Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | ||
Jun. 30, 2014 | Aug. 01, 2014 | Aug. 01, 2014 | |
Class A common stock | Class B common stock | ||
Entity Registrant Name | 'EchoStar CORP | ' | ' |
Entity Central Index Key | '0001415404 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 43,601,705 | 47,687,039 |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $708,257 | $634,119 |
Marketable investment securities | 980,303 | 986,533 |
Trade accounts receivable, net of allowance for doubtful accounts of $14,766 and $13,237, respectively | 173,813 | 159,292 |
Trade accounts receivable - DISH Network, net of allowance for doubtful accounts of zero | 318,351 | 355,135 |
Inventory | 63,958 | 66,084 |
Prepaid expenses | 57,506 | 55,400 |
Deferred tax assets | 69,603 | 69,633 |
Other current assets | 11,255 | 29,930 |
Total current assets | 2,383,046 | 2,356,126 |
Non current Assets: | ' | ' |
Restricted cash and marketable investment securities | 19,179 | 16,137 |
Property and equipment, net of accumulated depreciation of $2,703,563 and $2,499,889, respectively | 3,027,697 | 2,546,377 |
Regulatory authorizations, net | 584,168 | 583,900 |
Goodwill | 504,173 | 504,173 |
Other intangible assets, net | 218,819 | 262,039 |
Other investments | 159,600 | 169,771 |
Other receivable - DISH Network | 90,356 | 89,811 |
Other noncurrent assets, net | 185,100 | 173,629 |
Total noncurrent assets | 4,789,092 | 4,345,837 |
Total assets | 7,172,138 | 6,701,963 |
Current Liabilities: | ' | ' |
Trade accounts payable | 211,334 | 201,416 |
Trade accounts payable - DISH Network | 19,789 | 55,743 |
Current portion of long-term debt and capital lease obligations | 51,080 | 69,791 |
Deferred revenue and prepayments | 67,189 | 57,592 |
Accrued compensation | 31,601 | 30,940 |
Accrued royalties | 28,290 | 24,010 |
Accrued expenses and other | 113,892 | 118,953 |
Total current liabilities | 523,175 | 558,445 |
Noncurrent Liabilities: | ' | ' |
Long-term debt and capital lease obligations, net of current portion | 2,339,338 | 2,352,597 |
Deferred tax liabilities | 640,851 | 488,206 |
Other noncurrent liabilities | 110,111 | 76,484 |
Total noncurrent liabilities | 3,090,300 | 2,917,287 |
Total liabilities | 3,613,475 | 3,475,732 |
Commitments and Contingencies (Note 14) | ' | ' |
Stockholders' Equity: | ' | ' |
Additional paid-in capital | 3,700,437 | 3,502,005 |
Accumulated other comprehensive loss | -9,726 | -14,655 |
Accumulated deficit | -129,055 | -171,914 |
Treasury stock, at cost | -98,162 | -98,162 |
Total Echo Star stockholders' equity | 3,463,597 | 3,217,370 |
Noncontrolling interest in HSS Tracking Stock | 85,228 | ' |
Other noncontrolling interests | 9,838 | 8,861 |
Total stockholders' equity | 3,558,663 | 3,226,231 |
Total liabilities and stockholders' equity | 7,172,138 | 6,701,963 |
Preferred Stock | ' | ' |
Stockholders' Equity: | ' | ' |
Preferred stock | ' | ' |
Hughes Retail Preferred Tracking Stock | ' | ' |
Stockholders' Equity: | ' | ' |
Preferred stock | 6 | ' |
Class A common stock | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock | 49 | 48 |
Class B common stock | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock | 48 | 48 |
Class C common stock | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock | ' | ' |
Class D common stock | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock | ' | ' |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Current Assets: | ' | ' |
Allowance for doubtful accounts on trade accounts receivable (in dollars) | $14,766 | $13,237 |
Allowance for doubtful accounts on trade accounts receivable - DISH Network (in dollars) | 0 | 0 |
Property and equipment, accumulated depreciation (in dollars) | $2,703,563 | $2,499,889 |
Preferred Stock | ' | ' |
Stockholders' Equity: | ' | ' |
Preferred Stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Hughes Retail Preferred Tracking Stock | ' | ' |
Stockholders' Equity: | ' | ' |
Preferred Stock, par value (in dollars per share) | $0.00 | ' |
Preferred stock, shares authorized (in shares) | 13,000,000 | ' |
Preferred stock, shares issued (in shares) | 6,290,499 | 0 |
Preferred stock, shares outstanding (in shares) | 6,290,499 | 0 |
Common Stock | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | ' |
Common stock, shares authorized (in shares) | 4,000,000,000 | ' |
Class A common stock | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 1,600,000,000 | 1,600,000,000 |
Common stock, shares issued (in shares) | 49,094,677 | 48,370,956 |
Common stock, shares outstanding (in shares) | 43,562,359 | 42,838,638 |
Class B common stock | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 47,687,039 | 47,687,039 |
Common stock, shares outstanding (in shares) | 47,687,039 | 47,687,039 |
Class C common stock | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Class D common stock | ' | ' |
Stockholders' Equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenue: | ' | ' | ' | ' |
Equipment revenue - DISH Network | $302,734 | $333,993 | $608,416 | $642,868 |
Equipment revenue - other | 95,033 | 90,875 | 163,963 | 192,965 |
Services and other revenue - DISH Network | 209,053 | 154,063 | 393,617 | 293,988 |
Services and other revenue - other | 273,008 | 251,072 | 539,855 | 495,636 |
Total revenue | 879,828 | 830,003 | 1,705,851 | 1,625,457 |
Costs and Expenses: | ' | ' | ' | ' |
Cost of sales - equipment (exclusive of depreciation and amortization) | 337,376 | 365,037 | 658,046 | 718,892 |
Cost of sales - services and other (exclusive of depreciation and amortization) | 204,269 | 189,330 | 414,362 | 368,624 |
Selling, general and administrative expenses | 90,492 | 90,386 | 178,124 | 184,562 |
Research and development expenses | 14,574 | 16,354 | 29,156 | 33,848 |
Depreciation and amortization | 140,647 | 128,144 | 273,873 | 254,843 |
Impairment of long-lived asset | ' | 34,664 | ' | 34,664 |
Total costs and expenses | 787,358 | 823,915 | 1,553,561 | 1,595,433 |
Operating income | 92,470 | 6,088 | 152,290 | 30,024 |
Other Income (Expense): | ' | ' | ' | ' |
Interest income | 2,147 | 1,982 | 4,745 | 3,959 |
Interest expense net of amounts capitalized | -44,687 | -48,672 | -90,731 | -97,772 |
Realized gains on marketable investment securities and other investments (includes reclassification of realized gains on available-for-sale ("AFS") securities out of accumulated other comprehensive loss of $6, $17,968, $34 and $34,498, respectively), net | 6 | 17,967 | 34 | 37,430 |
Equity in losses of unconsolidated affiliates, net | -1,210 | -2,477 | -3,061 | -6,382 |
Other, net | -201 | -353 | 435 | 5,128 |
Total other expense, net | -43,945 | -31,553 | -88,578 | -57,637 |
Income (loss) before income taxes | 48,525 | -25,465 | 63,712 | -27,613 |
Income tax benefit (provision), net | -18,911 | 15,882 | -22,068 | 21,528 |
Net income (loss) | 29,614 | -9,583 | 41,644 | -6,085 |
Less: Net loss attributable to noncontrolling interest in HSS Tracking Stock | -1,619 | ' | -1,943 | ' |
Less: Net income attributable to other noncontrolling interests | 428 | 176 | 728 | 216 |
Net income (loss) attributable to EchoStar | 30,805 | -9,759 | 42,859 | -6,301 |
Less: Net loss attributable to Hughes Retail Preferred Tracking Stock (Note 2) | -2,989 | ' | -3,587 | ' |
Net income (loss) attributable to EchoStar common stock | 33,794 | -9,759 | 46,446 | -6,301 |
Weighted-average common shares outstanding - Class A and B common stock: | ' | ' | ' | ' |
Basic (in shares) | 91,097 | 88,179 | 90,894 | 88,681 |
Diluted (in shares) | 92,714 | 88,179 | 92,546 | 88,681 |
Earnings per share - Class A and B common stock: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.37 | ($0.11) | $0.51 | ($0.07) |
Diluted (in dollars per share) | $0.36 | ($0.11) | $0.50 | ($0.07) |
Comprehensive Income (Loss) | ' | ' | ' | ' |
Net income (loss) | 29,614 | -9,583 | 41,644 | -6,085 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments | 3,208 | -13,259 | 7,715 | -11,309 |
Unrealized gains on AFS securities and other | -3,252 | 7,135 | -2,503 | 14,664 |
Recognition of previously unrealized gains on AFS securities in net income (loss) | -6 | -17,968 | -34 | -34,498 |
Total other comprehensive income (loss), net of tax | -50 | -24,092 | 5,178 | -31,143 |
Comprehensive income (loss) | 29,564 | -33,675 | 46,822 | -37,228 |
Less: Comprehensive loss attributable to noncontrolling interest in HSS Tracking Stock | -1,619 | ' | -1,943 | ' |
Less: Comprehensive income (loss) attributable to other noncontrolling interests | 442 | -470 | 976 | -408 |
Comprehensive income (loss) attributable to EchoStar | $30,741 | ($33,205) | $47,789 | ($36,820) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' |
Recognition of previously unrealized gains on AFS securities in net income | $6 | $17,968 | $34 | $34,498 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Hughes Retail Preferred Tracking Stock | Class A and B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Treasury Stock | Noncontrolling interest in HSS Tracking Stock | Other Noncontrolling Interests |
In Thousands, unless otherwise specified | |||||||||
Beginning balance at Dec. 31, 2012 | $3,150,227 | ' | $93 | $3,394,646 | $18,752 | ($174,439) | ($98,162) | ' | $9,337 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options | 41,256 | ' | 2 | 41,254 | ' | ' | ' | ' | ' |
Employee benefits | 4,761 | ' | ' | 4,761 | ' | ' | ' | ' | ' |
Employee Stock Purchase Plan | 4,465 | ' | ' | 4,465 | ' | ' | ' | ' | ' |
Stock-based compensation | 10,052 | ' | ' | 10,052 | ' | ' | ' | ' | ' |
Other, net | 1,558 | ' | ' | 2,025 | ' | ' | ' | ' | -467 |
Net income (loss) | -6,085 | ' | ' | ' | ' | -6,301 | ' | ' | 216 |
Unrealized gains (losses) on AFS securities, net and other | -19,834 | ' | ' | ' | -19,834 | ' | ' | ' | ' |
Foreign currency translation adjustments | -11,309 | ' | ' | ' | -10,685 | ' | ' | ' | -624 |
Ending balance at Jun. 30, 2013 | 3,175,091 | ' | 95 | 3,457,203 | -11,767 | -180,740 | -98,162 | ' | 8,462 |
Beginning balance at Dec. 31, 2013 | 3,226,231 | ' | 96 | 3,502,005 | -14,655 | -171,914 | -98,162 | ' | 8,861 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of stock options | 8,265 | ' | 1 | 8,264 | ' | ' | ' | ' | ' |
Employee benefits | 10,310 | ' | ' | 10,310 | ' | ' | ' | ' | ' |
Employee Stock Purchase Plan | 6,149 | ' | ' | 6,149 | ' | ' | ' | ' | ' |
Stock-based compensation | 7,178 | ' | ' | 7,178 | ' | ' | ' | ' | ' |
Issuance of Hughes Retail Preferred Tracking Stock (Note 2) | 250,687 | 6 | ' | 163,510 | ' | ' | ' | 87,171 | ' |
Other, net | 3,021 | ' | ' | 3,021 | ' | ' | ' | ' | ' |
Net income (loss) | 41,644 | ' | ' | ' | ' | 42,859 | ' | -1,943 | 728 |
Unrealized gains (losses) on AFS securities, net and other | -2,537 | ' | ' | ' | -2,537 | ' | ' | ' | ' |
Foreign currency translation adjustments | 7,715 | ' | ' | ' | 7,466 | ' | ' | ' | 249 |
Ending balance at Jun. 30, 2014 | $3,558,663 | $6 | $97 | $3,700,437 | ($9,726) | ($129,055) | ($98,162) | $85,228 | $9,838 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flows from Operating Activities: | ' | ' |
Net income (loss) | $41,644 | ($6,085) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | ' | ' |
Depreciation and amortization | 273,873 | 254,843 |
Equity in losses of unconsolidated affiliates, net | 3,061 | 6,382 |
Realized gains on marketable investment securities and other investments, net | -34 | -37,430 |
Impairment of long-lived asset | ' | 34,664 |
Stock-based compensation | 7,178 | 10,052 |
Deferred tax provision (benefit) | 10,512 | -26,865 |
Changes in current assets and current liabilities, net | 22,947 | -43,155 |
Changes in noncurrent assets and noncurrent liabilities, net | -9,075 | -6,023 |
Other, net | 21,868 | 6,892 |
Net cash flows from operating activities | 371,974 | 193,275 |
Cash Flows from Investing Activities: | ' | ' |
Purchases of marketable investment securities | -599,677 | -557,165 |
Sales and maturities of marketable investment securities | 594,306 | 486,891 |
Purchases of property and equipment | -269,717 | -158,272 |
Changes in restricted cash and marketable investment securities | -3,042 | 7,962 |
Purchase of strategic investments | -27 | -7,295 |
Other, net | -10,376 | -3,911 |
Net cash flows from investing activities | -288,533 | -231,790 |
Cash Flows from Financing Activities: | ' | ' |
Net proceeds from Class A common stock options exercised and stock issued under the Employee Stock Purchase Plan | 14,414 | 45,721 |
Repayment of long-term debt and capital lease obligations | -36,359 | -38,707 |
Net proceeds from issuance of Tracking Stock (Note 2) | 10,104 | ' |
Other | 1,082 | 816 |
Net cash flows from financing activities | -10,759 | 7,830 |
Effect of exchange rates on cash and cash equivalents | 1,456 | -795 |
Net increase in cash and cash equivalents | 74,138 | -31,480 |
Cash and cash equivalents, beginning of period | 634,119 | 731,614 |
Cash and cash equivalents, end of period | 708,257 | 700,134 |
Supplemental Disclosure of Cash Flow Information: | ' | ' |
Cash paid for interest (including capitalized interest) | 94,195 | 98,425 |
Capitalized interest | 7,689 | 711 |
Cash paid for income taxes | 8,711 | 5,676 |
Employee benefits paid in Class A common stock | 10,310 | 4,761 |
Satellites and other assets financed under capital lease obligations | 2,138 | 1,812 |
Capitalized in-orbit incentive obligations | ' | 18,000 |
Transfer of regulatory authorization to DISH Network included in accounts receivable | ' | 23,000 |
Reduction of capital lease obligation for AMC-16 | ' | 6,694 |
Increase (decrease) in capital expenditures included in accounts payable | 4,981 | -12,576 |
Net assets transferred from DISH Network in exchange for Tracking Stock (Note 2) | $398,095 | ' |
Organization_and_Business_Acti
Organization and Business Activities | 6 Months Ended |
Jun. 30, 2014 | |
Organization and Business Activities | ' |
Organization and Business Activities | ' |
Note 1. Organization and Business Activities | |
Principal Business | |
EchoStar Corporation (together with its subsidiaries is referred to as “EchoStar,” the “Company,” “we,” “us” and/or “our”) is a holding company that was organized in October 2007 as a corporation under the laws of the State of Nevada. We are a global provider of satellite operations, video delivery solutions, digital set-top boxes, and broadband satellite technologies and services for home and office, delivering innovative network technologies, managed services, and solutions for enterprises and governments. Our Class A common stock is publicly traded on the Nasdaq Global Select Market under the symbol “SATS.” | |
We currently operate in three business segments. | |
§ EchoStar Technologies (“ETC”) — which designs, develops and distributes digital set-top boxes and related products and technology, primarily for satellite TV service providers, telecommunication companies and international cable companies. Our EchoStar Technologies segment also provides digital broadcast operations, including satellite uplinking/downlinking, transmission services, signal processing, conditional access management, and other services, primarily to DISH Network Corporation and its subsidiaries (“DISH Network”). In addition, we provide our Slingboxes directly to consumers via retail outlets and online. | |
§ Hughes — which provides satellite broadband internet access to North American consumers and broadband network services and equipment to domestic and international enterprise markets. The Hughes segment also provides managed services to large enterprises and solutions to customers for mobile satellite systems. | |
§ EchoStar Satellite Services (“ESS”) — which uses certain of our owned and leased in-orbit satellites and related licenses to provide satellite services on a full-time and occasional-use basis primarily to DISH Network and also to Dish Mexico, S. de R.L. de C.V. (“Dish Mexico”), a joint venture that we entered into in 2008, as well as to United States (“U.S.”) government service providers, state agencies, internet service providers, broadcast news organizations, programmers, and private enterprise customers. | |
In 2008, DISH Network completed its distribution to us of its digital set-top box business and certain infrastructure and other assets, including certain of their satellites, uplink and satellite transmission assets, real estate, and other assets and related liabilities (the “Spin-off”). Since the Spin-off, EchoStar and DISH Network have operated as separate publicly-traded companies. However, as a result of the Satellite and Tracking Stock Transaction, described in Note 2 below, DISH Network owns preferred tracking stock representing an aggregate 80.0% economic interest in the residential retail satellite broadband business of our Hughes segment. In addition, a substantial majority of the voting power of the shares of DISH Network and EchoStar is owned beneficially by Charles W. Ergen, our Chairman, and by certain trusts established by Mr. Ergen for the benefit of his family. |
Hughes_Retail_Preferred_Tracki
Hughes Retail Preferred Tracking Stock | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Hughes Retail Preferred Tracking Stock | ' | ||||||||||
Hughes Retail Preferred Tracking Stock | ' | ||||||||||
Note 2. Hughes Retail Preferred Tracking Stock | |||||||||||
Satellite and Tracking Stock Transaction | |||||||||||
