands) Finished goods $ 254,240 $ 215,150 Work-in-process and service repairs 34,120 56,871 Raw materials 33,623 18,676 Total inventory $ 321,983 $ 290,697 |
Property and Equipment_2
Property and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Property and Equipment | |
Property and Equipment | 6. Property and Equipment Property and equipment consisted of the following: Depreciable As of Life June 30, December 31, (In Years) 2020 2019 (In thousands) Equipment leased to customers 2 - 5 $ 1,779,445 $ 1,837,503 EchoStar XV 15 277,658 277,658 EchoStar XVIII 15 411,255 411,255 Satellites acquired under finance lease agreements 15 398,107 398,107 Furniture, fixtures, equipment and other 2 - 20 1,934,783 1,894,629 Buildings and improvements 5 - 40 294,342 289,421 Land - 13,186 13,186 Construction in progress - 62,862 70,081 Total property and equipment 5,171,638 5,191,840 Accumulated depreciation (3,509,710) (3,440,267) Property and equipment, net $ 1,661,928 $ 1,751,573 Depreciation and amortization expense consisted of the following: For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Equipment leased to customers $ 69,489 $ 86,453 $ 149,171 $ 194,589 Satellites 23,796 12,920 47,593 23,575 Buildings, furniture, fixtures, equipment and other 29,584 36,227 61,190 72,551 Total depreciation and amortization $ 122,869 $ 135,600 $ 257,954 $ 290,715 Cost of sales and operating expense categories included in our accompanying Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) do not include depreciation expense related to satellites or equipment leased to customers. Pay-TV Satellites. of which we own and depreciate over their estimated useful life. We currently utilize certain capacity on satellites that we lease from third parties. All leased satellites are accounted for as operating leases except Nimiq 5 and Anik F3, which are accounted for as financing leases and are depreciated over their economic life. As of June 30, 2020, our pay-TV satellite fleet consisted of the following: Degree Launch Orbital Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 N/A EchoStar XVIII June 2016 61.5 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from DISH Network (2): EchoStar X February 2006 110 February 2021 EchoStar XI July 2008 110 September 2021 EchoStar XIV March 2010 119 February 2023 EchoStar XVI November 2012 61.5 January 2023 Nimiq 5 (3) September 2009 72.7 September 2020 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2021 (1) See Note 13 for further information on our Related Party Transactions with EchoStar. (2) See Note 13 for further information on our Related Party Transactions with DISH Network. (3) The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease. On May 14, 2019, we and DISH Orbital II L.L.C (“DOLLC II”), an indirect wholly-owned subsidiary of DISH Network, entered into an agreement to sell our interests in the Local Multipoint Distribution Service (“LMDS”) and MVDDS licenses in exchange for the EchoStar XVIII satellite, including its related in-orbit incentive obligations of approximately $18 million (the “Satellite and Spectrum Transaction”). As the Satellite and Spectrum Transaction is among entities under common control, we recorded the EchoStar XVIII Satellite at DOLLC II’s net historical cost basis of |
Leases_2
Leases | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Leases | ||
Leases | 7. Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 12 years , some of which include renewal options , and some of which include options to terminate the leases within one year . Our Anik F3 and Nimiq 5 satellites are accounted for as financing leases. Substantially all of our remaining leases are accounted for as operating leases, including the remainder of our satellite fleet. The components of lease expense were as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Operating lease cost $ 61,808 $ 81,762 $ 123,523 $ 162,048 Short-term lease cost (1) 3,733 12,141 6,400 31,426 Finance lease cost: Amortization of right-of-use assets 12,300 3,805 24,748 9,913 Interest on lease liabilities 4,534 1,099 9,332 2,280 Total finance lease cost 16,834 4,904 34,080 12,193 Total lease costs $ 82,375 $ 98,807 $ 164,003 $ 205,667 (2) Leases that have terms of 12 months or less . Supplemental cash flow information related to leases was as follows: For the Six Months Ended June 30, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 123,811 $ 164,159 Operating cash flows from finance leases $ 9,332 $ 2,295 Financing cash flows from finance leases $ 23,227 $ 10,454 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 17,967 $ 61,872 Finance leases $ — $ — Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 $ 730,180 Supplemental balance sheet information related to leases was as follows: As of June 30, 2020 December 31, 2019 (In thousands) Operating Leases: Operating lease assets $ 471,987 $ 553,576 Other current liabilities $ 204,138 $ 202,972 Operating lease liabilities 267,154 350,155 Total operating lease liabilities $ 471,292 $ 553,127 Finance Leases: Property and equipment, gross $ 398,875 $ 399,764 Accumulated depreciation (226,325) (201,873) Property and equipment, net $ 172,550 $ 197,891 Other current liabilities $ 50,860 $ 48,678 Other long-term liabilities 137,949 163,939 Total finance lease liabilities $ 188,809 $ 212,617 Weighted Average Remaining Lease Term: Operating leases 3.1 years 3.4 years Finance leases 3.8 years 4.2 years Weighted Average Discount Rate: Operating leases 9.0% 9.1% Finance leases 9.5% 9.5% Maturities of lease liabilities as of June 30, 2020 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2020 (remaining six months) $ 121,315 $ 33,139 $ 154,454 2021 205,137 66,279 271,416 2022 132,452 50,226 182,678 2023 27,439 42,862 70,301 2024 11,376 32,147 43,523 Thereafter 42,414 — 42,414 Total lease payments 540,133 224,653 764,786 Less: Imputed interest (68,841) (35,844) (104,685) Total 471,292 188,809 660,101 Less: Current portion (204,138) (50,860) (254,998) Long-term portion of lease obligations $ 267,154 $ 137,949 $ 405,103 | 7. Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles and other equipment. Our leases have remaining lease terms from one to twelve years , some of which include renewal options , and some of which include options to terminate the leases within one year . Our Anik F3 and Nimiq 5 satellites are accounted for as financing leases. Substantially all of our remaining leases are accounted for as operating leases, including the remainder of our satellite fleet. The components of lease expense were as follows: For the Year Ended December 31, 2019 (In thousands) Operating lease cost $ 297,181 Short-term lease cost (1) 37,686 Finance lease cost: Amortization of right-of-use assets 29,134 Interest on lease liabilities 9,826 Total finance lease cost 38,960 Total lease costs $ 373,827 (1) Leases that have terms of 12 months or less. Supplemental cash flow information related to leases was as follows : For the Year Ended December 31, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 301,524 Operating cash flows from finance leases $ 9,826 Financing cash flows from finance leases $ 31,841 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 81,198 Finance leases $ 175,311 Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 $ 730,180 Supplemental balance sheet information related to leases was as follows: As of December 31, 2019 (In thousands) Operating Leases: Operating lease right-of-use assets $ 553,576 Other current liabilities $ 202,972 Operating lease liabilities 350,155 Total operating lease liabilities $ 553,127 Finance Leases: Property and equipment, gross $ 399,764 Accumulated depreciation (201,873) Property and equipment, net $ 197,891 Other current liabilities $ 48,678 Other long-term liabilities 163,939 Total finance lease liabilities $ 212,617 Weighted Average Remaining Lease Term: Operating leases 3.4 years Finance leases 4.2 years Weighted Average Discount Rate: Operating leases 9.1% Finance leases 9.5% Maturities of lease liabilities as of December 31, 2019 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2020 $ 239,660 $ 66,285 $ 305,945 2021 199,062 66,279 265,341 2022 127,300 50,227 177,527 2023 24,571 42,862 67,433 2024 9,191 32,147 41,338 Thereafter 42,008 42,008 Total lease payments 641,792 257,800 899,592 Less: Imputed interest (88,665) (45,183) (133,848) Total 553,127 212,617 765,744 Less: Current portion (202,972) (48,678) (251,650) Long-term portion of lease obligations $ 350,155 $ 163,939 $ 514,094 |
Long-Term Debt and Finance Le_4
Long-Term Debt and Finance Lease Obligations | 6 Months Ended |
Jun. 30, 2020 | |
Long-Term Debt and Finance Lease Obligations | |
Long-Term Debt and Finance Lease Obligations | 8. Long-Term Debt and Finance Lease Obligations Fair Value of our Long-Term Debt The following table summarizes the carrying amount and fair value of our debt facilities as of June 30, 2020 and December 31, 2019: As of June 30, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value (In thousands) 5 1/8% Senior Notes due 2020 (1) $ — $ — $ 1,100,000 $ 1,110,208 6 3/4% Senior Notes due 2021 (2) 2,000,000 2,045,100 2,000,000 2,109,420 5 7/8% Senior Notes due 2022 2,000,000 2,043,040 2,000,000 2,129,580 5 % Senior Notes due 2023 1,500,000 1,495,545 1,500,000 1,543,770 5 7/8% Senior Notes due 2024 2,000,000 2,000,340 2,000,000 2,049,080 7 3/4% Senior Notes due 2026 2,000,000 2,130,880 2,000,000 2,128,900 Other notes payable 25,996 25,996 25,996 25,996 Subtotal 9,525,996 $ 9,740,901 10,625,996 $ 11,096,954 Unamortized deferred financing costs and debt discounts, net (13,581) (16,250) Finance lease obligations (3) 188,809 212,617 Total long-term debt and finance lease obligations (including current portion) $ 9,701,224 $ 10,822,363 (4) On May 1, 2020, we redeemed the principal balance of our 5 1/8% Senior Notes due 2020. (5) Our 6 3/4% Senior Notes due 2021 mature on June 1, 2021 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Condensed Consolidated Balance Sheets as of June 30, 2020. (6) 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). |
Commitments and Contingencies_4
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies | ||
Commitments and Contingencies | 9. Commitments and Contingencies Commitments DISH Network Spectrum Since 2008, DISH Network has directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets and made over $10 billion in non-controlling investments in certain entities, for a total of over $21 billion, as described further below. DISH Network has directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets. These wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. In March 2017, DISH Network notified the FCC that it planned to deploy a narrowband Internet of Things (“IoT”) network on certain of these wireless licenses, which was to be the first phase of its network deployment (“First Phase”). DISH Network expected to complete the First Phase by March 2020, with subsequent phases to be completed thereafter. In light of, among other things, certain developments related to the Sprint-TMUS merger, during the first quarter 2020, DISH Network determined that the revision of certain of its build-out deadlines was probable and, therefore, DISH Network no longer intends to complete its narrowband IoT deployment. DISH Network has issued requests for information and proposals (“RFI/Ps”) to various vendors in the wireless industry as it moves forward with its 5G broadband network deployment (“5G Network Deployment”). DISH Network currently expects expenditures for its wireless projects to be between $250 million and $500 million during 2020, excluding capitalized interest. DISH Network currently expects expenditures for its 5G Network Deployment to be approximately $10 billion, excluding capitalized interest. DISH Network will need to make significant additional investments or partner with others to, among other things, commercialize, build-out, and integrate these licenses and related assets, and any additional acquired licenses and related assets; and comply with regulations applicable to such licenses. Depending on the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such investments or partnerships could vary significantly. In addition, as DISH Network considers its options for the commercialization of its wireless spectrum, it will incur significant additional expenses and will have to make significant investments related to, among other things, research and development, wireless testing and wireless network infrastructure. DISH Network may also determine that additional wireless spectrum licenses may be required to commercialize its wireless business and to compete with other wireless service providers. Asset Purchase Agreement. billion as adjusted for specific categories of net working capital on the closing date (the “Prepaid Business Sale”). Effective July 1, 2020 (the “Closing Date”), upon the terms and subject to the conditions set forth in the APA, DISH Network and NTM completed the Prepaid Business Sale. At the closing of the Prepaid Business Sale, DISH Network and NTM entered into a transition services agreement under which DISH Network will receive certain transitional services (the “TSA”), a master network services agreement for the provision of network services by NTM to DISH Network (the “MNSA”), an option agreement entitling DISH Network to acquire certain decommissioned cell sites and retail stores of NTM (the “Option Agreement”) and an agreement under which DISH Network would purchase all of Sprint’s 800 MHz spectrum licenses, totaling approximately 13.5 MHz of nationwide wireless spectrum for an additional approximately $3.59 billion (the “Spectrum Purchase Agreement” and together with the APA, the TSA, the MNSA and the Option Agreement, the “Transaction Agreements”). See Note 10 “ Commitments and Contingencies – Commitments – Sprint Asset Acquisition In connection with the development of DISH Network’s wireless business, including, without limitation, the efforts described above, we have made cash distributions to partially finance these efforts to date and may make additional cash distributions to finance, in whole or in part, DISH Network’s future efforts. There can be no assurance that DISH Network will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably deploy the assets represented by these wireless spectrum licenses. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses During 2015, through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network initially made over $10 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. The Northstar Entities and/or the SNR Entities may need to raise significant additional capital in the future, which may be obtained from third party sources or from DISH Network, so that the Northstar Entities and the SNR Entities may commercialize, build-out and integrate these AWS-3 Licenses, comply with regulations applicable to such AWS-3 Licenses, and make any potential payments related to the re-auction of AWS-3 licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out, integration efforts, regulatory compliance, and potential re-auction payments, any such loans, equity contributions or partnerships could vary significantly. For further information regarding the potential re-auction of AWS-3 licenses retained by the FCC, see Note 10 “ Commitments and Contingencies – Commitments – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” We have made and may make cash distributions to finance, in whole or in part, loans that DISH Network has made or may make in the future to the Northstar Entities and the SNR Entities related to DISH Network’s non-controlling investments in these entities. There can be no assurance that DISH Network will be able to obtain a profitable return on its non-controlling investments in the Northstar Entities and the SNR Entities. We may need to raise significant additional capital in the future, which may not be available on acceptable terms or at all, to among other things, make additional cash distributions to DISH Network, continue investing in our business and to pursue acquisitions and other strategic transactions. See Note 10 “Commitments and Contingencies – Commitments” Contingencies Separation Agreement On January 1, 2008, DISH Network completed the distribution of its technology and set-top box business and certain infrastructure assets (the “Spin-off”) into a separate publicly-traded company, EchoStar. In connection with the Spin-off, DISH Network entered into a separation agreement with EchoStar that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, EchoStar has assumed certain liabilities that relate to its business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar will only be liable for its acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off, as well as DISH Network’s acts or omissions following the Spin-off. On February 28, 2017, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Share Exchange Agreement (the “Share Exchange Agreement”) that was previously entered into on January 31, 2017 (the “Share Exchange”), pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to DISH Network. On September 10, 2019, DISH Network and EchoStar and certain of their respective subsidiaries completed the transactions contemplated by the Master Transaction Agreement (the “Master Transaction Agreement”) that was previously entered into on May 19, 2019, pursuant to which certain assets that were transferred to EchoStar in the Spin-off were transferred back to DISH Network. The Share Exchange Agreement and the Master Transaction Agreement contain additional indemnification provisions between DISH Network and EchoStar for certain liabilities and legal proceedings. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period. Broadband iTV On December 19, 2019, Broadband iTV, Inc. filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 10,028,026 (the “026 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 10,506,269 (the “269 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 9,998,791 (“the 791 patent”), entitled “Video-on-demand content delivery method for providing video-on-demand services to TV service subscribers”; and United States Patent No. 9,648,388 (the “388 patent”), entitled “Video-on-demand content delivery system for providing video-on-demand services to TV services subscribers.” Generally, the asserted patents relate to providing video on demand content to subscribers. On July 10, 2020, July 20, 2020, July 24, 2020 and July 31, 2020, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of, respectively, the 026 patent, the 791 patent, the 269 patent and the 388 patent. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust On July 2, 2019, a putative class action lawsuit was filed by a purported EchoStar stockholder in the District Court of Clark County, Nevada under the caption City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Ergen, et al., Case No. A-19-797799-B. The lawsuit named as defendants Mr. Ergen, the other members of the EchoStar Board, as well as EchoStar, certain of its officers, DISH Network and certain of DISH Network’s and EchoStar’s affiliates. Plaintiff alleges, among other things, breach of fiduciary duties in approving the transactions contemplated under the Master Transaction Agreement for inadequate consideration and pursuant to an unfair and conflicted process, and that EchoStar, DISH Network and certain other defendants aided and abetted such breaches. In the operative First Amended Complaint, filed on October 11, 2019, the plaintiff dropped as defendants the EchoStar board members other than Mr. Ergen. Related Party Transactions – Master Transaction Agreement” Q for the quarter ended June 30, 2020 for further information on the Master Transaction Agreement. Plaintiff seeks equitable relief, including the issuance of additional DISH Network Class A Common Stock, monetary relief and other costs and disbursements, including attorneys’ fees. DISH Network intends to vigorously defend this case, but cannot predict with any degree of certainty the outcome of this suit or determine the extent of any potential liability or damages. ClearPlay, Inc. On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against DISH Network, our wholly-owned subsidiary DISH Network L.L.C., EchoStar, and its then wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Utah. The complaint alleges willful infringement of United States Patent Nos. 6,898,799 (the “799 patent”), entitled “Multimedia Content Navigation and Playback”; 7,526,784 (the “784 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318 (the “318 patent”), entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970 (the “970 patent”), entitled “Multimedia Content Navigation and Playback”; and 8,117,282 (the “282 patent”), entitled “Media Player Configured to Receive Playback Filters From Alternative Storage Mediums.” ClearPlay alleges that the AutoHop ™ feature of our Hopper set-top box infringes the asserted patents. On February 11, 2015, the case was stayed pending various third-party challenges before the United States Patent and Trademark Office regarding the validity of certain of the patents asserted in the action. In those third-party challenges, the United States Patent and Trademark Office found that all claims of the 282 patent are unpatentable, and that certain claims of the 784 patent and 318 patent are unpatentable. ClearPlay appealed as to the 784 patent and the 318 patent, and on August 23, 2016, the United States Court of Appeals for the Federal Circuit affirmed the findings of the United States Patent and Trademark Office. On October 31, 2016, the stay was lifted. The trial has been reset for March 22, 2021. The report issued by ClearPlay’s damages expert contends that ClearPlay is entitled to We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Contemporary Display LLC On June 4, 2018, Contemporary Display LLC (“Contemporary”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of 6,028,643 (the “643 patent”), entitled “Multiple-Screen Video Adapter with Television Tuner”; United States Patent No. 6,429,903 (the “903 patent”), entitled “Video Adapter for Supporting at Least One Television Monitor”; United States Patent No. 6,492,997 (the “997 patent”), entitled “Method and System for Providing Selectable Programming in a Multi-Screen Mode”; United States Patent No. 7,500,202 (the “202 patent”), “Remote Control for Navigating Through Content in an Organized and Categorized Fashion”; and United States Patent No. 7,809,842 (the “842 patent”), entitled “Transferring Sessions Between Devices.” The 643 patent and the 903 patent are directed to video adapters for use with multiple displays. The 997 patent is directed to a system for presenting multiple video programs on a display device simultaneously. The 202 patent is directed to a remote control for interacting with a set-top box having programmable features and “operational controls” on at least three sides of the remote control. The 842 patent is directed to a system for managing online communication sessions between multiple devices. Contemporary is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. In a First Amended Complaint filed on August 6, 2018, Contemporary added our wholly-owned subsidiary DISH Network L.L.C. as a defendant. In a Second Amended Complaint filed on October 9, 2018, Contemporary named only our wholly- owned subsidiary DISH Network L.L.C. as a defendant and dropped certain indirect infringement allegations. On June 10, 2019, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 842 patent, the 903 patent, the 643 patent and the 997 patent. On December 13, 2019 and January 7, 2020, the United States Patent and Trademark Office agreed to institute proceedings on each of our petitions. On July 11, 2019, the Court entered an order staying the case pending resolution of the petitions. On January 31, 2020, pursuant to the parties’ joint motion, the Court dismissed all claims arising from the 202 patent, and extended its stay of the litigation pending non-appealable determinations on all of the petitions before the United States Patent and Trademark Office. