Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2016 | |
Document and Entity Information | |
Entity Registrant Name | DISH DBS CORP |
Entity Central Index Key | 1,042,642 |
Document Type | S4 |
Document Period End Date | Jun. 30, 2016 |
Amendment Flag | false |
Entity Filer Category | Non-accelerated Filer |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ||||||
Cash and cash equivalents | $ 204,072 | $ 419,926 | $ 59,792 | $ 6,762,140 | $ 4,294,475 | $ 3,424,387 |
Marketable investment securities | 4,720 | 141,335 | 1,401,145 | |||
Trade accounts receivable, net of allowance for doubtful accounts of $16,371 and $20,972, respectively | 821,177 | 822,505 | 902,186 | |||
Inventory | 475,154 | 390,253 | 493,546 | |||
Other current assets | 90,125 | 115,205 | 130,038 | |||
Total current assets | 1,595,248 | 1,889,224 | 9,689,055 | |||
Noncurrent Assets: | ||||||
Restricted cash, cash equivalents and marketable investment securities | 82,374 | 82,374 | 86,984 | |||
Property and equipment, net | 1,974,967 | 2,150,340 | 2,437,004 | |||
FCC authorizations | 635,794 | 635,794 | 635,794 | |||
Other noncurrent assets, net | 217,805 | 219,574 | 535,308 | |||
Total noncurrent assets | 3,235,311 | 3,415,332 | 3,695,090 | |||
Total assets | 4,830,559 | 5,304,556 | 13,384,145 | |||
Current Liabilities: | ||||||
Trade accounts payable | 525,688 | 433,349 | 388,198 | |||
Deferred revenue and other | 830,267 | 843,638 | 865,210 | |||
Accrued programming | 1,550,714 | 1,531,389 | 1,374,710 | |||
Accrued interest | 188,144 | 224,513 | 227,158 | |||
Other accrued expenses | 419,797 | 430,820 | 441,693 | |||
Current portion of long-term debt and capital lease obligations | 33,441 | 1,531,928 | 679,149 | |||
Total current liabilities | 3,548,051 | 4,995,637 | 3,976,118 | |||
Long-Term Obligations, Net of Current Portion: | ||||||
Long-term debt and capital lease obligations, net of current portion | 14,187,357 | 12,206,687 | 13,728,749 | |||
Deferred tax liabilities | 1,031,251 | 1,089,016 | 1,188,399 | |||
Long-term deferred revenue, distribution and carriage payments and other long-term liabilities | 206,149 | 164,682 | 188,067 | |||
Total long-term obligations, net of current portion | 15,424,757 | 13,460,385 | 15,105,215 | |||
Total liabilities | 18,972,808 | 18,456,022 | 19,081,333 | |||
Commitments and Contingencies (Note 11) | ||||||
Redeemable noncontrolling interests | 13,000 | 18,000 | 19,913 | |||
Stockholder's Equity (Deficit): | ||||||
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | ||||||
Additional paid-in capital | 1,308,699 | 1,309,138 | 1,276,201 | |||
Accumulated other comprehensive income (loss) | 123 | 12,039 | 28,383 | |||
Accumulated earnings (deficit) | (15,467,124) | (14,492,752) | (7,022,887) | |||
Total DISH DBS stockholder's equity (deficit) | (14,158,302) | (13,171,575) | (5,718,303) | |||
Noncontrolling interests | 3,053 | 2,109 | 1,202 | |||
Total stockholder's equity (deficit) | (14,155,249) | (13,169,466) | (5,717,101) | $ (4,383,900) | $ (5,261,900) | |
Total liabilities and stockholder's equity (deficit) | $ 4,830,559 | $ 5,304,556 | $ 13,384,145 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | |||
Allowance for doubtful accounts on trade accounts receivable | $ 16,371 | $ 20,972 | $ 23,520 |
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 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | ||||||||||||||
Subscriber-related revenue | $ 3,709,800 | $ 3,693,872 | $ 7,370,465 | $ 7,284,576 | $ 14,524,510 | $ 14,130,607 | $ 13,559,511 | |||||||
Equipment sales and other revenue | 9,615 | 30,562 | 21,104 | 60,920 | 113,739 | 146,806 | 136,101 | |||||||
Total revenue | 3,719,415 | $ 3,668,205 | $ 3,624,548 | 3,724,434 | $ 3,621,062 | $ 3,583,266 | $ 3,585,372 | $ 3,598,565 | $ 3,510,210 | 7,391,569 | 7,345,496 | 14,638,249 | 14,277,413 | 13,695,612 |
Costs and Expenses (exclusive of depreciation shown separately below - Note 6): | ||||||||||||||
Subscriber-related expenses | 2,171,678 | 2,167,880 | 4,323,105 | 4,272,976 | 8,511,404 | 8,066,642 | 7,677,111 | |||||||
Satellite and transmission expenses | 176,694 | 192,556 | 349,915 | 377,236 | 753,853 | 685,732 | 527,483 | |||||||
Cost of sales - equipment, services and other | 13,116 | 23,804 | 25,103 | 54,299 | 91,653 | 106,037 | 85,627 | |||||||
Subscriber acquisition costs: | ||||||||||||||
Cost of sales - subscriber promotion subsidies | 38,748 | 49,829 | 97,514 | 97,347 | 173,331 | 231,064 | 252,178 | |||||||
Other subscriber acquisition costs | 169,845 | 205,914 | 347,937 | 400,896 | 849,999 | 912,718 | 992,221 | |||||||
Subscriber acquisition advertising | 125,880 | 126,377 | 248,555 | 262,810 | 552,278 | 528,642 | 440,337 | |||||||
Total subscriber acquisition costs | 334,473 | 382,120 | 694,006 | 761,053 | 1,575,608 | 1,672,424 | 1,684,736 | |||||||
General and administrative expenses | 181,805 | 167,802 | 373,872 | 359,476 | 745,366 | 762,146 | 687,122 | |||||||
Depreciation and amortization (Note 6) | 228,963 | 237,248 | 441,217 | 461,143 | 907,687 | 956,101 | 905,987 | |||||||
Total costs and expenses | 3,106,729 | 3,171,410 | 6,207,218 | 6,286,183 | 12,585,571 | 12,249,082 | 11,568,066 | |||||||
Operating income (loss) | 612,686 | 532,327 | 461,038 | 553,024 | 506,289 | 602,406 | 420,459 | 497,196 | 508,270 | 1,184,351 | 1,059,313 | 2,052,678 | 2,028,331 | 2,127,546 |
Other Income (Expense): | ||||||||||||||
Interest income | 4,035 | 728 | 4,381 | 4,945 | 5,606 | 35,810 | 38,214 | |||||||
Interest expense, net of amounts capitalized | (191,751) | (219,328) | (383,088) | (441,338) | (862,231) | (834,856) | (878,550) | |||||||
Other, net | (2,006) | 392 | 30,387 | 483 | 14,480 | (3,394) | (2,833) | |||||||
Total other income (expense) | (189,722) | (218,208) | (348,320) | (435,910) | (842,145) | (802,440) | (843,169) | |||||||
Income (loss) before income taxes | 422,964 | 334,816 | 836,031 | 623,403 | 1,210,533 | 1,225,891 | 1,284,377 | |||||||
Income tax (provision) benefit, net | (164,008) | (125,871) | (321,570) | (230,471) | (447,640) | (410,831) | (459,655) | |||||||
Net income (loss) | 258,956 | 208,945 | 514,461 | 392,932 | 762,893 | 815,060 | 824,722 | |||||||
Less: Net income (loss) attributable to noncontrolling interests, net of tax | 4,438 | 3,168 | 11,167 | 7,113 | (17,242) | (9,825) | (300) | |||||||
Net income (loss) attributable to DISH DBS | 263,394 | $ 207,936 | $ 172,154 | 212,113 | $ 187,932 | $ 289,206 | $ 155,041 | $ 190,486 | $ 190,152 | 525,628 | 400,045 | 780,135 | 824,885 | 825,022 |
Comprehensive Income (Loss): | ||||||||||||||
Net income (loss) | 258,956 | 208,945 | 514,461 | 392,932 | 762,893 | 815,060 | 824,722 | |||||||
Other comprehensive income (loss): | ||||||||||||||
Unrealized holding gains (losses) on available-for-sale securities | 111 | 9,959 | (19,606) | (7,573) | (23,468) | 27,819 | 8,781 | |||||||
Deferred income tax (expense) benefit, net | 253 | (3,705) | 7,690 | 1,241 | 7,124 | (10,625) | (3,672) | |||||||
Total other comprehensive income (loss), net of tax | 364 | 6,254 | (11,916) | (6,332) | (16,344) | 17,194 | 5,109 | |||||||
Comprehensive income (loss) | 259,320 | 215,199 | 502,545 | 386,600 | 746,549 | 832,254 | 829,831 | |||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | (4,438) | (3,168) | (11,167) | (7,113) | (17,242) | (9,825) | (300) | |||||||
Comprehensive income (loss) attributable to DISH DBS | $ 263,758 | $ 218,367 | $ 513,712 | $ 393,713 | $ 763,791 | $ 842,079 | $ 830,131 |
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 | Redeemable Noncontrolling Interest | Total |
Balance at Dec. 31, 2012 | $ 1,254,814 | $ 6,080 | $ (6,522,794) | $ (5,261,900) | ||
Increase (Decrease) in Stockholder's Equity | ||||||
Non-cash, stock-based compensation | 29,647 | 29,647 | ||||
Income tax (expense) benefit related to stock awards and other | 18,788 | 18,788 | ||||
Change in unrealized holding gains (losses) on available-for-sale securities, net | 8,781 | 8,781 | ||||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (3,672) | (3,672) | ||||
Capital distribution to EchoStar | (3,148) | (3,148) | ||||
Noncontrolling interest recognized with acquisition of a controlling interest in subsidiary | $ 2,882 | 2,882 | ||||
Net income (loss) attributable to noncontrolling interest | (300) | (300) | ||||
Net income (loss) attributable to DISH DBS | 825,022 | 825,022 | ||||
Balance at Dec. 31, 2013 | 1,300,101 | 11,189 | (5,697,772) | 2,582 | (4,383,900) | |
Increase (Decrease) in Stockholder's Equity | ||||||
Dividends to DISH Orbital Corporation (Note 15) | (2,150,000) | (2,150,000) | ||||
Non-cash, stock-based compensation | 33,969 | 28 | $ 27 | 33,997 | ||
Income tax (expense) benefit related to stock awards and other | 23,022 | (691) | 22,331 | |||
Change in unrealized holding gains (losses) on available-for-sale securities, net | 27,819 | 27,819 | ||||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | (10,625) | (10,625) | ||||
Capital distribution to EchoStar, net of deferred taxes of $31,274 | (51,466) | (51,466) | ||||
Capital distribution to EchoStar, net of deferred taxes of $3,542 | (5,845) | (6,118) | (11,963) | |||
Deemed distribution to - initial fair value of redeemable noncontrolling interest, net of deferred taxes | (14,011) | 22,500 | (14,011) | |||
Sling TV contribution from parent | (9,569) | 12,612 | 3,043 | |||
Net income (loss) attributable to noncontrolling interest | (9,825) | |||||
Net income (loss) attributable to noncontrolling interest excluding redeemable noncontrolling interest | (7,211) | (2,614) | (7,211) | |||
Net income (loss) attributable to DISH DBS | 824,885 | 824,885 | ||||
Balance at Dec. 31, 2014 | 1,276,201 | 28,383 | (7,022,887) | 1,202 | 19,913 | (5,717,101) |
Increase (Decrease) in Stockholder's Equity | ||||||
Dividends to DISH Orbital Corporation (Note 15) | (8,250,000) | (8,250,000) | ||||
Non-cash, stock-based compensation | 19,072 | 127 | 19,072 | |||
Income tax (expense) benefit related to stock awards and other | 23,463 | 691 | 24,154 | |||
Change in unrealized holding gains (losses) on available-for-sale securities, net | (23,468) | (23,468) | ||||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | 7,124 | 7,124 | ||||
Revaluation of EchoStar's interest in Sling TV to redemption value, net of deferred taxes of $5,820 | (9,598) | 15,418 | (9,598) | |||
Net income (loss) attributable to noncontrolling interest | (17,242) | |||||
Net income (loss) attributable to noncontrolling interest excluding redeemable noncontrolling interest | 216 | (17,458) | 216 | |||
Net income (loss) attributable to DISH DBS | 780,135 | 780,135 | ||||
Balance at Dec. 31, 2015 | $ 1,309,138 | $ 12,039 | $ (14,492,752) | $ 2,109 | $ 18,000 | (13,169,466) |
Increase (Decrease) in Stockholder's Equity | ||||||
Deferred income tax (expense) benefit attributable to unrealized gains (losses) on available-for-sale securities | 7,690 | |||||
Net income (loss) attributable to noncontrolling interest | 11,167 | |||||
Net income (loss) attributable to DISH DBS | 525,628 | |||||
Balance at Jun. 30, 2016 | $ (14,155,249) |
CONSOLIDATED STATEMENTS OF CHA6
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (DEFICIT) | |
Deferred tax in capital distribution to EchoStar | $ 3,542 |
Deferred tax in deemed distribution of redeemable noncontrolling interest | 8,489 |
Revaluation of EchoStar's interest in Sling TV to redemption value, deferred taxes | $ 5,820 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows From Operating Activities: | |||
Net income (loss) | $ 762,893 | $ 815,060 | $ 824,722 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||
Depreciation and amortization | 907,687 | 956,101 | 905,987 |
Non-cash, stock-based compensation | 19,199 | 34,024 | 29,647 |
Deferred tax expense (benefit) | (108,821) | 87,587 | 71,405 |
Other, net | (29,835) | 40,274 | (82,032) |
Changes in current assets and current liabilities: | |||
Trade accounts receivable | 82,229 | 2,202 | (69,545) |
Allowance for doubtful accounts | (2,548) | 7,539 | 2,147 |
Inventory | 115,570 | (11,718) | (18,437) |
Other current assets | 14,833 | 14,373 | (26,407) |
Trade accounts payable | 45,151 | (245,677) | 108,565 |
Deferred revenue and other | (21,571) | 39,303 | (8,040) |
Accrued programming and other accrued expenses | 165,881 | 57,939 | 92,309 |
Net cash flows from operating activities | 1,950,668 | 1,797,007 | 1,830,321 |
Cash Flows From Investing Activities: | |||
(Purchases) Sales and maturities of marketable investment securities, net | 1,250,791 | 2,744,000 | (1,838,875) |
Purchases of property and equipment | (646,607) | (822,121) | (925,203) |
Change in restricted cash, cash equivalents and marketable investment securities | 4,610 | (4,204) | 38,881 |
Other, net | (2,658) | (737) | (12,235) |
Net cash flows from investing activities | 606,136 | 1,916,938 | (2,737,432) |
Cash Flows From Financing Activities: | |||
Proceeds from issuance of long-term debt | 2,000,000 | 2,300,000 | |
Proceeds from issuance of restricted debt | 2,600,000 | ||
Redemption of restricted debt | (2,600,000) | ||
Funding of restricted debt escrow | (2,596,750) | ||
Release of restricted debt escrow | 2,596,771 | ||
Dividend to DISH Orbital Corporation | (8,250,000) | (2,150,000) | |
Redemption and repurchases of long-term debt | (650,001) | (1,099,999) | (500,000) |
Repayment of long-term debt and capital lease obligations | (29,206) | (29,649) | (35,586) |
Other, net | 30,189 | 33,368 | 12,764 |
Net cash flows from financing activities | (8,899,018) | (1,246,280) | 1,777,199 |
Net increase (decrease) in cash and cash equivalents | (6,342,214) | 2,467,665 | 870,088 |
Cash and cash equivalents, beginning of period | 6,762,140 | 4,294,475 | 3,424,387 |
Cash and cash equivalents, end of period | $ 419,926 | $ 6,762,140 | $ 4,294,475 |
Organization and Business Activ
Organization and Business Activities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
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. 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, third-party 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. The Sling branded pay-TV services consist of, among other things, live, linear streaming over-the-top (“OTT”) Internet-based domestic, international and Latino video programming services (“Sling TV”). The Sling International video programming service (formerly known as DishWorld) was launched prior to 2015, which historically represented a small percentage of our Pay-TV subscribers. During February and June 2015, we launched our Sling domestic and Sling Latino services, respectively. In addition to these Sling TV services that may only be streamed on one device at a time (single-stream services), on April 13, 2016, we launched a live beta multi-stream Sling domestic service, which includes, among other things, the ability to stream on up to three devices simultaneously. During June 2016, our multi-stream Sling domestic service transitioned from its introductory beta period and has been re-branded as Sling Blue. Meanwhile, we re-branded our single stream Sling domestic service as Sling Orange. All Sling TV subscribers are included in our Pay-TV subscriber count. As of June 30, 2016, we had 13.593 million Pay-TV subscribers in the United States. | 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. 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, third-party 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. The Sling branded pay-TV services consist of, among other things, live, linear streaming over-the-top (“OTT”) Internet-based domestic, international and Latino video programming services (“Sling TV”). The Sling International video programming service (formerly known as DishWorld) was launched prior to 2015, which historically represented a small percentage of our Pay-TV subscribers. During 2015, we launched our Sling domestic and Sling Latino services. All Sling TV subscribers are included in our Pay-TV subscriber count. As of December 31, 2015, we had 13.897 million Pay-TV subscribers in the United States . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
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, 2015. 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. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All significant intercompany accounts and transactions have been eliminated in consolidation. Redeemable Noncontrolling Interests Sling TV. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding L.L.C. (“Sling TV Holding,” formerly known as DISH Digital Holding L.L.C.) to us. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014. Effective August 1, 2014, EchoStar Corporation (“EchoStar”) and Sling TV Holding entered into an exchange agreement (the “Exchange Agreement”) pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal has been determined to be probable of achievement. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes on our Condensed Consolidated Balance Sheets. The operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” in our Condensed Consolidated Balance Sheets effective August 1, 2014, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 10 for further information on Sling TV Holding and the Exchange Agreement. 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 doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, 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. 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, 2016 and December 31, 2015, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) is equal to or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are estimated based on an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our long-term debt. New Accounting Pronouncements Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers . This converged standard on revenue recognition was issued jointly with the International Accounting Standards Board to create common revenue recognition guidance for GAAP and International Financial Reporting Standards. ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance when it becomes effective. ASU 2014-09 allows for either a full retrospective or modified retrospective adoption. We are evaluating the effect that ASU 2014-09 will have on our condensed consolidated financial statements and related disclosures. We have not yet selected an adoption method nor have we determined the effect of the standard on our ongoing financial reporting. The new standard could impact revenue and cost recognition for a significant number of our contracts, as well as our business processes and information technology systems. As a result, our evaluation of the effect of the new standard will likely extend over several future periods. On July 9, 2015, the FASB approved a one year deferral on the effective date for implementation of this standard, which changed the effective date for us to January 1, 2018. Recognition and Measurement of Financial Assets and Financial Liabilities . On January 5, 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-01 will have on our condensed consolidated financial statements. Leases. On F ebruary 25, 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases , which relates to the accounting of leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our condensed consolidated financial statements. Compensation – Stock Compensation. On March 30, 2016, the FASB issued ASU 2016-09 (“ASU 2016-09”), Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which relates to the accounting for employee share-based payments. This standard addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-09 will have on our condensed consolidated financial statements. | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. Redeemable Noncontrolling Interests Sling TV. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding L.L.C. (“Sling TV Holding,” formerly known as DISH Digital Holding L.L.C.) to us. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014. Effective August 1, 2014, EchoStar Corporation (“EchoStar”) and Sling TV Holding entered into an exchange agreement (the “Exchange Agreement”) pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal was determined to be probable during the third quarter 2015. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes on our Consolidated Balance Sheets. The operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” in our Consolidated Balance Sheets effective August 1, 2014, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 15 for further information on Sling TV Holding and the Exchange Agreement. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, 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, 2015 and 2014 may consist of money market funds, government bonds, corporate notes and commercial paper. The cost of these investments approximates their fair value. Marketable Investment Securities We currently classify all marketable investment securities as available-for-sale. We adjust the carrying amount of our available-for-sale securities to fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax. Declines in the fair value of a marketable investment security which are determined to be “other-than-temporary” are recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment. We evaluate our marketable investment securities portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other-than-temporary. This quarterly evaluation consists of reviewing, among other things: · the fair value of our marketable investment securities compared to the carrying amount, · the historical volatility of the price of each security, and · any market and company specific factors related to each security. Declines in the fair value of debt and equity investments below cost basis are generally accounted for as follows: Length of Time Investment Has Been In a Continuous Treatment of the Decline in Value Loss Position (absent specific factors to the contrary) Less than six months Generally, considered temporary. Six to nine months Evaluated on a case by case basis to determine whether any company or market-specific factors exist indicating that such decline is other-than-temporary. Greater than nine months Generally, considered other-than-temporary. The decline in value is recorded as a charge to earnings. Additionally, in situations where the fair value of a debt security is below its carrying amount, we consider the decline to be other-than-temporary and record a charge to earnings if any of the following factors apply: · we have the intent to sell the security, · it is more likely than not that we will be required to sell the security before maturity or recovery, or · we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. In general, we use the first in, first out method to determine the cost basis on sales of marketable investment securities. Trade Accounts Receivable Management estimates the amount of required allowances for the potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. However, past experience may not be indicative of future collections and therefore additional charges could be incurred in the future to reflect differences between estimated and actual collections. Inventory Inventory is stated at the lower of cost or market 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. The costs of satellites under construction, including interest and certain amounts prepaid under our satellite service agreements, are capitalized during the construction phase, assuming the eventual successful launch and in-orbit operation of the satellite. If a satellite were to fail during launch or while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from one to 40 years. Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized. 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, 2015. Indefinite Lived Intangible Assets We do not amortize indefinite lived intangible assets, but test these assets for impairment annually during the fourth quarter or more often if indicators of impairment arise. Intangible assets that have finite lives are amortized over their estimated useful lives and tested for impairment as described above for long-lived assets. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our 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 FCC Licenses. We combine all of our indefinite-lived DBS FCC licenses that we currently utilize or plan to utilize in the future into a single unit of accounting. For 2015, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS FCC licenses exceeds its carrying amount. In our assessment, we considered several qualitative factors, including, among others, overall financial performance, industry and market considerations, and relevant company specific events. In contemplating all factors in their totality, we concluded that it is more likely than not that the fair value of the DBS FCC licenses exceeds its carrying amount. As such, no further analysis was required. The DBS FCC licenses were assessed quantitatively in 2014 and 2013. Our quantitative assessments consisted of a discounted cash flow analysis encompassing future cash flows from satellites transmitting from such licensed orbital locations, including revenue attributable to programming offerings from such satellites, the direct operating and subscriber acquisition costs related to such programming, and future capital costs for replacement satellites. Projected revenue and cost amounts included projected subscribers. In conducting our annual impairment test in 2014 and 2013, we determined that the fair value of the DBS FCC licenses exceeded its carrying amount. Other Investment Securities Generally, we account for our unconsolidated equity investments under either the equity method or cost method of accounting. Because these equity securities are generally not publicly traded, it is not practical to regularly estimate the fair value of the investments; however, these investments are subject to an evaluation for other-than-temporary impairment on a quarterly basis. This quarterly evaluation consists of reviewing, among other things, company business plans, current financial statements and key financial metrics, if available, for factors that may indicate an impairment of our investment. Such factors may include, but are not limited to, cash flow concerns, material litigation, violations of debt covenants and changes in business strategy. The fair value of these equity investments is not estimated unless there are identified changes in circumstances that may indicate an impairment exists and these changes are likely to have a significant adverse effect on the fair value of the investment. Long-Term Deferred Revenue, Distribution and Carriage Payments 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 in our Consolidated Balance Sheets in “Deferred revenue and other” and “Long-term deferred revenue, distribution and carriage payments and other long-term liabilities,” respectively. Sales Taxes We account for sales taxes imposed on our goods and services on a net basis in our Consolidated Statements of Operations and Comprehensive Income (Loss). Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. Income Taxes We establish a provision for income taxes currently payable or receivable and for income tax amounts deferred to future periods. Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that exist between the book and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that such net deferred tax assets will not be realized. Accounting for Uncertainty in Income Taxes From time to time, we engage in transactions where the tax consequences may be subject to uncertainty. We record a liability when, in management’s judgment, a tax filing position does not meet the more likely than not threshold. For tax positions that meet the more likely than not threshold, we may record a liability depending on management’s assessment of how the tax position will ultimately be settled. We adjust our estimates periodically for ongoing examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and precedent. We classify interest and penalties, if any, associated with our uncertain tax positions as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss). Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: · Level 1, defined as observable inputs being quoted prices in active markets for identical assets; · Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active; and · Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of December 31, 2015 and 2014, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) is equal to or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are estimated based on an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our long-term debt. Deferred Debt Issuance Costs Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 7 for further information. Revenue Recognition We recognize revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered. Revenue from our Pay-TV services are recognized when programming is broadcast to subscribers. Payments received from our Pay-TV subscribers in advance of the broadcast or service period are recorded as “Deferred revenue and other” in our Consolidated Balance Sheets until earned. For certain of our promotions, subscribers are charged an upfront fee. A portion of these fees may be deferred and recognized over the estimated subscriber life for new subscribers or the estimated remaining life for existing subscribers ranging from four to five years. Revenue from advertising sales is recognized when the related services are performed. Subscriber fees for DISH branded pay-TV equipment rental fees and other hardware related fees, including fees for DVRs, fees for equipment and additional outlet fees, advertising services and fees earned from our in-home service operations are recognized as revenue as earned. Generally, revenue from equipment sales and equipment upgrades is recognized upon shipment to customers. Certain of our existing and new subscriber promotions include programming discounts. Programming revenues are recorded as earned at the discounted monthly rate charged to the subscriber. We offer our customers the opportunity to download movies for a specific viewing period or permanently purchase a movie from our website. We recognize revenue when the movie is successfully downloaded by the customer, which, based on our current technology, occurs at the time the customer plays the movie for the first time. Subscriber-Related Expenses The cost of television programming distribution rights is generally incurred on a per subscriber basis and various upfront carriage payments are recognized when the related programming is distributed to subscribers. Long-term flat rate programming contracts are charged to expense using the straight-line method over the term of the agreement. The cost of television programming rights to distribute live sporting events for a season or tournament is charged to expense using the straight-line method over the course of the season or tournament. “Subscriber-related expenses” in the Consolidated Statements of Operations and Comprehensive Income (Loss) principally include programming expenses, costs for Pay-TV services incurred in connection with our in-home service and call center operations, billing costs, refurbishment and repair costs related to DBS receiver systems, subscriber retention and other variable subscriber expenses. These costs are recognized as the services are performed or as incurred. Subscriber Acquisition Costs Subscriber acquisition costs in our Consolidated Statements of Operations and Comprehensive Income (Loss) consist of costs incurred to acquire new Pay-TV subscribers through independent third parties 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 retailers and other distributors of our equipment and DBS receiver systems sold directly by us to DISH branded pay-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 branded pay-TV service as well as our direct sales efforts and commissions for our Sling branded pay-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 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 retailer’s purchase price and are, therefore, netted against the proceeds received from the independent retailer. We report the net cost from our various sales promotions through our independent retailer network as a component of “Other subscriber acquisition costs.” Equipment Lease Programs DISH branded pay-TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH branded pay-TV service. Most of our new DISH branded pay-TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH branded pay-TV subscribers is capitalized and depreciated over their estimated useful lives. New Accounting Pronouncements Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. This converged standard on revenue recognition was issued jointly with the International Accounting Standards Board (“IASB”) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (“IFRS”). ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance when it becomes effective. ASU 2014-09 allows for either a full retrospective or modified retrospective adoption. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected an adoption method nor have we determined the effect of the standard on our ongoing financial reporting. The new standard could impact revenue and cost recognition for a significant number of our contracts, as well as our business processes and information technology systems. As a result, our evaluation of the effect of the new standard will likely extend over several future periods. On July 9, 2015, the FASB approved a one year deferral on the effective date for implementation of this standard, which changed the effective date for us to January 1, 2018. Recognition and Measurement of Financial Assets and Financial Liabilities . In January 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-01 will have on our consolidated financial statements. Leases. On F ebruary 25, 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases , which is intended to improve financial reporting about leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our consolidated financial statements. |
Supplemental Data - Statements
Supplemental Data - Statements of Cash Flows | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Supplemental Data - Statements of Cash Flows | ||
Supplemental Data - Statements of Cash Flows | 3. Supplemental Data - Statements of Cash Flows The following table presents our supplemental cash flow and other non-cash data. For the Six Months Ended June 30, 2016 2015 (In thousands) Cash paid for interest $ $ Cash received for interest Cash paid for income taxes Cash paid for income taxes to DISH Network Satellites and other assets financed under capital lease obligations — Our parent, DISH Network, provides a centralized system for the management of our cash and marketable investment securities as it does for all of its subsidiaries, among other reasons, to maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our 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 our supplemental cash flow and other non-cash data. For the Years Ended December 31, 2015 2014 2013 (In thousands) Cash paid for interest $ $ $ Cash received for interest Cash paid for income taxes Cash paid for income taxes to DISH Network Satellites and other assets financed under capital lease obligations — Satellite and Tracking Stock Transaction with EchoStar: Transfer of property and equipment, net — — Investment in EchoStar and HSSC preferred tracking stock - cost method — — Transfer of liabilities and other — — Capital distribution to EchoStar, net of deferred taxes of $31,274 — — Sling TV Exchange Transaction with EchoStar: Transfer of property and equipment, net — — Transfer of investments and intangibles, net — — Capital distribution to EchoStar, net of deferred taxes of $3,542 — — Deemed distribution to EchoStar - initial fair value of redeemable noncontrolling interest, net of deferred taxes of $8,489 — — Our parent, DISH Network, provides a centralized system for the management of our cash and marketable investment securities as it does for all of its subsidiaries, among other reasons, to maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our Consolidated Balance Sheets is a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Consolidated Balance Sheets and managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each year presented on our Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities. |
Marketable Investment Securitie
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
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, 2016 December 31, 2015 (In thousands) Marketable investment securities: Current marketable investment securities $ $ Restricted marketable investment securities (1) Total marketable investment securities Restricted cash and cash equivalents (1) Other investment securities: Investment in EchoStar preferred tracking stock - cost method Investment in HSSC preferred tracking stock - cost method Other investment securities - cost method Total other investment securities Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ $ (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 consists of various debt and equity instruments, all of which are classified as available-for-sale. Current Marketable Investment Securities Our current marketable investment securities portfolio includes investments in equity securities and various debt instruments including, among others, commercial paper, corporate securities and U.S. 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, 2016 and December 31, 2015, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit. Other Investment Securities We have strategic investments in certain debt and equity securities that are included in noncurrent “Other investment securities ” on our Condensed Consolidated Balance Sheets and accounted for using the cost, equity and/or available-for-sale methods of accounting. 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. Investment in Tracking Stock On February 20, 2014, we entered into agreements with EchoStar to implement a transaction pursuant to which, among other things: (i) on March 1, 2014, we transferred to EchoStar and Hughes Satellite Systems Corporation (“HSSC”), a subsidiary of EchoStar, five satellites (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV (collectively the “Transferred Satellites”), including related in-orbit incentive obligations and cash interest payments of approximately $59 million), and approximately $11 million in cash in exchange for an aggregate of 6,290,499 shares of a series of preferred tracking stock issued by EchoStar and an aggregate of 81.128 shares of a series of preferred tracking stock issued by HSSC (collectively, the “Tracking Stock”); and (ii) beginning on March 1, 2014, we lease back certain satellite capacity on the Transferred Satellites (collectively, the “Satellite and Tracking Stock Transaction”). As of November 30, 2015, we no longer lease satellite capacity on the EchoStar I satellite. The Tracking Stock generally tracks the residential retail satellite broadband business of Hughes Network Systems, LLC (“HNS”), a wholly-owned subsidiary of HSSC, including without limitation the operations, assets and liabilities attributed to the Hughes residential retail satellite broadband business (collectively, the “Hughes Retail Group”). The shares of the Tracking Stock issued to us represent an aggregate 80% economic interest in the Hughes Retail Group. Since the Satellite and Tracking Stock Transaction is among entities under common control, we recorded the Tracking Stock at EchoStar’s and HSSC’s historical cost basis for these instruments of $229 million and $87 million, respectively. The difference between the historical cost basis of the Tracking Stock received and the net carrying value of the Transferred Satellites of $356 million (including debt obligations, net of deferred taxes), plus the $11 million in cash, resulted in a $51 million capital transaction recorded in “Additional paid-in capital” on our Condensed Consolidated Balance Sheets. Although our investment in the Tracking Stock represents an aggregate 80% economic interest in the Hughes Retail Group, we have no operational control or significant influence over the Hughes Retail Group business, and currently there is no public market for the Tracking Stock. As such, the Tracking Stock is accounted for under the cost method of accounting. On February 20, 2014, DISH Operating L.L.C. (“DOLLC”) and DISH Network L.L.C. (“DNLLC”), each indirect wholly-owned subsidiaries of us, entered into an Investor Rights Agreement with EchoStar and HSSC with respect to the Tracking Stock (the “Investor Rights Agreement”). The Investor Rights Agreement provides, among other things, certain information and consultation rights for us; certain transfer restrictions on the Tracking Stock and certain rights and obligations to offer and sell under certain circumstances (including a prohibition on transfers of the Tracking Stock for one year, with continuing transfer restrictions (including a right of first offer in favor of EchoStar) thereafter, an obligation to sell the Tracking Stock to EchoStar in connection with a change of control of DISH Network and a right to require EchoStar to repurchase the Tracking Stock in connection with a change of control of EchoStar, in each case subject to certain terms and conditions); certain registration rights; certain obligations to provide conversion and exchange rights of the Tracking Stock under certain circumstances; and certain protective covenants afforded to holders of the Tracking Stock. The Investor Rights Agreement generally will terminate with respect to our interest should we no longer hold any shares of the HSSC-issued Tracking Stock and any registrable securities under the Investor Rights Agreement. Unrealized Gains (Losses) on Marketable Investment Securities As of June 30, 2016 and December 31, 2015, we had accumulated net unrealized gains of less than $ 1 million and $20 million, respectively. These amounts, net of related tax effect, were less than $1 million and $12 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 June 30, 2016 As of December 31, 2015 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 $ $ $ — $ $ $ $ $ Corporate securities — Other — — — — — Equity securities — — — — — Total $ $ $ — $ $ $ $ $ As of June 30, 2016, restricted and non-restricted marketable investment securities included debt securitie s of $69 million with contractual maturities within one year and $18 million with contractual maturities extending longer than one year through and including five years. 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 June 30, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ $ $ $ — $ $ $ $ — Debt securities (including restricted): U. S. Treasury and agency securities $ $ $ — $ $ $ $ — Corporate securities — — — — Other — — — — — — Equity securities — — — — — — Total $ $ $ $ — $ $ $ $ — During the six months ended June 30, 2016, we had no transfers in or out of Level 1 and Level 2 fair value measurements. | 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, 2015 2014 (In thousands) Marketable investment securities: Current marketable investment securities $ $ Restricted marketable investment securities (1) Total marketable investment securities Restricted cash and cash equivalents (1) Other investment securities: Investment in EchoStar preferred tracking stock - cost method Investment in HSSC preferred tracking stock - cost method Other investment securities - cost method Total other investment securities (2) Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ $ (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. (2) Other investment securities are included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. Marketable Investment Securities Our marketable investment securities portfolio consists of various debt and equity instruments, all of which are classified as available-for-sale. See Note 2 for further information. Current Marketable Investment Securities Our current marketable investment securities portfolio includes investments in equity securities and various debt instruments including, among others, commercial paper, corporate securities and U.S. 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, 2015 and 2014, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit. Other Investment Securities We have strategic investments in certain debt and equity securities that are included in “Other noncurrent assets, net” on our Consolidated Balance Sheets and accounted for using the cost, equity and/or available-for-sale methods of accounting. 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. Investment in Tracking Stock On February 20, 2014, we entered into agreements with EchoStar to implement a transaction pursuant to which, among other things: (i) on March 1, 2014, we transferred to EchoStar and Hughes Satellite Systems Corporation (“HSSC”), a subsidiary of EchoStar, five satellites (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV (collectively the “Transferred Satellites”), including related in-orbit incentive obligations and cash interest payments of approximately $59 million), and approximately $11 million in cash in exchange for an aggregate of 6,290,499 shares of a series of preferred tracking stock issued by EchoStar and an aggregate of 81.128 shares of a series of preferred tracking stock issued by HSSC (collectively, the “Tracking Stock”); and (ii) beginning on March 1, 2014, we lease back certain satellite capacity on the Transferred Satellites (collectively, the “Satellite and Tracking Stock Transaction”). As of November 30, 2015, we no longer lease satellite capacity on the EchoStar I satellite. The Tracking Stock generally tracks the residential retail satellite broadband business of Hughes Network Systems, LLC (“HNS”), a wholly-owned subsidiary of HSSC, including without limitation the operations, assets and liabilities attributed to the Hughes residential retail satellite broadband business (collectively, the “Hughes Retail Group”). The shares of the Tracking Stock issued to us represent an aggregate 80% economic interest in the Hughes Retail Group. Since the Satellite and Tracking Stock Transaction is among entities under common control, we recorded the Tracking Stock at EchoStar and HSSC’s historical cost basis for these instruments of $229 million and $87 million, respectively. The difference between the historical cost basis of the Tracking Stock received and the net carrying value of the Transferred Satellites of $356 million (including debt obligations, net of deferred taxes), plus the $11 million in cash, resulted in a $51 million capital transaction recorded in “Additional paid-in capital” on our Consolidated Balance Sheets. Although our investment in the Tracking Stock represents an aggregate 80% economic interest in the Hughes Retail Group, we have no operational control or significant influence over the Hughes Retail Group business, and currently there is no public market for the Tracking Stock. As such, the Tracking Stock is accounted for under the cost method of accounting. On February 20, 2014, DISH Operating L.L.C. (“DOLLC”) and DISH Network L.L.C. (“DNLLC”), each indirect wholly-owned subsidiaries of us, entered into an Investor Rights Agreement with EchoStar and HSSC with respect to the Tracking Stock (the “Investor Rights Agreement”). The Investor Rights Agreement provides, among other things, certain information and consultation rights for us; certain transfer restrictions on the Tracking Stock and certain rights and obligations to offer and sell under certain circumstances (including a prohibition on transfers of the Tracking Stock for one year, with continuing transfer restrictions (including a right of first offer in favor of EchoStar) thereafter, an obligation to sell the Tracking Stock to EchoStar in connection with a change of control of DISH Network and a right to require EchoStar to repurchase the Tracking Stock in connection with a change of control of EchoStar, in each case subject to certain terms and conditions); certain registration rights; certain obligations to provide conversion and exchange rights of the Tracking Stock under certain circumstances; and certain protective covenants afforded to holders of the Tracking Stock. The Investor Rights Agreement generally will terminate with respect to our interest should we no longer hold any shares of the HSSC-issued Tracking Stock and any registrable securities under the Investor Rights Agreement. Unrealized Gains (Losses) on Marketable Investment Securities As of December 31, 2015 and 2014, we had accumulated net unrealized gains of $20 million and $43 million, respectively. These amounts, net of related tax effect, were $12 million and $28 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, 2015 2014 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 $ $ $ $ $ $ $ $ Commercial paper — — — — — — — Corporate securities Other — — — — Equity securities — — Total $ $ $ $ $ $ $ $ As of December 31, 2015, restricted and non-restricted marketable investment securities included debt securities of $127 million with contractual maturities within one year and $63 million with contractual maturities extending longer than one year through and including five years. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity. Marketable Investment Securities in a Loss Position The following table reflects the length of time that the individual securities, accounted for as available-for-sale, have been in an unrealized loss position, aggregated by investment category. As of December 31, 2015, the unrealized losses on our investments in debt securities primarily represented investments in U.S. Treasury and agency securities and corporate securities. We have the ability to hold and do not intend to sell our investments in these debt securities before they recover or mature, and it is more likely than not that we will hold these investments until that time. In addition, we are not aware of any specific factors indicating that the underlying issuers of these debt securities would not be able to pay interest as it becomes due or repay the principal at maturity. Therefore, we believe that these changes in the estimated fair values of these marketable investment securities are related to temporary market fluctuations. As of December 31, 2015 2014 Fair Unrealized Fair Unrealized Value Loss Value Loss (In thousands) Debt Securities: Less than 12 months $ $ $ $ 12 months or more Total $ $ $ $ Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of December 31, 2015 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ $ $ $ — $ $ $ $ — Debt securities (including restricted): U. S. Treasury and agency securities $ $ $ — $ $ $ $ — Commercial paper — — — — — — Corporate securities — — — — Other — — — — Equity securities — — — — Total $ $ $ $ — $ $ $ $ — During the years ended December 31, 2015 and 2014, we had no transfers in or out of Level 1 and Level 2 fair value measurements. |
Inventory
Inventory | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Inventory | ||
Inventory | 5. Inventory Inventory consisted of the following: As of June 30, 2016 December 31, 2015 (In thousands) Finished goods $ $ Work-in-process and service repairs Raw materials Total inventory $ $ | 5. Inventory Inventory consisted of the following: As of December 31, 2015 2014 (In thousands) Finished goods $ $ Raw materials Work-in-process Total inventory $ $ |
Property and Equipment
Property and Equipment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Property and Equipment | ||
Property and Equipment | 6. Property and Equipment Depreciation and amortization expense consisted of the following: For the Three Months For the Six Months Ended Ended June 30, Ended June 30, 2016 2015 2016 2015 (In thousands) Equipment leased to customers $ $ $ $ Satellites Buildings, furniture, fixtures, equipment and other Total depreciation and amortization $ $ $ $ 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. We currently utilize 12 satellites in geostationary orbit approximately 22,300 miles above the equator, one of which we own and depreciate over its estimated useful life. We currently utilize certain capacity on nine satellites that we lease from EchoStar, which are accounted for as operating leases. We also lease two satellites from third parties, which are accounted for as capital leases and are depreciated over the shorter of the economic life or the term of the satellite agreement. As of June 30, 2016, our pay-TV satellite fleet consisted of the following: Estimated Useful Life (Years)/ Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar XV July 2010 61.5 15 EchoStar XVIII (1) June 2016 61.5 15 Leased from EchoStar (2): EchoStar VII (3) February 2002 119 June 2017 EchoStar IX August 2003 121 Month to month EchoStar X (3) February 2006 110 February 2021 EchoStar XI (3) July 2008 110 September 2021 EchoStar XII (3) July 2003 61.5 September 2017 EchoStar XIV (3) March 2010 119 February 2023 EchoStar XVI (4) November 2012 61.5 January 2018 Nimiq 5 September 2009 72.7 September 2019 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2019 (1) The EchoStar XVIII satellite was launched on June 18, 2016 and is expected to become operational at the 61.5 degree orbital location during the third quarter 2016. The EchoStar XVIII satellite is currently owned by an indirect subsidiary of DISH Network. (2) See Note 10 for further information on our Related Party Transactions with EchoStar. (3) We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite. (4) We have the option to renew this lease for an additional five -year period. If we exercise our five-year renewal option, we have the option to renew this lease for an additional five years. | 6. Property and Equipment and Intangible Assets Property and Equipment Property and equipment consisted of the following: Depreciable Life As of December 31, (In Years) 2015 2014 (In thousands) Equipment leased to customers 2 -5 $ 3,439,254 $ EchoStar XV 15 Satellites acquired under capital lease agreements 10 -15 Furniture, fixtures, equipment and other 1 -10 Buildings and improvements 1 -40 Land - Construction in progress - Total property and equipment Accumulated depreciation Property and equipment, net $ $ Construction in progress consisted of the following: As of December 31, 2015 2014 (In thousands) Software projects $ $ Other Total construction in progress $ $ Depreciation and amortization expense consisted of the following: For the Years Ended December 31, 2015 2014 2013 (In thousands) Equipment leased to customers $ $ $ Satellites (1) Buildings, furniture, fixtures, equipment and other Total depreciation and amortization $ $ $ (1) Depreciation and amortization expense decreased $40 million in 2014 as a result of the Satellite and Tracking Stock Transaction. See Note 4 and Note 15 for further information. 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. We did not record any capitalized interest during the years ended December 31, 2015, 2014 or 2013. Satellites Pay-TV Satellites . We currently utilize 12 satellites in geostationary orbit approximately 22,300 miles above the equator, one of which we own and depreciate over its estimated useful life. We currently utilize certain capacity on nine satellites that we lease from EchoStar, which are accounted for as operating leases. We also lease two satellites from third parties, which are accounted for as capital leases and are depreciated over the shorter of the economic life or the term of the satellite agreement. As of December 31, 2015, our pay-TV satellite fleet consisted of the following: Estimated Useful Life (Years)/ Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar XV July 2010 61.5 15 Under Construction: EchoStar XVIII Second quarter 2016 110 15 Leased from EchoStar (1): EchoStar VII (2)(3) February 2002 119 June 2017 EchoStar IX August 2003 121 Month to month EchoStar X (2)(3) February 2006 110 February 2021 EchoStar XI (2)(3) July 2008 110 September 2021 EchoStar XII (3) July 2003 61.5 September 2017 EchoStar XIV (2)(3) March 2010 119 February 2023 EchoStar XVI (4) November 2012 61.5 January 2017 Nimiq 5 September 2009 72.7 September 2019 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2019 (1) See Note 15 for further information on our Related Party Transactions with EchoStar. (2) On February 20, 2014, we entered into the Satellite and Tracking Stock Transaction with EchoStar pursuant to which, among other things, we transferred these satellites to EchoStar and lease back all available capacity on these satellites. See Note 4 and Note 15 for further information. (3) We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite. (4) We have the option to renew this lease for an additional six -year period. If we exercise our six -year renewal option, we have the option to renew this lease for an additional five years. Satellites Under Construction EchoStar XVIII . On September 7, 2012, DISH Network entered into a contract with Space Systems/Loral, Inc. (“SS/L”) for the construction of EchoStar XVIII, a DBS satellite with spot beam technology designed for, among other things, HD programming. During October 2013, DISH Network entered into an agreement with ArianeSpace S.A. for launch services for this satellite, which is expected to launch during the second quarter 2016. Satellite Anomalies Operation of our DISH branded pay-TV service requires that we have adequate satellite transmission capacity for the programming that we offer. Moreover, current competitive conditions require that we continue to expand our offering of new programming. 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 owned or leased satellites that we use, other than certain satellites leased from third parties, and therefore, we will bear the risk associated with any uninsured in-orbit satellite failures. In light of current favorable market conditions, during January 2016, DISH Network procured commercial launch and in-orbit insurance (for a period of one year following launch) for the EchoStar XVIII satellite, which is expected to launch during the second quarter 2016. Intangible Assets FCC Authorizations As of December 31, 2015 and 2014, our FCC Authorizations consisted of the following: As of December 31, 2015 2014 (In thousands) DBS Licenses $ $ MVDDS Licenses Total $ $ |
Long-Term Debt
Long-Term Debt | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Long-Term Debt | ||
Long-Term Debt | 7. Long-Term Debt 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, 2016 and December 31, 2015: As of June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 7 1/8% Senior Notes due 2016 (1) $ — $ — $ $ 4 5/8% Senior Notes due 2017 4 1/4% Senior Notes due 2018 7 7/8% Senior Notes due 2019 5 1/8% Senior Notes due 2020 6 3/4% Senior Notes due 2021 5 7/8% Senior Notes due 2022 5 % Senior Notes due 2023 5 7/8% Senior Notes due 2024 7 3/4% Senior Notes due 2026 — — Other notes payable Subtotal $ $ Unamortized deferred financing costs and debt discounts, net Capital lease obligations (2) Total long-term debt and capital lease obligations (including current portion) $ $ (1) On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016. (2) Disclosure regarding fair value of capital leases is not required. We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2). 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, commencing on January 1, 2017. The 7 3/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to July 1, 2019, we may also redeem up to 35% of the 7 3/4% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. Our 7 3/4% 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 3/4% 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 3/4% 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. | 7. Long-Term Debt and Capital Lease Obligations Fair Value of our Long-Term Debt The following table summarizes the carrying and fair values of our debt facilities as of December 31, 2015 and 2014: As of December 31, 2015 2014 Carrying Value Fair Value Carrying Value Fair Value (In thousands) 7 3/4% Senior Notes due 2015 (1) $ — $ — $ $ 7 1/8% Senior Notes due 2016 (2) 4 5/8% Senior Notes due 2017 4 1/4% Senior Notes due 2018 7 7/8% Senior Notes due 2019 5 1/8% Senior Notes due 2020 6 3/4% Senior Notes due 2021 5 7/8% Senior Notes due 2022 5 % Senior Notes due 2023 5 7/8% Senior Notes due 2024 Other notes payable Subtotal $ $ Unamortized deferred financing costs and debt discounts, net Capital lease obligations (3) Total long-term debt and capital lease obligations (including current portion) $ $ (1) On June 1, 2015, we redeemed the principal balance of our 7 3/4% Senior Notes due 2015. (2) On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016. (3) Disclosure regarding fair value of capital leases is not required. We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2). Our Senior Notes are: · general unsecured senior obligations of DISH DBS; · ranked equally in right of payment with all of DISH DBS’ and the guarantors’ existing and future unsecured senior debt; and · ranked effectively junior to our and the guarantors’ current and future secured senior indebtedness up to the value of the collateral securing such indebtedness. The indentures related to our Senior Notes contain restrictive covenants that, among other things, impose limitations on the ability of DISH DBS and its restricted subsidiaries to: · incur additional debt; · pay dividends or make distributions on DISH DBS’ capital stock or repurchase DISH DBS’ capital stock; · make certain investments; · create liens or enter into sale and leaseback transactions; · enter into transactions with affiliates; · merge or consolidate with another company; and · transfer or sell assets. In the event of a change of control, as defined in the related indentures, we would be required to make an offer to repurchase all or any part of a holder’s Senior Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon, to the date of repurchase. 7 1/8% Senior Notes due 2016 On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016, using a substantial portion of our and DISH Network’s available cash and investment securities on hand. 4 5/8% Senior Notes due 2017 On May 16, 2012, we issued $900 million aggregate principal amount of our five -year 4 5/8% Senior Notes due July 15, 2017. Interest accrues at an annual rate of 4 5/8% and is payable semi-annually in cash, in arrears on January 15 and July 15 of each year. The 4 5/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100.0% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 4 1/4% Senior Notes due 2018 On April 5, 2013, we issued $1.2 billion aggregate principal amount of our five -year 4 1/4% Senior Notes due April 1, 2018. Interest accrues at an annual rate of 4 1/4% and is payable semi-annually in cash in arrears on April 1 and October 1 of each year. The 4 1/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to April 1, 2016, we may also redeem up to 35.0% of the 4 1/4% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. 7 7/8% Senior Notes due 2019 On August 17, 2009 and October 5, 2009, we issued $1.0 billion and $400 million, respectively, aggregate principal amount of our ten -year 7 7/8% Senior Notes due September 1, 2019. Interest accrues at an annual rate of 7 7/8% and is payable semi-annually in cash, in arrears on March 1 and September 1 of each year. The 7 7/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 5 1/8% Senior Notes due 2020 On April 5, 2013, we issued $1.1 billion aggregate principal amount of our seven -year 5 1/8% Senior Notes due May 1, 2020. Interest accrues at an annual rate of 5 1/8% and is payable semi-annually in cash in arrears on May 1 and November 1 of each year. The 5 1/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to May 1, 2016, we may also redeem up to 35.0% of the 5 1/8% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. 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 100.0% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 5% Senior Notes due 2023 On December 27, 2012, we issued $1.5 billion aggregate principal amount of our 5% Senior Notes due March 15, 2023. Interest accrues at an annual rate of 5% and is payable semi-annually in cash, in arrears on March 15 and September 15 of each year. The 5% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100.0% 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 100.0% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to November 15, 2017, we may also redeem up to 35.0% of the 5 7/8% Senior Notes due 2024 at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. Interest on Long-Term Debt Annual Semi-Annual Debt Service Payment Dates Requirements (In thousands) 4 5/8% Senior Notes due 2017 January 15 and July 15 $ 4 1/4% Senior Notes due 2018 April 1 and October 1 $ 7 7/8% Senior Notes due 2019 March 1 and September 1 $ 5 1/8% Senior Notes due 2020 May 1 and November 1 $ 6 3/4% Senior Notes due 2021 June 1 and December 1 $ 5 7/8% Senior Notes due 2022 January 15 and July 15 $ 5% Senior Notes due 2023 March 15 and September 15 $ 5 7/8% Senior Notes due 2024 May 15 and November 15 $ Our ability to meet our debt service requirements will depend on, among other factors, the successful execution of our business strategy, which is subject to uncertainties and contingencies beyond our control. Other Long-Term Debt and Capital Lease Obligations Other long-term debt and capital lease obligations consisted of the following: As of December 31, 2015 2014 (In thousands) Satellites and other capital lease obligations $ $ Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates ranging from approximately 6.0% to 12.5% Total Less: current portion Other long-term debt and capital lease obligations, net of current portion $ $ Capital Lease Obligations Anik F3. Anik F3, an FSS satellite, was launched and commenced commercial operation during April 2007. This satellite is accounted for as a capital lease and depreciated over the term of the satellite service agreement. We have leased 100% of the Ku-band capacity on Anik F3 for a period of 15 years. Ciel II . Ciel II, a Canadian DBS satellite, was launched in December 2008 and commenced commercial operation during February 2009. This satellite is accounted for as a capital lease and depreciated over the term of the satellite service agreement. We have leased 100% of the capacity on Ciel II for an initial 10 year term. As of December 31, 2015 and 2014, we had $500 million capitalized for the estimated fair value of satellites acquired under capital leases included in “Property and equipment, net,” with related accumulated depreciation of $322 million and $279 million, respectively. In our Consolidated Statements of Operations and Comprehensive Income (Loss), we recognized $43 million, $43 million and $43 million in depreciation expense on satellites acquired under capital lease agreements during the years ended December 31, 2015, 2014 and 2013, respectively. Future minimum lease payments under the capital lease obligations, together with the present value of the net minimum lease payments as of December 31, 2015 are as follows (in thousands): For the Years Ended December 31, 2016 $ 2017 2018 2019 2020 Thereafter Total minimum lease payments Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments Net minimum lease payments Less: Amount representing interest Present value of net minimum lease payments Less: Current portion Long-term portion of capital lease obligations $ The summary of future maturities of our outstanding long-term debt as of December 31, 2015 is included in the commitments table in Note 11. |