On February 20, 2014, EchoStar entered into agreements with certain subsidiaries of DISH Network pursuant to which effective March 1, 2014, (i) EchoStar issued shares of its newly authorized Hughes Retail Preferred Tracking Stock (the “EchoStar Tracking Stock”) and Hughes Satellite Systems Corporation (“HSS”), a subsidiary of EchoStar, also issued shares of its newly authorized Hughes Retail Preferred Tracking Stock (the “HSS Tracking Stock” and together with the EchoStar Tracking Stock, the “Tracking Stock”) to DISH Network in exchange for five satellites (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI, and EchoStar XIV) (including the assumption of related in-orbit incentive obligations) and $11.4 million in cash and (ii) DISH Network began receiving certain satellite services on these five satellites from us (the “Satellite and Tracking Stock Transaction”). The Tracking Stock tracks the residential retail satellite broadband business of our Hughes segment, including certain operations, assets and liabilities attributed to such business (collectively, the “Hughes Retail Group” or “HRG”). | |||||||||||
EchoStar and HSS have adopted policy statements (the “Policy Statements”) setting forth management and allocation policies for purposes of attributing all of the business and operations of EchoStar to either the Hughes Retail Group or the “EchoStar Group,” which is defined as all other operations of EchoStar, including all existing and future businesses, other than the Hughes Retail Group. Among other things, the Policy Statements govern how assets, liabilities, revenue and expenses are attributed or allocated between HRG and the EchoStar Group. Such attributions and allocations generally do not affect the amounts reported in our consolidated financial statements, except for the attribution of stockholders’ equity and net income or loss between the holders of Tracking Stock and common stock. The Policy Statements also do not significantly affect the way that management assesses operating performance and allocates resources within our Hughes segment. | |||||||||||
See Note 9 for information about the five satellites received from DISH Network, Note 14 for information about the assumed in-orbit incentive obligations, and Note 16 for information regarding the related satellite services agreements with DISH Network. We provide unaudited attributed financial information for HRG and the EchoStar Group in an exhibit to our periodic reports on Form 10-Q and Form 10-K. Set forth below is information about certain terms of the Tracking Stock and the initial recording of the Satellite and Tracking Stock Transaction in our consolidated financial statements. | |||||||||||
Description of the Tracking Stock | |||||||||||
Tracking stock is a type of capital stock that the issuing company intends to reflect or “track” the economic performance of a particular business component within the company, rather than reflect the economic performance of the company as a whole. The Tracking Stock is intended to track the economic performance of the Hughes Retail Group. The shares of the Tracking Stock issued to DISH Network represent an aggregate 80.0% economic interest in the Hughes Retail Group (51.89% issued as EchoStar Tracking Stock and 28.11% issued as HSS Tracking Stock). In addition to the remaining 20.0% economic interest in the Hughes Retail Group, EchoStar retains all economic interest in the wholesale satellite broadband business and other businesses of EchoStar. The Hughes Retail Group is not a separate legal entity and therefore cannot own assets, issue securities or enter into legally binding agreements. Holders of the Tracking Stock have no direct claim to the assets of the Hughes Retail Group; rather, holders of the Tracking Stock are stockholders of its respective issuer (EchoStar or HSS) and are subject to all risks and liabilities of the issuer. Holders of shares of the Tracking Stock vote with holders of the outstanding shares of common stock of its respective issuer, as a single class, with respect to any and all matters presented to stockholders for their action or consideration. Each share of the Tracking Stock is entitled to one-tenth (1/10th) of one vote. The EchoStar Tracking Stock is a series of preferred stock consisting of 13,000,000 authorized shares with a par value of $0.001 per share, of which 6,290,499 shares were issued to DISH Network on March 1, 2014. The HSS Tracking Stock is a series of HSS preferred stock consisting of 300 authorized shares with a par value of $0.001 per share, of which 81.128 shares were issued to DISH Network on March 1, 2014. Following the issuance of the shares of the EchoStar Tracking Stock and the HSS Tracking Stock, DISH Network held 6.5% and 7.5% of the aggregate number of outstanding shares of EchoStar and HSS capital stock, respectively. | |||||||||||
Investor Rights Agreement | |||||||||||
In connection with the Satellite and Tracking Stock Transaction, EchoStar, HSS and DISH Network entered into an agreement (the “Investor Rights Agreement”) setting forth certain rights and obligations of the parties with respect to the Tracking Stock. Among other provisions, the Investor Rights Agreement provides: (i) certain information and consultation rights for DISH Network; (ii) certain transfer restrictions on the Tracking Stock and certain rights and obligations to offer and sell under certain circumstances (including a prohibition on transfer of the Tracking Stock until March 1, 2015), with continuing transfer restrictions (including a right of first offer in favor of EchoStar) thereafter, an obligation to sell the Tracking Stock to us in connection with a change of control of DISH Network and a right to require us to repurchase the Tracking Stock in connection with a change of control of EchoStar, in each case subject to certain terms and conditions; and (iii) certain protective covenants afforded to holders of the Tracking Stock. | |||||||||||
In addition, the Investor Rights Agreement provides that DISH Network may, on or after September 1, 2016, require EchoStar to use its commercially reasonable efforts to register some or all of the outstanding shares of the Tracking Stock under the Securities Act of 1933, subject to certain terms and conditions (including our right, upon the receipt of a demand for registration, to offer to repurchase all of the Tracking Stock). In connection with any demand for registration, DISH Network may require any outstanding shares of the HSS Tracking Stock to be exchanged for shares of the EchoStar Tracking Stock with an equivalent economic interest in the Hughes Retail Group. In the event that a registration of shares of Tracking Stock is effected, EchoStar is required to use its reasonable best efforts to amend the terms of the Tracking Stock so that the Tracking Stock will be convertible or exchangeable for shares of EchoStar Class A Common Stock with equivalent market value. | |||||||||||
Initial Recording of the Satellite and Tracking Stock Transaction | |||||||||||
EchoStar and DISH Network are entities under common control. In accordance with accounting principles that apply to transfers of assets between entities under common control, EchoStar and HSS recorded the net assets received from DISH Network in the Satellite and Tracking Stock Transaction at their historical carrying amounts as reflected in DISH Network’s consolidated financial statements as of February 28, 2014, the day prior to the effective date of the Satellite and Tracking Stock Transaction. DISH Network transferred the EchoStar I, EchoStar VII, and EchoStar X satellites to HSS and transferred the EchoStar XI and EchoStar XIV satellites to EchoStar. The historical carrying amounts of net assets transferred to EchoStar and HSS were as follows: | |||||||||||
EchoStar(1) | HSS | Total | |||||||||
(In thousands) | |||||||||||
Cash | $ | — | $ | 11,404 | $ | 11,404 | |||||
Property and equipment, net | 349,243 | 82,837 | 432,080 | ||||||||
Current liabilities | (3,479 | ) | (3,076 | ) | (6,555 | ) | |||||
Noncurrent liabilities | (30,121 | ) | (8,713 | ) | (38,834 | ) | |||||
Transferred net assets | $ | 315,643 | $ | 82,452 | $ | 398,095 | |||||
(1) All of the net assets received by EchoStar as part of the Satellite and Tracking Stock Transaction were immediately transferred to HSS and are being used by our EchoStar Satellite Services segment. | |||||||||||
The transferred net assets increased EchoStar stockholders’ equity and HSS stockholders’ equity by amounts that reflect the carrying amounts of net assets that would be distributed to holders of the Tracking Stock and common stock in a hypothetical liquidation, which would be in proportion to the relative market values (as defined in applicable agreements) of each class of stock. The amounts credited to equity were reduced by direct costs of the Tracking Stock issuance and deferred income tax liabilities arising from differences between the financial reporting carrying amounts and the tax bases of the transferred satellites. | |||||||||||
The net amounts credited to EchoStar stockholders’ equity for the EchoStar Tracking Stock (primarily additional paid-in capital) and the noncontrolling interest in the HSS Tracking Stock were as follows: | |||||||||||
EchoStar | Noncontrolling | ||||||||||
Stockholders | Interest | Total | |||||||||
(In thousands) | |||||||||||
Transferred net assets | $ | 315,643 | $ | 82,452 | $ | 398,095 | |||||
Offering costs, net of tax | (2,302 | ) | (610 | ) | (2,912 | ) | |||||
Deferred income taxes | (114,525 | ) | (29,971 | ) | (144,496 | ) | |||||
Reallocation based on relative liquidation values | (35,300 | ) | 35,300 | — | |||||||
Net increase in stockholders’ equity | $ | 163,516 | $ | 87,171 | $ | 250,687 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2014 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
Note 3. 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 U.S. (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information and notes required for complete financial statements prepared in accordance with 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, 2013. | |
Principles of Consolidation | |
We consolidate all majority owned subsidiaries, investments in entities in which we have controlling interest and variable interest entities where we are the primary beneficiary. For entities we control but do not wholly-own, we record a noncontrolling interest within stockholders’ equity for the portion of the entity’s equity attributed to the noncontrolling ownership interests. For the noncontrolling interest in the HSS Tracking Stock, we periodically attribute a portion of HSS net income or loss to the noncontrolling interest in HSS Tracking Stock with such portion equal to the economic interest (currently 28.11%) in the Hughes Retail Group represented by the HSS Tracking Stock, as determined in accordance with the Policy Statements and other documents governing the Tracking Stock. We use the equity method to account for investments in entities that we do not control but 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 the investee, the cost method is used. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | |
The preparation of financial statements in accordance with GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheets, the reported amounts of revenue and expense for each reporting period, and certain information disclosed in the notes to the Condensed Consolidated Financial Statements. Estimates are used in accounting for, among other things, amortization periods of deferred revenue and deferred subscriber acquisition costs, percentage-of-completion related to revenue recognition, allowances for doubtful accounts, allowances for sales returns and rebates, warranty obligations, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, lease classifications, asset impairments, useful lives and amortization methods of property, equipment and intangible assets, goodwill impairment testing, royalty obligations, and allocations to HRG that affect the periodic determination of net income or loss attributable to the noncontrolling interest in the HSS Tracking Stock. We base our estimates and assumptions on historical experience and on various other factors that we believe to be relevant under the circumstances. Weakened economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Due to the inherent uncertainty involved in making estimates, 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 in the period they occur or prospectively if the revised estimate affects future periods. | |
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 utilize the highest level of inputs available according to 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; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; 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. | |
Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were no transfers between levels for the six months ended June 30, 2014 or 2013. | |
As of June 30, 2014 and December 31, 2013, the carrying amount of our cash and cash equivalents, trade accounts receivable, net of allowance for doubtful accounts, accounts payable and accrued liabilities were equal to or approximated fair value due to their short-term nature or proximity to current market rates. | |
Fair values of our current marketable investment securities are based on a variety of observable market inputs. For our investments in publicly traded equity securities, fair value ordinarily is determined based on a Level 1 measurement that reflects quoted prices for identical securities in active markets. Fair values of our investments in marketable debt securities generally are based on Level 2 measurements, as the markets for debt securities are less active. Trades of identical debt securities on or near the measurement date are considered a strong indication of fair value. Matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features also may be used to determine fair value of our investments in marketable debt securities. | |
Fair values for our publicly traded long-term debt are based on quoted market prices in less active markets and are categorized as Level 2 measurements. The fair values of our privately held debt are Level 2 measurements and are estimated to approximate their carrying amounts based on the proximity of their interest rates to current market rates. See Note 11 for the fair value of our long-term debt. As of June 30, 2014 and December 31, 2013, the fair values of our orbital incentive obligations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $89.0 million and $48.4 million, respectively. We use fair value measurements from time-to-time in connection with impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies that typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. | |
New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). It outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” ASU 2014-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods and may be applied either retrospectively to prior periods or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. Management has not selected a transition method and is assessing the impact of adopting this new accounting standard on our financial statements and related disclosures. |
Earnings_per_Share
Earnings per Share | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Earnings per Share | ' | |||||||||||||
Earnings per Share | ' | |||||||||||||
Note 4. Earnings per Share | ||||||||||||||
We present basic earnings per share (“EPS”) and diluted EPS for our Class A and Class B common stock. The EchoStar Tracking Stock is a participating security that shares in our consolidated earnings and therefore, effective March 1, 2014, the issuance date of the EchoStar Tracking Stock, we apply the two-class method to calculate EPS. Under the two-class method, we allocate net income or loss attributable to EchoStar between common stock and the EchoStar Tracking Stock considering both dividends declared on each class of stock and the participation rights of each class of stock in undistributed earnings. Based on the 51.89% economic interest in the Hughes Retail Group currently outstanding as the EchoStar Tracking Stock, we allocate undistributed earnings to the EchoStar Tracking Stock based on 51.89% of the attributed net income or loss of the Hughes Retail Group. For the three and six months ended June 30, 2014, we allocated a net loss of $3.0 million and $3.6 million to the EchoStar Tracking Stock, respectively, reflecting DISH Network’s 51.89% economic interest (represented by the EchoStar Tracking Stock) in the net loss of the Hughes Retail Group for the period from the issuance of the EchoStar Tracking Stock on March 1, 2014 to June 30, 2014. Moreover, because the reported amount of “Net income (loss) attributable to EchoStar” in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) excludes DISH Network’s 28.11% economic interest (represented by the HSS Tracking Stock) in the net loss of the Hughes Retail Group (reported as a noncontrolling interest), the amount of consolidated net income or loss allocated to holders of Class A and Class B common stock effectively excludes an aggregate 80.0% interest in the attributed net loss of the Hughes Retail Group. | ||||||||||||||
Basic EPS for our Class A and Class B common stock excludes potential dilution and is computed by dividing “Net income (loss) attributable to EchoStar” by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if our common stock awards were exercised. The potential dilution from common stock awards was computed using the treasury stock method based on the average market value of our Class A common stock during the period. The calculation of our diluted weighted-average common shares outstanding excluded (i) underlying options to purchase shares of our Class A common stock, as their effect is anti-dilutive, of 0.7 million and 1.6 million shares for the three months ended June 30, 2014 and 2013, respectively, and 0.7 million and 1.4 million shares for the six months ended June 30, 2014 and 2013, respectively, and (ii) shares of our Class A common stock that are contingently issuable pursuant to our performance based stock incentive plan based upon meeting a company-specific performance measure by March 31, 2015, which was not probable of being achieved as of June 30, 2014 of 0.7 million and 0.7 million shares for the three and six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||