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Customedia Technologies, L.L.C. On February 10, 2016, Customedia Technologies, L.L.C. (“Customedia”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of four patents: United States Patent No. 8,719,090 (the “090 patent”); United States Patent No. 9,053,494 (the “494 patent”); United States Patent No. 7,840,437 (the “437 patent”); and United States Patent No. 8,955,029 (the “029 patent”). Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia alleges infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. Customedia is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. In December 2016 and January 2017, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of each of the asserted patents. On June 12, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petitions challenging the 090 patent and the 437 patent; on July 18, 2017, it agreed to institute proceedings on our petitions challenging the 029 patent; and on July 28, 2017, it agreed to institute proceedings on our petitions challenging the 494 patent. These instituted proceedings cover all asserted claims of each of the asserted patents. The litigation in the District Court has been stayed since August 8, 2017 pending resolution of the proceedings at the United States Patent and Trademark Office. Pursuant to an agreement between the parties, on December 20, 2017, DISH Network L.L.C. dismissed its petitions challenging the 029 patent in the United States Patent and Trademark Office, and on January 9, 2018, the parties dismissed their claims, counterclaims and defenses as to that patent in the litigation. On March 5, 2018, the United States Patent and Trademark Office conducted a trial on the remaining petitions. On June 11, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 090 patent and it invalidated all of the asserted claims. On July 25, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 437 patent and the 494 patent and it invalidated all of the asserted claims. Customedia appealed its losses before the United States Patent and Trademark Office. The Court of Appeals for the Federal Circuit heard oral argument on November 6, 2019 on the appeal involving the 437 patent, and summarily affirmed the patent’s invalidity on November 8, 2019. On January 7, 2020, Customedia petitioned the Court of Appeals for rehearing or rehearing en banc, raising issues about the constitutionality of the appointment of the administrative patent judges that heard the petition before the Patent and Trademark Office, but the Court of Appeals denied rehearing on March 5, 2020. On July 31, 2020, Customedia filed a petition with the United States Supreme Court asking it to hear a further appeal. The Court of Appeals heard oral argument on the appeal involving the 090 patent and the 494 patent on December 3, 2019, and affirmed those patents’ invalidity on March 6, 2020. On May 5, 2020, Customedia filed petitions in the Federal Circuit for rehearing and rehearing en banc, seeking to reverse our appellate victories on the 090 and 494 patents, but those petitions were denied on June 9, 2020. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Innovative Foundry Technologies LLC On December 20, 2019, Innovative Foundry Technologies LLC filed a complaint against DISH Network (as well as Semiconductor Manufacturing International Corporation; Broadcom Incorporated; Broadcom Corporation; and Cypress Semiconductor Corporation) in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 6,580,122 (the “122 patent”), entitled “Transistor Device Having an Enhanced Width Dimension and a Method of Making Same”; United States Patent No. 6,806,126 (the “126 patent”), entitled “Method of Manufacturing a Semiconductor Component”; United States Patent No. 6,933,620 (the “620 patent”), entitled “Semiconductor Component and Method of Manufacture”; and United States Patent No. 7,009,226 (the “226 patent”), entitled “In-Situ Nitride/Oxynitride Processing with Reduced Deposition Surface Pattern Sensitivity.” DISH Network intends to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. Mobile Networking Solutions On August 12, 2019, Mobile Networking Solutions, LLC (“Mobile Networking Solutions”) filed a complaint against our wholly-owned subsidiary Sling Media L.L.C. for infringement of two patents: United States Patent No. 7,543,177 (the “177 patent”) and United States Patent No. 7,958,388 (the “388 patent”), each entitled “Methods and Systems for a Storage System.” Mobile Networking Solutions alleges infringement in connection with Sling Media L.L.C.’s use of a Hadoop Distributed File System for storage and processing of large data files. Pursuant to a stipulation of the parties, on December 16, 2019, the Court entered an order staying the case for six months so the parties may discuss settling the case. On May 12, 2020, pursuant to the parties’ joint request, the Court ordered dismissal of the case with prejudice. This matter is now concluded. Multimedia Content Management LLC On July 25, 2018, Multimedia Content Management LLC (“Multimedia”) filed a complaint against DISH Network in the United States District Court for the Western District of Texas. Multimedia alleges that DISH Network infringes United States Patent No. 8,799,468 (the “468 patent”), entitled “System for Regulating Access to and Distributing Content in a Network,” and United States Patent No. 9,465,925 (the “925 patent”), entitled “System for Regulating Access to and Distributing Content in a Network,” in connection with impulse pay per view content offerings on certain set-top boxes. Multimedia is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. On March 7, 2019, pursuant to stipulation, the Court substituted our wholly-owned subsidiary DISH Network L.L.C. as the defendant in our place. On April 23, 2019, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of each of the asserted patents. On November 13, 2019, the United States Patent and Trademark Office denied institution on both of the petitions. On December 13, 2019, DISH Network L.L.C. filed a motion for reconsideration, which the United States Patent and Trademark Office denied on March 10, 2020. On March 26, 2020, pursuant to the parties’ joint request, the Court dismissed the matter with prejudice. This matter is now concluded. Realtime Data LLC and Realtime Adaptive Streaming LLC On June 6, 2017, Realtime Data LLC d/b/a IXO (“Realtime”) filed an amended complaint in the United States District Court for the Eastern District of Texas (the “Original Texas Action”) against DISH Network; our wholly-owned subsidiaries DISH Network L.L.C., DISH Technologies L.L.C. (then known as EchoStar Technologies L.L.C.), Sling TV L.L.C. and Sling Media L.L.C.; EchoStar, and EchoStar’s wholly-owned subsidiary Hughes Network Systems, L.L.C. (“HNS”); and Arris Group, Inc. Realtime’s initial complaint in the Original Texas Action, filed on February 14, 2017, had named only EchoStar and HNS as defendants. The amended complaint in the Original Texas Action alleges infringement of United States Patent No. 8,717,204 (the “204 patent”), entitled “Methods for encoding and decoding data”; United States Patent No. 9,054,728 (the “728 patent”), entitled “Data compression systems and methods”; United States Patent No. 7,358,867 (the “867 patent”), entitled “Content independent data compression method and system”; United States Patent No. 8,502,707 (the “707 patent”), entitled “Data compression systems and methods”; United States Patent No. 8,275,897 (the “897 patent”), entitled “System and methods for accelerated data storage and retrieval”; United States Patent No. 8,867,610 (the “610 patent”), entitled “System and methods for video and audio data distribution”; United States Patent No. 8,934,535 (the “535 patent”), entitled “Systems and methods for video and audio data storage and distribution”; and United States Patent No. 8,553,759 (the “759 patent”), entitled “Bandwidth sensitive data compression and decompression.” Realtime alleges that DISH Network, Sling TV, Sling Media and Arris streaming video products and services compliant with various versions of the H.264 video compression standard infringe the 897 patent, the 610 patent and the 535 patent, and that the data compression system in Hughes’ products and services infringe the 204 patent, the 728 patent, the 867 patent, the 707 patent and the 759 patent. On July 19, 2017, the Court severed Realtime’s claims against DISH Network, DISH Network L.L.C., Sling TV L.L.C., Sling Media L.L.C. and Arris 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. On July 3, 2018, Sling TV L.L.C., Sling Media L.L.C., DISH Network L.L.C., and | 12. Commitments and Contingencies Commitments As of December 31, 2019, future maturities of our long-term debt, finance lease and contractual obligations are summarized as follows: Payments due by period Total 2020 2021 2022 2023 2024 Thereafter Long-term debt obligations $ 10,625,996 $ 1,102,430 $ 2,002,554 $ 2,002,683 $ 1,502,820 $ 2,002,964 $ 2,012,545 Interest expense on long-term debt 2,524,898 $ 629,410 $ 533,599 $ 465,969 $ 310,832 $ 273,188 $ 311,900 Finance lease obligations (1) 212,617 48,678 53,150 41,666 38,018 31,105 — Interest expense on finance lease obligations (1) 45,183 17,607 13,129 8,561 4,844 1,042 — Satellite-related and other obligations (2) 219,019 71,931 65,663 41,291 23,321 16,813 — Operating lease obligations (1) 641,792 239,660 199,062 127,300 24,571 9,191 42,008 Purchase obligations 1,241,340 1,200,025 29,284 12,031 — — — Total $ 15,510,845 $ 3,309,741 $ 2,896,441 $ 2,699,501 $ 1,904,406 $ 2,334,303 $ 2,366,453 (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 and short-term leases. In certain circumstances the dates on which we are obligated to make these payments could be delayed. These amounts will increase to the extent that we procure launch and/or in-orbit insurance on our owned satellites or contract for the construction, launch or lease of additional satellites. The table above does not include $208 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, 2019. We do not expect any portion of this amount to be paid or settled within the next twelve months. DISH Network Spectrum Since 2008, DISH Network has directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets and made over $10 billion in non-controlling investments in certain entities, for a total of over $21 billion, as described further below. DISH Network has directly invested over $11 billion to acquire certain wireless spectrum licenses and related assets. These wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. In March 2017, DISH Network notified the FCC that it planned to deploy a narrowband IoT network on certain of these wireless licenses, which was to be the first phase of its network deployment (“First Phase”). DISH Network expected to complete the First Phase by March 2020, with subsequent phases to be completed thereafter. entered into vendor contracts with multiple parties for, among other things, base stations, chipsets, modules, tower leases, the core network, (“RF”) design, and deployment services for the First Phase. 5G broadband network deployment (“5G Network Deployment”) DISH Network currently expects expenditures for its wireless projects to be between $250 million and $500 million during 2020, excluding capitalized interest. DISH Network currently expects expenditures for its 5G Network Deployment to be approximately $10 billion, excluding capitalized interest. DISH Network will need to make significant additional investments or partner with others to, among other things, commercialize, build-out, and integrate these licenses and related assets, and any additional acquired licenses and related assets; and comply with regulations applicable to such licenses. Depending on the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such investments or partnerships could vary significantly. In addition, as DISH Network considers its options for the commercialization of its wireless spectrum, it will incur significant additional expenses and will have to make significant investments related to, among other things, research and development, wireless testing and wireless network infrastructure. DISH Network may also determine that additional wireless spectrum licenses may be required to commercialize its wireless business and to compete with other wireless service providers. Asset Purchase Agreement. Pursuant to the APA, after the consummation of the Sprint-TMUS merger and at the closing of the transaction, NTM will sell to DISH Network and DISH Network will acquire from NTM certain assets and liabilities associated with Sprint’s Boost Mobile, Virgin Mobile and Sprint-branded prepaid mobile services businesses (the “Prepaid Business”) for an aggregate purchase price of $1.4 billion as adjusted for specific categories of net working capital on the Closing Date (the “Prepaid Business Sale”). At the closing of the Prepaid Business Sale, DISH Network and NTM will enter into a transition services agreement under which DISH Network will receive certain transitional services (the “TSA”), a master network services agreement for the provision of network services by NTM to DISH Network (the “MNSA”), an option agreement entitling DISH Network to acquire certain decommissioned cell sites and retail stores of NTM (the “Option Agreement”) and an agreement under which DISH Network would purchase all of Sprint’s 800 MHz spectrum licenses, totaling approximately 13.5 MHz of nationwide wireless spectrum for an additional approximately $3.59 billion (the “Spectrum Purchase Agreement” and together with the APA, the TSA, the MNSA and the Option Agreement, the “Transaction Agreements”). See Note 15 “ Commitments and Contingencies – Commitments – Sprint Asset Acquisition Beginning on November 5, 2019, and while the approval of the Sprint-TMUS merger is pending, the March 7, 2020 build-out deadline for both the AWS-4 and Lower 700 MHz E Block spectrum bands is tolled; however, if the Sprint-TMUS merger is not consummated, the original deadlines would be reinstated with extensions equal to the length of time the deadline was tolled. During October 2019, DISH Network paused work on its narrowband Internet of Things (“IoT”) deployment due to its March 2020 build-out deadlines being tolled. DISH Network has issued requests for information and proposals (“RFI/Ps”) to various vendors in the wireless industry as it moves forward with its 5G Network Deployment. In connection with the development of DISH Network’s wireless business, including, without limitation, the efforts described above, we have made cash distributions to partially finance these efforts to date and may make additional cash distributions to finance, in whole or in part, DISH Network’s future efforts. There can be no assurance that DISH Network will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably deploy the assets represented by these wireless spectrum licenses. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses During 2015, through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network initially made over in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. , and make any potential payments related to the re-auction of AWS-3 licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out, integration efforts, regulatory compliance, and potential re-auction payments, any such loans, equity contributions or partnerships could vary significantly. For further information regarding the potential re-auction of AWS-3 licenses retained by the FCC, see Note 15 “ Commitments and Contingencies – Commitments – DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019. In connection with certain funding obligations related to the investments by American II and American III discussed above, in February 2015, we paid a dividend of $8.250 billion to DOC for, among other things, general corporate purposes, which included such funding obligations, and to fund other DISH Network cash needs. We may make additional cash distributions to finance, in whole or in part, loans that DISH Network may make to the Northstar Entities and the SNR Entities in the future related to DISH Network’s non-controlling investments in these entities. There can be no assurance that DISH Network will be able to obtain a profitable return on its non-controlling investments in the Northstar Entities and the SNR Entities. We may need to raise significant additional capital in the future, which may not be available on acceptable terms or at all, to among other things, make additional cash distributions to DISH Network, continue investing in our business and to pursue acquisitions and other strategic transactions. See Note 15 “ Commitments and Contingencies – Wireless” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 Purchase Obligations Our 2020 purchase obligations primarily consist of binding purchase orders for certain fixed contractual commitments to purchase programming content, receiver systems and related equipment, broadband equipment, digital broadcast operations, transmission costs, streaming delivery technology and infrastructure, engineering services, and other products and services related to the operation of our Pay-TV services. Our purchase obligations can fluctuate significantly from period to period due to, among other things, management’s timing of payments and inventory purchases, and can materially impact our future operating asset and liability balances, and our future working capital requirements. Programming Contracts In the normal course of business, we enter into contracts to purchase programming content in which our payment obligations are generally contingent on the number of Pay-TV subscribers to whom we provide the respective content. These programming commitments are not included in the “Commitments” table above. The terms of our contracts typically range from one to ten years with annual rate increases. Our programming expenses will increase to the extent we are successful in growing our Pay-TV subscriber base. I n addition, programming costs per subscriber continue to increase due to contractual price increases and the renewal of long-term programming contracts on less favorable pricing terms. Rent Expense Total rent expense for operating leases was $357 million, $449 million and $473 million in 2019, 2018 and 2017, respectively. Patents and Intellectual Property Many entities, including some of our competitors, have or may in the future obtain patents and other intellectual property rights that cover or affect products or services that we offer or that we may offer in the future. We may not be aware of all intellectual property rights that our products or services may potentially infringe. Damages in patent infringement cases can be substantial, and in certain circumstances can be trebled. Further, we cannot estimate the extent to which we may be required in the future to obtain licenses with respect to patents held by others and the availability and cost of any such licenses. Various parties have asserted patent and other intellectual property rights with respect to components of our products and services. We cannot be certain that these persons do not own the rights they claim, that our products do not infringe on these rights, and/or that these rights are not valid. Further, we cannot be certain that we would be able to obtain licenses from these persons on commercially reasonable terms or, if we were unable to obtain such licenses, that we would be able to redesign our products to avoid infringement. Contingencies Separation Agreement On January 1, 2008, DISH Network completed the distribution of its technology and set-top box business and certain infrastructure assets (the “Spin-off”) into a separate publicly-traded company, EchoStar. In connection with the Spin-off, DISH Network entered into a separation agreement with EchoStar that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, EchoStar has assumed certain liabilities that relate to its business, including certain designated liabilities for acts or omissions that occurred prior to the Spin-off. Certain specific provisions govern intellectual property related claims under which, generally, EchoStar will only be liable for its acts or omissions following the Spin-off and DISH Network will indemnify EchoStar for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off, as well as our acts or omissions following the Spin-off. On February 28, 2017, DISH Network and EchoStar completed the Share Exchange Agreement. The Share Exchange Agreement contains additional indemnification provisions between us and EchoStar for certain liabilities and legal proceedings. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties. 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. Blue Spike, LLC On July 6, 2018, Blue Spike, LLC (“Blue Spike”) 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 Reissued United States Patent RE44,222E1 (the “222 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; Reissued United States Patent RE44,307 (the “307 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; and United States Patent Nos. 7,287,275B2 (the “275 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; 8,473,746 (the “746 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; 8,224,705 (the “705 patent”), entitled “Methods, systems and devices for packet watermarking and efficient provisioning of bandwidth”; 7,475,246 (the “246 patent”), entitled “Secure personal content server”; 8,739,295B2 (the “295 patent”), entitled “Secure personal content server”; 9,021,602 (the “602 patent”), entitled “Data Protection and Device”; 9,104,842 (the “842 patent”), entitled “Data Protection and Device”; 9,934,408 (the “408 patent”), entitled “Secure personal content server”; 7,159,116B2 (the “116 patent”), entitled “Systems, methods and devices for trusted transactions”; and 8,538,011B2 (the “011 patent”), entitled “Systems, methods and devices for trusted transactions.” On September 5, 2018, pursuant to a joint motion of the parties, the Court ordered the case transferred to the United States District Court for the District of Delaware. In a First Amended Complaint filed on October 12, 2018, Blue Spike dropped its claims for infringement of the 222 patent, the 307 patent, the 275 patent, the 705 patent, and the 746 patent. On November 11, 2018, Blue Spike dismissed its complaint. On January 28, 2019, Blue Spike, along with Blue Spike International, Ltd. and Wistaria Trading Ltd., filed a new action 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 District of Delaware. The complaint alleges infringement of the 246 patent, the 295 patent, the 408 patent, the 116 patent, the 011 patent, the 602 patent and the 842 patent, all of which were asserted in the prior action. On March 29, 2019, the plaintiffs filed a First Amended Complaint, which dropped their claims arising from the 116 patent and the 011 patent. On July 5 and July 8, 2019, respectively, DISH Network, 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 the asserted claims of the 295 and the 408 patents. On July 19, 2019, DISH Network, 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 the asserted claims of the 246 patent. On August 1, 2019, DISH Network, 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 the asserted claims of the 842 patent and the 602 patent. On January 23, 2020, pursuant to the parties’ joint motion, all proceedings on the petitions before the United States Patent and Trademark Office were terminated. On January 28, 2020, pursuant to a stipulation of the parties, the litigation in the United States District Court for the District of Delaware was dismissed with prejudice. Broadband iTV On December 19, 2019, Broadband iTV, Inc. filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 10,028,026 (the “026 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 10,506,269 (the “269 patent”), entitled “System for addressing on-demand TV program content on TV services platform of a digital TV services provider”; United States Patent No. 9,998,791 (“the 791 patent”), entitled “Video-on-demand content delivery method for providing video-on-demand services to TV service subscribers”; and United States Patent No. 9,648,388 (the “388 patent”), entitled “Video-on-demand content delivery system for providing video-on-demand services to TV services subscribers.” Generally, the asserted patents relate to providing video on demand content to subscribers. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Each of the plaintiffs is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust On July 2, 2019, a putative class action lawsuit was filed by a purported EchoStar stockholder in the District Court of Clark County, Nevada under the caption City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Ergen, et al., Case No. A-19-797799-B. The lawsuit named as defendants Mr. Ergen, the other members of the EchoStar Board, as well as EchoStar, certain of its officers, DISH Network and certain of DISH Network’s and EchoStar’s affiliates. Plaintiff alleges, among other things, breach of fiduciary duties in approving the transactions contemplated under the Master Transaction Agreement for inadequate consideration and pursuant to an unfair and conflicted process, and that EchoStar, DISH Network and certain other defendants aided and abetted such breaches. See Note 1 “ Recent Developments ” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement. Plaintiff seeks equitable relief, including the issuance of additional DISH Network Class A Common Stock, monetary relief and other costs and disbursements, including attorneys’ fees. DISH Network intends to vigorously defend this case, but cannot predict with any degree of certainty the outcome of this suit or determine the extent of any potential liability or damages. ClearPlay, Inc. On March 13, 2014, ClearPlay, Inc. (“ClearPlay”) filed a complaint against DISH Network, our wholly-owned subsidiary DISH Network L.L.C., EchoStar, and its then wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Utah. The complaint alleges 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. The trial has been set for October 26, 2020. The report issued by ClearPlay’s damages expert contends that ClearPlay is entitled to $543 million in damages. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Contemporary Display LLC On June 4, 2018, Contemporary Display LLC (“Contemporary”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Western District of Texas. The complaint alleges infringement of 6,028,643 (the “643 patent”), entitled “Multiple-Screen Video Adapter with Television Tuner”; United States Patent No. 6,429,903 (the “903 patent”), entitled “Video Adapter for Supporting at Least One Television Monitor”; United States Patent No. 6,492,997 (the “997 patent”), entitled “Method and System for Providing Selectable Programming in a Multi-Screen Mode”; United States Patent No. 7,500,202 (the “202 patent”), “Remote Control for Navigating Through Content in an Organized and Categorized Fashion”; and United States Patent No. 7,809,842 (the “842 patent”), entitled “Transferring Sessions Between Devices.” The 643 patent and the 903 patent are directed to video adapters for use with multiple displays. The 997 patent is directed to a system for presenting multiple video programs on a display device simultaneously. The 202 patent is directed to a remote control for interacting with a set-top box having programmable features and “operational controls” on at least three sides of the remote control. The 842 patent is directed to a system for managing online communication sessions between multiple devices. Contemporary is an entity that seeks to license a patent portfolio without itself practicing any of the claims recited therein. In a First Amended Complaint filed on August 6, 2018, Contemporary added our wholly-owned subsidiary DISH Network L.L.C. as a defendant. In a Second Amended Complaint filed on October 9, 2018, Contemporary named only our wholly-owned subsidiary DISH Network L.L.C. as a defendant and dropped certain indirect infringement allegations. On June 10, 2019, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of the 842 patent, the 903 patent, the 643 patent and the 997 patent. On December 13, 2019 and January 7, 2020, the United States Patent and Trademark Office agreed to institute proceedings on each of our petitions. On July 11, 2019, the Court entered an order staying the case pending resolution of the petitions. On January 31, 2020, pursuant to the parties’ joint motion, the Court dismissed all claims arising from the 202 patent, and extended its stay of the litigation pending non-appealable determinations on all of the petitions before the United States Patent and Trademark Office. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Customedia Technologies, L.L.C. On February 10, 2016, Customedia Technologies, L.L.C. (“Customedia”) filed a complaint against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Eastern District of Texas. The complaint alleges infringement of four patents: United States Patent No. 8,719,090 (the “090 patent”); United States Patent No. 9,053,494 (the “494 patent”); United States Patent No. 7,840,437 (the “437 patent”); and United States Patent No. 8,955,029 (the “029 patent”). Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia alleges infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. In December 2016 and January 2017, DISH Network L.L.C. filed petitions with the United States Patent and Trademark Office challenging the validity of the asserted claims of each of the asserted patents. On June 12, 2017, the United States Patent and Trademark Office agreed to institute proceedings on our petitions challenging the 090 patent and the 437 patent; on July 18, 2017, it agreed to institute proceedings on our petitions challenging the 029 patent; and on July 28, 2017, it agreed to institute proceedings on our petitions challenging the 494 patent. These instituted proceedings cover all asserted claims of each of the asserted patents. The litigation in the District Court has been stayed since August 8, 2017 pending resolution of the proceedings at the United States Patent and Trademark Office. Pursuant to an agreement between the parties, on December 20, 2017, DISH Network L.L.C. dismissed its petitions challenging the 029 patent in the United States Patent and Trademark Office, and on January 9, 2018, the parties dismissed their claims, counterclaims and defenses as to that patent in the litigation. On March 5, 2018, the United States Patent and Trademark Office conducted a trial on the remaining petitions. On June 11, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 090 patent and it invalidated all of the asserted claims. On July 25, 2018, the United States Patent and Trademark Office issued final written decisions on DISH Network L.L.C.’s petitions challenging the 437 patent and the 494 patent and it invalidated all of the asserted claims. Customedia has filed notices of appeal from all of the final written decisions adverse to it, and DISH Network L.L.C. cross-appealed to the extent that its petitions were not successful. On February 6, 2019, the Court of Appeals granted DISH Network L.L.C.’s motion to dismiss its cross-appeals related to the 090 patent and, on February 26, 2019, granted DISH Network L.L.C.’s motion to dismiss its cross-appeals related to the 437 patent. The Court of Appeals for the Federal Circuit heard oral argument on November 6, 2019 on the appeal involving the 437 patent, and summarily affirmed the patent’s invalidity on November 8, 2019. On January 7, 2020, Customedia petitioned the Court of Appeals for rehearing or rehearing en banc, raising issues about the constitutionality of the appointment of the administrative patent judges that heard the petition before the Patent and Trademark Office, and DISH Network L.L.C. filed a response to that petition on February 10, 2020. The Court of Appeals heard oral argument on the appeal involving the 090 patent and the 494 patent on December 3, 2019. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Innovative Foundry Technologies On December 20, 2019, Innovative Foundry Technologies LLC filed a complaint against DISH Network (as well as Semiconductor Manufacturing International Corporation; Broadcom Incorporated; Broadcom Corporation; and Cypress Semiconductor Corporation) in the United States District Court for the Western District of Texas. The complaint alleges infringement of United States Patent No. 6,580,122 (the “122 patent”), entitled “Transistor Device Having an Enhanced Width Dimension and a Method of Making Same”; United States Patent No. 6,806,126 (the “126 patent”), entitled “Method of Manufacturing a Semiconductor Component”; Uni |
Financial Information for Sub_2
Financial Information for Subsidiary Guarantors | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Financial Information for Subsidiary Guarantors | ||
Financial Information for Subsidiary Guarantors | 10. Financial Information for Subsidiary Guarantors Our senior notes are fully, unconditionally and jointly and severally guaranteed by all of our subsidiaries other than minor subsidiaries, and the stand-alone entity DISH DBS has no independent assets or operations. Therefore, supplemental financial information on a condensed consolidating basis of the guarantor subsidiaries is not required. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the guarantor subsidiaries, except those imposed by applicable law. | 13. Financial Information for Subsidiary Guarantors Our senior notes are fully, unconditionally and jointly and severally guaranteed by all of our subsidiaries other than minor subsidiaries and the stand-alone entity DISH DBS has no independent assets or operations. Therefore, supplemental financial information on a consolidating basis of the guarantor subsidiaries is not required. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the guarantor subsidiaries, except those imposed by applicable law. |
Disaggregation of Revenue_2
Disaggregation of Revenue | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue | ||
Disaggregation of Revenue | 11. Disaggregation of Revenue Geographic Information. Revenue is attributed to geographic regions based upon the location where the goods and services are provided. All subscriber-related revenue was derived from the United States. Substantially all of our long-lived assets reside in the United States. The following table summarizes revenue by geographic region: For the Three Months Ended For the Six Months Ended June 30, June 30, Revenue: 2020 2019 2020 2019 (In thousands) United States $ 3,144,992 $ 3,155,828 $ 6,302,296 $ 6,282,937 Canada and Mexico 3,539 10,771 14,017 21,662 Total revenue $ 3,148,531 $ 3,166,599 $ 6,316,313 $ 6,304,599 The revenue from external customers disaggregated by major revenue source was as follows: For the Three Months Ended For the Six Months Ended June 30, June 30, Category: 2020 2019 2020 2019 (In thousands) Pay-TV video and related revenue $ 3,117,334 $ 3,117,066 $ 6,248,234 $ 6,215,002 Equipment sales and other revenue 31,197 49,533 68,079 89,597 Total $ 3,148,531 $ 3,166,599 $ 6,316,313 $ 6,304,599 | 14. Disaggregation of Revenue Geographic Information. Revenue is attributed to geographic regions based upon the location where the goods and services are provided. All subscriber-related revenue was derived from the United States. Substantially all of our long-lived assets reside in the United States. The following table summarizes revenue by geographic region: For the Years Ended December 31, Revenue: 2019 2018 2017 (In thousands) United States $ 12,581,855 $ 13,319,091 $ 13,967,694 Canada and Mexico 41,038 43,048 39,817 Total revenue $ 12,622,893 $ 13,362,139 $ 14,007,511 The revenue from external customers disaggregated by major revenue source was as follows: For the Years Ended December 31, Category: 2019 2018 2017 (In thousands) Pay-TV video and related revenue $ 12,436,637 $ 13,197,994 $ 13,877,196 Equipment sales and other revenue 186,256 164,145 130,315 Total $ 12,622,893 $ 13,362,139 $ 14,007,511 |
Contract Balances_2
Contract Balances | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Contract Balances | ||
Contract Balances | 12. Contract Balances Our valuation and qualifying accounts as of June 30, 2020 were as follows: Allowance for credit losses Balance at Beginning of Period Current Period Provision for Expected Credit Losses Write-offs Charged Against Allowance Balance at End of Period (In thousands) For the six months ended June 30, 2020 $ 19,280 $ 51,808 $ (29,900) $ 41,188 Deferred revenue related to contracts with our customers is recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Condensed Consolidated Balance Sheets. Changes in deferred revenue related to contracts with our customers were as follows: Contract Liabilities (In thousands) Balance as of December 31, 2019 $ 609,054 Recognition of unearned revenue (2,951,822) Deferral of revenue 2,925,648 Balance as of June 30, 2020 $ 582,880 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. | 15. Contract Balances Our valuation and qualifying accounts as of December 31, 2019, 2018 and 2017 were as follows: Allowance for doubtful accounts Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year (In thousands) For the years ended: December 31, 2019 $ 16,956 $ 69,866 $ (67,542) $ 19,280 December 31, 2018 $ 15,056 $ 98,461 $ (96,561) $ 16,956 December 31, 2017 $ 17,440 $ 124,143 $ (126,527) $ 15,056 Deferred revenue related to contracts with our customers is recorded in “Deferred revenue and other” and “Long-term deferred revenue and other long-term liabilities” on our Consolidated Balance Sheets. Changes in deferred revenue related to contracts with our customers were as follows: Contract Liabilities (In thousands) Balance as of December 31, 2018 $ 624,626 Recognition of unearned revenue (7,086,252) Deferral of revenue 7,070,680 Balance as of December 31, 2019 $ 609,054 We apply a practical expedient and do not disclose the value of the remaining performance obligations for contracts that are less than one year in duration, which represent a substantial majority of our revenue. As such, the amount of revenue related to unsatisfied performance obligations is not necessarily indicative of our future revenue. |
Related Party Transactions_2
Related Party Transactions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Related Party Transactions | ||
Related Party Transactions | 13. Related Party Transactions Master Transaction Agreement On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. As a result of the Master Transaction Agreement, certain agreements that we had with EchoStar have been transferred to DISH Network. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. See Related Party Transactions – Master Transaction Agreement” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 for further information on the Master Transaction Agreement. Related Party Transactions with DISH Network “Satellite and transmission expenses” During the three months ended June 30, 2020 and 2019, we incurred expenses of $56 million and $8 million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. During the six months ended June 30, 2020 and 2019, we incurred expenses of million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. As a result of the Master Transaction Agreement, discussed above, DISH Network is now a supplier of the vast majority of our transponder capacity. These amounts are recorded in “Satellite and transmission expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Satellite Capacity Leased from DISH Network . On September 10, 2019, in connection with the Master Transaction Agreement DISH Network entered into with EchoStar on May 19, 2019, we began leasing satellite capacity on satellites owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: ● EchoStar X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the satellite capacity agreement we previously had with EchoStar for EchoStar X, XI and XIV was transferred to DISH Network and we began leasing satellite capacity on these satellites from a wholly-owned subsidiary of DISH Network as of the same date. ● EchoStar XVI. In December 2009, we entered into a transponder service agreement with EchoStar to lease all of the capacity on EchoStar XVI, a DBS satellite, after its service commencement date. EchoStar XVI was launched in November 2012 to replace EchoStar XV at the 61.5 degree orbital location and is currently in service. Effective December 21, 2012, we and EchoStar amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and EchoStar amended the transponder service agreement to, among other things, extend the initial term by one additional year and to reduce the term of the first renewal option by one year . Prior to expiration of the initial term, we had the option to renew for an additional five-year period. In May 2017, we exercised our first renewal option for an additional five-year period ending in January 2023. We also have the option to renew for an additional five-year period prior to expiration of the first renewal period in January 2023. There can be no assurance that the option to renew this agreement will be exercised. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place and use certain satellites at the 61.5 degree orbital location. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the transponder service agreement we previously had with EchoStar for EchoStar XVI was transferred to DISH Network and we began receiving transponder services from a wholly-owned subsidiary of DISH Network as of the same date. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term, which expired ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we have the option to renew on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began receiving transponder services on the Nimiq 5 satellite from a wholly-owned subsidiary of DISH Network as of the same date and exercised our option to renew for a one-year period through September 2020. As discussed in Note 6, “Property and Equipment and Intangible Assets,” the Nimiq 5 satellite lease has been accounted for as a finance lease since September 2019. Accordingly, expenses related to this lease are no longer recorded in “Satellite and transmission expenses,” but rather in “Depreciation and amortization” and “Interest expense, net of amounts capitalized” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). During the three and six months ended June 30, 2020, we recorded $8 million and $17 million of “Depreciation and amortization expense,” respectively, and $4 million and $8 million, respectively, of “Interest expense, net of amounts capitalized” related to Nimiq 5. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provided, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite (“SES Transponder Agreement”). During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we received service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the SES Transponder Agreement and QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the SES Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. There can be no assurance that any options to renew the SES Transponder Agreement will be exercised. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the SES Transponder Agreement was transferred to DISH Network and we began receiving transponder services on QuetzSat-1 from a wholly-owned subsidiary of DISH Network as of the same date. Our lease arrangement with DISH Network expires in November 2021. EchoStar XVIII Satellite. The EchoStar XVIII satellite was launched on June 18, 2016 and became operational as an in-orbit spare at the 61.5 degree orbital location during the third quarter 2016, at which time we began leasing it from a wholly-owned subsidiary of DISH Network. On May 14, 2019, we and DOLLC II entered into an agreement to sell our interests in the LMDS and MVDDS licenses in exchange for the EchoStar XVIII satellite. See Note 6 for further information. TT&C Agreement. Effective January 1, 2012, we entered into a TT&C agreement pursuant to which we receive TT&C services from EchoStar for certain satellites (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network. We began receiving TT&C services from a wholly-owned subsidiary of DISH Network as of the same date. “General and administrative expenses” During the three months ended June 30, 2020 and 2019, we incurred $2 million and zero , respectively, for general and administrative expenses for services provided to us by DISH Network. During the six months ended June 30, 2020 and 2019, we incurred , respectively, for general and administrative expenses for services provided to us by DISH Network. These amounts are recorded in “General and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. On September 10, 2019, in connection with the Master Transaction Agreement discussed above, we began leasing office space owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. The term of each lease is set forth below: ● Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado originally from EchoStar to us was for a period ending on December 31, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we began leasing all of 5701 S. Santa Fe Dr. in Littleton, Colorado from a wholly-owned subsidiary of DISH Network as of the same date. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. In connection with the completion of the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network, and, effective March 1, 2017, DISH Network and EchoStar amended this lease agreement to (i) terminate the lease of certain space at the portion of the property that was transferred to us and (ii) provide for the continued lease to us of certain space at the portion of the property that EchoStar retained. Pursuant to the Master Transaction Agreement, discussed above, the portion of the property EchoStar retained was transferred to DISH Network, and on September 10, 2019, this lease was transferred to DISH Network and we began leasing certain space from a wholly-owned subsidiary of DISH Network as of the same date. Other Agreements – DISH Network Broadband, Wireless and Other Operations. We provide certain administrative, call center, installation, marketing and other services to DISH Network’s broadband, wireless and other operations. During the three months ended June 30, 2020 and 2019, the costs associated with these services was During the six months ended June 30, 2020 and 2019, the costs associated with these services was Spin-off from EchoStar Following the Spin-off, DISH Network and EchoStar have operated as separate publicly-traded companies and neither entity has any ownership interest in the other. However, a substantial majority of the voting power of the shares of both companies is owned beneficially by Charles W. Ergen, our Chairman, and by certain entities established by Mr. Ergen for the benefit of his family. Related Party Transactions with EchoStar In connection with and following the Spin-off, we and EchoStar have entered into certain agreements pursuant to which we obtain certain products, services and rights from EchoStar, EchoStar obtains certain products, services and rights from us, and we and EchoStar have indemnified each other against certain liabilities arising from our respective businesses. Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses. Pursuant to the Master Transaction Agreement, among other things, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. In connection with the Share Exchange and the Master Transaction Agreement, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. In addition, certain agreements that we had with EchoStar have terminated, and we entered into certain new agreements with EchoStar. We also may enter into additional agreements with EchoStar in the future. The following is a summary of the terms of our principal agreements with EchoStar that may have an impact on our financial condition and results of operations. “Trade accounts receivable” As of June 30, 2020 and December 31, 2019, trade accounts receivable from EchoStar was $4 million and $1 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Condensed Consolidated Balance Sheets. “Trade accounts payable” As of June 30, 2020 and December 31, 2019, trade accounts payable to EchoStar was $14 million and $3 million, respectively. These amounts are recorded in “Trade accounts payable” on our Condensed Consolidated Balance Sheets. “Equipment sales and other revenue” During each of the three months ended June 30, 2020 and 2019, we received $1 million for services provided to EchoStar. During the six months ended June 30, 2020 and 2019, we received million, respectively, for services provided to EchoStar. These amounts are recorded in “Equipment sales and other revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these revenues are discussed below. Real Estate Lease Agreements. DISH Network has entered into lease agreements pursuant to which DISH Network leases certain real estate to EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic areas, and EchoStar is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● El Paso Lease Agreement. During 2012, DISH Network began leasing certain space at 1285 Joe Battle Blvd., El Paso, Texas to EchoStar for an initial period ending on August 1, 2015, which also provides EchoStar with renewal options for four consecutive three-year terms. During the second quarter 2015, EchoStar exercised its first renewal option for a period ending on August 1, 2018 and in April 2018 EchoStar exercised its second renewal option for a period ending in August 2021. ● 90 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 90 Inverness Circle East, Englewood, Colorado for a period ending in February 2022. EchoStar has the option to renew this lease for four three-year periods. ● Cheyenne Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 530 EchoStar Drive, Cheyenne, Wyoming for a period ending in February 2019. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for 12 one-year periods. In connection with the Master Transaction Agreement, DISH Network and EchoStar amended this lease to provide EchoStar with certain space for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon 180 days ’ written notice prior to the end of the term . ● Gilbert Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 801 N. DISH Dr., Gilbert, Arizona for a period ending in March 2019. EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. This lease was terminated effective September 10, 2019. ● American Fork Occupancy License Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, we acquired the lease for certain space at 796 East Utah Valley Drive, American Fork, Utah, and we sublease certain space at this location to EchoStar for a period ending in August 2017. In June 2017, EchoStar exercised its five-year renewal option for a period ending in August 2022. This lease was terminated effective March 2019. Collocation and Antenna Space Agreements . In connection with the completion of the Share Exchange, effective March 1, 2017, we entered into certain agreements pursuant to which we will provide certain collocation and antenna space to HNS through February 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Englewood, Colorado; and Spokane, Washington. During August 2017, we entered into certain other agreements pursuant to which we will provide certain collocation and antenna space to HNS through August 2022 at the following locations: Monee, Illinois and Spokane, Washington. HNS has the option to renew each of these agreements for four three-year periods. HNS may terminate certain of these agreements with 180 days ’ prior written notice to us at the following locations: New Braunfels, Texas; Englewood, Colorado; and Spokane, Washington. In September 2019, in connection with the Master Transaction Agreement, we entered into an agreement pursuant to which we provide HNS with certain additional collocation space in Cheyenne, Wyoming for a period ending in September 2020, with the option for HNS to renew for a one-year period, with prior written notice no more than 120 days but no less than 90 days prior to the end of the term. In October 2019, HNS provided a termination notice for its New Braunfels, Texas agreement to be effective May 2020. The fees for the services provided under these agreements depend, among other things, on the number of racks leased and/or antennas present at the location. “Satellite and transmission expenses” During the three months ended June 30, 2020 and 2019, we incurred expenses of less than $1 million and $72 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. During the six months ended June 30, 2020 and 2019, we incurred expenses of $1 million and $143 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. EchoStar was the supplier of the vast majority of our transponder capacity. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, certain of these satellites were transferred to DISH Network. We are now leasing this satellite capacity from DISH Network. These amounts are recorded in “Satellite and transmission expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Satellite Capacity Leased from EchoStar . We have entered into certain satellite capacity agreements pursuant to which we lease certain capacity on certain satellites owned or leased by EchoStar. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: ● EchoStar VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar VII, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. The satellite capacity agreement for EchoStar VII expired on June 30, 2018. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, these satellites were transferred to DISH Network. ● EchoStar IX . We lease certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally have the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis. ● EchoStar XVI. In December 2009, we entered into a transponder service agreement with EchoStar to lease all of the capacity on EchoStar XVI, a DBS satellite, after its service commencement date. EchoStar XVI was launched in November 2012 to replace EchoStar XV at the 61.5 degree orbital location and is currently in service. Effective December 21, 2012, we and EchoStar amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and EchoStar amended the transponder service agreement to, among other things, extend the initial term by one additional year and to reduce the term of the first renewal option by one year . Prior to expiration of the initial term, we had the option to renew for an additional five-year period. In May 2017, we exercised our first renewal option for an additional five-year period ending in January 2023. We also have the option to renew for an additional five-year period prior to expiration of the first renewal period in January 2023. There can be no assurance that the option to renew this agreement will be exercised. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place and use certain satellites at the 61.5 degree orbital location. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, this satellite was transferred to DISH Network. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term, which expired ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we have the option to renew on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network and we exercised our option to renew for a one-year period through September 2020. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provided, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite (“SES Transponder Agreement”) . During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we receive service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. During the first quarter 2013, DISH Network and EchoStar entered into an agreement pursuant to which DISH Network subleased five DBS transponders back to EchoStar. Unless earlier terminated under the terms and conditions of the SES Transponder Agreement and QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the SES Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. There can be no assurance that any options to renew the SES Transponder Agreement will be exercised. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the SES Transponder Agreement was transferred TT&C Agreement. Effective January 1, 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we receive TT&C services from EchoStar for certain satellites (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network and now DISH Network provides these services to us. “General and administrative expenses” During the three months ended June 30, 2020 and 2019, we incurred $3 million and $6 million, respectively, for general and administrative expenses for services provided to us by EchoStar. During the six months ended June 30, 2020 and 2019, we incurred million, respectively, for general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “General and administrative expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. We have entered into lease agreements pursuant to which we lease certain real estate from EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic area, and EchoStar is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado was for a period ending on December 31, 2019. In December 2019, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado was for a period ending on December 31, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. In connection with the completion of the Share Exchange, EchoStar transferred ownership of a portion of this property to us, and, effective March 1, 2017, we and EchoStar amended this lease agreement to (i) terminate the lease of certain space at the portion of the property that was transferred to us and (ii) provide for the continued lease to us of certain space at the portion of the property that EchoStar retained. Pursuant to the Master Transaction Agreement, discussed above, t he portion of the property EchoStar retained was transferred to DISH Network , and on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network. ● 100 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, we lease certain space from EchoStar at 100 Inverness Terrace East, Englewood, Colorado for a period ending in December 2020. This agreement may be terminated by either party upon 180 days ’ prior notice. Professional Services Agreement . Prior to 2010, in connection with the Spin-off, DISH Network entered into various agreements with EchoStar including the Transition Services Agreement, Satellite Procurement Agreement and Services Agreement, which all expired on January 1, 2010 and were replaced by a Professional Services Agreement. During 2009, DISH Network and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Additionally, DISH Network and EchoStar agreed that DISH Network shall continue to have the right, but not the obligation, to engage EchoStar to manage the | 17. Related Party Transactions Master Transaction Agreement On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. As a result of the Master Transaction Agreement, certain agreements that we had with EchoStar have been transferred to DISH Network. The following is a summary of the terms of our principal agreements with DISH Network that may have an impact on our financial condition and results of operations. See Note 1 “ Recent Developments ” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2019 for further information on the Master Transaction Agreement. Related Party Transactions with DISH Network “Satellite and transmission expenses” During the years ended December 31, 2019, 2018 and 2017, million, respectively, for satellite capacity leased from DISH Network and telemetry, tracking and control and other professional services provided to us by DISH Network. As a result of the Master Transaction Agreement, discussed above, DISH Network is now a supplier of the vast majority of our transponder capacity. These amounts are recorded in “Satellite and transmission expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Satellite Capacity Leased from DISH Network . O n September 10, 2019, in connection with the Master Transaction Agreement DISH Network entered into with EchoStar on May 19, 2019, we began leasing satellite capacity on satellites owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: ● EchoStar X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the satellite capacity agreement we previously had with EchoStar for EchoStar X, XI and XIV was transferred to DISH Network and we began leasing satellite capacity on these satellites from a wholly-owned subsidiary of DISH Network as of the same date. ● EchoStar XVI. In December 2009, we entered into a transponder service agreement with EchoStar to lease all of the capacity on EchoStar XVI, a DBS satellite, after its service commencement date. EchoStar XVI was launched in November 2012 to replace EchoStar XV at the 61.5 degree orbital location and is currently in service. Effective December 21, 2012, we and EchoStar amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and EchoStar amended the transponder service agreement to, among other things, extend the initial term by one additional year and to reduce the term of the first renewal option by one year . Prior to expiration of the initial term, we had the option to renew for an additional five-year period. In May 2017, we exercised our first renewal option for an additional five-year period ending in January 2023. We also have the option to renew for an additional five-year period prior to expiration of the first renewal period in January 2023. There can be no assurance that the option to renew this agreement will be exercised. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place and use certain satellites at the 61.5 degree orbital location. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the transponder service agreement we previously had with EchoStar for EchoStar XVI was transferred to DISH Network and we began receiving transponder services from a wholly-owned subsidiary of DISH Network as of the same date. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term would expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term in September 2019, we had the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Upon in- orbit failure or end-of-life of the Nimiq 5 satellite, and in certain other circumstances, we had certain rights to receive service from EchoStar on a replacement satellite. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began receiving transponder services on the Nimiq 5 satellite from a wholly-owned subsidiary of DISH Network as of the same date and exercised our option to renew for a one-year period through September 2020. As discussed in Note 6, “Property and Equipment and Intangible Assets,” the Nimiq 5 satellite lease has been accounted for as a finance lease since September 2019. Accordingly, expenses related to this lease are no longer recorded in “Satellite and transmission expenses,” but rather in “Depreciation and amortization” and “Interest expense, net of amounts capitalized” on our Consolidated Statements of Operations and Comprehensive Income (Loss). During the year ended December 31, 2019, we recorded $11 million of “Depreciation and amortization expense” and $5 million of “Interest expense, net of amounts capitalized” related to Nimiq 5. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provides, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite. During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we received service from EchoStar on 24 DBS transponders. QuetzSat- 1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location while we and EchoStar explored alternative uses for the QuetzSat-1 satellite. In the interim, EchoStar provided us with alternate capacity at the 77 degree orbital location. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the QuetzSat-1 Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. Upon an in-orbit failure or end-of-life of the QuetzSat-1 satellite, and in certain other circumstances, we have certain rights to receive service from DISH Network on a replacement satellite. There can be no assurance that any options to renew the QuetzSat-1 Transponder Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, the QuetzSat-1 Transponder Agreement was transferred to DISH Network and we began receiving transponder services on QuetzSat-1 from a wholly-owned subsidiary of DISH Network as of the same date. Our lease arrangement with DISH Network expires in November 2021. EchoStar XVIII Satellite. The EchoStar XVIII satellite was launched on June 18, 2016 and became operational as an in-orbit spare at the 61.5 degree orbital location during the third quarter 2016, at which time we began leasing it from a wholly-owned subsidiary of DISH Network. On May 14, 2019, we and DOLLC II entered into an agreement to sell our interests in the LMDS and MVDDS licenses in exchange for the EchoStar XVIII satellite. See Note 6 for further information. TT&C Agreement. Effective January 1, 2012, we entered into a TT&C agreement pursuant to which we receive TT&C services from EchoStar for certain satellites (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network. We began receiving TT&C services from a wholly-owned subsidiary of DISH Network as of the same date. “General and administrative expenses” During the year ended December 31, 2019, we incurred $3 million DISH Network. These amounts are recorded in “General and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. O n September 10, 2019, in connection with the Master Transaction Agreement DISH Network entered into with EchoStar on May 19, 2019 and we began leasing office space owned or leased by DISH Network from a wholly-owned subsidiary of DISH Network. The term of each lease is set forth below: ● Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado originally from EchoStar to us was for a period ending on December 31, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we began leasing all of 5701 S. Santa Fe Dr. in Littleton, Colorado from a wholly-owned subsidiary of DISH Network as of the same date. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. In connection with the completion of the Share Exchange, EchoStar transferred ownership of a portion of this property to DISH Network, and, effective March 1, 2017, DISH Network and EchoStar amended this lease agreement to (i) terminate the lease of certain space at the portion of the property that was transferred to us and (ii) provide for the continued lease to us of certain space at the portion of the property that EchoStar retained. P ursuant to the Master Transaction Agreement, discussed above, t he portion of the property EchoStar retained was transferred to DISH Network , and on September 10, 2019, this lease was transferred to DISH Network and we began leasing certain space from a wholly-owned subsidiary of DISH Network as of the same date. Other Agreements – DISH Network Broadband, Wireless and Other Operations. We provide certain administrative, call center, installation, marketing and other services to DISH Network’s broadband, wireless and other operations. During the years ended December 31, 2019, 2018 and 2017, the costs associated with these services were Related Party Transactions with EchoStar Following the Spin-off, DISH Network and EchoStar have operated as separate publicly-traded companies and neither entity has any ownership interest in the other. However, a substantial majority of the voting power of the shares of both companies is owned beneficially by Charles W. Ergen, our Chairman, and by certain entities established by Mr. Ergen for the benefit of his family. In connection with and following the Spin-off, we and EchoStar have entered into certain agreements pursuant to which we obtain certain products, services and rights from EchoStar, EchoStar obtains certain products, services and rights from us, and we and EchoStar have indemnified each other against certain liabilities arising from our respective businesses. Pursuant to the Share Exchange Agreement, among other things, EchoStar transferred to us certain assets and liabilities of the EchoStar technologies and EchoStar broadcasting businesses. Pursuant to the Master Transaction Agreement, among other things, EchoStar transferred to DISH Network certain assets and liabilities of its EchoStar Satellite Services segment. In connection with the Share Exchange and the Master Transaction Agreement, DISH Network and EchoStar and certain of their respective subsidiaries entered into certain agreements covering, among other things, tax matters, employee matters, intellectual property matters and the provision of transitional services. In addition, certain agreements that we had with EchoStar have terminated, and we entered into certain new agreements with EchoStar. We also may enter into additional agreements with EchoStar in the future. The following is a summary of the terms of our principal agreements with EchoStar that may have an impact on our financial condition and results of operations. “Trade accounts receivable” As of December 31, 2019 and 2018, trade accounts receivable from EchoStar was $1 million and $4 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Consolidated Balance Sheets. “Trade accounts payable” As of December 31, 2019 and 2018, trade accounts payable to EchoStar was $3 million and $6 million, respectively. These amounts are recorded in “Trade accounts payable” on our Consolidated Balance Sheets. “Equipment sales and other revenue” During the years ended December 31, 2019, 2018 and 2017, we received $6 million, $8 million and $3 million, respectively, for services provided to EchoStar. These amounts are recorded in “Equipment sales and other revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these revenues are discussed below. Real Estate Lease Agreements. DISH Network has entered into lease agreements pursuant to which DISH Network leases certain real estate to EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic areas, and EchoStar is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● El Paso Lease Agreement. During 2012, DISH Network began leasing certain space at 1285 Joe Battle Blvd., El Paso, Texas to EchoStar for an initial period ending on August 1, 2015, which also provides EchoStar with renewal options for four consecutive three-year terms. During the second quarter 2015, EchoStar exercised its first renewal option for a period ending on August 1, 2018 and in April 2018 EchoStar exercised its second renewal option for a period ending in August 2021. ● 90 Inverness Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 90 Inverness Circle East, Englewood, Colorado for a period ending in February 2022. EchoStar has the option to renew this lease for four three-year periods. ● Cheyenne Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 530 EchoStar Drive, Cheyenne, Wyoming for a period ending in February 2019. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for twelve one-year periods. In connection with the Master Transaction Agreement, DISH Network and EchoStar amended this lease to provide EchoStar with certain space for a period ending in September 2021, with the option for EchoStar to renew for a one-year period upon 180 days ’ written notice prior to the end of the term . ● Gilbert Lease Agreement . In connection with the completion of the Share Exchange, effective March 1, 2017, EchoStar leases certain space from us at 801 N. DISH Dr., Gilbert, Arizona for a period ending in March 2019. In August 2018, EchoStar exercised its option to renew this lease for a one-year period ending in February 2020. EchoStar has the option to renew this lease for twelve one-year periods. This lease was terminated effective September 10, 2019. ● American Fork Occupancy License Agreement. In connection with the completion of the Share Exchange, effective March 1, 2017, we acquired the lease for certain space at 796 East Utah Valley Drive, American Fork, Utah, and we sublease certain space at this location to EchoStar for a period ending in August 2017. In June 2017, EchoStar exercised its five-year renewal option for a period ending in August 2022. This lease was terminated effective March 2019. Collocation and Antenna Space Agreements . In connection with the completion of the Share Exchange, effective March 1, 2017, we entered into certain agreements pursuant to which we will provide certain collocation and antenna space to HNS through February 2022 at the following locations: Cheyenne, Wyoming; Gilbert, Arizona; New Braunfels, Texas; Monee, Illinois; Englewood, Colorado and Spokane, Washington. During August 2017, we entered into certain other agreements pursuant to which we will provide certain collocation and antenna space to HNS through August 2022 at the following locations: Monee, Illinois and Spokane, Washington. HNS has the option to renew each of these agreements for four three-year periods. HNS may terminate certain of these agreements with 180 days ’ prior written notice to us at the following locations: New Braunfels, Texas; Englewood, Colorado; and Spokane, Washington. In September 2019, in connection with the Master Transaction Agreement, we entered into an agreement pursuant to which we provide HNS with certain additional collocation space in Cheyenne, Wyoming for a period ending in September 2020, with the option for HNS to renew for a one-year period, with prior written notice no more than 120 days but no less than 90 days prior to the end of the term. In October 2019, HNS provided a termination notice for its New Braunfels, Texas agreement to be effective May 2020. The fees for the services provided under these agreements depend, among other things, on the number of racks leased and/or antennas present at the location. “Satellite and transmission expenses” During the years ended December 31, 2019, 2018 and 2017, we incurred $198 million, $309 million and $346 million, respectively, for satellite capacity leased from EchoStar and telemetry, tracking and control and other professional services provided to us by EchoStar. Historically, EchoStar was the supplier of the vast majority of our transponder capacity. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, certain of these satellites were transferred to DISH Network. We are now leasing this satellite capacity from DISH Network. These amounts are recorded in “Satellite and transmission expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Satellite Capacity Leased from EchoStar. We have entered into certain satellite capacity agreements pursuant to which we lease certain capacity on certain satellites owned or leased by EchoStar. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: ● EchoStar VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar VII, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. The satellite capacity agreement for EchoStar VII expired on June 30, 2018. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, these satellites were transferred to DISH Network. ● EchoStar IX . We lease certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally have the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis. ● EchoStar XVI. In December 2009, we entered into a transponder service agreement with EchoStar to lease all of the capacity on EchoStar XVI, a DBS satellite, after its service commencement date. EchoStar XVI was launched in November 2012 to replace EchoStar XV at the 61.5 degree orbital location and is currently in service. Effective December 21, 2012, we and EchoStar amended the transponder service agreement to, among other things, change the initial term to generally expire upon the earlier of: (i) the end-of-life or replacement of the satellite; (ii) the date the satellite fails; (iii) the date the transponder(s) on which service is being provided under the agreement fails; or (iv) four years following the actual service commencement date. In July 2016, we and EchoStar amended the transponder service agreement to, among other things, extend the initial term by one additional year and to reduce the term of the first renewal option by one year . Prior to expiration of the initial term, we had the option to renew for an additional five-year period. In May 2017, we exercised our first renewal option for an additional five-year period ending in January 2023. We also have the option to renew for an additional five-year period prior to expiration of the first renewal period in January 2023. There can be no assurance that the option to renew this agreement will be exercised. During 2018, we and EchoStar further amended the agreement to, among other things, allow us to place and use certain satellites at the 61.5 degree orbital location. On May 19, 2019, DISH Network entered into a Master Transaction Agreement pursuant to which, on September 10, 2019, this satellite was transferred to DISH Network. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen-year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”). During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we received service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. Under the terms of the DISH Nimiq 5 Agreement, we made certain monthly payments to EchoStar that commenced in 2009 when the Nimiq 5 satellite was placed into service and continued through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term in September 2019, we have the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Upon in- orbit failure or end-of-life of the Nimiq 5 satellite, and in certain other circumstances, we had certain rights to receive service from EchoStar on a replacement satellite. On May 19, 2019, DISH Network entered into the Master Transaction Agreement pursuant to which, on September 10, 2019, the Telesat Transponder Agreement was transferred to DISH Network and we began leasing it from an indirect wholly-owned subsidiary of DISH Network and we exercised our option to renew for a one-year period through September 2020. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten-year satellite service agreement with SES Latin America S.A. (“SES”), which provides, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite. During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we receive service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location while we and EchoStar explored alternative uses for the QuetzSat-1 satellite. In the interim, EchoStar provided us with alternate capacity at the 77 degree orbital location. During the first quarter 2013, we and EchoStar entered into an agreement pursuant to which we sublease five DBS transponders back to EchoStar. In January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the QuetzSat-1 Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. Upon an in-orbit failure or end-of-life of the QuetzSat-1 satellite, and in certain other circumstances, we had certain rights to receive service from EchoStar on a replacement satellite. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the QuetzSat-1 Transponder Agreement was transferred to DISH Network and 103 Degree Orbital Location/SES-3. In May 2012, EchoStar entered into a spectrum development agreement (the “103 Spectrum Development Agreement”) with Ciel Satellite Holdings Inc. (“Ciel”) to develop certain spectrum rights at the 103 degree orbital location (the “103 Spectrum Rights”). In June 2013, we and EchoStar entered into a spectrum development agreement (the “DISH 103 Spectrum Development Agreement”) pursuant to which we may use and develop the 103 Spectrum Rights. Both the 103 Spectrum Development Agreement and DISH 103 Spectrum Development Agreement were terminated on March 31, 2018. In connection with the 103 Spectrum Development Agreement, in May 2012, EchoStar also entered into a ten-year service agreement with Ciel pursuant to which EchoStar leases certain satellite capacity from Ciel on the SES-3 satellite at the 103 degree orbital location (the “103 Service Agreement”). In June 2013, we and EchoStar entered into an agreement pursuant to which we lease certain satellite capacity from EchoStar on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, we make certain monthly payments to EchoStar through the service term. Both the 103 Service Agreement and DISH 103 Service Agreement were terminated on March 31, 2018. TT&C Agreement. Effective January 1, 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we receive TT&C services from EchoStar for certain satellites (the “TT&C Agreement”). In February 2018, we amended the TT&C Agreement to, among other things, extend the term for one-year with four automatic one-year renewal periods. The fees for services provided under the TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We and EchoStar are able to terminate the TT&C Agreement for any reason upon 12 months ’ notice. On May 19, 2019, DISH Network entered into the Master Transaction Agreement, discussed above, pursuant to which, on September 10, 2019, the assets and employees that provide these services were transferred to DISH Network and now DISH Network provides these services to us. “General and administrative expenses” During the years ended December 31, 2019, 2018 and 2017, we incurred $20 million, $21 million and $29 million, respectively, for general and administrative expenses for services provided to us by EchoStar. These amounts are recorded in “General and administrative expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. Real Estate Lease Agreements. We have entered into lease agreements pursuant to which we lease certain real estate from EchoStar. The rent on a per square foot basis for each of the leases is comparable to per square foot rental rates of similar commercial property in the same geographic area, and EchoStar is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each lease is set forth below: ● Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado was for a period ending on December 31, 2019. In December 2019, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado was for a period ending on December 31, 2018. In December 2018, we and EchoStar amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2019. Pursuant to the Master Transaction Agreement, discussed above, on September 10, 2019, this lease was transferred to DISH Network and we now lease it from DISH Network. In December 2019, we and DISH Network amended this lease to, among other things, extend the term thereof for one additional year until December 31, 2020. ● Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. In connection with the completion of the Share Exchange, EchoStar transferred ownership of a portion of this property to us, and, effective March 1, 2017, we and EchoStar amended this lease agreement to (i) terminate the lease of certain space at the portion of the property that was transferred to us and (ii) provide for the continued lease to us of certain space at the portion of the property that EchoStar retained. Pursuant to the Master Transaction Agreement, discussed above, t he portion of the property EchoStar retained was transferred to DISH Network , and on Se |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events | |
Subsequent Events | 14. Subsequent Events 7 3/8% Senior Notes due 2028 On July 1, 2020, we issued $1.0 billion aggregate principal amount of our 7 3/8% Senior Notes due July 1, 2028. Interest accrues at an annual rate of 7 3/8% and is payable semi-annually in cash, in arrears on January 1 and July 1 of each year, commencing on January 1, 2021. The 7 3/8% Senior Notes are redeemable, in whole or in part, at any time prior to July 1, 2023 at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. On or after July 1, 2023, we may redeem the Notes, in whole or in part, at any time at the redemption prices specified under the related indenture, together with accrued and unpaid interest. Prior to July 1, 2023, we may also redeem up to 35% of the 7 3/8% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. Our 7 3/8% Senior Notes are: ● general unsecured senior obligations of DISH DBS; ● ranked equally in right of payment with all of DISH DBS’ and the guarantors’ existing and future unsecured senior debt; and ● ranked effectively junior to our and the guarantors’ current and future secured senior indebtedness up to the value of the collateral securing such indebtedness. The indenture related to our 7 3/8% Senior Notes contains restrictive covenants that, among other things, impose limitations on the ability of DISH DBS and its restricted subsidiaries to: ● incur additional debt; ● pay dividends or make distributions on DISH DBS’ capital stock or repurchase DISH DBS’ capital stock; ● make certain investments; ● create liens or enter into sale and leaseback transactions; ● enter into transactions with affiliates; ● merge or consolidate with another company; and ● transfer or sell assets. In the event of a change of control, as defined in the related indenture, we would be required to make an offer to repurchase all or any part of a holder’s 7 3/8% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Summary of Significant Accounting Policies | ||
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these statements do not include all of the information and notes required for complete financial statements prepared under GAAP. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Our results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. Certain prior period amounts have been reclassified to conform to the current period presentation. | |
Principles of Consolidation | Principles of Consolidation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, these equity securities are classified as either marketable investment securities or other investments and recorded at fair value with changes recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for credit losses, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, relative standalone selling prices of performance obligations, finance leases, asset impairments, estimates of future cash flows used to evaluate and recognize impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our condensed consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, , finance leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, independent third-party retailer incentives, programming expenses and subscriber lives. Economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Actual results may differ from previously estimated amounts, and such differences may be material to our consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected prospectively in the period they occur. |
Marketable Investment Securities | Marketable Investment Securities All equity securities are carried at fair value, with changes in fair value recognized in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). All debt securities are classified as available-for-sale and are recorded at fair value. Historically, we reported temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. Subsequent to the adoption of ASU 2016-13 Financial Instruments – Credit Losses, Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) during the first quarter of 2020, we report the temporary unrealized gains and losses related to changes in market conditions of marketable debt securities as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Condensed Consolidated Balance Sheets. The corresponding changes in the fair value of marketable debt securities, which are determined to be company specific credit losses are recorded in “Other, net” within “Other Income (Expense)” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). We evaluate our debt investment portfolio to determine whether declines in the fair value of these securities are related to credit loss. Management estimates credit losses on marketable debt securities utilizing a credit loss impairment model on a quarterly basis. We estimate the expected credit losses, measured over the contractual life of marketable debt securities considering relevant issuer specific factors, including, but not limited to, a decrease in credit ratings or an entities ability to pay. | Marketable Investment Securities Historically, we classified all marketable investment securities as available-for-sale, except for investments which were accounted for as trading securities, and adjusted the carrying amount of our available-for-sale securities to fair value and reported the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Consolidated Balance Sheets. Our trading securities were 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). Subsequent to the adoption of ASU 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”) during the first quarter 2018, 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. We adjust the carrying amount of our debt securities to fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax on our Consolidated Balance Sheets. Declines in the fair value of a marketable debt security which are determined to be “other-than-temporary” are recognized on our Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment. We evaluate our debt investment portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other-than-temporary. This quarterly evaluation consists of reviewing, among other things: ● the fair value of our debt investments compared to the carrying amount, ● the historical volatility of the price of each security, and ● any market and company specific factors related to each security. Declines in the fair value of debt investments below cost basis are generally accounted for as follows: Length of Time Investment Has Been In a Continuous Treatment of the Decline in Value Loss Position (absent specific factors to the contrary) Less than six months Generally, considered temporary. Six to nine months Evaluated on a case by case basis to determine whether any company or market-specific factors exist indicating that such decline is other-than-temporary. Greater than nine months Generally, considered other-than-temporary. The decline in value is recorded as a charge to earnings. Additionally, in situations where the fair value of a debt security is below its carrying amount, we consider the decline to be other-than-temporary and record a charge to earnings if any of the following factors apply: ● we have the intent to sell the security, ● it is more likely than not that we will be required to sell the security before maturity or recovery, or ● we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. In general, we use the first in, first out method to determine the cost basis on sales of marketable investment securities. |
Trade Accounts Receivable | Trade Accounts Receivable Prior to January 1, 2020, management estimated the amount of allowance for doubtful accounts for potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. Subsequent to January 1, 2020 due to the adoption of ASU 2016-13, trade accounts receivable are recorded at amortized cost less an allowance for expected credit losses that are not expected to be recovered. We maintain allowances for credit losses resulting from the expected failure or inability of our customers to make required payments. We recognize the allowance for expected credit losses at inception and reassess quarterly based on management’s expectation of the asset’s collectability. Management estimates credit losses on financial assets, including our trade accounts receivable, utilizing a current expected credit loss impairment model. We estimate the expected credit losses, measured over the contractual life of an asset considering relevant historical loss information, credit quality of the customer base, current economic conditions and forecasts of future economic conditions. In determining the allowance for credit losses, management groups similar types of financial assets with consistent risk characteristics. Pools identified by management include but are not limited to residential customers, commercial customers and advertising services. The risk characteristics of the financial asset portfolios are monitored by management and reviewed periodically. The forecasts for future economic conditions are based on several factors including, but not limited to, changes in the unemployment rate, external economic forecasts and current collection rates. Our estimates of the allowance for credit losses may not be indicative of our actual credit losses requiring additional charges to be incurred to reflect the actual amount collected. | Trade Accounts Receivable Management estimates the amount of required allowances for the potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. However, past experience may not be indicative of future collections and therefore additional charges could be incurred in the future to reflect differences between estimated and actual collections. |
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 June 30, 2020 and December 31, 2019, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for credit losses or net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 8 for the fair value of our long-term debt. | 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, 2019 and 2018, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and finance lease obligations”) was equal to or approximated fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are based on, among other things, available trade information, and/or an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 8 for the fair value of our long-term debt. |