Income Taxes and Accounting for
Income Taxes and Accounting for Uncertainty in Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes and Accounting for Uncertainty in Income Taxes | |
Income Taxes and Accounting for Uncertainty in Income Taxes | 8. Income Taxes and Accounting for Uncertainty in Income Taxes Income Taxes DISH DBS and its domestic subsidiaries join with DISH Network in filing U.S. consolidated federal income tax returns and, in some states, combined or consolidated returns. The federal and state income tax provisions or benefits recorded by DISH DBS are generally those that would have been recorded if DISH DBS and its domestic subsidiaries had filed returns as a consolidated group independent of DISH Network. Cash is due and paid to DISH Network based on amounts that would be payable based on DISH DBS consolidated or combined group filings. Amounts are receivable from DISH Network on a basis similar to when they would be receivable from the IRS or other state taxing authorities. The amounts paid to DISH Network during the years ended December 31, 2015, 2014 and 2013 were $558 million, $279 million and $433 million , respectively. Our income tax policy is to record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported on our Consolidated Balance Sheets, as well as probable operating loss, tax credit and other carryforwards. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that net deferred tax assets will not be realized. We periodically evaluate our need for a valuation allowance. Determining necessary valuation allowances requires us to make assessments about historical financial information as well as the timing of future events, including the probability of expected future taxable income and available tax planning opportunities. As of December 31, 2015, we had no net operating loss carryforwards (“NOLs”) for federal income tax purposes and $1 million of NOL benefit for state income tax purposes. The state NOLs begin to expire in the year 2017. In addition, there are $15 million of tax benefits related to credit carryforwards which are partially offset by a valuation allowance. The state credit carryforwards began to expire in the year 2015. The components of the (benefit from) provision for income taxes were as follows: For the Years Ended December 31, 2015 2014 2013 (In thousands) Current (benefit) provision: Federal $ $ $ State Foreign Total current (benefit) provision Deferred (benefit) provision: Federal State Increase (decrease) in valuation allowance — Total deferred (benefit) provision Total (benefit) provision $ $ $ Our $1.211 billion of “Income (loss) before income taxes” on our Consolidated Statements of Operations and Comprehensive Income (Loss) included income of $3 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, 2015 2014 2013 % of pre-tax income/(loss) Statutory rate State income taxes, net of federal benefit Reversal of uncertain tax positions — Other, net — Total (benefit) provision for income taxes 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, 2015 2014 (In thousands) Deferred tax assets: NOL, credit and other carryforwards $ $ Accrued expenses Stock-based compensation Deferred revenue Total deferred tax assets Valuation allowance Deferred tax asset after valuation allowance Deferred tax liabilities: Depreciation FCC authorizations and other intangible amortization Unrealized gains on available for sale investments Bases difference in partnerships and cost method investments (1) Other liabilities Total deferred tax liabilities Net deferred tax asset (liability) $ $ (1) Included in this line item are deferred taxes related to our cost method investments, including our cost method investments in the Tracking Stock. During November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes,” which simplifies the presentation of deferred income taxes. This standard requires that current deferred tax assets and liabilities be classified as noncurrent in a statement of financial position. We early adopted ASU 2015-17 effective December 31, 2015 on a retrospective basis, which resulted in a reclassification of our net current deferred tax asset to the net non current deferred tax liabilities in our Consolidated Balance Sheets. Prior period amounts have been reclassified to conform to the current period presentation. 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 U.S. federal, state and local income tax examinations by tax authorities for the years beginning in 2002 due to the carryover of previously incurred NOLs. We are currently under a federal income tax examination for fiscal years 2008 through 2012. A reconciliation of the beginning and ending amount of unrecognized tax benefits included in “Long-term deferred revenue, distribution and carriage payments and other long-term liabilities” on our Consolidated Balance Sheets was as follows: For the Years Ended December 31, Unrecognized tax benefit 2015 2014 2013 (In thousands) Balance as of beginning of period $ $ $ Additions based on tax positions related to the current year Additions based on tax positions related to prior years Reductions based on tax positions related to prior years — Reductions based on tax positions related to settlements with taxing authorities Reductions based on tax positions related to the lapse of the statute of limitations Balance as of end of period $ $ $ We have $181 million in unrecognized tax benefits that, if recognized, could favorably affect our effective tax rate. We do not expect any 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 year ended December 31, 2015, we recorded $3 million in net interest and penalty expense to earnings. During the year ended December 31, 2014, we recorded a credit of $3 million in net interest and penalty expense to earnings. During the year ended December 31, 2013, we recorded $8 million in net interest and penalty expense to earnings. Accrued interest and penalties were $14 million and $10 million at December 31, 2015 and 2014, respectively. The above table excludes these amounts. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans | |
Employee Benefit Plans | 9. Employee Benefit Plans Employee Stock Purchase Plan Our employees participate in the DISH Network employee stock purchase plan (the “ESPP”), in which DISH Network is authorized to issue up to 2.8 million shares of Class A common stock. At December 31, 2015, DISH Network had 1.0 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, 2015, 2014 and 2013, employee purchases of DISH Network’s Class A common stock through the ESPP totaled approximately 0.1 million, 0.1 million and 0.1 million shares, respectively. 401(k) Employee Savings Plan DISH Network sponsors a 401(k) Employee Savings Plan (the “401(k) Plan”) for eligible employees. Voluntary employee contributions to the 401(k) Plan may be matched 50% by DISH Network, subject to a maximum annual contribution of $2,500 per employee. Forfeitures of unvested participant balances which are retained by the 401(k) Plan may be used to fund matching and discretionary contributions. DISH Network’s board of directors may also authorize an annual discretionary contribution to the 401(k) Plan with authorization by our Board of Directors, subject to the maximum deductible limit provided by the Internal Revenue Code of 1986, as amended. These contributions may be made in cash or in DISH Network’s stock. The following table summarizes the expense associated with our matching contributions and discretionary contributions: For the Years Ended December 31, Expense Recognized Related to the 401(k) Plan 2015 2014 2013 (In thousands) Matching contributions, net of forfeitures $ $ $ Discretionary stock contributions, net of forfeitures $ $ $ |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation | |
Stock-Based Compensation | 10. Stock-Based Compensation Stock Incentive Plans DISH Network maintains stock incentive plans to attract and retain officers, directors and key employees. Our employees participate in the DISH Network stock incentive plans. Stock awards under these plans include both performance and non-performance based stock incentives. As of December 31, 2015, there were outstanding under these plans stock options to acquire 6.8 million shares of DISH Network’s Class A common stock and 1.4 million restricted stock units associated with our employees. Stock options granted on or prior to December 31, 2015 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, 2015, DISH Network had 69.0 million shares of its Class A common stock available for future grant under its stock incentive plans. On December 28, 2012, DISH Network paid a dividend in cash of $1.00 per share on its outstanding Class A and Class B common stock to shareholders of record on December 14, 2012. In light of such dividend, during January 2013, the exercise price of 12.9 million DISH Network stock options, affecting approximately 400 of our employees, was reduced by $0.77 per share (the “2012 Stock Option Adjustment”). Except as noted below, all information discussed below reflects the 2012 Stock Option Adjustment. 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, each DISH Network stock award was converted into an adjusted DISH Network stock award and a new EchoStar stock award consistent with the Spin-off exchange ratio. DISH Network is responsible for fulfilling all stock awards related to DISH Network common stock and EchoStar is responsible for fulfilling all stock awards related to EchoStar common stock, regardless of whether such stock awards are held by our or EchoStar’s employees. Notwithstanding the foregoing, our stock-based compensation expense, resulting from stock awards outstanding at the Spin-off date, is based on the stock awards held by our employees regardless of whether such stock awards were issued by DISH Network or EchoStar. Accordingly, stock-based compensation that we expense with respect to EchoStar stock awards is included in “Additional paid-in capital” on our Consolidated Balance Sheets. As of March 31, 2013, we have recognized all of our stock-based compensation expense resulting from EchoStar stock awards outstanding at the Spin-off date held by our employees. The following stock awards were outstanding: As of December 31, 2015 DISH Network Awards EchoStar Awards Stock Awards Outstanding Stock Options Restricted Stock Units Stock Options Restricted Stock Units Held by DISH DBS employees — Exercise prices for DISH Network stock options outstanding and exercisable associated with our employees as of December 31, 2015 were as follows: Options Outstanding Options Exercisable Number Outstanding as of December 31, 2015 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Number Exercisable as of December 31, 2015 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price $ — - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ — - $ $ $ Stock Award Activity DISH Network stock option activity associated with our employees was as follows: For the Years Ended December 31, 2015 2014 2013 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period (1) $ $ $ Granted $ $ $ Exercised $ $ $ Forfeited and cancelled $ $ $ Total options outstanding, end of period $ $ $ Performance based options outstanding, end of period (2) $ $ $ Exercisable at end of period $ $ $ (1) The beginning of period weighted-average exercise price for the year ended December 31, 2013 of $18.99 does not reflect the 2012 Stock Option Adjustment, which occurred subsequent to December 31, 2012. (2) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2005 LTIP, 2008 LTIP, 2013 LTIP and Other Employee Performance Awards below. We realized tax benefits from stock awards exercised as follows: For the Years Ended December 31, 2015 2014 2013 (In thousands) Tax benefit from stock awards exercised $ $ $ Based on the closing market price of DISH Network Class A common stock on December 31, 2015, the aggregate intrinsic value of stock options associated with our employees was as follows: As of December 31, 2015 Options Options Outstanding Exercisable (In thousands) Aggregate intrinsic value $ $ DISH Network restricted stock unit activity associated with our employees was as follows: For the Years Ended December 31, 2015 2014 2013 Restricted Stock Awards Weighted- Average Grant Date Fair Value Restricted Stock Awards Weighted- Average Grant Date Fair Value Restricted Stock Awards Weighted- Average Grant Date Fair Value Total restricted stock units outstanding, beginning of period $ $ $ Granted $ $ $ Vested $ $ $ Forfeited and cancelled $ $ $ Total restricted stock units outstanding, end of period (1) $ $ $ (1) All restricted stock units outstanding are Restricted Performance Units. See discussion of the 2005 LTIP, 2008 LTIP, 2013 LTIP and Other Employee Performance Awards below. Long-Term Performance Based Plans 2005 LTIP. During 2005, DISH Network adopted a long-term, performance-based stock incentive plan (the “2005 LTIP”). The 2005 LTIP provided stock options and restricted stock units, either alone or in combination, which vested over seven years at the rate of 10% per year during the first four years, and at the rate of 20% per year thereafter. Exercise of the stock awards was subject to the foregoing vesting schedule and a performance condition that a DISH Network-specific subscriber goal be achieved by March 31, 2015. It was determined that the performance goal can no longer be achieved under the terms of the 2005 LTIP. None of the awards became exercisable and the 2005 LTIP expired by its terms on March 31, 2015. 2008 LTIP. During 2008, DISH Network adopted a long-term, performance-based stock incentive plan (the “2008 LTIP”). The 2008 LTIP provided stock options and restricted stock units, either alone or in combination, which vested based on DISH Network-specific subscriber and financial goals. As of June 30, 2013, 100% of the eligible 2008 LTIP awards had vested. 2013 LTIP. During 2013, DISH Network adopted a long-term, performance-based stock incentive plan (the “2013 LTIP”). The 2013 LTIP provides stock options and restricted stock units in combination, which vest based on DISH Network -specific subscriber and financial goals. Exercise of the stock awards is contingent on achieving these goals by September 30, 2022. Although no awards vest until DISH Network attains the performance goals, compensation related to the 2013 LTIP will be recorded based on DISH Network’s assessment of the probability of meeting the remaining goals. If the remaining goals are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the goal. During the years ended December 31, 2015, 2014, 2013, DISH Network determined that 30% , 10% and 20%, respectively, of the 2013 LTIP performance goals were probable of achievement. As a result, we recorded non-cash, stock-based compensation expense for the years ended December 31, 2015, 2014 and 2013, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” As of December 31, 2015, approximately 20% of the 2013 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 goals. Exercise of these stock awards is contingent on achieving certain performance goals. Additional compensation related to these awards will be recorded based on DISH Network’s assessment of the probability of meeting the remaining performance goals. If the remaining goals are probable of being achieved, we will begin recognizing the associated non-cash, stock-based compensation expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) over the estimated period to achieve the goal. See the table below titled “Estimated Remaining Non-Cash, Stock-Based Compensation Expense.” Although no awards vest until the performance goals are attained, DISH Network determined that certain goals were probable of achievement and, as a result, we recorded non-cash, stock-based compensation expense for the years ended December 31, 2015, 2014 and 2013, as indicated in the table below titled “Non-Cash, Stock-Based Compensation Expense Recognized.” Given the competitive nature of DISH Network’s business, small variations in subscriber churn, gross new subscriber activation rates and certain other factors can significantly impact subscriber growth. Consequently, while it was determined that achievement of certain DISH Network-specific subscriber, operational and/or financial goals was not probable as of December 31, 2015, that assessment could change in the future. The non-cash, stock-based compensation expense associated with these awards for our employees was as follows: For the Years Ended December 31, Non-Cash, Stock-Based Compensation Expense Recognized 2015 2014 2013 (In thousands) 2008 LTIP $ — $ — $ 2013 LTIP Other employee performance awards Total non-cash, stock-based compensation expense recognized for performance based awards $ $ $ Estimated Remaining Non-Cash, Stock-Based Compensation Expense 2013 LTIP Other Employee Performance Awards (In thousands) Expense estimated to be recognized during 2016 $ $ — Estimated contingent expense subsequent to 2016 Total estimated remaining expense over the term of the plan $ $ Of the 6.8 million stock options and 1.4 million restricted stock units outstanding under the DISH Network stock incentive plans associated with our employees as of December 31, 2015, the following awards were outstanding pursuant to the performance based stock incentive plans: As of December 31, 2015 Performance Based Stock Options Number of Awards Weighted- Average Exercise Price 2013 LTIP $ Other employee performance awards $ Total $ Restricted Performance Units 2013 LTIP Other employee performance awards Total Stock-Based Compensation During the year ended December 31, 2013, we incurred an initial charge related to vested options of $4 million of additional non-cash, stock-based compensation expense in connection with the 2012 Stock Option Adjustment discussed previously. These amounts are included in the table below. Total non-cash, stock-based compensation expense for all of our employees is shown in the following table for the years ended December 31, 2015, 2014 and 2013 and was allocated to the same expense categories as the base compensation for such employees: For the Years Ended December 31, 2015 2014 2013 (In thousands) Subscriber-related $ $ $ General and administrative Total non-cash, stock based compensation $ $ $ As of December 31, 2015, our total unrecognized compensation cost related to the non-performance based unvested stock awards was $14 million. This cost was based on an estimated future forfeiture rate of approximately 3.6% per year and will be recognized over a weighted-average period of approximately two years. Share-based compensation expense is recognized based on stock awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Changes in the estimated forfeiture rate can have a significant effect on share-based compensation expense since the effect of adjusting the rate is recognized in the period the forfeiture estimate is changed. Valuation The fair value of each stock option granted for the years ended December 31, 2015, 2014 and 2013 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 2015 2014 2013 Risk-free interest rate % - % % - % % - % Volatility factor % - % % - % % - % Expected term of options in years - - - Weighted-average fair value of options granted $ - $ $ - $ $ - $ 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, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies | ||
Commitments and Contingencies | 8. Commitments and Contingencies Commitments DISH Network Spectrum DISH Network has invested over $5.0 billion since 2008 to acquire certain wireless spectrum licenses and related assets. 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. 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. For example, on February 10, 2016, DISH Network filed an application with the FCC to potentially participate as a bidder in the forward auction phase of the broadcast television spectrum incentive auction (“Auction 1000”). Auction 1000 has two phases. In the first phase or reverse auction phase, participating television broadcasters “sell” their rights to use certain broadcast television spectrum in the 600 MHz frequency range to the FCC. In the second phase or forward auction phase, the FCC will “resell” that spectrum to various auction participants, including wireless service providers and other potential bidders. The first phase of Auction 1000 began on March 29, 2016 and concluded on June 29, 2016. Pursuant to the FCC’s procedures for Auction 1000 and based on the results of the reverse auction phase, in order for Auction 1000 to conclude, the proceeds generated in the first stage of the forward auction phase must exceed approximately $88.4 billion. If the proceeds from the first stage of the forward auction phase do not exceed this amount, Auction 1000 would move to one or more additional stages, with less available spectrum and lower spectrum clearing targets set by the FCC. The first stage of the forward auction phase of Auction 1000 will include 100 MHz of spectrum in over 90% of the available licensed geographic areas, based on the broadcasters’ indicated availability of spectrum in the reverse auction phase. The available spectrum in each of these areas is comprised of certain paired 5x5 spectrum blocks (5 MHz uplink spectrum and 5 MHz downlink spectrum). As a result, a nationwide footprint may be obtained by aggregating a single 5x5 spectrum block in each available licensed geographic area. A qualified bidder in the forward auction phase could make an upfront deposit of up to approximately $5.4 billion. On July 15, 2016, the FCC announced that a subsidiary of DISH Network and 61 other applicants were qualified to participate in the forward auction phase of Auction 1000. The forward auction phase is scheduled to commence on August 16, 2016. The FCC determined that bidding in Auction 1000 will be “anonymous,” which means that prior to and during the course of the auction, the FCC will not make public any information about a specific applicant’s upfront deposits or its bids. In addition, FCC rules restrict information that bidders may disclose about their participation in Auction 1000. In connection with the development of DISH Network’s wireless business, including without limitation the efforts described above, we have made cash distributions to partially finance these efforts to date and may make additional cash distributions to finance in whole or in part DISH Network’s future efforts. See Note 10 for further information regarding our dividends to DOC. There can be no assurance that DISH Network will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably deploy the assets represented by these wireless spectrum licenses. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses Through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network has made over $10.0 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. DISH Network may need to make significant additional loans to the Northstar Entities and to the SNR Entities, or they may need to partner with others, so that the Northstar Entities and the SNR Entities may commercialize, build-out and integrate the Northstar Licenses and the SNR Licenses, and comply with regulations applicable to the Northstar Licenses and the SNR Licenses. Depending upon the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such loans or partnerships could vary significantly. 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 10 “Commitments” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30 , 2016 for further information. Guarantees During the third quarter 2009, EchoStar entered into a satellite transponder service agreement for Nimiq 5 through 2024. We sublease this capacity from EchoStar and DISH Network guarantees a certain portion of EchoStar’s obligation under its satellite transponder service agreement through 2019. As of June 30, 2016, the remaining obligation of the DISH Network guarantee was $216 million. As of June 30, 2016, DISH Network has not recorded a liability on the balance sheet for this guarantee. 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. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties (as with many patent-related cases). For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period. California Institute of Technology On October 1, 2013, the California Institute of Technology (“Caltech”) filed complaints against DISH Network and its wholly-owned subsidiaries DISH Network L.L.C. and dishNET Satellite Broadband L.L.C., as well as Hughes Communications, Inc. and Hughes Network Systems, LLC, which are subsidiaries of EchoStar, in the United States District Court for the Central District of California. The complaint alleged infringement of United States Patent Nos. 7,116,710; 7,421,032; 7,916,781 and 8,284,833, each of which is entitled “Serial Concatenation of Interleaved Convolutional Codes forming Turbo-Like Codes.” Caltech alleged that encoding data as specified by the DVB-S2 standard infringed each of the asserted patents. In the operative Amended Complaint, served on March 6, 2014, Caltech claimed that our Hopper ® set-top box, as well as the Hughes defendants’ satellite broadband products and services, infringed the asserted patents by implementing the DVB-S2 standard. On May 5, 2015, the Court granted summary judgment in our favor as to the Hopper set-top box alleged in the complaint. On February 17, 2015, Caltech filed a new complaint in the United States District Court for the Central District of California, asserting the same patents against the same defendants. Caltech alleged that certain broadband equipment, including without limitation the HT1000 and HT1100 modems, gateway hardware, software and/or firmware that the Hughes defendants provide to, among others, us for our use in connection with the dishNET branded broadband service, infringed these patents. Pursuant to a settlement agreement between the parties, on May 31, 2016, Caltech dismissed with prejudice all of its claims in these actions. 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 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, entitled “Multimedia Content Navigation and Playback”; 7,526,784, entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318, entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970, entitled “Multimedia Content Navigation and Playback”; and 8,117,282, 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. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. CRFD Research, Inc. (a subsidiary of Marathon Patent Group, Inc.) On January 17, 2014, CRFD Research, Inc. (“CRFD”) filed a complaint against us, our wholly-owned subsidiary DISH Network L.L.C., DISH Network, EchoStar, and its wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 7,191,233 (the “233 patent”). The 233 patent is entitled “System for Automated, Mid-Session, User-Directed, Device-to-Device Session Transfer System,” and relates to transferring an ongoing software session from one device to another. CRFD alleges that our Hopper and Joey ® set-top boxes infringe the 233 patent. On the same day, CRFD filed similar complaints against AT&T Inc.; Comcast Corp.; DirecTV; Time Warner Cable Inc.; Cox Communications, Inc.; Akamai Technologies, Inc.; Cablevision Systems Corp. and Limelight Networks, Inc. CRFD is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On January 26, 2015, we and EchoStar filed a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 233 patent. The United States Patent and Trademark Office has agreed to institute a proceeding on our petition, as well as on two third-party petitions challenging the validity of certain claims of the 233 patent, and it heard oral argument on January 16, 2016. On June 1, 2016, the United States Patent and Trademark Office found that all claims asserted against us and the EchoStar parties were unpatentable. On July 5, 2016, CRFD filed a notice of appeal to the United States Court of Appeals for the Federal Circuit. The litigation in the District Court has been stayed since June 4, 2015 pending resolution of our petition to 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 patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. 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; United States Patent No. 9,053,494; United States Patent No. 7,840,437; and United States Patent No. 8,955,029. Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia appears to allege infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. Customedia is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Do Not Call Litigation On March 25, 2009, our wholly-owned subsidiary DISH Network L.L.C. was sued in a civil action by the United States Attorney General and several states in the United States District Court for the Central District of Illinois, alleging violations of the Telephone Consumer Protection Act and the Telemarketing Sales Rule (“TSR”), as well as analogous state statutes and state consumer protection laws. The plaintiffs allege that we, directly and through certain independent third-party retailers and their affiliates, committed certain telemarketing violations. On December 23, 2013, the plaintiffs filed a motion for summary judgment, which indicated for the first time that the state plaintiffs were seeking civil penalties and damages of approximately $270 million and that the federal plaintiff was seeking an unspecified amount of civil penalties (which could substantially exceed the civil penalties and damages being sought by the state plaintiffs). The plaintiffs were also seeking injunctive relief that if granted would, among other things, enjoin DISH Network L.L.C., whether acting directly or indirectly through authorized telemarketers or independent third-party retailers, from placing any outbound telemarketing calls to market or promote its goods or services for five years, and enjoin DISH Network L.L.C. from accepting activations or sales from certain existing independent third-party retailers and from certain new independent third-party retailers, except under certain circumstances. We also filed a motion for summary judgment, seeking dismissal of all claims. On December 12, 2014, the Court issued its opinion with respect to the parties’ summary judgment motions. The Court found that DISH Network L.L.C. is entitled to partial summary judgment with respect to one claim in the action. In addition, the Court found that the plaintiffs are entitled to partial summary judgment with respect to ten claims in the action, which includes, among other things, findings by the Court establishing DISH Network L.L.C.’s liability for a substantial amount of the alleged outbound telemarketing calls by DISH Network L.L.C. and certain of its independent third-party retailers that were the subject of the plaintiffs’ motion. The Court did not issue any injunctive relief and did not make any determination on civil penalties or damages, ruling instead that the scope of any injunctive relief and the amount of any civil penalties or damages are questions for trial. In pre-trial disclosures, the federal plaintiff indicated that it intended to seek up to $900 million in alleged civil penalties, and the state plaintiffs indicated that they intended to seek as much as $23.5 billion in alleged civil penalties and damages. The plaintiffs also modified their request for injunctive relief. Their requested injunction, if granted, would enjoin DISH Network L.L.C. from placing outbound telemarketing calls unless and until: (i) DISH Network L.L.C. hires a third-party consulting organization to perform a review of its call center operations; (ii) such third-party consulting organization submits a telemarketing compliance plan to the Court and the federal plaintiff; (iii) the Court holds a hearing on the adequacy of the plan; (iv) if the Court approves the plan, DISH Network L.L.C. implements the plan and verifies to the Court that it has implemented the plan; and (v) the Court issues an order permitting DISH Network L.L.C. to resume placing outbound telemarketing calls. The plaintiffs’ modified request for injunctive relief, if granted, would also enjoin DISH Network L.L.C. from accepting customer orders solicited by certain independent third-party retailers unless and until a similar third-party review and Court approval process was followed with respect to the telemarketing activities of its independent third-party retailer base to ensure compliance with the TSR. The first phase of the bench trial took place January 19, 2016 through February 11, 2016. In closing briefs, the federal plaintiff indicated that it still is seeking $900 million in alleged civil penalties; the California state plaintiff indicated that it is seeking $100 million in alleged civil penalties and damages for its state law claims (in addition to any amounts sought on its federal law claims); the Ohio state plaintiff indicated that it is seeking approximately $10 million in alleged civil penalties and damages for its state law claims (in addition to any amounts sought on its federal law claims); and the Illinois and North Carolina state plaintiffs did not state the specific alleged civil penalties and damages that they are seeking; but the state plaintiffs have taken the general position that any damages award less than $1.0 billion (presumably for both federal and state law claims) would not raise constitutional concerns. Under the Eighth Amendment of the U.S. Constitution, excessive fines may not be imposed. The Court scheduled a second phase of the bench trial for October 2016, which is planned to cover the plaintiffs’ requested injunctive relief, as well as DISH Network L.L.C.’s response to certain evidence that the state plaintiffs presented in the first phase. On April 20, 2016, the Court denied the federal plaintiff’s motion seeking to cancel the separate hearing on the plaintiffs’ requested injunctive relief . We may also from time to time be subject to private civil litigation alleging telemarketing violations. For example, a portion of the alleged telemarketing violations by an independent third-party retailer at issue in the case described in the previous paragraph are also the subject of a certified class action filed against DISH Network L.L.C. in the United States District Court for the Middle District of North Carolina. We intend to vigorously defend these cases. We cannot predict with any degree of certainty the outcome of these suits or determine the extent of any potential liability or damages. Dragon Intellectual Property, LLC On December 20, 2013, Dragon Intellectual Property, LLC (“Dragon IP”) filed complaints against our wholly-owned subsidiary DISH Network L.L.C., as well as Apple Inc.; AT&T, Inc.; Charter Communications, Inc.; Comcast Corp.; Cox Communications, Inc.; DirecTV; Sirius XM Radio Inc.; Time Warner Cable Inc. and Verizon Communications, Inc., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 5,930,444 (the “444 patent”), which is entitled “Simultaneous Recording and Playback Apparatus.” Dragon IP alleges that various of our DVR receivers infringe the 444 patent. Dragon IP is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On December 23, 2014, DISH Network L.L.C. filed a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 444 patent. On April 10, 2015, the Court granted DISH Network L.L.C.’s motion to stay the action in light of DISH Network L.L.C.’s petition and certain other defendants’ petitions pending before the United States Patent and Trademark Office challenging the validity of certain claims of the 444 patent. On July 17, 2015, the United States Patent and Trademark Office agreed to institute a proceeding on our petition. Pursuant to a stipulation between the parties, on April 27, 2016, the Court entered an order of non-infringement and judgment in favor of DISH Network L.L.C. On June 15, 2016, the United States Patent and Trademark Office entered an order that the patent claims being asserted against DISH Network L.L.C. with respect to the 444 patent are unpatentable. Dragon may seek to appeal the Court’s judgment and/or the United States Patent and Trademark Office’s decision. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Grecia On March 27, 2015, William Grecia (“Grecia”) filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of Illinois, alleging infringement of United States Patent No. 8,533,860 (the “860 patent”), which is entitled “Personalized Digital Media Access System—PDMAS Part II.” Grecia alleges that we violate the 860 patent in connection with our digital rights management. Grecia is the named inventor on the 860 patent. On June 22, 2015, the case was transferred to the United States District Court for the Northern District of California. On November 18, 2015, Grecia filed an amended complaint adding allegations that we infringe U.S. Patent No. 8,402,555 (the “555 patent”), which is entitled “Personalized Digital Media Access System (PDMAS).” Grecia is the named inventor on the 555 patent. Grecia alleges that we violate the 555 patent in connection with our digital rights management. Grecia dismissed his action with prejudice on February 3, 2016. On February 3, 2016, Grecia filed a new complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of California, alleging infringement of United States Patent No. 8,887,308 (the “308 patent”), which is entitled “Digital Cloud Access—PDMAS Part III,” on which Grecia is also the named inventor. Grecia alleges that we violate the 308 patent in connection with our DISH Anywhere feature. On June 10, 2016, DISH Network L.L.C. advised the Court that it intended to file a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 308 patent on or before July 31, 2016, and on June 13, 2016, the Court stayed the action pending the conclusion of that petition, including the exhaustion of any appeals. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Hopper Litigation On May 24, 2012, our wholly-owned subsidiary, DISH Network L.L.C., filed a lawsuit in the United States District Court for the Southern District of New York against American Broadcasting Companies, Inc.; CBS Corporation; Fox Entertainment Group, Inc.; Fox Television Holdings, Inc.; Fox Cable Network Services, L.L.C. and NBCUniversal, LLC. In the lawsuit, we sought a declaratory judgment that we are not infringing any defendant’s copyright, or breaching any defendant’s retransmission consent agreement, by virtue of the PrimeTime Anytime™ and AutoHop features of our Hopper set-top box. A consumer can use the PrimeTime Anytime feature, at his or her option, to record certain primetime programs airing on ABC, CBS, Fox, and/or NBC up to every night, and to store those recordings for up to eight days. A consumer can use the AutoHop feature, at his or her option, to watch certain recordings that the subscriber made with our PrimeTime Anytime feature, commercial-free, if played back at a certain point after the show’s original airing. Later on May 24, 2012, (i) Fox Broadcasting Company; Twentieth Century Fox Film Corp. and Fox Television Holdings, Inc. filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature, the AutoHop feature, as well as Slingbox placeshifting functionality infringe their copyrights and breach their retransmission consent agreements, (ii) NBC Studios LLC; Universal Network Television, LLC; Open 4 Business Productions LLC and NBCUniversal, LLC filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights, and (iii) CBS Broadcasting Inc.; CBS Studios Inc. and Survivor Productions LLC filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights. As a result of certain parties’ competing venue-related motions brought in both the New York and California actions, and certain networks’ filing various counterclaims and amended complaints, the claims have proceeded in the following venues: (1) the copyright and contract claims regarding the ABC and CBS parties in New York; and (2) the copyright and contract claims regarding the Fox and NBC parties in California. California Actions. The NBC plaintiffs and Fox plaintiffs filed amended complaints in their respective California actions, adding copyright claims against EchoStar and EchoStar Technologies L.L.C., a wholly-owned subsidiary of EchoStar. In addition, the Fox plaintiffs’ amended complaint added claims challenging the Hopper Transfers™ feature of our second-generation Hopper set-top box. On November 7, 2012, the California court denied the Fox plaintiffs’ motion for a preliminary injunction to enjoin the Hopper set-top box’s PrimeTime Anytime and AutoHop features, and the Fox plaintiffs appealed. On March 27, 2013, at the request of the parties, the Central District of California granted a stay of all proceedings in the action brought by the NBC plaintiffs, pending resolution of the appeal by the Fox plaintiffs. On July 24, 2013, the United States Court of Appeals for the Ninth Circuit affirmed the denial of the Fox plaintiffs’ motion for a preliminary injunction as to the PrimeTime Anytime and AutoHop features. On August 7, 2013, the Fox plaintiffs filed a petition for rehearing and rehearing en banc, which was denied on January 24, 2014. The United States Supreme Court granted the Fox plaintiffs an extension until May 23, 2014 to file a petition for writ of certiorari, but they did not file one. As a result, the stay of the NBC plaintiffs’ action expired. On August 6, 2014, at the request of the parties, the Central District of California granted a further stay of all proceedings in the action brought by the NBC plaintiffs, pending a final judgment on all claims in the Fox plaintiffs’ action. Pursuant to the settlement described below, t he Fox action was dismissed on February 11, 2016. On March 4, 2016, at the request of the parties, the Central District of California granted a further stay of all proceedings in the action brought by the NBC plaintiffs until September 9, 2016; provided that either party may file a motion with the Court to lift the stay after May 27, 2016. Pursuant to a settlement between us and the NBC plaintiffs, on June 16, 2016, we and the NBC plaintiffs filed a stipulation to dismiss with prejudice all of our respective claims pending in the California Court. The Court ordered such dismissal on June 20, 2016. In addition, on February 21, 2013, the Fox plaintiffs filed a second motion for preliminary injunction against: (i) us seeking to enjoin the Hopper Transfers feature in our second-generation Hopper set-top box, alleging breach of their retransmission consent agreement; and (ii) us and EchoStar Technologies L.L.C. seeking to enjoin the Slingbox placeshifting | 11. Commitments and Contingencies Commitments As of December 31, 2015, future maturities of our long-term debt, capital lease and contractual obligations are summarized as follows: Payments due by period Total 2016 2017 2018 2019 2020 Thereafter (In thousands) Long-term debt obligations $ $ $ $ $ $ $ Capital lease obligations Interest expense on long-term debt and capital lease obligations Satellite-related obligations Operating lease obligations Purchase obligations Total $ $ $ $ $ $ $ In certain circumstances the dates on which we are obligated to make these payments could be delayed. These amounts will increase to the extent that we procure launch and/or in-orbit insurance on our satellites or contract for the construction, launch or lease of additional satellites. The table above does not include $202 million of liabilities associated with unrecognized tax benefits that were accrued, as discussed in Note 8, and are included on our Consolidated Balance Sheets as of December 31, 2015. We do not expect any portion of this amount to be paid or settled within the next twelve months. DISH Network Spectrum DISH Network has invested over $5.0 billion since 2008 to acquire certain wireless spectrum licenses and related assets. 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. 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. For example, on February 10, 2016, DISH Network filed an application with the FCC to potentially participate as a bidder in the upcoming broadcast television spectrum incentive auction (“Auction 1000”). Auction 1000 is scheduled to begin on March 29, 2016. In connection with the development of DISH Network’s wireless business, including without limitation the efforts described above, we have made cash distributions to partially finance these efforts to date and may make additional cash distributions to finance in whole or in part DISH Network’s future efforts. See Note 15 in the Notes to our Consolidated Financial Statements in this Annual Report on Form 10-K for further information regarding our dividends to DOC. There can be no assurance that DISH Network will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably deploy the assets represented by these wireless spectrum licenses. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses Through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network has made over $10.0 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. DISH Network may need to make significant additional loans to the Northstar Entities and to the SNR Entities, or they may need to partner with others, so that the Northstar Entities and the SNR Entities may commercialize, build-out and integrate the Northstar Licenses and the SNR Licenses, and comply with regulations applicable to the Northstar Licenses and the SNR Licenses. Depending upon the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such loans or partnerships could vary significantly. 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 “Item 1A. Risk Factors – We have made substantial investments to acquire certain wireless spectrum licenses and other related assets. In addition, we have made substantial non-controlling investments in the Northstar Entities and the SNR Entities related to AWS-3 wireless spectrum licenses ” in DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2015 for further information. Guarantees During the third quarter 2009, EchoStar entered into a satellite transponder service agreement for Nimiq 5 through 2024. We sublease this capacity from EchoStar and DISH Network guarantees a certain portion of EchoStar’s obligation under its satellite transponder service agreement through 2019. As of December 31, 2015, the remaining obligation of the DISH Network guarantee was $248 million. As of December 31, 2015, we have not recorded a liability on the balance sheet for this guarantee. Purchase Obligations Our 2016 purchase obligations primarily consist of binding purchase orders for receiver systems and related equipment, digital broadcast operations, transmission costs, engineering services, and other products and services related to the operation of our Pay-TV services. O ur purchase obligations also include certain fixed contractual commitments to purchase programming content. 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 continue to increase to the extent we are successful in growing our Pay-TV subscriber base. In addition, programming costs 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 $477 million, $468 million and $303 million in 2015, 2014 and 2013, respectively. Rent expense in 2014 increased as a result of the Satellite and Tracking Stock Transaction. See Note 4 and Note 15 for further information. 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 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. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties (as with many patent-related cases). For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period. California Institute of Technology On October 1, 2013, the California Institute of Technology (“Caltech”) filed complaints against DISH Network and its wholly-owned subsidiaries DISH Network L.L.C. and dishNET Satellite Broadband L.L.C., as well as Hughes Communications, Inc. and Hughes Network Systems, LLC, which are subsidiaries of EchoStar, in the United States District Court for the Central District of California. The complaint alleges infringement of United States Patent Nos. 7,116,710; 7,421,032; 7,916,781 and 8,284,833, each of which is entitled “Serial Concatenation of Interleaved Convolutional Codes forming Turbo-Like Codes.” Caltech alleges that encoding data as specified by the DVB-S2 standard infringes each of the asserted patents. In the operative Amended Complaint, served on March 6, 2014, Caltech claims that our Hopper ® set-top box, as well as the Hughes defendants’ satellite broadband products and services, infringe the asserted patents by implementing the DVB-S2 standard. On May 5, 2015, the Court granted summary judgment in our favor as to the Hopper set-top box alleged in the complaint. On February 17, 2015, Caltech filed a new complaint in the United States District Court for the Central District of California, asserting the same patents against the same defendants. Caltech alleges that certain broadband equipment, including without limitation the HT1000 and HT1100 modems, gateway hardware, software and/or firmware that the Hughes defendants provide to, among others, us for our use in connection with the dishNET branded broadband service, infringes these patents. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. 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 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, entitled “Multimedia Content Navigation and Playback”; 7,526,784, entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318, entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970, entitled “Multimedia Content Navigation and Playback”; and 8,117,282, 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. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. CRFD Research, Inc. (a subsidiary of Marathon Patent Group, Inc.) On January 17, 2014, CRFD Research, Inc. (“CRFD”) filed a complaint against us, our wholly-owned subsidiary DISH Network L.L.C., DISH Network, EchoStar, and its wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 7,191,233 (the “233 patent”). The 233 patent is entitled “System for Automated, Mid-Session, User-Directed, Device-to-Device Session Transfer System,” and relates to transferring an ongoing software session from one device to another. CRFD alleges that our Hopper and Joey ® set-top boxes infringe the 233 patent. On the same day, CRFD filed similar complaints against AT&T Inc.; Comcast Corp.; DirecTV; Time Warner Cable Inc.; Cox Communications, Inc.; Akamai Technologies, Inc.; Cablevision Systems Corp. and Limelight Networks, Inc. CRFD is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On January 26, 2015, we and EchoStar filed a petition before the United States Patent and Trademark Office challenging the validity of the 233 patent. The United States Patent and Trademark Office has agreed to institute a proceeding on our petition, as well as on two third-party petitions challenging the validity of the 233 patent, and it heard oral argument on January 16, 2016. On June 4, 2015, the litigation in the District Court was ordered stayed pending resolution of the proceeding 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 patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. 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; United States Patent No. 9,053,494; United States Patent No. 7,840,437; and United States Patent No. 8,955,029. Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia appears to allege infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. Customedia is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Custom Media Technologies LLC On August 15, 2013, Custom Media Technologies LLC (“Custom Media”) filed complaints against DISH Network; AT&T Inc.; Charter Communications, Inc.; Comcast Corp.; Cox Communications, Inc.; DirecTV; Time Warner Cable Inc. and Verizon Communications, Inc., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 6,269,275 (the “275 patent”). The 275 patent, which is entitled “Method and System for Customizing and Distributing Presentations for User Sites,” relates to the provision of customized presentations to viewers over a network, such as “a cable television network, an Internet or other computer network, a broadcast television network, and/or a satellite system.” Custom Media alleges that our DVR devices and DVR functionality infringe the 275 patent. Custom Media is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. Pursuant to a stipulation between the parties, on November 6, 2013, the Court entered an order substituting DISH Network L.L.C., our wholly-owned subsidiary, as the defendant in DISH Network’s place. On August 26, 2015, Custom Media dismissed its action against us with prejudice. Do Not Call Litigation On March 25, 2009, our wholly-owned subsidiary DISH Network L.L.C. was sued in a civil action by the United States Attorney General and several states in the United States District Court for the Central District of Illinois, alleging violations of the Telephone Consumer Protection Act and the Telemarketing Sales Rule, as well as analogous state statutes and state consumer protection laws. The plaintiffs allege that we, directly and through certain independent third-party retailers and their affiliates, committed certain telemarketing violations. On December 23, 2013, the plaintiffs filed a motion for summary judgment, which indicated for the first time that the state plaintiffs were seeking civil penalties and damages of approximately $270 million and that the federal plaintiff was seeking an unspecified amount of civil penalties (which could substantially exceed the civil penalties and damages being sought by the state plaintiffs). The plaintiffs are also seeking injunctive relief that if granted would, among other things, enjoin DISH Network L.L.C., whether acting directly or indirectly through authorized telemarketers or independent third-party retailers, from placing any outbound telemarketing calls to market or promote its goods or services for five years, and enjoin DISH Network L.L.C. from accepting activations or sales from certain existing independent third-party retailers and from certain new independent third-party retailers, except under certain circumstances. We also filed a motion for summary judgment, seeking dismissal of all claims. On December 12, 2014, the Court issued its opinion with respect to the parties’ summary judgment motions. The Court found that DISH Network L.L.C. is entitled to partial summary judgment with respect to one claim in the action. In addition, the Court found that the plaintiffs are entitled to partial summary judgment with respect to ten claims in the action, which includes, among other things, findings by the Court establishing DISH Network L.L.C.’s liability for a substantial amount of the alleged outbound telemarketing calls by DISH Network L.L.C. and certain of its independent third-party retailers that were the subject of the plaintiffs’ motion. The Court did not issue any injunctive relief and did not make any determination on civil penalties or damages, ruling instead that the scope of any injunctive relief and the amount of any civil penalties or damages are questions for trial. In pre-trial disclosures, the federal plaintiff indicated that it intends to seek up to $900 million in alleged civil penalties, and the state plaintiffs indicated that they intend to seek $23.5 billion in alleged civil penalties and damages. The first phase of the bench trial took place January 19, 2016 through February 11, 2016. In closing briefs, the federal plaintiff indicated that it is seeking $900 million in alleged civil penalties; the California state plaintiff indicated that it is seeking $100 million in alleged civil penalties and damages; the Ohio state plaintiff indicated that it is seeking approximately $10 million in alleged civil penalties and damages; and the Illinois and North Carolina state plaintiffs did not state the specific alleged civil penalties and damages that they are seeking. The Court will conduct a second phase of the bench trial in October 2016, which we anticipate will cover the plaintiffs’ requested injunctive relief, as well as DISH Network L.L.C.’s response to certain evidence presented by the plaintiffs in the first phase. We may also from time to time be subject to private civil litigation alleging telemarketing violations. For example, a portion of the alleged telemarketing violations at issue in the case described in the previous paragraph are also the subject of a certified class action filed against DISH Network L.L.C. in the United States District Court for the Middle District of North Carolina. We intend to vigorously defend these cases. We cannot predict with any degree of certainty the outcome of these suits or determine the extent of any potential liability or damages. Dragon Intellectual Property, LLC On December 20, 2013, Dragon Intellectual Property, LLC (“Dragon IP”) filed complaints against our wholly-owned subsidiary DISH Network L.L.C., as well as Apple Inc.; AT&T, Inc.; Charter Communications, Inc.; Comcast Corp.; Cox Communications, Inc.; DirecTV; Sirius XM Radio Inc.; Time Warner Cable Inc. and Verizon Communications, Inc., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 5,930,444 (the “444 patent”), which is entitled “Simultaneous Recording and Playback Apparatus.” Dragon IP alleges that various of our DVR receivers infringe the 444 patent. Dragon IP is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On December 23, 2014, DISH Network L.L.C. filed a petition before the United States Patent and Trademark Office challenging the validity of the 444 patent. On April 10, 2015, the Court granted DISH Network L.L.C.’s motion to stay the action in light of DISH Network L.L.C.’s petition and certain other defendants’ petitions pending before the United States Patent and Trademark Office challenging the validity of the 444 patent. On July 17, 2015, the United States Patent and Trademark Office agreed to institute a proceeding on our petition, and it heard oral argument on February 9, 2016. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Grecia On March 27, 2015, William Grecia (“Grecia”) filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of Illinois, alleging infringement of United States Patent No. 8,533,860 (the “860 patent”), which is entitled “Personalized Digital Media Access System—PDMAS Part II.” Grecia alleges that we violate the 860 patent in connection with our digital rights management. Grecia is the named inventor on the 860 patent. On June 22, 2015, the case was transferred to the United States District Court for the Northern District of California. On November 18, 2015, Grecia filed an amended complaint adding allegations that we infringe U.S. Patent No. 8,402,555 (the “555 patent”), which is entitled “Personalized Digital Media Access System (PDMAS).” Grecia is the named inventor on the 555 patent. Grecia alleges that we violate the 555 patent in connection with our digital rights management. Grecia dismissed his action with prejudice on February 3, 2016. On February 3, 2016, Grecia filed a new complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of California, alleging infringement of United States Patent No. 8,887,308 (the “308 patent”), which is entitled “Digital Cloud Access—PDMAS Part III,” on which Grecia is also the named inventor. Grecia alleges that we violate the 308 patent in connection with our DISH Anywhere feature. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Hopper Litigation On May 24, 2012, our wholly-owned subsidiary, DISH Network L.L.C., filed a lawsuit in the United States District Court for the Southern District of New York against American Broadcasting Companies, Inc.; CBS Corporation; Fox Entertainment Group, Inc.; Fox Television Holdings, Inc.; Fox Cable Network Services, L.L.C. and NBCUniversal, LLC. In the lawsuit, we sought a declaratory judgment that we are not infringing any defendant’s copyright, or breaching any defendant’s retransmission consent agreement, by virtue of the PrimeTime Anytime™ and AutoHop™ features of our Hopper set-top box. A consumer can use the PrimeTime Anytime feature, at his or her option, to record certain primetime programs airing on ABC, CBS, Fox, and/or NBC up to every night, and to store those recordings for up to eight days. A consumer can use the AutoHop feature, at his or her option, to watch certain recordings that the subscriber made with our PrimeTime Anytime feature, commercial-free, if played back at a certain point after the show’s original airing. Later on May 24, 2012, (i) Fox Broadcasting Company; Twentieth Century Fox Film Corp. and Fox Television Holdings, Inc. filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature, the AutoHop feature, as well as Slingbox placeshifting functionality infringe their copyrights and breach their retransmission consent agreements, (ii) NBC Studios LLC; Universal Network Television, LLC; Open 4 Business Productions LLC and NBCUniversal, LLC filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights, and (iii) CBS Broadcasting Inc.; CBS Studios Inc. and Survivor Productions LLC filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights. As a result of certain parties’ competing venue-related motions brought in both the New York and California actions, and certain networks’ filing various counterclaims and amended complaints, the claims have proceeded in the following venues: (1) the copyright and contract claims regarding the ABC and CBS parties in New York; and (2) the copyright and contract claims regarding the Fox and NBC parties in California. California Actions. The NBC plaintiffs and Fox plaintiffs filed amended complaints in their respective California actions, adding copyright claims against EchoStar and EchoStar Technologies L.L.C., a wholly-owned subsidiary of EchoStar. In addition, the Fox plaintiffs’ amended complaint added claims challenging the Hopper Transfers™ feature of our second-generation Hopper set-top box. On November 7, 2012, the California court denied the Fox plaintiffs’ motion for a preliminary injunction to enjoin the Hopper set-top box’s PrimeTime Anytime and AutoHop features, and the Fox plaintiffs appealed. On March 27, 2013, at the request of the parties, the Central District of California granted a stay of all proceedings in the action brought by the NBC plaintiffs, pending resolution of the appeal by the Fox plaintiffs. On July 24, 2013, the United States Court of Appeals for the Ninth Circuit affirmed the denial of the Fox plaintiffs’ motion for a preliminary injunction as to the PrimeTime Anytime and AutoHop features. On August 7, 2013, the Fox plaintiffs filed a petition for rehearing and rehearing en banc, which was denied on January 24, 2014. The United States Supreme Court granted the Fox plaintiffs an extension until May 23, 2014 to file a petition for writ of certiorari, but they did not file one. As a result, the stay of the NBC plaintiffs’ action expired. On August 6, 2014, at the request of the parties, the Central District of California granted a further stay of all proceedings in the action brought by the NBC plaintiffs, pending a final judgment on all claims in the Fox plaintiffs’ action. The Fox action was dismissed on February 11, 2016. On March 4, 2016, at the request of the parties, the Central District of California granted a further stay of all proceedings in the action brought by the NBC plaintiffs until September 9, 2016; provided that either party may file a motion with the Court to lift the stay after May 27, 2016. No trial date is currently set on the NBC claims. In addition, on February 21, 2013, the Fox plaintiffs filed a second motion for prelimina |