The following table presents basic and diluted EPS amounts for all periods and the corresponding weighted-average shares outstanding used in the calculations. | ||||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands, except per share amounts) | ||||||||||||||
Net income (loss) attributable to EchoStar | $ | 30,805 | $ | (9,759 | ) | $ | 42,859 | $ | (6,301 | ) | ||||
Net income (loss) attributable to EchoStar Tracking Stock | (2,989 | ) | — | (3,587 | ) | — | ||||||||
Net income (loss) attributable to EchoStar common stock | $ | 33,794 | $ | (9,759 | ) | $ | 46,446 | $ | (6,301 | ) | ||||
Weighted-average common shares outstanding : | ||||||||||||||
Class A and B common stock: | ||||||||||||||
Basic | 91,097 | 88,179 | 90,894 | 88,681 | ||||||||||
Dilutive impact of stock awards outstanding | 1,617 | — | 1,652 | — | ||||||||||
Diluted | 92,714 | 88,179 | 92,546 | 88,681 | ||||||||||
Earnings per share: | ||||||||||||||
Class A and B common stock: | ||||||||||||||
Basic | $ | 0.37 | $ | (0.11 | ) | $ | 0.51 | $ | (0.07 | ) | ||||
Diluted | $ | 0.36 | $ | (0.11 | ) | $ | 0.5 | $ | (0.07 | ) |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) and Related Tax Effects | 6 Months Ended |
Jun. 30, 2014 | |
Other Comprehensive Income (Loss) and Related Tax Effects | ' |
Other Comprehensive Income (Loss) and Related Tax Effects | ' |
Note 5. Other Comprehensive Income (Loss) and Related Tax Effects | |
We have not recognized any tax effects on foreign currency translation adjustments because they are not expected to result in future taxable income or deductions. We have not recognized any tax effects on unrealized gains or losses on available-for-sale securities because such gains or losses would affect the amount of existing capital loss carryforwards for which the related deferred tax asset has been fully offset by a valuation allowance. | |
Accumulated other comprehensive loss includes cumulative foreign currency translation losses of $24.6 million and $32.1 million as of June 30, 2014 and December 31, 2013, respectively. |
Investment_Securities
Investment Securities | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||
Note 6. Investment Securities | ||||||||||||||||||||
Our marketable investment securities, restricted cash and cash equivalents, and other investments consisted of the following: | ||||||||||||||||||||
As of | ||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Marketable investment securities—current: | ||||||||||||||||||||
Corporate bonds | $ | 858,451 | $ | 833,791 | ||||||||||||||||
VRDNs | 31,095 | 34,705 | ||||||||||||||||||
Strategic equity securities | 32,715 | 33,613 | ||||||||||||||||||
Other | 58,042 | 84,424 | ||||||||||||||||||
Total marketable investment securities—current | 980,303 | 986,533 | ||||||||||||||||||
Restricted marketable investment securities (1) | 10,560 | 7,965 | ||||||||||||||||||
Total | 990,863 | 994,498 | ||||||||||||||||||
Restricted cash and cash equivalents (1) | 8,619 | 8,172 | ||||||||||||||||||
Other investments—noncurrent: | ||||||||||||||||||||
Cost method | 25,977 | 25,977 | ||||||||||||||||||
Equity method | 133,623 | 143,794 | ||||||||||||||||||
Total other investments—noncurrent | 159,600 | 169,771 | ||||||||||||||||||
Total marketable investment securities, restricted cash and cash equivalents, and other investments | $ | 1,159,082 | $ | 1,172,441 | ||||||||||||||||
(1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash and marketable investment securities” in 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. | ||||||||||||||||||||
Corporate Bonds | ||||||||||||||||||||
Our corporate bond portfolio includes debt instruments issued by individual corporations, primarily in the industrial and financial services industries. | ||||||||||||||||||||
Variable Rate Demand Notes (“VRDNs”) | ||||||||||||||||||||
VRDNs are long-term floating rate bonds with embedded put options that allow the bondholder to sell the security at par plus accrued interest. All of the put options are secured by a pledged liquidity source. Our VRDN portfolio is comprised of investments in municipalities and corporations, which are backed by financial institutions or other highly rated companies that serve as the pledged liquidity source. While they are classified as marketable investment securities, the put option allows VRDNs to be liquidated generally on a same day or on a five business day settlement basis. | ||||||||||||||||||||
Strategic Equity Securities | ||||||||||||||||||||
Our strategic investment portfolio consists of investments in shares of common stock of public companies, which are highly speculative and have experienced and continue to experience volatility. The value of our investment portfolio depends on the value of such shares of common stock. | ||||||||||||||||||||
Other | ||||||||||||||||||||
Our other current marketable investment securities portfolio includes investments in various debt instruments, including government bonds. | ||||||||||||||||||||
Restricted Cash and Marketable Investment Securities | ||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, our restricted marketable investment securities, together with our restricted cash, included amounts required as collateral for our letters of credit or surety bonds. | ||||||||||||||||||||
Other Investments - Noncurrent | ||||||||||||||||||||
We have several strategic investments in certain equity securities that are accounted for using either the equity or the cost method of accounting. Our ability to realize value from our strategic investments in companies that are not publicly traded depends on the success of those companies’ businesses and their ability to obtain sufficient capital to execute their business plans. Because private markets are not as liquid as public markets, there is also increased risk that we will not be able to sell these investments, or that when we desire to sell them we will not be able to obtain fair value for them. | ||||||||||||||||||||
Unrealized Gains (Losses) on Marketable Investment Securities | ||||||||||||||||||||
The components of our available-for-sale investments are summarized in the table below. | ||||||||||||||||||||
Amortized | Unrealized | Estimated | ||||||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
Corporate bonds | $ | 858,406 | $ | 304 | $ | (259 | ) | $ | 858,451 | |||||||||||
VRDNs | 31,095 | — | — | 31,095 | ||||||||||||||||
Other (including restricted) | 68,583 | 20 | (1 | ) | 68,602 | |||||||||||||||
Equity securities - strategic | 17,904 | 14,811 | — | 32,715 | ||||||||||||||||
Total marketable investment securities | $ | 975,988 | $ | 15,135 | $ | (260 | ) | $ | 990,863 | |||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
Corporate bonds | $ | 833,888 | $ | 227 | $ | (324 | ) | $ | 833,791 | |||||||||||
VRDNs | 34,705 | — | — | 34,705 | ||||||||||||||||
Other (including restricted) | 92,876 | 14 | (501 | ) | 92,389 | |||||||||||||||
Equity securities - strategic | 15,272 | 18,341 | — | 33,613 | ||||||||||||||||
Total marketable investment securities | $ | 976,741 | $ | 18,582 | $ | (825 | ) | $ | 994,498 | |||||||||||
As of June 30, 2014, restricted and non-restricted marketable investment securities included debt securities of $756.5 million with contractual maturities of one year or less and $201.6 million with contractual maturities greater than one year. We may realize proceeds from certain investments prior to their contractual maturity as a result of our ability to sell these securities prior to their contractual maturity. | ||||||||||||||||||||
Marketable Investment Securities in a Loss Position | ||||||||||||||||||||
The following table reflects the length of time that our available-for-sale securities have been in an unrealized loss position. We do not intend to sell these securities before they recover or mature, and it is more likely than not that we will hold these securities until they recover or mature. In addition, we are not aware of any specific factors indicating that the underlying issuers of these 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 securities are primarily related to temporary market fluctuations. | ||||||||||||||||||||
As of | ||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | |||||||||||||||||
Value | Losses | Value | Losses | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Less than 12 months | $ | 477,201 | $ | (256 | ) | $ | 571,592 | $ | (825 | ) | ||||||||||
12 months or more | 12,041 | (4 | ) | — | — | |||||||||||||||
Total | $ | 489,242 | $ | (260 | ) | $ | 571,592 | $ | (825 | ) | ||||||||||
Realized Gains (Losses) on Marketable Investment Securities | ||||||||||||||||||||
We recognized minimal gains from the sales of our available-for-sale marketable investment securities for the three and six months ended June 30, 2014. For the three and six months ended June 30, 2013, we recognized gains from the sales of our available-for-sale marketable investment securities of $18.0 million and $37.4 million, respectively. We recognized minimal losses from the sales of our available-for-sale marketable investment securities for the three and six months ended June 30, 2014 and 2013. | ||||||||||||||||||||
Proceeds from sales of our available-for-sale marketable investment securities totaled $4.8 million and $5.4 million for the three and six months ended June 30, 2014, respectively, and $53.9 million and $95.3 million for the three and six months ended June 30, 2013, respectively. | ||||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Our current marketable investment securities are measured at fair value on a recurring basis as summarized in the table below. As of June 30, 2014 and December 31, 2013, we did not have investments that were categorized within Level 3 of the fair value hierarchy. | ||||||||||||||||||||
As of | ||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash equivalents (including restricted) | $ | 593,659 | $ | 7,864 | $ | 585,795 | $ | 548,714 | $ | 49,338 | $ | 499,376 | ||||||||
Debt securities: | ||||||||||||||||||||
Corporate bonds | $ | 858,451 | $ | — | $ | 858,451 | $ | 833,791 | $ | — | $ | 833,791 | ||||||||
VRDNs | 31,095 | — | 31,095 | 34,705 | — | 34,705 | ||||||||||||||
Other (including restricted) | 68,602 | — | 68,602 | 92,389 | — | 92,389 | ||||||||||||||
Equity securities - strategic | 32,715 | 32,715 | — | 33,613 | 33,613 | — | ||||||||||||||
Total marketable investment securities | $ | 990,863 | $ | 32,715 | $ | 958,148 | $ | 994,498 | $ | 33,613 | $ | 960,885 |
Trade_Accounts_Receivable
Trade Accounts Receivable | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Trade Accounts Receivable | ' | |||||||
Trade Accounts Receivable | ' | |||||||
Note 7. Trade Accounts Receivable | ||||||||
Our trade accounts receivable consisted of the following: | ||||||||
As of | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Trade accounts receivable | $ | 179,025 | $ | 164,900 | ||||
Contracts in process, net | 9,554 | 7,629 | ||||||
Total trade accounts receivable | 188,579 | 172,529 | ||||||
Allowance for doubtful accounts | (14,766 | ) | (13,237 | ) | ||||
Trade accounts receivable - DISH Network | 318,351 | 355,135 | ||||||
Total trade accounts receivable, net | $ | 492,164 | $ | 514,427 | ||||
As of June 30, 2014 and December 31, 2013, progress billings offset against contracts in process amounted to $13.0 million and $2.6 million, respectively. |
Inventory
Inventory | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory | ' | |||||||
Inventory | ' | |||||||
Note 8. Inventory | ||||||||
Our inventory consisted of the following: | ||||||||
As of | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Finished goods | $ | 49,246 | $ | 50,357 | ||||
Raw materials | 6,203 | 8,658 | ||||||
Work-in-process | 8,509 | 7,069 | ||||||
Total inventory | $ | 63,958 | $ | 66,084 |
Property_and_Equipment
Property and Equipment | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Property and Equipment | ' | |||||||||||||
Property and Equipment | ' | |||||||||||||
Note 9. Property and Equipment | ||||||||||||||
Property and equipment consisted of the following: | ||||||||||||||
Depreciable | As of | |||||||||||||
Life | June 30, | December 31, | ||||||||||||
(In Years) | 2014 | 2013 | ||||||||||||
(In thousands) | ||||||||||||||
Land | — | $ | 42,574 | $ | 42,850 | |||||||||
Buildings and improvements | Mar-40 | 380,758 | 377,208 | |||||||||||
Furniture, fixtures, equipment and other | 12-Jan | 1,192,990 | 1,157,325 | |||||||||||
Customer rental equipment | 4-Feb | 436,998 | 374,688 | |||||||||||
Satellites - owned | 15-Feb | 2,381,120 | 1,949,040 | |||||||||||
Satellites acquired under capital leases | 15-Oct | 935,104 | 935,104 | |||||||||||
Construction in progress | — | 361,716 | 210,051 | |||||||||||
Total property and equipment | 5,731,260 | 5,046,266 | ||||||||||||
Accumulated depreciation | (2,703,563 | ) | (2,499,889 | ) | ||||||||||
Property and equipment, net | $ | 3,027,697 | $ | 2,546,377 | ||||||||||
As of June 30, 2014, our owned satellites included $432.1 million for the five satellites we received from DISH Network as part of the Satellite and Tracking Stock Transaction discussed in Note 2. This amount represents the net carrying amount of those satellites in DISH Network’s consolidated financial statements as of February 28, 2014, the day prior to the effective date of the Satellite and Tracking Stock Transaction. Accumulated depreciation for those satellites as of June 30, 2014 was $15.9 million, representing depreciation expense recognized in our consolidated financial statements for the period subsequent to the effective date of the Satellite and Tracking Stock Transaction. | ||||||||||||||
Construction in progress consisted of the following: | ||||||||||||||
As of | ||||||||||||||
June 30, | December 31, | |||||||||||||
Segment | 2014 | 2013 | ||||||||||||
(In thousands) | ||||||||||||||
Progress amounts for satellite construction, including certain amounts prepaid under satellite service agreements and launch costs: | ||||||||||||||
EchoStar XIX | Other | $ | 223,981 | $ | 122,070 | |||||||||
TerreStar-2/EchoStar XXI | Other | 55,354 | 16,433 | |||||||||||
EchoStar XXIII | Other | 22,981 | 19,210 | |||||||||||
EUTELSAT 65W A | Hughes | 10,337 | — | |||||||||||
Other | Other/ESS | 4,440 | 4,950 | |||||||||||
Uplinking equipment | ETC/Hughes | 24,245 | 20,793 | |||||||||||
Other | ETC/Hughes/ESS | 20,378 | 26,595 | |||||||||||
Construction in progress | $ | 361,716 | $ | 210,051 | ||||||||||
Depreciation expense associated with our property and equipment consisted of the following: | ||||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Satellites | $ | 55,576 | $ | 46,529 | $ | 103,139 | $ | 93,073 | ||||||
Furniture, fixtures, equipment and other | 29,161 | 32,805 | 59,052 | 64,771 | ||||||||||
Customer rental equipment | 29,016 | 23,793 | 56,908 | 47,080 | ||||||||||
Buildings and improvements | 3,413 | 3,366 | 6,943 | 6,681 | ||||||||||
Total depreciation expense | $ | 117,166 | $ | 106,493 | $ | 226,042 | $ | 211,605 | ||||||
Satellites | ||||||||||||||
As of June 30, 2014, we utilized 18 of our owned and leased satellites in geosynchronous orbit, approximately 22,300 miles above the equator. Four of our satellites are accounted for as capital leases and are depreciated on a straight-line basis over the terms of the satellite service agreements. We depreciate our owned satellites on a straight-line basis over the estimated useful life of each satellite. | ||||||||||||||
Information for our satellite fleet is presented below. | ||||||||||||||
Nominal Degree | Depreciable | |||||||||||||
Launch | Orbital Location | Life | ||||||||||||
Satellites | Segment | Date | (Longitude) | (In Years) | ||||||||||
Owned: | ||||||||||||||
SPACEWAY 3 (5) | Hughes | August 2007 | 95 W | 12 | ||||||||||
EchoStar XVII | Hughes | July 2012 | 107 W | 15 | ||||||||||
EchoStar I (1)(2)(3) | ESS | December 1995 | 77 W | — | ||||||||||
EchoStar III (3) | ESS | October 1997 | 61.5 W | 12 | ||||||||||
EchoStar VI (3) | ESS | July 2000 | 96.2 W | 12 | ||||||||||
EchoStar VII (1)(2) | ESS | February 2002 | 119 W | 3 | ||||||||||
EchoStar VIII (1) | ESS | August 2002 | 77 W | 12 | ||||||||||
EchoStar XII (1)(6) | ESS | July 2003 | 61.5 W | 2 | ||||||||||
EchoStar IX (1) | ESS | August 2003 | 121 W | 12 | ||||||||||
EchoStar X (1)(2) | ESS | February 2006 | 110 W | 7 | ||||||||||
EchoStar XI (1)(2) | ESS | July 2008 | 110 W | 9 | ||||||||||
EchoStar XIV (1)(2) | ESS | March 2010 | 119 W | 11 | ||||||||||
EchoStar XVI (1) | ESS | November 2012 | 61.5 W | 15 | ||||||||||
EUTELSAT 10A (“W2A”) (7) | Other | April 2009 | 10 E | — | ||||||||||
Leased from Third Parties (4): | ||||||||||||||
AMC-15 | ESS | October 2004 | 105 W | 10 | ||||||||||
AMC-16 | ESS | December 2004 | 85 W | 10 | ||||||||||
Nimiq 5 (1) | ESS | September 2009 | 72.7 W | 15 | ||||||||||
QuetzSat-1 (1) | ESS | September 2011 | 77 W | 10 | ||||||||||
(1) See Note 16 for further discussion of our transactions with DISH Network. | ||||||||||||||
(2) Depreciable life represents the remaining useful life as of March 1, 2014, the effective date of our receipt of the satellites from DISH Network as part of the Satellite and Tracking Stock Transaction (See Note 2). | ||||||||||||||
(3) Fully depreciated assets. | ||||||||||||||