Revenue Recognition | Revenue Recognition Our revenue is primarily derived from Pay-TV programming services that we provide to our subscribers. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 11 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year . Revenues arising from our in-home services that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed. For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606, Revenue from Contracts with Customers Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month. Contract Balances The timing of revenue recognition generally differs from the timing of invoicing to customers. When revenue is recognized prior to invoicing, we record a receivable. When revenue is recognized subsequent to invoicing, we record deferred revenue. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts as we apply a practical expedient when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. See Note 12 for further information, including balance and activity detail about our allowance for credit losses and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the three months ended June 30, 2020 and 2019, we capitalized million for the three months ended June 30, 2020 and 2019, respectively. During the six months ended June 30, 2020 and 2019, we capitalized million for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020 and December 31, 2019, we had a total of million, respectively, capitalized on our Condensed Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Condensed Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). | Revenue Recognition Our revenue is primarily derived from Pay-TV programming services that we provide to our subscribers. We also generate revenue from equipment rental fees and other hardware related fees, including DVRs and fees from subscribers with multiple receivers; advertising services; fees earned from our in-home service operations; warranty services; sales of digital receivers and related equipment to third-party pay-TV providers; satellite uplink and telemetry, tracking and control (“TT&C”) services; and revenue from in-home services. See Note 14 Our residential video subscribers contract for individual services or combinations of services, as discussed above, the majority of which are generally distinct and are accounted for as separate performance obligations. We consider our installations for first time DISH TV subscribers to be a service. However, since we provide a significant integration service combining the installation with programming services, we have concluded that the installation is not distinct from programming and thus the installation and programming services are accounted for as a single performance obligation. We generally satisfy these performance obligations and recognize revenue as the services are provided, for example as the programming is broadcast to subscribers, as this best represents the transfer of control of the services to the subscriber. In cases where a subscriber is charged certain nonrefundable upfront fees, those fees are generally considered to be material rights to the subscriber related to the subscriber’s option to renew without having to pay an additional fee upon renewal. These fees are deferred and recognized over the estimated period of time during which the fee remains material to the customer, which we estimate to be less than one year . Revenues arising from our in-home services that are separate from the initial installation, such as mounting a TV on a subscriber’s wall, are generally recognized when these services are performed. For our residential video subscribers, we have concluded that the contract term under Accounting Standard Codification Topic 606 (“ASC 606”) is one month and as a result the revenue recognized for these subscribers for a given month is equal to the amount billed in that month, except for certain nonrefundable upfront fees that are accounted for as material rights, as discussed above. Revenues from our advertising services are typically recognized as the advertisements are broadcast. Sales of equipment to subscribers or other third parties are recognized when control is transferred under the contract. Revenue from our commercial video subscribers typically follows the residential model described above, with the exception that the contract term for most of our commercial subscribers exceeds one month and can be multiple years in length. However, commercial subscribers typically do not receive time-limited discounts or free service periods and accordingly, while they may have multiple performance obligations, revenue is equal to the amount billed in a given month. Contract Balances The timing of revenue recognition generally differs from the timing of invoicing to customers. When revenue is recognized prior to invoicing, we record a receivable. When revenue is recognized subsequent to invoicing, we record deferred revenue. Our residential video subscribers are typically billed monthly, and the contract balances for those customers arise from the timing of the monthly billing cycle. We do not adjust the amount of consideration for financing impacts as we apply a practical expedient when we anticipate that the period between transfer of goods and services and eventual payment for those goods and services will be less than one year. See Note 15 for further information, including balance and activity detail about our allowance for doubtful accounts and deferred revenue related to contracts with subscribers. Assets Recognized Related to the Costs to Obtain a Contract with a Subscriber We recognize an asset for the incremental costs of obtaining a contract with a subscriber if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs, including those with our independent third-party retailers, meet the requirements to be capitalized, and payments made under these programs are capitalized and amortized to expense over the estimated subscriber life. During the years ended December 31, 2019 and 2018, we capitalized $207 million and $183 million, respectively, under these programs. The amortization expense related to these programs was $76 million and $28 million for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019 and 2018, we had a total of $300 million and $169 million capitalized on our Consolidated Balance Sheets. These amounts are capitalized in “Other current assets” and “Other noncurrent assets, net” on our Consolidated Balance Sheets, and then amortized in “Other subscriber acquisition costs” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Impact of Adoption of ASU 2014-09 On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 Revenue from Contracts with Customers We adopted ASU 2014-09, as modified, and now codified as ASC 606 and Accounting Standard Codification Topic 340-40 (“ASC 340-40”) on January 1, 2018, using the modified retrospective method. Under that method, we applied the new guidance to all open contracts existing as of January 1, 2018, recognizing in beginning retained earnings an adjustment for the cumulative effect of the change, which was |
Leases | Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to 12 years , some of which include renewal options , and some of which include options to terminate the leases within one year . We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our Condensed Consolidated Balance Sheets. Finance leases are included in “Property and equipment, net,” “Current portion of long-term debt and finance lease obligations” and “Long-term debt and finance lease obligations, net of current portion” on our Condensed Consolidated Balance Sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet and we recognize lease expense for these leases on a straight-line basis over the lease term on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 7 for further information on our lease expenses. Right of use (“ROU”) assets represent our right to use an underlying asset for the lease term and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 13 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into a Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. See Note 13 “ Related Party Transactions – Master Transaction Agreement” We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The revenue related to equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. Impact of Adoption of ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (“ASU 2016-02”) and has modified the standard thereafter. We adopted ASU 2016-02, as modified, on January 1, 2019 using the modified retrospective method. Under the modified retrospective method, we applied the new guidance to all leases that commenced before and were existing as of January 1, 2019. The adoption of ASU 2016-02 had no impact on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating, investing and financing activities on our Condensed Consolidated Statements of Cash Flows. | Leases We enter into operating and finance leases for, among other things, satellites, office space, warehouses and distribution centers, vehicles, and other equipment. Our leases have remaining lease terms from one to twelve years , some of which include renewal options , and some of which include options to terminate the leases within one year . We determine if an arrangement is a lease and classify that lease as either an operating or finance lease at inception. Operating leases are included in “Operating lease assets,” “Other accrued expenses” and “Operating lease liabilities” on our 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. When our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes the impact of prepaid or deferred lease payments. The length of our lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. We currently lease and historically have leased certain assets from EchoStar, including, among other things, satellites, office space and data centers. See Note 17 for further information on our Related Party Transactions with EchoStar. On May 19, 2019, DISH Network entered into the Master Transaction Agreement with EchoStar and effective September 10, 2019, certain satellites and real estate assets leased from EchoStar were transferred to DISH Network. Recent Developments” December 31 We have lease agreements with lease and non-lease components, which are generally accounted for separately. Our variable lease payments are immaterial and our lease agreements do not contain any material residual value guarantees or material restrictive covenants. DISH TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH TV services. Most of our new DISH TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH TV subscribers is capitalized and depreciated over their estimated useful lives. For equipment leased to new and existing DISH TV subscribers we made an accounting policy election to combine the equipment with our programming services as a single performance obligation in accordance with the revenue recognition guidance as the programming services are the predominant component. The equipment leased to new and existing DISH TV subscribers would have otherwise been accounted for as an operating lease. Impact of Adoption of ASU 2016-02 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02 Leases (“ASU 2016-02”) and has modified the standard thereafter. We adopted ASU 2016-02, as modified, on January 1, 2019 using the modified retrospective method. Under the modified retrospective method, we applied the new guidance to all leases that commenced before and were existing as of January 1, 2019. The adoption of ASU 2016-02 had no impact on our Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flows from operating, investing and financing activities on our Consolidated Statements of Cash Flows. The adoption of ASU 2016-02 impacted our December 31, 2019 Consolidated Balance Sheets, including the reclassification of our deferred rent liabilities to an operating lease asset, as follows: Consolidated Balance Sheets DISH DBS (as would have been reported under previous standards) Impact of adopting ASU 2016-02 DISH DBS (as currently reported) (In thousands) As of December 31, 2019 Operating lease assets $ — $ 553,576 $ 553,576 Total assets $ 3,832,983 $ 553,576 $ 4,386,559 Other accrued expenses $ 715,361 $ 202,972 $ 918,333 Operating lease liabilities $ — $ 350,155 $ 350,155 Long-term deferred revenue and other long-term liabilities $ 207,543 $ 449 $ 207,992 Total liabilities $ 14,767,605 $ 553,576 $ 15,321,181 Total stockholder's equity (deficit) $ (10,934,622) $ — $ (10,934,622) Total liabilities and stockholder's equity (deficit) $ 3,832,983 $ 553,576 $ 4,386,559 |
Research and Development | Research and Development Research and development costs are expensed as incurred. Research and development costs totaled Research and development costs totaled | Research and Development Research and development costs are expensed as incurred. Research and development costs totaled $21 million, $24 million and $33 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Supplemental Data - Statement_5
Supplemental Data - Statements of Cash Flows (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Supplemental Data - Statements of Cash Flows | ||
Schedule of supplemental cash flow and other non-cash data | For the Six Months Ended June 30, 2020 2019 (In thousands) Cash paid for interest $ 329,923 $ 382,391 Cash received for interest 1,962 8,528 Cash paid for income taxes 3,205 8,845 Cash paid for income taxes to DISH Network 176,964 152,526 Capitalized interest — 440 Reclassification of a receivable from noncurrent to current — 138,210 | For the Years Ended December 31, 2019 2018 2017 (In thousands) Cash paid for interest $ 765,510 $ 793,506 $ 878,772 Cash received for interest 30,041 6,043 9,855 Cash paid for income taxes 19,485 18,683 29,961 Cash paid for income taxes to DISH Network 245,028 302,329 408,265 Capitalized interest 440 1,071 481 |
Marketable Investment Securit_8
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 June 30, December 31, 2020 2019 (In thousands) Marketable investment securities: Current marketable investment securities $ 31 $ — Restricted marketable investment securities (1) — 390 Total marketable investment securities 31 390 Restricted cash and cash equivalents (1) 61,349 60,677 Other investment securities: Other investment securities 96,886 106,874 Total other investment securities 96,886 106,874 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 158,266 $ 167,941 (1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash, cash equivalents and marketable investment securities” on our Condensed Consolidated Balance Sheets. | As of December 31, 2019 2018 (In thousands) Marketable investment securities: Current marketable investment securities: Trading/equity $ — $ 2,370 Other — 147,370 Total current marketable investment securities — 149,740 Restricted marketable investment securities (1) 390 67,019 Total marketable investment securities 390 216,759 Restricted cash and cash equivalents (1) 60,677 578 Other investment securities: Other investment securities 106,874 108,308 Total other investment securities 106,874 108,308 Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ 167,941 $ 325,645 (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 | As of June 30, 2020 December 31, 2019 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 63,344 $ 62,740 $ 604 $ — $ 60,677 $ 60,677 $ — $ — Debt securities (including restricted): U.S. Treasury and agency securities $ — $ — $ — $ — $ 390 $ 390 $ — $ — Commercial paper 31 — 31 — — — — — Corporate securities — — — — — — — — Other — — — — — — — — Total $ 31 $ — $ 31 $ — $ 390 $ 390 $ — $ — | As of December 31, 2019 2018 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ 60,677 $ 60,677 $ — $ — $ 114,464 $ 12,493 $ 101,971 $ — Debt securities (including restricted): U.S. Treasury and agency securities $ 390 $ 390 $ — $ — $ 66,823 $ 66,823 $ — $ — Commercial paper — — — — 45,938 — 45,938 — Corporate securities — — — — 100,662 — 100,662 — Other — — — — 966 — 966 — Equity securities — — — — 2,370 2,370 — — Total $ 390 $ 390 $ — $ — $ 216,759 $ 69,193 $ 147,566 $ — |
Gains and Losses on Sales and Changes in Carrying Amounts of Investments | For the Three Months Ended For the Six Months Ended June 30, June 30, Other, net: 2020 2019 2020 2019 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ — $ 829 $ — $ 3,599 Costs related to early redemption of debt — — — (439) Equity in earnings of affiliates (399) 2,297 (121) 1,353 Other 247 5 914 51 Total $ (152) $ 3,131 $ 793 $ 4,564 | For the Years Ended December 31, Other, net: 2019 2018 2017 (In thousands) Marketable investment securities - realized and unrealized gains (losses) $ 3,119 $ 5,313 $ 87,020 Costs related to early redemption of debt — (3,261) (1,470) Gain (loss) on sale of subsidiary — 7,004 — Equity in earnings of affiliates 3,514 (2,110) 2,163 Other 976 2,048 798 Total $ 7,609 $ 8,994 $ 88,511 |
Inventory (Tables)_2
Inventory (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Inventory | ||
Schedule of inventory | As of June 30, December 31, 2020 2019 (In thousands) Finished goods $ 249,605 $ 254,240 Work-in-process and service repairs 34,245 34,120 Raw materials 17,558 33,623 Total inventory $ 301,408 $ 321,983 | As of December 31, 2019 2018 (In thousands) Finished goods $ 254,240 $ 215,150 Work-in-process and service repairs 34,120 56,871 Raw materials 33,623 18,676 Total inventory $ 321,983 $ 290,697 |
Property and Equipment (Table_2
Property and Equipment (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Property and Equipment | ||
Schedule of property and equipment | Depreciable As of Life June 30, December 31, (In Years) 2020 2019 (In thousands) Equipment leased to customers 2 - 5 $ 1,779,445 $ 1,837,503 EchoStar XV 15 277,658 277,658 EchoStar XVIII 15 411,255 411,255 Satellites acquired under finance lease agreements 15 398,107 398,107 Furniture, fixtures, equipment and other 2 - 20 1,934,783 1,894,629 Buildings and improvements 5 - 40 294,342 289,421 Land - 13,186 13,186 Construction in progress - 62,862 70,081 Total property and equipment 5,171,638 5,191,840 Accumulated depreciation (3,509,710) (3,440,267) Property and equipment, net $ 1,661,928 $ 1,751,573 | Depreciable As of Life December 31, December 31, (In Years) 2019 2018 (In thousands) Equipment leased to customers 2 -5 $ 1,837,503 $ 1,980,808 EchoStar XV 15 277,658 277,658 EchoStar XVIII (1) 15 411,255 — Satellites acquired under finance lease agreements (2)(3) 15 398,107 499,819 Furniture, fixtures, equipment and other 2 -20 1,894,629 1,820,883 Buildings and improvements 5 -40 289,421 289,244 Land - 13,186 13,186 Construction in progress - 70,081 47,077 Total property and equipment 5,191,840 4,928,675 Accumulated depreciation (3,440,267) (3,550,726) Property and equipment, net $ 1,751,573 $ 1,377,949 (1) On May 14, 2019, we and DISH Orbital II L.L.C (“DOLLC II”), an indirect wholly-owned subsidiary of DISH Network, entered into an agreement to sell our interests in the Local Multipoint Distribution Service (“LMDS”) and MVDDS licenses in exchange for the EchoStar XVIII satellite, including its related in-orbit incentive obligations of approximately $18 million (the “Satellite and Spectrum Transaction”). See Note 17 for further information. (2) The Ciel II satellite was previously classified as a finance lease, with a cost basis of $277 million, however, as a result of an amendment, which was effective during the first quarter 2019, Ciel II is now accounted for as an operating lease. (3) The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease, with a cost basis of $175 million. |
Schedule of depreciation and amortization expense | For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Equipment leased to customers $ 69,489 $ 86,453 $ 149,171 $ 194,589 Satellites 23,796 12,920 47,593 23,575 Buildings, furniture, fixtures, equipment and other 29,584 36,227 61,190 72,551 Total depreciation and amortization $ 122,869 $ 135,600 $ 257,954 $ 290,715 | For the Years Ended December 31, 2019 2018 2017 (In thousands) Equipment leased to customers $ 370,867 $ 437,342 $ 539,434 Satellites 65,441 61,045 61,045 Buildings, furniture, fixtures, equipment and other 141,040 162,073 141,293 Total depreciation and amortization $ 577,348 $ 660,460 $ 741,772 |
Schedule of pay-TV satellite fleet | Degree Launch Orbital Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 N/A EchoStar XVIII June 2016 61.5 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from DISH Network (2): EchoStar X February 2006 110 February 2021 EchoStar XI July 2008 110 September 2021 EchoStar XIV March 2010 119 February 2023 EchoStar XVI November 2012 61.5 January 2023 Nimiq 5 (3) September 2009 72.7 September 2020 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2021 (1) See Note 13 for further information on our Related Party Transactions with EchoStar. (2) See Note 13 for further information on our Related Party Transactions with DISH Network. (3) The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease. | Degree Launch Orbital Lease Satellites Date Location Termination Date Owned: EchoStar XV July 2010 61.5 N/A EchoStar XVIII June 2016 61.5 N/A Leased from EchoStar (1): EchoStar IX August 2003 121 Month to month Leased from DISH Network (2): EchoStar X (3) February 2006 110 February 2021 EchoStar XI (3) July 2008 110 September 2021 EchoStar XIV (3) March 2010 119 February 2023 EchoStar XVI (3) November 2012 61.5 January 2023 Nimiq 5 (3)(4) September 2009 72.7 September 2020 QuetzSat-1 (3) September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2021 (1) See Note 17 for further information on our Related Party Transactions with EchoStar. (2) See Note 17 for further information on our Related Party Transactions with DISH Network. (3) On May 19, 2019, DISH Network entered into the Master Transaction Agreement with EchoStar. Upon the closing of the Master Transaction Agreement on September 10, 2019, these satellites and satellite service agreements leased from EchoStar were transferred to DISH Network. See Note 1 “ Recent Developments” in the Notes to DISH Network’s Annual Report on Form 10-K for the year ended December 31 , 2019 for further information on the Master Transaction Agreement. (4) The Nimiq 5 satellite, for which we have the option to renew on a year-to-year basis through September 2024 (when DISH Network’s lease term expires) was previously classified as an operating lease. As a result of the Master Transaction Agreement and expiration of the initial lease term, we now include our options to renew the lease through September 2024 in the lease term as we are reasonably certain to exercise those options. Accordingly, Nimiq 5 is now accounted for as a finance lease. |
Leases (Tables)_2
Leases (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Leases | ||
Summary of the components of lease expense | For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Operating lease cost $ 61,808 $ 81,762 $ 123,523 $ 162,048 Short-term lease cost (1) 3,733 12,141 6,400 31,426 Finance lease cost: Amortization of right-of-use assets 12,300 3,805 24,748 9,913 Interest on lease liabilities 4,534 1,099 9,332 2,280 Total finance lease cost 16,834 4,904 34,080 12,193 Total lease costs $ 82,375 $ 98,807 $ 164,003 $ 205,667 (2) Leases that have terms of 12 months or less . | For the Year Ended December 31, 2019 (In thousands) Operating lease cost $ 297,181 Short-term lease cost (1) 37,686 Finance lease cost: Amortization of right-of-use assets 29,134 Interest on lease liabilities 9,826 Total finance lease cost 38,960 Total lease costs $ 373,827 (1) Leases that have terms of 12 months or less. |
Summary of Supplemental cash flow information related to leases | For the Six Months Ended June 30, 2020 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 123,811 $ 164,159 Operating cash flows from finance leases $ 9,332 $ 2,295 Financing cash flows from finance leases $ 23,227 $ 10,454 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 17,967 $ 61,872 Finance leases $ — $ — Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 $ 730,180 | For the Year Ended December 31, 2019 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 301,524 Operating cash flows from finance leases $ 9,826 Financing cash flows from finance leases $ 31,841 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 81,198 Finance leases $ 175,311 Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 $ 730,180 |
Summary of supplemental balance sheet information related to leases | As of June 30, 2020 December 31, 2019 (In thousands) Operating Leases: Operating lease assets $ 471,987 $ 553,576 Other current liabilities $ 204,138 $ 202,972 Operating lease liabilities 267,154 350,155 Total operating lease liabilities $ 471,292 $ 553,127 Finance Leases: Property and equipment, gross $ 398,875 $ 399,764 Accumulated depreciation (226,325) (201,873) Property and equipment, net $ 172,550 $ 197,891 Other current liabilities $ 50,860 $ 48,678 Other long-term liabilities 137,949 163,939 Total finance lease liabilities $ 188,809 $ 212,617 Weighted Average Remaining Lease Term: Operating leases 3.1 years 3.4 years Finance leases 3.8 years 4.2 years Weighted Average Discount Rate: Operating leases 9.0% 9.1% Finance leases 9.5% 9.5% | As of December 31, 2019 (In thousands) Operating Leases: Operating lease right-of-use assets $ 553,576 Other current liabilities $ 202,972 Operating lease liabilities 350,155 Total operating lease liabilities $ 553,127 Finance Leases: Property and equipment, gross $ 399,764 Accumulated depreciation (201,873) Property and equipment, net $ 197,891 Other current liabilities $ 48,678 Other long-term liabilities 163,939 Total finance lease liabilities $ 212,617 Weighted Average Remaining Lease Term: Operating leases 3.4 years Finance leases 4.2 years Weighted Average Discount Rate: Operating leases 9.1% Finance leases 9.5% |