Financial Information for Subsi
Financial Information for Subsidiary Guarantors | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Financial Information for Subsidiary Guarantors | ||
Financial Information for Subsidiary Guarantors | 9. 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. | 12. Financial Information for Subsidiary Guarantors Our senior notes are fully, unconditionally and jointly and severally guaranteed by all of our subsidiaries other than minor subsidiaries and the stand alone entity DISH DBS has no independent assets or operations. Therefore, supplemental financial information on a condensed consolidating basis of the guarantor subsidiaries is not required. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the guarantor subsidiaries, except those imposed by applicable law. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | 13. Valuation and Qualifying Accounts Our valuation and qualifying accounts as of December 31, 2015, 2014 and 2013 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, 2015 $ $ $ $ December 31, 2014 $ $ $ $ December 31, 2013 $ $ $ $ |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data (Unaudited) | |
Quarterly Financial Data (Unaudited) | 14. 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, 2015: Total revenue $ $ $ $ Operating income (loss) Net income (loss) attributable to DISH DBS Year ended December 31, 2014: Total revenue $ $ $ $ Operating income (loss) Net income (loss) attributable to DISH DBS |
Related Party Transactions
Related Party Transactions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Related Party Transactions | ||
Related Party Transactions | 10. Related Party Transactions Related Party Transactions with DISH Network On June 30, 2016, we paid a dividend of $1.5 billion to DOC. On February 12, 2015, we paid a dividend of $8.250 billion to DOC for, among other things, general corporate purposes, which included certain funding obligations related to DISH Network’s non-controlling debt and equity investments in the Northstar Entities and the SNR Entities, and to fund other DISH Network cash needs. Advertising Sales. We provide advertising services to DISH Network’s broadband business. During the three months ended June 30, 2015, we received revenue associated with these services of $2 million in “Subscriber-related revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). During the three months ended June 30, 2016, we received no revenue associated with these services. During the six months ended June 30, 2016 and 2015, we received revenue associated with these services of $2 million and $6 million, respectively, 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, 2016 and 2015, the costs associated with these services were $18 million and $18 million, respectively. During the six months ended June 30, 2016 and 2015, the costs associated with these services were $36 million and $41 million, respectively. Related Party Transactions with EchoStar Following the Spin-off, DISH Network and EchoStar have operated as separate publicly-traded companies, and, except for the Satellite and Tracking Stock Transaction and Sling TV Holding described below, 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 Chief Executive Officer, and by certain trusts established by Mr. Ergen for the benefit of his family. EchoStar is our primary supplier of set-top boxes and digital broadcast operations and a supplier of the vast majority of our transponder capacity. Generally, the amounts we pay EchoStar for products and services are based on pricing equal to EchoStar’s cost plus a fixed margin (unless noted differently below), which will vary depending on the nature of the products and services provided. 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. 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, 2016 and December 31, 2015, trade accounts receivable from EchoStar was $18 million and $23 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Condensed Consolidated Balance Sheets . “Trade accounts payable” As of June 30, 2016 and December 31, 2015, trade accounts payable to EchoStar was $316 million and $263 million, respectively. These amounts are recorded in “Trade accounts payable” on our Condensed Consolidated Balance Sheets . “Equipment sales and other revenue” During the three months ended June 30, 2016 and 2015 , we received less than $1 m illion and $13 million , respectively, for equipment sales and other revenue from EchoStar. During the six months ended June 30, 2016 and 2015 , we received less than $1 million and $26 million , respectively, for equipment sales and other revenue from 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. Remanufactured Receiver and Services Agreement. We entered into a remanufactured receiver and services agreement with EchoStar pursuant to which EchoStar has the right, but not the obligation, to purchase remanufactured receivers and accessories from us at cost plus a fixed margin, which varies depending on the nature of the equipment purchased. In November 2015, we and EchoStar extended this agreement until December 31, 2016. EchoStar may terminate the remanufactured receiver and services agreement for any reason upon at least 60 days notice to us. We may also terminate this agreement if certain entities acquire us. Satellite Capacity Leased to EchoStar. Since the Spin-off, we have entered into certain satellite capacity agreements pursuant to which EchoStar leases certain capacity on certain satellites owned by us. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. The term of each lease is set forth below: · EchoStar XV. During May 2013, we began leasing satellite capacity to EchoStar on EchoStar XV and relocated the satellite for testing at EchoStar’s Brazilian authorization at the 45 degree orbital location. Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days notice. This lease terminated in November 2015 and EchoStar relocated this satellite from the 45 degree orbital location back to the 61.5 degree orbital location where it currently serves as an in-orbit spare. Real Estate Lease Agreements. Since the Spin-off, 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 leased 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. “Subscriber-related expenses” During the three months ended June 30, 2016 and 2015, we incurred $2 million and $3 million, respectively, for subscriber-related expenses from EchoStar. During the six months ended June 30, 2016 and 2015, we incurred $5 million and $6 million, respectively, for subscriber-related expenses from EchoStar. These amounts are recorded in “Subscriber-related expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. SlingService Services Agreement . Effective February 23, 2010, we entered into an agreement with EchoStar pursuant to which we receive certain services related to placeshifting, which is used for, among other things, the DISH Anywhere mobile application. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement renewed on February 23, 2016 for an additional one -year period until February 23, 2017. This agreement may be terminated for any reason upon at least 120 days notice to EchoStar. DISH Remote Access Services Agreement . Effective February 23, 2010, we entered into an agreement with EchoStar pursuant to which we receive, among other things, certain remote DVR management services. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement renewed on February 23, 2016 for an additional one -year period until February 23, 2017. This agreement may be terminated for any reason upon at least 120 days notice to EchoStar. “Satellite and transmission expenses” During the three months ended June 30, 2016 and 2015, we incurred $168 million and $183 million, respectively, for satellite and transmission expenses from EchoStar. During the six months ended June 30, 2016 and 2015, we incurred $332 million and $358 million, respectively, for satellite and transmission expenses from EchoStar. 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. Broadcast Agreement. Effective January 1, 2012, we and EchoStar entered into a broadcast agreement (the “2012 Broadcast Agreement”) pursuant to which EchoStar provides broadcast services to us, including teleport services such as transmission and downlinking, channel origination services, and channel management services, for the period from January 1, 2012 to December 31, 2016. The fees for services provided under the 2012 Broadcast Agreement are calculated at either: (a) EchoStar’s cost of providing the relevant service plus a fixed dollar fee, which is subject to certain adjustments; or (b) EchoStar’s cost of providing the relevant service plus a fixed margin, which will depend on the nature of the services provided. We have the ability to terminate channel origination services and channel management services for any reason and without any liability upon at least 60 days notice to EchoStar. If we terminate the teleport services provided under the 2012 Broadcast Agreement for a reason other than EchoStar’s breach, we are generally obligated to reimburse EchoStar for any direct costs EchoStar incurs related to any such termination that it cannot reasonably mitigate. Broadcast Agreement for Certain Sports Related Programming. During May 2010, we and EchoStar entered into a broadcast agreement pursuant to which EchoStar provides certain broadcast services to us in connection with our carriage of certain sports related programming. The term of this agreement is for ten years. If we terminate this agreement for a reason other than EchoStar’s breach, we are generally obligated to reimburse EchoStar for any direct costs EchoStar incurs related to any such termination that it cannot reasonably mitigate. The fees for the broadcast services provided under this agreement depend, among other things, upon the cost to develop and provide such services. Satellite Capacity Leased from EchoStar . Since the Spin-off, we have entered into certain satellite capacity agreements pursuant to which we lease certain capacity on certain satellites owned or leased by EchoStar. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: · EchoStar I, VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar I, VII, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. The satellite capacity agreement for EchoStar I expired on November 30, 2015. · EchoStar VIII. During May 2013, we began leasing capacity from EchoStar on EchoStar VIII as an in-orbit spare . Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days notice. This lease terminated in November 2015. · EchoStar IX . We lease certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally have the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis. · EchoStar XII. The lease for EchoStar XII generally terminates upon the earlier of: (i) the end-of-life or replacement of the satellite (unless we determine to renew on a year-to-year basis); (ii) the date the satellite fails; (iii) the date the transponders on which service is being provided fails; or (iv) a certain date, which depends upon, among other things, the estimated useful life of the satellite, whether the replacement satellite fails at launch or in orbit prior to being placed into service and the exercise of certain renewal options. We generally have the option to renew the lease on a year-to-year basis through the end of the satellite’s life. There can be no assurance that any options to renew this agreement will be exercised. · EchoStar XVI. During 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 during 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. During 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 have the option to renew for an additional five -year period. Prior to expiration of the initial term, EchoStar also has the right, upon certain conditions, to renew for an additional five -year period. If either we or EchoStar exercise our respective five-year renewal options, then we have the option to renew for an additional five -year period prior to expiration of the then-current term. There can be no assurance that any options to renew this agreement will be exercised. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen -year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”) . During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we currently receive service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. DISH Network has also guaranteed certain obligations of EchoStar under the Telesat Transponder Agreement. See discussion under “Guarantees” in Note 8. Under the terms of the DISH Nimiq 5 Agreement, we make certain monthly payments to EchoStar that commenced in September 2009 when the Nimiq 5 satellite was placed into service and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we have the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Upon in ‑orbit failure or end-of-life of the Nimiq 5 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the DISH Nimiq 5 Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten -year satellite service agreement with SES Latin America S.A. (“SES”), which provides, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite. During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we receive service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location while we and EchoStar explored alternative uses for the QuetzSat-1 satellite. In the interim, EchoStar provided us with alternate capacity at the 77 degree orbital location. During the first quarter 2013, we and EchoStar entered into an agreement pursuant to which we sublease five DBS transponders back to EchoStar. During January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the QuetzSat-1 Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. Upon an in ‑orbit failure or end-of-life of the QuetzSat-1 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the QuetzSat-1 Transponder Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. 103 Degree Orbital Location/SES-3. During 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”). During June 2013, we and EchoStar entered into a spectrum development agreement (the “DISH 103 Spectrum Development Agreement”) pursuant to which we may use and develop the 103 Spectrum Rights. Unless earlier terminated under the terms and conditions of the DISH 103 Spectrum Development Agreement, the term generally will continue for the duration of the 103 Spectrum Rights. In connection with the 103 Spectrum Development Agreement, during 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”). During June 2013, we and EchoStar entered into an agreement pursuant to which we lease certain satellite capacity from EchoStar on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, we make certain monthly payments to EchoStar through the service term. Unless earlier terminated under the terms and conditions of the DISH 103 Service Agreement, the initial service term will expire on the earlier of: (i) the date the SES-3 satellite fails; (ii) the date the transponder(s) on which service was being provided under the agreement fails; or (iii) ten years following the actual service commencement date. Upon in-orbit failure or end-of-life of the SES-3 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that we will exercise our option to receive service on a replacement satellite. TT&C Agreement. Effective January 1, 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we receive TT&C services from EchoStar for certain satellites for a period ending on December 31, 2016 (the “2012 TT&C Agreement”). The fees for services provided under the 2012 TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We are able to terminate the 2012 TT&C Agreement for any reason upon 60 days notice. DISHOnline.com Services Agreement. Effective January 1, 2010, we entered into a two -year agreement with EchoStar pursuant to which we receive certain services associated with an online video portal. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. We have the option to renew this agreement for successive one year terms and the agreement may be terminated for any reason upon at least 120 days notice to EchoStar. In November 2015, we exercised our right to renew this agreement for a one -year period ending on December 31, 2016. Sling TV Holding. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding to us. Effective July 1, 2012, DISH Network and EchoStar formed Sling TV Holding, which was owned two -thirds by DISH Network and one -third by EchoStar and was consolidated into DISH Network’s financial statements beginning July 1, 2012. Sling TV Holding was formed to develop and commercialize certain advanced technologies. At that time, DISH Network, EchoStar and Sling TV Holding entered into the following agreements with respect to Sling TV Holding: (i) a contribution agreement pursuant to which DISH Network and EchoStar contributed certain assets in exchange for its respective ownership interests in Sling TV Holding; (ii) a limited liability company operating agreement (the “Operating Agreement”), which provides for the governance of Sling TV Holding; and (iii) a commercial agreement (the “Commercial Agreement”) pursuant to which, among other things, Sling TV Holding has: (a) certain rights and corresponding obligations with respect to its business; and (b) the right, but not the obligation, to receive certain services from DISH Network and EchoStar, respectively. Since this was a formation of an entity under common control and a step-up in basis was not allowed, each party’s contributions were recorded at historical book value for accounting purposes. Effective August 1, 2014, EchoStar and Sling TV Holding entered into the Exchange Agreement pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. We now have a ninety percent equity interest and a 100% voting interest in Sling TV Holding. In addition, we, EchoStar and Sling TV Holding amended and restated the Operating Agreement, primarily to reflect the changes implemented by the Exchange Agreement. Finally, we, EchoStar and Sling TV Holding amended and restated the Commercial Agreement, pursuant to which, among other things, Sling TV Holding: (1) continues to have certain rights and corresponding obligations with respect to its business; (2) continues to have the right, but not the obligation, to receive certain services from us and EchoStar; and (3) has a license from EchoStar to use certain of the assets distributed to EchoStar as part of the Exchange Agreement. Sling TV Holding operates, through its subsidiary Sling TV L.L.C., the Sling TV services. Since the Exchange Agreement is among entities under common control, we recorded the difference between the historical cost basis of the assets transferred to EchoStar and our historical cost basis in EchoStar’s one-third noncontrolling interest in Sling TV Holding as a $6 million, net of deferred taxes, capital distribution in “Additional paid-in capital” on our Condensed Consolidated Balance Sheets. In addition, we recorded the initial fair value of EchoStar’s ten percent non-voting interest as a $14 million, net of deferred taxes, deemed distribution in “Additional paid-in capital” on our Condensed Consolidated Balance Sheets . EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal has been determined to be probable of achievement. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes, on our Condensed Consolidated Balance Sheets. Subsequent to the Exchange Agreement, the operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). “General and administrative expenses” During the three months ended June 30, 2016 and 2015, we incurred $25 million and $23 million, respectively, for general and administrative expenses from EchoStar. During the six months ended June 30, 2016 and 2015, we incurred $47 million and $43 million , respectively, for general and administrative expenses from 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. Product Support Agreement. In connection with the Spin-off, we entered into a product support agreement pursuant to which we have the right, but not the obligation, to receive product support from EchoStar (including certain engineering and technical support services) for all set-top boxes and related accessories that EchoStar has previously sold and in the future may sell to us. The fees for the services provided under the product support agreement are calculated at cost plus a fixed margin, which varies depending on the nature of the services provided. The term of the product support agreement is the economic life of such receivers and related accessories, unless terminated earlier. We may terminate the product support agreement for any reason upon at least 60 days notice. In the event of an early termination of this agreement, we are entitled to a refund of any unearned fees paid to EchoStar for the services. 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: · Inverness Lease Agreement. The lease for certain space at 90 Inverness Circle East in Englewood, Colorado is for a period ending on December 31, 2016. This agreement can be terminated by either party upon six months prior notice. In February 2016, we provided notice to EchoStar to terminate this lease effective August 10, 2016. · Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado is for a period ending on December 31, 2016. · Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado is for a period ending on December 31, 2016. · EchoStar Data Networks Sublease Agreement . The sublease for certain space at 211 Perimeter Center in Atlanta, Georgia is for a period ending on October 31, 2016. · Gilbert Lease Agreement. Effective August 1, 2014, we began leasing certain space from EchoStar at 801 N. DISH Dr. in Gilbert, Arizona for a period endi ng on July 31, 2016. We also have renewal options for three additional one -year terms. · Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. Application Development Agreement. During the fourth quarter 2012, we and EchoStar entered into a set-top box application development agreement (the “Application Development Agreement”) pursuant to which EchoStar provides us with certain services relating to the development of web-based applications for set-top boxes for a period ending on February 1, 2017. The Application Development Agreement renews automatically for successive one -year periods thereafter, unless terminated earlier by us or EchoStar at any time upon at least 90 days notice. The fees for services provided under the Application Development Agreement are calculated at EchoStar’s cost of providing the relevant service plus a fixed margin, which will depend on the nature of the services provided. XiP Encryption Agreement. During the third quarter 2012, we entered into an encryption agreement with EchoStar for our whole-home HD DVR line of set-top boxes (the “XiP Encryption Agreement”) pursuant to which EchoStar provides certain security measures on our whole-home HD DVR line of set-top boxes to encrypt the content delivered to the set-top box via a smart card and secure the content between set-top boxes. The initial term of the XiP Encryption Agreement was for a period until December 31, 2014. Under the XiP Encryption Agreement, we had the option, but not the obligation, to extend the XiP Encryption Agreement for one additional year upon 180 days notice prior to the end of the term. On May 5, 2014, we provided EchoStar notice to extend the XiP Encryption Agreement for one additional year until December 31, 2015. On November 4, 2015, we and EchoStar extended the term of the XiP Encryption Agreement for one additional year until December 31, 2016. We and EchoStar each have the right to terminate the XiP Encryption Agreement for any reason upon at least 30 days notice and 180 days notice, respectively. The fees for the services provided under the XiP Encryption Agreement are calculated on a monthly basis based on the number of receivers utilizing such security measures each month. Sling Trademark License Agreement. On December 31, 2014, Sling TV L.L.C. entered into an agreement with Sling Media, Inc., a subsidiary of EchoStar, pursuant to which we have the right for a fixed fee to use certain trademarks, domain names and other intellectual property related to the “Sling” trademark for a period ending on December 31, 2016. Professional Services Agreement . Prior to 2010, in connection with the Spin-off, DISH Network entered into various agreements with EchoStar including the Transition Services Agreement, Satellite Procurement Agreement and Services Agreement, which all expired on January 1, 2010 and were replaced by a Professional Services Agreement. During 2009, DISH Network and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Additionally, DISH Network and EchoStar agreed that DISH Network shall continue to have the right, but not the obligation, to engage EchoStar to manage the process of procuring ne | 15. Related Party Transactions Related Party Transactions with DISH Network On February 12, 2015, we paid a dividend of $8.250 billion to DOC for, among other things, general corporate purposes, which included certain funding obligations related to DISH Network’s non-controlling equity and debt investments in the Northstar Entities and the SNR Entities, and to fund other DISH Network cash needs. On October 14, 2014, we paid a dividend of $1.5 billion to DOC in connection with, among other things, DISH Network’s general corporate purposes. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding to us. We recorded all of the assets and liabilities at historical cost and the difference was recorded as a deemed distribution in “Stockholder’s equity (deficit)” on our Consolidated Balance Sheets. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014. On March 28, 2014, we paid a dividend of $650 million to DOC in connection with, among other things, the funding of certain payments by DISH Network related to its winning bid for all 176 wireless spectrum licenses in the H Block auction. Blockbuster. On April 26, 2011, our parent, DISH Network, completed the acquisition of most of the assets of Blockbuster, Inc. During the year ended December 31, 2013, we recorded $11 million of “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss) for Blockbuster services provided to our subscribers related to certain of our promotions. As of December 31, 2013, Blockbuster had ceased material operations. As a result, during the years ended December 31, 2015 and 2014, respectively, we did not record any expense related to these services. Advertising Sales. We provide advertising services to DISH Network’s broadband business. During the years ended December 31, 2015, 2014 and 2013, we received revenue associated with these services of $10 million, $18 million and $15 million, respectively, in “Subscriber-related revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Broadband, Wireless and Other Operations. We provide certain administrative support such as legal, information systems, marketing, human resources, accounting and finance services to DISH Network’s broadband, Wireless and other operations. In addition, we provide call center, installation and other services to DISH Network for its broadband business. During the years ended December 31, 2015, 2014 and 2013, the costs associated with these services were $14 million, $12 million and $10 million, respectively. Related Party Transactions with EchoStar Following the Spin-off, DISH Network and EchoStar have operated as separate publicly-traded companies, and, except for the Satellite and Tracking Stock Transaction and Sling TV Holding described below, 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 Chief Executive Officer, and by certain trusts established by Mr. Ergen for the benefit of his family. EchoStar is our primary supplier of set-top boxes and digital broadcast operations and a supplier of the vast majority of our transponder capacity. Generally, the amounts we pay EchoStar for products and services are based on pricing equal to EchoStar’s cost plus a fixed margin (unless noted differently below), which will vary depending on the nature of the products and services provided. 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. 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, 2015 and 2014, trade accounts receivable from EchoStar was $23 million and $31 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Consolidated Balance Sheets . “Trade accounts payable” As of December 31, 2015 and 2014, trade accounts payable to EchoStar was $263 million and $236 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, 2015, 2014 and 2013 , we received $46 million, $62 million and $43 million, respectively, for equipment sales, services and other revenue from 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. Remanufactured Receiver and Services Agreement. We entered into a remanufactured receiver and services agreement with EchoStar pursuant to which EchoStar has the right, but not the obligation, to purchase remanufactured receivers and accessories from us at cost plus a fixed margin, which varies depending on the nature of the equipment purchased. In November 2015, we and EchoStar extended this agreement until December 31, 2016. EchoStar may terminate the remanufactured receiver and services agreement for any reason upon at least 60 days notice to us. We may also terminate this agreement if certain entities acquire us. Satellite Capacity Leased to EchoStar. Since the Spin-off, we have entered into certain satellite capacity agreements pursuant to which EchoStar leases certain capacity on certain satellites owned by us. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. The term of each lease is set forth below: EchoStar XV. During May 2013, we began leasing satellite capacity to EchoStar on EchoStar XV and relocated the satellite for testing at EchoStar’s Brazilian authorization at the 45 degree orbital location. Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days notice. This lease terminated in November 2015 and EchoStar relocated this satellite from the 45 degree orbital location back to the 61.5 degree orbital location where it currently serves as an in-orbit spare. Real Estate Lease Agreements. Since the Spin-off, 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 leased 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. “Subscriber-related expenses” During the years ended December 31, 2015, 2014 and 2013 , we incurred $12 million, $9 million and $5 million, respectively, for subscriber-related expenses from EchoStar. These amounts are recorded in “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. SlingService Services Agreement. Effective February 23, 2010, we entered into an agreement with EchoStar pursuant to which we receive certain services related to placeshifting, which is used for, among other things, the DISH Anywhere mobile application. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement renewed on February 23, 2016 for an additional one-year period until February 23, 2017. This agreement may be terminated for any reason upon at least 120 days notice to EchoStar. DISH Remote Access Services Agreement. Effective February 23, 2010, we entered into an agreement with EchoStar pursuant to which we receive, among other things, certain remote DVR management services. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement renewed on February 23, 2016 for an additional one-year period until February 23, 2017. This agreement may be terminated for any reason upon at least 120 days notice to EchoStar. “Satellite and transmission expenses” During the years ended December 31, 2015, 2014 and 2013, we incurred $715 million, $646 million and $487 million, respectively, for satellite and transmission expenses from EchoStar. 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. Broadcast Agreement. Effective January 1, 2012, we and EchoStar entered into a broadcast agreement (the “2012 Broadcast Agreement”) pursuant to which EchoStar provides broadcast services to us, including teleport services such as transmission and downlinking, channel origination services, and channel management services, for the period from January 1, 2012 to December 31, 2016. The fees for services provided under the 2012 Broadcast Agreement are calculated at either: (a) EchoStar’s cost of providing the relevant service plus a fixed dollar fee, which is subject to certain adjustments; or (b) EchoStar’s cost of providing the relevant service plus a fixed margin, which will depend on the nature of the services provided. We have the ability to terminate channel origination services and channel management services for any reason and without any liability upon at least 60 days notice to EchoStar. If we terminate the teleport services provided under the 2012 Broadcast Agreement for a reason other than EchoStar’s breach, we are generally obligated to reimburse EchoStar for any direct costs EchoStar incurs related to any such termination that it cannot reasonably mitigate. Broadcast Agreement for Certain Sports Related Programming. During May 2010, we and EchoStar entered into a broadcast agreement pursuant to which EchoStar provides certain broadcast services to us in connection with our carriage of certain sports related programming. The term of this agreement is for ten years. If we terminate this agreement for a reason other than EchoStar’s breach, we are generally obligated to reimburse EchoStar for any direct costs EchoStar incurs related to any such termination that it cannot reasonably mitigate. The fees for the broadcast services provided under this agreement depend, among other things, upon the cost to develop and provide such services. Satellite Capacity Leased from EchoStar. Since the Spin-off, we have entered into certain satellite capacity agreements pursuant to which we lease certain capacity on certain satellites owned or leased by EchoStar. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: · EchoStar I, VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar I, VII, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. The satellite capacity agreement for EchoStar I expired on November 30, 2015. · EchoStar VIII. During May 2013, we began leasing capacity from EchoStar on EchoStar VIII as an in-orbit spare. Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days notice. This lease terminated in November 2015. · EchoStar IX . We lease certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally have the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis. · EchoStar XII . The lease for EchoStar XII generally terminates upon the earlier of: (i) the end-of-life or replacement of the satellite (unless we determine to renew on a year-to-year basis); (ii) the date the satellite fails; (iii) the date the transponders on which service is being provided fails; or (iv) a certain date, which depends upon, among other things, the estimated useful life of the satellite, whether the replacement satellite fails at launch or in orbit prior to being placed into service and the exercise of certain renewal options. We generally have the option to renew the lease on a year-to-year basis through the end of the satellite’s life. There can be no assurance that any options to renew this agreement will be exercised. · EchoStar XVI. During 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 during 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. Prior to expiration of the initial term, we have the option to renew for an additional six -year period. Prior to expiration of the initial term, EchoStar also has the right, upon certain conditions, to renew for an additional six-year period. If either we or EchoStar exercise our respective six-year renewal options, then we have the option to renew for an additional five -year period prior to expiration of the then-current term. There can be no assurance that any options to renew this agreement will be exercised. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen -year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”) . During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we currently receive service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. DISH Network has also guaranteed certain obligations of EchoStar under the Telesat Transponder Agreement. See discussion under “Guarantees” in Note 11. Under the terms of the DISH Nimiq 5 Agreement, we make certain monthly payments to EchoStar that commenced in September 2009 when the Nimiq 5 satellite was placed into service and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we have the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Upon in-orbit failure or end-of-life of the Nimiq 5 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the DISH Nimiq 5 Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten -year satellite service agreement with SES Latin America S.A. (“SES”), which provides, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite. During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we receive service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location while we and EchoStar explored alternative uses for the QuetzSat-1 satellite. In the interim, EchoStar provided us with alternate capacity at the 77 degree orbital location. During the first quarter 2013, we and EchoStar entered into an agreement pursuant to which we sublease five DBS transponders back to EchoStar. During January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the QuetzSat-1 Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. Upon an in-orbit failure or end-of-life of the QuetzSat-1 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the QuetzSat-1 Transponder Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. 103 Degree Orbital Location/SES-3. During 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”). During 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. During the third quarter 2013, we made a $23 million payment to EchoStar in exchange for its rights under the 103 Spectrum Development Agreement. In accordance with accounting principles that apply to transfers of assets between companies under common control, we recorded EchoStar’s net book value of this asset of $20 million in “Other noncurrent assets, net” on our Consolidated Balance Sheets and recorded the amount in excess of EchoStar’s net book value of $3 million as a capital distribution. Unless earlier terminated under the terms and conditions of the DISH 103 Spectrum Development Agreement, the term generally will continue for the duration of the 103 Spectrum Rights. In connection with the 103 Spectrum Development Agreement, during 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”). During June 2013, we and EchoStar entered into an agreement pursuant to which we lease certain satellite capacity from EchoStar on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, we make certain monthly payments to EchoStar through the service term. Unless earlier terminated under the terms and conditions of the DISH 103 Service Agreement, the initial service term will expire on the earlier of: (i) the date the SES-3 satellite fails; (ii) the date the transponder(s) on which service was being provided under the agreement fails; or (iii) ten years following the actual service commencement date. Upon in-orbit failure or end-of-life of the SES-3 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that we will exercise our option to receive service on a replacement satellite. TT&C Agreement. Effective January 1, 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we receive TT&C services from EchoStar for certain satellites for a period ending on December 31, 2016 (the “2012 TT&C Agreement”). The fees for services provided under the 2012 TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We are able to terminate the 2012 TT&C Agreement for any reason upon 60 days notice. DISHOnline.com Services Agreement. Effective January 1, 2010, we entered into a two -year agreement with EchoStar pursuant to which we receive certain services associated with an online video portal. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. We have the option to renew this agreement for successive one year terms and the agreement may be terminated for any reason upon at least 120 days notice to EchoStar. In November 2015, we exercised our right to renew this agreement for a one-year period ending on December 31, 2016. Sling TV Holding. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding to us. See “Related Party Transactions with DISH Network” within the related party section previously discussed. Effective July 1, 2012, DISH Network and EchoStar formed Sling TV Holding, which was owned two-thirds by DISH Network and one-third by EchoStar and was consolidated into DISH Network’s financial statements beginning July 1, 2012. Sling TV Holding was formed to develop and commercialize certain advanced technologies. At that time, DISH Network, EchoStar and Sling TV Holding entered into the following agreements with respect to Sling TV Holding: (i) a contribution agreement pursuant to which DISH Network and EchoStar contributed certain assets in exchange for its respective ownership interests in Sling TV Holding; (ii) a limited liability company operating agreement (the “Operating Agreement”), which provides for the governance of Sling TV Holding; and (iii) a commercial agreement (the “Commercial Agreement”) pursuant to which, among other things, Sling TV Holding has: (a) certain rights and corresponding obligations with respect to its business; and (b) the right, but not the obligation, to receive certain services from DISH Network and EchoStar, respectively. Since this was a formation of an entity under common control and a step-up in basis was not allowed, each party’s contributions were recorded at historical book value for accounting purposes. Effective August 1, 2014, EchoStar and Sling TV Holding entered into the Exchange Agreement pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. We now have a ninety percent equity interest and a 100% voting interest in Sling TV Holding. In addition, we, EchoStar and Sling TV Holding amended and restated the Operating Agreement, primarily to reflect the changes implemented by the Exchange Agreement. Finally, we, EchoStar and Sling TV Holding amended and restated the Commercial Agreement, pursuant to which, among other things, Sling TV Holding: (1) continues to have certain rights and corresponding obligations with respect to its business; (2) continues to have the right, but not the obligation, to receive certain services from us and EchoStar; and (3) has a license from EchoStar to use certain of the assets distributed to EchoStar as part of the Exchange Agreement. Sling TV Holding operates, through its subsidiary Sling TV L.L.C., the Sling TV services. Since the Exchange Agreement is among entities under common control, we recorded the difference between the historical cost basis of the assets transferred to EchoStar and our historical cost basis in EchoStar’s one-third noncontrolling interest in Sling TV Holding as a $6 million, net of deferred taxes, capital distribution in “Additional paid-in capital” on our Consolidated Balance Sheets. In addition, we recorded the initial fair value of EchoStar’s ten percent non-voting interest as a $14 million , net of deferred taxes, deemed distribution in “Additional paid-in capital” on our Consolidated Balance Sheets. EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal was determined to be probable during the third quarter 2015. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes, on our Consolidated Balance Sheets. As of December 31, 2015, this difference was $10 million, net of deferred taxes. Subsequent to the Exchange Agreement, the operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” in our Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). “General and administrative expenses” During the years ended December 31, 2015, 2014 and 2013, we incurred $92 million, $101 million and $69 million, respectively, for general and administrative expenses from 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. Product Support Agreement. In connection with the Spin-off, we entered into a product support agreement pursuant to which we have the right, but not the obligation, to receive product support from EchoStar (including certain engineering and technical support services) for all set-top boxes and related accessories that EchoStar has previously sold and in the future may sell to us. The fees for the services provided under the product support agreement are calculated at cost plus a fixed margin, which varies depending on the nature of the services provided. The term of the product support agreement is the economic life of such receivers and related accessories, unless terminated earlier. We may terminate the product support agreement for any reason upon at least 60 days notice. In the event of an early termination of this agreement, we are entitled to a refund of any unearned fees paid to EchoStar for the services. 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: · Inverness Lease Agreement. The lease for certain space at 90 Inverness Circle East in Englewood, Colorado is for a period ending on December 31, 2016. This agreement can be terminated by either party upon six months prior notice. In February 2016, we provided EchoStar notice to terminate this lease effective August 2016. · Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado is for a period ending on December 31, 2016. · Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado is for a period ending on December 31, 2016. · EchoStar Data Networks Sublease Agreement . The sublease for certain space at 211 Perimeter Center in Atlanta, Georgia is for a period ending on October 31, 2016. · Gilbert Lease Agreement. Effective August 1, 2014, we began leasing certain space from EchoStar at 801 N. DISH Dr. in Gilbert, Arizona for a period ending on July 31, 2016. We also have renewal options for three additional one -year terms. · Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. Application Development Agreement. During the fourth quarter 2012, we and EchoStar entered into a set-top box application development agreement (the “Application Development Agreement”) pursuant to which EchoStar provides us with certain services relating to the development of web-based applications for set-top boxes for a period ending on February 1, 2017. The Application Development Agreement renews automatically for successive one -year periods thereafter, unless terminated earlier by us or EchoStar at any time upon at least 90 days notice. The fees for services provided under the Application Development Agreement are calculated at EchoStar’s cost of providing the relevant service plus a fixed margin, which will depend on the nature of the services provided. XiP Encryption Agreement. During the third quarter 2012, we entered into an encryption agreement with EchoStar for our whole-home HD DVR line of set-top boxes (the “XiP Encryption Agreement”) pursuant to which EchoStar provides certain security measures on our whole-home HD DVR line of set-top boxes to encrypt the content delivered to the set-top box via a smart card and secure the content between set-top boxes. The initial term of the XiP Encryption Agreement was for a period until December 31, 2014. Under the XiP Encryption Agreement, we had the option, but not the obligation, to extend the XiP Encryption Agreement for one additional year upon 180 days notice prior to the end of the term. On May 5, 2014, we provided EchoStar notice to extend the XiP Encryption Agreement for one additional year until December 31, 2015. On November 4, 2015, we and EchoStar extended the term of the XiP Encryption Agreement for one additional year until December 31, 2016. We and EchoStar each have the right to terminate the XiP Encryption Agreement for any reason upon at least 30 days notice and 180 days notice, respectively. The fees for the services provided under the XiP Encryption Agreement are calculated on a monthly basis based on the number of receivers utilizing such security measures each month. Sling Trademark License Agreement. On December 31, 2014, Sling TV L.L.C. entered into an agreement with Sling Media, Inc., a subsidiary of EchoStar, pursuant to which we have the right for a fixed fee to use certain trademarks, domain names and other intellectual property related to the “Sling” trademark for a period ending on December 31, 2016. Professional Services Agreement. Prior to 2010, in connection wit |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Summary of Significant Accounting Policies | ||
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Sling TV. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding L.L.C. (“Sling TV Holding,” formerly known as DISH Digital Holding L.L.C.) to us. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014. Effective August 1, 2014, EchoStar Corporation (“EchoStar”) and Sling TV Holding entered into an exchange agreement (the “Exchange Agreement”) pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal has been determined to be probable of achievement. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes on our Condensed Consolidated Balance Sheets. The operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” in our Condensed Consolidated Balance Sheets effective August 1, 2014, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 10 for further information on Sling TV Holding and the Exchange Agreement. | Redeemable Noncontrolling Interests Sling TV. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding L.L.C. (“Sling TV Holding,” formerly known as DISH Digital Holding L.L.C.) to us. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014. Effective August 1, 2014, EchoStar Corporation (“EchoStar”) and Sling TV Holding entered into an exchange agreement (the “Exchange Agreement”) pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal was determined to be probable during the third quarter 2015. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes on our Consolidated Balance Sheets. The operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” in our Consolidated Balance Sheets effective August 1, 2014, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 15 for further information on Sling TV Holding and the Exchange Agreement. |
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 doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, 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, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, 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, 2015 and 2014 may consist of money market funds, government bonds, corporate notes and commercial paper. The cost of these investments approximates their fair value. | |
Marketable Investment Securities | Marketable Investment Securities We currently classify all marketable investment securities as available-for-sale. We adjust the carrying amount of our available-for-sale securities to fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax. Declines in the fair value of a marketable investment security which are determined to be “other-than-temporary” are recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment. We evaluate our marketable investment securities portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other-than-temporary. This quarterly evaluation consists of reviewing, among other things: · the fair value of our marketable investment securities compared to the carrying amount, · the historical volatility of the price of each security, and · any market and company specific factors related to each security. Declines in the fair value of debt and equity investments below cost basis are generally accounted for as follows: Length of Time Investment Has Been In a Continuous Treatment of the Decline in Value Loss Position (absent specific factors to the contrary) Less than six months Generally, considered temporary. Six to nine months Evaluated on a case by case basis to determine whether any company or market-specific factors exist indicating that such decline is other-than-temporary. Greater than nine months Generally, considered other-than-temporary. The decline in value is recorded as a charge to earnings. Additionally, in situations where the fair value of a debt security is below its carrying amount, we consider the decline to be other-than-temporary and record a charge to earnings if any of the following factors apply: · we have the intent to sell the security, · it is more likely than not that we will be required to sell the security before maturity or recovery, or · we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. In general, we use the first in, first out method to determine the cost basis on sales of marketable investment securities. | |
Trade Accounts Receivable | Trade Accounts Receivable Management estimates the amount of required allowances for the potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. However, past experience may not be indicative of future collections and therefore additional charges could be incurred in the future to reflect differences between estimated and actual collections. | |
Inventory | Inventory Inventory is stated at the lower of cost or market 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. The costs of satellites under construction, including interest and certain amounts prepaid under our satellite service agreements, are capitalized during the construction phase, assuming the eventual successful launch and in-orbit operation of the satellite. If a satellite were to fail during launch or while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from one to 40 years. Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized. | |
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. | |
Indefinite Lived Intangible Assets | Indefinite Lived Intangible Assets We do not amortize indefinite lived intangible assets, but test these assets for impairment annually during the fourth quarter or more often if indicators of impairment arise. Intangible assets that have finite lives are amortized over their estimated useful lives and tested for impairment as described above for long-lived assets. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our 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. | |
Other Investment Securities | Other Investment Securities Generally, we account for our unconsolidated equity investments under either the equity method or cost method of accounting. Because these equity securities are generally not publicly traded, it is not practical to regularly estimate the fair value of the investments; however, these investments are subject to an evaluation for other-than-temporary impairment on a quarterly basis. This quarterly evaluation consists of reviewing, among other things, company business plans, current financial statements and key financial metrics, if available, for factors that may indicate an impairment of our investment. Such factors may include, but are not limited to, cash flow concerns, material litigation, violations of debt covenants and changes in business strategy. The fair value of these equity investments is not estimated unless there are identified changes in circumstances that may indicate an impairment exists and these changes are likely to have a significant adverse effect on the fair value of the investment. | |
Long-Term Deferred Revenue, Distribution and Carriage Payments | Long-Term Deferred Revenue, Distribution and Carriage Payments 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 in our Consolidated Balance Sheets in “Deferred revenue and other” and “Long-term deferred revenue, distribution and carriage payments 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 in our Consolidated Statements of Operations and Comprehensive Income (Loss). Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. | |
Income Taxes and Accounting for Uncertainty in Income Taxes | Income Taxes We establish a provision for income taxes currently payable or receivable and for income tax amounts deferred to future periods. Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that exist between the book and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that such net deferred tax assets will not be realized. Accounting for Uncertainty in Income Taxes From time to time, we engage in transactions where the tax consequences may be subject to uncertainty. We record a liability when, in management’s judgment, a tax filing position does not meet the more likely than not threshold. For tax positions that meet the more likely than not threshold, we may record a liability depending on management’s assessment of how the tax position will ultimately be settled. We adjust our estimates periodically for ongoing examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and precedent. We classify interest and penalties, if any, associated with our uncertain tax positions as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss). | |
Fair Value Measurements | Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: · Level 1, defined as observable inputs being quoted prices in active markets for identical assets; · Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active; and · Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of June 30, 2016 and December 31, 2015, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) is equal to or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are estimated based on an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our long-term debt. | 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, 2015 and 2014, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) is equal to or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are estimated based on an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our long-term debt. |
Deferred Debt Issuance Costs | Deferred Debt Issuance Costs Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 7 for further information. | |