(4) These satellites are accounted for as capital leases and their launch dates represent dates that the satellites were placed into service. | ||||||||||||||
(5) Depreciable life represents the remaining useful life as of the date of the Hughes Acquisition (as defined below). | ||||||||||||||
(6) Depreciable life represents the remaining useful life as of June 30, 2013, the date EchoStar XII was impaired. | ||||||||||||||
(7) The Company acquired the S-band payload on this satellite, which prior to the acquisition in December 2013, experienced an anomaly at the time of the launch. As a result, the S-band payload is not fully operational. | ||||||||||||||
Recent Developments | ||||||||||||||
CMBStar and EchoStar XXIII. In 2008, we suspended construction of the CMBStar satellite. In April 2014, we entered into an agreement with Space Systems Loral, LLC (“SSL”) for the construction of the EchoStar XXIII satellite, as a high powered Broadcast Satellite Service (“BSS”) satellite which will use some of the components from the CMBStar satellite. This agreement superseded and replaced the CMBStar construction contract. EchoStar XXIII is expected to launch in 2016. | ||||||||||||||
EUTELSAT 65 West A. In April 2014, we entered into a satellite services agreement pursuant to which Eutelsat do Brasil will provide to Hughes Telecomunicaҫões do Brasil Ltda, our indirect wholly-owned subsidiary, the fixed broadband service on the entire Ka-band capacity into Brazil on the EUTELSAT 65 West A satellite for a 15-year term. The satellite is scheduled to be placed into service in the second quarter of 2016. | ||||||||||||||
EchoStar XIX. In February 2012 and September 2013, ViaSat and its subsidiary ViaSat Communications filed lawsuits in the U.S. District Court for the Southern District of California against SSL, the manufacturer of EchoStar XVII and EchoStar XIX. In the first-filed case, ViaSat alleged, among other things, that SSL infringed three patents and breached its contractual obligations through the use of such patented technology to manufacture EchoStar XVII. A jury trial was held in that case in March and April 2014, and the jury found that in connection with EchoStar XVII, SSL directly infringed the asserted patents and that SSL breached certain agreements with ViaSat. While we are not a party to this matter, the adverse decision against SSL may have an impact on our ability to make use of EchoStar XIX or other satellites from SSL and may adversely affect our business operations and results of operations. Until there are further developments in the case, including rulings on post-trial motions and appeals, we cannot determine whether there will be an adverse impact and, if so, the extent of any such impact. | ||||||||||||||
EchoStar I, EchoStar VII, EchoStar X, EchoStar XI, and EchoStar XIV. As discussed in Note 2, we received five satellites (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV) from DISH Network as part of the Satellite and Tracking Stock Transaction. These satellites are BSS communications satellites operating in Ku-band frequencies and DISH Network began receiving certain services from us on these satellites effective March 1, 2014. | ||||||||||||||
EchoStar VIII. In May 2013, DISH Network began receiving satellite services from us on EchoStar VIII as an in-orbit spare. Effective March 1, 2014, this service arrangement was converted to a month-to-month service agreement. Both parties have the right to terminate this agreement upon 30 days’ notice. | ||||||||||||||
EchoStar XV. In May 2013, we began receiving satellite services from DISH Network on EchoStar XV (classified as an operating lease) and relocated the satellite to the 45 degree west longitude orbital location. Effective March 1, 2014, this service arrangement was converted to a month-to-month service agreement. Both parties have the right to terminate this agreement upon 30 days’ notice. Although we are not required to maintain in-orbit insurance pursuant to our service arrangement with DISH Network for EchoStar XV, we are liable for any damage caused by our use of the satellite and therefore we carry insurance on EchoStar XV. | ||||||||||||||
Satellite Anomalies | ||||||||||||||
Certain of our satellites have experienced anomalies, some of which have had a significant adverse impact on their remaining useful lives and/or the commercial operation of the satellites. There can be no assurance that existing and future anomalies will not further impact the remaining useful life and/or the commercial operation of any of the satellites in our fleet. In addition, there can be no assurance that we can recover critical transmission capacity in the event one or more of our in-orbit satellites were to fail. We generally do not carry in-orbit insurance on our satellites; therefore, we generally bear the risk of any uninsured in-orbit failures. Pursuant to the terms of the agreements governing certain portions of our indebtedness, we are required, subject to certain limitations on coverage, to maintain launch and in-orbit insurance for SPACEWAY 3, EchoStar XVI, and EchoStar XVII. | ||||||||||||||
We have previously disclosed in our financial statements as of and for the year ended December 31, 2013, anomalies in prior years that affect our in-service owned and leased satellites, including EchoStar III, EchoStar VI, EchoStar VIII, EchoStar XII, and AMC-16. We are not aware of any additional anomalies that have occurred on any of our owned or leased satellites in 2014 as of the date of this report that affected the commercial operation of these satellites. EchoStar III and EchoStar VI are fully depreciated and EchoStar III is being used as an in-orbit spare; accordingly, the prior anomalies affecting these satellites have not had a significant effect on our operating results and cash flows. EchoStar XII has experienced several anomalies, which have resulted in a loss of electrical power. Those anomalies have not had a significant adverse impact on service under the related satellite services agreement with DISH Network for EchoStar XII; however, the anomalies have increased the risk of future transponder failures that could result in reductions in our revenue and require recognition of a satellite impairment loss. See Satellite Impairments below. | ||||||||||||||
The five satellites received from DISH Network pursuant to the Satellite and Tracking Stock Transaction have experienced certain anomalies prior to March 1, 2014, the effective date of the Satellite and Tracking Stock Transaction as described below. | ||||||||||||||
EchoStar I. During the first quarter of 2012, DISH Network determined that EchoStar I experienced a communications receiver anomaly. The communications receivers process signals sent from the uplink center for transmission by the satellite to customers. While this anomaly did not impact commercial operation of the satellite, there can be no assurance that future anomalies will not impact its future commercial operation. EchoStar I is fully depreciated. | ||||||||||||||
EchoStar VII. Prior to 2012, EchoStar VII experienced certain thruster failures. During the fourth quarter of 2012, DISH Network determined that EchoStar VII experienced an additional thruster failure. Thrusters control the satellite’s location and orientation. While this anomaly did not impact commercial operation of the satellite, there can be no assurance that future anomalies will not reduce its useful life or impact its commercial operation. | ||||||||||||||
EchoStar X. During the second and third quarters of 2010, EchoStar X experienced anomalies which affected seven solar array circuits reducing the number of functional solar array circuits to 17. While these anomalies did not impact commercial operation of the satellite, there can be no assurance that future anomalies will not reduce its useful life or impact its commercial operation. | ||||||||||||||
EchoStar XI. During the first quarter of 2012, DISH Network determined that EchoStar XI experienced solar array anomalies that reduced the total power available for use by the satellite. While these anomalies did not impact commercial operation of the satellite, there can be no assurance that future anomalies will not reduce its useful life or impact its commercial operation. | ||||||||||||||
EchoStar XIV. During the third quarter of 2011 and the first quarter of 2012, DISH Network determined that EchoStar XIV experienced solar array anomalies that reduced the total power available for use by the satellite. While these anomalies did not impact commercial operation of the satellite, there can be no assurance that future anomalies will not reduce its useful life or impact its commercial operation. | ||||||||||||||
Satellite Impairments | ||||||||||||||
We evaluate our satellites for impairment and test for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Certain of the anomalies discussed above, and previously disclosed, may be considered to represent a significant adverse change in the physical condition of a particular satellite. However, based on the redundancy designed within each satellite, certain of these anomalies are not necessarily considered to be significant events that would require a test of recoverability. There have been no satellite impairments in 2014 as of the date of this report. | ||||||||||||||
EchoStar XII. Prior to 2010, EchoStar XII experienced anomalies resulting in the loss of electrical power available from its solar arrays. In September 2012, November 2012, and January 2013, EchoStar XII experienced additional solar array anomalies, which further reduced the electrical power available to operate EchoStar XII. An engineering analysis completed in the second quarter of 2013 indicated further loss of available electrical power and resulting capacity loss was likely. As a result, we recognized a $34.7 million impairment loss in the second quarter of 2013. Additional solar array anomalies are likely, and if they occur, they will continue to degrade the operational capability of EchoStar XII and could lead to additional impairment charges in the future. EchoStar XII has experienced no additional electrical power loss or solar array anomalies in 2014 as of the date of this report. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||||
Note 10. Goodwill and Other Intangible Assets | ||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||
The excess of the cost of an acquired business over the fair values of net tangible and identifiable intangible assets at the time of the acquisition is recorded as goodwill. Goodwill is assigned to our reporting units of our operating segments and is subject to our annual impairment testing, or more frequently when events or changes in circumstances indicate the fair value of a reporting unit is more likely than not less than its carrying amount. | ||||||||||||||||||||||
As of June 30, 2014, all of our goodwill was assigned to reporting units of the Hughes segment. Based on our qualitative assessment of impairment of such goodwill in the second quarter of 2014, we determined that no further testing of goodwill for impairment as of that date was necessary as it was not more likely than not that the fair values of the Hughes segment reporting units were less than the corresponding carrying amounts. | ||||||||||||||||||||||
Regulatory Authorizations | ||||||||||||||||||||||
Regulatory authorizations with finite and indefinite useful lives are as follows: | ||||||||||||||||||||||
As of | ||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Finite useful lives: | ||||||||||||||||||||||
Cost | $ | 117,238 | $ | 113,764 | ||||||||||||||||||
Accumulated amortization | (4,727 | ) | (1,521 | ) | ||||||||||||||||||
Net | 112,511 | 112,243 | ||||||||||||||||||||
Indefinite lives | 471,657 | 471,657 | ||||||||||||||||||||
Total regulatory authorizations, net | $ | 584,168 | $ | 583,900 | ||||||||||||||||||
Amortization expense for the regulatory authorizations with finite useful lives was $1.6 million and zero for the three months ended June 30, 2014 and 2013, respectively, and $3.1 million and zero for the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||||||||||
Other Intangible Assets | ||||||||||||||||||||||
Our other intangible assets, which are subject to amortization, consisted of the following: | ||||||||||||||||||||||
Weighted | As of | |||||||||||||||||||||
Average | June 30, 2014 | December 31, 2013 | ||||||||||||||||||||
Useful life | Accumulated | Carrying | Accumulated | Carrying | ||||||||||||||||||
(in Years) | Cost | Amortization | Amount | Cost | Amortization | Amount | ||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Customer relationships | 8 | $ | 293,932 | $ | (169,020 | ) | $ | 124,912 | $ | 293,932 | $ | (152,647 | ) | $ | 141,285 | |||||||
Contract-based | 10 | 255,366 | (221,674 | ) | 33,692 | 255,366 | (204,835 | ) | 50,531 | |||||||||||||
Technology-based | 7 | 126,272 | (92,257 | ) | 34,015 | 126,272 | (83,580 | ) | 42,692 | |||||||||||||
Trademark portfolio | 20 | 29,700 | (4,579 | ) | 25,121 | 29,700 | (3,836 | ) | 25,864 | |||||||||||||
Favorable leases | 4 | 4,707 | (3,628 | ) | 1,079 | 4,707 | (3,040 | ) | 1,667 | |||||||||||||
Total other intangible assets | $ | 709,977 | $ | (491,158 | ) | $ | 218,819 | $ | 709,977 | $ | (447,938 | ) | $ | 262,039 | ||||||||
Customer relationships are amortized predominantly in relation to the expected contribution of cash flow to the business over the life of the intangible asset. Other intangible assets are amortized on a straight-line basis over the periods the assets are expected to contribute to our cash flows. Amortization expense, including amortization of regulatory authorizations with finite lives, was $22.6 million and $21.7 million for the three months ended June 30, 2014 and 2013, respectively, and $46.2 million and $43.2 million for the six months ended June 30, 2014 and 2013, respectively. |
Debt_and_Capital_Lease_Obligat
Debt and Capital Lease Obligations | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Debt and Capital Lease Obligations | ' | |||||||||||||||
Debt and Capital Lease Obligations | ' | |||||||||||||||
Note 11. Debt and Capital Lease Obligations | ||||||||||||||||
The following table summarizes the carrying amounts and fair values of our debt: | ||||||||||||||||
As of | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Interest | Carrying | Fair | Carrying | Fair | ||||||||||||
Rates | Amount | Value | Amount | Value | ||||||||||||
(In thousands) | ||||||||||||||||
6 1/2% Senior Secured Notes due 2019 | 6.50% | $ | 1,100,000 | $ | 1,226,500 | $ | 1,100,000 | $ | 1,193,500 | |||||||
7 5/8% Senior Notes due 2021 | 7.63% | 900,000 | 1,030,500 | 900,000 | 1,001,250 | |||||||||||
Other | 5.50% - 15.75% | 1,334 | 1,334 | 1,588 | 1,588 | |||||||||||
Subtotal | 2,001,334 | $ | 2,258,334 | 2,001,588 | $ | 2,196,338 | ||||||||||
Capital lease obligations (1) | 389,084 | 420,800 | ||||||||||||||
Total debt and capital lease obligations | 2,390,418 | 2,422,388 | ||||||||||||||
Less: Current portion | (51,080 | ) | (69,791 | ) | ||||||||||||
Long-term portion of debt and capital lease obligations | $ | 2,339,338 | $ | 2,352,597 | ||||||||||||
(1) Disclosure regarding the fair value of capital lease obligations is not required. | ||||||||||||||||
We estimated the fair value of our publicly traded long-term debt using market prices in less active markets (Level 2). |
Income_Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
Note 12. Income Taxes | |
Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. | |
Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant volatility due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, income and losses from investments, changes in tax laws and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. | |
Income tax expense was approximately $22.1 million for the six months ended June 30, 2014 compared to an income tax benefit of $21.5 million for the six months ended June 30, 2013. Our effective income tax rate was 34.6% for the six months ended June 30, 2014 compared to 78.0% for the same period in 2013. The variation in our current year effective tax rate from a U.S. federal statutory rate for the current period was primarily due to the increase of our valuation allowance associated with realized and unrealized losses that are capital in nature for tax purposes and a lower state effective tax rate. For the same period in 2013, the variation in our effective tax rate from a U.S. federal statutory rate was primarily due to the decrease of our valuation allowance associated with realized and unrealized losses that are capital in nature for tax purposes, current year research and experimentation credits, and reinstatement of the tax credit for 2012, as provided by the American Taxpayer Relief Act enacted on January 2, 2013. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Note 13. Stock-Based Compensation | ||||||||||||||
We maintain stock incentive plans to attract and retain officers, directors and key employees. Stock awards under these plans include both performance based and non-performance based stock incentives. We granted 25,000 and 215,000 stock options to our employees for the three and six months ended June 30, 2014, respectively. We granted 725,000 stock options to our employees for the three and six months ended June 30, 2013. | ||||||||||||||
Our stock-based compensation expense was recorded in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) as follows: | ||||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Research and development expenses | $ | 583 | $ | 921 | $ | 1,175 | $ | 1,849 | ||||||
Selling, general and administrative expenses | 3,038 | 4,147 | 6,003 | 8,203 | ||||||||||
Total stock-based compensation | $ | 3,621 | $ | 5,068 | $ | 7,178 | $ | 10,052 | ||||||