Summary of maturities of operating lease liabilities | Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2020 (remaining six months) $ 121,315 $ 33,139 $ 154,454 2021 205,137 66,279 271,416 2022 132,452 50,226 182,678 2023 27,439 42,862 70,301 2024 11,376 32,147 43,523 Thereafter 42,414 — 42,414 Total lease payments 540,133 224,653 764,786 Less: Imputed interest (68,841) (35,844) (104,685) Total 471,292 188,809 660,101 Less: Current portion (204,138) (50,860) (254,998) Long-term portion of lease obligations $ 267,154 $ 137,949 $ 405,103 | Maturities of lease liabilities as of December 31, 2019 were as follows: Maturities of Lease Liabilities Operating Finance For the Years Ending December 31, Leases Leases Total (In thousands) 2020 $ 239,660 $ 66,285 $ 305,945 2021 199,062 66,279 265,341 2022 127,300 50,227 177,527 2023 24,571 42,862 67,433 2024 9,191 32,147 41,338 Thereafter 42,008 42,008 Total lease payments 641,792 257,800 899,592 Less: Imputed interest (88,665) (45,183) (133,848) Total 553,127 212,617 765,744 Less: Current portion (202,972) (48,678) (251,650) Long-term portion of lease obligations $ 350,155 $ 163,939 $ 514,094 |
Long-Term Debt and Finance Le_5
Long-Term Debt and Finance Lease Obligations (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Long-Term Debt and Finance Lease Obligations | ||
Schedule of carrying and fair values of the entity's debt facilities | As of June 30, 2020 December 31, 2019 Carrying Fair Value Carrying Fair Value (In thousands) 5 1/8% Senior Notes due 2020 (1) $ — $ — $ 1,100,000 $ 1,110,208 6 3/4% Senior Notes due 2021 (2) 2,000,000 2,045,100 2,000,000 2,109,420 5 7/8% Senior Notes due 2022 2,000,000 2,043,040 2,000,000 2,129,580 5 % Senior Notes due 2023 1,500,000 1,495,545 1,500,000 1,543,770 5 7/8% Senior Notes due 2024 2,000,000 2,000,340 2,000,000 2,049,080 7 3/4% Senior Notes due 2026 2,000,000 2,130,880 2,000,000 2,128,900 Other notes payable 25,996 25,996 25,996 25,996 Subtotal 9,525,996 $ 9,740,901 10,625,996 $ 11,096,954 Unamortized deferred financing costs and debt discounts, net (13,581) (16,250) Finance lease obligations (3) 188,809 212,617 Total long-term debt and finance lease obligations (including current portion) $ 9,701,224 $ 10,822,363 (4) On May 1, 2020, we redeemed the principal balance of our 5 1/8% Senior Notes due 2020. (5) Our 6 3/4% Senior Notes due 2021 mature on June 1, 2021 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Condensed Consolidated Balance Sheets as of June 30, 2020. (6) Disclosure regarding fair value of finance leases is not required. | As of December 31, 2019 2018 Carrying Fair Value Carrying Fair Value (In thousands) 7 7/8% Senior Notes due 2019 (1) — — 1,317,372 1,343,298 5 1/8% Senior Notes due 2020 (2) 1,100,000 1,110,208 1,100,000 1,089,957 6 3/4% Senior Notes due 2021 2,000,000 2,109,420 2,000,000 1,974,940 5 7/8% Senior Notes due 2022 2,000,000 2,129,580 2,000,000 1,833,140 5 % Senior Notes due 2023 1,500,000 1,543,770 1,500,000 1,247,445 5 7/8% Senior Notes due 2024 2,000,000 2,049,080 2,000,000 1,611,960 7 3/4% Senior Notes due 2026 2,000,000 2,128,900 2,000,000 1,653,720 Other notes payable 25,996 25,996 10,346 10,346 Subtotal 10,625,996 $ 11,096,954 11,927,718 $ 10,764,806 Unamortized deferred financing costs and debt discounts, net (16,250) (23,215) Finance lease obligations (3) 212,617 66,984 Total long-term debt and finance lease obligations (including current portion) $ 10,822,363 $ 11,971,487 (1) On September 3, 2019, we redeemed the principal balance of our 7 7/8% Senior Notes due 2019. (2) Our 5 1/8% Senior Notes due 2020 mature on May 1, 2020 and have been reclassified to “Current portion of long-term debt and finance lease obligations” on our Consolidated Balance Sheets as of December 31, 2019. We will either fund this obligation from cash and marketable investment securities balances at that time and/or advances from our parent, DISH Network or, depending on market conditions, we may refinance this obligation, in whole or in part. (3) Disclosure regarding fair value of finance leases is not required. |
Disaggregation of Revenue (Ta_2
Disaggregation of Revenue (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue | ||
Revenue by geographic region | For the Three Months Ended For the Six Months Ended June 30, June 30, Revenue: 2020 2019 2020 2019 (In thousands) United States $ 3,144,992 $ 3,155,828 $ 6,302,296 $ 6,282,937 Canada and Mexico 3,539 10,771 14,017 21,662 Total revenue $ 3,148,531 $ 3,166,599 $ 6,316,313 $ 6,304,599 | For the Years Ended December 31, Revenue: 2019 2018 2017 (In thousands) United States $ 12,581,855 $ 13,319,091 $ 13,967,694 Canada and Mexico 41,038 43,048 39,817 Total revenue $ 12,622,893 $ 13,362,139 $ 14,007,511 |
Schedule of disaggregation of revenue | For the Three Months Ended For the Six Months Ended June 30, June 30, Category: 2020 2019 2020 2019 (In thousands) Pay-TV video and related revenue $ 3,117,334 $ 3,117,066 $ 6,248,234 $ 6,215,002 Equipment sales and other revenue 31,197 49,533 68,079 89,597 Total $ 3,148,531 $ 3,166,599 $ 6,316,313 $ 6,304,599 | For the Years Ended December 31, Category: 2019 2018 2017 (In thousands) Pay-TV video and related revenue $ 12,436,637 $ 13,197,994 $ 13,877,196 Equipment sales and other revenue 186,256 164,145 130,315 Total $ 12,622,893 $ 13,362,139 $ 14,007,511 |
Contract Balances (Tables)_2
Contract Balances (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Contract Balances | ||
Valuation and Qualifying Accounts | Allowance for credit losses Balance at Beginning of Period Current Period Provision for Expected Credit Losses Write-offs Charged Against Allowance Balance at End of Period (In thousands) For the six months ended June 30, 2020 $ 19,280 $ 51,808 $ (29,900) $ 41,188 | Allowance for doubtful accounts Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year (In thousands) For the years ended: December 31, 2019 $ 16,956 $ 69,866 $ (67,542) $ 19,280 December 31, 2018 $ 15,056 $ 98,461 $ (96,561) $ 16,956 December 31, 2017 $ 17,440 $ 124,143 $ (126,527) $ 15,056 |
Schedule of Contract balances | Contract Liabilities (In thousands) Balance as of December 31, 2019 $ 609,054 Recognition of unearned revenue (2,951,822) Deferral of revenue 2,925,648 Balance as of June 30, 2020 $ 582,880 | Contract Liabilities (In thousands) Balance as of December 31, 2018 $ 624,626 Recognition of unearned revenue (7,086,252) Deferral of revenue 7,070,680 Balance as of December 31, 2019 $ 609,054 |
Related Party Transactions (T_2
Related Party Transactions (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Schedule of related party transaction | For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Purchases (including fees): Purchases from NagraStar $ 13,259 $ 14,355 $ 27,351 $ 28,714 As of June 30, December 31, 2020 2019 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 17,930 $ 9,630 Commitments to NagraStar $ 4,159 $ 4,893 | For the Years Ended December 31, 2019 2018 2017 (In thousands) Purchases (including fees): Purchases from NagraStar $ 56,284 $ 72,162 $ 71,167 As of December 31, 2019 2018 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ 9,630 $ 9,871 Commitments to NagraStar $ 4,893 $ 3,888 |
Dish Mexico | ||
Schedule of related party transaction | For the Three Months Ended For the Six Months Ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Sales: Uplink services $ 1,288 $ 1,412 $ 2,669 $ 2,816 Total $ 1,288 $ 1,412 $ 2,669 $ 2,816 As of June 30, December 31, 2020 2019 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 2,116 $ 1,191 | For the Years Ended December 31, 2019 2018 2017 (In thousands) Sales: Digital receivers and related components $ — $ 1,227 $ 1,891 Uplink services 5,620 5,426 3,994 Total $ 5,620 $ 6,653 $ 5,885 As of December 31, 2019 2018 (In thousands) Amounts Receivable: Amounts receivable from Dish Mexico $ 1,191 $ 1,370 |
Organization and Business Act_4
Organization and Business Activities (Details) - customer customer in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Pay TV Subscribers | ||
Organization and Business Activities | ||
Number of subscribers | 11,272 | 11,986 |
DISH TV subscribers | ||
Organization and Business Activities | ||
Number of subscribers | 9,017 | 9,394 |
Sling TV subscribers | ||
Organization and Business Activities | ||
Number of subscribers | 2,255 | 2,592 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of Significant Accounting Policies | ||||||
Contract cost capitalized during the period | $ 44 | $ 55 | $ 82 | $ 92 | $ 207 | $ 183 |
Amortization expense related to the programs | 29 | $ 17 | 56 | $ 31 | 76 | 28 |
Total costs capitalized | $ 326 | $ 326 | $ 300 | $ 169 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Leases (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Leases | ||
Renewal options, operating lease | true | true |
Renewal options, finance lease | true | true |
Options to terminate, operating lease | true | true |
Options to terminate, finance lease | true | true |
Minimum | ||
Leases | ||
Remaining lease terms, operating lease | 1 year | 1 year |
Remaining lease terms, finance lease | 1 year | 1 year |
Maximum | ||
Leases | ||
Remaining lease terms, operating lease | 12 years | 12 years |
Remaining lease terms, finance lease | 12 years | 8 years |
Termination period, operating lease | 1 year | 1 year |
Termination period, finance lease | 1 year | 1 year |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Principles of Consolidation and Research and Development (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Research and Development | |||||||
Research and development costs | $ 5 | $ 6 | $ 11 | $ 11 | $ 21 | $ 24 | $ 33 |
Minimum | |||||||
Property and Equipment | |||||||
Useful life of property and equipment | 2 years | ||||||
Maximum | |||||||
Property and Equipment | |||||||
Useful life of property and equipment | 40 years | ||||||
Revenue Recognition | |||||||
Period of deferral for the portion of subscriber fees that are deferred | 1 year | 1 year |
Supplemental Data - Statement_6
Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Data - Statements of Cash Flows | |||||
Cash paid for interest | $ 329,923 | $ 382,391 | $ 765,510 | $ 793,506 | $ 878,772 |
Cash received for interest | 1,962 | 8,528 | 30,041 | 6,043 | 9,855 |
Cash paid for income taxes | 3,205 | 8,845 | 19,485 | 18,683 | 29,961 |
Cash paid for income taxes to DISH Network | $ 176,964 | 152,526 | 245,028 | 302,329 | 408,265 |
Capitalized interest | 440 | $ 440 | $ 1,071 | $ 481 | |
Reclassification of a receivable from noncurrent to current | $ 138,210 |
Marketable Investment Securit_9
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2017 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | ||||
Total current marketable investment securities | $ 31 | $ 149,740 | ||
Restricted marketable investment securities(1) | $ 390 | 67,019 | ||
Total marketable investment securities | 31 | 390 | 216,759 | |
Restricted cash and cash equivalents (1) | 61,349 | 60,677 | 578 | |
Other investment securities | 96,886 | 106,874 | 108,308 | |
Total other investment securities | 96,886 | 106,874 | 108,308 | |
Total marketable investment securities, restricted cash and cash equivalents, and other investment securities | $ 158,266 | $ 167,941 | $ 325,645 | |
Maximum maturities of commercial paper | 365 days | 365 days | ||
Maximum maturities of corporate securities | 18 months | 18 months | ||
NagraStar L.L.C | ||||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | ||||
Ownership interest in equity method investment | 50.00% |
Marketable Investment Securi_10
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value of marketable securities | |||
Debt securities | $ 390 | $ 214,389 | |
Total marketable investment securities | $ 31 | 390 | 216,759 |
U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | 390 | 66,823 | |
Commercial paper | |||
Fair value of marketable securities | |||
Debt securities | 45,938 | ||
Fair value measurements on recurring basis | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 63,344 | 60,677 | 114,464 |
Total marketable investment securities | 31 | 390 | 216,759 |
Fair value measurements on recurring basis | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | 390 | 66,823 | |
Fair value measurements on recurring basis | Commercial paper | |||
Fair value of marketable securities | |||
Debt securities | 31 | 45,938 | |
Fair value measurements on recurring basis | Level 1 | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 62,740 | 60,677 | 12,493 |
Total marketable investment securities | 390 | 69,193 | |
Fair value measurements on recurring basis | Level 1 | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | $ 390 | 66,823 | |
Fair value measurements on recurring basis | Level 2 | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 604 | 101,971 | |
Total marketable investment securities | 31 | 147,566 | |
Fair value measurements on recurring basis | Level 2 | Commercial paper | |||
Fair value of marketable securities | |||
Debt securities | $ 31 | $ 45,938 |
Marketable Investment Securi_11
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Gains And Losses On Sales And Changes In Carrying Amounts Of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | |||||||
Marketable investment securities - realized and unrealized gains (losses) | $ 829 | $ 3,599 | $ 3,119 | $ 5,313 | $ 87,020 | ||
Costs related to early redemption of debt | (439) | (3,261) | (1,470) | ||||
Equity in earnings of affiliates | $ (399) | 2,297 | $ (121) | 1,353 | 3,514 | (2,110) | 2,163 |
Other | 247 | 5 | 914 | 51 | 976 | 2,048 | 798 |
Total | $ (152) | $ 3,131 | $ 793 | $ 4,564 | $ 7,609 | $ 8,994 | $ 88,511 |
Inventory (Details)_2
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory | |||
Finished goods | $ 249,605 | $ 254,240 | $ 215,150 |
Work-in-process and service repairs | 34,245 | 34,120 | 56,871 |
Raw materials | 17,558 | 33,623 | 18,676 |
Total inventory | $ 301,408 | $ 321,983 | $ 290,697 |
Property and Equipment (Detai_2
Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property and Equipment | |||
Total property and equipment | $ 5,171,638 | $ 5,191,840 | $ 4,928,675 |
Accumulated depreciation | (3,509,710) | (3,440,267) | (3,550,726) |
Property and equipment, net | 1,661,928 | $ 1,751,573 | 1,377,949 |
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 | $ 1,779,445 | $ 1,837,503 | 1,980,808 |
Equipment leased to customers | Minimum | |||
Property and Equipment | |||
Depreciable life of assets | 2 years | 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 | 277,658 |
Depreciable life of assets | 15 years | 15 years | |
EchoStar XVIII | |||
Property and Equipment | |||
Total property and equipment | $ 411,255 | $ 411,255 | |
Depreciable life of assets | 15 years | 15 years | |
Satellites acquired under finance lease agreements | |||
Property and Equipment | |||
Total property and equipment | $ 398,107 | $ 398,107 | 499,819 |
Depreciable life of assets | 15 years | 15 years | |
Furniture, fixtures, equipment and other | |||
Property and Equipment | |||
Total property and equipment | $ 1,934,783 | $ 1,894,629 | 1,820,883 |
Furniture, fixtures, equipment and other | Minimum | |||
Property and Equipment | |||
Depreciable life of assets | 2 years | 2 years | |
Furniture, fixtures, equipment and other | Maximum | |||
Property and Equipment | |||
Depreciable life of assets | 20 years | ||
Buildings and improvements | |||
Property and Equipment | |||
Total property and equipment | $ 294,342 | $ 289,421 | 289,244 |
Buildings and improvements | Minimum | |||
Property and Equipment | |||
Depreciable life of assets | 5 years | 5 years | |
Buildings and improvements | Maximum | |||
Property and Equipment | |||
Depreciable life of assets | 40 years | ||
Land | |||
Property and Equipment | |||
Total property and equipment | $ 13,186 | $ 13,186 | 13,186 |
Construction in progress | |||
Property and Equipment | |||
Total property and equipment | $ 62,862 | $ 70,081 | $ 47,077 |
Property and Equipment - Narr_2
Property and Equipment - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020USD ($)item | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)item | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | $ 122,869 | $ 135,600 | $ 257,954 | $ 290,715 | $ 577,348 | $ 660,460 | $ 741,772 |
Equipment leased to customers | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | 69,489 | 86,453 | 149,171 | 194,589 | 370,867 | 437,342 | 539,434 |
Satellites | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | 23,796 | 12,920 | 47,593 | 23,575 | 65,441 | 61,045 | 61,045 |
Buildings, furniture, fixtures, equipment and other | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | $ 29,584 | $ 36,227 | $ 61,190 | $ 72,551 | $ 141,040 | $ 162,073 | $ 141,293 |
Pay-TV Satellites | |||||||
Depreciation and amortization expense | |||||||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 11 | 11 | |||||
Owned Satellites | 2 | 2 | 2 | ||||
Number of satellites utilized under operating lease | 6 | ||||||
Number of satellites leased from third parties | 2 | ||||||
EchoStar | Pay-TV Satellites | |||||||
Depreciation and amortization expense | |||||||
Number of satellites utilized under operating lease | 1 | ||||||
Dish Network | Pay-TV Satellites | |||||||
Depreciation and amortization expense | |||||||
Number of satellites utilized under operating lease | 6 |
Property and Equipment - Pay _2
Property and Equipment - Pay TV Satellites (Details) $ in Millions | May 14, 2019USD ($) | May 14, 2019USD ($) |
Property and Equipment | ||
Satellite transaction cost basis | $ 320 | $ 320 |
Net carrying value of licenses | 26 | 26 |
Capital transaction | 267 | 267 |
EchoStar XVIII | ||
Property and Equipment | ||
Satelite in orbit incentive obligation | $ 18 | $ 18 |
Leases (Details)_2
Leases (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Leases | ||
Short Term Lease Period | 12 months | |
Renewal options, operating lease | true | true |
Renewal options, finance lease | true | true |
Options to terminate, operating lease | true | true |
Options to terminate, finance lease | true | true |
Minimum | ||
Leases | ||
Remaining lease terms, operating lease | 1 year | 1 year |
Remaining lease terms, finance lease | 1 year | 1 year |
Maximum | ||
Leases | ||
Remaining lease terms, operating lease | 12 years | 12 years |
Short Term Lease Period | 12 months | |
Remaining lease terms, finance lease | 12 years | 8 years |
Termination period, operating lease | 1 year | 1 year |
Termination period, finance lease | 1 year | 1 year |
Leases - Components of lease _2
Leases - Components of lease expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases | |||||
Operating lease cost | $ 61,808 | $ 81,762 | $ 123,523 | $ 162,048 | $ 297,181 |
Short-term lease cost | 3,733 | 12,141 | 6,400 | 31,426 | 37,686 |
Amortization of right-of-use assets | 12,300 | 3,805 | 24,748 | 9,913 | 29,134 |
Interest on lease liabilities | 4,534 | 1,099 | 9,332 | 2,280 | 9,826 |
Total finance lease cost | 16,834 | 4,904 | 34,080 | 12,193 | 38,960 |
Total lease costs | $ 82,375 | $ 98,807 | $ 164,003 | $ 205,667 | $ 373,827 |
Leases - Supplemental cash fl_2
Leases - Supplemental cash flow information (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Leases | |||
Operating cash flows from operating leases | $ 123,811 | $ 164,159 | $ 301,524 |
Operating cash flows from finance leases | 9,332 | 2,295 | 9,826 |
Financing cash flows from finance leases | 23,227 | 10,454 | 31,841 |
Operating leases | $ 17,967 | 61,872 | 81,198 |
Right-of-use assets and liabilities recognized at January 1, 2019 upon adoption of ASC 842 | $ 730,180 | $ 730,180 |
Leases - Supplemental balance_2
Leases - Supplemental balance sheet information (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Leases | |||
Operating lease assets | $ 471,987 | $ 553,576 | |
Other current liabilities | 204,138 | 202,972 | |
Operating lease liabilities | 267,154 | 350,155 | |
Total operating lease liabilities | 471,292 | 553,127 | |
Property and equipment, gross | 5,171,638 | 5,191,840 | $ 4,928,675 |
Accumulated depreciation | (3,509,710) | (3,440,267) | (3,550,726) |
Property and equipment, net | 1,661,928 | 1,751,573 | 1,377,949 |
Other current liabilities | 50,860 | 48,678 | |
Other long-term liabilities | 137,949 | 163,939 | |
Total finance lease liabilities | $ 188,809 | $ 212,617 | $ 66,984 |
Weighted Average Remaining Lease Term: Operating leases | 3 years 1 month 6 days | 3 years 4 months 24 days | |
Weighted Average Remaining Lease Term: Finance leases | 3 years 9 months 18 days | 4 years 2 months 12 days | |
Weighted Average Discount Rate: Operating leases | 9.00% | 9.10% | |
Weighted Average Discount Rate: Finance leases | 9.50% | 9.50% | |
Property and equipment [Member] | |||
Leases | |||
Property and equipment, gross | $ 398,875 | $ 399,764 | |
Accumulated depreciation | (226,325) | (201,873) | |
Property and equipment, net | $ 172,550 | $ 197,891 |
Leases - Maturities of lease _2
Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities of lease liabilities: Operating lease | |||
2020 (remaining nine months) | $ 121,315 | ||
2021 | 205,137 | $ 199,062 | |
2022 | 132,452 | 127,300 | |
2023 | 27,439 | 24,571 | |
2024 | 11,376 | 9,191 | |
Thereafter | 42,414 | 42,008 | |
Total lease payments | 540,133 | 641,792 | |
Less: Imputed interest | (68,841) | (88,665) | |
Total operating lease liabilities | 471,292 | 553,127 | |
Less: Current portion | (204,138) | (202,972) | |
Operating lease liabilities | 267,154 | 350,155 | |
Maturities of lease liabilities: Finance lease | |||
2020 (remaining nine months) | 33,139 | ||
2021 | 66,279 | 66,279 | |
2022 | 50,226 | 50,227 | |
2023 | 42,862 | 42,862 | |
2024 | 32,147 | 32,147 | |
Total lease payments | 224,653 | 257,800 | |
Less: Imputed interest | (35,844) | (45,183) | |
Total finance lease liabilities | 188,809 | 212,617 | $ 66,984 |
Less: Current portion | (50,860) | (48,678) | |
Long-term portion of lease obligations | 137,949 | 163,939 | |
Future minimum payments for total lease liabilities | |||
2020 (remaining nine months) | 154,454 | ||
2021 | 271,416 | 265,341 | |
2022 | 182,678 | 177,527 | |
2023 | 70,301 | 67,433 | |
2024 | 43,523 | 41,338 | |
Thereafter | 42,414 | 42,008 | |
Total lease payments | 764,786 | 899,592 | |
Less: Imputed interest | (104,685) | (133,848) | |
Total | 660,101 | 765,744 | |
Less: Current portion | (254,998) | (251,650) | |
Long-term portion of lease obligations | $ 405,103 | $ 514,094 |
Long-Term Debt and Finance Le_6
Long-Term Debt and Finance Lease Obligations - Long term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2018 | Jun. 13, 2016 | Nov. 20, 2014 | Apr. 05, 2013 | Dec. 27, 2012 | Jul. 26, 2012 | May 16, 2012 | May 05, 2011 | |
Long-term debt | ||||||||||
Carrying Amount | $ 10,625,996 | $ 9,525,996 | $ 11,927,718 | |||||||
Fair Value | 11,096,954 | 9,740,901 | 10,764,806 | |||||||
Unamortized deferred financing costs and debt discounts, net | (16,250) | (13,581) | (23,215) | |||||||
Finance lease obligations | 212,617 | 188,809 | 66,984 | |||||||
Total long-term debt and finance lease obligations (including current portion) | $ 10,822,363 | $ 9,701,224 | 11,971,487 | |||||||
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101.00% | |||||||||
5 1/8% Senior Notes due 2020 | ||||||||||
Long-term debt | ||||||||||
Carrying Amount | $ 1,100,000 | 1,100,000 | ||||||||
Fair Value | $ 1,110,208 | $ 1,089,957 | ||||||||
Interest rate (as a percent) | 5.125% | 5.125% | 5.125% | |||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||
Aggregate principal amount | $ 1,100,000 | |||||||||
6 3/4% Senior Notes due 2021 | ||||||||||
Long-term debt | ||||||||||
Carrying Amount | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||
Fair Value | $ 2,109,420 | $ 2,045,100 | $ 1,974,940 | |||||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | 6.75% | ||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||
Aggregate principal amount | $ 2,000,000 | |||||||||
5 7/8% Senior Notes due 2022 | ||||||||||
Long-term debt | ||||||||||
Carrying Amount | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||
Fair Value | $ 2,129,580 | $ 2,043,040 | $ 1,833,140 | |||||||
Interest rate (as a percent) | 5.875% | 5.875% | 5.875% | 5.875% | ||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||
Aggregate principal amount | $ 1,000,000 | $ 1,000,000 | ||||||||
5% Senior Notes due 2023 | ||||||||||
Long-term debt | ||||||||||