Revenue Recognition | Revenue Recognition We recognize revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered. Revenue from our Pay-TV services are recognized when programming is broadcast to subscribers. Payments received from our Pay-TV subscribers in advance of the broadcast or service period are recorded as “Deferred revenue and other” in our Consolidated Balance Sheets until earned. For certain of our promotions, subscribers are charged an upfront fee. A portion of these fees may be deferred and recognized over the estimated subscriber life for new subscribers or the estimated remaining life for existing subscribers ranging from four to five years. Revenue from advertising sales is recognized when the related services are performed. Subscriber fees for DISH branded pay-TV equipment rental fees and other hardware related fees, including fees for DVRs, fees for equipment and additional outlet fees, advertising services and fees earned from our in-home service operations are recognized as revenue as earned. Generally, revenue from equipment sales and equipment upgrades is recognized upon shipment to customers. Certain of our existing and new subscriber promotions include programming discounts. Programming revenues are recorded as earned at the discounted monthly rate charged to the subscriber. We offer our customers the opportunity to download movies for a specific viewing period or permanently purchase a movie from our website. We recognize revenue when the movie is successfully downloaded by the customer, which, based on our current technology, occurs at the time the customer plays the movie for the first time. | |
Subscriber-Related Expenses | Subscriber-Related Expenses The cost of television programming distribution rights is generally incurred on a per subscriber basis and various upfront carriage payments are recognized when the related programming is distributed to subscribers. Long-term flat rate programming contracts are charged to expense using the straight-line method over the term of the agreement. The cost of television programming rights to distribute live sporting events for a season or tournament is charged to expense using the straight-line method over the course of the season or tournament. “Subscriber-related expenses” in the Consolidated Statements of Operations and Comprehensive Income (Loss) principally include programming expenses, costs for Pay-TV services incurred in connection with our in-home service and call center operations, billing costs, refurbishment and repair costs related to DBS receiver systems, subscriber retention and other variable subscriber expenses. These costs are recognized as the services are performed or as incurred. | |
Subscriber Acquisition Costs | Subscriber Acquisition Costs Subscriber acquisition costs in our Consolidated Statements of Operations and Comprehensive Income (Loss) consist of costs incurred to acquire new Pay-TV subscribers through independent third parties 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 retailers and other distributors of our equipment and DBS receiver systems sold directly by us to DISH branded pay-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 branded pay-TV service as well as our direct sales efforts and commissions for our Sling branded pay-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 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 retailer’s purchase price and are, therefore, netted against the proceeds received from the independent retailer. We report the net cost from our various sales promotions through our independent retailer network as a component of “Other subscriber acquisition costs.” | |
Equipment Lease Programs | Equipment Lease Programs DISH branded pay-TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH branded pay-TV service. Most of our new DISH branded pay-TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH branded pay-TV subscribers is capitalized and depreciated over their estimated useful lives. | |
New Accounting Pronouncements | New Accounting Pronouncements Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers . This converged standard on revenue recognition was issued jointly with the International Accounting Standards Board to create common revenue recognition guidance for GAAP and International Financial Reporting Standards. ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance when it becomes effective. ASU 2014-09 allows for either a full retrospective or modified retrospective adoption. We are evaluating the effect that ASU 2014-09 will have on our condensed consolidated financial statements and related disclosures. We have not yet selected an adoption method nor have we determined the effect of the standard on our ongoing financial reporting. The new standard could impact revenue and cost recognition for a significant number of our contracts, as well as our business processes and information technology systems. As a result, our evaluation of the effect of the new standard will likely extend over several future periods. On July 9, 2015, the FASB approved a one year deferral on the effective date for implementation of this standard, which changed the effective date for us to January 1, 2018. Recognition and Measurement of Financial Assets and Financial Liabilities . On January 5, 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-01 will have on our condensed consolidated financial statements. Leases. On F ebruary 25, 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases , which relates to the accounting of leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our condensed consolidated financial statements. Compensation – Stock Compensation. On March 30, 2016, the FASB issued ASU 2016-09 (“ASU 2016-09”), Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which relates to the accounting for employee share-based payments. This standard addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-09 will have on our condensed consolidated financial statements. | New Accounting Pronouncements Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. This converged standard on revenue recognition was issued jointly with the International Accounting Standards Board (“IASB”) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (“IFRS”). ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance when it becomes effective. ASU 2014-09 allows for either a full retrospective or modified retrospective adoption. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected an adoption method nor have we determined the effect of the standard on our ongoing financial reporting. The new standard could impact revenue and cost recognition for a significant number of our contracts, as well as our business processes and information technology systems. As a result, our evaluation of the effect of the new standard will likely extend over several future periods. On July 9, 2015, the FASB approved a one year deferral on the effective date for implementation of this standard, which changed the effective date for us to January 1, 2018. Recognition and Measurement of Financial Assets and Financial Liabilities . In January 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-01 will have on our consolidated financial statements. Leases. On F ebruary 25, 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases , which is intended to improve financial reporting about leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our consolidated financial statements. |
Supplemental Data - Statement24
Supplemental Data - Statements of Cash Flows (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Supplemental Data - Statements of Cash Flows | ||
Schedule of supplemental cash flow and other non-cash data | For the Six Months Ended June 30, 2016 2015 (In thousands) Cash paid for interest $ $ Cash received for interest Cash paid for income taxes Cash paid for income taxes to DISH Network Satellites and other assets financed under capital lease obligations — | For the Years Ended December 31, 2015 2014 2013 (In thousands) Cash paid for interest $ $ $ Cash received for interest Cash paid for income taxes Cash paid for income taxes to DISH Network Satellites and other assets financed under capital lease obligations — Satellite and Tracking Stock Transaction with EchoStar: Transfer of property and equipment, net — — Investment in EchoStar and HSSC preferred tracking stock - cost method — — Transfer of liabilities and other — — Capital distribution to EchoStar, net of deferred taxes of $31,274 — — Sling TV Exchange Transaction with EchoStar: Transfer of property and equipment, net — — Transfer of investments and intangibles, net — — Capital distribution to EchoStar, net of deferred taxes of $3,542 — — Deemed distribution to EchoStar - initial fair value of redeemable noncontrolling interest, net of deferred taxes of $8,489 — — |
Marketable Investment Securit25
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
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, 2016 December 31, 2015 (In thousands) Marketable investment securities: Current marketable investment securities $ $ Restricted marketable investment securities (1) Total marketable investment securities Restricted cash and cash equivalents (1) Other investment securities: Investment in EchoStar preferred tracking stock - cost method Investment in HSSC preferred tracking stock - cost method Other investment securities - cost method Total other investment securities Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ $ (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, 2015 2014 (In thousands) Marketable investment securities: Current marketable investment securities $ $ Restricted marketable investment securities (1) Total marketable investment securities Restricted cash and cash equivalents (1) Other investment securities: Investment in EchoStar preferred tracking stock - cost method Investment in HSSC preferred tracking stock - cost method Other investment securities - cost method Total other investment securities (2) Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ $ (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. (2) Other investment securities are included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. |
Schedule of components of available-for-sale investments | As of June 30, 2016 As of December 31, 2015 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 $ $ $ — $ $ $ $ $ Corporate securities — Other — — — — — Equity securities — — — — — Total $ $ $ — $ $ $ $ $ | As of December 31, 2015 2014 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 $ $ $ $ $ $ $ $ Commercial paper — — — — — — — Corporate securities Other — — — — Equity securities — — Total $ $ $ $ $ $ $ $ |
Schedule of available-for-sale securities in continuous unrealized loss position by length of time and their fair value | As of December 31, 2015 2014 Fair Unrealized Fair Unrealized Value Loss Value Loss (In thousands) Debt Securities: Less than 12 months $ $ $ $ 12 months or more Total $ $ $ $ | |
Schedule of investments measured at fair value on a recurring basis | As of June 30, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ $ $ $ — $ $ $ $ — Debt securities (including restricted): U. S. Treasury and agency securities $ $ $ — $ $ $ $ — Corporate securities — — — — Other — — — — — — Equity securities — — — — — — Total $ $ $ $ — $ $ $ $ — | As of December 31, 2015 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ $ $ $ — $ $ $ $ — Debt securities (including restricted): U. S. Treasury and agency securities $ $ $ — $ $ $ $ — Commercial paper — — — — — — Corporate securities — — — — Other — — — — Equity securities — — — — Total $ $ $ $ — $ $ $ $ — |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Inventory | ||
Schedule of inventory | As of June 30, 2016 December 31, 2015 (In thousands) Finished goods $ $ Work-in-process and service repairs Raw materials Total inventory $ $ | As of December 31, 2015 2014 (In thousands) Finished goods $ $ Raw materials Work-in-process Total inventory $ $ |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Property and Equipment | ||
Schedule of property and equipment | Depreciable Life As of December 31, (In Years) 2015 2014 (In thousands) Equipment leased to customers 2 -5 $ 3,439,254 $ EchoStar XV 15 Satellites acquired under capital lease agreements 10 -15 Furniture, fixtures, equipment and other 1 -10 Buildings and improvements 1 -40 Land - Construction in progress - Total property and equipment Accumulated depreciation Property and equipment, net $ $ | |
Schedule of construction in progress | As of December 31, 2015 2014 (In thousands) Software projects $ $ Other Total construction in progress $ $ | |
Schedule of depreciation and amortization expense | For the Three Months For the Six Months Ended Ended June 30, Ended June 30, 2016 2015 2016 2015 (In thousands) Equipment leased to customers $ $ $ $ Satellites Buildings, furniture, fixtures, equipment and other Total depreciation and amortization $ $ $ $ | For the Years Ended December 31, 2015 2014 2013 (In thousands) Equipment leased to customers $ $ $ Satellites (1) Buildings, furniture, fixtures, equipment and other Total depreciation and amortization $ $ $ (1) Depreciation and amortization expense decreased $40 million in 2014 as a result of the Satellite and Tracking Stock Transaction. See Note 4 and Note 15 for further information. |
Schedule of Satellites | Estimated Useful Life (Years)/ Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar XV July 2010 61.5 15 Under Construction: EchoStar XVIII Second quarter 2016 110 15 Leased from EchoStar (1): EchoStar VII (2)(3) February 2002 119 June 2017 EchoStar IX August 2003 121 Month to month EchoStar X (2)(3) February 2006 110 February 2021 EchoStar XI (2)(3) July 2008 110 September 2021 EchoStar XII (3) July 2003 61.5 September 2017 EchoStar XIV (2)(3) March 2010 119 February 2023 EchoStar XVI (4) November 2012 61.5 January 2017 Nimiq 5 September 2009 72.7 September 2019 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2019 (1) See Note 15 for further information on our Related Party Transactions with EchoStar. (2) On February 20, 2014, we entered into the Satellite and Tracking Stock Transaction with EchoStar pursuant to which, among other things, we transferred these satellites to EchoStar and lease back all available capacity on these satellites. See Note 4 and Note 15 for further information. (3) We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite. (4) We have the option to renew this lease for an additional six -year period. If we exercise our six -year renewal option, we have the option to renew this lease for an additional five years. | |
Schedule of FCC Authorizations | As of December 31, 2015 2014 (In thousands) DBS Licenses $ $ MVDDS Licenses Total $ $ |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Long-Term Debt | ||
Schedule of carrying and fair values of the entity's debt facilities | As of June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 7 1/8% Senior Notes due 2016 (1) $ — $ — $ $ 4 5/8% Senior Notes due 2017 4 1/4% Senior Notes due 2018 7 7/8% Senior Notes due 2019 5 1/8% Senior Notes due 2020 6 3/4% Senior Notes due 2021 5 7/8% Senior Notes due 2022 5 % Senior Notes due 2023 5 7/8% Senior Notes due 2024 7 3/4% Senior Notes due 2026 — — Other notes payable Subtotal $ $ Unamortized deferred financing costs and debt discounts, net Capital lease obligations (2) Total long-term debt and capital lease obligations (including current portion) $ $ (1) On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016. (2) Disclosure regarding fair value of capital leases is not required. | As of December 31, 2015 2014 Carrying Value Fair Value Carrying Value Fair Value (In thousands) 7 3/4% Senior Notes due 2015 (1) $ — $ — $ $ 7 1/8% Senior Notes due 2016 (2) 4 5/8% Senior Notes due 2017 4 1/4% Senior Notes due 2018 7 7/8% Senior Notes due 2019 5 1/8% Senior Notes due 2020 6 3/4% Senior Notes due 2021 5 7/8% Senior Notes due 2022 5 % Senior Notes due 2023 5 7/8% Senior Notes due 2024 Other notes payable Subtotal $ $ Unamortized deferred financing costs and debt discounts, net Capital lease obligations (3) Total long-term debt and capital lease obligations (including current portion) $ $ (1) On June 1, 2015, we redeemed the principal balance of our 7 3/4% Senior Notes due 2015. (2) On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016. (3) Disclosure regarding fair value of capital leases is not required. |
Schedule of interest on long-term debt | Annual Semi-Annual Debt Service Payment Dates Requirements (In thousands) 4 5/8% Senior Notes due 2017 January 15 and July 15 $ 4 1/4% Senior Notes due 2018 April 1 and October 1 $ 7 7/8% Senior Notes due 2019 March 1 and September 1 $ 5 1/8% Senior Notes due 2020 May 1 and November 1 $ 6 3/4% Senior Notes due 2021 June 1 and December 1 $ 5 7/8% Senior Notes due 2022 January 15 and July 15 $ 5% Senior Notes due 2023 March 15 and September 15 $ 5 7/8% Senior Notes due 2024 May 15 and November 15 $ | |
Schedule of other long term debt and capital lease obligations | As of December 31, 2015 2014 (In thousands) Satellites and other capital lease obligations $ $ Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates ranging from approximately 6.0% to 12.5% Total Less: current portion Other long-term debt and capital lease obligations, net of current portion $ $ | |
Future minimum lease payments under capital lease obligations | For the Years Ended December 31, 2016 $ 2017 2018 2019 2020 Thereafter Total minimum lease payments Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments Net minimum lease payments Less: Amount representing interest Present value of net minimum lease payments Less: Current portion Long-term portion of capital lease obligations $ |
Income Taxes and Accounting f29
Income Taxes and Accounting for Uncertainty in Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 (In thousands) Current (benefit) provision: Federal $ $ $ State Foreign Total current (benefit) provision Deferred (benefit) provision: Federal State Increase (decrease) in valuation allowance — Total deferred (benefit) provision Total (benefit) provision $ $ $ |
Schedule of reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes | For the Years Ended December 31, 2015 2014 2013 % of pre-tax income/(loss) Statutory rate State income taxes, net of federal benefit Reversal of uncertain tax positions — Other, net — Total (benefit) provision for income taxes |
Schedule of deferred tax assets and liabilities | As of December 31, 2015 2014 (In thousands) Deferred tax assets: NOL, credit and other carryforwards $ $ Accrued expenses Stock-based compensation Deferred revenue Total deferred tax assets Valuation allowance Deferred tax asset after valuation allowance Deferred tax liabilities: Depreciation FCC authorizations and other intangible amortization Unrealized gains on available for sale investments Bases difference in partnerships and cost method investments (1) Other liabilities Total deferred tax liabilities Net deferred tax asset (liability) $ $ (1) Included in this line item are deferred taxes related to our cost method investments, including our cost method investments in the Tracking Stock. |
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 2015 2014 2013 (In thousands) Balance as of beginning of period $ $ $ Additions based on tax positions related to the current year Additions based on tax positions related to prior years Reductions based on tax positions related to prior years — Reductions based on tax positions related to settlements with taxing authorities Reductions based on tax positions related to the lapse of the statute of limitations Balance as of end of period $ $ $ |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 2014 2013 (In thousands) Matching contributions, net of forfeitures $ $ $ Discretionary stock contributions, net of forfeitures $ $ $ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation | |
Schedule of stock awards outstanding | As of December 31, 2015 DISH Network Awards EchoStar Awards Stock Awards Outstanding Stock Options Restricted Stock Units Stock Options Restricted Stock Units Held by DISH DBS employees — |
Schedule of exercise prices for stock options outstanding and exercisable associated with employees | Options Outstanding Options Exercisable Number Outstanding as of December 31, 2015 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price Number Exercisable as of December 31, 2015 Weighted- Average Remaining Contractual Life Weighted- Average Exercise Price $ — - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ - $ $ $ $ — - $ $ $ |
Schedule of stock option activity associated with employees | For the Years Ended December 31, 2015 2014 2013 Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Options Weighted- Average Exercise Price Total options outstanding, beginning of period (1) $ $ $ Granted $ $ $ Exercised $ $ $ Forfeited and cancelled $ $ $ Total options outstanding, end of period $ $ $ Performance based options outstanding, end of period (2) $ $ $ Exercisable at end of period $ $ $ (1) The beginning of period weighted-average exercise price for the year ended December 31, 2013 of $18.99 does not reflect the 2012 Stock Option Adjustment, which occurred subsequent to December 31, 2012. (2) These stock options are included in the caption “Total options outstanding, end of period.” See discussion of the 2005 LTIP, 2008 LTIP, 2013 LTIP and Other Employee Performance Awards below. |
Schedule of realized tax benefits from stock awards exercised | For the Years Ended December 31, 2015 2014 2013 (In thousands) Tax benefit from stock awards exercised $ $ $ |
Schedule of aggregate intrinsic value of stock options associated with employees | As of December 31, 2015 Options Options Outstanding Exercisable (In thousands) Aggregate intrinsic value $ $ |
Schedule of restricted stock unit activity associated with employees | For the Years Ended December 31, 2015 2014 2013 Restricted Stock Awards Weighted- Average Grant Date Fair Value Restricted Stock Awards Weighted- Average Grant Date Fair Value Restricted Stock Awards Weighted- Average Grant Date Fair Value Total restricted stock units outstanding, beginning of period $ $ $ Granted $ $ $ Vested $ $ $ Forfeited and cancelled $ $ $ Total restricted stock units outstanding, end of period (1) $ $ $ (1) All restricted stock units outstanding are Restricted Performance Units. See discussion of the 2005 LTIP, 2008 LTIP, 2013 LTIP and Other Employee Performance Awards below. |
Schedule of awards outstanding pursuant to performance-based stock incentive plans | As of December 31, 2015 Performance Based Stock Options Number of Awards Weighted- Average Exercise Price 2013 LTIP $ Other employee performance awards $ Total $ Restricted Performance Units 2013 LTIP Other employee performance awards Total |
Schedule of allocated non-cash, stock-based compensation expense for all employees | For the Years Ended December 31, 2015 2014 2013 (In thousands) Subscriber-related $ $ $ General and administrative Total non-cash, stock based compensation $ $ $ |
Schedule of assumptions of Black-Scholes option valuation model | For the Years Ended December 31, Stock Options 2015 2014 2013 Risk-free interest rate % - % % - % % - % Volatility factor % - % % - % % - % Expected term of options in years - - - Weighted-average fair value of options granted $ - $ $ - $ $ - $ |
LTIP 2008, LTIP 2013 and Other | |
Stock-Based Compensation | |
Schedule of unrecognized non-cash, stock-based compensation expense | For the Years Ended December 31, Non-Cash, Stock-Based Compensation Expense Recognized 2015 2014 2013 (In thousands) 2008 LTIP $ — $ — $ 2013 LTIP Other employee performance awards Total non-cash, stock-based compensation expense recognized for performance based awards $ $ $ |
Schedule of non-cash, stock-based compensation expense recognized | Estimated Remaining Non-Cash, Stock-Based Compensation Expense 2013 LTIP Other Employee Performance Awards (In thousands) Expense estimated to be recognized during 2016 $ $ — Estimated contingent expense subsequent to 2016 Total estimated remaining expense over the term of the plan $ $ |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies | |
Schedule of future maturities of long-term debt, capital lease and contractual obligations | Payments due by period Total 2016 2017 2018 2019 2020 Thereafter (In thousands) Long-term debt obligations $ $ $ $ $ $ $ Capital lease obligations Interest expense on long-term debt and capital lease obligations Satellite-related obligations Operating lease obligations Purchase obligations Total $ $ $ $ $ $ $ |
Valuation and Qualifying Acco33
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts | |
Summary of activity in the allowance for doubtful accounts | Allowance for doubtful accounts Balance at Beginning of Year Charged to Costs and Expenses Deductions Balance at End of Year (In thousands) For the years ended: December 31, 2015 $ $ $ $ December 31, 2014 $ $ $ $ December 31, 2013 $ $ $ $ |
Quarterly Financial Data (Una34
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015: Total revenue $ $ $ $ Operating income (loss) Net income (loss) attributable to DISH DBS Year ended December 31, 2014: Total revenue $ $ $ $ Operating income (loss) Net income (loss) attributable to DISH DBS |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Related Party Transactions | ||
Schedule of transactions with NagraStar | For the Three Months Ended For the Six Months Ended June 30, June 30, 2016 2015 2016 2015 (In thousands) Purchases (including fees): Purchases from NagraStar $ $ $ $ As of June 30, 2016 December 31, 2015 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ $ Commitments to NagraStar $ $ | For the Years Ended December 31, 2015 2014 2013 (In thousands) Purchases (including fees): Purchases from NagraStar $ $ $ As of December 31, 2015 2014 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ $ Commitments to NagraStar $ $ |
Organization and Business Act36
Organization and Business Activities (Details) - item item in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Organization and Business Activities | ||
Number of subscribers | 13,593 | 13,897 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 12 Months Ended |
Jul. 31, 2014 | Dec. 31, 2015 | |
Minimum | ||
Marketable Investment Securities | ||
The length of time an investment has been in a continuous loss position in which the decline in value would be evaluated on a case by case basis to determine if the decline in value is other-than-temporary | 6 months | |
Length of time an investment has been in a continuous loss position in which the decline in value is considered other-than-temporary | 9 months | |
Property and Equipment | ||
Useful life of property and equipment | 1 year | |
Revenue Recognition | ||
Period of deferral for the portion of subscriber fees that are deferred | 4 years | |
Maximum | ||
Marketable Investment Securities | ||
Length of time an investment has been in a continuous loss position in which the decline in value is considered as temporary | 6 months | |
The length of time an investment has been in a continuous loss position in which the decline in value would be evaluated on a case by case basis to determine if the decline in value is other-than-temporary | 9 months | |
Property and Equipment | ||
Useful life of property and equipment | 40 years | |
Long-Term Deferred Revenue, Distribution and Carriage Payments | ||
Deferred upfront payment, amortization period | 10 years | |
Revenue Recognition | ||
Period of deferral for the portion of subscriber fees that are deferred | 5 years | |
DISH Digital Holding LLC | EchoStar | ||
Redeemable Noncontrolling Interest | ||
Ownership percentage owned by noncontrolling owners | 10.00% | |
Number of days following the fifth anniversary of the Exchange Agreement to redeem | 60 days |
Supplemental Data - Statement38
Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash paid for interest | $ 413,342 | $ 437,969 | $ 852,679 | $ 832,654 | $ 875,006 |
Cash received for interest | 781 | 4,945 | 5,606 | 34,534 | 36,242 |
Cash paid for income taxes | 11,338 | 1,487 | 2,632 | 18,186 | 1,351 |
Cash paid for income taxes to DISH Network | 329,230 | $ 278,970 | 558,220 | 279,234 | 433,120 |
Satellites and other assets financed under capital lease obligations | 988 | 3,462 | $ 1,070 | ||
Satellite and Tracking Stock Transaction with EchoStar: | |||||
Investment in EchoStar and HSSC preferred tracking stock - cost method | 324,371 | 327,250 | |||
Capital distribution to EchoStar, net of deferred taxes of $31,274 | 51,466 | ||||
Deferred tax in the capital distribution to EchoStar relating to satellite and tracking stock transaction | 31,274 | ||||
Capital distribution to EchoStar, net of deferred taxes of $3,542 | 11,963 | ||||
Deferred tax in capital distribution to EchoStar | 3,542 | 3,542 | |||
Deemed distribution to EchoStar - initial fair value of redeemable noncontrolling interest, net of deferred taxes of $8,489 | 14,011 | ||||
Deferred tax in deemed distribution of redeemable noncontrolling interest | 8,489 | 8,489 | |||
EchoStar | |||||
Satellite and Tracking Stock Transaction with EchoStar: | |||||
Investment in EchoStar and HSSC preferred tracking stock - cost method | $ 228,795 | 228,795 | 228,795 | ||
Deferred tax in the capital distribution to EchoStar relating to satellite and tracking stock transaction | $ 31,274 | ||||
Satellite and Tracking Stock Transaction | EchoStar | |||||
Satellite and Tracking Stock Transaction with EchoStar: | |||||
Transfer of property and equipment, net | 432,080 | ||||
Investment in EchoStar and HSSC preferred tracking stock - cost method | 316,204 | ||||
Transfer of liabilities and other | 44,540 | ||||
Capital distribution to EchoStar, net of deferred taxes of $31,274 | 51,466 | ||||
Sling TV Exchange Transaction | EchoStar | |||||
Satellite and Tracking Stock Transaction with EchoStar: | |||||
Transfer of property and equipment, net | 8,978 | ||||
Transfer of investments and intangibles, net | 25,097 | ||||
Capital distribution to EchoStar, net of deferred taxes of $3,542 | 5,845 | ||||
Deemed distribution to EchoStar - initial fair value of redeemable noncontrolling interest, net of deferred taxes of $8,489 | $ 14,011 |
Marketable Investment Securit39
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Current marketable investment securities | $ 4,720 | $ 141,335 | $ 1,401,145 |
Restricted marketable investment securities(1) | 82,099 | 82,280 | 76,970 |
Total marketable investment securities | 86,819 | 223,615 | 1,478,115 |
Restricted cash and cash equivalents (1) | 275 | 94 | 10,014 |
Other investment securities - cost method | 324,371 | 327,250 | |
Total other investment securities | 327,250 | 327,250 | |
Total marketable investment securities, restricted cash and cash equivalents | $ 411,465 | $ 550,959 | 1,815,379 |
Maximum maturities of commercial paper | 365 days | 365 days | |
Maximum maturities of corporate securities | 18 months | 18 months | |
EchoStar | |||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Other investment securities - cost method | $ 228,795 | $ 228,795 | 228,795 |
HSSC | |||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Other investment securities - cost method | 87,409 | 87,409 | 87,409 |
Other investment securities Member | |||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Other investment securities - cost method | $ 8,167 | $ 11,046 | $ 11,046 |
Marketable Investment Securit40
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Investment in Tracking Stock (Details) - Satellite and Tracking Stock Transaction $ in Thousands | Feb. 20, 2014USD ($)shares | Feb. 20, 2014USD ($)itemshares | Dec. 31, 2014USD ($) |
Other investment securities: | |||
Percentage of economic interest in the Hughes Retail Group | 80.00% | 80.00% | |
EchoStar and HSSC | |||
Other investment securities: | |||
Number of owned satellites transferred and leased back | item | 5 | ||
Liabilities Transferred | $ 59,000 | $ 59,000 | |
Cash in exchange for shares of series of preferred tracking stock issued | 11,000 | 11,000 | |
Capital transaction | 356,000 | 356,000 | |
Capital transaction recorded in additional paid-in capital | $ 51,000 | $ 51,000 | |
Tracking stock prohibited transfer period | 1 year | ||
EchoStar | |||
Other investment securities: | |||
Liabilities Transferred | $ 44,540 | ||
Preferred tracking stock issued by related party | shares | 6,290,499 | 6,290,499 | |
Historical cost of tracking stock | $ 229,000 | $ 229,000 | |
HSSC | |||
Other investment securities: | |||
Preferred tracking stock issued by related party | shares | 81.128 | 81.128 | |
Historical cost of tracking stock | $ 87,000 | $ 87,000 |
Marketable Investment Securit41
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Unrealized Gains (Losses) On Marketable Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated net unrealized gains (losses) | |||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | $ 123 | $ 19,728 | $ 43,196 |
Accumulated net unrealized gains, net of tax, in accumulated other comprehensive income (loss) | 1,000 | 12,000 | 28,000 |
Components of available-for-sale investments | |||
Debt securities | 4,720 | 141,335 | 1,401,145 |
Total marketable investment securities | 86,819 | 223,615 | 1,478,115 |
Unrealized Gains (Losses) on Marketable Investment Securities | |||
Unrealized Gains | 123 | 20,039 | 43,352 |
Unrealized Losses | (311) | (156) | |
Unrealized Gains Losses, Net | 123 | 19,728 | 43,196 |
Contractual maturities of restricted and non-restricted marketable investment securities | |||
Debt securities with contractual maturities within one year | 69,000 | 127,000 | |
Debt securities with contractual maturities extending longer than one year through and including five years | 18,000 | 63,000 | |
U.S. Treasury and agency securities | |||
Accumulated net unrealized gains (losses) | |||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | 118 | (133) | (4) |
Components of available-for-sale investments | |||
Debt securities | 82,290 | 82,124 | 58,254 |
Unrealized Gains (Losses) on Marketable Investment Securities | |||
Unrealized Gains | 118 | 2 | 7 |
Unrealized Losses | (135) | (11) | |
Unrealized Gains Losses, Net | 118 | (133) | (4) |
Commercial paper | |||
Components of available-for-sale investments | |||
Debt securities | 65,696 | ||
Corporate securities | |||
Accumulated net unrealized gains (losses) | |||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | 5 | (171) | 5,463 |
Components of available-for-sale investments | |||
Debt securities | 4,529 | 90,838 | 1,247,403 |
Unrealized Gains (Losses) on Marketable Investment Securities | |||
Unrealized Gains | 5 | 3 | 5,608 |
Unrealized Losses | (174) | (145) | |
Unrealized Gains Losses, Net | $ 5 | (171) | 5,463 |
Other (including restricted) | |||
Accumulated net unrealized gains (losses) | |||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | (2) | ||
Components of available-for-sale investments | |||
Debt securities | 17,382 | 55,788 | |
Unrealized Gains (Losses) on Marketable Investment Securities | |||
Unrealized Losses | (2) | ||
Unrealized Gains Losses, Net | (2) | ||
Equity Securities | |||
Accumulated net unrealized gains (losses) | |||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | 20,034 | 37,737 | |
Components of available-for-sale investments | |||
Equity securities | 33,271 | 50,974 | |
Unrealized Gains (Losses) on Marketable Investment Securities | |||
Unrealized Gains | 20,034 | 37,737 | |
Unrealized Gains Losses, Net | $ 20,034 | $ 37,737 |
Marketable Investment Securit42
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Marketable Investment Securities in a Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value of marketable investment securities in a loss position | ||
Total | $ 159,362 | $ 397,584 |
Unrealized loss on marketable investment securities in a loss position | ||
Total | (311) | (156) |
Debt Securities | ||
Fair value of marketable investment securities in a loss position | ||
Less than 12 Months | 153,580 | 268,492 |
12 Months or More | 5,782 | 129,092 |
Unrealized loss on marketable investment securities in a loss position | ||
Less than 12 months | (306) | (100) |
12 months or more | $ (5) | $ (56) |
Marketable Investment Securit43
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value of marketable securities | |||
Debt securities | $ 4,720 | $ 141,335 | $ 1,401,145 |
Total marketable investment securities | 86,819 | 223,615 | 1,478,115 |
Transfer of investments from Level 1 to Level 2 | 0 | 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 | 82,290 | 82,124 | 58,254 |
Commercial paper | |||
Fair value of marketable securities | |||
Debt securities | 65,696 | ||
Corporate securities | |||
Fair value of marketable securities | |||
Debt securities | 4,529 | 90,838 | 1,247,403 |
Other (including restricted) | |||
Fair value of marketable securities | |||
Debt securities | 17,382 | 55,788 | |
Equity Securities | |||
Fair value of marketable securities | |||
Equity securities | 33,271 | 50,974 | |
Fair value measurements on recurring basis | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 139,869 | 307,406 | 6,605,274 |
Total marketable investment securities | 86,819 | 223,615 | 1,478,115 |
Fair value measurements on recurring basis | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | 82,290 | 82,124 | 58,254 |
Fair value measurements on recurring basis | Commercial paper | |||
Fair value of marketable securities | |||
Debt securities | 65,696 | ||
Fair value measurements on recurring basis | Corporate securities | |||
Fair value of marketable securities | |||
Debt securities | 4,529 | 90,838 | 1,247,403 |
Fair value measurements on recurring basis | Other (including restricted) | |||
Fair value of marketable securities | |||
Debt securities | 17,382 | ||
Debt security | 17,382 | 55,788 | |
Fair value measurements on recurring basis | Equity Securities | |||
Fair value of marketable securities | |||
Equity securities | 33,271 | 50,974 | |
Fair value measurements on recurring basis | Level 1 | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 115,036 | 25,814 | 258,281 |
Total marketable investment securities | 77,560 | 110,599 | 93,684 |
Fair value measurements on recurring basis | Level 1 | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | 77,560 | 77,328 | 42,710 |
Fair value measurements on recurring basis | Level 1 | Equity Securities | |||
Fair value of marketable securities | |||
Equity securities | 33,271 | 50,974 | |
Fair value measurements on recurring basis | Level 2 | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 24,833 | 281,592 | 6,346,993 |
Total marketable investment securities | 9,259 | 113,016 | 1,384,431 |
Fair value measurements on recurring basis | Level 2 | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | 4,730 | 4,796 | 15,544 |
Fair value measurements on recurring basis | Level 2 | Commercial paper | |||
Fair value of marketable securities | |||
Debt securities | 65,696 | ||
Fair value measurements on recurring basis | Level 2 | Corporate securities | |||
Fair value of marketable securities | |||
Debt securities | $ 4,529 | 90,838 | 1,247,403 |
Fair value measurements on recurring basis | Level 2 | Other (including restricted) | |||
Fair value of marketable securities | |||
Debt securities | 17,382 | ||
Debt security | $ 17,382 | $ 55,788 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory | |||
Finished goods | $ 381,328 | $ 304,812 | $ 252,101 |
Raw materials | 10,753 | 10,673 | 159,095 |
Work-in-process | 83,073 | 74,768 | 82,350 |
Total Inventory | $ 475,154 | $ 390,253 | $ 493,546 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property and Equipment | |||
Total property and equipment | $ 5,021,796 | $ 5,065,949 | |
Accumulated depreciation | $ (2,903,562) | (2,871,457) | (2,628,945) |
Property and equipment, net | $ 1,974,967 | $ 2,150,340 | 2,437,004 |
Minimum | |||
Property and Equipment | |||
Depreciable life of assets | 1 year | ||
Maximum | |||
Property and Equipment | |||
Depreciable life of assets | 40 years | ||
Equipment Lease To Customers [Member] | |||
Property and Equipment | |||
Total property and equipment | $ 3,439,254 | 3,524,211 | |
Equipment Lease To Customers [Member] | Minimum | |||
Property and Equipment | |||
Depreciable life of assets | 2 years | ||
Equipment Lease To Customers [Member] | Maximum | |||
Property and Equipment | |||
Depreciable life of assets | 5 years | ||
EchoStar XV | |||
Property and Equipment | |||
Total property and equipment | $ 277,658 | 277,658 | |
Depreciable life of assets | 15 years | 15 years | |
Satellites acquired under capital lease agreements | |||
Property and Equipment | |||
Total property and equipment | $ 499,819 | 499,819 | |
Satellites acquired under capital lease agreements | Minimum | |||
Property and Equipment | |||
Depreciable life of assets | 10 years | ||
Satellites acquired under capital lease agreements | Maximum | |||
Property and Equipment | |||
Depreciable life of assets | 15 years | ||
Furniture, fixtures, equipment and other | |||
Property and Equipment | |||
Total property and equipment | $ 679,221 | 656,273 | |
Furniture, fixtures, equipment and other | Minimum | |||
Property and Equipment | |||
Depreciable life of assets | 1 year | ||
Furniture, fixtures, equipment and other | Maximum | |||
Property and Equipment | |||
Depreciable life of assets | 10 years | ||
Buildings and improvements | |||
Property and Equipment | |||
Total property and equipment | $ 85,547 | 84,129 | |
Buildings and improvements | Minimum | |||
Property and Equipment | |||
Depreciable life of assets | 1 year | ||
Buildings and improvements | Maximum | |||
Property and Equipment | |||
Depreciable life of assets | 40 years | ||
Land | |||
Property and Equipment | |||
Total property and equipment | $ 5,504 | 5,504 | |
Construction in progress | |||
Property and Equipment | |||
Total property and equipment | 34,793 | 18,355 | |
Software projects | |||
Property and Equipment | |||
Total property and equipment | 22,539 | 16,353 | |
Other | |||
Property and Equipment | |||
Total property and equipment | $ 12,254 | $ 2,002 |
Property and Equipment (Detai46
Property and Equipment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ 228,963 | $ 237,248 | $ 441,217 | $ 461,143 | $ 907,687 | $ 956,101 | $ 905,987 |
Decrease in depreciation and amortization expenses | 40,000 | ||||||
Equipment leased to customers | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | 197,352 | 206,314 | 378,003 | 398,067 | 783,310 | 810,945 | 739,266 |
Satellites | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | 15,262 | 15,261 | 30,523 | 30,522 | $ 61,045 | 68,984 | 108,682 |
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | item | 12 | ||||||
Owned Satellites | item | 1 | ||||||
Number of satellites utilized under operating lease | item | 9 | ||||||
Number of satellites utilized under capital lease | item | 2 | ||||||
Buildings, furniture, fixtures, equipment and other | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ 16,349 | $ 15,673 | $ 32,691 | $ 32,554 | $ 63,332 | $ 76,172 | $ 58,039 |
Property and Equipment - Pay TV
Property and Equipment - Pay TV Satellites (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Property and Equipment | |||||||
Number of other satellites to be relocated in the event of failure or loss of any satellite | item | 1 | ||||||
Depreciation and amortization | $ 228,963 | $ 237,248 | $ 441,217 | $ 461,143 | $ 907,687 | $ 956,101 | $ 905,987 |
FCC authorizations | $ 635,794 | $ 635,794 | 635,794 | 635,794 | |||
DBS Licenses | |||||||
Property and Equipment | |||||||
FCC authorizations | 611,794 | 611,794 | |||||
MVDDS Licenses | |||||||
Property and Equipment | |||||||
FCC authorizations | $ 24,000 | $ 24,000 | |||||
Minimum | |||||||
Property and Equipment | |||||||
Depreciable life of assets | 1 year | ||||||
Maximum | |||||||
Property and Equipment | |||||||
Depreciable life of assets | 40 years | ||||||
EchoStar XIV | |||||||
Property and Equipment | |||||||
Depreciable life of assets | 15 years | ||||||
EchoStar XV | |||||||
Property and Equipment | |||||||
Depreciable life of assets | 15 years | 15 years | |||||
EchoStar XVIII | |||||||
Property and Equipment | |||||||
Depreciable life of assets | 15 years | 15 years | |||||
EchoStar XVI | |||||||
Property and Equipment | |||||||
Option to renew the lease for an additional period | 5 years | 6 years | |||||
Another option to renew the lease if renewal option exercised | 5 years | 5 years |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 24, 2013 | May 28, 2013 | Dec. 31, 2012 | Jun. 26, 2012 | May 16, 2012 | May 05, 2011 | |
Long-term debt | |||||||||||
Carrying Value | $ 14,113,686 | $ 13,613,686 | $ 14,264,702 | ||||||||
Fair Value | 14,247,344 | 13,249,506 | 14,830,997 | ||||||||
Unamortized deferred financing costs and debt discount, net | (44,779) | (41,563) | (51,473) | ||||||||
Capital lease obligations (3) | 151,891 | 166,492 | 194,669 | ||||||||
Total long-term debt and capital lease obligations (including current portion) | 14,220,798 | 13,738,615 | 14,407,898 | ||||||||
Principal balance of debt redeemed | $ 1,500,000 | $ 650,001 | $ 650,001 | 1,099,999 | $ 500,000 | ||||||
7 3/4% Senior Notes due 2015 | |||||||||||
Long-term debt | |||||||||||
Carrying Value | 650,001 | ||||||||||
Fair Value | $ 664,321 | ||||||||||
Interest rate (as a percent) | 7.75% | 7.75% | |||||||||
7 1/8% Senior Notes due 2016 | |||||||||||
Long-term debt | |||||||||||
Carrying Value | $ 1,500,000 | $ 1,500,000 | |||||||||
Fair Value | $ 1,506,750 | $ 1,580,625 | |||||||||
Interest rate (as a percent) | 7.125% | 7.125% | 7.125% | ||||||||
4 5/8% Senior Notes due 2017 | |||||||||||
Long-term debt | |||||||||||
Carrying Value | $ 900,000 | $ 900,000 | $ 900,000 | ||||||||
Fair Value | $ 914,211 | $ 922,770 | $ 933,750 | ||||||||
Interest rate (as a percent) | 4.625% | 4.625% | 4.625% | ||||||||
4 1/4% Senior Notes due 2018 | |||||||||||
Long-term debt | |||||||||||
Carrying Value | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 | ||||||||
Fair Value | $ 1,235,172 | $ 1,207,560 | $ 1,245,600 | ||||||||
Interest rate (as a percent) | 4.25% | 4.25% | 4.25% | ||||||||
7 7/8% Senior Notes due 2019 | |||||||||||
Long-term debt | |||||||||||
Carrying Value | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | ||||||||
Fair Value | $ 1,550,500 | $ 1,525,440 | $ 1,589,700 | ||||||||
Interest rate (as a percent) | 7.875% | 7.875% | 7.875% | ||||||||
5 1/8% Senior Notes due 2020 | |||||||||||
Long-term debt | |||||||||||
Carrying Value | $ 1,100,000 | $ 1,100,000 | $ 1,100,000 | ||||||||
Fair Value | $ 1,133,000 | $ 1,100,000 | $ 1,100,000 | ||||||||
Interest rate (as a percent) | 5.125% | 5.125% | 5.125% | ||||||||
6 3/4% Senior Notes due 2021 | |||||||||||
Long-term debt | |||||||||||
Carrying Value | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||||
Fair Value | $ 2,086,240 | $ 2,021,020 | $ 2,157,500 | ||||||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | |||||
5 7/8% Senior Notes due 2022 | |||||||||||
Long-term debt | |||||||||||
Carrying Value | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||||
Fair Value | $ 1,962,500 | $ 1,889,780 | $ 2,055,000 | ||||||||
Interest rate (as a percent) | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | ||||||
5% Senior Notes due 2023 | |||||||||||
Long-term debt | |||||||||||
Carrying Value | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 | ||||||||
Fair Value | $ 1,376,775 | $ 1,297,500 | $ 1,470,000 | ||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||||||
5 7/8% Senior Notes due 2024 | |||||||||||
Long-term debt | |||||||||||
Carrying Value | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||||||||
Fair Value | $ 1,909,000 | $ 1,765,000 | $ 2,019,800 | ||||||||
Interest rate (as a percent) | 5.875% | 5.875% | 5.875% | ||||||||
Other notes payable | |||||||||||
Long-term debt | |||||||||||
Carrying Value | $ 13,686 | $ 13,686 | $ 14,701 | ||||||||
Fair Value | $ 13,686 | $ 13,686 | $ 14,701 |
Long-Term Debt (Details)49
Long-Term Debt (Details) - USD ($) $ in Thousands | Nov. 20, 2014 | Jun. 24, 2013 | Apr. 05, 2013 | Jun. 26, 2012 | May 16, 2012 | May 05, 2011 | Oct. 05, 2009 | Aug. 17, 2009 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May 28, 2013 | Dec. 31, 2012 | Dec. 27, 2012 | Jul. 26, 2012 |
Long-term debt | |||||||||||||||||||
Principal balance of debt redeemed | $ 1,500,000 | $ 650,001 | $ 650,001 | $ 1,099,999 | $ 500,000 | ||||||||||||||
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101.00% | 101.00% | 101.00% | ||||||||||||||||
Premiums, interest expense and deferred financing costs, as applicable | $ 191,751 | $ 219,328 | $ 383,088 | $ 441,338 | $ 862,231 | $ 834,856 | $ 878,550 | ||||||||||||
7 3/4% Senior Notes due 2015 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Interest rate (as a percent) | 7.75% | 7.75% | |||||||||||||||||
7 1/8% Senior Notes due 2016 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Interest rate (as a percent) | 7.125% | 7.125% | 7.125% | 7.125% | |||||||||||||||
4 5/8% Senior Notes due 2017 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Interest rate (as a percent) | 4.625% | 4.625% | 4.625% | 4.625% | |||||||||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||||||||
Aggregate principal amount | $ 900,000 | ||||||||||||||||||
Term of debt instrument | 5 years | ||||||||||||||||||
Annual Debt Service Requirements | $ 41,625 | ||||||||||||||||||
4 1/4% Senior Notes due 2018 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Interest rate (as a percent) | 4.25% | 4.25% | 4.25% | 4.25% | |||||||||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||||||||
Aggregate principal amount | $ 1,200,000 | ||||||||||||||||||
Term of debt instrument | 5 years | ||||||||||||||||||
Annual Debt Service Requirements | $ 51,000 | ||||||||||||||||||
4 1/4% Senior Notes due 2018 | Redemption Prior to April 1, 2016 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Maximum percentage of the aggregate principal amount of notes with net proceeds of certain equity offerings or capital contributions | 35.00% | ||||||||||||||||||
7 7/8% Senior Notes due 2019 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Interest rate (as a percent) | 7.875% | 7.875% | 7.875% | 7.875% | |||||||||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||||||||
Aggregate principal amount | $ 400,000 | $ 1,000,000 | |||||||||||||||||
Term of debt instrument | 10 years | 10 years | |||||||||||||||||
Annual Debt Service Requirements | $ 110,250 | ||||||||||||||||||
5 1/8% Senior Notes due 2020 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Interest rate (as a percent) | 5.125% | 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 | ||||||||||||||||||
5 1/8% Senior Notes due 2020 | Redemption Prior to May 1, 2016 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Maximum percentage of the aggregate principal amount of notes with net proceeds of certain equity offerings or capital contributions | 35.00% | ||||||||||||||||||
6 3/4% Senior Notes due 2021 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | ||||||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||||||||
Aggregate principal amount | $ 2,000,000 | ||||||||||||||||||
Term of debt instrument | 10 years | ||||||||||||||||||
Annual Debt Service Requirements | $ 135,000 | ||||||||||||||||||
5 7/8% Senior Notes due 2022 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Interest rate (as a percent) | 5.875% | 5.875% | 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 | 10 years | |||||||||||||||||
Annual Debt Service Requirements | $ 117,500 | ||||||||||||||||||
5% Senior Notes due 2023 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 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 | |||||||||||||||||||
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 | $ 2,000,000 | ||||||||||||||||||
Term of debt instrument | 10 years | ||||||||||||||||||
Annual Debt Service Requirements | $ 117,500 | ||||||||||||||||||
5 7/8% Senior Notes due 2024 | Redemption Prior to June 1, 2014 | |||||||||||||||||||
Long-term debt | |||||||||||||||||||
Maximum percentage of the aggregate principal amount of notes with net proceeds of certain equity offerings or capital contributions | 35.00% |
Long-Term Debt (Details)50
Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Other long-term debt and capital lease obligations | ||
Total | $ 180,178 | $ 209,370 |
Less current portion | (31,928) | (29,148) |
Other long-term debt and capital lease obligations, net of current portion | 148,250 | 180,222 |
Capital lease obligations. | ||
Other long-term debt and capital lease obligations | ||
Total | 166,492 | 194,669 |
Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates ranging from approximately 6% to 13% | ||
Other long-term debt and capital lease obligations | ||
Total | $ 13,686 | $ 14,701 |
Interest rate, low end of range (as a percent) | 6.00% | |
Interest rate, high end of range (as a percent) | 12.50% |
Long-Term Debt (Details)51
Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Capital lease obligations | |||
Estimated fair value of satellites acquired under capital leases | $ 500,000 | $ 500,000 | |
Accumulated depreciation on satellites acquired under capital leases | 322,000 | 279,000 | |
Depreciation expense - capital leases | 43,000 | $ 43,000 | $ 43,000 |
Future minimum lease payments under the capital lease obligation, together with the present value of the net minimum lease payments | |||
2,016 | 76,676 | ||
2,017 | 75,874 | ||
2,018 | 75,849 | ||
2,019 | 50,320 | ||
2,020 | 48,000 | ||
Thereafter | 64,000 | ||
Total minimum lease payments | 390,719 | ||
Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments | (186,742) | ||
Net minimum lease payments | 203,977 | ||
Less: Amount representing interest | (37,485) | ||
Present value of net minimum lease payments | 166,492 | ||
Less: Current portion | (30,849) | ||
Long-term portion of capital lease obligations | $ 135,643 | ||
FSS Satellite Anik F3 | |||
Capital lease obligations | |||
Ku-band capacity leased (as a percent) | 100.00% | ||
Term of capital lease | 15 years | ||
Canadian DBS Satellite Ciel II | |||
Capital lease obligations | |||
Satellite capacity leased (as a percent) | 100.00% | ||
Initial term of capital lease | 10 years |
Income Taxes and Accounting f52
Income Taxes and Accounting for Uncertainty in Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net operating loss carryforwards | |||||||
Cash paid for income taxes to DISH Network | $ 329,230 | $ 278,970 | $ 558,220 | $ 279,234 | $ 433,120 | ||
Net operating loss carryforwards | 0 | ||||||
Current (provision) benefit: | |||||||
Federal | 525,224 | 342,417 | 361,662 | ||||
State | 34,754 | (26,163) | 13,272 | ||||
Foreign | (3,517) | 6,990 | 13,316 | ||||
Current Income Tax Expense (Benefit), Total | 556,461 | 323,244 | 388,250 | ||||
Deferred (provision) benefit: | |||||||
Federal | (117,608) | 78,420 | 65,955 | ||||
State | 10,192 | 14,011 | 5,450 | ||||
Increase (decrease) in valuation allowance | (1,405) | (4,844) | |||||
Total from continuing operations | (47,591) | (63,677) | (108,821) | 87,587 | 71,405 | ||
Income Tax Expense (Benefit), Total | $ 164,008 | $ 125,871 | 321,570 | 230,471 | 447,640 | 410,831 | 459,655 |
Income (loss) before income taxes | $ 422,964 | $ 334,816 | 836,031 | 623,403 | 1,210,533 | $ 1,225,891 | $ 1,284,377 |
Income (loss) from foreign operations | $ 3,000 | ||||||
Reconciliation of amounts computed by applying the statutory Federal tax rate to income before taxes | |||||||
Statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | ||||
State income taxes, net of Federal benefit (as a percent) | 3.30% | 2.00% | 1.00% | ||||
Reversal of uncertain tax positions (as a percent) | (0.90%) | (3.50%) | |||||
Other (as a percent) | (0.40%) | (0.20%) | |||||
Total benefit (provision) for income taxes (as a percent) | 37.00% | 33.50% | 35.80% | ||||
Deferred tax assets: | |||||||
NOL, credit and other carryforwards | $ 12,193 | $ 18,799 | |||||
Accrued expenses | 36,774 | 40,461 | |||||
Stock-based compensation | 15,708 | 21,193 | |||||
Deferred revenue | 27,840 | 31,853 | |||||
Total deferred tax assets | 92,515 | 112,306 | |||||
Valuation allowance | (3,810) | (5,214) | |||||
Deferred tax asset after valuation allowance | 88,705 | 107,092 | |||||
Deferred tax liabilities: | |||||||
Depreciation | (806,105) | (941,262) | |||||
FCC authorizations and other intangible amortization | (217,827) | (214,067) | |||||
Unrealized gains on available for sale investments | (7,240) | 16,210 | |||||
Bases difference in partnerships and cost method investments | (118,977) | (125,638) | |||||
Other liabilities | (27,572) | (30,734) | |||||
Total deferred tax liabilities | (1,177,721) | (1,295,491) | |||||
Net deferred tax asset (liability) | (1,089,016) | (1,188,399) | |||||
Net deferred tax asset (liability) | (1,089,016) | (1,188,399) | |||||
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 | $ 202,400 | $ 207,675 | 207,675 | 145,884 | $ 185,669 | ||
Additions based on tax positions related to the current year | 12,502 | 69,643 | 9,533 | ||||
Additions based on tax positions related to prior years | 14,593 | 58,963 | 66,307 | ||||
Reductions based on tax positions related to prior years | (24,905) | (16,379) | |||||
Reductions based on tax positions related to settlements with taxing authorities | (2,648) | (42,023) | (103,311) | ||||
Reductions based on tax positions related to the lapse of the statute of limitations | (4,817) | (8,413) | (12,314) | ||||
Balance as of end of period | 202,400 | 207,675 | 145,884 | ||||
Unrecognized tax benefits if recognized, could favorably affect our effective tax rate | 181,000 | ||||||
Interest and penalty (benefit) expense | 3,000 | 3,000 | $ 8,000 | ||||
Accrued interest and penalties | 14,000 | $ 10,000 | |||||
State | |||||||
Net operating loss carryforwards | |||||||
NOL benefit for state income tax purposes | 1,000 | ||||||
Tax benefits related to credit carryforwards | $ 15,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 6,145,000 | $ 6,222,000 | $ 5,994,000 |
Discretionary stock contributions, net of forfeitures, under 401(k) plan | $ 25,261,000 | $ 25,972,000 | $ 26,096,000 |
Employee Stock Purchase Plan | |||
Expense recognized related to 401(k) plan | |||
Minimum number of calendar quarters to be employed for full-time employees to be eligible to participate in the ESPP | 3 months | ||
Maximum fair value of capital stock permitted to be purchased by employees in any one year under ESPP | $ 25,000 | ||
Employee Stock Purchase Plan | Class A common stock | |||
Expense recognized related to 401(k) plan | |||
Number of shares authorized to be issued under Employee Stock Purchase Plan (ESPP) | 2.8 | ||
Shares of common stock available for future grant under stock incentive plans | 1 | ||
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 | 0.1 | 0.1 | 0.1 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | Dec. 28, 2012$ / shares | Jan. 31, 2013employee$ / sharesshares | Dec. 31, 2015shares | Dec. 31, 2014shares | Dec. 31, 2013shares | Dec. 31, 2012shares |
Stock-Based Compensation | ||||||
Stock Awards Outstanding (in shares) | 6,807,169 | |||||
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 | 69,000,000 | |||||
Dividend in cash per share (in dollars per share) | $ / shares | $ 1 | |||||
Class B common stock | DISH Network Awards | ||||||
Stock-Based Compensation | ||||||
Dividend in cash per share (in dollars per share) | $ / shares | $ 1 | |||||
Stock Options | Maximum | ||||||
Stock-Based Compensation | ||||||
Expiration term | 10 years | |||||
Stock Options | DISH Network Awards | ||||||
Stock-Based Compensation | ||||||
Stock Awards Outstanding (in shares) | 6,807,169 | 10,214,344 | 11,938,090 | 13,018,490 | ||
Stock Options | EchoStar awards | ||||||
Stock-Based Compensation | ||||||
Stock Awards Outstanding (in shares) | 44,548 | |||||
Stock Options | Class A common stock | DISH Network Awards | ||||||
Stock-Based Compensation | ||||||
Stock Awards Outstanding (in shares) | 6,800,000 | |||||
Stock Options | Long-Term Performance Based Plans | DISH Network Awards | ||||||
Stock-Based Compensation | ||||||
Stock Awards Outstanding (in shares) | 3,904,500 | 5,926,500 | 6,468,500 | |||
Stock Options | Stock option adjustment 2012 | DISH Network Awards | ||||||
Stock-Based Compensation | ||||||
Number of stock options subject to an exercise price change in connection with the Stock Option Adjustment (in shares) | 12,900,000 | |||||
Number of employees affected by stock option adjustment | employee | 400 | |||||
Reduction in exercise price due to dividend declaration (in dollars per share) | $ / shares | $ 0.77 | |||||
Restricted Stock Units | DISH Network Awards | ||||||
Stock-Based Compensation | ||||||
Restricted stock units outstanding (in shares) | 1,382,250 | 1,731,332 | 1,863,165 | 1,076,748 | ||
Restricted Stock Units | Held by DISH DBS employees | DISH Network Awards | ||||||
Stock-Based Compensation | ||||||
Restricted stock units outstanding (in shares) | 1,382,250 |
Stock-Based Compensation (Det55
Stock-Based Compensation (Details 2) - $ / shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
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) | 6,807,169 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 5 years 7 months 21 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 31.17 | |||
Number of stock options exercisable | 1,927,069 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 4 years 6 months 22 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 26.87 | |||
Stock Options | DISH Network Awards | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Number of stock options outstanding (in shares) | 6,807,169 | 10,214,344 | 11,938,090 | 13,018,490 |
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 31.17 | $ 25.29 | $ 22.49 | $ 18.99 |
Number of stock options exercisable | 1,927,069 | 3,107,544 | 4,061,289 | |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 26.87 | $ 19.81 | $ 17.88 | |
Range of Exercise Prices $00.00 - $10.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 10 | |||
Number of stock options outstanding (in shares) | 236,379 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 2 years 4 months 17 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 6.35 | |||
Number of stock options exercisable | 236,379 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 2 years 4 months 17 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 6.35 | |||
Range Of Exercise Prices $10.01 - $20.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 10.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 20 | |||
Number of stock options outstanding (in shares) | 1,944,187 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 4 years 5 months 9 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 15.48 | |||
Number of stock options exercisable | 144,187 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 3 years 8 months 19 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 16.67 | |||
Range of Exercise Prices $20.01 - $30.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 20.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 30 | |||
Number of stock options outstanding (in shares) | 1,892,978 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 4 years 11 months 19 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 26.33 | |||
Number of stock options exercisable | 1,171,378 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 4 years 6 months 15 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 26.12 | |||
Range of Exercise Prices $30.01 - $40.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 30.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 40 | |||
Number of stock options outstanding (in shares) | 1,633,075 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 6 years 9 months 7 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 36.12 | |||
Number of stock options exercisable | 227,975 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 6 years 2 months 27 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 35.07 | |||