As of June 30, 2014, total unrecognized stock-based compensation cost, net of estimated forfeitures, related to our non-performance based unvested stock awards was $28.5 million. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies | ' |
Commitments and Contingencies | ' |
Note 14. Commitments and Contingencies | |
Commitments | |
As of June 30, 2014, our satellite-related obligations were approximately $1.24 billion. Our satellite-related obligations primarily include, payments pursuant to agreements for the construction of the EchoStar XIX, TerreStar-2/EchoStar XXI, EchoStar XXIII and EUTELSAT 65 West A satellites, payments pursuant to launch services contracts, executory costs for our capital lease satellites, costs under transponder agreements and in-orbit incentives relating to certain satellites, including certain satellites received from DISH Network as a result of the Satellite and Tracking Stock Transaction. | |
Contingencies | |
Separation Agreement | |
In connection with the Spin-off, we entered into a separation agreement with DISH Network that provides, among other things, for the division of certain liabilities, including liabilities resulting from litigation. Under the terms of the separation agreement, we have assumed certain liabilities that relate to our 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, we will only be liable for our acts or omissions following the Spin-off and DISH Network will indemnify us for any liabilities or damages resulting from intellectual property claims relating to the period prior to the Spin-off as well as DISH Network’s acts or omissions following the Spin-off. | |
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. We record an accrual for litigation and other loss contingencies when we determine that a loss is probable and the amount of the loss can be reasonably estimated. Legal fees and other costs of defending litigation are charged to expense as incurred. | |
For certain cases described below, 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 are involved (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 suit against two of our indirect wholly-owned subsidiaries, Hughes Communications, Inc. and Hughes Network Systems, LLC, as well as against DISH Network, DISH Network L.L.C., and dishNET Satellite Broadband L.L.C., in the United States District Court for the Central District of California alleging 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 appears to assert 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 the HopperTM set-top box, as well as certain of our Hughes segment’s satellite broadband products and services, infringe the asserted patents by implementing the DVB-S2 standard. | |
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 our 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 us and our wholly-owned subsidiary, EchoStar Technologies L.L.C., as well as against DISH Network and DISH Network 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” (the “799 patent”); 7,526,784, entitled “Delivery of Navigation Data for Playback of Audio and Video Content” (the “784 patent”); 7,543,318, entitled “Delivery of Navigation Data for Playback of Audio and Video Content” (the “318 patent”); 7,577,970, entitled “Multimedia Content Navigation and Playback” (the “970 patent”); and 8,117,282, entitled “Media Player Configured to Receive Playback Filters From Alternative Storage Mediums” (the “282 patent”). ClearPlay alleges that the AutoHop™ feature in the HopperTM set-top box infringes the asserted patents. | |
We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could require us to materially modify certain features that we currently offer to consumers. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. | |
CRFD Research, Inc. (a subsidiary of Marathon Patent Group, Inc.) | |
On January 17, 2014, CRFD Research, Inc. (“CRFD”) filed a complaint against us and our wholly-owned subsidiary, EchoStar Technologies L.L.C., as well as against DISH Network, DISH DBS and DISH Network L.L.C., in 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 certain of our set-top boxes infringe the 233 patent. On the same day, CRFD filed patent infringement complaints against AT&T Inc.; Comcast Corp.; DirecTV; Time Warner Cable Inc.; Cox Communications, Inc.; Level 3 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. | |
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, DISH Network L.L.C., filed suit in the United States District Court for the Southern District of New York against American Broadcasting Companies, Inc. (“ABC”), CBS Corporation (“CBS”), Fox Entertainment Group, Inc., Fox Television Holdings, Inc., Fox Cable Network Services, L.L.C. (collectively, “Fox”) and NBCUniversal Media, LLC (“NBC”). The lawsuit seeks a declaratory judgment that DISH Network L.L.C is not infringing any defendant’s copyright, or breaching any defendant’s retransmission consent agreement, by virtue of the PrimeTime Anytime™ and AutoHop™ features in the Hopper™ set-top boxes we design and sell to DISH Network. 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 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 DISH Network L.L.C. (collectively, “DISH”) in the United States District Court for the Central District of California, alleging that the PrimeTime Anytime feature, the AutoHop feature, as well as DISH’s use of Sling 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 Media, LLC filed a lawsuit against DISH 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 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 counterclaims and venue-related motions brought in both the New York and California actions, and certain networks filing various 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 parties and NBC parties in California. | |
California Actions. On August 17, 2012, the NBC plaintiffs filed a first amended complaint in their California action adding us and our wholly-owned subsidiary EchoStar Technologies L.L.C. to the NBC litigation, alleging various claims of copyright infringement. We and our subsidiary answered on September 18, 2012. | |
On September 21, 2012, the United States District Court for the Central District of California heard the Fox plaintiffs’ motion for a preliminary injunction to enjoin the Hopper set-top box’s PrimeTime Anytime and AutoHop features and, on November 7, 2012, entered an order denying the motion. The Fox plaintiffs appealed and 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. As a result, the stay of the NBC plaintiffs’ action has been lifted. No trial date is currently set on the NBC claims. | |
In addition, on February 21, 2013, the Fox plaintiffs filed a second motion for preliminary injunction against: (i) DISH Network, seeking to enjoin the Hopper Transfers™ feature in the second-generation Hopper set-top box, alleging breach of a retransmission consent agreement; and (ii) EchoStar Technologies L.L.C. and DISH Network, seeking to enjoin the Sling placeshifting functionality in the second-generation Hopper set-top box, alleging copyright infringement by both defendants, and breach of the earlier-mentioned retransmission consent agreement by DISH Network. The Fox plaintiffs’ motion was denied on September 23, 2013. The Fox plaintiffs appealed, and on July 14, 2014, the United States Court of Appeals for the Ninth Circuit affirmed the denial of the Fox plaintiffs’ motion. The Fox claims are set for trial on January 13, 2015. | |
New York Actions. On October 9, 2012, the ABC plaintiffs filed copyright counterclaims in the New York action against EchoStar Technologies, L.L.C., with the CBS plaintiffs filing similar copyright counterclaims in the New York action against EchoStar Technologies L.L.C. on October 12, 2012. Additionally, the CBS plaintiffs have filed a counterclaim alleging that DISH Network fraudulently concealed the AutoHop feature when negotiating renewal of its CBS retransmission consent agreement. | |
On November 23, 2012, the ABC plaintiffs filed a motion for a preliminary injunction to enjoin the Hopper set-top box’s PrimeTime Anytime and AutoHop features. On September 18, 2013, the New York court denied that motion. The ABC plaintiffs appealed, and oral argument on the appeal was heard on February 20, 2014 before the United States Court of Appeals for the Second Circuit. Pursuant to a settlement between us and the ABC parties, on March 4, 2014, the ABC parties withdrew their appeal to the United States Court of Appeals for the Second Circuit, and, on March 6, 2014, we and the ABC parties dismissed without prejudice all of our respective claims pending in the United States District Court for the Southern District of New York. The CBS claims in the New York action are set to be trial-ready on April 17, 2015. | |
We intend to vigorously prosecute and defend our position in these cases. In the event that a court ultimately determines that we infringe the asserted copyrights, we may be subject to substantial damages, and/or an injunction that could require us to materially modify certain features that we currently offer to DISH Network. An adverse decision against DISH Network could decrease the number of Sling enabled set-top boxes we sell to DISH Network, which could have an adverse impact on the business operations of our EchoStar Technologies segment. In addition, to the extent that DISH Network experiences fewer gross new subscriber additions, sales of our digital set-top boxes and related components to DISH Network may further decline, which in turn could have a material adverse effect on our financial position and results of operations. We cannot predict with any degree of certainty the outcome of these suits or determine the extent of any potential liability or damages. | |
Lightsquared/Harbinger Capital Partners LLC (LightSquared Bankruptcy) | |
On August 6, 2013, Harbinger Capital Partners LLC and other affiliates of Harbinger (collectively, “Harbinger”), a shareholder of LightSquared Inc., filed an adversary proceeding against us, DISH Network, L-Band Acquisition, LLC (“LBAC”), Charles W. Ergen (our Chairman), SP Special Opportunities, LLC (“SPSO”) (an entity controlled by Mr. Ergen), and certain other parties, in the LightSquared bankruptcy cases pending in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”), which cases are jointly administered under the caption In re LightSquared Inc., et. al., Case No. 12 12080 (SCC). Harbinger alleged, among other things, claims based on fraud, unfair competition, civil conspiracy and tortious interference with prospective economic advantage related to certain purchases of LightSquared secured debt by SPSO. Subsequently, LightSquared intervened to join in certain claims alleged against certain defendants other than us, DISH Network and LBAC. | |
On October 29, 2013, the Bankruptcy Court dismissed all of the claims against us in Harbinger’s complaint in their entirety, but granted leave for LightSquared to file its own complaint in intervention. On November 15, 2013, LightSquared filed its complaint, which included various claims against us, DISH Network, Mr. Ergen and SPSO. On December 2, 2013, Harbinger filed an amended complaint, asserting various claims against SPSO. On December 12, 2013, the Bankruptcy Court dismissed several of the claims asserted by LightSquared and Harbinger. The surviving claims included, among others, LightSquared’s claims against SPSO for declaratory relief, breach of contract and statutory disallowance; LightSquared’s tortious interference claim against us, DISH Network and Mr. Ergen; and Harbinger’s claim against SPSO for statutory disallowance. These claims proceeded to a non-jury trial on January 9, 2014, which concluded on January 17, 2014. The parties submitted post-trial briefs and a hearing for closing arguments occurred on March 17, 2014. In its Post-Trial Findings of Fact and Conclusions of Law entered on June 10, 2014, the Bankruptcy Court rejected all claims against us and DISH Network and it rejected some but not all claims against the other defendants. | |
We intend to vigorously defend this proceeding and cannot predict with any degree of certainty the outcome of this proceeding or determine the extent of any potential liability or damages. | |
Nazomi Communications, Inc. | |
On February 10, 2010, Nazomi Communications, Inc. (“Nazomi”) filed suit against Sling Media, Inc. (“Sling”), our indirect wholly owned subsidiary, as well as Nokia Corp; Nokia Inc.; Microsoft Corp.; Amazon.com Inc.; Western Digital Corp.; Western Digital Technologies, Inc.; Garmin Ltd.; Garmin Corp.; Garmin International, Inc.; Garmin USA, Inc.; Vizio Inc. and iOmega Corp in the United States District Court for the Central District of California alleging infringement of United States Patent No. 7,080,362 (the “362 patent”) and United States Patent No. 7,225,436 (the “436 patent”). The 362 patent and the 436 patent relate to Java hardware acceleration. On August 14, 2012, the United States District Court for the Northern District of California, to which the case had earlier been transferred, granted Sling’s motion for summary judgment of non-infringement. On January 10, 2014, the United States Court of Appeals for the Federal Circuit affirmed the District Court’s grant of summary judgment, and the matter is now concluded. | |
Network Acceleration Technologies, LLC | |
On November 30, 2012, Network Acceleration Technologies, LLC (“NAT”) filed suit against Hughes Network Systems, LLC, our indirect wholly-owned subsidiary, in the United States District Court for the District of Delaware alleging infringement of United States Patent No. 6,091,710 (the “710 patent”), which is entitled “System and Method for Preventing Data Slow Down Over Asymmetric Data Transmission Links.” NAT re-filed its case on July 19, 2013. NAT is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On May 22, 2014, NAT filed a stipulation dismissing the litigation without prejudice and the matter is now concluded. | |
Personalized Media Communications, Inc. | |
During 2008, Personalized Media Communications, Inc. (“PMC”) filed suit against EchoStar Corporation, DISH Network and Motorola Inc. in the United States District Court for the Eastern District of Texas alleging infringement of United States Patent Nos. 5,109,414; 4,965,825; 5,233,654; 5,335,277; and 5,887,243, which relate to satellite signal processing. PMC is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. Subsequently, Motorola Inc. settled with PMC, leaving DISH Network and us as defendants. On July 18, 2012, pursuant to a Court order, PMC filed a Second Amended Complaint that added Rovi Guides, Inc. (f/k/a/ Gemstar-TV Guide International, Inc.) and TVG-PMC, Inc. (collectively, “Gemstar”) as a party, and added a new claim against all defendants seeking a declaratory judgment as to the scope of Gemstar’s license to the patents in suit, under which DISH Network and we are sublicensees. No trial date is currently set. | |
We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe any of the asserted patents, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could cause us to materially modify certain features that we currently offer to consumers. We are being indemnified by DISH Network for any potential liability or damages resulting from this suit relating to the period prior to the effective date of the Spin-off. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. | |
Shareholder Derivative Litigation | |
On December 5, 2012, Greg Jacobi, derivatively on behalf of EchoStar Corporation, filed suit (the “Jacobi Litigation”) against Charles W. Ergen, Michael T. Dugan, R. Stanton Dodge, Tom A. Ortolf, C. Michael Schroeder, Joseph P. Clayton, David K. Moskowitz, and EchoStar Corporation in the United States District Court for the District of Nevada. The complaint alleges that a March 2011 attempted grant of 1.5 million stock options to Charles Ergen breached defendants’ fiduciary duties, resulted in unjust enrichment, and constituted a waste of corporate assets. | |
On December 18, 2012, Chester County Employees’ Retirement Fund, derivatively on behalf of EchoStar Corporation, filed a suit (the “Chester County Litigation”) against Charles W. Ergen, Michael T. Dugan, R. Stanton Dodge, Tom A. Ortolf, C. Michael Schroeder, Anthony M. Federico, Pradman P. Kaul, Joseph P. Clayton, and EchoStar Corporation in the United States District Court for the District of Colorado. The complaint similarly alleges that the March 2011 attempted grant of 1.5 million stock options to Charles Ergen breached defendants’ fiduciary duties, resulted in unjust enrichment, and constituted a waste of corporate assets. | |
On February 22, 2013, the Chester County Litigation was transferred to the District of Nevada, and on April 3, 2013, the Chester County Litigation was consolidated into the Jacobi Litigation. Oral argument on a motion to dismiss the Jacobi Litigation was held February 21, 2014. On April 11, 2014, the Chester County litigation was stayed pending resolution of the motion to dismiss. | |
Of the attempted grant of 1.5 million options to Mr. Ergen in 2011, only 800,000 were validly granted and remain outstanding. We intend to vigorously defend these cases. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability. | |
Technology Development and Licensing, LLC | |
On January 22, 2009, Technology Development and Licensing, LLC (“TDL”) filed suit against us and DISH Network in the United States District Court for the Northern District of Illinois alleging infringement of United States Patent No. Re. 35,952, which relates to certain favorite channel features. TDL is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. The case has been stayed since July 2009, pending two reexamination petitions before the United States Patent and Trademark Office. | |