Carrying Amount | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 | |||||||
Fair Value | $ 1,543,770 | $ 1,495,545 | $ 1,247,445 | |||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | ||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||
Aggregate principal amount | $ 1,500,000 | |||||||||
5 7/8% Senior Notes due 2024 | ||||||||||
Long-term debt | ||||||||||
Carrying Amount | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||
Fair Value | $ 2,049,080 | $ 2,000,340 | $ 1,611,960 | |||||||
Interest rate (as a percent) | 5.875% | 5.875% | 5.875% | |||||||
Redemption price as a percentage of principal amount | 100.00% | |||||||||
Aggregate principal amount | $ 2,000,000 | |||||||||
7 3/4% Senior Notes due 2026 | ||||||||||
Long-term debt | ||||||||||
Carrying Amount | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||
Fair Value | $ 2,128,900 | $ 2,130,880 | $ 1,653,720 | |||||||
Interest rate (as a percent) | 7.75% | 7.75% | 7.75% | |||||||
Aggregate principal amount | $ 2,000,000 | |||||||||
Other notes payable | ||||||||||
Long-term debt | ||||||||||
Carrying Amount | $ 25,996 | $ 25,996 | $ 10,346 | |||||||
Fair Value | $ 25,996 | $ 25,996 | $ 10,346 |
Commitments and Contingencies_5
Commitments and Contingencies - Narrative (Details) | Jul. 26, 2019USD ($) | Jun. 05, 2017USD ($) | May 22, 2017USD ($) | Sep. 23, 2016USD ($) | Dec. 12, 2014claim | Dec. 23, 2013USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2015USD ($) |
Commitments and Contingencies | ||||||||||||
Term barred from conducting any outbound telemarketing | 2 years | |||||||||||
Other accrued expenses | ||||||||||||
Commitments and Contingencies | ||||||||||||
Claim amount | $ 1,200 | |||||||||||
Spectrum Investments | Maximum | ||||||||||||
Commitments and Contingencies | ||||||||||||
Phase one expected expenditures | $ 500,000,000 | |||||||||||
Spectrum Investments | Minimum | ||||||||||||
Commitments and Contingencies | ||||||||||||
Phase one expected expenditures | 250,000,000 | |||||||||||
NTM | ||||||||||||
Commitments and Contingencies | ||||||||||||
Purchase price | $ 1,400,000,000 | |||||||||||
Prepaid Business Sale [Member] | ||||||||||||
Commitments and Contingencies | ||||||||||||
Payment to acquire certain wireless licenses and related assets | 3,590,000,000 | $ 3,590,000,000 | ||||||||||
Dish Network | ||||||||||||
Commitments and Contingencies | ||||||||||||
Payment to acquire certain wireless licenses and related assets | 11,000,000,000 | $ 11,000,000,000 | $ 11,000,000,000 | $ 11,000,000,000 | ||||||||
Dish Network | Maximum | ||||||||||||
Commitments and Contingencies | ||||||||||||
Phase one expected expenditures | 500,000,000 | |||||||||||
Dish Network | Minimum | ||||||||||||
Commitments and Contingencies | ||||||||||||
Phase one expected expenditures | 250,000,000 | |||||||||||
Dish Network | Spectrum Investments | ||||||||||||
Commitments and Contingencies | ||||||||||||
5G Network deployment | 10,000,000,000 | |||||||||||
Northstar Spectrum And SNR Holdco | ||||||||||||
Commitments and Contingencies | ||||||||||||
Non-controlling investments | 10,000,000,000 | 10,000,000,000 | $ 10,000,000,000 | |||||||||
Northstar Spectrum And SNR Holdco | DISH Network L.L.C. | ||||||||||||
Commitments and Contingencies | ||||||||||||
Non-controlling investments | 10,000,000,000 | 10,000,000,000 | ||||||||||
Northstar Spectrum And SNR Holdco | Dish Network | ||||||||||||
Commitments and Contingencies | ||||||||||||
Non-controlling investments | $ 10,000,000,000 | $ 10,000,000,000 | 10,000,000,000 | 10,000,000,000 | ||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | ||||||||||||
Commitments and Contingencies | ||||||||||||
Bidding credit credits | 25.00% | |||||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | Maximum | ||||||||||||
Commitments and Contingencies | ||||||||||||
Claim amount | $ 11,000 | |||||||||||
Northstar Wireless or Northstar Spectrum | AWS 3 Auction | Vermont National Telephone Company | Minimum | ||||||||||||
Commitments and Contingencies | ||||||||||||
Claim amount | $ 5,500 | |||||||||||
Krakauer Action | ||||||||||||
Commitments and Contingencies | ||||||||||||
Claim amount | 10,760,000 | |||||||||||
Krakauer Action | Other accrued expenses | ||||||||||||
Commitments and Contingencies | ||||||||||||
Loss Contingency Accrual | 61,000,000 | |||||||||||
Telemarketing Litigation | ||||||||||||
Commitments and Contingencies | ||||||||||||
Demonstration requirements period | 5 years | |||||||||||
Loss Contingency Accrual | $ 280,000,000 | |||||||||||
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services | 5 years | 5 years | ||||||||||
Telemarketing Litigation | DISH Network L.L.C. | ||||||||||||
Commitments and Contingencies | ||||||||||||
Claim amount | $ 270,000,000 | $ 270,000,000 | ||||||||||
Number of claims | claim | 1 | |||||||||||
Number of claims by plaintiff | claim | 10 | |||||||||||
Telemarketing Litigation | Other accrued expenses | ||||||||||||
Commitments and Contingencies | ||||||||||||
Loss Contingency Accrual | $ 280,000,000 | 280,000,000 | $ 280,000,000 | 280,000,000 | 280,000,000 | |||||||
ClearPlay, Inc. | ||||||||||||
Commitments and Contingencies | ||||||||||||
Loss contingency | $ 543,000,000 | $ 543,000,000 | $ 543,000,000 | $ 543,000,000 |
Commitments and Contingencies_6
Commitments and Contingencies - Narrative Part 2 (Details) | Sep. 27, 2019USD ($) | Apr. 05, 2018USD ($) | Oct. 06, 2017USD ($) | Jun. 05, 2017USD ($) | May 22, 2017USD ($) | Jan. 19, 2017USD ($)item | Sep. 23, 2016USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Oct. 01, 2018USD ($) | Jul. 03, 2017item |
Loss contingencies | ||||||||||||||||||
Total investment | $ 90,381,000 | |||||||||||||||||
Interest on loss contingency | $ 24,000,000 | |||||||||||||||||
Incremental loss contingency | $ 206,000,000 | $ 206,000,000 | $ 206,000,000 | |||||||||||||||
General and administrative expenses | 156,574,000 | $ 187,930,000 | 341,498,000 | $ 374,507,000 | $ 732,589,000 | $ 692,881,000 | $ 669,934,000 | |||||||||||
Dish Network | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Total investment | $ 21,000,000,000 | $ 21,000,000,000 | ||||||||||||||||
Payment to acquire certain wireless licenses and related assets | $ 11,000,000,000 | 11,000,000,000 | 11,000,000,000 | 11,000,000,000 | ||||||||||||||
Other accrued expenses | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Claim amount | $ 1,200 | |||||||||||||||||
Telemarketing Litigation | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services | 5 years | 5 years | ||||||||||||||||
Number of years for which the company will be barred from accepting orders from that independent third-party retailer if the company fails to prove that a particular independent third-party retailer meets the Demonstration Requirements | 2 years | |||||||||||||||||
Number of motions filed with court | item | 2 | |||||||||||||||||
Litigation accrual | $ 280,000,000 | |||||||||||||||||
Telemarketing Litigation | Other accrued expenses | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Litigation accrual | $ 280,000,000 | $ 280,000,000 | $ 280,000,000 | 280,000,000 | $ 280,000,000 | $ 280,000,000 | ||||||||||||
Krakauer Action | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Claim amount | 10,760,000 | |||||||||||||||||
Krakauer Action | Other accrued expenses | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Litigation accrual | $ 61,000,000 | |||||||||||||||||
Do Not Call Litigation | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Number of telemarketing calls | item | 51,119 | |||||||||||||||||
Litigation per call damages | $ 400 | |||||||||||||||||
Turner Network Sales | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Claim amount | $ 159,000,000 | |||||||||||||||||
Interest on loss contingency | $ 30,000,000 | $ 24,000,000 | ||||||||||||||||
Loss contingency | 118,000,000 | |||||||||||||||||
License fee payments | $ 20,000,000 | |||||||||||||||||
Telemarketing Litigation | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Judgment in favor of the court | $ 61,000,000 | |||||||||||||||||
AWS 3 Auction | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Bidding Credit | $ 3,300,000,000 | |||||||||||||||||
Loss Contingency Recovery Amount | 10,000,000,000 | |||||||||||||||||
AWS 3 Auction | Maximum | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Claim amount | 11,000 | |||||||||||||||||
AWS 3 Auction | Minimum | Northstar Wireless or Northstar Spectrum | Vermont National Telephone Company | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Claim amount | $ 5,500 | |||||||||||||||||
Prepaid Business Sale [Member] | ||||||||||||||||||
Loss contingencies | ||||||||||||||||||
Total investment | 1,400,000,000 | |||||||||||||||||
Payment to acquire certain wireless licenses and related assets | $ 3,590,000,000 | $ 3,590,000,000 |
Disaggregation of Revenue - R_3
Disaggregation of Revenue - Revenue by geographic location (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue | |||||||
Revenue | $ 3,148,531 | $ 3,166,599 | $ 6,316,313 | $ 6,304,599 | $ 12,622,893 | $ 13,362,139 | $ 14,007,511 |
United States | |||||||
Disaggregation of Revenue | |||||||
Revenue | 3,144,992 | 3,155,828 | 6,302,296 | 6,282,937 | 12,581,855 | 13,319,091 | 13,967,694 |
Canada and Mexico | |||||||
Disaggregation of Revenue | |||||||
Revenue | $ 3,539 | $ 10,771 | $ 14,017 | $ 21,662 | $ 41,038 | $ 43,048 | $ 39,817 |
Disaggregation of Revenue - R_4
Disaggregation of Revenue - Revenue from external customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue | |||||||
Revenue | $ 3,148,531 | $ 3,166,599 | $ 6,316,313 | $ 6,304,599 | $ 12,622,893 | $ 13,362,139 | $ 14,007,511 |
Pay-TV video and related revenue | |||||||
Disaggregation of Revenue | |||||||
Revenue | 3,117,334 | 3,117,066 | 6,248,234 | 6,215,002 | 12,436,637 | 13,197,994 | 13,877,196 |
Equipment sales and other revenue | |||||||
Disaggregation of Revenue | |||||||
Revenue | $ 31,197 | $ 49,533 | $ 68,079 | $ 89,597 | $ 186,256 | $ 164,145 | $ 130,315 |
Contract Balances (Details)_2
Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at Beginning of Period | $ 19,280 | $ 16,956 | $ 15,056 | $ 17,440 |
Current Period Provision For Expected Credit Losses | 51,808 | 69,866 | 98,461 | 124,143 |
Write-offs Charged Against Allowance | (29,900) | (67,542) | (96,561) | (126,527) |
Balance at End of Period | 41,188 | 19,280 | 16,956 | $ 15,056 |
Balance at Beginning of Period | 609,054 | 624,626 | ||
Recognition of unearned revenue | (2,951,822) | (7,086,252) | ||
Deferral of revenue | 2,925,648 | 7,070,680 | ||
Balance at End of Period | $ 582,880 | $ 609,054 | $ 624,626 | |
Remaining performance obligations | true | true |
Related Party Transactions (D_2
Related Party Transactions (Details) $ in Thousands | May 31, 2017 | Dec. 21, 2012 | Dec. 21, 2012 | Jan. 21, 2012 | Jan. 02, 2012item | Jan. 02, 2012 | May 31, 2017 | Jul. 31, 2016 | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2013item | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2009item | Dec. 31, 2008item |
Related Party Transaction [Line Items] | ||||||||||||||||||
Satellite and transmission expenses | $ | $ 117,912 | $ 144,983 | $ 239,973 | $ 299,880 | $ 555,803 | $ 637,160 | $ 717,231 | |||||||||||
EchoStar XVI | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Agreement Renewal Option Term | 5 years | 5 years | ||||||||||||||||
TT&C Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Purchase of renewal of agreement | 1 year | |||||||||||||||||
Number of automatic renewal period | 4 | |||||||||||||||||
Notice period for termination of agreement | 12 months | |||||||||||||||||
EchoStar | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Satellite and transmission expenses | $ | 1,000 | 72,000 | $ 1,000 | 143,000 | 198,000 | 309,000 | 346,000 | |||||||||||
EchoStar | EchoStar XVI | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Agreement term from commencement of service date | 4 years | 4 years | ||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||
Additional term of renewal option | 5 years | 5 years | 5 years | 5 years | 1 year | |||||||||||||
EchoStar | Telesat Transponder Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Agreement term | 15 years | |||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||
Agreement term with third party | 15 years | |||||||||||||||||
Number of DBS transponders available to receive services | 32 | |||||||||||||||||
EchoStar | DISH Nimiq 5 Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Agreement term | 10 years | |||||||||||||||||
Number of DBS transponders currently used | 32 | |||||||||||||||||
EchoStar | QuetzSat-1 Lease Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Agreement term with third party | 10 years | |||||||||||||||||
Number of DBS transponders available to receive services | 32 | |||||||||||||||||
Number of DBS transponders currently used | 24 | |||||||||||||||||
Number of transponders subleased | 5 | |||||||||||||||||
EchoStar | TT&C Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination by the reporting entity | 12 months | 12 months | ||||||||||||||||
Number of automatic renewal period | 4 | |||||||||||||||||
Dish Network | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Satellite and transmission expenses | $ | $ 56,000 | $ 8,000 | $ 112,000 | $ 25,000 | $ 93,000 | $ 67,000 | $ 67,000 |
Related Party Transactions - _5
Related Party Transactions - Narrative Part 1 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||||
Satellite and transmission expenses | $ 117,912 | $ 144,983 | $ 239,973 | $ 299,880 | $ 555,803 | $ 637,160 | $ 717,231 |
Trade accounts receivable | 514,086 | 514,086 | 568,679 | 623,602 | |||
Trade accounts payable | 338,109 | 338,109 | 266,417 | 217,268 | |||
Broadband, Wireless and Other Segments | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses associated with services | 18,000 | 14,000 | 39,000 | 26,000 | 54,000 | 40,000 | 48,000 |
Office Space from DISH Network | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses associated with services | 2,000 | 0 | |||||
EchoStar | |||||||
Related Party Transaction [Line Items] | |||||||
Satellite and transmission expenses | 1,000 | 72,000 | 1,000 | 143,000 | 198,000 | 309,000 | 346,000 |
Trade accounts receivable | 4,000 | 4,000 | 1,000 | 4,000 | |||
Trade accounts payable | 14,000 | 14,000 | 3,000 | 6,000 | |||
Equipment sales and other revenue | $ 1,000 | $ 1,000 | $ 2,000 | $ 3,000 | $ 6,000 | $ 8,000 | $ 3,000 |
Related Party Transactions - _6
Related Party Transactions - Narrative Part 2 (Details) $ in Thousands | Mar. 01, 2017item | Sep. 30, 2019 | Aug. 31, 2017item | Jan. 31, 2012item | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2012item | Dec. 31, 2009 |
Related Party Transaction [Line Items] | ||||||||||||||||||||
Subscriber acquisition costs | $ | $ 1,863,895 | $ 1,974,439 | $ 3,797,718 | $ 3,950,875 | $ 7,768,732 | $ 8,392,150 | $ 8,692,676 | |||||||||||||
Depreciation and amortization (Note 6) | $ | 122,869 | 135,600 | 257,954 | 290,715 | 577,348 | 660,460 | 741,772 | |||||||||||||
Interest expense, net of amounts capitalized | $ | 164,047 | 194,857 | 346,387 | 390,502 | 756,690 | 792,436 | 865,181 | |||||||||||||
Revenues | $ | 3,148,531 | $ 3,196,012 | $ 3,122,282 | 3,166,599 | $ 3,138,000 | $ 3,251,166 | $ 3,334,444 | $ 3,393,307 | $ 3,383,222 | 6,316,313 | 6,304,599 | 12,622,893 | 13,362,139 | 14,007,511 | ||||||
Subscriber-related | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Revenues | $ | 3,117,334 | 3,117,066 | $ 6,248,234 | 6,215,002 | $ 12,436,637 | $ 13,197,994 | $ 13,877,196 | |||||||||||||
100 Inverness Lease Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Required notice period for termination by the reporting entity | 180 days | |||||||||||||||||||
Nimiq 5 Agreement | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||||
Depreciation and amortization (Note 6) | $ | 8,000 | $ 17,000 | ||||||||||||||||||
Interest expense, net of amounts capitalized | $ | 4,000 | 8,000 | ||||||||||||||||||
Hughes Broadband Master Services Agreement [Member] | Subscriber-related | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Revenues | $ | $ 5,000 | $ 5,000 | $ 9,000 | $ 11,000 | ||||||||||||||||
EchoStar | El Paso Lease Agreement | Dish Network | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of consecutive three year renewal options | item | 4 | |||||||||||||||||||
Agreement Renewal Option Term | 3 years | |||||||||||||||||||
EchoStar | El Paso Lease Agreement | Dish Network | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of consecutive three year renewal options | item | 4 | |||||||||||||||||||
Agreement Renewal Option Term | 3 years | |||||||||||||||||||
EchoStar | Professional Services Agreement | Dish Network | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Agreement term | 1 year | |||||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||||
Minimum notice period for termination of agreement | 60 days | |||||||||||||||||||
EchoStar | 90 Inverness Lease Agreement | Dish Network | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of consecutive three year renewal options | item | 4 | |||||||||||||||||||
Agreement Renewal Option Term | 3 years | |||||||||||||||||||
EchoStar | 90 Inverness Lease Agreement | Dish Network | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of consecutive three year renewal options | item | 4 | |||||||||||||||||||
EchoStar | Cheyenne Lease Agreement | Dish Network | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of successive one year renewal options | item | 12 | |||||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||||
Required notice period for termination by the reporting entity | 180 days | |||||||||||||||||||
EchoStar | Cheyenne Lease Agreement | Dish Network | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of successive one year renewal options | item | 12 | |||||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||||
Required notice period for termination by the reporting entity | 180 days | |||||||||||||||||||
EchoStar | Gilbert Lease Agreement | Dish Network | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||||
EchoStar | Gilbert Lease Agreement | Dish Network | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of successive one year renewal options | item | 12 | |||||||||||||||||||
EchoStar | Collocation And Antenna Space Agreements | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Required notice period for termination by the reporting entity | 180 days | |||||||||||||||||||
HNS | Collocation And Antenna Space Agreements | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Agreement Renewal Option Term | 1 year | 3 years | ||||||||||||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | Minimum | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Required notice period for termination by the reporting entity | 90 days | |||||||||||||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | Maximum | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Required notice period for termination by the reporting entity | 120 days | |||||||||||||||||||
HNS | Collocation And Antenna Space Agreements | Dish Network | ||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||
Number of consecutive three year renewal options | item | 4 | |||||||||||||||||||
Agreement Renewal Option Term | 3 years |
Related Party Transactions - _7
Related Party Transactions - Narrative Part 3 (Details) - USD ($) $ in Thousands | Mar. 01, 2017 | Dec. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2009 |
Related Party Transaction [Line Items] | |||||||||||
General and administrative expenses | $ 156,574 | $ 187,930 | $ 341,498 | $ 374,507 | $ 732,589 | $ 692,881 | $ 669,934 | ||||
Meridian Lease Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Additional term of renewal option | 1 year | 1 year | |||||||||
Santa Fe Lease Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Additional term of renewal option | 1 year | 1 year | 1 year | ||||||||
EchoStar | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
General and administrative expenses | $ 3,000 | $ 6,000 | $ 7,000 | $ 11,000 | $ 20,000 | $ 21,000 | $ 29,000 | ||||
Dish Network | EchoStar | 90 Inverness Lease Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Agreement Renewal Option Term | 3 years | ||||||||||
Dish Network | EchoStar | Gilbert Lease Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||
Dish Network | EchoStar | American Fork Occupancy License Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Agreement Renewal Option Term | 5 years | ||||||||||
Dish Network | EchoStar | Professional Services Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Minimum notice period for termination of agreement | 60 days | ||||||||||
Minimum notice period for termination of a specific service | 30 days | ||||||||||
Agreement term | 1 year |
Related Party Transactions - _8
Related Party Transactions - Narrative Part 4 (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2011 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | ||||||||
Cost of sales - equipment and other | $ 23,660,000 | $ 49,603,000 | $ 54,474,000 | $ 89,944,000 | $ 172,700,000 | $ 143,671,000 | $ 95,116,000 | |
Office Space from DISH Network | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments to third party by related party | $ 4,000,000 | $ 0 | ||||||
EchoStar | Patent Cross-License Agreements | Maximum | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments to third party by related party | $ 10,000,000 | |||||||
Payments to third party by related party under extension option | 3,000,000 | |||||||
EchoStar | Patent Cross-License Agreements | Dish Network | Maximum | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments to third party by related party | 10,000,000 | |||||||
Payments to third party by related party under extension option | $ 3,000,000 |
Related Party Transactions - _9
Related Party Transactions - Part 5 (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2017 | Aug. 19, 2016 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | |
Related Party Transaction [Line Items] | ||||||||||
Sales | $ 1,288 | $ 1,412 | $ 2,669 | $ 2,816 | ||||||
Rovi License Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Agreement term | 10 years | |||||||||
Payments to Related Parties | 0 | $ 0 | ||||||||
Hughes Broadband Sales Agency Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Required notice period for termination by the reporting entity | 90 days | |||||||||
Agreement term | 5 years | |||||||||
Automatic renewal period | 1 year | |||||||||
Broadband equipment purchased from related party | 3,000 | 3,000 | 7,000 | 8,000 | $ 14,000 | $ 21,000 | $ 22,000 | |||
NagraStar | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest on equity method investment | 50.00% | 50.00% | ||||||||
Purchases from NagraStar | 13,259 | 14,355 | 27,351 | 28,714 | $ 56,284 | 72,162 | 71,167 | |||
Amounts payable to NagraStar | 17,930 | 17,930 | 9,630 | 9,871 | ||||||
Commitments to NagraStar | $ 4,159 | $ 4,159 | $ 4,893 | 3,888 | ||||||
Dish Mexico | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Interest on equity method investment | 49.00% | 49.00% | 49.00% | |||||||
Sales | $ 5,620 | 6,653 | 5,885 | |||||||
Amounts receivable | $ 2,116 | $ 2,116 | 1,191 | 1,370 | ||||||
Dish Mexico | Uplink services | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Sales | $ 1,288 | $ 1,412 | $ 2,669 | $ 2,816 | $ 5,620 | $ 5,426 | $ 3,994 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Billions | Jul. 01, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101.00% | |
Senior Notes7.375 Percent Due2028 [Member] | Subsequent event | ||
Subsequent Event [Line Items] | ||
Interest rate (as a percent) | 7.375% | |
Principal amount of debt | $ 1 | |
Redemption price as a percentage of principal amount | 100.00% | |
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101.00% | |
Senior Notes7.375 Percent Due2028 [Member] | Subsequent event | Maximum | ||
Subsequent Event [Line Items] | ||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% |