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) | 21,400 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 5 years 9 months | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 44.65 | |||
Number of stock options exercisable | 8,000 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 3 years 1 month 24 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 42.92 | |||
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) | 113,500 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 7 years 26 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 58.09 | |||
Number of stock options exercisable | 24,000 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 4 years 8 months 16 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 57.92 | |||
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) | 945,650 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 8 years 2 months 5 days | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 66.37 | |||
Number of stock options exercisable | 95,150 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 7 years 8 months 23 days | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 64.01 | |||
Range of Exercise Prices $70.01 - $70.00 | ||||
Exercise prices for stock options outstanding and exercisable: | ||||
Exercise prices, outstanding stock option awards, low end of range (in dollars per share) | 70.01 | |||
Exercise prices, outstanding stock option awards, high end of range (in dollars per share) | $ 80 | |||
Number of stock options outstanding (in shares) | 20,000 | |||
Outstanding, Weighted-Average Remaining Contractual Life | 4 years | |||
Outstanding, Weighted-Average Exercise Price (in dollars per share) | $ 72.89 | |||
Number of stock options exercisable | 20,000 | |||
Exercisable, Weighted-Average Remaining Contractual Life | 4 years | |||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 72.89 |
Stock-Based Compensation (Det56
Stock-Based Compensation (Details 3) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock option activity | |||
Total options outstanding, end of period (in shares) | 6,807,169 | ||
Exercisable at the end of the period (in shares) | 1,927,069 | ||
Weighted-Average Exercise Price | |||
Total options outstanding at the end of the period (in dollars per share) | $ 31.17 | ||
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 26.87 | ||
Stock Options | DISH Network Awards | |||
Stock option activity | |||
Total options outstanding, beginning of period (in shares) | 10,214,344 | 11,938,090 | 13,018,490 |
Granted (in shares) | 452,000 | 667,750 | 2,225,500 |
Exercised (in shares) | (1,731,975) | (2,233,496) | (3,172,900) |
Forfeited and cancelled (in shares) | (2,127,200) | (158,000) | (133,000) |
Total options outstanding, end of period (in shares) | 6,807,169 | 10,214,344 | 11,938,090 |
Exercisable at the end of the period (in shares) | 1,927,069 | 3,107,544 | 4,061,289 |
Weighted-Average Exercise Price | |||
Total options outstanding, beginning of the period (in dollars per share) | $ 25.29 | $ 22.49 | $ 18.99 |
Granted (in dollars per share) | 69.11 | 63.23 | 36.75 |
Exercised (in dollars per share) | 16.26 | 20.49 | 14.70 |
Forfeited and cancelled (in dollars per share) | 23.12 | 41.84 | 30.25 |
Total options outstanding at the end of the period (in dollars per share) | 31.17 | 25.29 | 22.49 |
Exercisable, Weighted-Average Exercise Price (in dollars per share) | $ 26.87 | $ 19.81 | $ 17.88 |
Stock Options | DISH Network Awards | Long-Term Performance Based Plans | |||
Stock option activity | |||
Total options outstanding, beginning of period (in shares) | 5,926,500 | 6,468,500 | |
Total options outstanding, end of period (in shares) | 3,904,500 | 5,926,500 | 6,468,500 |
Weighted-Average Exercise Price | |||
Total options outstanding, beginning of the period (in dollars per share) | $ 25.15 | $ 24.92 | |
Total options outstanding at the end of the period (in dollars per share) | $ 28.03 | $ 25.15 | $ 24.92 |
Stock-Based Compensation (Det57
Stock-Based Compensation (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Options | |||
Stock-Based Compensation | |||
Tax benefit from stock awards exercised | $ 33,716 | $ 42,334 | $ 37,583 |
Stock-Based Compensation (Det58
Stock-Based Compensation (Details 5) - Stock Options - DISH Network Awards $ in Thousands | Dec. 31, 2015USD ($) |
Aggregate intrinsic value | |
Aggregate intrinsic value of stock options outstanding | $ 186,144 |
Aggregate intrinsic value of stock options exercisable | $ 59,395 |
Stock-Based Compensation (Det59
Stock-Based Compensation (Details 6) - Restricted Stock Units - DISH Network Awards - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted stock unit activity | |||
Total restricted stock units outstanding, beginning of period (in shares) | 1,731,332 | 1,863,165 | 1,076,748 |
Granted (in shares) | 62,530 | 316,500 | 990,000 |
Vested (in shares) | (125,280) | (278,000) | (135,250) |
Forfeited and cancelled (in shares) | (286,332) | (170,333) | (68,333) |
Total restricted stock units outstanding, end of period (in shares) | 1,382,250 | 1,731,332 | 1,863,165 |
Weighted- Average Grant Date Fair Value | |||
Total restricted stock units outstanding, beginning of period (in dollars per share) | $ 32.60 | $ 29.27 | $ 22.82 |
Granted (in dollars per share) | 68.79 | 63.57 | 36.53 |
Vested (in dollars per share) | 63.92 | 45.04 | 29.19 |
Forfeited and cancelled (in dollars per share) | 29.67 | 33.43 | 32.91 |
Total restricted stock units outstanding, end of period (in dollars per share) | $ 32.01 | $ 32.60 | $ 29.27 |
Stock-Based Compensation (Det60
Stock-Based Compensation (Details 7) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2005 | Jun. 30, 2013 | Dec. 31, 2012 | |
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | $ 19,199 | $ 34,024 | $ 29,647 | |||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 6,807,169 | |||||
Weighted-Average Exercise Price (in dollars per share) | $ 31.17 | |||||
Long-Term Performance Based Plans | ||||||
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | $ 11,851 | $ 26,456 | 14,901 | |||
LTIP 2,005 | ||||||
2005 LTIP Terms | ||||||
Awards vesting period | 7 years | |||||
Percentage awards vesting per annum during first four years | 10.00% | |||||
Percentage awards vesting per annum after first four years | 20.00% | |||||
LTIP 2,008 | ||||||
Share-based compensation additional disclosures | ||||||
Portion vested (as a percent) | 100.00% | |||||
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | $ 2,719 | |||||
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 | $ 10,157 | $ 12,361 | $ 8,137 | |||
Other Employee Performance Awards | ||||||
Recognized non-cash stock-based compensation expense | ||||||
Non-cash stock-based compensation expense recognized | 1,694 | $ 14,095 | $ 4,045 | |||
DISH Network Awards | 2013 LTIP | ||||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | ||||||
Expense estimated to be recognized during 2015 | 7,112 | |||||
Estimated contingent expense subsequent to 2015 | 39,218 | |||||
Total estimated remaining expense over the term of plan | 46,330 | |||||
DISH Network Awards | Other Employee Performance Awards | ||||||
Estimated Remaining Non-Cash, Stock-Based Compensation Expense | ||||||
Estimated contingent expense subsequent to 2015 | 36,087 | |||||
Total estimated remaining expense over the term of plan | $ 36,087 | |||||
Stock Options | DISH Network Awards | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 6,807,169 | 10,214,344 | 11,938,090 | 13,018,490 | ||
Weighted-Average Exercise Price (in dollars per share) | $ 31.17 | $ 25.29 | $ 22.49 | $ 18.99 | ||
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) | 3,904,500 | 5,926,500 | 6,468,500 | |||
Weighted-Average Exercise Price (in dollars per share) | $ 28.03 | $ 25.15 | $ 24.92 | |||
Stock Options | DISH Network Awards | 2013 LTIP | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 1,564,500 | |||||
Weighted-Average Exercise Price (in dollars per share) | $ 42.63 | |||||
Stock Options | DISH Network Awards | Other Employee Performance Awards | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 2,340,000 | |||||
Weighted-Average Exercise Price (in dollars per share) | $ 18.27 | |||||
Stock Options | EchoStar awards | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Performance Based Stock Options (in shares) | 44,548 | |||||
Restricted Stock Units | DISH Network Awards | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Restricted Performance Units (in shares) | 1,382,250 | 1,731,332 | 1,863,165 | 1,076,748 | ||
Restricted Stock Units | DISH Network Awards | 2013 LTIP | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Restricted Performance Units (in shares) | 782,250 | |||||
Restricted Stock Units | DISH Network Awards | Other Employee Performance Awards | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Restricted Performance Units (in shares) | 600,000 | |||||
Restricted Stock Units | DISH Network Awards | Held by DISH DBS employees | ||||||
Outstanding awards pursuant to performance-based stock incentive plans | ||||||
Restricted Performance Units (in shares) | 1,382,250 |
Stock-Based Compensation (Det61
Stock-Based Compensation (Details 8) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-Based Compensation | |||
Non-cash, stock-based compensation | $ 19,199 | $ 34,024 | $ 29,647 |
Non-Performance Based Stock Awards | |||
Stock-Based Compensation | |||
Unrecognized compensation expense | $ 14,000 | ||
Future forfeiture rate (as a percent) | 3.60% | ||
Weighted average period for recognition of compensation cost | 2 years | ||
Stock option adjustment 2012 | |||
Stock-Based Compensation | |||
Non-cash, stock-based compensation | 4,000 | ||
Subscriber-related | |||
Stock-Based Compensation | |||
Non-cash, stock-based compensation | $ 2,164 | 1,859 | 1,947 |
General and administrative | |||
Stock-Based Compensation | |||
Non-cash, stock-based compensation | $ 17,035 | $ 32,165 | $ 27,700 |
Stock-Based Compensation (Det62
Stock-Based Compensation (Details 9) - $ / shares | Dec. 28, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Class A common stock | DISH Network Awards | ||||
Black-Scholes option valuation model, assumptions | ||||
Dividend in cash per share (in dollars per share) | $ 1 | |||
Class B common stock | DISH Network Awards | ||||
Black-Scholes option valuation model, assumptions | ||||
Dividend in cash per share (in dollars per share) | $ 1 | |||
Stock Options | ||||
Black-Scholes option valuation model, assumptions | ||||
Risk-free interest rate, low end of range (as a percent) | 1.40% | 1.80% | 0.91% | |
Risk-free interest rate, high end of range (as a percent) | 2.19% | 2.84% | 2.66% | |
Volatility factor, low end of range (as a percent) | 26.42% | 28.53% | 32.37% | |
Volatility factor, high end of range (as a percent) | 36.22% | 38.62% | 39.87% | |
Stock Options | Maximum | ||||
Black-Scholes option valuation model, assumptions | ||||
Expected term of options | 7 years 9 months 18 days | 9 years | 10 years | |
Weighted-average fair value of options granted (in dollars per share) | $ 29.73 | $ 29.20 | $ 21.09 | |
Stock Options | Minimum | ||||
Black-Scholes option valuation model, assumptions | ||||
Expected term of options | 5 years 6 months | 5 years 6 months | 5 years 7 months 6 days | |
Weighted-average fair value of options granted (in dollars per share) | $ 16.14 | $ 19.08 | $ 14.49 |
Commitments and Contingencies63
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitment and Contingencies | |
Total | $ 22,336,092 |
2,016 | 4,440,947 |
2,017 | 2,266,742 |
2,018 | 2,397,224 |
2,019 | 2,469,765 |
2,020 | 1,860,340 |
Thereafter | 8,901,074 |
Long-term debt obligations | |
Commitment and Contingencies | |
Total | 13,613,686 |
2,016 | 1,501,079 |
2,017 | 901,097 |
2,018 | 1,201,163 |
2,019 | 1,401,233 |
2,020 | 1,101,307 |
Thereafter | 7,507,807 |
Capital lease obligations. | |
Commitment and Contingencies | |
Total | 166,492 |
2,016 | 30,849 |
2,017 | 32,994 |
2,018 | 36,175 |
2,019 | 19,503 |
2,020 | 19,137 |
Thereafter | 27,834 |
Interest expense on long-term debt and capital lease obligations | |
Commitment and Contingencies | |
Total | 4,186,257 |
2,016 | 770,957 |
2,017 | 714,722 |
2,018 | 644,542 |
2,019 | 616,490 |
2,020 | 476,593 |
Thereafter | 962,953 |
Satellite-related obligations | |
Commitment and Contingencies | |
Total | 1,911,033 |
2,016 | 362,684 |
2,017 | 336,526 |
2,018 | 327,197 |
2,019 | 301,102 |
2,020 | 241,371 |
Thereafter | 342,153 |
Operating lease obligations | |
Commitment and Contingencies | |
Total | 178,918 |
2,016 | 52,305 |
2,017 | 32,960 |
2,018 | 22,563 |
2,019 | 15,623 |
2,020 | 10,040 |
Thereafter | 45,427 |
Purchase obligations | |
Commitment and Contingencies | |
Total | 2,279,706 |
2,016 | 1,723,073 |
2,017 | 248,443 |
2,018 | 165,584 |
2,019 | 115,814 |
2,020 | 11,892 |
Thereafter | $ 14,900 |
Commitments and Contingencies64
Commitments and Contingencies (Details 2) $ in Thousands | Feb. 20, 2014USD ($)item | Dec. 31, 2015USD ($) |
Operating lease obligations | ||
2,016 | $ 4,440,947 | |
2,017 | 2,266,742 | |
2,018 | 2,397,224 | |
2,019 | 2,469,765 | |
2,020 | 1,860,340 | |
Thereafter | 8,901,074 | |
Long-term debt obligations | ||
Operating lease obligations | ||
2,016 | 1,501,079 | |
2,017 | 901,097 | |
2,018 | 1,201,163 | |
2,019 | 1,401,233 | |
2,020 | 1,101,307 | |
Thereafter | 7,507,807 | |
Interest expense on long-term debt and capital lease obligations | ||
Operating lease obligations | ||
2,016 | 770,957 | |
2,017 | 714,722 | |
2,018 | 644,542 | |
2,019 | 616,490 | |
2,020 | 476,593 | |
Thereafter | $ 962,953 | |
Satellite and Tracking Stock Transaction | EchoStar and HSSC | ||
Commitments | ||
Number of owned satellites transferred and leased back | item | 5 | |
Cash in exchange for shares of series of preferred tracking stock issued | $ 11,000 |
Commitments and Contingencies65
Commitments and Contingencies (Details 3) $ in Thousands | Feb. 12, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Spectrum Investments | ||||||||||
Number of wireless spectrum licenses | item | 176 | 176 | ||||||||
Dividend paid to DOC | $ 8,250,000 | $ 1,500,000 | $ 1,500,000 | $ 8,250,000 | $ 8,250,000 | $ 2,150,000 | ||||
Unrecognized tax benefits | 202,400 | $ 207,675 | $ 207,675 | $ 202,400 | $ 145,884 | $ 185,669 | ||||
Dish Network [Member] | Northstar Wireless or Northstar Spectrum | ||||||||||
Spectrum Investments | ||||||||||
Total debt and equity investments in subsidiaries | $ 10,000,000 | 10,000,000 | ||||||||
Dish Network | ||||||||||
Spectrum Investments | ||||||||||
Payment to acquire certain wireless licenses | $ 5,000,000 | $ 5,000,000 |
Commitments and Contingencies66
Commitments and Contingencies (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments | |||
Total rent expense for operating leases | $ 477 | $ 468 | $ 303 |
Minimum | |||
Commitments | |||
Term of programming contracts | 1 year | ||
Maximum | |||
Commitments | |||
Term of programming contracts | 10 years |
Commitments and Contingencies67
Commitments and Contingencies (Details 5) $ in Thousands | Jul. 08, 2014USD ($) | Dec. 23, 2013USD ($) | May 31, 2012 | Jul. 31, 2009item | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Mar. 31, 2012USD ($) | Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Loss contingencies | |||||||||||||
General and administrative expenses | $ 181,805 | $ 167,802 | $ 373,872 | $ 359,476 | $ 745,366 | $ 762,146 | $ 687,122 | ||||||
LightSquared transaction shareholder derivative actions | |||||||||||||
Loss contingencies | |||||||||||||
Number of shareholders who filed lawsuits | item | 5 | 5 | |||||||||||
Lightsquared Harbinger Capital Partners LLC | |||||||||||||
Loss contingencies | |||||||||||||
Business days allowed to terminate existing agreements | 3 days | ||||||||||||
Satellite transponder guarantees | |||||||||||||
Loss contingencies | |||||||||||||
Guarantees for payments | $ 216,000 | $ 216,000 | $ 248,000 | ||||||||||
Technology Development Licensing | |||||||||||||
Loss contingencies | |||||||||||||
Number of reexamination petitions pending before patent and trademark office | item | 2 | ||||||||||||
Hopper litigation | Maximum | |||||||||||||
Loss contingencies | |||||||||||||
Number of days to store HD primetime programs recordings | 8 days | ||||||||||||
Do Not Call 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 | |||||||||||
Do Not Call Litigation | DISH Network L.L.C. | |||||||||||||
Loss contingencies | |||||||||||||
State, claim amount | $ 23,500,000 | ||||||||||||
Federal, claim amount | 900,000 | ||||||||||||
Claim amount | $ 270,000 | 270,000 | |||||||||||
Do Not Call Litigation | DISH Network L.L.C. | CALIFORNIA | |||||||||||||
Loss contingencies | |||||||||||||
Claim amount | 100,000 | ||||||||||||
Do Not Call Litigation | DISH Network L.L.C. | OHIO | |||||||||||||
Loss contingencies | |||||||||||||
Claim amount | 10,000 | ||||||||||||
Lightsquared Harbinger Capital Partners LLC | |||||||||||||
Loss contingencies | |||||||||||||
Business days allowed to terminate existing agreements | 3 days | ||||||||||||
Lightsquared Harbinger Capital Partners LLC | DISH Network L.L.C. | |||||||||||||
Loss contingencies | |||||||||||||
Claim amount | $ 1,500,000 | ||||||||||||
Lightsquared Harbinger Capital Partners LLC | Minimum | |||||||||||||
Loss contingencies | |||||||||||||
Claim amount | $ 500,000 | ||||||||||||
Personalized Media Communications Inc | Maximum | |||||||||||||
Loss contingencies | |||||||||||||
Claim amount | $ 450,000 | $ 650,000 | |||||||||||
Personalized Media Communications Inc | Minimum | |||||||||||||
Loss contingencies | |||||||||||||
Claim amount | $ 150,000 | $ 500,000 |
Valuation and Qualifying Acco68
Valuation and Qualifying Accounts (Details) - Allowance for doubtful accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Activity in Valuation and Qualifying Accounts | |||
Balance at Beginning of Year | $ 23,520 | $ 15,981 | $ 13,834 |
Charged to Cost and Expenses | 94,205 | 151,016 | 125,664 |
Deductions | (96,753) | (143,477) | (123,517) |
Balance at End of Year | $ 20,972 | $ 23,520 | $ 15,981 |
Quarterly Financial Data (Una69
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data (Unaudited) | ||||||||||||||
Total revenue | $ 3,719,415 | $ 3,668,205 | $ 3,624,548 | $ 3,724,434 | $ 3,621,062 | $ 3,583,266 | $ 3,585,372 | $ 3,598,565 | $ 3,510,210 | $ 7,391,569 | $ 7,345,496 | $ 14,638,249 | $ 14,277,413 | $ 13,695,612 |
Operating income (loss) | 612,686 | 532,327 | 461,038 | 553,024 | 506,289 | 602,406 | 420,459 | 497,196 | 508,270 | 1,184,351 | 1,059,313 | 2,052,678 | 2,028,331 | 2,127,546 |
Net income (loss) attributable to DISH DBS | $ 263,394 | $ 207,936 | $ 172,154 | $ 212,113 | $ 187,932 | $ 289,206 | $ 155,041 | $ 190,486 | $ 190,152 | $ 525,628 | $ 400,045 | $ 780,135 | $ 824,885 | $ 825,022 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands | Feb. 12, 2015USD ($) | Feb. 12, 2015USD ($) | Oct. 14, 2014USD ($) | Mar. 28, 2014USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Related Party Transaction [Line Items] | |||||||||||
Dividend paid to DOC | $ 8,250,000 | $ 1,500,000 | $ 1,500,000 | $ 8,250,000 | $ 8,250,000 | $ 2,150,000 | |||||
Number of wireless spectrum licenses | item | 176 | ||||||||||
Aggregate dividend declared | $ 8,250,000 | 2,150,000 | |||||||||
Subscriber-related expenses | 2,171,678 | $ 2,167,880 | 4,323,105 | 4,272,976 | 8,511,404 | 8,066,642 | $ 7,677,111 | ||||
Subscriber-related revenue | 3,709,800 | 3,693,872 | 7,370,465 | 7,284,576 | 14,524,510 | 14,130,607 | 13,559,511 | ||||
Trade accounts receivable | 821,177 | 821,177 | 822,505 | 902,186 | |||||||
Trade accounts payable | 525,688 | 525,688 | 433,349 | 388,198 | |||||||
Equipment sales and other revenue | 9,615 | 30,562 | 21,104 | 60,920 | 113,739 | 146,806 | 136,101 | ||||
Blockbuster, Wireless and Other Segments | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Expenses associated with services | 18,000 | 18,000 | 36,000 | 41,000 | 14,000 | 12,000 | 10,000 | ||||
Dish Network | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Dividend paid to DOC | $ 8,250,000 | $ 1,500,000 | $ 650,000 | ||||||||
Subscriber-related revenue | 0 | 2,000 | 2,000 | 6,000 | |||||||
Dish Network | Advertising Sales [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Subscriber-related revenue | 10,000 | 18,000 | 15,000 | ||||||||
Blockbuster, Inc. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Subscriber-related expenses | 11,000 | ||||||||||
EchoStar | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Subscriber-related expenses | 2,000 | 3,000 | 5,000 | 6,000 | 12,000 | 9,000 | 5,000 | ||||
Trade accounts receivable | 18,000 | 18,000 | 23,000 | 31,000 | |||||||
Trade accounts payable | 316,000 | 316,000 | 263,000 | 236,000 | |||||||
Equipment sales and other revenue | $ 1,000 | $ 13,000 | $ 1,000 | $ 26,000 | $ 46,000 | $ 62,000 | $ 43,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative Part 1 (Details) $ in Thousands | Jan. 02, 2012 | Feb. 23, 2010 | Feb. 23, 2010 | May 31, 2013 | Jan. 31, 2012item | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)item |
Related Party Transaction [Line Items] | ||||||||||||
Subscriber-related expenses | $ 2,171,678 | $ 2,167,880 | $ 4,323,105 | $ 4,272,976 | $ 8,511,404 | $ 8,066,642 | $ 7,677,111 | |||||
Satellite and transmission expenses | 176,694 | 192,556 | 349,915 | 377,236 | $ 753,853 | 685,732 | 527,483 | |||||
EchoStar XV | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Minimum required notice period for termination of agreement by related party | 30 days | |||||||||||
EchoStar | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Notice period for termination of agreement | 120 days | |||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||
Subscriber-related expenses | 2,000 | 3,000 | 5,000 | 6,000 | $ 12,000 | 9,000 | 5,000 | |||||
Satellite and transmission expenses | $ 168,000 | $ 183,000 | $ 332,000 | $ 358,000 | $ 715,000 | $ 646,000 | $ 487,000 | |||||
EchoStar | Remanufactured Receiver Agreement | Minimum | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Minimum required notice period for termination of agreement by related party | 60 days | 60 days | ||||||||||
EchoStar | El Paso Lease Agreement | Dish Network | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of consecutive three year renewal options | item | 4 | 4 | ||||||||||
Agreement Renewal Option Term | 3 years | 3 years | ||||||||||
EchoStar | EchoStar XV | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Notice period for termination of agreement | 30 days | |||||||||||
EchoStar | DISH Remote Access Services Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Agreement term | 5 years | |||||||||||
Automatic renewal period | 1 year | 1 year | ||||||||||
Additional term of renewal option | 1 year | |||||||||||
Required notice period for termination by the reporting entity | 120 days | 120 days | ||||||||||
EchoStar | Sling Service Services Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Agreement term | 5 years | |||||||||||
Automatic renewal period | 1 year | 1 year | ||||||||||
Additional term of renewal option | 1 year | |||||||||||
Required notice period for termination by the reporting entity | 120 days | 120 days |
Related Party Transactions - 72
Related Party Transactions - Narrative Part 2 (Details) $ in Millions | Mar. 02, 2014 | Dec. 21, 2012 | Dec. 21, 2012 | Jan. 02, 2012 | Jan. 02, 2012 | Jun. 30, 2013 | May 31, 2013 | May 31, 2012 | May 31, 2010 | Mar. 31, 2014item | Sep. 30, 2013USD ($) | Mar. 31, 2013item | Dec. 31, 2015USD ($) | Dec. 31, 2009item | Dec. 31, 2008item |
Related Party Transaction [Line Items] | |||||||||||||||
Redeemable noncontrolling interest, net of deferred taxes | $ | $ 10 | ||||||||||||||
EchoStar XVI | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Agreement Renewal Option Term | 5 years | ||||||||||||||
EchoStar | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Notice period for termination of agreement | 120 days | ||||||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||||||
EchoStar | Certain Sports Related Programming Broadcast Agreement | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Agreement term | 10 years | ||||||||||||||
EchoStar | EchoStar VIII | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Notice period for termination of agreement | 30 days | 30 days | |||||||||||||
EchoStar | EchoStar XVI | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Agreement term from commencement of service date | 4 years | 4 years | |||||||||||||
Agreement Renewal Option Term | 5 years | ||||||||||||||
Additional term of renewal option | 5 years | ||||||||||||||
EchoStar | Telesat Transponder Agreement | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Agreement term | 15 years | ||||||||||||||
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 DBS transponders expected to receive services | 24 | ||||||||||||||
Number of transponders subleased | 5 | 5 | |||||||||||||
EchoStar | 103 degree orbital location member | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Agreement term | 10 years | ||||||||||||||
Agreement term from commencement of service date | 10 years | ||||||||||||||
Payments to the related party | $ | $ 23 | ||||||||||||||
Net book value of asset | $ | 20 | ||||||||||||||
Capital distribution | $ | $ 3 | ||||||||||||||
EchoStar | TT&C Agreement | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Required notice period for termination by the reporting entity | 60 days | ||||||||||||||
EchoStar | Prior Broadcast Agreement | Minimum | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Required notice period for termination by the reporting entity | 60 days |
Related Party Transactions - 73
Related Party Transactions - Narrative Part 3 (Details) $ in Thousands | Nov. 12, 2015 | Aug. 02, 2014USD ($) | May 06, 2014 | Jul. 02, 2012 | Jan. 02, 2012 | Jan. 02, 2010 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2014 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2009 | Aug. 01, 2014USD ($) |
Related Party Transaction [Line Items] | ||||||||||||||||||
General and administrative expenses | $ 181,805 | $ 167,802 | $ 373,872 | $ 359,476 | $ 745,366 | $ 762,146 | $ 687,122 | |||||||||||
Deemed Distribution Redeemable Noncontrolling Interest Fair Value Net Of Deferred Tax | 14,011 | |||||||||||||||||
Gilbert Lease Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Number of successive one year renewal options | item | 3 | |||||||||||||||||
Additional term of renewal option | 1 year | |||||||||||||||||
XiP Encryption Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Minimum notice period for termination of agreement | 30 days | |||||||||||||||||
DISH Digital Holding LLC | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Ownership percentage | 90.00% | 90.00% | ||||||||||||||||
Voting interest (as a percent) | 100.00% | 100.00% | ||||||||||||||||
Additional paid in capital recorded due to difference between the historical cost basis of the assets transferred | $ 6,000 | |||||||||||||||||
Deemed Distribution Redeemable Noncontrolling Interest Fair Value Net Of Deferred Tax | $ 14,000 | |||||||||||||||||
EchoStar | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
General and administrative expenses | $ 25,000 | $ 23,000 | $ 47,000 | $ 43,000 | $ 92,000 | $ 101,000 | $ 69,000 | |||||||||||
Ownership percentage | 33.00% | |||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||
EchoStar | Product Support Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination by the reporting entity | 60 days | |||||||||||||||||
EchoStar | Product Support Agreement | Minimum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination by the reporting entity | 60 days | |||||||||||||||||
EchoStar | Inverness Lease Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination of agreement | 6 months | 6 months | ||||||||||||||||
EchoStar | Gilbert Lease Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||
EchoStar | DISH Online.com Services Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Term of renewal option exercised | 1 year | 1 year | ||||||||||||||||
Agreement term | 2 years | |||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||
EchoStar | DISH Online.com Services Agreement | Minimum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination by the reporting entity | 120 days | |||||||||||||||||
EchoStar | Application Development Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination of agreement | 90 days | |||||||||||||||||
Minimum notice period for termination of agreement | 90 days | |||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||
EchoStar | XiP Encryption Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination by the reporting entity | 30 days | |||||||||||||||||
Required notice period for termination of agreement | 180 days | 180 days | ||||||||||||||||
Additional term of renewal option | 1 year | |||||||||||||||||
Term of renewal option exercised | 1 year | |||||||||||||||||
Agreement term extend option | 1 year | |||||||||||||||||
Notice period required to extend the agreement term | 180 days | 180 days | ||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||
EchoStar | DISH Digital Holding LLC | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Ownership percentage | 10.00% | |||||||||||||||||
Dish Network | EchoStar | Professional Services Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Minimum notice period for termination of agreement | 60 days | 60 days | ||||||||||||||||
Minimum notice period for termination of a specific service | 30 days | 30 days | ||||||||||||||||
Agreement term | 1 year | 1 year | ||||||||||||||||
Automatic renewal period | 1 year | 1 year |
Related Party Transactions - 74
Related Party Transactions - Narrative Part 4 (Details) $ in Thousands | Jan. 02, 2012 | Apr. 29, 2011USD ($)iteminstallment | Jun. 30, 2015USD ($) | Jan. 31, 2012 | Dec. 31, 2011USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2011USD ($) |
Related Party Transaction [Line Items] | |||||||||||||
Cost of sales - equipment, services and other | $ 13,116 | $ 23,804 | $ 25,103 | $ 54,299 | $ 91,653 | $ 106,037 | $ 85,627 | ||||||
Dish Network | TiVo v. Dish Network and EchoStar Corporation | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Settlement amount | $ 500,000 | ||||||||||||
Initial settlement amount paid | 300,000 | ||||||||||||
Aggregate of six annual installment amounts between 2012 and 2017 | $ 200,000 | ||||||||||||
Litigation settlement number of annual installments | installment | 6 | ||||||||||||
Contribution from related party | $ 10,000 | ||||||||||||
Receiver Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Additional term of renewal option | 1 year | ||||||||||||
gTLD Agreement [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Net payment for agreement settlement | 1,000 | ||||||||||||
EchoStar | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||||
EchoStar | TiVo v. Dish Network and EchoStar Corporation | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Settlement amount | (500,000) | ||||||||||||
Initial settlement amount paid | 300,000 | ||||||||||||
Aggregate of six annual installment amounts between 2012 and 2017 | $ 200,000 | ||||||||||||
Litigation settlement number of annual installments | item | 6 | ||||||||||||
Contribution from related party | $ 10,000 | ||||||||||||
Percentage of litigation settlement amount to be made by related party annually | 95.00% | ||||||||||||
EchoStar | Receiver Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Minimum notice period for termination of agreement | 60 days | ||||||||||||
Purchased set-top boxes and other equipment from EchoStar | $ 183,000 | $ 193,000 | $ 430,000 | $ 416,000 | $ 753,000 | $ 1,114,000 | $ 1,242,000 | ||||||
Net payment for agreement settlement | $ 5,000 | ||||||||||||
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 | ||||||||||||
EchoStar | Prior Receiver Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Required notice period for termination by the reporting entity | 60 days |
Related Party Transactions - 75
Related Party Transactions - Narrative Part 5 (Details) - USD ($) $ in Thousands | Feb. 20, 2014 | Feb. 20, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2014 |
Satellite and Tracking Stock Transaction | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of economic interest in the Hughes Retail Group | 80.00% | 80.00% | ||||||||
EchoStar | Satellite and Tracking Stock Transaction | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Liabilities Transferred | $ 44,540 | |||||||||
Related Party Transactions Historical Cost of Tracking Stock | $ 229,000 | $ 229,000 | ||||||||
NagraStar | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Purchases from NagraStar | $ 18,782 | $ 24,524 | $ 37,884 | $ 47,022 | $ 89,195 | 84,636 | $ 91,712 | |||
Amounts payable to NagraStar | 18,311 | 19,362 | 18,311 | 19,362 | 19,362 | 14,819 | ||||
Commitments to NagraStar | $ 844 | $ 1,532 | $ 844 | $ 1,532 | $ 1,532 | $ 12,368 | ||||
EchoStar and HSSC | Satellite and Tracking Stock Transaction | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Liabilities Transferred | 59,000 | 59,000 | ||||||||
Cash in exchange for shares of series of preferred tracking stock issued | 11,000 | 11,000 | ||||||||
Capital transaction | 356,000 | 356,000 | ||||||||
Cash in Exchange of Shares Issued | 11,000 | 11,000 | ||||||||
Capital Distribution to Related Party in Connection Purchase of Strategic Investments | $ 51,000 | 51,000 | ||||||||
Tracking stock prohibited transfer period | 1 year | |||||||||
HSSC | Satellite and Tracking Stock Transaction | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Related Party Transactions Historical Cost of Tracking Stock | $ 87,000 | $ 87,000 | ||||||||
DISH Digital Holding LLC | EchoStar | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 204,072 | $ 419,926 |
Marketable investment securities | 4,720 | 141,335 |
Trade accounts receivable, net of allowance for doubtful accounts of $16,371 and $20,972, respectively | 821,177 | 822,505 |
Inventory | 475,154 | 390,253 |
Other current assets | 90,125 | 115,205 |
Total current assets | 1,595,248 | 1,889,224 |
Noncurrent Assets: | ||
Restricted cash, cash equivalents and marketable investment securities | 82,374 | 82,374 |
Property and equipment, net of accumulated depreciation of $2,903,562 and $2,871,457, respectively | 1,974,967 | 2,150,340 |
FCC authorizations | 635,794 | 635,794 |
Other investment securities | 324,371 | 327,250 |
Other noncurrent assets, net | 217,805 | 219,574 |
Total noncurrent assets | 3,235,311 | 3,415,332 |
Total assets | 4,830,559 | 5,304,556 |
Current Liabilities: | ||
Trade accounts payable | 525,688 | 433,349 |
Deferred revenue and other | 830,267 | 843,638 |
Accrued programming | 1,550,714 | 1,531,389 |
Accrued interest | 188,144 | 224,513 |
Other accrued expenses | 419,797 | 430,820 |
Current portion of long-term debt and capital lease obligations | 33,441 | 1,531,928 |
Total current liabilities | 3,548,051 | 4,995,637 |
Long-Term Obligations, Net of Current Portion: | ||
Long-term debt and capital lease obligations, net of current portion | 14,187,357 | 12,206,687 |
Deferred tax liabilities | 1,031,251 | 1,089,016 |
Long-term deferred revenue and other long-term liabilities | 206,149 | 164,682 |
Total long-term obligations, net of current portion | 15,424,757 | 13,460,385 |
Total liabilities | 18,972,808 | 18,456,022 |
Commitments and Contingencies (Note 8) | ||
Redeemable noncontrolling interests | 13,000 | 18,000 |
Stockholder's Equity (Deficit): | ||
Common stock, $.01 par value, 1,000,000 shares authorized, 1,015 shares issued and outstanding | ||
Additional paid-in capital | 1,308,699 | 1,309,138 |
Accumulated other comprehensive income (loss) | 123 | 12,039 |
Accumulated earnings (deficit) | (15,467,124) | (14,492,752) |
Total DISH DBS stockholder's equity (deficit) | (14,158,302) | (13,171,575) |
Noncontrolling interests | 3,053 | 2,109 |
Total stockholder's equity (deficit) | (14,155,249) | (13,169,466) |
Total liabilities and stockholder's equity (deficit) | $ 4,830,559 | $ 5,304,556 |
CONDENSED CONSOLIDATED BALANC77
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Allowance for doubtful accounts on trade accounts receivable | $ 16,371 | $ 20,972 |
Noncurrent Assets: | ||
Accumulated depreciation on property and equipment, net | $ 2,903,562 | $ 2,871,457 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 1,015 | 1,015 |
Common stock, shares outstanding | 1,015 | 1,015 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue: | ||||||||||||||
Subscriber-related revenue | $ 3,709,800 | $ 3,693,872 | $ 7,370,465 | $ 7,284,576 | $ 14,524,510 | $ 14,130,607 | $ 13,559,511 | |||||||
Equipment sales and other revenue | 9,615 | 30,562 | 21,104 | 60,920 | 113,739 | 146,806 | 136,101 | |||||||
Total revenue | 3,719,415 | $ 3,668,205 | $ 3,624,548 | 3,724,434 | $ 3,621,062 | $ 3,583,266 | $ 3,585,372 | $ 3,598,565 | $ 3,510,210 | 7,391,569 | 7,345,496 | 14,638,249 | 14,277,413 | 13,695,612 |
Costs and Expenses (exclusive of depreciation shown separately below - Note 6): | ||||||||||||||
Subscriber-related expenses | 2,171,678 | 2,167,880 | 4,323,105 | 4,272,976 | 8,511,404 | 8,066,642 | 7,677,111 | |||||||
Satellite and transmission expenses | 176,694 | 192,556 | 349,915 | 377,236 | 753,853 | 685,732 | 527,483 | |||||||
Cost of sales - equipment, services and other | 13,116 | 23,804 | 25,103 | 54,299 | 91,653 | 106,037 | 85,627 | |||||||
Subscriber acquisition costs: | ||||||||||||||
Cost of sales - subscriber promotion subsidies | 38,748 | 49,829 | 97,514 | 97,347 | 173,331 | 231,064 | 252,178 | |||||||
Other subscriber acquisition costs | 169,845 | 205,914 | 347,937 | 400,896 | 849,999 | 912,718 | 992,221 | |||||||
Subscriber acquisition advertising | 125,880 | 126,377 | 248,555 | 262,810 | 552,278 | 528,642 | 440,337 | |||||||
Total subscriber acquisition costs | 334,473 | 382,120 | 694,006 | 761,053 | 1,575,608 | 1,672,424 | 1,684,736 | |||||||
General and administrative expenses | 181,805 | 167,802 | 373,872 | 359,476 | 745,366 | 762,146 | 687,122 | |||||||
Depreciation and amortization (Note 6) | 228,963 | 237,248 | 441,217 | 461,143 | 907,687 | 956,101 | 905,987 | |||||||
Total costs and expenses | 3,106,729 | 3,171,410 | 6,207,218 | 6,286,183 | 12,585,571 | 12,249,082 | 11,568,066 | |||||||
Operating income (loss) | 612,686 | 532,327 | 461,038 | 553,024 | 506,289 | 602,406 | 420,459 | 497,196 | 508,270 | 1,184,351 | 1,059,313 | 2,052,678 | 2,028,331 | 2,127,546 |
Other Income (Expense): | ||||||||||||||
Interest income | 4,035 | 728 | 4,381 | 4,945 | 5,606 | 35,810 | 38,214 | |||||||
Interest expense, net of amounts capitalized | (191,751) | (219,328) | (383,088) | (441,338) | (862,231) | (834,856) | (878,550) | |||||||
Other, net | (2,006) | 392 | 30,387 | 483 | 14,480 | (3,394) | (2,833) | |||||||
Total other income (expense) | (189,722) | (218,208) | (348,320) | (435,910) | (842,145) | (802,440) | (843,169) | |||||||
Income (loss) before income taxes | 422,964 | 334,816 | 836,031 | 623,403 | 1,210,533 | 1,225,891 | 1,284,377 | |||||||
Income tax (provision) benefit, net | (164,008) | (125,871) | (321,570) | (230,471) | (447,640) | (410,831) | (459,655) | |||||||
Net income (loss) | 258,956 | 208,945 | 514,461 | 392,932 | 762,893 | 815,060 | 824,722 | |||||||
Less: Net income (loss) attributable to noncontrolling interests, net of tax | (4,438) | (3,168) | (11,167) | (7,113) | 17,242 | 9,825 | 300 | |||||||
Net income (loss) attributable to DISH DBS | 263,394 | $ 207,936 | $ 172,154 | 212,113 | $ 187,932 | $ 289,206 | $ 155,041 | $ 190,486 | $ 190,152 | 525,628 | 400,045 | 780,135 | 824,885 | 825,022 |
Comprehensive Income (Loss): | ||||||||||||||
Net income (loss) | 258,956 | 208,945 | 514,461 | 392,932 | 762,893 | 815,060 | 824,722 | |||||||
Other comprehensive income (loss): | ||||||||||||||
Unrealized holding gains (losses) on available-for-sale securities | 111 | 9,959 | (19,606) | (7,573) | (23,468) | 27,819 | 8,781 | |||||||
Deferred income tax (expense) benefit, net | 253 | (3,705) | 7,690 | 1,241 | 7,124 | (10,625) | (3,672) | |||||||
Total other comprehensive income (loss), net of tax | 364 | 6,254 | (11,916) | (6,332) | (16,344) | 17,194 | 5,109 | |||||||
Comprehensive income (loss) | 259,320 | 215,199 | 502,545 | 386,600 | 746,549 | 832,254 | 829,831 | |||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of tax | (4,438) | (3,168) | (11,167) | (7,113) | (17,242) | (9,825) | (300) | |||||||
Comprehensive income (loss) attributable to DISH DBS | $ 263,758 | $ 218,367 | $ 513,712 | $ 393,713 | $ 763,791 | $ 842,079 | $ 830,131 |
CONDENSED CONSOLIDATED STATEM79
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows From Operating Activities: | ||
Net income (loss) | $ 514,461 | $ 392,932 |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ||
Depreciation and amortization | 441,217 | 461,143 |
Realized and unrealized losses (gains) on investments | (32,322) | (618) |
Non-cash, stock-based compensation | 3,745 | 14,823 |
Deferred tax expense (benefit) | (47,591) | (63,677) |
Other, net | 52,005 | 29,712 |
Changes in current assets and current liabilities, net | 11,125 | 154,289 |
Net cash flows from operating activities | 942,640 | 988,604 |
Cash Flows From Investing Activities: | ||
(Purchases) Sales and maturities of marketable investment securities, net | 135,367 | 1,345,330 |
Purchases of property and equipment | (278,582) | (324,183) |
Other, net | 7,858 | (724) |
Net cash flows from investing activities | (135,357) | 1,020,423 |
Cash Flows From Financing Activities: | ||
Proceeds from issuance of senior notes | 2,000,000 | |
Dividend to DISH Orbital Corporation | (1,500,000) | (8,250,000) |
Redemption and repurchases of senior notes (Note 7) | (1,500,000) | (650,001) |
Advances from affiliates | 188,720 | |
Repayment of long-term debt and capital lease obligations | (15,589) | (13,772) |
Debt issuance costs | (7,676) | |
Other, net | 128 | 13,678 |
Net cash flows from financing activities | (1,023,137) | (8,711,375) |
Net increase (decrease) in cash and cash equivalents | (215,854) | (6,702,348) |
Cash and cash equivalents, beginning of period | 419,926 | 6,762,140 |
Cash and cash equivalents, end of period | $ 204,072 | $ 59,792 |
Organization and Business Act80
Organization and Business Activities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
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. 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, third-party 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. The Sling branded pay-TV services consist of, among other things, live, linear streaming over-the-top (“OTT”) Internet-based domestic, international and Latino video programming services (“Sling TV”). The Sling International video programming service (formerly known as DishWorld) was launched prior to 2015, which historically represented a small percentage of our Pay-TV subscribers. During February and June 2015, we launched our Sling domestic and Sling Latino services, respectively. In addition to these Sling TV services that may only be streamed on one device at a time (single-stream services), on April 13, 2016, we launched a live beta multi-stream Sling domestic service, which includes, among other things, the ability to stream on up to three devices simultaneously. During June 2016, our multi-stream Sling domestic service transitioned from its introductory beta period and has been re-branded as Sling Blue. Meanwhile, we re-branded our single stream Sling domestic service as Sling Orange. All Sling TV subscribers are included in our Pay-TV subscriber count. As of June 30, 2016, we had 13.593 million Pay-TV subscribers in the United States. | 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. 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, third-party 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. The Sling branded pay-TV services consist of, among other things, live, linear streaming over-the-top (“OTT”) Internet-based domestic, international and Latino video programming services (“Sling TV”). The Sling International video programming service (formerly known as DishWorld) was launched prior to 2015, which historically represented a small percentage of our Pay-TV subscribers. During 2015, we launched our Sling domestic and Sling Latino services. All Sling TV subscribers are included in our Pay-TV subscriber count. As of December 31, 2015, we had 13.897 million Pay-TV subscribers in the United States . |
Summary of Significant Accoun81
Summary of Significant Accounting Policies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
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, 2015. 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. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All significant intercompany accounts and transactions have been eliminated in consolidation. Redeemable Noncontrolling Interests Sling TV. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding L.L.C. (“Sling TV Holding,” formerly known as DISH Digital Holding L.L.C.) to us. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014. Effective August 1, 2014, EchoStar Corporation (“EchoStar”) and Sling TV Holding entered into an exchange agreement (the “Exchange Agreement”) pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal has been determined to be probable of achievement. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes on our Condensed Consolidated Balance Sheets. The operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” in our Condensed Consolidated Balance Sheets effective August 1, 2014, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 10 for further information on Sling TV Holding and the Exchange Agreement. 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 doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, 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. 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, 2016 and December 31, 2015, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) is equal to or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are estimated based on an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our long-term debt. New Accounting Pronouncements Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers . This converged standard on revenue recognition was issued jointly with the International Accounting Standards Board to create common revenue recognition guidance for GAAP and International Financial Reporting Standards. ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance when it becomes effective. ASU 2014-09 allows for either a full retrospective or modified retrospective adoption. We are evaluating the effect that ASU 2014-09 will have on our condensed consolidated financial statements and related disclosures. We have not yet selected an adoption method nor have we determined the effect of the standard on our ongoing financial reporting. The new standard could impact revenue and cost recognition for a significant number of our contracts, as well as our business processes and information technology systems. As a result, our evaluation of the effect of the new standard will likely extend over several future periods. On July 9, 2015, the FASB approved a one year deferral on the effective date for implementation of this standard, which changed the effective date for us to January 1, 2018. Recognition and Measurement of Financial Assets and Financial Liabilities . On January 5, 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-01 will have on our condensed consolidated financial statements. Leases. On F ebruary 25, 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases , which relates to the accounting of leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our condensed consolidated financial statements. Compensation – Stock Compensation. On March 30, 2016, the FASB issued ASU 2016-09 (“ASU 2016-09”), Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which relates to the accounting for employee share-based payments. This standard addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-09 will have on our condensed consolidated financial statements. | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation We consolidate all majority owned subsidiaries, investments in entities in which we have controlling influence and variable interest entities where we have been determined to be the primary beneficiary. Minority interests are recorded as noncontrolling interests or redeemable noncontrolling interests. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation. Redeemable Noncontrolling Interests Sling TV. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding L.L.C. (“Sling TV Holding,” formerly known as DISH Digital Holding L.L.C.) to us. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014. Effective August 1, 2014, EchoStar Corporation (“EchoStar”) and Sling TV Holding entered into an exchange agreement (the “Exchange Agreement”) pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal was determined to be probable during the third quarter 2015. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes on our Consolidated Balance Sheets. The operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” in our Consolidated Balance Sheets effective August 1, 2014, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 15 for further information on Sling TV Holding and the Exchange Agreement. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense for each reporting period. Estimates are used in accounting for, among other things, allowances for doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, 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, 2015 and 2014 may consist of money market funds, government bonds, corporate notes and commercial paper. The cost of these investments approximates their fair value. Marketable Investment Securities We currently classify all marketable investment securities as available-for-sale. We adjust the carrying amount of our available-for-sale securities to fair value and report the related temporary unrealized gains and losses as a separate component of “Accumulated other comprehensive income (loss)” within “Total stockholder’s equity (deficit),” net of related deferred income tax. Declines in the fair value of a marketable investment security which are determined to be “other-than-temporary” are recognized in the Consolidated Statements of Operations and Comprehensive Income (Loss), thus establishing a new cost basis for such investment. We evaluate our marketable investment securities portfolio on a quarterly basis to determine whether declines in the fair value of these securities are other-than-temporary. This quarterly evaluation consists of reviewing, among other things: · the fair value of our marketable investment securities compared to the carrying amount, · the historical volatility of the price of each security, and · any market and company specific factors related to each security. Declines in the fair value of debt and equity investments below cost basis are generally accounted for as follows: Length of Time Investment Has Been In a Continuous Treatment of the Decline in Value Loss Position (absent specific factors to the contrary) Less than six months Generally, considered temporary. Six to nine months Evaluated on a case by case basis to determine whether any company or market-specific factors exist indicating that such decline is other-than-temporary. Greater than nine months Generally, considered other-than-temporary. The decline in value is recorded as a charge to earnings. Additionally, in situations where the fair value of a debt security is below its carrying amount, we consider the decline to be other-than-temporary and record a charge to earnings if any of the following factors apply: · we have the intent to sell the security, · it is more likely than not that we will be required to sell the security before maturity or recovery, or · we do not expect to recover the security’s entire amortized cost basis, even if there is no intent to sell the security. In general, we use the first in, first out method to determine the cost basis on sales of marketable investment securities. Trade Accounts Receivable Management estimates the amount of required allowances for the potential non-collectability of accounts receivable based upon past collection experience and consideration of other relevant factors. However, past experience may not be indicative of future collections and therefore additional charges could be incurred in the future to reflect differences between estimated and actual collections. Inventory Inventory is stated at the lower of cost or market 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. The costs of satellites under construction, including interest and certain amounts prepaid under our satellite service agreements, are capitalized during the construction phase, assuming the eventual successful launch and in-orbit operation of the satellite. If a satellite were to fail during launch or while in-orbit, the resultant loss would be charged to expense in the period such loss was incurred. The amount of any such loss would be reduced to the extent of insurance proceeds estimated to be received, if any. Depreciation is recorded on a straight-line basis over useful lives ranging from one to 40 years. Repair and maintenance costs are charged to expense when incurred. Renewals and improvements that add value or extend the asset’s useful life are capitalized. 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, 2015. Indefinite Lived Intangible Assets We do not amortize indefinite lived intangible assets, but test these assets for impairment annually during the fourth quarter or more often if indicators of impairment arise. Intangible assets that have finite lives are amortized over their estimated useful lives and tested for impairment as described above for long-lived assets. Our intangible assets with indefinite lives primarily consist of FCC licenses. Generally, we have determined that our 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 FCC Licenses. We combine all of our indefinite-lived DBS FCC licenses that we currently utilize or plan to utilize in the future into a single unit of accounting. For 2015, management performed a qualitative assessment to determine whether it is more likely than not that the fair value of the DBS FCC licenses exceeds its carrying amount. In our assessment, we considered several qualitative factors, including, among others, overall financial performance, industry and market considerations, and relevant company specific events. In contemplating all factors in their totality, we concluded that it is more likely than not that the fair value of the DBS FCC licenses exceeds its carrying amount. As such, no further analysis was required. The DBS FCC licenses were assessed quantitatively in 2014 and 2013. Our quantitative assessments consisted of a discounted cash flow analysis encompassing future cash flows from satellites transmitting from such licensed orbital locations, including revenue attributable to programming offerings from such satellites, the direct operating and subscriber acquisition costs related to such programming, and future capital costs for replacement satellites. Projected revenue and cost amounts included projected subscribers. In conducting our annual impairment test in 2014 and 2013, we determined that the fair value of the DBS FCC licenses exceeded its carrying amount. Other Investment Securities Generally, we account for our unconsolidated equity investments under either the equity method or cost method of accounting. Because these equity securities are generally not publicly traded, it is not practical to regularly estimate the fair value of the investments; however, these investments are subject to an evaluation for other-than-temporary impairment on a quarterly basis. This quarterly evaluation consists of reviewing, among other things, company business plans, current financial statements and key financial metrics, if available, for factors that may indicate an impairment of our investment. Such factors may include, but are not limited to, cash flow concerns, material litigation, violations of debt covenants and changes in business strategy. The fair value of these equity investments is not estimated unless there are identified changes in circumstances that may indicate an impairment exists and these changes are likely to have a significant adverse effect on the fair value of the investment. Long-Term Deferred Revenue, Distribution and Carriage Payments 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 in our Consolidated Balance Sheets in “Deferred revenue and other” and “Long-term deferred revenue, distribution and carriage payments and other long-term liabilities,” respectively. Sales Taxes We account for sales taxes imposed on our goods and services on a net basis in our Consolidated Statements of Operations and Comprehensive Income (Loss). Since we primarily act as an agent for the governmental authorities, the amount charged to the customer is collected and remitted directly to the appropriate jurisdictional entity. Income Taxes We establish a provision for income taxes currently payable or receivable and for income tax amounts deferred to future periods. Deferred tax assets and liabilities are recorded for the estimated future tax effects of differences that exist between the book and tax basis of assets and liabilities. Deferred tax assets are offset by valuation allowances when we believe it is more likely than not that such net deferred tax assets will not be realized. Accounting for Uncertainty in Income Taxes From time to time, we engage in transactions where the tax consequences may be subject to uncertainty. We record a liability when, in management’s judgment, a tax filing position does not meet the more likely than not threshold. For tax positions that meet the more likely than not threshold, we may record a liability depending on management’s assessment of how the tax position will ultimately be settled. We adjust our estimates periodically for ongoing examinations by and settlements with various taxing authorities, as well as changes in tax laws, regulations and precedent. We classify interest and penalties, if any, associated with our uncertain tax positions as a component of “Interest expense, net of amounts capitalized” and “Other, net,” respectively, on our Consolidated Statements of Operations and Comprehensive Income (Loss). Fair Value Measurements We determine fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Market or observable inputs are the preferred source of values, followed by unobservable inputs or assumptions based on hypothetical transactions in the absence of market inputs. We apply the following hierarchy in determining fair value: · Level 1, defined as observable inputs being quoted prices in active markets for identical assets; · Level 2, defined as observable inputs other than quoted prices included in Level 1, including quoted prices for similar assets and liabilities in active markets; and quoted prices for identical or similar instruments in markets that are not active; and · Level 3, defined as unobservable inputs for which little or no market data exists, consistent with reasonably available assumptions made by other participants therefore requiring assumptions based on the best information available. As of December 31, 2015 and 2014, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) is equal to or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are estimated based on an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our long-term debt. Deferred Debt Issuance Costs Costs of issuing debt are generally deferred and amortized to interest expense using the effective interest rate method over the terms of the respective notes. See Note 7 for further information. Revenue Recognition We recognize revenue when an arrangement exists, prices are determinable, collectability is reasonably assured and the goods or services have been delivered. Revenue from our Pay-TV services are recognized when programming is broadcast to subscribers. Payments received from our Pay-TV subscribers in advance of the broadcast or service period are recorded as “Deferred revenue and other” in our Consolidated Balance Sheets until earned. For certain of our promotions, subscribers are charged an upfront fee. A portion of these fees may be deferred and recognized over the estimated subscriber life for new subscribers or the estimated remaining life for existing subscribers ranging from four to five years. Revenue from advertising sales is recognized when the related services are performed. Subscriber fees for DISH branded pay-TV equipment rental fees and other hardware related fees, including fees for DVRs, fees for equipment and additional outlet fees, advertising services and fees earned from our in-home service operations are recognized as revenue as earned. Generally, revenue from equipment sales and equipment upgrades is recognized upon shipment to customers. Certain of our existing and new subscriber promotions include programming discounts. Programming revenues are recorded as earned at the discounted monthly rate charged to the subscriber. We offer our customers the opportunity to download movies for a specific viewing period or permanently purchase a movie from our website. We recognize revenue when the movie is successfully downloaded by the customer, which, based on our current technology, occurs at the time the customer plays the movie for the first time. Subscriber-Related Expenses The cost of television programming distribution rights is generally incurred on a per subscriber basis and various upfront carriage payments are recognized when the related programming is distributed to subscribers. Long-term flat rate programming contracts are charged to expense using the straight-line method over the term of the agreement. The cost of television programming rights to distribute live sporting events for a season or tournament is charged to expense using the straight-line method over the course of the season or tournament. “Subscriber-related expenses” in the Consolidated Statements of Operations and Comprehensive Income (Loss) principally include programming expenses, costs for Pay-TV services incurred in connection with our in-home service and call center operations, billing costs, refurbishment and repair costs related to DBS receiver systems, subscriber retention and other variable subscriber expenses. These costs are recognized as the services are performed or as incurred. Subscriber Acquisition Costs Subscriber acquisition costs in our Consolidated Statements of Operations and Comprehensive Income (Loss) consist of costs incurred to acquire new Pay-TV subscribers through independent third parties 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 retailers and other distributors of our equipment and DBS receiver systems sold directly by us to DISH branded pay-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 branded pay-TV service as well as our direct sales efforts and commissions for our Sling branded pay-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 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 retailer’s purchase price and are, therefore, netted against the proceeds received from the independent retailer. We report the net cost from our various sales promotions through our independent retailer network as a component of “Other subscriber acquisition costs.” Equipment Lease Programs DISH branded pay-TV subscribers have the choice of leasing or purchasing the satellite receiver and other equipment necessary to receive our DISH branded pay-TV service. Most of our new DISH branded pay-TV subscribers choose to lease equipment and thus we retain title to such equipment. Equipment leased to new and existing DISH branded pay-TV subscribers is capitalized and depreciated over their estimated useful lives. New Accounting Pronouncements Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. This converged standard on revenue recognition was issued jointly with the International Accounting Standards Board (“IASB”) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (“IFRS”). ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance when it becomes effective. ASU 2014-09 allows for either a full retrospective or modified retrospective adoption. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected an adoption method nor have we determined the effect of the standard on our ongoing financial reporting. The new standard could impact revenue and cost recognition for a significant number of our contracts, as well as our business processes and information technology systems. As a result, our evaluation of the effect of the new standard will likely extend over several future periods. On July 9, 2015, the FASB approved a one year deferral on the effective date for implementation of this standard, which changed the effective date for us to January 1, 2018. Recognition and Measurement of Financial Assets and Financial Liabilities . In January 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-01 will have on our consolidated financial statements. Leases. On F ebruary 25, 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases , which is intended to improve financial reporting about leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our consolidated financial statements. |