We intend to vigorously defend this case. In the event that a court ultimately determines that we infringe the asserted patent, we may be subject to substantial damages, which may include treble damages, and/or an injunction that could cause us to materially modify certain features that we currently offer to consumers. We are being indemnified by DISH Network for any potential liability or damages resulting from this suit relating to the period prior to the effective date of the Spin-off. We cannot predict with any degree of certainty the outcome of the suit or determine the extent of any potential liability or damages. | |
TQ Beta LLC | |
On June 30, 2014, TQ Beta LLC (“TQ Beta”) filed suit against DISH Network, DISH DBS Corporation, DISH Network L.L.C., as well as us and our subsidiaries, EchoStar Technologies, L.L.C, Hughes Satellite Systems Corporation, and Sling Media, Inc., in the United States District Court for the District of Delaware, alleging infringement of United States Patent No. 7,203,456 (“the ‘456 patent”), which is entitled “Method and Apparatus for Time and Space Domain Shifting of Broadcast Signals.” TQ Beta alleges that the Hopper, Hopper with Sling, ViP 722 and ViP 722k DVR devices, as well as the DISH Anywhere service and DISH Anywhere mobile application, infringe the ‘456 patent. TQ Beta 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 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. | |
TQP Development, LLC | |
On October 11, 2012, TQP Development, LLC (“TQP”) filed suit against our indirect wholly-owned subsidiary, Sling Media, Inc., in the United States District Court for the Eastern District of Texas, alleging infringement of United States Patent No. 5,412,730, which is entitled “Encrypted Data Transmission System Employing Means for Randomly Altering the Encryption Keys.” On November 14, 2012, TQP filed suit in the same venue against Hughes Network Systems, LLC, our indirectly wholly owned subsidiary, alleging infringement of the same patent. TQP is an entity that seeks to license an acquired patent portfolio without itself practicing any of the claims recited therein. On July 8, 2013, the Court granted a joint motion to dismiss the claims against Sling without prejudice. On February 24, 2014, the Court granted a joint motion to dismiss the claims against Hughes Network Systems, LLC, without prejudice and the matter is now concluded. | |
Other | |
In addition to the above actions, we are subject to various other legal proceedings and claims which arise in the ordinary course of our business. In our opinion, the amount of ultimate liability with respect to any of these actions is unlikely to materially affect our financial position, results of operations or liquidity, though the outcomes could be material to our operating results for any particular period, depending, in part, upon the operating results for such period. |
Segment_Reporting
Segment Reporting | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
Note 15. Segment Reporting | |||||||||||||||||
Operating segments are business components of an enterprise for which separate financial information is available and regularly evaluated by the chief operating decision maker (“CODM”), who for EchoStar is the Company’s Chief Executive Officer. Under this definition, we operate three primary business segments. | |||||||||||||||||
§ EchoStar Technologies — which designs, develops and distributes digital set-top boxes and related products and technology, primarily for satellite TV service providers, telecommunication companies and international cable companies. Our EchoStar Technologies segment also provides digital broadcast operations, including satellite uplinking/downlinking, transmission services, signal processing, conditional access management, and other services primarily to DISH Network. In addition, we provide our Slingboxes directly to consumers via retail outlets and online. | |||||||||||||||||
§ Hughes — which provides satellite broadband internet access to North American consumers and broadband network services and equipment to domestic and international enterprise markets. The Hughes segment also provides managed services to large enterprises and solutions to customers for mobile satellite systems. | |||||||||||||||||
§ EchoStar Satellite Services — which uses certain of our owned and leased in-orbit satellites and related licenses to lease capacity on a full-time and occasional-use basis primarily to DISH Network, and also to Dish Mexico, U.S. government service providers, state agencies, internet service providers, broadcast news organizations, programmers, and private enterprise customers. | |||||||||||||||||
The primary measure of segment profitability that is reported regularly to our CODM is earnings before interest, taxes, depreciation and amortization, or EBITDA. Our segment operating results do not include real estate and other activities, costs incurred in certain satellite development programs and other business development activities, expenses of various corporate departments and our centralized treasury operations, including income from our investment portfolio and interest expense on our debt. These activities are accounted for in the “All Other and Eliminations” column in the table below. Total assets by segment have not been reported herein because the information is not provided to our CODM on a regular basis. The Hughes Retail Group is included in our Hughes segment and our CODM reviews HRG financial information only to the extent such information is included in our periodic filings with the SEC. Therefore, we do not consider HRG to be a separate operating segment. | |||||||||||||||||
The following table presents revenue, EBITDA, and capital expenditures for each of our operating segments: | |||||||||||||||||
EchoStar | All | ||||||||||||||||
EchoStar | Satellite | Other and | Consolidated | ||||||||||||||
Technologies | Hughes | Services | Eliminations | Total | |||||||||||||
(In thousands) | |||||||||||||||||
For the Three Months Ended June 30, 2014 | |||||||||||||||||
External revenue | $ | 415,754 | $ | 329,795 | $ | 127,742 | $ | 6,537 | $ | 879,828 | |||||||
Intersegment revenue | $ | 137 | $ | 463 | $ | 797 | $ | (1,397 | ) | $ | — | ||||||
Total revenue | $ | 415,891 | $ | 330,258 | $ | 128,539 | $ | 5,140 | $ | 879,828 | |||||||
EBITDA | $ | 42,268 | $ | 90,316 | $ | 112,228 | $ | (11,909 | ) | $ | 232,903 | ||||||
Capital expenditures (1) | $ | 13,516 | $ | 51,505 | $ | — | $ | 91,071 | $ | 156,092 | |||||||
For the Three Months Ended June 30, 2013 | |||||||||||||||||
External revenue | $ | 425,559 | $ | 313,748 | $ | 84,079 | $ | 6,617 | $ | 830,003 | |||||||
Intersegment revenue | $ | (12 | ) | $ | 1,200 | $ | 793 | $ | (1,981 | ) | $ | — | |||||
Total revenue | $ | 425,547 | $ | 314,948 | $ | 84,872 | $ | 4,636 | $ | 830,003 | |||||||
EBITDA | $ | 32,047 | $ | 73,394 | $ | 33,667 | $ | 10,085 | $ | 149,193 | |||||||
Capital expenditures (1) | $ | 15,341 | $ | 45,493 | $ | 60 | $ | 24,758 | $ | 85,652 | |||||||
For the Six Months Ended June 30, 2014 | |||||||||||||||||
External revenue | $ | 821,446 | $ | 644,166 | $ | 227,614 | $ | 12,625 | $ | 1,705,851 | |||||||
Intersegment revenue | $ | 238 | $ | 863 | $ | 1,746 | $ | (2,847 | ) | $ | — | ||||||
Total revenue | $ | 821,684 | $ | 645,029 | $ | 229,360 | $ | 9,778 | $ | 1,705,851 | |||||||
EBITDA | $ | 81,232 | $ | 172,255 | $ | 197,010 | $ | (25,711 | ) | $ | 424,786 | ||||||
Capital expenditures (1) | $ | 27,438 | $ | 97,477 | $ | 29 | $ | 144,773 | $ | 269,717 | |||||||
For the Six Months Ended June 30, 2013 | |||||||||||||||||
External revenue | $ | 852,332 | $ | 602,929 | $ | 157,425 | $ | 12,771 | $ | 1,625,457 | |||||||
Intersegment revenue | $ | 209 | $ | 1,418 | $ | 1,649 | $ | (3,276 | ) | $ | — | ||||||
Total revenue | $ | 852,541 | $ | 604,347 | $ | 159,074 | $ | 9,495 | $ | 1,625,457 | |||||||
EBITDA | $ | 61,972 | $ | 137,375 | $ | 98,473 | $ | 23,007 | $ | 320,827 | |||||||
Capital expenditures (1) | $ | 27,652 | $ | 89,833 | $ | 12,332 | $ | 28,455 | $ | 158,272 | |||||||
(1) Capital expenditures consist of purchases of property and equipment reported in our Condensed Consolidated Statements of Cash Flows and do not include satellites transferred in the Satellite and Tracking Stock Transaction or other noncash capital expenditures. | |||||||||||||||||
The following table reconciles total consolidated EBITDA to reported “Income (loss) before income taxes” in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss): | |||||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
EBITDA | $ | 232,903 | $ | 149,193 | $ | 424,786 | $ | 320,827 | |||||||||
Interest income and expense, net | (42,540 | ) | (46,690 | ) | (85,986 | ) | (93,813 | ) | |||||||||
Depreciation and amortization | (140,647 | ) | (128,144 | ) | (273,873 | ) | (254,843 | ) | |||||||||
Net loss attributable to noncontrolling interest in HSS Tracking Stock | (1,619 | ) | — | (1,943 | ) | — | |||||||||||
Net income attributable to noncontrolling interests | 428 | 176 | 728 | 216 | |||||||||||||
Income (loss) before income taxes | $ | 48,525 | $ | (25,465 | ) | $ | 63,712 | $ | (27,613 | ) |
Related_Party_Transactions
Related Party Transactions | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Related Party Transactions | ' | |||||||||||||
Related Party Transactions | ' | |||||||||||||
Note 16. Related Party Transactions | ||||||||||||||
DISH Network | ||||||||||||||
Following the Spin-off, we and DISH Network have operated as separate publicly-traded companies. However, pursuant to the Satellite and Tracking Stock Transaction, described in Note 2 and below, DISH Network owns Hughes Retail Preferred Tracking Stock representing an aggregate 80.0% economic interest in the residential retail satellite broadband business of our Hughes segment, including certain operations, assets and liabilities attributed to such business. In addition, a substantial majority of the voting power of the shares of both companies is owned beneficially by Charles W. Ergen, our Chairman, and by certain trusts established by Mr. Ergen for the benefit of his family. | ||||||||||||||
In connection with and following the Spin-off, we and DISH Network have entered into certain agreements pursuant to which we obtain certain products, services and rights from DISH Network; DISH Network obtains certain products, services and rights from us; and we and DISH Network have indemnified each other against certain liabilities arising from our respective businesses. We also may enter into additional agreements with DISH Network in the future. Generally, the amounts DISH Network pays for products and services provided under the agreements are based on our cost plus a fixed margin (unless noted differently below), which varies depending on the nature of the products and services provided. | ||||||||||||||
“Equipment revenue — DISH Network” | ||||||||||||||
Receiver Agreement. Effective January 1, 2012, we and DISH Network entered into a new receiver agreement (the “2012 Receiver Agreement”), pursuant to which DISH Network has the right, but not the obligation, to purchase digital set-top boxes, related accessories, and other equipment from us for the period from January 1, 2012 to December 31, 2014. The 2012 Receiver Agreement replaced the receiver agreement we entered into with DISH Network in connection with the Spin-off. The 2012 Receiver Agreement allows DISH Network to purchase digital set-top boxes, related accessories, and other equipment from us either: (i) at cost (decreasing as we reduce costs and increasing as costs increase) plus a dollar mark-up which will depend upon the cost of the product subject to a collar on our mark-up; or (ii) at cost plus a fixed margin, which will depend on the nature of the equipment purchased. Under the 2012 Receiver Agreement, our margins will be increased if we are able to reduce the costs of our digital set-top boxes and our margins will be reduced if these costs increase. We provide DISH Network with standard manufacturer warranties for the goods sold under the 2012 Receiver Agreement. Additionally, the 2012 Receiver Agreement includes an indemnification provision, whereby the parties indemnify each other for certain intellectual property matters. DISH Network is able to terminate the 2012 Receiver Agreement for any reason upon at least 60 days’ notice to us. We are able to terminate the 2012 Receiver Agreement if certain entities acquire DISH Network. DISH Network has an option, but not the obligation, to extend the 2012 Receiver Agreement for one additional year upon 180 days’ notice prior to the end of the term. On May 5, 2014, we received DISH Network’s notice to extend the 2012 Receiver Agreement for one year to December 31, 2015. | ||||||||||||||
“Services and other revenue — DISH Network” | ||||||||||||||
Broadcast Agreement. Effective January 1, 2012, we and DISH Network entered into a new broadcast agreement (the “2012 Broadcast Agreement”) pursuant to which we provide certain broadcast services to DISH Network, 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 2012 Broadcast Agreement replaced the broadcast agreement that we entered into with DISH Network in connection with the Spin-off. The fees for the services provided under the 2012 Broadcast Agreement are calculated at either: (a) our cost of providing the relevant service plus a fixed dollar fee, which is subject to certain adjustments; or (b) our cost of providing the relevant service plus a fixed margin, which will depend on the nature of the services provided. DISH Network has 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 us. If DISH Network terminates the teleport services provided under the 2012 Broadcast Agreement for a reason other than our breach, DISH Network generally is obligated to reimburse us for any direct costs we incur related to any such termination that we cannot reasonably mitigate. | ||||||||||||||
Broadcast Agreement for Certain Sports Related Programming. During May 2010, we and DISH Network entered into a broadcast agreement pursuant to which we provide certain broadcast services to DISH Network in connection with its carriage of certain sports related programming. The term of this agreement is ten years. If DISH Network terminates this agreement for a reason other than our breach, DISH Network generally is obligated to reimburse us for any direct costs we incur related to any such termination that we 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 Services Provided to DISH Network. Since the Spin-off, we have entered into certain satellite capacity agreements pursuant to which DISH Network receives satellite services on certain satellites owned or leased by us. | ||||||||||||||
The fees for the services provided under these satellite service agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are providing services on the applicable satellite, and the length of the capacity arrangements. The term of each capacity arrangement is set forth below: | ||||||||||||||
EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV. As part of the Satellite and Tracking Stock Transaction discussed in Note 2, on March 1, 2014, we began providing certain satellite services to DISH Network on the EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV satellites. The term of each satellite services 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. DISH Network generally has 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. | ||||||||||||||
EchoStar VIII. In May 2013, DISH Network began receiving satellite services from us on EchoStar VIII as an in-orbit spare. Effective March 1, 2014, this satellite services arrangement converted to a month-to-month service agreement. Both parties have the right to terminate this agreement upon 30 days’ notice. | ||||||||||||||
EchoStar IX. DISH Network receives satellite services from us on EchoStar IX. Subject to availability, DISH Network generally has the right to continue to receive satellite services from us on EchoStar IX on a month-to-month basis. | ||||||||||||||
EchoStar XII. DISH Network receives satellite services from us on EchoStar XII. The term of the satellite services agreement terminates upon the earlier of: (i) the end of life of the satellite; (ii) the date the satellite fails or the date the transponder(s) on which the service was being provided under the agreement fails; or (iii) a certain date, which depends upon, among other things, the estimated useful life of the satellite. DISH Network generally has the option to renew the agreement 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 an initial ten-year transponder service agreement with DISH Network to receive satellite services from us on EchoStar XVI, a DBS satellite. Effective December 21, 2012, we and DISH Network 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, upon certain conditions, and DISH Network have the option to renew for an additional six-year period. If either we or DISH Network exercise our respective six-year renewal options, DISH Network has 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 option to renew this agreement will be exercised. We began to provide satellite services on EchoStar XVI to DISH Network in January 2013. | ||||||||||||||
Satellite and Tracking Stock Transaction. On February 20, 2014, we entered into agreements with DISH Network to implement a transaction pursuant to which, among other things: (i) on March 1, 2014, EchoStar and HSS issued shares of the Tracking Stock to DISH Network in exchange for five satellites owned by DISH Network (EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV) (including related in-orbit incentive obligations and interest payments of approximately $58.9 million) and approximately $11.4 million in cash; and (ii) on March 1, 2014, DISH Network began receiving certain satellite services on these five satellites from us. See Note 2 for further information. | ||||||||||||||
Nimiq 5 Agreement. During 2009, we 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 west longitude orbital location (the “Telesat Transponder Agreement”). During 2009, we also entered into a satellite service agreement (the “DISH Nimiq 5 Agreement”) with DISH Network, pursuant to which DISH Network receives satellite services from us on all 32 of the DBS transponders covered by the Telesat Transponder Agreement. | ||||||||||||||
Under the terms of the DISH Nimiq 5 Agreement, DISH Network makes certain monthly payments to us 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 it was placed into service. Upon expiration of the initial term, DISH Network has 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, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that any options to renew the DISH Nimiq 5 Agreement will be exercised or that DISH Network will exercise its option to receive service on a replacement satellite. | ||||||||||||||
QuetzSat-1 Agreement. During 2008, we entered into a ten-year satellite service agreement with SES Latin America, which provides, among other things, for the provision by SES Latin America to us of service on 32 DBS transponders on the QuetzSat-1 satellite. Concurrently, in 2008, we entered into a transponder service agreement with DISH Network, pursuant to which DISH Network receives satellite services on 24 of the DBS transponders on QuetzSat-1. QuetzSat-1 was launched on September 29, 2011 and was placed into service during the fourth quarter of 2011 at the 67.1 degree west longitude orbital location. In the interim, we provided DISH Network with alternate capacity at the 77 degree west longitude orbital location. During the third quarter of 2012, we and DISH Network entered into an agreement pursuant to which we receive certain satellite services from DISH Network on five DBS transponders on the QuetzSat-1 satellite on which DISH Network receives satellite services from us. In January 2013, QuetzSat-1 was moved to the 77 degree west longitude orbital location and DISH Network commenced commercial operations at such location in February 2013. | ||||||||||||||
Under the terms of our contractual arrangements with DISH Network, we began to provide service to DISH Network on the QuetzSat-1 satellite in February 2013 and will continue to provide service through the remainder of the service term. Unless extended or earlier terminated under the terms and conditions of our agreement with DISH Network for the QuetzSat-1 satellite, the initial service term will expire in November 2021. Upon expiration of the initial service term, DISH Network has the option to renew the agreement for the QuetzSat-1 satellite 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, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that any options to renew this agreement will be exercised or that DISH Network will exercise its option to receive service on a replacement satellite. | ||||||||||||||
103 Degree Orbital Location/SES-3. During May 2012, we 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 west longitude orbital location (the “103 Spectrum Rights”). During June 2013, we and DISH Network entered into a spectrum development agreement (the “DISH 103 Spectrum Development Agreement”) pursuant to which DISH Network may use and develop the 103 Spectrum Rights. During the third quarter 2013, DISH Network made a payment to us in exchange for these 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 Agreement. | ||||||||||||||
In connection with the 103 Spectrum Development Agreement, during May 2012, we also entered into a ten-year service agreement with Ciel pursuant to which we receive certain satellite services from Ciel on the SES-3 satellite at the 103 degree orbital location (the “103 Service Agreement”). During June 2013, we and DISH Network entered into an agreement pursuant to which DISH Network receives certain satellite services from us on the SES-3 satellite (the “DISH 103 Service Agreement”). Under the terms of the DISH 103 Service Agreement, DISH Network makes certain monthly payments to us 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, DISH Network has certain rights to receive service from us on a replacement satellite. There can be no assurance that DISH Network will exercise its option to receive service on a replacement satellite. | ||||||||||||||
TT&C Agreement. Effective January 1, 2012, we entered into a new telemetry, tracking and control (“TT&C”) agreement pursuant to which we provide TT&C services to DISH Network and its subsidiaries for a period ending on December 31, 2016 (the “2012 TT&C Agreement”). The 2012 TT&C Agreement replaced the TT&C agreement we entered into with DISH Network in connection with the Spin-off. 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. DISH Network is able to terminate the 2012 TT&C Agreement for any reason upon 60 days’ notice. | ||||||||||||||
In connection with the Satellite and Tracking Stock Transaction, on February 20, 2014, we amended the TT&C Agreement to cease the provision of TT&C services to DISH Network for the EchoStar I, EchoStar VII, EchoStar X, EchoStar XI and EchoStar XIV satellites. Effective March 1, 2014, we provide TT&C services for the D-1 and EchoStar XV satellites. | ||||||||||||||
Real Estate Lease Agreements. We have entered into lease agreements pursuant to which DISH Network leases certain real estate from us. 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 at the time of the lease, and DISH Network is responsible for its portion of the taxes, insurance, utilities and maintenance of the premises. The term of each of the leases 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. | ||||||||||||||
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 with a renewal option for one additional year. | ||||||||||||||
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. The lease for certain space at 801 N. DISH Dr. in Gilbert, Arizona is a month to month lease and can be terminated by either party upon 30 days’ prior notice. This lease was terminated in May 2014. | ||||||||||||||
Cheyenne Lease Agreement. The lease for certain space at 530 EchoStar Drive in Cheyenne, Wyoming is for a period ending on December 31, 2031. | ||||||||||||||
Product Support Agreement. In connection with the Spin-off, we entered into a product support agreement pursuant to which DISH Network has the right, but not the obligation, to receive product support from us (including certain engineering and technical support services) for all set-top boxes and related components that our subsidiaries have previously sold and in the future may sell to DISH Network. 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 set-top boxes and related components, unless terminated earlier. DISH Network 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, DISH Network is entitled to a refund of any unearned fees paid to us for the services. | ||||||||||||||
DISHOnline.com Services Agreement. Effective January 1, 2010, DISH Network entered into a two-year agreement with us pursuant to which DISH Network receives 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. DISH Network has the option to renew this agreement for three successive one year terms and the agreement may be terminated by DISH Network for any reason upon at least 120 days’ notice to us. In November 2013, DISH Network exercised its right to renew this agreement for a one-year period ending on December 31, 2014. | ||||||||||||||
DISH Remote Access Services Agreement. Effective February 23, 2010, we entered into an agreement with DISH Network pursuant to which DISH Network receives, among other things, certain remote digital video recorder (“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 has a term of five years with automatic renewal for successive one year terms and may be terminated by DISH Network for any reason upon at least 120 days’ notice to us. | ||||||||||||||
SlingService Services Agreement. Effective February 23, 2010, we entered into an agreement with DISH Network pursuant to which DISH Network receives certain services related to placeshifting. 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 has a term of five years with automatic renewal for successive one year terms and may be terminated by DISH Network for any reason upon at least 120 days’ notice to us. | ||||||||||||||
Blockbuster Agreements. On April 26, 2011, DISH Network acquired substantially all of the assets of Blockbuster, Inc. (the “Blockbuster Acquisition”). On June 8, 2011, we completed the acquisition of Hughes Communications, Inc. and its subsidiaries (the “Hughes Acquisition”). Hughes Network Systems, LLC (“HNS”), a wholly-owned subsidiary of Hughes Communications, Inc., provided certain broadband products and services to Blockbuster pursuant to an agreement that was entered into prior to the Blockbuster Acquisition and the Hughes Acquisition. Subsequent to both the Blockbuster Acquisition and the Hughes Acquisition, Blockbuster entered into a new agreement with HNS pursuant to which Blockbuster may continue to purchase broadband products and services from our Hughes segment (the “Blockbuster VSAT Agreement”). | ||||||||||||||
Effective February 1, 2014, all services to all Blockbuster locations, including Blockbuster franchisee locations, terminated in connection with the closing of all of the Blockbuster retail locations. | ||||||||||||||
Radio Access Network Agreement. On November 29, 2012, HNS entered into an agreement with DISH Network L.L.C. pursuant to which HNS will construct for DISH Network a ground-based satellite radio access network (“RAN”) for a fixed fee. The completion of the RAN under this agreement is expected to occur on or before November 29, 2014. This agreement generally may be terminated by DISH Network at any time for convenience. | ||||||||||||||
RUS Implementation Agreement. In September 2010, DISH Broadband L.L.C. (“DISH Broadband”), DISH Network’s wholly owned subsidiary, was selected by the Rural Utilities Service (“RUS”) of the United States Department of Agriculture to receive up to approximately $14.1 million in broadband stimulus grant funds (the “Grant Funds”). Effective November 2011, HNS and DISH Broadband entered into a RUS Implementation Agreement (the “RUS Agreement”) pursuant to which HNS provides certain portions of the equipment and broadband service used to implement DISH Broadband’s RUS program. The RUS Agreement expired in June 2013 when the Grant Funds were exhausted. | ||||||||||||||
TerreStar Agreement. On March 9, 2012, DISH Network completed its acquisition of substantially all the assets of TerreStar. Prior to DISH Network’s acquisition of substantially all the assets of TerreStar and our completion of the Hughes Acquisition, TerreStar and HNS entered into various agreements pursuant to which our Hughes segment provides, among other things, hosting, operations and maintenance services for TerreStar’s satellite gateway and associated ground infrastructure. These agreements generally may be terminated by DISH Network at any time for convenience. | ||||||||||||||
Hughes Broadband Distribution Agreement. Effective October 1, 2012, HNS and dishNET Satellite Broadband L.L.C. (“dishNET”), a wholly-owned subsidiary of DISH Network, entered into a distribution agreement (the “Distribution Agreement”) pursuant to which dishNET has the right, but not the obligation, to market, sell and distribute the Hughes satellite internet service (the “Hughes service”). dishNET pays HNS a monthly per subscriber wholesale service fee for the Hughes service based upon a subscriber’s service level, and, beginning January 1, 2014, based upon certain volume subscription thresholds. The Distribution Agreement also provides that dishNET has the right, but not the obligation, to purchase certain broadband equipment from us to support the sale of the Hughes service. The Distribution Agreement initially had a five year term with automatic renewal for successive one year terms unless terminated by either party with a written notice at least 180 days before the expiration of the then-current term. On February 20, 2014, HNS and dishNET entered into an amendment to the Distribution Agreement which, among other things, extended the initial term of the Distribution Agreement through March 1, 2024. Upon expiration or termination of the Distribution Agreement, the parties will continue to provide the Hughes service to the then-current dishNET subscribers pursuant to the terms and conditions of the Distribution Agreement. | ||||||||||||||
Set-Top Box Application Development Agreement. During the fourth quarter of 2012, we and DISH Network entered into a set-top box application development agreement (the “Application Development Agreement”) pursuant to which we provide DISH Network with certain services relating to the development of web-based applications for the period ending February 1, 2015. The Application Development Agreement renews automatically for successive one-year periods thereafter, unless terminated earlier by us or DISH Network at any time upon at least 90 days’ notice. The fees for services provided under the Application Development Agreement are calculated at our 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 of 2012, we entered into an encryption agreement with DISH Network for our whole-home HD DVR line of set-top boxes (the “XiP Encryption Agreement”) pursuant to which we provide 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 term of the XiP Encryption Agreement is until December 31, 2014. Under the XiP Encryption Agreement, DISH Network has an option, but not the obligation to extend the XiP Encryption Agreement for one additional year upon at least 180 days’ notice prior to the end of the term. We and DISH Network each have the right to terminate the XiP Encryption Agreement for any reason upon at least 180 days’ notice and 30 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. | ||||||||||||||
DBSD North America Agreement. On March 9, 2012, DISH Network completed its acquisition of 100% of the equity of reorganized DBSD North America, Inc. (“DBSD North America”). Prior to DISH Network’s acquisition of DBSD North America and our completion of the Hughes Acquisition, DBSD North America and HNS entered into an agreement pursuant to which our Hughes segment provides, among other things, hosting, operations and maintenance services of DBSD North America’s satellite gateway and associated ground infrastructure. This agreement was renewed for a one-year period ending on February 15, 2015, and renews for two successive one-year periods unless terminated by DBSD North America upon at least 30 days’ notice prior to the expiration of any renewal term. | ||||||||||||||
DISH Digital Holding L.L.C. Effective July 1, 2012, we and DISH Network formed DISH Digital Holding, L.L.C. (“DISH Digital”), which was owned two-thirds by DISH Network and one-third by EchoStar. DISH Digital was formed to develop and commercialize certain advanced technologies. At that time, we, DISH Network and DISH Digital entered into the following agreements with respect to DISH Digital: (i) a contribution agreement pursuant to which we and DISH Network contributed certain assets in exchange for our respective ownership interests in DISH Digital; (ii) a limited liability company operating agreement (“Operating Agreement”), which provides for the governance of DISH Digital; and (iii) a commercial agreement (“Commercial Agreement”) pursuant to which, among other things, DISH Digital 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 us and DISH Network, respectively. Effective August 1, 2014, we and DISH Digital entered into an exchange agreement (the “Exchange Agreement”) pursuant to which, among other things, DISH Digital distributed certain assets to us and we reduced our interest in DISH Digital to a ten percent non-voting interest. DISH Network now has a ninety percent equity interest and a 100% voting interest in DISH Digital. In addition, we, DISH Network and DISH Digital amended and restated the Operating Agreement, primarily to reflect the changes implemented by the Exchange Agreement. Finally, we, DISH Network and DISH Digital amended and restated the Commercial Agreement, pursuant to which, among other things, DISH Digital: (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 DISH Network; and (3) has a license from us to use certain of the assets distributed to us as part of the Exchange Agreement. As of June 30, 2014, we accounted for our investment in DISH Digital using the equity method. | ||||||||||||||
“Cost of sales — equipment — DISH Network” | ||||||||||||||
Remanufactured Receiver Agreement. In connection with the Spin-off, we entered into a remanufactured receiver agreement with DISH Network pursuant to which we have the right, but not the obligation, to purchase remanufactured receivers and related components from DISH Network at cost plus a fixed margin, which varies depending on the nature of the equipment purchased. In November 2013, we and DISH Network extended this agreement until December 31, 2014. We may terminate the remanufactured receiver agreement for any reason upon at least 60 days’ notice to DISH Network. DISH Network may also terminate this agreement if certain entities acquire it. | ||||||||||||||
“Cost of sales — services and other — DISH Network” | ||||||||||||||