Supplemental Data - Statement82
Supplemental Data - Statements of Cash Flows | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Supplemental Data - Statements of Cash Flows | ||
Supplemental Data - Statements of Cash Flows | 3. Supplemental Data - Statements of Cash Flows The following table presents our supplemental cash flow and other non-cash data. For the Six Months Ended June 30, 2016 2015 (In thousands) Cash paid for interest $ $ Cash received for interest Cash paid for income taxes Cash paid for income taxes to DISH Network Satellites and other assets financed under capital lease obligations — Our parent, DISH Network, provides a centralized system for the management of our cash and marketable investment securities as it does for all of its subsidiaries, among other reasons, to maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our 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 our supplemental cash flow and other non-cash data. For the Years Ended December 31, 2015 2014 2013 (In thousands) Cash paid for interest $ $ $ Cash received for interest Cash paid for income taxes Cash paid for income taxes to DISH Network Satellites and other assets financed under capital lease obligations — Satellite and Tracking Stock Transaction with EchoStar: Transfer of property and equipment, net — — Investment in EchoStar and HSSC preferred tracking stock - cost method — — Transfer of liabilities and other — — Capital distribution to EchoStar, net of deferred taxes of $31,274 — — Sling TV Exchange Transaction with EchoStar: Transfer of property and equipment, net — — Transfer of investments and intangibles, net — — Capital distribution to EchoStar, net of deferred taxes of $3,542 — — Deemed distribution to EchoStar - initial fair value of redeemable noncontrolling interest, net of deferred taxes of $8,489 — — Our parent, DISH Network, provides a centralized system for the management of our cash and marketable investment securities as it does for all of its subsidiaries, among other reasons, to maximize yield of the portfolio. As a result, the cash and marketable investment securities included on our Consolidated Balance Sheets is a component or portion of the overall cash and marketable investment securities portfolio included on DISH Network’s Consolidated Balance Sheets and managed by DISH Network. We are reflecting the purchases and sales of marketable investment securities on a net basis for each year presented on our Consolidated Statements of Cash Flows as we believe the net presentation is more meaningful to our cash flows from investing activities. |
Marketable Investment Securit83
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
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, 2016 December 31, 2015 (In thousands) Marketable investment securities: Current marketable investment securities $ $ Restricted marketable investment securities (1) Total marketable investment securities Restricted cash and cash equivalents (1) Other investment securities: Investment in EchoStar preferred tracking stock - cost method Investment in HSSC preferred tracking stock - cost method Other investment securities - cost method Total other investment securities Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ $ (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 consists of various debt and equity instruments, all of which are classified as available-for-sale. Current Marketable Investment Securities Our current marketable investment securities portfolio includes investments in equity securities and various debt instruments including, among others, commercial paper, corporate securities and U.S. 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, 2016 and December 31, 2015, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit. Other Investment Securities We have strategic investments in certain debt and equity securities that are included in noncurrent “Other investment securities ” on our Condensed Consolidated Balance Sheets and accounted for using the cost, equity and/or available-for-sale methods of accounting. 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. Investment in Tracking Stock On February 20, 2014, we entered into agreements with EchoStar to implement a transaction pursuant to which, among other things: (i) on March 1, 2014, we transferred to EchoStar and Hughes Satellite Systems Corporation (“HSSC”), a subsidiary of EchoStar, five satellites (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV (collectively the “Transferred Satellites”), including related in-orbit incentive obligations and cash interest payments of approximately $59 million), and approximately $11 million in cash in exchange for an aggregate of 6,290,499 shares of a series of preferred tracking stock issued by EchoStar and an aggregate of 81.128 shares of a series of preferred tracking stock issued by HSSC (collectively, the “Tracking Stock”); and (ii) beginning on March 1, 2014, we lease back certain satellite capacity on the Transferred Satellites (collectively, the “Satellite and Tracking Stock Transaction”). As of November 30, 2015, we no longer lease satellite capacity on the EchoStar I satellite. The Tracking Stock generally tracks the residential retail satellite broadband business of Hughes Network Systems, LLC (“HNS”), a wholly-owned subsidiary of HSSC, including without limitation the operations, assets and liabilities attributed to the Hughes residential retail satellite broadband business (collectively, the “Hughes Retail Group”). The shares of the Tracking Stock issued to us represent an aggregate 80% economic interest in the Hughes Retail Group. Since the Satellite and Tracking Stock Transaction is among entities under common control, we recorded the Tracking Stock at EchoStar’s and HSSC’s historical cost basis for these instruments of $229 million and $87 million, respectively. The difference between the historical cost basis of the Tracking Stock received and the net carrying value of the Transferred Satellites of $356 million (including debt obligations, net of deferred taxes), plus the $11 million in cash, resulted in a $51 million capital transaction recorded in “Additional paid-in capital” on our Condensed Consolidated Balance Sheets. Although our investment in the Tracking Stock represents an aggregate 80% economic interest in the Hughes Retail Group, we have no operational control or significant influence over the Hughes Retail Group business, and currently there is no public market for the Tracking Stock. As such, the Tracking Stock is accounted for under the cost method of accounting. On February 20, 2014, DISH Operating L.L.C. (“DOLLC”) and DISH Network L.L.C. (“DNLLC”), each indirect wholly-owned subsidiaries of us, entered into an Investor Rights Agreement with EchoStar and HSSC with respect to the Tracking Stock (the “Investor Rights Agreement”). The Investor Rights Agreement provides, among other things, certain information and consultation rights for us; certain transfer restrictions on the Tracking Stock and certain rights and obligations to offer and sell under certain circumstances (including a prohibition on transfers of the Tracking Stock for one year, with continuing transfer restrictions (including a right of first offer in favor of EchoStar) thereafter, an obligation to sell the Tracking Stock to EchoStar in connection with a change of control of DISH Network and a right to require EchoStar to repurchase the Tracking Stock in connection with a change of control of EchoStar, in each case subject to certain terms and conditions); certain registration rights; certain obligations to provide conversion and exchange rights of the Tracking Stock under certain circumstances; and certain protective covenants afforded to holders of the Tracking Stock. The Investor Rights Agreement generally will terminate with respect to our interest should we no longer hold any shares of the HSSC-issued Tracking Stock and any registrable securities under the Investor Rights Agreement. Unrealized Gains (Losses) on Marketable Investment Securities As of June 30, 2016 and December 31, 2015, we had accumulated net unrealized gains of less than $ 1 million and $20 million, respectively. These amounts, net of related tax effect, were less than $1 million and $12 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 June 30, 2016 As of December 31, 2015 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 $ $ $ — $ $ $ $ $ Corporate securities — Other — — — — — Equity securities — — — — — Total $ $ $ — $ $ $ $ $ As of June 30, 2016, restricted and non-restricted marketable investment securities included debt securitie s of $69 million with contractual maturities within one year and $18 million with contractual maturities extending longer than one year through and including five years. 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 June 30, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ $ $ $ — $ $ $ $ — Debt securities (including restricted): U. S. Treasury and agency securities $ $ $ — $ $ $ $ — Corporate securities — — — — Other — — — — — — Equity securities — — — — — — Total $ $ $ $ — $ $ $ $ — During the six months ended June 30, 2016, we had no transfers in or out of Level 1 and Level 2 fair value measurements. | 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, 2015 2014 (In thousands) Marketable investment securities: Current marketable investment securities $ $ Restricted marketable investment securities (1) Total marketable investment securities Restricted cash and cash equivalents (1) Other investment securities: Investment in EchoStar preferred tracking stock - cost method Investment in HSSC preferred tracking stock - cost method Other investment securities - cost method Total other investment securities (2) Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ $ (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. (2) Other investment securities are included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. Marketable Investment Securities Our marketable investment securities portfolio consists of various debt and equity instruments, all of which are classified as available-for-sale. See Note 2 for further information. Current Marketable Investment Securities Our current marketable investment securities portfolio includes investments in equity securities and various debt instruments including, among others, commercial paper, corporate securities and U.S. 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, 2015 and 2014, our restricted marketable investment securities, together with our restricted cash and cash equivalents, included amounts required as collateral for our letters of credit. Other Investment Securities We have strategic investments in certain debt and equity securities that are included in “Other noncurrent assets, net” on our Consolidated Balance Sheets and accounted for using the cost, equity and/or available-for-sale methods of accounting. 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. Investment in Tracking Stock On February 20, 2014, we entered into agreements with EchoStar to implement a transaction pursuant to which, among other things: (i) on March 1, 2014, we transferred to EchoStar and Hughes Satellite Systems Corporation (“HSSC”), a subsidiary of EchoStar, five satellites (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV (collectively the “Transferred Satellites”), including related in-orbit incentive obligations and cash interest payments of approximately $59 million), and approximately $11 million in cash in exchange for an aggregate of 6,290,499 shares of a series of preferred tracking stock issued by EchoStar and an aggregate of 81.128 shares of a series of preferred tracking stock issued by HSSC (collectively, the “Tracking Stock”); and (ii) beginning on March 1, 2014, we lease back certain satellite capacity on the Transferred Satellites (collectively, the “Satellite and Tracking Stock Transaction”). As of November 30, 2015, we no longer lease satellite capacity on the EchoStar I satellite. The Tracking Stock generally tracks the residential retail satellite broadband business of Hughes Network Systems, LLC (“HNS”), a wholly-owned subsidiary of HSSC, including without limitation the operations, assets and liabilities attributed to the Hughes residential retail satellite broadband business (collectively, the “Hughes Retail Group”). The shares of the Tracking Stock issued to us represent an aggregate 80% economic interest in the Hughes Retail Group. Since the Satellite and Tracking Stock Transaction is among entities under common control, we recorded the Tracking Stock at EchoStar and HSSC’s historical cost basis for these instruments of $229 million and $87 million, respectively. The difference between the historical cost basis of the Tracking Stock received and the net carrying value of the Transferred Satellites of $356 million (including debt obligations, net of deferred taxes), plus the $11 million in cash, resulted in a $51 million capital transaction recorded in “Additional paid-in capital” on our Consolidated Balance Sheets. Although our investment in the Tracking Stock represents an aggregate 80% economic interest in the Hughes Retail Group, we have no operational control or significant influence over the Hughes Retail Group business, and currently there is no public market for the Tracking Stock. As such, the Tracking Stock is accounted for under the cost method of accounting. On February 20, 2014, DISH Operating L.L.C. (“DOLLC”) and DISH Network L.L.C. (“DNLLC”), each indirect wholly-owned subsidiaries of us, entered into an Investor Rights Agreement with EchoStar and HSSC with respect to the Tracking Stock (the “Investor Rights Agreement”). The Investor Rights Agreement provides, among other things, certain information and consultation rights for us; certain transfer restrictions on the Tracking Stock and certain rights and obligations to offer and sell under certain circumstances (including a prohibition on transfers of the Tracking Stock for one year, with continuing transfer restrictions (including a right of first offer in favor of EchoStar) thereafter, an obligation to sell the Tracking Stock to EchoStar in connection with a change of control of DISH Network and a right to require EchoStar to repurchase the Tracking Stock in connection with a change of control of EchoStar, in each case subject to certain terms and conditions); certain registration rights; certain obligations to provide conversion and exchange rights of the Tracking Stock under certain circumstances; and certain protective covenants afforded to holders of the Tracking Stock. The Investor Rights Agreement generally will terminate with respect to our interest should we no longer hold any shares of the HSSC-issued Tracking Stock and any registrable securities under the Investor Rights Agreement. Unrealized Gains (Losses) on Marketable Investment Securities As of December 31, 2015 and 2014, we had accumulated net unrealized gains of $20 million and $43 million, respectively. These amounts, net of related tax effect, were $12 million and $28 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, 2015 2014 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 $ $ $ $ $ $ $ $ Commercial paper — — — — — — — Corporate securities Other — — — — Equity securities — — Total $ $ $ $ $ $ $ $ As of December 31, 2015, restricted and non-restricted marketable investment securities included debt securities of $127 million with contractual maturities within one year and $63 million with contractual maturities extending longer than one year through and including five years. Actual maturities may differ from contractual maturities as a result of our ability to sell these securities prior to maturity. Marketable Investment Securities in a Loss Position The following table reflects the length of time that the individual securities, accounted for as available-for-sale, have been in an unrealized loss position, aggregated by investment category. As of December 31, 2015, the unrealized losses on our investments in debt securities primarily represented investments in U.S. Treasury and agency securities and corporate securities. We have the ability to hold and do not intend to sell our investments in these debt securities before they recover or mature, and it is more likely than not that we will hold these investments until that time. In addition, we are not aware of any specific factors indicating that the underlying issuers of these debt securities would not be able to pay interest as it becomes due or repay the principal at maturity. Therefore, we believe that these changes in the estimated fair values of these marketable investment securities are related to temporary market fluctuations. As of December 31, 2015 2014 Fair Unrealized Fair Unrealized Value Loss Value Loss (In thousands) Debt Securities: Less than 12 months $ $ $ $ 12 months or more Total $ $ $ $ Fair Value Measurements Our investments measured at fair value on a recurring basis were as follows: As of December 31, 2015 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ $ $ $ — $ $ $ $ — Debt securities (including restricted): U. S. Treasury and agency securities $ $ $ — $ $ $ $ — Commercial paper — — — — — — Corporate securities — — — — Other — — — — Equity securities — — — — Total $ $ $ $ — $ $ $ $ — During the years ended December 31, 2015 and 2014, we had no transfers in or out of Level 1 and Level 2 fair value measurements. |
Inventory84
Inventory | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Inventory | ||
Inventory | 5. Inventory Inventory consisted of the following: As of June 30, 2016 December 31, 2015 (In thousands) Finished goods $ $ Work-in-process and service repairs Raw materials Total inventory $ $ | 5. Inventory Inventory consisted of the following: As of December 31, 2015 2014 (In thousands) Finished goods $ $ Raw materials Work-in-process Total inventory $ $ |
Property and Equipment85
Property and Equipment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Property and Equipment | ||
Property and Equipment | 6. Property and Equipment Depreciation and amortization expense consisted of the following: For the Three Months For the Six Months Ended Ended June 30, Ended June 30, 2016 2015 2016 2015 (In thousands) Equipment leased to customers $ $ $ $ Satellites Buildings, furniture, fixtures, equipment and other Total depreciation and amortization $ $ $ $ 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. We currently utilize 12 satellites in geostationary orbit approximately 22,300 miles above the equator, one of which we own and depreciate over its estimated useful life. We currently utilize certain capacity on nine satellites that we lease from EchoStar, which are accounted for as operating leases. We also lease two satellites from third parties, which are accounted for as capital leases and are depreciated over the shorter of the economic life or the term of the satellite agreement. As of June 30, 2016, our pay-TV satellite fleet consisted of the following: Estimated Useful Life (Years)/ Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar XV July 2010 61.5 15 EchoStar XVIII (1) June 2016 61.5 15 Leased from EchoStar (2): EchoStar VII (3) February 2002 119 June 2017 EchoStar IX August 2003 121 Month to month EchoStar X (3) February 2006 110 February 2021 EchoStar XI (3) July 2008 110 September 2021 EchoStar XII (3) July 2003 61.5 September 2017 EchoStar XIV (3) March 2010 119 February 2023 EchoStar XVI (4) November 2012 61.5 January 2018 Nimiq 5 September 2009 72.7 September 2019 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2019 (1) The EchoStar XVIII satellite was launched on June 18, 2016 and is expected to become operational at the 61.5 degree orbital location during the third quarter 2016. The EchoStar XVIII satellite is currently owned by an indirect subsidiary of DISH Network. (2) See Note 10 for further information on our Related Party Transactions with EchoStar. (3) We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite. (4) We have the option to renew this lease for an additional five -year period. If we exercise our five-year renewal option, we have the option to renew this lease for an additional five years. | 6. Property and Equipment and Intangible Assets Property and Equipment Property and equipment consisted of the following: Depreciable Life As of December 31, (In Years) 2015 2014 (In thousands) Equipment leased to customers 2 -5 $ 3,439,254 $ EchoStar XV 15 Satellites acquired under capital lease agreements 10 -15 Furniture, fixtures, equipment and other 1 -10 Buildings and improvements 1 -40 Land - Construction in progress - Total property and equipment Accumulated depreciation Property and equipment, net $ $ Construction in progress consisted of the following: As of December 31, 2015 2014 (In thousands) Software projects $ $ Other Total construction in progress $ $ Depreciation and amortization expense consisted of the following: For the Years Ended December 31, 2015 2014 2013 (In thousands) Equipment leased to customers $ $ $ Satellites (1) Buildings, furniture, fixtures, equipment and other Total depreciation and amortization $ $ $ (1) Depreciation and amortization expense decreased $40 million in 2014 as a result of the Satellite and Tracking Stock Transaction. See Note 4 and Note 15 for further information. 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. We did not record any capitalized interest during the years ended December 31, 2015, 2014 or 2013. Satellites Pay-TV Satellites . We currently utilize 12 satellites in geostationary orbit approximately 22,300 miles above the equator, one of which we own and depreciate over its estimated useful life. We currently utilize certain capacity on nine satellites that we lease from EchoStar, which are accounted for as operating leases. We also lease two satellites from third parties, which are accounted for as capital leases and are depreciated over the shorter of the economic life or the term of the satellite agreement. As of December 31, 2015, our pay-TV satellite fleet consisted of the following: Estimated Useful Life (Years)/ Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar XV July 2010 61.5 15 Under Construction: EchoStar XVIII Second quarter 2016 110 15 Leased from EchoStar (1): EchoStar VII (2)(3) February 2002 119 June 2017 EchoStar IX August 2003 121 Month to month EchoStar X (2)(3) February 2006 110 February 2021 EchoStar XI (2)(3) July 2008 110 September 2021 EchoStar XII (3) July 2003 61.5 September 2017 EchoStar XIV (2)(3) March 2010 119 February 2023 EchoStar XVI (4) November 2012 61.5 January 2017 Nimiq 5 September 2009 72.7 September 2019 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2019 (1) See Note 15 for further information on our Related Party Transactions with EchoStar. (2) On February 20, 2014, we entered into the Satellite and Tracking Stock Transaction with EchoStar pursuant to which, among other things, we transferred these satellites to EchoStar and lease back all available capacity on these satellites. See Note 4 and Note 15 for further information. (3) We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite. (4) We have the option to renew this lease for an additional six -year period. If we exercise our six -year renewal option, we have the option to renew this lease for an additional five years. Satellites Under Construction EchoStar XVIII . On September 7, 2012, DISH Network entered into a contract with Space Systems/Loral, Inc. (“SS/L”) for the construction of EchoStar XVIII, a DBS satellite with spot beam technology designed for, among other things, HD programming. During October 2013, DISH Network entered into an agreement with ArianeSpace S.A. for launch services for this satellite, which is expected to launch during the second quarter 2016. Satellite Anomalies Operation of our DISH branded pay-TV service requires that we have adequate satellite transmission capacity for the programming that we offer. Moreover, current competitive conditions require that we continue to expand our offering of new programming. 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 owned or leased satellites that we use, other than certain satellites leased from third parties, and therefore, we will bear the risk associated with any uninsured in-orbit satellite failures. In light of current favorable market conditions, during January 2016, DISH Network procured commercial launch and in-orbit insurance (for a period of one year following launch) for the EchoStar XVIII satellite, which is expected to launch during the second quarter 2016. Intangible Assets FCC Authorizations As of December 31, 2015 and 2014, our FCC Authorizations consisted of the following: As of December 31, 2015 2014 (In thousands) DBS Licenses $ $ MVDDS Licenses Total $ $ |
Long-Term Debt86
Long-Term Debt | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Long-Term Debt | ||
Long-Term Debt | 7. Long-Term Debt 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, 2016 and December 31, 2015: As of June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 7 1/8% Senior Notes due 2016 (1) $ — $ — $ $ 4 5/8% Senior Notes due 2017 4 1/4% Senior Notes due 2018 7 7/8% Senior Notes due 2019 5 1/8% Senior Notes due 2020 6 3/4% Senior Notes due 2021 5 7/8% Senior Notes due 2022 5 % Senior Notes due 2023 5 7/8% Senior Notes due 2024 7 3/4% Senior Notes due 2026 — — Other notes payable Subtotal $ $ Unamortized deferred financing costs and debt discounts, net Capital lease obligations (2) Total long-term debt and capital lease obligations (including current portion) $ $ (1) On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016. (2) Disclosure regarding fair value of capital leases is not required. We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2). 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, commencing on January 1, 2017. The 7 3/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to July 1, 2019, we may also redeem up to 35% of the 7 3/4% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. Our 7 3/4% 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 3/4% 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 3/4% 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. | 7. Long-Term Debt and Capital Lease Obligations Fair Value of our Long-Term Debt The following table summarizes the carrying and fair values of our debt facilities as of December 31, 2015 and 2014: As of December 31, 2015 2014 Carrying Value Fair Value Carrying Value Fair Value (In thousands) 7 3/4% Senior Notes due 2015 (1) $ — $ — $ $ 7 1/8% Senior Notes due 2016 (2) 4 5/8% Senior Notes due 2017 4 1/4% Senior Notes due 2018 7 7/8% Senior Notes due 2019 5 1/8% Senior Notes due 2020 6 3/4% Senior Notes due 2021 5 7/8% Senior Notes due 2022 5 % Senior Notes due 2023 5 7/8% Senior Notes due 2024 Other notes payable Subtotal $ $ Unamortized deferred financing costs and debt discounts, net Capital lease obligations (3) Total long-term debt and capital lease obligations (including current portion) $ $ (1) On June 1, 2015, we redeemed the principal balance of our 7 3/4% Senior Notes due 2015. (2) On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016. (3) Disclosure regarding fair value of capital leases is not required. We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2). Our Senior Notes are: · general unsecured senior obligations of DISH DBS; · ranked equally in right of payment with all of DISH DBS’ and the guarantors’ existing and future unsecured senior debt; and · ranked effectively junior to our and the guarantors’ current and future secured senior indebtedness up to the value of the collateral securing such indebtedness. The indentures related to our Senior Notes contain restrictive covenants that, among other things, impose limitations on the ability of DISH DBS and its restricted subsidiaries to: · incur additional debt; · pay dividends or make distributions on DISH DBS’ capital stock or repurchase DISH DBS’ capital stock; · make certain investments; · create liens or enter into sale and leaseback transactions; · enter into transactions with affiliates; · merge or consolidate with another company; and · transfer or sell assets. In the event of a change of control, as defined in the related indentures, we would be required to make an offer to repurchase all or any part of a holder’s Senior Notes at a purchase price equal to 101% of the aggregate principal amount thereof, together with accrued and unpaid interest thereon, to the date of repurchase. 7 1/8% Senior Notes due 2016 On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016, using a substantial portion of our and DISH Network’s available cash and investment securities on hand. 4 5/8% Senior Notes due 2017 On May 16, 2012, we issued $900 million aggregate principal amount of our five -year 4 5/8% Senior Notes due July 15, 2017. Interest accrues at an annual rate of 4 5/8% and is payable semi-annually in cash, in arrears on January 15 and July 15 of each year. The 4 5/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100.0% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 4 1/4% Senior Notes due 2018 On April 5, 2013, we issued $1.2 billion aggregate principal amount of our five -year 4 1/4% Senior Notes due April 1, 2018. Interest accrues at an annual rate of 4 1/4% and is payable semi-annually in cash in arrears on April 1 and October 1 of each year. The 4 1/4% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to April 1, 2016, we may also redeem up to 35.0% of the 4 1/4% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. 7 7/8% Senior Notes due 2019 On August 17, 2009 and October 5, 2009, we issued $1.0 billion and $400 million, respectively, aggregate principal amount of our ten -year 7 7/8% Senior Notes due September 1, 2019. Interest accrues at an annual rate of 7 7/8% and is payable semi-annually in cash, in arrears on March 1 and September 1 of each year. The 7 7/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 5 1/8% Senior Notes due 2020 On April 5, 2013, we issued $1.1 billion aggregate principal amount of our seven -year 5 1/8% Senior Notes due May 1, 2020. Interest accrues at an annual rate of 5 1/8% and is payable semi-annually in cash in arrears on May 1 and November 1 of each year. The 5 1/8% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to May 1, 2016, we may also redeem up to 35.0% of the 5 1/8% Senior Notes at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. 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 100.0% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. 5% Senior Notes due 2023 On December 27, 2012, we issued $1.5 billion aggregate principal amount of our 5% Senior Notes due March 15, 2023. Interest accrues at an annual rate of 5% and is payable semi-annually in cash, in arrears on March 15 and September 15 of each year. The 5% Senior Notes are redeemable, in whole or in part, at any time at a redemption price equal to 100.0% 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 100.0% of the principal amount plus a “make-whole” premium, as defined in the related indenture, together with accrued and unpaid interest. Prior to November 15, 2017, we may also redeem up to 35.0% of the 5 7/8% Senior Notes due 2024 at a specified premium with the net cash proceeds from certain equity offerings or capital contributions. Interest on Long-Term Debt Annual Semi-Annual Debt Service Payment Dates Requirements (In thousands) 4 5/8% Senior Notes due 2017 January 15 and July 15 $ 4 1/4% Senior Notes due 2018 April 1 and October 1 $ 7 7/8% Senior Notes due 2019 March 1 and September 1 $ 5 1/8% Senior Notes due 2020 May 1 and November 1 $ 6 3/4% Senior Notes due 2021 June 1 and December 1 $ 5 7/8% Senior Notes due 2022 January 15 and July 15 $ 5% Senior Notes due 2023 March 15 and September 15 $ 5 7/8% Senior Notes due 2024 May 15 and November 15 $ Our ability to meet our debt service requirements will depend on, among other factors, the successful execution of our business strategy, which is subject to uncertainties and contingencies beyond our control. Other Long-Term Debt and Capital Lease Obligations Other long-term debt and capital lease obligations consisted of the following: As of December 31, 2015 2014 (In thousands) Satellites and other capital lease obligations $ $ Notes payable related to satellite vendor financing and other debt payable in installments through 2025 with interest rates ranging from approximately 6.0% to 12.5% Total Less: current portion Other long-term debt and capital lease obligations, net of current portion $ $ Capital Lease Obligations Anik F3. Anik F3, an FSS satellite, was launched and commenced commercial operation during April 2007. This satellite is accounted for as a capital lease and depreciated over the term of the satellite service agreement. We have leased 100% of the Ku-band capacity on Anik F3 for a period of 15 years. Ciel II . Ciel II, a Canadian DBS satellite, was launched in December 2008 and commenced commercial operation during February 2009. This satellite is accounted for as a capital lease and depreciated over the term of the satellite service agreement. We have leased 100% of the capacity on Ciel II for an initial 10 year term. As of December 31, 2015 and 2014, we had $500 million capitalized for the estimated fair value of satellites acquired under capital leases included in “Property and equipment, net,” with related accumulated depreciation of $322 million and $279 million, respectively. In our Consolidated Statements of Operations and Comprehensive Income (Loss), we recognized $43 million, $43 million and $43 million in depreciation expense on satellites acquired under capital lease agreements during the years ended December 31, 2015, 2014 and 2013, respectively. Future minimum lease payments under the capital lease obligations, together with the present value of the net minimum lease payments as of December 31, 2015 are as follows (in thousands): For the Years Ended December 31, 2016 $ 2017 2018 2019 2020 Thereafter Total minimum lease payments Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments Net minimum lease payments Less: Amount representing interest Present value of net minimum lease payments Less: Current portion Long-term portion of capital lease obligations $ The summary of future maturities of our outstanding long-term debt as of December 31, 2015 is included in the commitments table in Note 11. |
Commitments and Contingencies87
Commitments and Contingencies | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies | ||
Commitments and Contingencies | 8. Commitments and Contingencies Commitments DISH Network Spectrum DISH Network has invested over $5.0 billion since 2008 to acquire certain wireless spectrum licenses and related assets. 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. 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. For example, on February 10, 2016, DISH Network filed an application with the FCC to potentially participate as a bidder in the forward auction phase of the broadcast television spectrum incentive auction (“Auction 1000”). Auction 1000 has two phases. In the first phase or reverse auction phase, participating television broadcasters “sell” their rights to use certain broadcast television spectrum in the 600 MHz frequency range to the FCC. In the second phase or forward auction phase, the FCC will “resell” that spectrum to various auction participants, including wireless service providers and other potential bidders. The first phase of Auction 1000 began on March 29, 2016 and concluded on June 29, 2016. Pursuant to the FCC’s procedures for Auction 1000 and based on the results of the reverse auction phase, in order for Auction 1000 to conclude, the proceeds generated in the first stage of the forward auction phase must exceed approximately $88.4 billion. If the proceeds from the first stage of the forward auction phase do not exceed this amount, Auction 1000 would move to one or more additional stages, with less available spectrum and lower spectrum clearing targets set by the FCC. The first stage of the forward auction phase of Auction 1000 will include 100 MHz of spectrum in over 90% of the available licensed geographic areas, based on the broadcasters’ indicated availability of spectrum in the reverse auction phase. The available spectrum in each of these areas is comprised of certain paired 5x5 spectrum blocks (5 MHz uplink spectrum and 5 MHz downlink spectrum). As a result, a nationwide footprint may be obtained by aggregating a single 5x5 spectrum block in each available licensed geographic area. A qualified bidder in the forward auction phase could make an upfront deposit of up to approximately $5.4 billion. On July 15, 2016, the FCC announced that a subsidiary of DISH Network and 61 other applicants were qualified to participate in the forward auction phase of Auction 1000. The forward auction phase is scheduled to commence on August 16, 2016. The FCC determined that bidding in Auction 1000 will be “anonymous,” which means that prior to and during the course of the auction, the FCC will not make public any information about a specific applicant’s upfront deposits or its bids. In addition, FCC rules restrict information that bidders may disclose about their participation in Auction 1000. In connection with the development of DISH Network’s wireless business, including without limitation the efforts described above, we have made cash distributions to partially finance these efforts to date and may make additional cash distributions to finance in whole or in part DISH Network’s future efforts. See Note 10 for further information regarding our dividends to DOC. There can be no assurance that DISH Network will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably deploy the assets represented by these wireless spectrum licenses. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses Through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network has made over $10.0 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. DISH Network may need to make significant additional loans to the Northstar Entities and to the SNR Entities, or they may need to partner with others, so that the Northstar Entities and the SNR Entities may commercialize, build-out and integrate the Northstar Licenses and the SNR Licenses, and comply with regulations applicable to the Northstar Licenses and the SNR Licenses. Depending upon the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such loans or partnerships could vary significantly. 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 10 “Commitments” in the Notes to DISH Network’s Quarterly Report on Form 10-Q for the quarter ended June 30 , 2016 for further information. Guarantees During the third quarter 2009, EchoStar entered into a satellite transponder service agreement for Nimiq 5 through 2024. We sublease this capacity from EchoStar and DISH Network guarantees a certain portion of EchoStar’s obligation under its satellite transponder service agreement through 2019. As of June 30, 2016, the remaining obligation of the DISH Network guarantee was $216 million. As of June 30, 2016, DISH Network has not recorded a liability on the balance sheet for this guarantee. 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. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties (as with many patent-related cases). For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period. California Institute of Technology On October 1, 2013, the California Institute of Technology (“Caltech”) filed complaints against DISH Network and its wholly-owned subsidiaries DISH Network L.L.C. and dishNET Satellite Broadband L.L.C., as well as Hughes Communications, Inc. and Hughes Network Systems, LLC, which are subsidiaries of EchoStar, in the United States District Court for the Central District of California. The complaint alleged infringement of United States Patent Nos. 7,116,710; 7,421,032; 7,916,781 and 8,284,833, each of which is entitled “Serial Concatenation of Interleaved Convolutional Codes forming Turbo-Like Codes.” Caltech alleged that encoding data as specified by the DVB-S2 standard infringed each of the asserted patents. In the operative Amended Complaint, served on March 6, 2014, Caltech claimed that our Hopper ® set-top box, as well as the Hughes defendants’ satellite broadband products and services, infringed the asserted patents by implementing the DVB-S2 standard. On May 5, 2015, the Court granted summary judgment in our favor as to the Hopper set-top box alleged in the complaint. On February 17, 2015, Caltech filed a new complaint in the United States District Court for the Central District of California, asserting the same patents against the same defendants. Caltech alleged that certain broadband equipment, including without limitation the HT1000 and HT1100 modems, gateway hardware, software and/or firmware that the Hughes defendants provide to, among others, us for our use in connection with the dishNET branded broadband service, infringed these patents. Pursuant to a settlement agreement between the parties, on May 31, 2016, Caltech dismissed with prejudice all of its claims in these actions. 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 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, entitled “Multimedia Content Navigation and Playback”; 7,526,784, entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318, entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970, entitled “Multimedia Content Navigation and Playback”; and 8,117,282, 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. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. CRFD Research, Inc. (a subsidiary of Marathon Patent Group, Inc.) On January 17, 2014, CRFD Research, Inc. (“CRFD”) filed a complaint against us, our wholly-owned subsidiary DISH Network L.L.C., DISH Network, EchoStar, and its wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 7,191,233 (the “233 patent”). The 233 patent is entitled “System for Automated, Mid-Session, User-Directed, Device-to-Device Session Transfer System,” and relates to transferring an ongoing software session from one device to another. CRFD alleges that our Hopper and Joey ® set-top boxes infringe the 233 patent. On the same day, CRFD filed similar complaints against AT&T Inc.; Comcast Corp.; DirecTV; Time Warner Cable Inc.; Cox Communications, Inc.; Akamai Technologies, Inc.; Cablevision Systems Corp. and Limelight Networks, Inc. CRFD is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On January 26, 2015, we and EchoStar filed a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 233 patent. The United States Patent and Trademark Office has agreed to institute a proceeding on our petition, as well as on two third-party petitions challenging the validity of certain claims of the 233 patent, and it heard oral argument on January 16, 2016. On June 1, 2016, the United States Patent and Trademark Office found that all claims asserted against us and the EchoStar parties were unpatentable. On July 5, 2016, CRFD filed a notice of appeal to the United States Court of Appeals for the Federal Circuit. The litigation in the District Court has been stayed since June 4, 2015 pending resolution of our petition to 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 patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. 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; United States Patent No. 9,053,494; United States Patent No. 7,840,437; and United States Patent No. 8,955,029. Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia appears to allege infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. Customedia is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Do Not Call Litigation On March 25, 2009, our wholly-owned subsidiary DISH Network L.L.C. was sued in a civil action by the United States Attorney General and several states in the United States District Court for the Central District of Illinois, alleging violations of the Telephone Consumer Protection Act and the Telemarketing Sales Rule (“TSR”), as well as analogous state statutes and state consumer protection laws. The plaintiffs allege that we, directly and through certain independent third-party retailers and their affiliates, committed certain telemarketing violations. On December 23, 2013, the plaintiffs filed a motion for summary judgment, which indicated for the first time that the state plaintiffs were seeking civil penalties and damages of approximately $270 million and that the federal plaintiff was seeking an unspecified amount of civil penalties (which could substantially exceed the civil penalties and damages being sought by the state plaintiffs). The plaintiffs were also seeking injunctive relief that if granted would, among other things, enjoin DISH Network L.L.C., whether acting directly or indirectly through authorized telemarketers or independent third-party retailers, from placing any outbound telemarketing calls to market or promote its goods or services for five years, and enjoin DISH Network L.L.C. from accepting activations or sales from certain existing independent third-party retailers and from certain new independent third-party retailers, except under certain circumstances. We also filed a motion for summary judgment, seeking dismissal of all claims. On December 12, 2014, the Court issued its opinion with respect to the parties’ summary judgment motions. The Court found that DISH Network L.L.C. is entitled to partial summary judgment with respect to one claim in the action. In addition, the Court found that the plaintiffs are entitled to partial summary judgment with respect to ten claims in the action, which includes, among other things, findings by the Court establishing DISH Network L.L.C.’s liability for a substantial amount of the alleged outbound telemarketing calls by DISH Network L.L.C. and certain of its independent third-party retailers that were the subject of the plaintiffs’ motion. The Court did not issue any injunctive relief and did not make any determination on civil penalties or damages, ruling instead that the scope of any injunctive relief and the amount of any civil penalties or damages are questions for trial. In pre-trial disclosures, the federal plaintiff indicated that it intended to seek up to $900 million in alleged civil penalties, and the state plaintiffs indicated that they intended to seek as much as $23.5 billion in alleged civil penalties and damages. The plaintiffs also modified their request for injunctive relief. Their requested injunction, if granted, would enjoin DISH Network L.L.C. from placing outbound telemarketing calls unless and until: (i) DISH Network L.L.C. hires a third-party consulting organization to perform a review of its call center operations; (ii) such third-party consulting organization submits a telemarketing compliance plan to the Court and the federal plaintiff; (iii) the Court holds a hearing on the adequacy of the plan; (iv) if the Court approves the plan, DISH Network L.L.C. implements the plan and verifies to the Court that it has implemented the plan; and (v) the Court issues an order permitting DISH Network L.L.C. to resume placing outbound telemarketing calls. The plaintiffs’ modified request for injunctive relief, if granted, would also enjoin DISH Network L.L.C. from accepting customer orders solicited by certain independent third-party retailers unless and until a similar third-party review and Court approval process was followed with respect to the telemarketing activities of its independent third-party retailer base to ensure compliance with the TSR. The first phase of the bench trial took place January 19, 2016 through February 11, 2016. In closing briefs, the federal plaintiff indicated that it still is seeking $900 million in alleged civil penalties; the California state plaintiff indicated that it is seeking $100 million in alleged civil penalties and damages for its state law claims (in addition to any amounts sought on its federal law claims); the Ohio state plaintiff indicated that it is seeking approximately $10 million in alleged civil penalties and damages for its state law claims (in addition to any amounts sought on its federal law claims); and the Illinois and North Carolina state plaintiffs did not state the specific alleged civil penalties and damages that they are seeking; but the state plaintiffs have taken the general position that any damages award less than $1.0 billion (presumably for both federal and state law claims) would not raise constitutional concerns. Under the Eighth Amendment of the U.S. Constitution, excessive fines may not be imposed. The Court scheduled a second phase of the bench trial for October 2016, which is planned to cover the plaintiffs’ requested injunctive relief, as well as DISH Network L.L.C.’s response to certain evidence that the state plaintiffs presented in the first phase. On April 20, 2016, the Court denied the federal plaintiff’s motion seeking to cancel the separate hearing on the plaintiffs’ requested injunctive relief . We may also from time to time be subject to private civil litigation alleging telemarketing violations. For example, a portion of the alleged telemarketing violations by an independent third-party retailer at issue in the case described in the previous paragraph are also the subject of a certified class action filed against DISH Network L.L.C. in the United States District Court for the Middle District of North Carolina. We intend to vigorously defend these cases. We cannot predict with any degree of certainty the outcome of these suits or determine the extent of any potential liability or damages. Dragon Intellectual Property, LLC On December 20, 2013, Dragon Intellectual Property, LLC (“Dragon IP”) filed complaints against our wholly-owned subsidiary DISH Network L.L.C., as well as Apple Inc.; AT&T, Inc.; Charter Communications, Inc.; Comcast Corp.; Cox Communications, Inc.; DirecTV; Sirius XM Radio Inc.; Time Warner Cable Inc. and Verizon Communications, Inc., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 5,930,444 (the “444 patent”), which is entitled “Simultaneous Recording and Playback Apparatus.” Dragon IP alleges that various of our DVR receivers infringe the 444 patent. Dragon IP is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On December 23, 2014, DISH Network L.L.C. filed a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 444 patent. On April 10, 2015, the Court granted DISH Network L.L.C.’s motion to stay the action in light of DISH Network L.L.C.’s petition and certain other defendants’ petitions pending before the United States Patent and Trademark Office challenging the validity of certain claims of the 444 patent. On July 17, 2015, the United States Patent and Trademark Office agreed to institute a proceeding on our petition. Pursuant to a stipulation between the parties, on April 27, 2016, the Court entered an order of non-infringement and judgment in favor of DISH Network L.L.C. On June 15, 2016, the United States Patent and Trademark Office entered an order that the patent claims being asserted against DISH Network L.L.C. with respect to the 444 patent are unpatentable. Dragon may seek to appeal the Court’s judgment and/or the United States Patent and Trademark Office’s decision. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Grecia On March 27, 2015, William Grecia (“Grecia”) filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of Illinois, alleging infringement of United States Patent No. 8,533,860 (the “860 patent”), which is entitled “Personalized Digital Media Access System—PDMAS Part II.” Grecia alleges that we violate the 860 patent in connection with our digital rights management. Grecia is the named inventor on the 860 patent. On June 22, 2015, the case was transferred to the United States District Court for the Northern District of California. On November 18, 2015, Grecia filed an amended complaint adding allegations that we infringe U.S. Patent No. 8,402,555 (the “555 patent”), which is entitled “Personalized Digital Media Access System (PDMAS).” Grecia is the named inventor on the 555 patent. Grecia alleges that we violate the 555 patent in connection with our digital rights management. Grecia dismissed his action with prejudice on February 3, 2016. On February 3, 2016, Grecia filed a new complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of California, alleging infringement of United States Patent No. 8,887,308 (the “308 patent”), which is entitled “Digital Cloud Access—PDMAS Part III,” on which Grecia is also the named inventor. Grecia alleges that we violate the 308 patent in connection with our DISH Anywhere feature. On June 10, 2016, DISH Network L.L.C. advised the Court that it intended to file a petition before the United States Patent and Trademark Office challenging the validity of certain claims of the 308 patent on or before July 31, 2016, and on June 13, 2016, the Court stayed the action pending the conclusion of that petition, including the exhaustion of any appeals. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Hopper Litigation On May 24, 2012, our wholly-owned subsidiary, DISH Network L.L.C., filed a lawsuit in the United States District Court for the Southern District of New York against American Broadcasting Companies, Inc.; CBS Corporation; Fox Entertainment Group, Inc.; Fox Television Holdings, Inc.; Fox Cable Network Services, L.L.C. and NBCUniversal, LLC. In the lawsuit, we sought a declaratory judgment that we are not infringing any defendant’s copyright, or breaching any defendant’s retransmission consent agreement, by virtue of the PrimeTime Anytime™ and AutoHop features of our Hopper set-top box. A consumer can use the PrimeTime Anytime feature, at his or her option, to record certain primetime programs airing on ABC, CBS, Fox, and/or NBC up to every night, and to store those recordings for up to eight days. A consumer can use the AutoHop feature, at his or her option, to watch certain recordings that the subscriber made with our PrimeTime Anytime feature, commercial-free, if played back at a certain point after the show’s original airing. Later on May 24, 2012, (i) Fox Broadcasting Company; Twentieth Century Fox Film Corp. and Fox Television Holdings, Inc. filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature, the AutoHop feature, as well as Slingbox placeshifting functionality infringe their copyrights and breach their retransmission consent agreements, (ii) NBC Studios LLC; Universal Network Television, LLC; Open 4 Business Productions LLC and NBCUniversal, LLC filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights, and (iii) CBS Broadcasting Inc.; CBS Studios Inc. and Survivor Productions LLC filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights. As a result of certain parties’ competing venue-related motions brought in both the New York and California actions, and certain networks’ filing various counterclaims and amended complaints, the claims have proceeded in the following venues: (1) the copyright and contract claims regarding the ABC and CBS parties in New York; and (2) the copyright and contract claims regarding the Fox and NBC parties in California. California Actions. The NBC plaintiffs and Fox plaintiffs filed amended complaints in their respective California actions, adding copyright claims against EchoStar and EchoStar Technologies L.L.C., a wholly-owned subsidiary of EchoStar. In addition, the Fox plaintiffs’ amended complaint added claims challenging the Hopper Transfers™ feature of our second-generation Hopper set-top box. On November 7, 2012, the California court denied the Fox plaintiffs’ motion for a preliminary injunction to enjoin the Hopper set-top box’s PrimeTime Anytime and AutoHop features, and the Fox plaintiffs appealed. On March 27, 2013, at the request of the parties, the Central District of California granted a stay of all proceedings in the action brought by the NBC plaintiffs, pending resolution of the appeal by the Fox plaintiffs. On July 24, 2013, the United States Court of Appeals for the Ninth Circuit affirmed the denial of the Fox plaintiffs’ motion for a preliminary injunction as to the PrimeTime Anytime and AutoHop features. On August 7, 2013, the Fox plaintiffs filed a petition for rehearing and rehearing en banc, which was denied on January 24, 2014. The United States Supreme Court granted the Fox plaintiffs an extension until May 23, 2014 to file a petition for writ of certiorari, but they did not file one. As a result, the stay of the NBC plaintiffs’ action expired. On August 6, 2014, at the request of the parties, the Central District of California granted a further stay of all proceedings in the action brought by the NBC plaintiffs, pending a final judgment on all claims in the Fox plaintiffs’ action. Pursuant to the settlement described below, t he Fox action was dismissed on February 11, 2016. On March 4, 2016, at the request of the parties, the Central District of California granted a further stay of all proceedings in the action brought by the NBC plaintiffs until September 9, 2016; provided that either party may file a motion with the Court to lift the stay after May 27, 2016. Pursuant to a settlement between us and the NBC plaintiffs, on June 16, 2016, we and the NBC plaintiffs filed a stipulation to dismiss with prejudice all of our respective claims pending in the California Court. The Court ordered such dismissal on June 20, 2016. In addition, on February 21, 2013, the Fox plaintiffs filed a second motion for preliminary injunction against: (i) us seeking to enjoin the Hopper Transfers feature in our second-generation Hopper set-top box, alleging breach of their retransmission consent agreement; and (ii) us and EchoStar Technologies L.L.C. seeking to enjoin the Slingbox placeshifting | 11. Commitments and Contingencies Commitments As of December 31, 2015, future maturities of our long-term debt, capital lease and contractual obligations are summarized as follows: Payments due by period Total 2016 2017 2018 2019 2020 Thereafter (In thousands) Long-term debt obligations $ $ $ $ $ $ $ Capital lease obligations Interest expense on long-term debt and capital lease obligations Satellite-related obligations Operating lease obligations Purchase obligations Total $ $ $ $ $ $ $ In certain circumstances the dates on which we are obligated to make these payments could be delayed. These amounts will increase to the extent that we procure launch and/or in-orbit insurance on our satellites or contract for the construction, launch or lease of additional satellites. The table above does not include $202 million of liabilities associated with unrecognized tax benefits that were accrued, as discussed in Note 8, and are included on our Consolidated Balance Sheets as of December 31, 2015. We do not expect any portion of this amount to be paid or settled within the next twelve months. DISH Network Spectrum DISH Network has invested over $5.0 billion since 2008 to acquire certain wireless spectrum licenses and related assets. 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. 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. For example, on February 10, 2016, DISH Network filed an application with the FCC to potentially participate as a bidder in the upcoming broadcast television spectrum incentive auction (“Auction 1000”). Auction 1000 is scheduled to begin on March 29, 2016. In connection with the development of DISH Network’s wireless business, including without limitation the efforts described above, we have made cash distributions to partially finance these efforts to date and may make additional cash distributions to finance in whole or in part DISH Network’s future efforts. See Note 15 in the Notes to our Consolidated Financial Statements in this Annual Report on Form 10-K for further information regarding our dividends to DOC. There can be no assurance that DISH Network will be able to develop and implement a business model that will realize a return on these wireless spectrum licenses or that DISH Network will be able to profitably deploy the assets represented by these wireless spectrum licenses. DISH Network Non-Controlling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses Through its wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (“American II”) and American AWS-3 Wireless III L.L.C. (“American III”), DISH Network has made over $10.0 billion in certain non-controlling investments in Northstar Spectrum, LLC (“Northstar Spectrum”), the parent company of Northstar Wireless, LLC (“Northstar Wireless,” and collectively with Northstar Spectrum, the “Northstar Entities”), and in SNR Wireless HoldCo, LLC (“SNR HoldCo”), the parent company of SNR Wireless LicenseCo, LLC (“SNR Wireless,” and collectively with SNR HoldCo, the “SNR Entities”), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the “AWS-3 Licenses”) to Northstar Wireless (the “Northstar Licenses”) and to SNR Wireless (the “SNR Licenses”), respectively. DISH Network may need to make significant additional loans to the Northstar Entities and to the SNR Entities, or they may need to partner with others, so that the Northstar Entities and the SNR Entities may commercialize, build-out and integrate the Northstar Licenses and the SNR Licenses, and comply with regulations applicable to the Northstar Licenses and the SNR Licenses. Depending upon the nature and scope of such commercialization, build-out, integration efforts, and regulatory compliance, any such loans or partnerships could vary significantly. 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 “Item 1A. Risk Factors – We have made substantial investments to acquire certain wireless spectrum licenses and other related assets. In addition, we have made substantial non-controlling investments in the Northstar Entities and the SNR Entities related to AWS-3 wireless spectrum licenses ” in DISH Network’s Annual Report on Form 10-K for the year ended December 31, 2015 for further information. Guarantees During the third quarter 2009, EchoStar entered into a satellite transponder service agreement for Nimiq 5 through 2024. We sublease this capacity from EchoStar and DISH Network guarantees a certain portion of EchoStar’s obligation under its satellite transponder service agreement through 2019. As of December 31, 2015, the remaining obligation of the DISH Network guarantee was $248 million. As of December 31, 2015, we have not recorded a liability on the balance sheet for this guarantee. Purchase Obligations Our 2016 purchase obligations primarily consist of binding purchase orders for receiver systems and related equipment, digital broadcast operations, transmission costs, engineering services, and other products and services related to the operation of our Pay-TV services. O ur purchase obligations also include certain fixed contractual commitments to purchase programming content. 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 continue to increase to the extent we are successful in growing our Pay-TV subscriber base. In addition, programming costs 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 $477 million, $468 million and $303 million in 2015, 2014 and 2013, respectively. Rent expense in 2014 increased as a result of the Satellite and Tracking Stock Transaction. See Note 4 and Note 15 for further information. 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 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. Litigation We are involved in a number of legal proceedings (including those described below) concerning matters arising in connection with the conduct of our business activities. Many of these proceedings are at preliminary stages, and many of these proceedings seek an indeterminate amount of damages. We regularly evaluate the status of the legal proceedings in which we are involved to assess whether a loss is probable or there is a reasonable possibility that a loss or an additional loss may have been incurred and to determine if accruals are appropriate. If accruals are not appropriate, we further evaluate each legal proceeding to assess whether an estimate of the possible loss or range of possible loss can be made. For certain cases described on the following pages, management is unable to provide a meaningful estimate of the possible loss or range of possible loss because, among other reasons, (i) the proceedings are in various stages; (ii) damages have not been sought; (iii) damages are unsupported and/or exaggerated; (iv) there is uncertainty as to the outcome of pending appeals or motions; (v) there are significant factual issues to be resolved; and/or (vi) there are novel legal issues or unsettled legal theories to be presented or a large number of parties (as with many patent-related cases). For these cases, however, management does not believe, based on currently available information, that the outcomes of these proceedings will have a material adverse effect on our financial condition, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period. California Institute of Technology On October 1, 2013, the California Institute of Technology (“Caltech”) filed complaints against DISH Network and its wholly-owned subsidiaries DISH Network L.L.C. and dishNET Satellite Broadband L.L.C., as well as Hughes Communications, Inc. and Hughes Network Systems, LLC, which are subsidiaries of EchoStar, in the United States District Court for the Central District of California. The complaint alleges infringement of United States Patent Nos. 7,116,710; 7,421,032; 7,916,781 and 8,284,833, each of which is entitled “Serial Concatenation of Interleaved Convolutional Codes forming Turbo-Like Codes.” Caltech alleges that encoding data as specified by the DVB-S2 standard infringes each of the asserted patents. In the operative Amended Complaint, served on March 6, 2014, Caltech claims that our Hopper ® set-top box, as well as the Hughes defendants’ satellite broadband products and services, infringe the asserted patents by implementing the DVB-S2 standard. On May 5, 2015, the Court granted summary judgment in our favor as to the Hopper set-top box alleged in the complaint. On February 17, 2015, Caltech filed a new complaint in the United States District Court for the Central District of California, asserting the same patents against the same defendants. Caltech alleges that certain broadband equipment, including without limitation the HT1000 and HT1100 modems, gateway hardware, software and/or firmware that the Hughes defendants provide to, among others, us for our use in connection with the dishNET branded broadband service, infringes these patents. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. 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 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, entitled “Multimedia Content Navigation and Playback”; 7,526,784, entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,543,318, entitled “Delivery of Navigation Data for Playback of Audio and Video Content”; 7,577,970, entitled “Multimedia Content Navigation and Playback”; and 8,117,282, 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. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. CRFD Research, Inc. (a subsidiary of Marathon Patent Group, Inc.) On January 17, 2014, CRFD Research, Inc. (“CRFD”) filed a complaint against us, our wholly-owned subsidiary DISH Network L.L.C., DISH Network, EchoStar, and its wholly-owned subsidiary EchoStar Technologies L.L.C., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 7,191,233 (the “233 patent”). The 233 patent is entitled “System for Automated, Mid-Session, User-Directed, Device-to-Device Session Transfer System,” and relates to transferring an ongoing software session from one device to another. CRFD alleges that our Hopper and Joey ® set-top boxes infringe the 233 patent. On the same day, CRFD filed similar complaints against AT&T Inc.; Comcast Corp.; DirecTV; Time Warner Cable Inc.; Cox Communications, Inc.; Akamai Technologies, Inc.; Cablevision Systems Corp. and Limelight Networks, Inc. CRFD is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On January 26, 2015, we and EchoStar filed a petition before the United States Patent and Trademark Office challenging the validity of the 233 patent. The United States Patent and Trademark Office has agreed to institute a proceeding on our petition, as well as on two third-party petitions challenging the validity of the 233 patent, and it heard oral argument on January 16, 2016. On June 4, 2015, the litigation in the District Court was ordered stayed pending resolution of the proceeding 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 patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. 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; United States Patent No. 9,053,494; United States Patent No. 7,840,437; and United States Patent No. 8,955,029. Each patent is entitled “System for Data Management And On-Demand Rental And Purchase Of Digital Data Products.” Customedia appears to allege infringement in connection with our addressable advertising services, our DISH Anywhere feature, and our Pay-Per-View and video-on-demand offerings. Customedia is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Custom Media Technologies LLC On August 15, 2013, Custom Media Technologies LLC (“Custom Media”) filed complaints against DISH Network; AT&T Inc.; Charter Communications, Inc.; Comcast Corp.; Cox Communications, Inc.; DirecTV; Time Warner Cable Inc. and Verizon Communications, Inc., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 6,269,275 (the “275 patent”). The 275 patent, which is entitled “Method and System for Customizing and Distributing Presentations for User Sites,” relates to the provision of customized presentations to viewers over a network, such as “a cable television network, an Internet or other computer network, a broadcast television network, and/or a satellite system.” Custom Media alleges that our DVR devices and DVR functionality infringe the 275 patent. Custom Media is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. Pursuant to a stipulation between the parties, on November 6, 2013, the Court entered an order substituting DISH Network L.L.C., our wholly-owned subsidiary, as the defendant in DISH Network’s place. On August 26, 2015, Custom Media dismissed its action against us with prejudice. Do Not Call Litigation On March 25, 2009, our wholly-owned subsidiary DISH Network L.L.C. was sued in a civil action by the United States Attorney General and several states in the United States District Court for the Central District of Illinois, alleging violations of the Telephone Consumer Protection Act and the Telemarketing Sales Rule, as well as analogous state statutes and state consumer protection laws. The plaintiffs allege that we, directly and through certain independent third-party retailers and their affiliates, committed certain telemarketing violations. On December 23, 2013, the plaintiffs filed a motion for summary judgment, which indicated for the first time that the state plaintiffs were seeking civil penalties and damages of approximately $270 million and that the federal plaintiff was seeking an unspecified amount of civil penalties (which could substantially exceed the civil penalties and damages being sought by the state plaintiffs). The plaintiffs are also seeking injunctive relief that if granted would, among other things, enjoin DISH Network L.L.C., whether acting directly or indirectly through authorized telemarketers or independent third-party retailers, from placing any outbound telemarketing calls to market or promote its goods or services for five years, and enjoin DISH Network L.L.C. from accepting activations or sales from certain existing independent third-party retailers and from certain new independent third-party retailers, except under certain circumstances. We also filed a motion for summary judgment, seeking dismissal of all claims. On December 12, 2014, the Court issued its opinion with respect to the parties’ summary judgment motions. The Court found that DISH Network L.L.C. is entitled to partial summary judgment with respect to one claim in the action. In addition, the Court found that the plaintiffs are entitled to partial summary judgment with respect to ten claims in the action, which includes, among other things, findings by the Court establishing DISH Network L.L.C.’s liability for a substantial amount of the alleged outbound telemarketing calls by DISH Network L.L.C. and certain of its independent third-party retailers that were the subject of the plaintiffs’ motion. The Court did not issue any injunctive relief and did not make any determination on civil penalties or damages, ruling instead that the scope of any injunctive relief and the amount of any civil penalties or damages are questions for trial. In pre-trial disclosures, the federal plaintiff indicated that it intends to seek up to $900 million in alleged civil penalties, and the state plaintiffs indicated that they intend to seek $23.5 billion in alleged civil penalties and damages. The first phase of the bench trial took place January 19, 2016 through February 11, 2016. In closing briefs, the federal plaintiff indicated that it is seeking $900 million in alleged civil penalties; the California state plaintiff indicated that it is seeking $100 million in alleged civil penalties and damages; the Ohio state plaintiff indicated that it is seeking approximately $10 million in alleged civil penalties and damages; and the Illinois and North Carolina state plaintiffs did not state the specific alleged civil penalties and damages that they are seeking. The Court will conduct a second phase of the bench trial in October 2016, which we anticipate will cover the plaintiffs’ requested injunctive relief, as well as DISH Network L.L.C.’s response to certain evidence presented by the plaintiffs in the first phase. We may also from time to time be subject to private civil litigation alleging telemarketing violations. For example, a portion of the alleged telemarketing violations at issue in the case described in the previous paragraph are also the subject of a certified class action filed against DISH Network L.L.C. in the United States District Court for the Middle District of North Carolina. We intend to vigorously defend these cases. We cannot predict with any degree of certainty the outcome of these suits or determine the extent of any potential liability or damages. Dragon Intellectual Property, LLC On December 20, 2013, Dragon Intellectual Property, LLC (“Dragon IP”) filed complaints against our wholly-owned subsidiary DISH Network L.L.C., as well as Apple Inc.; AT&T, Inc.; Charter Communications, Inc.; Comcast Corp.; Cox Communications, Inc.; DirecTV; Sirius XM Radio Inc.; Time Warner Cable Inc. and Verizon Communications, Inc., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 5,930,444 (the “444 patent”), which is entitled “Simultaneous Recording and Playback Apparatus.” Dragon IP alleges that various of our DVR receivers infringe the 444 patent. Dragon IP is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On December 23, 2014, DISH Network L.L.C. filed a petition before the United States Patent and Trademark Office challenging the validity of the 444 patent. On April 10, 2015, the Court granted DISH Network L.L.C.’s motion to stay the action in light of DISH Network L.L.C.’s petition and certain other defendants’ petitions pending before the United States Patent and Trademark Office challenging the validity of the 444 patent. On July 17, 2015, the United States Patent and Trademark Office agreed to institute a proceeding on our petition, and it heard oral argument on February 9, 2016. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. Grecia On March 27, 2015, William Grecia (“Grecia”) filed a complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of Illinois, alleging infringement of United States Patent No. 8,533,860 (the “860 patent”), which is entitled “Personalized Digital Media Access System—PDMAS Part II.” Grecia alleges that we violate the 860 patent in connection with our digital rights management. Grecia is the named inventor on the 860 patent. On June 22, 2015, the case was transferred to the United States District Court for the Northern District of California. On November 18, 2015, Grecia filed an amended complaint adding allegations that we infringe U.S. Patent No. 8,402,555 (the “555 patent”), which is entitled “Personalized Digital Media Access System (PDMAS).” Grecia is the named inventor on the 555 patent. Grecia alleges that we violate the 555 patent in connection with our digital rights management. Grecia dismissed his action with prejudice on February 3, 2016. On February 3, 2016, Grecia filed a new complaint against our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Northern District of California, alleging infringement of United States Patent No. 8,887,308 (the “308 patent”), which is entitled “Digital Cloud Access—PDMAS Part III,” on which Grecia is also the named inventor. Grecia alleges that we violate the 308 patent in connection with our DISH Anywhere feature. We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. The Hopper Litigation On May 24, 2012, our wholly-owned subsidiary, DISH Network L.L.C., filed a lawsuit in the United States District Court for the Southern District of New York against American Broadcasting Companies, Inc.; CBS Corporation; Fox Entertainment Group, Inc.; Fox Television Holdings, Inc.; Fox Cable Network Services, L.L.C. and NBCUniversal, LLC. In the lawsuit, we sought a declaratory judgment that we are not infringing any defendant’s copyright, or breaching any defendant’s retransmission consent agreement, by virtue of the PrimeTime Anytime™ and AutoHop™ features of our Hopper set-top box. A consumer can use the PrimeTime Anytime feature, at his or her option, to record certain primetime programs airing on ABC, CBS, Fox, and/or NBC up to every night, and to store those recordings for up to eight days. A consumer can use the AutoHop feature, at his or her option, to watch certain recordings that the subscriber made with our PrimeTime Anytime feature, commercial-free, if played back at a certain point after the show’s original airing. Later on May 24, 2012, (i) Fox Broadcasting Company; Twentieth Century Fox Film Corp. and Fox Television Holdings, Inc. filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature, the AutoHop feature, as well as Slingbox placeshifting functionality infringe their copyrights and breach their retransmission consent agreements, (ii) NBC Studios LLC; Universal Network Television, LLC; Open 4 Business Productions LLC and NBCUniversal, LLC filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights, and (iii) CBS Broadcasting Inc.; CBS Studios Inc. and Survivor Productions LLC filed a lawsuit against DISH Network and our wholly-owned subsidiary DISH Network L.L.C. in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature and the AutoHop feature infringe their copyrights. As a result of certain parties’ competing venue-related motions brought in both the New York and California actions, and certain networks’ filing various counterclaims and amended complaints, the claims have proceeded in the following venues: (1) the copyright and contract claims regarding the ABC and CBS parties in New York; and (2) the copyright and contract claims regarding the Fox and NBC parties in California. California Actions. The NBC plaintiffs and Fox plaintiffs filed amended complaints in their respective California actions, adding copyright claims against EchoStar and EchoStar Technologies L.L.C., a wholly-owned subsidiary of EchoStar. In addition, the Fox plaintiffs’ amended complaint added claims challenging the Hopper Transfers™ feature of our second-generation Hopper set-top box. On November 7, 2012, the California court denied the Fox plaintiffs’ motion for a preliminary injunction to enjoin the Hopper set-top box’s PrimeTime Anytime and AutoHop features, and the Fox plaintiffs appealed. On March 27, 2013, at the request of the parties, the Central District of California granted a stay of all proceedings in the action brought by the NBC plaintiffs, pending resolution of the appeal by the Fox plaintiffs. On July 24, 2013, the United States Court of Appeals for the Ninth Circuit affirmed the denial of the Fox plaintiffs’ motion for a preliminary injunction as to the PrimeTime Anytime and AutoHop features. On August 7, 2013, the Fox plaintiffs filed a petition for rehearing and rehearing en banc, which was denied on January 24, 2014. The United States Supreme Court granted the Fox plaintiffs an extension until May 23, 2014 to file a petition for writ of certiorari, but they did not file one. As a result, the stay of the NBC plaintiffs’ action expired. On August 6, 2014, at the request of the parties, the Central District of California granted a further stay of all proceedings in the action brought by the NBC plaintiffs, pending a final judgment on all claims in the Fox plaintiffs’ action. The Fox action was dismissed on February 11, 2016. On March 4, 2016, at the request of the parties, the Central District of California granted a further stay of all proceedings in the action brought by the NBC plaintiffs until September 9, 2016; provided that either party may file a motion with the Court to lift the stay after May 27, 2016. No trial date is currently set on the NBC claims. In addition, on February 21, 2013, the Fox plaintiffs filed a second motion for prelimina |
Financial Information for Sub88
Financial Information for Subsidiary Guarantors | 6 Months Ended | 12 Months Ended |
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Financial Information for Subsidiary Guarantors | 9. 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. | 12. Financial Information for Subsidiary Guarantors Our senior notes are fully, unconditionally and jointly and severally guaranteed by all of our subsidiaries other than minor subsidiaries and the stand alone entity DISH DBS has no independent assets or operations. Therefore, supplemental financial information on a condensed consolidating basis of the guarantor subsidiaries is not required. There are no restrictions on our ability to obtain cash dividends or other distributions of funds from the guarantor subsidiaries, except those imposed by applicable law. |
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Related Party Transactions | 6 Months Ended | 12 Months Ended |
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Related Party Transactions | 10. Related Party Transactions Related Party Transactions with DISH Network On June 30, 2016, we paid a dividend of $1.5 billion to DOC. On February 12, 2015, we paid a dividend of $8.250 billion to DOC for, among other things, general corporate purposes, which included certain funding obligations related to DISH Network’s non-controlling debt and equity investments in the Northstar Entities and the SNR Entities, and to fund other DISH Network cash needs. Advertising Sales. We provide advertising services to DISH Network’s broadband business. During the three months ended June 30, 2015, we received revenue associated with these services of $2 million in “Subscriber-related revenue” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). During the three months ended June 30, 2016, we received no revenue associated with these services. During the six months ended June 30, 2016 and 2015, we received revenue associated with these services of $2 million and $6 million, respectively, 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, 2016 and 2015, the costs associated with these services were $18 million and $18 million, respectively. During the six months ended June 30, 2016 and 2015, the costs associated with these services were $36 million and $41 million, respectively. Related Party Transactions with EchoStar Following the Spin-off, DISH Network and EchoStar have operated as separate publicly-traded companies, and, except for the Satellite and Tracking Stock Transaction and Sling TV Holding described below, 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 Chief Executive Officer, and by certain trusts established by Mr. Ergen for the benefit of his family. EchoStar is our primary supplier of set-top boxes and digital broadcast operations and a supplier of the vast majority of our transponder capacity. Generally, the amounts we pay EchoStar for products and services are based on pricing equal to EchoStar’s cost plus a fixed margin (unless noted differently below), which will vary depending on the nature of the products and services provided. 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. 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, 2016 and December 31, 2015, trade accounts receivable from EchoStar was $18 million and $23 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Condensed Consolidated Balance Sheets . “Trade accounts payable” As of June 30, 2016 and December 31, 2015, trade accounts payable to EchoStar was $316 million and $263 million, respectively. These amounts are recorded in “Trade accounts payable” on our Condensed Consolidated Balance Sheets . “Equipment sales and other revenue” During the three months ended June 30, 2016 and 2015 , we received less than $1 m illion and $13 million , respectively, for equipment sales and other revenue from EchoStar. During the six months ended June 30, 2016 and 2015 , we received less than $1 million and $26 million , respectively, for equipment sales and other revenue from 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. Remanufactured Receiver and Services Agreement. We entered into a remanufactured receiver and services agreement with EchoStar pursuant to which EchoStar has the right, but not the obligation, to purchase remanufactured receivers and accessories from us at cost plus a fixed margin, which varies depending on the nature of the equipment purchased. In November 2015, we and EchoStar extended this agreement until December 31, 2016. EchoStar may terminate the remanufactured receiver and services agreement for any reason upon at least 60 days notice to us. We may also terminate this agreement if certain entities acquire us. Satellite Capacity Leased to EchoStar. Since the Spin-off, we have entered into certain satellite capacity agreements pursuant to which EchoStar leases certain capacity on certain satellites owned by us. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. The term of each lease is set forth below: · EchoStar XV. During May 2013, we began leasing satellite capacity to EchoStar on EchoStar XV and relocated the satellite for testing at EchoStar’s Brazilian authorization at the 45 degree orbital location. Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days notice. This lease terminated in November 2015 and EchoStar relocated this satellite from the 45 degree orbital location back to the 61.5 degree orbital location where it currently serves as an in-orbit spare. Real Estate Lease Agreements. Since the Spin-off, 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 leased 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. “Subscriber-related expenses” During the three months ended June 30, 2016 and 2015, we incurred $2 million and $3 million, respectively, for subscriber-related expenses from EchoStar. During the six months ended June 30, 2016 and 2015, we incurred $5 million and $6 million, respectively, for subscriber-related expenses from EchoStar. These amounts are recorded in “Subscriber-related expenses” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. SlingService Services Agreement . Effective February 23, 2010, we entered into an agreement with EchoStar pursuant to which we receive certain services related to placeshifting, which is used for, among other things, the DISH Anywhere mobile application. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement renewed on February 23, 2016 for an additional one -year period until February 23, 2017. This agreement may be terminated for any reason upon at least 120 days notice to EchoStar. DISH Remote Access Services Agreement . Effective February 23, 2010, we entered into an agreement with EchoStar pursuant to which we receive, among other things, certain remote DVR management services. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement renewed on February 23, 2016 for an additional one -year period until February 23, 2017. This agreement may be terminated for any reason upon at least 120 days notice to EchoStar. “Satellite and transmission expenses” During the three months ended June 30, 2016 and 2015, we incurred $168 million and $183 million, respectively, for satellite and transmission expenses from EchoStar. During the six months ended June 30, 2016 and 2015, we incurred $332 million and $358 million, respectively, for satellite and transmission expenses from EchoStar. 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. Broadcast Agreement. Effective January 1, 2012, we and EchoStar entered into a broadcast agreement (the “2012 Broadcast Agreement”) pursuant to which EchoStar provides broadcast services to us, including teleport services such as transmission and downlinking, channel origination services, and channel management services, for the period from January 1, 2012 to December 31, 2016. The fees for services provided under the 2012 Broadcast Agreement are calculated at either: (a) EchoStar’s cost of providing the relevant service plus a fixed dollar fee, which is subject to certain adjustments; or (b) EchoStar’s cost of providing the relevant service plus a fixed margin, which will depend on the nature of the services provided. We have the ability to terminate channel origination services and channel management services for any reason and without any liability upon at least 60 days notice to EchoStar. If we terminate the teleport services provided under the 2012 Broadcast Agreement for a reason other than EchoStar’s breach, we are generally obligated to reimburse EchoStar for any direct costs EchoStar incurs related to any such termination that it cannot reasonably mitigate. Broadcast Agreement for Certain Sports Related Programming. During May 2010, we and EchoStar entered into a broadcast agreement pursuant to which EchoStar provides certain broadcast services to us in connection with our carriage of certain sports related programming. The term of this agreement is for ten years. If we terminate this agreement for a reason other than EchoStar’s breach, we are generally obligated to reimburse EchoStar for any direct costs EchoStar incurs related to any such termination that it cannot reasonably mitigate. The fees for the broadcast services provided under this agreement depend, among other things, upon the cost to develop and provide such services. Satellite Capacity Leased from EchoStar . Since the Spin-off, we have entered into certain satellite capacity agreements pursuant to which we lease certain capacity on certain satellites owned or leased by EchoStar. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: · EchoStar I, VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar I, VII, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. The satellite capacity agreement for EchoStar I expired on November 30, 2015. · EchoStar VIII. During May 2013, we began leasing capacity from EchoStar on EchoStar VIII as an in-orbit spare . Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days notice. This lease terminated in November 2015. · EchoStar IX . We lease certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally have the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis. · EchoStar XII. The lease for EchoStar XII generally terminates upon the earlier of: (i) the end-of-life or replacement of the satellite (unless we determine to renew on a year-to-year basis); (ii) the date the satellite fails; (iii) the date the transponders on which service is being provided fails; or (iv) a certain date, which depends upon, among other things, the estimated useful life of the satellite, whether the replacement satellite fails at launch or in orbit prior to being placed into service and the exercise of certain renewal options. We generally have the option to renew the lease on a year-to-year basis through the end of the satellite’s life. There can be no assurance that any options to renew this agreement will be exercised. · EchoStar XVI. During 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 during 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. During 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 have the option to renew for an additional five -year period. Prior to expiration of the initial term, EchoStar also has the right, upon certain conditions, to renew for an additional five -year period. If either we or EchoStar exercise our respective five-year renewal options, then we have the option to renew for an additional five -year period prior to expiration of the then-current term. There can be no assurance that any options to renew this agreement will be exercised. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen -year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”) . During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we currently receive service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. DISH Network has also guaranteed certain obligations of EchoStar under the Telesat Transponder Agreement. See discussion under “Guarantees” in Note 8. Under the terms of the DISH Nimiq 5 Agreement, we make certain monthly payments to EchoStar that commenced in September 2009 when the Nimiq 5 satellite was placed into service and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we have the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Upon in ‑orbit failure or end-of-life of the Nimiq 5 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the DISH Nimiq 5 Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten -year satellite service agreement with SES Latin America S.A. (“SES”), which provides, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite. During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we receive service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location while we and EchoStar explored alternative uses for the QuetzSat-1 satellite. In the interim, EchoStar provided us with alternate capacity at the 77 degree orbital location. During the first quarter 2013, we and EchoStar entered into an agreement pursuant to which we sublease five DBS transponders back to EchoStar. During January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the QuetzSat-1 Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. Upon an in ‑orbit failure or end-of-life of the QuetzSat-1 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the QuetzSat-1 Transponder Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. 103 Degree Orbital Location/SES-3. During 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”). During June 2013, we and EchoStar entered into a spectrum development agreement (the “DISH 103 Spectrum Development Agreement”) pursuant to which we may use and develop the 103 Spectrum Rights. Unless earlier terminated under the terms and conditions of the DISH 103 Spectrum Development Agreement, the term generally will continue for the duration of the 103 Spectrum Rights. In connection with the 103 Spectrum Development Agreement, during 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”). During June 2013, we and EchoStar entered into an agreement pursuant to which we lease certain satellite capacity from EchoStar on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, we make certain monthly payments to EchoStar through the service term. Unless earlier terminated under the terms and conditions of the DISH 103 Service Agreement, the initial service term will expire on the earlier of: (i) the date the SES-3 satellite fails; (ii) the date the transponder(s) on which service was being provided under the agreement fails; or (iii) ten years following the actual service commencement date. Upon in-orbit failure or end-of-life of the SES-3 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that we will exercise our option to receive service on a replacement satellite. TT&C Agreement. Effective January 1, 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we receive TT&C services from EchoStar for certain satellites for a period ending on December 31, 2016 (the “2012 TT&C Agreement”). The fees for services provided under the 2012 TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We are able to terminate the 2012 TT&C Agreement for any reason upon 60 days notice. DISHOnline.com Services Agreement. Effective January 1, 2010, we entered into a two -year agreement with EchoStar pursuant to which we receive certain services associated with an online video portal. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. We have the option to renew this agreement for successive one year terms and the agreement may be terminated for any reason upon at least 120 days notice to EchoStar. In November 2015, we exercised our right to renew this agreement for a one -year period ending on December 31, 2016. Sling TV Holding. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding to us. Effective July 1, 2012, DISH Network and EchoStar formed Sling TV Holding, which was owned two -thirds by DISH Network and one -third by EchoStar and was consolidated into DISH Network’s financial statements beginning July 1, 2012. Sling TV Holding was formed to develop and commercialize certain advanced technologies. At that time, DISH Network, EchoStar and Sling TV Holding entered into the following agreements with respect to Sling TV Holding: (i) a contribution agreement pursuant to which DISH Network and EchoStar contributed certain assets in exchange for its respective ownership interests in Sling TV Holding; (ii) a limited liability company operating agreement (the “Operating Agreement”), which provides for the governance of Sling TV Holding; and (iii) a commercial agreement (the “Commercial Agreement”) pursuant to which, among other things, Sling TV Holding has: (a) certain rights and corresponding obligations with respect to its business; and (b) the right, but not the obligation, to receive certain services from DISH Network and EchoStar, respectively. Since this was a formation of an entity under common control and a step-up in basis was not allowed, each party’s contributions were recorded at historical book value for accounting purposes. Effective August 1, 2014, EchoStar and Sling TV Holding entered into the Exchange Agreement pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. We now have a ninety percent equity interest and a 100% voting interest in Sling TV Holding. In addition, we, EchoStar and Sling TV Holding amended and restated the Operating Agreement, primarily to reflect the changes implemented by the Exchange Agreement. Finally, we, EchoStar and Sling TV Holding amended and restated the Commercial Agreement, pursuant to which, among other things, Sling TV Holding: (1) continues to have certain rights and corresponding obligations with respect to its business; (2) continues to have the right, but not the obligation, to receive certain services from us and EchoStar; and (3) has a license from EchoStar to use certain of the assets distributed to EchoStar as part of the Exchange Agreement. Sling TV Holding operates, through its subsidiary Sling TV L.L.C., the Sling TV services. Since the Exchange Agreement is among entities under common control, we recorded the difference between the historical cost basis of the assets transferred to EchoStar and our historical cost basis in EchoStar’s one-third noncontrolling interest in Sling TV Holding as a $6 million, net of deferred taxes, capital distribution in “Additional paid-in capital” on our Condensed Consolidated Balance Sheets. In addition, we recorded the initial fair value of EchoStar’s ten percent non-voting interest as a $14 million, net of deferred taxes, deemed distribution in “Additional paid-in capital” on our Condensed Consolidated Balance Sheets . EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal has been determined to be probable of achievement. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes, on our Condensed Consolidated Balance Sheets. Subsequent to the Exchange Agreement, the operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” on our Condensed Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). “General and administrative expenses” During the three months ended June 30, 2016 and 2015, we incurred $25 million and $23 million, respectively, for general and administrative expenses from EchoStar. During the six months ended June 30, 2016 and 2015, we incurred $47 million and $43 million , respectively, for general and administrative expenses from 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. Product Support Agreement. In connection with the Spin-off, we entered into a product support agreement pursuant to which we have the right, but not the obligation, to receive product support from EchoStar (including certain engineering and technical support services) for all set-top boxes and related accessories that EchoStar has previously sold and in the future may sell to us. The fees for the services provided under the product support agreement are calculated at cost plus a fixed margin, which varies depending on the nature of the services provided. The term of the product support agreement is the economic life of such receivers and related accessories, unless terminated earlier. We may terminate the product support agreement for any reason upon at least 60 days notice. In the event of an early termination of this agreement, we are entitled to a refund of any unearned fees paid to EchoStar for the services. 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: · Inverness Lease Agreement. The lease for certain space at 90 Inverness Circle East in Englewood, Colorado is for a period ending on December 31, 2016. This agreement can be terminated by either party upon six months prior notice. In February 2016, we provided notice to EchoStar to terminate this lease effective August 10, 2016. · Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado is for a period ending on December 31, 2016. · Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado is for a period ending on December 31, 2016. · EchoStar Data Networks Sublease Agreement . The sublease for certain space at 211 Perimeter Center in Atlanta, Georgia is for a period ending on October 31, 2016. · Gilbert Lease Agreement. Effective August 1, 2014, we began leasing certain space from EchoStar at 801 N. DISH Dr. in Gilbert, Arizona for a period endi ng on July 31, 2016. We also have renewal options for three additional one -year terms. · Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. Application Development Agreement. During the fourth quarter 2012, we and EchoStar entered into a set-top box application development agreement (the “Application Development Agreement”) pursuant to which EchoStar provides us with certain services relating to the development of web-based applications for set-top boxes for a period ending on February 1, 2017. The Application Development Agreement renews automatically for successive one -year periods thereafter, unless terminated earlier by us or EchoStar at any time upon at least 90 days notice. The fees for services provided under the Application Development Agreement are calculated at EchoStar’s cost of providing the relevant service plus a fixed margin, which will depend on the nature of the services provided. XiP Encryption Agreement. During the third quarter 2012, we entered into an encryption agreement with EchoStar for our whole-home HD DVR line of set-top boxes (the “XiP Encryption Agreement”) pursuant to which EchoStar provides certain security measures on our whole-home HD DVR line of set-top boxes to encrypt the content delivered to the set-top box via a smart card and secure the content between set-top boxes. The initial term of the XiP Encryption Agreement was for a period until December 31, 2014. Under the XiP Encryption Agreement, we had the option, but not the obligation, to extend the XiP Encryption Agreement for one additional year upon 180 days notice prior to the end of the term. On May 5, 2014, we provided EchoStar notice to extend the XiP Encryption Agreement for one additional year until December 31, 2015. On November 4, 2015, we and EchoStar extended the term of the XiP Encryption Agreement for one additional year until December 31, 2016. We and EchoStar each have the right to terminate the XiP Encryption Agreement for any reason upon at least 30 days notice and 180 days notice, respectively. The fees for the services provided under the XiP Encryption Agreement are calculated on a monthly basis based on the number of receivers utilizing such security measures each month. Sling Trademark License Agreement. On December 31, 2014, Sling TV L.L.C. entered into an agreement with Sling Media, Inc., a subsidiary of EchoStar, pursuant to which we have the right for a fixed fee to use certain trademarks, domain names and other intellectual property related to the “Sling” trademark for a period ending on December 31, 2016. Professional Services Agreement . Prior to 2010, in connection with the Spin-off, DISH Network entered into various agreements with EchoStar including the Transition Services Agreement, Satellite Procurement Agreement and Services Agreement, which all expired on January 1, 2010 and were replaced by a Professional Services Agreement. During 2009, DISH Network and EchoStar agreed that EchoStar shall continue to have the right, but not the obligation, to receive the following services from DISH Network, among others, certain of which were previously provided under the Transition Services Agreement: information technology, travel and event coordination, internal audit, legal, accounting and tax, benefits administration, program acquisition services and other support services. Additionally, DISH Network and EchoStar agreed that DISH Network shall continue to have the right, but not the obligation, to engage EchoStar to manage the process of procuring ne | 15. Related Party Transactions Related Party Transactions with DISH Network On February 12, 2015, we paid a dividend of $8.250 billion to DOC for, among other things, general corporate purposes, which included certain funding obligations related to DISH Network’s non-controlling equity and debt investments in the Northstar Entities and the SNR Entities, and to fund other DISH Network cash needs. On October 14, 2014, we paid a dividend of $1.5 billion to DOC in connection with, among other things, DISH Network’s general corporate purposes. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding to us. We recorded all of the assets and liabilities at historical cost and the difference was recorded as a deemed distribution in “Stockholder’s equity (deficit)” on our Consolidated Balance Sheets. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014. On March 28, 2014, we paid a dividend of $650 million to DOC in connection with, among other things, the funding of certain payments by DISH Network related to its winning bid for all 176 wireless spectrum licenses in the H Block auction. Blockbuster. On April 26, 2011, our parent, DISH Network, completed the acquisition of most of the assets of Blockbuster, Inc. During the year ended December 31, 2013, we recorded $11 million of “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss) for Blockbuster services provided to our subscribers related to certain of our promotions. As of December 31, 2013, Blockbuster had ceased material operations. As a result, during the years ended December 31, 2015 and 2014, respectively, we did not record any expense related to these services. Advertising Sales. We provide advertising services to DISH Network’s broadband business. During the years ended December 31, 2015, 2014 and 2013, we received revenue associated with these services of $10 million, $18 million and $15 million, respectively, in “Subscriber-related revenue” on our Consolidated Statements of Operations and Comprehensive Income (Loss). Broadband, Wireless and Other Operations. We provide certain administrative support such as legal, information systems, marketing, human resources, accounting and finance services to DISH Network’s broadband, Wireless and other operations. In addition, we provide call center, installation and other services to DISH Network for its broadband business. During the years ended December 31, 2015, 2014 and 2013, the costs associated with these services were $14 million, $12 million and $10 million, respectively. Related Party Transactions with EchoStar Following the Spin-off, DISH Network and EchoStar have operated as separate publicly-traded companies, and, except for the Satellite and Tracking Stock Transaction and Sling TV Holding described below, 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 Chief Executive Officer, and by certain trusts established by Mr. Ergen for the benefit of his family. EchoStar is our primary supplier of set-top boxes and digital broadcast operations and a supplier of the vast majority of our transponder capacity. Generally, the amounts we pay EchoStar for products and services are based on pricing equal to EchoStar’s cost plus a fixed margin (unless noted differently below), which will vary depending on the nature of the products and services provided. 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. 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, 2015 and 2014, trade accounts receivable from EchoStar was $23 million and $31 million, respectively. These amounts are recorded in “Trade accounts receivable” on our Consolidated Balance Sheets . “Trade accounts payable” As of December 31, 2015 and 2014, trade accounts payable to EchoStar was $263 million and $236 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, 2015, 2014 and 2013 , we received $46 million, $62 million and $43 million, respectively, for equipment sales, services and other revenue from 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. Remanufactured Receiver and Services Agreement. We entered into a remanufactured receiver and services agreement with EchoStar pursuant to which EchoStar has the right, but not the obligation, to purchase remanufactured receivers and accessories from us at cost plus a fixed margin, which varies depending on the nature of the equipment purchased. In November 2015, we and EchoStar extended this agreement until December 31, 2016. EchoStar may terminate the remanufactured receiver and services agreement for any reason upon at least 60 days notice to us. We may also terminate this agreement if certain entities acquire us. Satellite Capacity Leased to EchoStar. Since the Spin-off, we have entered into certain satellite capacity agreements pursuant to which EchoStar leases certain capacity on certain satellites owned by us. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. The term of each lease is set forth below: EchoStar XV. During May 2013, we began leasing satellite capacity to EchoStar on EchoStar XV and relocated the satellite for testing at EchoStar’s Brazilian authorization at the 45 degree orbital location. Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days notice. This lease terminated in November 2015 and EchoStar relocated this satellite from the 45 degree orbital location back to the 61.5 degree orbital location where it currently serves as an in-orbit spare. Real Estate Lease Agreements. Since the Spin-off, 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 leased 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. “Subscriber-related expenses” During the years ended December 31, 2015, 2014 and 2013 , we incurred $12 million, $9 million and $5 million, respectively, for subscriber-related expenses from EchoStar. These amounts are recorded in “Subscriber-related expenses” on our Consolidated Statements of Operations and Comprehensive Income (Loss). The agreements pertaining to these expenses are discussed below. SlingService Services Agreement. Effective February 23, 2010, we entered into an agreement with EchoStar pursuant to which we receive certain services related to placeshifting, which is used for, among other things, the DISH Anywhere mobile application. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement renewed on February 23, 2016 for an additional one-year period until February 23, 2017. This agreement may be terminated for any reason upon at least 120 days notice to EchoStar. DISH Remote Access Services Agreement. Effective February 23, 2010, we entered into an agreement with EchoStar pursuant to which we receive, among other things, certain remote DVR management services. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. This agreement had an initial term of five years with automatic renewal for successive one year terms. This agreement renewed on February 23, 2016 for an additional one-year period until February 23, 2017. This agreement may be terminated for any reason upon at least 120 days notice to EchoStar. “Satellite and transmission expenses” During the years ended December 31, 2015, 2014 and 2013, we incurred $715 million, $646 million and $487 million, respectively, for satellite and transmission expenses from EchoStar. 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. Broadcast Agreement. Effective January 1, 2012, we and EchoStar entered into a broadcast agreement (the “2012 Broadcast Agreement”) pursuant to which EchoStar provides broadcast services to us, including teleport services such as transmission and downlinking, channel origination services, and channel management services, for the period from January 1, 2012 to December 31, 2016. The fees for services provided under the 2012 Broadcast Agreement are calculated at either: (a) EchoStar’s cost of providing the relevant service plus a fixed dollar fee, which is subject to certain adjustments; or (b) EchoStar’s cost of providing the relevant service plus a fixed margin, which will depend on the nature of the services provided. We have the ability to terminate channel origination services and channel management services for any reason and without any liability upon at least 60 days notice to EchoStar. If we terminate the teleport services provided under the 2012 Broadcast Agreement for a reason other than EchoStar’s breach, we are generally obligated to reimburse EchoStar for any direct costs EchoStar incurs related to any such termination that it cannot reasonably mitigate. Broadcast Agreement for Certain Sports Related Programming. During May 2010, we and EchoStar entered into a broadcast agreement pursuant to which EchoStar provides certain broadcast services to us in connection with our carriage of certain sports related programming. The term of this agreement is for ten years. If we terminate this agreement for a reason other than EchoStar’s breach, we are generally obligated to reimburse EchoStar for any direct costs EchoStar incurs related to any such termination that it cannot reasonably mitigate. The fees for the broadcast services provided under this agreement depend, among other things, upon the cost to develop and provide such services. Satellite Capacity Leased from EchoStar. Since the Spin-off, we have entered into certain satellite capacity agreements pursuant to which we lease certain capacity on certain satellites owned or leased by EchoStar. The fees for the services provided under these satellite capacity agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are leased on the applicable satellite and the length of the lease. See “Pay-TV Satellites” in Note 6 for further information. The term of each lease is set forth below: · EchoStar I, VII, X, XI and XIV. On March 1, 2014, we began leasing all available capacity from EchoStar on the EchoStar I, VII, X, XI and XIV satellites. The term of each satellite capacity agreement generally terminates upon the earlier of: (i) the end-of-life of the satellite; (ii) the date the satellite fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. We generally have the option to renew each satellite capacity agreement on a year-to-year basis through the end of the respective satellite’s life. There can be no assurance that any options to renew such agreements will be exercised. The satellite capacity agreement for EchoStar I expired on November 30, 2015. · EchoStar VIII. During May 2013, we began leasing capacity from EchoStar on EchoStar VIII as an in-orbit spare. Effective March 1, 2014, this lease converted to a month-to-month lease. Both parties have the right to terminate this lease with 30 days notice. This lease terminated in November 2015. · EchoStar IX . We lease certain satellite capacity from EchoStar on EchoStar IX. Subject to availability, we generally have the right to continue to lease satellite capacity from EchoStar on EchoStar IX on a month-to-month basis. · EchoStar XII . The lease for EchoStar XII generally terminates upon the earlier of: (i) the end-of-life or replacement of the satellite (unless we determine to renew on a year-to-year basis); (ii) the date the satellite fails; (iii) the date the transponders on which service is being provided fails; or (iv) a certain date, which depends upon, among other things, the estimated useful life of the satellite, whether the replacement satellite fails at launch or in orbit prior to being placed into service and the exercise of certain renewal options. We generally have the option to renew the lease on a year-to-year basis through the end of the satellite’s life. There can be no assurance that any options to renew this agreement will be exercised. · EchoStar XVI. During 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 during 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. Prior to expiration of the initial term, we have the option to renew for an additional six -year period. Prior to expiration of the initial term, EchoStar also has the right, upon certain conditions, to renew for an additional six-year period. If either we or EchoStar exercise our respective six-year renewal options, then we have the option to renew for an additional five -year period prior to expiration of the then-current term. There can be no assurance that any options to renew this agreement will be exercised. Nimiq 5 Agreement . During 2009, EchoStar entered into a fifteen -year satellite service agreement with Telesat Canada (“Telesat”) to receive service on all 32 DBS transponders on the Nimiq 5 satellite at the 72.7 degree orbital location (the “Telesat Transponder Agreement”) . During 2009, EchoStar also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with us, pursuant to which we currently receive service from EchoStar on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. DISH Network has also guaranteed certain obligations of EchoStar under the Telesat Transponder Agreement. See discussion under “Guarantees” in Note 11. Under the terms of the DISH Nimiq 5 Agreement, we make certain monthly payments to EchoStar that commenced in September 2009 when the Nimiq 5 satellite was placed into service and continue through the service term. Unless earlier terminated under the terms and conditions of the DISH Nimiq 5 Agreement, the service term will expire ten years following the date the Nimiq 5 satellite was placed into service. Upon expiration of the initial term, we have the option to renew the DISH Nimiq 5 Agreement on a year-to-year basis through the end-of-life of the Nimiq 5 satellite. Upon in-orbit failure or end-of-life of the Nimiq 5 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the DISH Nimiq 5 Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. QuetzSat-1 Lease Agreement. During 2008, EchoStar entered into a ten -year satellite service agreement with SES Latin America S.A. (“SES”), which provides, among other things, for the provision by SES to EchoStar of service on 32 DBS transponders on the QuetzSat-1 satellite. During 2008, EchoStar also entered into a transponder service agreement (“QuetzSat-1 Transponder Agreement”) with us pursuant to which we receive service from EchoStar on 24 DBS transponders. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter 2011 at the 67.1 degree orbital location while we and EchoStar explored alternative uses for the QuetzSat-1 satellite. In the interim, EchoStar provided us with alternate capacity at the 77 degree orbital location. During the first quarter 2013, we and EchoStar entered into an agreement pursuant to which we sublease five DBS transponders back to EchoStar. During January 2013, QuetzSat-1 was moved to the 77 degree orbital location and we commenced commercial operations at that location in February 2013. Unless earlier terminated under the terms and conditions of the QuetzSat-1 Transponder Agreement, the initial service term will expire in November 2021. Upon expiration of the initial term, we have the option to renew the QuetzSat-1 Transponder Agreement on a year-to-year basis through the end-of-life of the QuetzSat-1 satellite. Upon an in-orbit failure or end-of-life of the QuetzSat-1 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that any options to renew the QuetzSat-1 Transponder Agreement will be exercised or that we will exercise our option to receive service on a replacement satellite. 103 Degree Orbital Location/SES-3. During 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”). During 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. During the third quarter 2013, we made a $23 million payment to EchoStar in exchange for its rights under the 103 Spectrum Development Agreement. In accordance with accounting principles that apply to transfers of assets between companies under common control, we recorded EchoStar’s net book value of this asset of $20 million in “Other noncurrent assets, net” on our Consolidated Balance Sheets and recorded the amount in excess of EchoStar’s net book value of $3 million as a capital distribution. Unless earlier terminated under the terms and conditions of the DISH 103 Spectrum Development Agreement, the term generally will continue for the duration of the 103 Spectrum Rights. In connection with the 103 Spectrum Development Agreement, during 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”). During June 2013, we and EchoStar entered into an agreement pursuant to which we lease certain satellite capacity from EchoStar on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, we make certain monthly payments to EchoStar through the service term. Unless earlier terminated under the terms and conditions of the DISH 103 Service Agreement, the initial service term will expire on the earlier of: (i) the date the SES-3 satellite fails; (ii) the date the transponder(s) on which service was being provided under the agreement fails; or (iii) ten years following the actual service commencement date. Upon in-orbit failure or end-of-life of the SES-3 satellite, and in certain other circumstances, we have certain rights to receive service from EchoStar on a replacement satellite. There can be no assurance that we will exercise our option to receive service on a replacement satellite. TT&C Agreement. Effective January 1, 2012, we entered into a telemetry, tracking and control (“TT&C”) agreement pursuant to which we receive TT&C services from EchoStar for certain satellites for a period ending on December 31, 2016 (the “2012 TT&C Agreement”). The fees for services provided under the 2012 TT&C Agreement are calculated at either: (i) a fixed fee; or (ii) cost plus a fixed margin, which will vary depending on the nature of the services provided. We are able to terminate the 2012 TT&C Agreement for any reason upon 60 days notice. DISHOnline.com Services Agreement. Effective January 1, 2010, we entered into a two -year agreement with EchoStar pursuant to which we receive certain services associated with an online video portal. The fees for the services provided under this services agreement depend, among other things, upon the cost to develop and operate such services. We have the option to renew this agreement for successive one year terms and the agreement may be terminated for any reason upon at least 120 days notice to EchoStar. In November 2015, we exercised our right to renew this agreement for a one-year period ending on December 31, 2016. Sling TV Holding. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding to us. See “Related Party Transactions with DISH Network” within the related party section previously discussed. Effective July 1, 2012, DISH Network and EchoStar formed Sling TV Holding, which was owned two-thirds by DISH Network and one-third by EchoStar and was consolidated into DISH Network’s financial statements beginning July 1, 2012. Sling TV Holding was formed to develop and commercialize certain advanced technologies. At that time, DISH Network, EchoStar and Sling TV Holding entered into the following agreements with respect to Sling TV Holding: (i) a contribution agreement pursuant to which DISH Network and EchoStar contributed certain assets in exchange for its respective ownership interests in Sling TV Holding; (ii) a limited liability company operating agreement (the “Operating Agreement”), which provides for the governance of Sling TV Holding; and (iii) a commercial agreement (the “Commercial Agreement”) pursuant to which, among other things, Sling TV Holding has: (a) certain rights and corresponding obligations with respect to its business; and (b) the right, but not the obligation, to receive certain services from DISH Network and EchoStar, respectively. Since this was a formation of an entity under common control and a step-up in basis was not allowed, each party’s contributions were recorded at historical book value for accounting purposes. Effective August 1, 2014, EchoStar and Sling TV Holding entered into the Exchange Agreement pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. We now have a ninety percent equity interest and a 100% voting interest in Sling TV Holding. In addition, we, EchoStar and Sling TV Holding amended and restated the Operating Agreement, primarily to reflect the changes implemented by the Exchange Agreement. Finally, we, EchoStar and Sling TV Holding amended and restated the Commercial Agreement, pursuant to which, among other things, Sling TV Holding: (1) continues to have certain rights and corresponding obligations with respect to its business; (2) continues to have the right, but not the obligation, to receive certain services from us and EchoStar; and (3) has a license from EchoStar to use certain of the assets distributed to EchoStar as part of the Exchange Agreement. Sling TV Holding operates, through its subsidiary Sling TV L.L.C., the Sling TV services. Since the Exchange Agreement is among entities under common control, we recorded the difference between the historical cost basis of the assets transferred to EchoStar and our historical cost basis in EchoStar’s one-third noncontrolling interest in Sling TV Holding as a $6 million, net of deferred taxes, capital distribution in “Additional paid-in capital” on our Consolidated Balance Sheets. In addition, we recorded the initial fair value of EchoStar’s ten percent non-voting interest as a $14 million , net of deferred taxes, deemed distribution in “Additional paid-in capital” on our Consolidated Balance Sheets. EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal was determined to be probable during the third quarter 2015. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes, on our Consolidated Balance Sheets. As of December 31, 2015, this difference was $10 million, net of deferred taxes. Subsequent to the Exchange Agreement, the operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” in our Consolidated Balance Sheets, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). “General and administrative expenses” During the years ended December 31, 2015, 2014 and 2013, we incurred $92 million, $101 million and $69 million, respectively, for general and administrative expenses from 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. Product Support Agreement. In connection with the Spin-off, we entered into a product support agreement pursuant to which we have the right, but not the obligation, to receive product support from EchoStar (including certain engineering and technical support services) for all set-top boxes and related accessories that EchoStar has previously sold and in the future may sell to us. The fees for the services provided under the product support agreement are calculated at cost plus a fixed margin, which varies depending on the nature of the services provided. The term of the product support agreement is the economic life of such receivers and related accessories, unless terminated earlier. We may terminate the product support agreement for any reason upon at least 60 days notice. In the event of an early termination of this agreement, we are entitled to a refund of any unearned fees paid to EchoStar for the services. 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: · Inverness Lease Agreement. The lease for certain space at 90 Inverness Circle East in Englewood, Colorado is for a period ending on December 31, 2016. This agreement can be terminated by either party upon six months prior notice. In February 2016, we provided EchoStar notice to terminate this lease effective August 2016. · Meridian Lease Agreement. The lease for all of 9601 S. Meridian Blvd. in Englewood, Colorado is for a period ending on December 31, 2016. · Santa Fe Lease Agreement. The lease for all of 5701 S. Santa Fe Dr. in Littleton, Colorado is for a period ending on December 31, 2016. · EchoStar Data Networks Sublease Agreement . The sublease for certain space at 211 Perimeter Center in Atlanta, Georgia is for a period ending on October 31, 2016. · Gilbert Lease Agreement. Effective August 1, 2014, we began leasing certain space from EchoStar at 801 N. DISH Dr. in Gilbert, Arizona for a period ending on July 31, 2016. We also have renewal options for three additional one -year terms. · Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. Application Development Agreement. During the fourth quarter 2012, we and EchoStar entered into a set-top box application development agreement (the “Application Development Agreement”) pursuant to which EchoStar provides us with certain services relating to the development of web-based applications for set-top boxes for a period ending on February 1, 2017. The Application Development Agreement renews automatically for successive one -year periods thereafter, unless terminated earlier by us or EchoStar at any time upon at least 90 days notice. The fees for services provided under the Application Development Agreement are calculated at EchoStar’s cost of providing the relevant service plus a fixed margin, which will depend on the nature of the services provided. XiP Encryption Agreement. During the third quarter 2012, we entered into an encryption agreement with EchoStar for our whole-home HD DVR line of set-top boxes (the “XiP Encryption Agreement”) pursuant to which EchoStar provides certain security measures on our whole-home HD DVR line of set-top boxes to encrypt the content delivered to the set-top box via a smart card and secure the content between set-top boxes. The initial term of the XiP Encryption Agreement was for a period until December 31, 2014. Under the XiP Encryption Agreement, we had the option, but not the obligation, to extend the XiP Encryption Agreement for one additional year upon 180 days notice prior to the end of the term. On May 5, 2014, we provided EchoStar notice to extend the XiP Encryption Agreement for one additional year until December 31, 2015. On November 4, 2015, we and EchoStar extended the term of the XiP Encryption Agreement for one additional year until December 31, 2016. We and EchoStar each have the right to terminate the XiP Encryption Agreement for any reason upon at least 30 days notice and 180 days notice, respectively. The fees for the services provided under the XiP Encryption Agreement are calculated on a monthly basis based on the number of receivers utilizing such security measures each month. Sling Trademark License Agreement. On December 31, 2014, Sling TV L.L.C. entered into an agreement with Sling Media, Inc., a subsidiary of EchoStar, pursuant to which we have the right for a fixed fee to use certain trademarks, domain names and other intellectual property related to the “Sling” trademark for a period ending on December 31, 2016. Professional Services Agreement. Prior to 2010, in connection wit |
Summary of Significant Accoun90
Summary of Significant Accounting Policies (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
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, 2015. 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. See below for further information. Non-consolidated investments are accounted for using the equity method when we have the ability to significantly influence the operating decisions of the investee. When we do not have the ability to significantly influence the operating decisions of an investee, the cost method is used. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Redeemable Noncontrolling Interests | Redeemable Noncontrolling Interests Sling TV. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding L.L.C. (“Sling TV Holding,” formerly known as DISH Digital Holding L.L.C.) to us. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014. Effective August 1, 2014, EchoStar Corporation (“EchoStar”) and Sling TV Holding entered into an exchange agreement (the “Exchange Agreement”) pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Condensed Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal has been determined to be probable of achievement. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes on our Condensed Consolidated Balance Sheets. The operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” in our Condensed Consolidated Balance Sheets effective August 1, 2014, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 10 for further information on Sling TV Holding and the Exchange Agreement. | Redeemable Noncontrolling Interests Sling TV. On May 2, 2014, DISH Network contributed its equity interest in Sling TV Holding L.L.C. (“Sling TV Holding,” formerly known as DISH Digital Holding L.L.C.) to us. As a result, all operating activities of Sling TV Holding are included in our financial results beginning May 2, 2014. Effective August 1, 2014, EchoStar Corporation (“EchoStar”) and Sling TV Holding entered into an exchange agreement (the “Exchange Agreement”) pursuant to which, among other things, Sling TV Holding distributed certain assets to EchoStar and EchoStar reduced its interest in Sling TV Holding to a ten percent non-voting interest. EchoStar’s ten percent non-voting interest is redeemable contingent on a certain performance goal being achieved by Sling TV Holding. In addition, subject to certain conditions, the interest is redeemable at fair value within sixty days following the fifth anniversary of the Exchange Agreement. This interest is considered temporary equity and is recorded as “Redeemable noncontrolling interests” in the mezzanine section of our Consolidated Balance Sheets. EchoStar’s redeemable noncontrolling interest in Sling TV Holding was initially accounted for at fair value. The performance goal was determined to be probable during the third quarter 2015. Accordingly, the value of EchoStar’s redeemable noncontrolling interest in Sling TV Holding is adjusted each reporting period for any change in redemption value above the initial fair value (adjusted for the operating results of Sling TV Holding attributable to EchoStar subsequent to August 1, 2014), with the offset recorded in “Additional paid-in capital,” net of deferred taxes on our Consolidated Balance Sheets. The operating results of Sling TV Holding attributable to EchoStar are recorded as “Redeemable noncontrolling interests” in our Consolidated Balance Sheets effective August 1, 2014, with the offset recorded in “Net income (loss) attributable to noncontrolling interests, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss). See Note 15 for further information on Sling TV Holding and the Exchange Agreement. |
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 doubtful accounts, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of options granted under our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, 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, fair value of multi-element arrangements, capital leases, asset impairments, estimates of future cash flows used to evaluate impairments, useful lives of property, equipment and intangible assets, 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. |
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, 2016 and December 31, 2015, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) is equal to or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are estimated based on an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our long-term debt. | 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, 2015 and 2014, the carrying amount for cash and cash equivalents, trade accounts receivable (net of allowance for doubtful accounts) and current liabilities (excluding the “Current portion of long-term debt and capital lease obligations”) is equal to or approximates fair value due to their short-term nature or proximity to current market rates. See Note 4 for the fair value of our marketable investment securities. Fair values for our publicly traded debt securities are based on quoted market prices, when available. The fair values of private debt are estimated based on an analysis in which we evaluate market conditions, related securities, various public and private offerings, and other publicly available information. In performing this analysis, we make various assumptions regarding, among other things, credit spreads, and the impact of these factors on the value of the debt securities. See Note 7 for the fair value of our long-term debt. |
New Accounting Pronouncements | New Accounting Pronouncements Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers . This converged standard on revenue recognition was issued jointly with the International Accounting Standards Board to create common revenue recognition guidance for GAAP and International Financial Reporting Standards. ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance when it becomes effective. ASU 2014-09 allows for either a full retrospective or modified retrospective adoption. We are evaluating the effect that ASU 2014-09 will have on our condensed consolidated financial statements and related disclosures. We have not yet selected an adoption method nor have we determined the effect of the standard on our ongoing financial reporting. The new standard could impact revenue and cost recognition for a significant number of our contracts, as well as our business processes and information technology systems. As a result, our evaluation of the effect of the new standard will likely extend over several future periods. On July 9, 2015, the FASB approved a one year deferral on the effective date for implementation of this standard, which changed the effective date for us to January 1, 2018. Recognition and Measurement of Financial Assets and Financial Liabilities . On January 5, 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-01 will have on our condensed consolidated financial statements. Leases. On F ebruary 25, 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases , which relates to the accounting of leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. In addition, this standard requires both lessees and lessors to disclose certain key information about lease transactions. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our condensed consolidated financial statements. Compensation – Stock Compensation. On March 30, 2016, the FASB issued ASU 2016-09 (“ASU 2016-09”), Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which relates to the accounting for employee share-based payments. This standard addresses several aspects of the accounting for share-based payment award transactions, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. This standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-09 will have on our condensed consolidated financial statements. | New Accounting Pronouncements Revenue from Contracts with Customers. On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers. This converged standard on revenue recognition was issued jointly with the International Accounting Standards Board (“IASB”) to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards (“IFRS”). ASU 2014-09 provides a framework for revenue recognition that replaces most existing GAAP revenue recognition guidance when it becomes effective. ASU 2014-09 allows for either a full retrospective or modified retrospective adoption. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected an adoption method nor have we determined the effect of the standard on our ongoing financial reporting. The new standard could impact revenue and cost recognition for a significant number of our contracts, as well as our business processes and information technology systems. As a result, our evaluation of the effect of the new standard will likely extend over several future periods. On July 9, 2015, the FASB approved a one year deferral on the effective date for implementation of this standard, which changed the effective date for us to January 1, 2018. Recognition and Measurement of Financial Assets and Financial Liabilities . In January 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This amendment requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). This standard will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-01 will have on our consolidated financial statements. Leases. On F ebruary 25, 2016, the FASB issued ASU 2016-02 (“ASU 2016-02”), Leases , which is intended to improve financial reporting about leasing transactions. This standard requires a lessee to record on the balance sheet the assets and liabilities for the rights and obligations created by leases with lease terms of more than 12 months. This standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are evaluating the impact the adoption of ASU 2016-02 will have on our consolidated financial statements. |
Supplemental Data - Statement91
Supplemental Data - Statements of Cash Flows (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Supplemental Data - Statements of Cash Flows | ||
Schedule of supplemental cash flow and other non-cash data | For the Six Months Ended June 30, 2016 2015 (In thousands) Cash paid for interest $ $ Cash received for interest Cash paid for income taxes Cash paid for income taxes to DISH Network Satellites and other assets financed under capital lease obligations — | For the Years Ended December 31, 2015 2014 2013 (In thousands) Cash paid for interest $ $ $ Cash received for interest Cash paid for income taxes Cash paid for income taxes to DISH Network Satellites and other assets financed under capital lease obligations — Satellite and Tracking Stock Transaction with EchoStar: Transfer of property and equipment, net — — Investment in EchoStar and HSSC preferred tracking stock - cost method — — Transfer of liabilities and other — — Capital distribution to EchoStar, net of deferred taxes of $31,274 — — Sling TV Exchange Transaction with EchoStar: Transfer of property and equipment, net — — Transfer of investments and intangibles, net — — Capital distribution to EchoStar, net of deferred taxes of $3,542 — — Deemed distribution to EchoStar - initial fair value of redeemable noncontrolling interest, net of deferred taxes of $8,489 — — |
Marketable Investment Securit92
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
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, 2016 December 31, 2015 (In thousands) Marketable investment securities: Current marketable investment securities $ $ Restricted marketable investment securities (1) Total marketable investment securities Restricted cash and cash equivalents (1) Other investment securities: Investment in EchoStar preferred tracking stock - cost method Investment in HSSC preferred tracking stock - cost method Other investment securities - cost method Total other investment securities Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ $ (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, 2015 2014 (In thousands) Marketable investment securities: Current marketable investment securities $ $ Restricted marketable investment securities (1) Total marketable investment securities Restricted cash and cash equivalents (1) Other investment securities: Investment in EchoStar preferred tracking stock - cost method Investment in HSSC preferred tracking stock - cost method Other investment securities - cost method Total other investment securities (2) Total marketable investment securities, restricted cash and cash equivalents, and other investment securities $ $ (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. (2) Other investment securities are included in “Other noncurrent assets, net” on our Consolidated Balance Sheets. |
Schedule of components of available-for-sale investments | As of June 30, 2016 As of December 31, 2015 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 $ $ $ — $ $ $ $ $ Corporate securities — Other — — — — — Equity securities — — — — — Total $ $ $ — $ $ $ $ $ | As of December 31, 2015 2014 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 $ $ $ $ $ $ $ $ Commercial paper — — — — — — — Corporate securities Other — — — — Equity securities — — Total $ $ $ $ $ $ $ $ |
Schedule of investments measured at fair value on a recurring basis | As of June 30, 2016 December 31, 2015 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ $ $ $ — $ $ $ $ — Debt securities (including restricted): U. S. Treasury and agency securities $ $ $ — $ $ $ $ — Corporate securities — — — — Other — — — — — — Equity securities — — — — — — Total $ $ $ $ — $ $ $ $ — | As of December 31, 2015 2014 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 (In thousands) Cash equivalents (including restricted) $ $ $ $ — $ $ $ $ — Debt securities (including restricted): U. S. Treasury and agency securities $ $ $ — $ $ $ $ — Commercial paper — — — — — — Corporate securities — — — — Other — — — — Equity securities — — — — Total $ $ $ $ — $ $ $ $ — |
Inventory (Tables)93
Inventory (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Inventory | ||
Schedule of inventory | As of June 30, 2016 December 31, 2015 (In thousands) Finished goods $ $ Work-in-process and service repairs Raw materials Total inventory $ $ | As of December 31, 2015 2014 (In thousands) Finished goods $ $ Raw materials Work-in-process Total inventory $ $ |
Property and Equipment (Table94
Property and Equipment (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Property and Equipment | ||
Schedule of depreciation and amortization expense | For the Three Months For the Six Months Ended Ended June 30, Ended June 30, 2016 2015 2016 2015 (In thousands) Equipment leased to customers $ $ $ $ Satellites Buildings, furniture, fixtures, equipment and other Total depreciation and amortization $ $ $ $ | For the Years Ended December 31, 2015 2014 2013 (In thousands) Equipment leased to customers $ $ $ Satellites (1) Buildings, furniture, fixtures, equipment and other Total depreciation and amortization $ $ $ (1) Depreciation and amortization expense decreased $40 million in 2014 as a result of the Satellite and Tracking Stock Transaction. See Note 4 and Note 15 for further information. |
Schedule of pay-TV satellite fleet | Estimated Useful Life (Years)/ Degree Lease Launch Orbital Termination Satellites Date Location Date Owned: EchoStar XV July 2010 61.5 15 EchoStar XVIII (1) June 2016 61.5 15 Leased from EchoStar (2): EchoStar VII (3) February 2002 119 June 2017 EchoStar IX August 2003 121 Month to month EchoStar X (3) February 2006 110 February 2021 EchoStar XI (3) July 2008 110 September 2021 EchoStar XII (3) July 2003 61.5 September 2017 EchoStar XIV (3) March 2010 119 February 2023 EchoStar XVI (4) November 2012 61.5 January 2018 Nimiq 5 September 2009 72.7 September 2019 QuetzSat-1 September 2011 77 November 2021 Leased from Other Third Party: Anik F3 April 2007 118.7 April 2022 Ciel II December 2008 129 January 2019 (1) The EchoStar XVIII satellite was launched on June 18, 2016 and is expected to become operational at the 61.5 degree orbital location during the third quarter 2016. The EchoStar XVIII satellite is currently owned by an indirect subsidiary of DISH Network. (2) See Note 10 for further information on our Related Party Transactions with EchoStar. (3) We generally have the option to renew each lease on a year-to-year basis through the end of the useful life of the respective satellite. (4) We have the option to renew this lease for an additional five -year period. If we exercise our five-year renewal option, we have the option to renew this lease for an additional five years. |
Long-Term Debt (Tables)95
Long-Term Debt (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Long-Term Debt | ||
Schedule of carrying and fair values of the entity's debt facilities | As of June 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value (In thousands) 7 1/8% Senior Notes due 2016 (1) $ — $ — $ $ 4 5/8% Senior Notes due 2017 4 1/4% Senior Notes due 2018 7 7/8% Senior Notes due 2019 5 1/8% Senior Notes due 2020 6 3/4% Senior Notes due 2021 5 7/8% Senior Notes due 2022 5 % Senior Notes due 2023 5 7/8% Senior Notes due 2024 7 3/4% Senior Notes due 2026 — — Other notes payable Subtotal $ $ Unamortized deferred financing costs and debt discounts, net Capital lease obligations (2) Total long-term debt and capital lease obligations (including current portion) $ $ (1) On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016. (2) Disclosure regarding fair value of capital leases is not required. | As of December 31, 2015 2014 Carrying Value Fair Value Carrying Value Fair Value (In thousands) 7 3/4% Senior Notes due 2015 (1) $ — $ — $ $ 7 1/8% Senior Notes due 2016 (2) 4 5/8% Senior Notes due 2017 4 1/4% Senior Notes due 2018 7 7/8% Senior Notes due 2019 5 1/8% Senior Notes due 2020 6 3/4% Senior Notes due 2021 5 7/8% Senior Notes due 2022 5 % Senior Notes due 2023 5 7/8% Senior Notes due 2024 Other notes payable Subtotal $ $ Unamortized deferred financing costs and debt discounts, net Capital lease obligations (3) Total long-term debt and capital lease obligations (including current portion) $ $ (1) On June 1, 2015, we redeemed the principal balance of our 7 3/4% Senior Notes due 2015. (2) On February 1, 2016, we redeemed the principal balance of our 7 1/8% Senior Notes due 2016. (3) Disclosure regarding fair value of capital leases is not required. |
Related Party Transactions (T96
Related Party Transactions (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Related Party Transactions | ||
Schedule of transactions with NagraStar | For the Three Months Ended For the Six Months Ended June 30, June 30, 2016 2015 2016 2015 (In thousands) Purchases (including fees): Purchases from NagraStar $ $ $ $ As of June 30, 2016 December 31, 2015 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ $ Commitments to NagraStar $ $ | For the Years Ended December 31, 2015 2014 2013 (In thousands) Purchases (including fees): Purchases from NagraStar $ $ $ As of December 31, 2015 2014 (In thousands) Amounts Payable and Commitments: Amounts payable to NagraStar $ $ Commitments to NagraStar $ $ |
Organization and Business Act97
Organization and Business Activities (Details) - item item in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Organization and Business Activities | ||
Number of subscribers | 13,593 | 13,897 |
Supplemental Data - Statement98
Supplemental Data - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Data - Statements of Cash Flows | |||||
Cash paid for interest | $ 413,342 | $ 437,969 | $ 852,679 | $ 832,654 | $ 875,006 |
Cash received for interest | 781 | 4,945 | 5,606 | 34,534 | 36,242 |
Cash paid for income taxes | 11,338 | 1,487 | 2,632 | 18,186 | 1,351 |
Cash paid for income taxes to DISH Network | 329,230 | $ 278,970 | $ 558,220 | 279,234 | 433,120 |
Satellites and other assets financed under capital lease obligations | $ 988 | $ 3,462 | $ 1,070 |
Marketable Investment Securit99
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Current marketable investment securities | $ 4,720 | $ 141,335 | $ 1,401,145 |
Restricted marketable investment securities(1) | 82,099 | 82,280 | 76,970 |
Total marketable investment securities | 86,819 | 223,615 | 1,478,115 |
Restricted cash and cash equivalents (1) | 275 | 94 | 10,014 |
Other investment securities - cost method | 324,371 | 327,250 | |
Total marketable investment securities, restricted cash and cash equivalents | $ 411,465 | $ 550,959 | 1,815,379 |
Maximum maturities of commercial paper | 365 days | 365 days | |
Maximum maturities of corporate securities | 18 months | 18 months | |
EchoStar | |||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Other investment securities - cost method | $ 228,795 | $ 228,795 | 228,795 |
HSSC | |||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Other investment securities - cost method | 87,409 | 87,409 | 87,409 |
Other investment securities Member | |||
Marketable Investment Securities, Restricted Cash and Cash Equivalents and Other Investment Securities: | |||
Other investment securities - cost method | $ 8,167 | $ 11,046 | $ 11,046 |
Marketable Investment Securi100
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Investment in Tracking Stock (Details) - Satellite and Tracking Stock Transaction $ in Thousands | Feb. 20, 2014USD ($)shares | Feb. 20, 2014USD ($)itemshares | Dec. 31, 2014USD ($) |
Other investment securities: | |||
Percentage of economic interest in the Hughes Retail Group | 80.00% | 80.00% | |
EchoStar and HSSC | |||
Other investment securities: | |||
Number of owned satellites transferred and leased back | item | 5 | ||
Liabilities Transferred | $ 59,000 | $ 59,000 | |
Cash in exchange for shares of series of preferred tracking stock issued | 11,000 | 11,000 | |
Capital transaction | 356,000 | 356,000 | |
Capital transaction recorded in additional paid-in capital | 51,000 | $ 51,000 | |
Capital distribution to EchoStar, net of deferred taxes | $ 51,000 | ||
Tracking stock prohibited transfer period | 1 year | ||
EchoStar | |||
Other investment securities: | |||
Liabilities Transferred | $ 44,540 | ||
Preferred tracking stock issued by related party | shares | 6,290,499 | 6,290,499 | |
Historical cost of tracking stock | $ 229,000 | $ 229,000 | |
HSSC | |||
Other investment securities: | |||
Preferred tracking stock issued by related party | shares | 81.128 | 81.128 | |
Historical cost of tracking stock | $ 87,000 | $ 87,000 |
Marketable Investment Securi101
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Unrealized Gains (Losses) On Marketable Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accumulated net unrealized gains (losses) | |||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | $ 123 | $ 19,728 | $ 43,196 |
Accumulated net unrealized gains, net of tax, in accumulated other comprehensive income (loss) | 1,000 | 12,000 | 28,000 |
Components of available-for-sale investments | |||
Debt securities | 4,720 | 141,335 | 1,401,145 |
Total marketable investment securities | 86,819 | 223,615 | 1,478,115 |
Unrealized Gains (Losses) on Marketable Investment Securities | |||
Unrealized Gains | 123 | 20,039 | 43,352 |
Unrealized Losses | (311) | (156) | |
Unrealized Gains Losses, Net | 123 | 19,728 | 43,196 |
Contractual maturities of restricted and non-restricted marketable investment securities | |||
Debt securities with contractual maturities within one year | 69,000 | 127,000 | |
Debt securities with contractual maturities extending longer than one year through and including five years | 18,000 | 63,000 | |
U.S. Treasury and agency securities | |||
Accumulated net unrealized gains (losses) | |||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | 118 | (133) | (4) |
Components of available-for-sale investments | |||
Debt securities | 82,290 | 82,124 | 58,254 |
Unrealized Gains (Losses) on Marketable Investment Securities | |||
Unrealized Gains | 118 | 2 | 7 |
Unrealized Losses | (135) | (11) | |
Unrealized Gains Losses, Net | 118 | (133) | (4) |
Corporate securities | |||
Accumulated net unrealized gains (losses) | |||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | 5 | (171) | 5,463 |
Components of available-for-sale investments | |||
Debt securities | 4,529 | 90,838 | 1,247,403 |
Unrealized Gains (Losses) on Marketable Investment Securities | |||
Unrealized Gains | 5 | 3 | 5,608 |
Unrealized Losses | (174) | (145) | |
Unrealized Gains Losses, Net | $ 5 | (171) | 5,463 |
Other (including restricted) | |||
Accumulated net unrealized gains (losses) | |||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | (2) | ||
Components of available-for-sale investments | |||
Debt securities | 17,382 | 55,788 | |
Unrealized Gains (Losses) on Marketable Investment Securities | |||
Unrealized Losses | (2) | ||
Unrealized Gains Losses, Net | (2) | ||
Equity Securities | |||
Accumulated net unrealized gains (losses) | |||
Accumulated net unrealized gains, before tax, in accumulated other comprehensive income (loss) | 20,034 | 37,737 | |
Components of available-for-sale investments | |||
Equity securities | 33,271 | 50,974 | |
Unrealized Gains (Losses) on Marketable Investment Securities | |||
Unrealized Gains | 20,034 | 37,737 | |
Unrealized Gains Losses, Net | $ 20,034 | $ 37,737 |
Marketable Investment Securi102
Marketable Investment Securities, Restricted Cash and Cash Equivalents, and Other Investment Securities - Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value of marketable securities | |||
Debt securities | $ 4,720 | $ 141,335 | $ 1,401,145 |
Total marketable investment securities | 86,819 | 223,615 | 1,478,115 |
Transfer of investments from Level 1 to Level 2 | 0 | 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 | 82,290 | 82,124 | 58,254 |
Corporate securities | |||
Fair value of marketable securities | |||
Debt securities | 4,529 | 90,838 | 1,247,403 |
Other (including restricted) | |||
Fair value of marketable securities | |||
Debt securities | 17,382 | 55,788 | |
Equity Securities | |||
Fair value of marketable securities | |||
Equity securities | 33,271 | 50,974 | |
Fair value measurements on recurring basis | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 139,869 | 307,406 | 6,605,274 |
Total marketable investment securities | 86,819 | 223,615 | 1,478,115 |
Fair value measurements on recurring basis | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | 82,290 | 82,124 | 58,254 |
Fair value measurements on recurring basis | Corporate securities | |||
Fair value of marketable securities | |||
Debt securities | 4,529 | 90,838 | 1,247,403 |
Fair value measurements on recurring basis | Other (including restricted) | |||
Fair value of marketable securities | |||
Debt securities | 17,382 | ||
Fair value measurements on recurring basis | Equity Securities | |||
Fair value of marketable securities | |||
Equity securities | 33,271 | 50,974 | |
Fair value measurements on recurring basis | Level 1 | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 115,036 | 25,814 | 258,281 |
Total marketable investment securities | 77,560 | 110,599 | 93,684 |
Fair value measurements on recurring basis | Level 1 | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | 77,560 | 77,328 | 42,710 |
Fair value measurements on recurring basis | Level 1 | Equity Securities | |||
Fair value of marketable securities | |||
Equity securities | 33,271 | 50,974 | |
Fair value measurements on recurring basis | Level 2 | |||
Fair value of marketable securities | |||
Cash equivalents (including restricted) | 24,833 | 281,592 | 6,346,993 |
Total marketable investment securities | 9,259 | 113,016 | 1,384,431 |
Fair value measurements on recurring basis | Level 2 | U.S. Treasury and agency securities | |||
Fair value of marketable securities | |||
Debt securities | 4,730 | 4,796 | 15,544 |
Fair value measurements on recurring basis | Level 2 | Corporate securities | |||
Fair value of marketable securities | |||
Debt securities | $ 4,529 | 90,838 | $ 1,247,403 |
Fair value measurements on recurring basis | Level 2 | Other (including restricted) | |||
Fair value of marketable securities | |||
Debt securities | $ 17,382 |
Inventory (Details)103
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory | |||
Finished goods | $ 381,328 | $ 304,812 | $ 252,101 |
Work-in-process and service repairs | 83,073 | 74,768 | 82,350 |
Raw materials | 10,753 | 10,673 | 159,095 |
Total Inventory | $ 475,154 | $ 390,253 | $ 493,546 |
Property and Equipment (Deta104
Property and Equipment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)item | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | $ 228,963 | $ 237,248 | $ 441,217 | $ 461,143 | $ 907,687 | $ 956,101 | $ 905,987 |
Equipment leased to customers | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | 197,352 | 206,314 | 378,003 | 398,067 | 783,310 | 810,945 | 739,266 |
Satellites | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | 15,262 | 15,261 | 30,523 | 30,522 | $ 61,045 | 68,984 | 108,682 |
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 12 | ||||||
Owned Satellites | 1 | ||||||
Number of satellites utilized under operating lease | 9 | ||||||
Number of satellites utilized under capital lease | 2 | ||||||
Buildings, furniture, fixtures, equipment and other | |||||||
Depreciation and amortization expense | |||||||
Depreciation and amortization expense | $ | $ 16,349 | $ 15,673 | $ 32,691 | $ 32,554 | $ 63,332 | $ 76,172 | $ 58,039 |
Pay-TV Satellites | |||||||
Depreciation and amortization expense | |||||||
Number of satellites utilized in geostationary orbit approximately 22,300 miles above the equator | 12 | ||||||
Owned Satellites | 1 | 1 | |||||
Number of satellites utilized under operating lease | 9 | ||||||
Number of satellites utilized under capital lease | 2 |
Property and Equipment - Pay105
Property and Equipment - Pay TV Satellites (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property and Equipment | |||||||
Depreciation and amortization | $ 228,963 | $ 237,248 | $ 441,217 | $ 461,143 | $ 907,687 | $ 956,101 | $ 905,987 |
FCC authorizations | $ 635,794 | $ 635,794 | $ 635,794 | $ 635,794 | |||
EchoStar XV | |||||||
Property and Equipment | |||||||
Depreciable life of assets | 15 years | 15 years | |||||
EchoStar XVIII | |||||||
Property and Equipment | |||||||
Depreciable life of assets | 15 years | 15 years | |||||
EchoStar XVI | |||||||
Property and Equipment | |||||||
Option to renew the lease for an additional period | 5 years | 6 years | |||||
Another option to renew the lease if renewal option exercised | 5 years | 5 years |
Long-Term Debt - Long term debt
Long-Term Debt - Long term debt (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 13, 2016 | Jun. 24, 2013 | May 28, 2013 | Dec. 31, 2012 | Jun. 26, 2012 | May 16, 2012 | May 05, 2011 | |
Long-term debt | ||||||||||||
Carrying Value | $ 14,113,686 | $ 13,613,686 | $ 14,264,702 | |||||||||
Fair Value | 14,247,344 | 13,249,506 | 14,830,997 | |||||||||
Unamortized deferred financing costs and debt discount, net | (44,779) | (41,563) | (51,473) | |||||||||
Capital lease obligations (3) | 151,891 | 166,492 | 194,669 | |||||||||
Total long-term debt and capital lease obligations (including current portion) | 14,220,798 | 13,738,615 | 14,407,898 | |||||||||
Principal balance of debt redeemed | $ 1,500,000 | $ 650,001 | 650,001 | 1,099,999 | $ 500,000 | |||||||
7 1/8% Senior Notes due 2016 | ||||||||||||
Long-term debt | ||||||||||||
Carrying Value | 1,500,000 | 1,500,000 | ||||||||||
Fair Value | $ 1,506,750 | $ 1,580,625 | ||||||||||
Interest rate (as a percent) | 7.125% | 7.125% | 7.125% | |||||||||
4 5/8% Senior Notes due 2017 | ||||||||||||
Long-term debt | ||||||||||||
Carrying Value | $ 900,000 | $ 900,000 | $ 900,000 | |||||||||
Fair Value | $ 914,211 | $ 922,770 | $ 933,750 | |||||||||
Interest rate (as a percent) | 4.625% | 4.625% | 4.625% | |||||||||
4 1/4% Senior Notes due 2018 | ||||||||||||
Long-term debt | ||||||||||||
Carrying Value | $ 1,200,000 | $ 1,200,000 | $ 1,200,000 | |||||||||
Fair Value | $ 1,235,172 | $ 1,207,560 | $ 1,245,600 | |||||||||
Interest rate (as a percent) | 4.25% | 4.25% | 4.25% | |||||||||
7 7/8% Senior Notes due 2019 | ||||||||||||
Long-term debt | ||||||||||||
Carrying Value | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | |||||||||
Fair Value | $ 1,550,500 | $ 1,525,440 | $ 1,589,700 | |||||||||
Interest rate (as a percent) | 7.875% | 7.875% | 7.875% | |||||||||
5 1/8% Senior Notes due 2020 | ||||||||||||
Long-term debt | ||||||||||||
Carrying Value | $ 1,100,000 | $ 1,100,000 | $ 1,100,000 | |||||||||
Fair Value | $ 1,133,000 | $ 1,100,000 | $ 1,100,000 | |||||||||
Interest rate (as a percent) | 5.125% | 5.125% | 5.125% | |||||||||
6 3/4% Senior Notes due 2021 | ||||||||||||
Long-term debt | ||||||||||||
Carrying Value | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||||
Fair Value | $ 2,086,240 | $ 2,021,020 | $ 2,157,500 | |||||||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | ||||||
5 7/8% Senior Notes due 2022 | ||||||||||||
Long-term debt | ||||||||||||
Carrying Value | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||||
Fair Value | $ 1,962,500 | $ 1,889,780 | $ 2,055,000 | |||||||||
Interest rate (as a percent) | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | |||||||
5% Senior Notes due 2023 | ||||||||||||
Long-term debt | ||||||||||||
Carrying Value | $ 1,500,000 | $ 1,500,000 | $ 1,500,000 | |||||||||
Fair Value | $ 1,376,775 | $ 1,297,500 | $ 1,470,000 | |||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||||||
5 7/8% Senior Notes due 2024 | ||||||||||||
Long-term debt | ||||||||||||
Carrying Value | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||||
Fair Value | $ 1,909,000 | $ 1,765,000 | $ 2,019,800 | |||||||||
Interest rate (as a percent) | 5.875% | 5.875% | 5.875% | |||||||||
7 3/4% Senior Notes due 2026 | ||||||||||||
Long-term debt | ||||||||||||
Carrying Value | $ 2,000,000 | $ 2,000,000 | ||||||||||
Fair Value | $ 2,066,260 | |||||||||||
Interest rate (as a percent) | 7.75% | 7.75% | ||||||||||
Other notes payable | ||||||||||||
Long-term debt | ||||||||||||
Carrying Value | $ 13,686 | $ 13,686 | $ 14,701 | |||||||||
Fair Value | $ 13,686 | $ 13,686 | $ 14,701 |
Long-Term Debt (Details)107
Long-Term Debt (Details) - USD ($) $ in Thousands | Jun. 24, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | May 28, 2013 | Dec. 31, 2012 | Jun. 26, 2012 | May 16, 2012 | May 05, 2011 |
Long-term debt | |||||||||||||
Principal balance of debt redeemed | $ 1,500,000 | $ 650,001 | $ 650,001 | $ 1,099,999 | $ 500,000 | ||||||||
Percentage of principal amount at which notes may be required to be repurchased in event of change of control | 101.00% | 101.00% | 101.00% | ||||||||||
Premiums, interest expense and deferred financing costs, as applicable | $ 191,751 | $ 219,328 | $ 383,088 | $ 441,338 | $ 862,231 | $ 834,856 | $ 878,550 | ||||||
7 1/8% Senior Notes due 2016 | |||||||||||||
Long-term debt | |||||||||||||
Interest rate (as a percent) | 7.125% | 7.125% | 7.125% | 7.125% | |||||||||
4 5/8% Senior Notes due 2017 | |||||||||||||
Long-term debt | |||||||||||||
Interest rate (as a percent) | 4.625% | 4.625% | 4.625% | 4.625% | |||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||
4 1/4% Senior Notes due 2018 | |||||||||||||
Long-term debt | |||||||||||||
Interest rate (as a percent) | 4.25% | 4.25% | 4.25% | 4.25% | |||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||
7 7/8% Senior Notes due 2019 | |||||||||||||
Long-term debt | |||||||||||||
Interest rate (as a percent) | 7.875% | 7.875% | 7.875% | 7.875% | |||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||
5 1/8% Senior Notes due 2020 | |||||||||||||
Long-term debt | |||||||||||||
Interest rate (as a percent) | 5.125% | 5.125% | 5.125% | 5.125% | |||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||
6 3/4% Senior Notes due 2021 | |||||||||||||
Long-term debt | |||||||||||||
Interest rate (as a percent) | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | 6.75% | ||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||
5 7/8% Senior Notes due 2022 | |||||||||||||
Long-term debt | |||||||||||||
Interest rate (as a percent) | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | 5.875% | |||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||
5% Senior Notes due 2023 | |||||||||||||
Long-term debt | |||||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||
5 7/8% Senior Notes due 2024 | |||||||||||||
Long-term debt | |||||||||||||
Interest rate (as a percent) | 5.875% | 5.875% | 5.875% | 5.875% | |||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||
7 3/4% Senior Notes due 2026 | |||||||||||||
Long-term debt | |||||||||||||
Interest rate (as a percent) | 7.75% | 7.75% | 7.75% | ||||||||||
Redemption price as a percentage of principal amount | 100.00% | ||||||||||||
Maximum percentage of the aggregate principal amount of notes with net proceeds of certain equity offerings or capital contributions | 35.00% | 35.00% |
Commitments and Contingencie108
Commitments and Contingencies (Details) | Feb. 12, 2015USD ($) | Dec. 23, 2013USD ($) | May 31, 2012 | Jul. 31, 2009item | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) |
Spectrum Investments | |||||||||||
Dividend paid to DOC | $ 8,250,000,000 | $ 1,500,000,000 | $ 1,500,000,000 | $ 8,250,000,000 | $ 8,250,000,000 | $ 2,150,000,000 | |||||
Auction 1000 [Member] | |||||||||||
Spectrum Investments | |||||||||||
First phase auction threshold amount | 88,400,000,000 | ||||||||||
Percent of geographic coverage area | 90 | ||||||||||
Minimum upfront deposit from bidder in forward auction bid | 5,400,000,000 | ||||||||||
Dish Network | |||||||||||
Spectrum Investments | |||||||||||
Payment to acquire certain wireless licenses | $ 5,000,000,000 | $ 5,000,000,000 | |||||||||
Northstar Wireless or Northstar Spectrum | American III | |||||||||||
Spectrum Investments | |||||||||||
Non-controlling investments | 10,000,000,000 | 10,000,000,000 | |||||||||
Satellite transponder guarantees | |||||||||||
Spectrum Investments | |||||||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 216,000,000 | $ 216,000,000 | $ 248,000,000 | $ 248,000,000 | |||||||
Hopper litigation | Maximum | |||||||||||
Spectrum Investments | |||||||||||
Number of days to store HD primetime programs recordings | 8 days | ||||||||||
Technology Development Licensing | |||||||||||
Spectrum Investments | |||||||||||
Number of reexamination petitions pending before patent and trademark office | item | 2 | ||||||||||
Do Not Call Litigation | |||||||||||
Spectrum Investments | |||||||||||
Period of injunctive relief sought from placing any outbound telemarketing calls to market or promote its goods or services | 5 years | 5 years | |||||||||
Do Not Call Litigation | DISH Network L.L.C. | |||||||||||
Spectrum Investments | |||||||||||
Claim amount | $ 270,000,000 | $ 270,000,000 | |||||||||
Lightsquared Harbinger Capital Partners LLC | |||||||||||
Spectrum Investments | |||||||||||
Business days allowed to terminate existing agreements | 3 days | ||||||||||
Lightsquared Harbinger Capital Partners LLC | DISH Network L.L.C. | |||||||||||
Spectrum Investments | |||||||||||
Claim amount | $ 1,500,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative part 2 (Details) $ in Millions | Jul. 25, 2014item | Dec. 23, 2013USD ($) | Jun. 30, 2016USD ($)item | Dec. 31, 2015USD ($)item |
DISH Network L.L.C. | Do Not Call Litigation | ||||
Loss contingencies | ||||
Claim amount | $ 270 | $ 270 | ||
Claim amount from state plaintiff | $ 23,500 | |||
DISH Network L.L.C. | Do Not Call Litigation | Maximum | ||||
Loss contingencies | ||||
Claim amount from federal plaintiff | $ 900 | |||
LightSquared transaction shareholder derivative actions | ||||
Loss contingencies | ||||
Number of shareholders who filed lawsuits | item | 5 | 5 | ||
Number of claims asserted by Jacksonville PFPF | item | 5 | |||
LightSquared transaction shareholder derivative actions | Mr. Ergen | ||||
Loss contingencies | ||||
Number of claims asserted by Jacksonville PFPF | item | 3 | |||
LightSquared transaction shareholder derivative actions | Director Defendants | ||||
Loss contingencies | ||||
Number of claims asserted by Jacksonville PFPF | item | 1 | |||
CALIFORNIA | Do Not Call Litigation | ||||
Loss contingencies | ||||
Claim amount from state plaintiff | $ 100 | |||
CALIFORNIA | DISH Network L.L.C. | Do Not Call Litigation | ||||
Loss contingencies | ||||
Claim amount | $ 100 | |||
OHIO | Do Not Call Litigation | ||||
Loss contingencies | ||||
Claim amount from state plaintiff | 10 | |||
OHIO | DISH Network L.L.C. | Do Not Call Litigation | ||||
Loss contingencies | ||||
Claim amount | $ 10 | |||
Illinois And North Carolina [Member] | Do Not Call Litigation | ||||
Loss contingencies | ||||
Claim Amount Minimum That Would Not Raise Constitutional Concerns | $ 1,000 |
Related Party Transactions (110
Related Party Transactions (Details) - USD ($) $ in Thousands | Feb. 12, 2015 | Feb. 12, 2015 | Oct. 14, 2014 | Mar. 28, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transaction [Line Items] | |||||||||||
Dividend paid to DOC | $ 8,250,000 | $ 1,500,000 | $ 1,500,000 | $ 8,250,000 | $ 8,250,000 | $ 2,150,000 | |||||
Advertising sales | 3,709,800 | $ 3,693,872 | 7,370,465 | 7,284,576 | 14,524,510 | 14,130,607 | $ 13,559,511 | ||||
Trade accounts receivable | 821,177 | 821,177 | 822,505 | 902,186 | |||||||
Trade accounts payable | 525,688 | 525,688 | 433,349 | 388,198 | |||||||
Equipment sales and other revenue | 9,615 | 30,562 | 21,104 | 60,920 | 113,739 | 146,806 | 136,101 | ||||
Broadband, Wireless and Other Segments | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Expenses associated with services | 18,000 | 18,000 | 36,000 | 41,000 | 14,000 | 12,000 | 10,000 | ||||
Dish Network | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Dividend paid to DOC | $ 8,250,000 | $ 1,500,000 | $ 650,000 | ||||||||
Advertising sales | 0 | 2,000 | 2,000 | 6,000 | |||||||
EchoStar | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Trade accounts receivable | 18,000 | 18,000 | 23,000 | 31,000 | |||||||
Trade accounts payable | 316,000 | 316,000 | 263,000 | 236,000 | |||||||
Equipment sales and other revenue | $ 1,000 | $ 13,000 | $ 1,000 | $ 26,000 | $ 46,000 | $ 62,000 | $ 43,000 |
Related Party Transactions -111
Related Party Transactions - Narrative Part 1 (Details) $ in Thousands | Jan. 02, 2012 | Feb. 23, 2010 | Feb. 23, 2010 | May 31, 2013 | Jan. 31, 2012item | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)item |
Related Party Transaction [Line Items] | ||||||||||||
Subscriber-related expenses | $ 2,171,678 | $ 2,167,880 | $ 4,323,105 | $ 4,272,976 | $ 8,511,404 | $ 8,066,642 | $ 7,677,111 | |||||
EchoStar XV | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Minimum required notice period for termination of agreement by related party | 30 days | |||||||||||
EchoStar | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Notice period for termination of agreement | 120 days | |||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||
Subscriber-related expenses | $ 2,000 | $ 3,000 | $ 5,000 | $ 6,000 | $ 12,000 | $ 9,000 | $ 5,000 | |||||
EchoStar | Remanufactured Receiver Agreement | Minimum | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Minimum required notice period for termination of agreement by related party | 60 days | 60 days | ||||||||||
EchoStar | El Paso Lease Agreement | Dish Network | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Number of consecutive three year renewal options | item | 4 | 4 | ||||||||||
Agreement Renewal Option Term | 3 years | 3 years | ||||||||||
EchoStar | EchoStar XV | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Notice period for termination of agreement | 30 days | |||||||||||
EchoStar | DISH Remote Access Services Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Agreement term | 5 years | |||||||||||
Automatic renewal period | 1 year | 1 year | ||||||||||
Additional term of renewal option | 1 year | |||||||||||
Required notice period for termination by the reporting entity | 120 days | 120 days | ||||||||||
EchoStar | Sling Service Services Agreement | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Agreement term | 5 years | |||||||||||
Automatic renewal period | 1 year | 1 year | ||||||||||
Additional term of renewal option | 1 year | |||||||||||
Required notice period for termination by the reporting entity | 120 days | 120 days |
Related Party Transactions -112
Related Party Transactions - Narrative Part 2 (Details) $ in Thousands | Mar. 02, 2014 | Dec. 21, 2012 | Dec. 21, 2012 | Jan. 02, 2012 | Jun. 30, 2013 | May 31, 2013 | May 31, 2012 | May 31, 2010 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2014item | Mar. 31, 2013item | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2009item | Dec. 31, 2008item |
Related Party Transaction [Line Items] | |||||||||||||||||||
Satellite and transmission expenses | $ | $ 176,694 | $ 192,556 | $ 349,915 | $ 377,236 | $ 753,853 | $ 685,732 | $ 527,483 | ||||||||||||
EchoStar XVI | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Agreement Renewal Option Term | 5 years | ||||||||||||||||||
EchoStar | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Satellite and transmission expenses | $ | $ 168,000 | $ 183,000 | $ 332,000 | $ 358,000 | $ 715,000 | $ 646,000 | $ 487,000 | ||||||||||||
Notice period for termination of agreement | 120 days | ||||||||||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||||||||||
EchoStar | Certain Sports Related Programming Broadcast Agreement | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Agreement term | 10 years | ||||||||||||||||||
EchoStar | EchoStar VIII | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Notice period for termination of agreement | 30 days | 30 days | |||||||||||||||||
EchoStar | EchoStar XVI | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Agreement term from commencement of service date | 4 years | 4 years | |||||||||||||||||
Agreement Renewal Option Term | 5 years | ||||||||||||||||||
Additional term of renewal option | 5 years | ||||||||||||||||||
EchoStar | Telesat Transponder Agreement | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Agreement term | 15 years | ||||||||||||||||||
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 | 5 | |||||||||||||||||
EchoStar | 103 degree orbital location member | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Agreement term | 10 years | ||||||||||||||||||
Agreement term from commencement of service date | 10 years | ||||||||||||||||||
EchoStar | TT&C Agreement | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Required notice period for termination by the reporting entity | 60 days | ||||||||||||||||||
EchoStar | 2012 Broadcast Agreement [Member] | Minimum | |||||||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||||||
Required notice period for termination by the reporting entity | 60 days |
Related Party Transactions -113
Related Party Transactions - Narrative Part 3 (Details) $ in Thousands | Nov. 12, 2015 | Aug. 02, 2014USD ($) | May 06, 2014 | Jul. 02, 2012 | Jan. 02, 2012 | Jan. 02, 2010 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2014 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2009 | Aug. 01, 2014USD ($)item |
Related Party Transaction [Line Items] | ||||||||||||||||||
General and administrative expenses | $ 181,805 | $ 167,802 | $ 373,872 | $ 359,476 | $ 745,366 | $ 762,146 | $ 687,122 | |||||||||||
Deemed Distribution Redeemable Noncontrolling Interest Fair Value Net Of Deferred Tax | 14,011 | |||||||||||||||||
Gilbert Lease Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Additional term of renewal option | 1 year | |||||||||||||||||
XiP Encryption Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Minimum notice period for termination of agreement | 30 days | |||||||||||||||||
DISH Digital Holding LLC | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Ownership percentage | 90.00% | 90.00% | ||||||||||||||||
Voting interest (as a percent) | 100.00% | 100.00% | ||||||||||||||||
Additional paid in capital recorded due to difference between the historical cost basis of the assets transferred | $ 6,000 | |||||||||||||||||
Deemed Distribution Redeemable Noncontrolling Interest Fair Value Net Of Deferred Tax | $ 14,000 | |||||||||||||||||
EchoStar | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
General and administrative expenses | $ 25,000 | $ 23,000 | $ 47,000 | $ 43,000 | $ 92,000 | $ 101,000 | $ 69,000 | |||||||||||
Ownership percentage | 33.00% | |||||||||||||||||
Non-voting interest redeemable period from fifth anniversary of the exchange agreement | 60 days | |||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||
EchoStar | Product Support Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination by the reporting entity | 60 days | |||||||||||||||||
EchoStar | Product Support Agreement | Minimum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination by the reporting entity | 60 days | |||||||||||||||||
EchoStar | Inverness Lease Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination of agreement | 6 months | 6 months | ||||||||||||||||
EchoStar | Gilbert Lease Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||
Number of consecutive renewal options | item | 3 | |||||||||||||||||
EchoStar | DISH Online.com Services Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Term of renewal option exercised | 1 year | 1 year | ||||||||||||||||
Agreement term | 2 years | |||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||
EchoStar | DISH Online.com Services Agreement | Minimum | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination by the reporting entity | 120 days | |||||||||||||||||
EchoStar | Application Development Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination of agreement | 90 days | |||||||||||||||||
Minimum notice period for termination of agreement | 90 days | |||||||||||||||||
Automatic renewal period | 1 year | |||||||||||||||||
EchoStar | XiP Encryption Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Required notice period for termination by the reporting entity | 30 days | |||||||||||||||||
Required notice period for termination of agreement | 180 days | 180 days | ||||||||||||||||
Additional term of renewal option | 1 year | |||||||||||||||||
Term of renewal option exercised | 1 year | |||||||||||||||||
Notice period required to extend the agreement term | 180 days | 180 days | ||||||||||||||||
Agreement Renewal Option Term | 1 year | |||||||||||||||||
EchoStar | DISH Digital Holding LLC | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Ownership percentage | 10.00% | |||||||||||||||||
Dish Network [Member] | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Ownership percentage | 67.00% | |||||||||||||||||
Dish Network | EchoStar | Professional Services Agreement | ||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||
Minimum notice period for termination of agreement | 60 days | 60 days | ||||||||||||||||
Minimum notice period for termination of a specific service | 30 days | 30 days | ||||||||||||||||
Agreement term | 1 year | 1 year | ||||||||||||||||
Automatic renewal period | 1 year | 1 year |
Related Party Transactions -114
Related Party Transactions - Narrative Part 4 (Details) $ in Thousands | Jan. 02, 2012 | Apr. 29, 2011USD ($)iteminstallment | Dec. 31, 2011USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2011USD ($) |
Related Party Transaction [Line Items] | |||||||||||||
Cost of sales - equipment, services and other | $ 13,116 | $ 23,804 | $ 25,103 | $ 54,299 | $ 91,653 | $ 106,037 | $ 85,627 | ||||||
Dish Network | TiVo v. Dish Network and EchoStar Corporation | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Settlement amount | $ 500,000 | ||||||||||||
Initial settlement amount paid | 300,000 | ||||||||||||
Aggregate of six annual installment amounts between 2012 and 2017 | $ 200,000 | ||||||||||||
Estimated percentage of annual future payments payable by the company | 95.00% | ||||||||||||
Litigation settlement number of annual installments | installment | 6 | ||||||||||||
Contribution from related party | $ 10,000 | ||||||||||||
Receiver Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Additional term of renewal option | 1 year | ||||||||||||
gTLD Agreement [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Amount paid by related party transaction | $ 1,000 | $ 1,000 | |||||||||||
EchoStar | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Agreement Renewal Option Term | 1 year | ||||||||||||
EchoStar | TiVo v. Dish Network and EchoStar Corporation | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Settlement amount | (500,000) | ||||||||||||
Initial settlement amount paid | 300,000 | ||||||||||||
Aggregate of six annual installment amounts between 2012 and 2017 | $ 200,000 | ||||||||||||
Litigation settlement number of annual installments | item | 6 | ||||||||||||
Contribution from related party | $ 10,000 | ||||||||||||
EchoStar | Receiver Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Minimum notice period for termination of agreement | 60 days | ||||||||||||
Purchased set-top boxes and other equipment from EchoStar | $ 183,000 | $ 193,000 | $ 430,000 | $ 416,000 | $ 753,000 | $ 1,114,000 | $ 1,242,000 | ||||||
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 -115
Related Party Transactions - Narrative Part 5 (Details) - USD ($) $ in Thousands | Feb. 20, 2014 | Feb. 20, 2014 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Satellite and Tracking Stock Transaction | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of economic interest in the Hughes Retail Group | 80.00% | 80.00% | ||||||||
EchoStar | Satellite and Tracking Stock Transaction | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Liabilities Transferred | $ 44,540 | |||||||||
Related Party Transactions Historical Cost of Tracking Stock | $ 229,000 | $ 229,000 | ||||||||
NagraStar | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Purchases from NagraStar | $ 18,782 | $ 24,524 | $ 37,884 | $ 47,022 | $ 89,195 | 84,636 | $ 91,712 | |||
Amounts payable to NagraStar | $ 19,362 | 18,311 | 19,362 | 18,311 | 19,362 | 19,362 | 14,819 | |||
Commitments to NagraStar | 1,532 | $ 844 | $ 1,532 | $ 844 | $ 1,532 | $ 1,532 | $ 12,368 | |||
EchoStar and HSSC | Satellite and Tracking Stock Transaction | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Liabilities Transferred | 59,000 | 59,000 | ||||||||
Cash in exchange for shares of series of preferred tracking stock issued | 11,000 | 11,000 | ||||||||
Capital transaction | 356,000 | 356,000 | ||||||||
Cash in Exchange of Shares Issued | 11,000 | 11,000 | ||||||||
Capital Distribution to Related Party in Connection Purchase of Strategic Investments | $ 51,000 | 51,000 | ||||||||
Tracking stock prohibited transfer period | 1 year | |||||||||
HSSC | Satellite and Tracking Stock Transaction | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Related Party Transactions Historical Cost of Tracking Stock | $ 87,000 | $ 87,000 | ||||||||
PMC | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Contribution from related party | $ 5,000 | |||||||||
DISH Investors | EchoStar and HSSC | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Tracking stock prohibited transfer period | 1 year |