Satellite Services Received from DISH Network. Since the Spin-off, we entered into certain satellite services agreements pursuant to which we acquire certain satellite services from DISH Network on certain satellites owned or leased by DISH Network. The fees for the services provided under these satellite services agreements depend, among other things, upon the orbital location of the applicable satellite, the number of transponders that are providing services on the applicable satellite and the length of the service term. The term of each satellite service agreement is set forth below: | ||||||||||||||
D-1. In November 2012, HNS entered into a satellite service agreement pursuant to which HNS receives satellite services from DISH Network on the D-1 satellite for research and development. This lease terminated on June 30, 2014. | ||||||||||||||
EchoStar XV. In May 2013, we began receiving satellite services from DISH Network on EchoStar XV and relocated the satellite to the 45 degree west longitude orbital location for testing pursuant to our Brazilian authorization. Effective March 1, 2014, this satellite services agreement converted to a month-to-month lease. Both parties have the right to terminate this lease upon 30 days’ notice. | ||||||||||||||
“General and administrative expenses — DISH Network” | ||||||||||||||
Management Services Agreement. In connection with the Spin-off, we entered into a Management Services Agreement with DISH Network pursuant to which DISH Network made certain of its officers available to provide services (which were primarily accounting services) to us. Effective June 15, 2013, we terminated the Management Services Agreement. | ||||||||||||||
Professional Services Agreement. In connection with the Spin-off, we entered into various agreements with DISH Network 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, we and DISH Network agreed that we 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, we and DISH Network agreed that DISH Network shall continue to have the right, but not the obligation, to engage us to manage the process of procuring new satellite capacity for DISH Network (previously provided under the Satellite Procurement Agreement), receive logistics, procurement and quality assurance services from us (previously provided under the Services Agreement) and other support services. The Professional Services Agreement automatically renewed on January 1, 2014 for an additional one-year period and renews automatically for successive one-year periods thereafter, unless terminated earlier by either party upon at least 60 days’ notice. However, either party may terminate the Professional Services Agreement in part with respect to any particular service it receives for any reason upon at least 30 days’ notice. | ||||||||||||||
Real Estate Lease Agreements. Since the Spin-off, we have entered into lease agreements pursuant to which we lease certain real estate from DISH Network. 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 at the time of the lease, and we are responsible for our portion of the taxes, insurance, utilities and maintenance of the premises. The term of each of the leases is set forth below: | ||||||||||||||
El Paso Lease Agreement. The lease for certain space at 1285 Joe Battle Blvd. El Paso, Texas is for a period ending on August 1, 2015, and provides us with renewal options for four consecutive three year terms. | ||||||||||||||
American Fork Occupancy License Agreement. The license for certain space at 796 East Utah Valley Drive in American Fork, Utah is for a period ending on July 31, 2017, subject to the terms of the underlying lease agreement. | ||||||||||||||
“Other agreements — DISH Network” | ||||||||||||||
Tax Sharing Agreement. In connection with the Spin-off, we entered into a tax sharing agreement with DISH Network which governs our respective rights, responsibilities and obligations after the Spin-off with respect to taxes for the periods ending on or before the Spin-off. Generally, all pre-Spin-off taxes, including any taxes that are incurred as a result of restructuring activities undertaken to implement the Spin-off, are borne by DISH Network, and DISH Network will indemnify us for such taxes. However, DISH Network is not liable for and will not indemnify us for any taxes that are incurred as a result of the Spin-off or certain related transactions failing to qualify as tax-free distributions pursuant to any provision of Section 355 or Section 361 of the Internal Revenue Code of 1986, as amended because of: (i) a direct or indirect acquisition of any of our stock, stock options or assets; (ii) any action that we take or fail to take; or (iii) any action that we take that is inconsistent with the information and representations furnished to the IRS in connection with the request for the private letter ruling, or to counsel in connection with any opinion being delivered by counsel with respect to the Spin-off or certain related transactions. In such case, we will be solely liable for, and will indemnify DISH Network for, any resulting taxes, as well as any losses, claims and expenses. The tax sharing agreement will only terminate after the later of the full period of all applicable statutes of limitations, including extensions, or once all rights and obligations are fully effectuated or performed. | ||||||||||||||
In light of the tax sharing agreement, among other things, and in connection with our consolidated federal income tax returns for certain tax years prior to and for the year of the Spin-off, during the third quarter of 2013, we and DISH Network agreed upon a supplemental allocation of the tax benefits arising from certain tax items resolved in the course of the IRS’s examination of our consolidated tax returns. Prior to the agreement with DISH Network, the federal tax benefits of $83.2 million were reflected as a deferred tax asset for depreciation and amortization, which was netted in our noncurrent deferred tax liabilities. The agreement requires DISH Network to pay us $83.2 million of the federal tax benefit it receives at such time as we would have otherwise been able to realize such tax benefit, which we currently estimate would be after 2015. Accordingly, we recorded a noncurrent receivable from DISH Network for $83.2 million in “Other receivable — DISH Network” and a corresponding increase in our net noncurrent deferred tax liabilities to reflect the effects of this agreement in the third quarter of 2013. In addition, during the third quarter of 2013, we and DISH Network agreed upon a tax sharing arrangement for filing certain combined state income tax returns and a method of allocating the respective tax liabilities between us and DISH Network for such combined returns, through the taxable period ending on December 31, 2017. | ||||||||||||||
TiVo. On April 29, 2011, we and DISH Network entered into a settlement agreement with TiVo, Inc. (“TiVo”). The settlement resolved all pending litigation between us and DISH Network, on the one hand, and TiVo, on the other hand, including litigation relating to alleged patent infringement involving certain DISH Network DVRs. | ||||||||||||||
Under the settlement agreement, all pending litigation was dismissed with prejudice and all injunctions that permanently restrain, enjoin or compel any action by us or DISH Network were dissolved. We and DISH Network are jointly responsible for making payments to TiVo in the aggregate amount of $500.0 million, including an initial payment of $300.0 million and the remaining $200.0 million in six equal annual installments between 2012 and 2017. Pursuant to the terms and conditions of the agreements entered into in connection with the Spin-off, DISH Network made the initial payment to TiVo in May 2011, except for the contribution from us totaling approximately $10.0 million, representing an allocation of liability relating to our sales of DVR-enabled receivers to an international customer. Future payments will be allocated between us and DISH Network based on historical sales of certain licensed products, with EchoStar being responsible for 5% of each annual payment. | ||||||||||||||
Patent Cross-License Agreements. During December 2011, we and DISH Network entered into separate patent cross-license agreements with the same third party whereby: (i) we and such third party licensed our respective patents to each other subject to certain conditions; and (ii) DISH Network and such third party licensed their respective patents to each other subject to certain conditions (each, a “Cross-License Agreement”). Each Cross-License Agreement covers patents acquired by the respective party prior to January 1, 2017 and aggregate payments under both Cross-License Agreements total less than $10.0 million. Each Cross-License Agreement also contains an option to extend each Cross-License Agreement to include patents acquired by the respective party prior to January 1, 2022. If both options are exercised, the aggregate additional payments to such third party would total less than $3.0 million. However, we and DISH Network may elect to extend our respective Cross-License Agreement independently of each other. Since the aggregate payments under both Cross-License Agreements were based on the combined annual revenue of us and DISH Network, we and DISH Network agreed to allocate our respective payments to such third party based on our respective percentage of combined total revenue. | ||||||||||||||
TerreStar-2 Development Agreement. In August 2013, we and DISH Network entered into a development agreement (“T2 Development Agreement”) with respect to the TerreStar-2/EchoStar XXI (“T2/EchoStar XXI”) satellite under which we reimburse DISH Network for amounts it pays pursuant to an authorization to proceed (“T2 ATP”) with SSL in connection with the construction of the T2/EchoStar XXI satellite. In exchange, DISH Network granted us certain rights to purchase the T2/EchoStar XXI satellite during the term of the T2 Development Agreement. The T2 Development Agreement was amended in December 2013 to provide for the ability to purchase DISH Network’s rights and obligations under the T2 ATP and the related agreement for the construction of the T2/EchoStar XXI satellite with SSL. The T2 Development Agreement expires on the later of: (i) December 19, 2014, or (ii) the date on which the T2 ATP expires. | ||||||||||||||
Roger J. Lynch Agreement. In November 2009, Mr. Roger J. Lynch became employed by both us and DISH Network as Executive Vice President. Mr. Lynch is responsible for the development and implementation of advanced technologies that are of potential utility and importance to both us and DISH Network. Mr. Lynch’s compensation consists of cash and equity compensation and is borne by both DISH Network and us. | ||||||||||||||
Other Agreements | ||||||||||||||
Hughes Systique Corporation (“Hughes Systique”) | ||||||||||||||
We contract with Hughes Systique for software development services. In February 2008, Hughes agreed to make available to Hughes Systique a term loan facility of up to $1.5 million. Also in 2008, Hughes funded an initial $0.5 million to Hughes Systique pursuant to the term loan facility. In 2009, HNS funded the remaining $1.0 million of its $1.5 million commitment under the term loan facility. The loans bear interest at 6%, payable annually, and are convertible into shares of Hughes Systique upon non-payment or an event of default. As a result, the Company is not obligated to provide any further funding to Hughes Systique under the term loan facility. In May 2014, Hughes and Hughes Systique entered into an amendment to the term loan facility to increase the interest rate from 6% to 8%, payable annually, to reflect current market conditions. The loans, as amended, mature on May 1, 2015. In addition to our 44.4% ownership in Hughes Systique, Mr. Pradman Kaul, the President of Hughes Communications, Inc. and a member of our Board of Directors and his brother, who is the CEO and President of Hughes Systique, in the aggregate, owned approximately 26.1%, on an undiluted basis, of Hughes Systique’s outstanding shares as of June 30, 2014. Furthermore, Mr. Pradman Kaul serves on the board of directors of Hughes Systique. We are considered the “primary beneficiary” of Hughes Systique due to, among other factors, our ability to significantly influence and direct the operating and financial decisions of Hughes Systique and our obligation to provide financial support in the form of term loans. As a result, we are required to consolidate Hughes Systique’s financial statements in our Condensed Consolidated Financial Statements. | ||||||||||||||
NagraStar L.L.C. | ||||||||||||||
We own 50% of NagraStar L.L.C. (“NagraStar”), a joint venture that is our primary provider of encryption and related security technology used in our set-top boxes. We account for our investment in NagraStar using the equity method. | ||||||||||||||
The table below summarizes our transactions with NagraStar. | ||||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Purchases from NagraStar | $ | 6,421 | $ | 3,799 | $ | 9,566 | $ | 8,192 | ||||||
As of | ||||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Due to NagraStar | $ | 831 | $ | 1,211 | ||||||||||
Commitments to purchase from NagraStar | $ | 6,337 | $ | 5,874 | ||||||||||
Dish Mexico | ||||||||||||||
During 2008, we entered into a joint venture for a direct-to-home satellite service in Mexico known as Dish Mexico. Pursuant to these arrangements, we provide certain broadcast services and satellite capacity and sell hardware such as digital set-top boxes and related equipment to Dish Mexico. We account for our investment in Dish Mexico using the equity method. | ||||||||||||||
The following table summarizes services we provided to Dish Mexico that are not related to the original contribution commitment associated with our investment. | ||||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Digital set-top boxes and related accessories | $ | 17,006 | $ | 10,459 | $ | 25,405 | $ | 25,852 | ||||||
Satellite services | $ | 5,837 | $ | 6,180 | $ | 11,674 | $ | 10,967 | ||||||
Uplink services | $ | 1,510 | $ | 1,676 | $ | 3,215 | $ | 3,155 | ||||||
Other services | $ | — | $ | 18 | — | $ | 18 | |||||||
As of | ||||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Due from Dish Mexico | $ | 11,327 | $ | 3,506 | ||||||||||
Deluxe/EchoStar LLC | ||||||||||||||
We own 50% of Deluxe/EchoStar LLC (“Deluxe”), a joint venture that we entered into in 2010 to build an advanced digital cinema satellite distribution network targeting delivery to digitally equipped theaters in the U.S. and Canada. We account for our investment in Deluxe using the equity method. We recognized revenue from Deluxe for transponder services and the sale of broadband equipment of $0.8 million and $0.5 million for the three months ended June 30, 2014 and 2013, respectively, and $1.7 million and $0.9 million for the six months ended June 30, 2014 and 2013, respectively. As of June 30, 2014 and December 31, 2013, we had receivables from Deluxe of approximately $1.0 million and $1.1 million, respectively. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
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 U.S. (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information and notes required for complete financial statements prepared in accordance with 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, 2013. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
We consolidate all majority owned subsidiaries, investments in entities in which we have controlling interest and variable interest entities where we are the primary beneficiary. For entities we control but do not wholly-own, we record a noncontrolling interest within stockholders’ equity for the portion of the entity’s equity attributed to the noncontrolling ownership interests. For the noncontrolling interest in the HSS Tracking Stock, we periodically attribute a portion of HSS net income or loss to the noncontrolling interest in HSS Tracking Stock with such portion equal to the economic interest (currently 28.11%) in the Hughes Retail Group represented by the HSS Tracking Stock, as determined in accordance with the Policy Statements and other documents governing the Tracking Stock. We use the equity method to account for investments in entities that we do not control but 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 the investee, the cost method is used. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in accordance with GAAP requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheets, the reported amounts of revenue and expense for each reporting period, and certain information disclosed in the notes to the Condensed Consolidated Financial Statements. Estimates are used in accounting for, among other things, amortization periods of deferred revenue and deferred subscriber acquisition costs, percentage-of-completion related to revenue recognition, allowances for doubtful accounts, allowances for sales returns and rebates, warranty obligations, self-insurance obligations, deferred taxes and related valuation allowances, uncertain tax positions, loss contingencies, fair value of financial instruments, fair value of our stock-based compensation plans, fair value of assets and liabilities acquired in business combinations, lease classifications, asset impairments, useful lives and amortization methods of property, equipment and intangible assets, goodwill impairment testing, royalty obligations, and allocations to HRG that affect the periodic determination of net income or loss attributable to the noncontrolling interest in the HSS Tracking Stock. We base our estimates and assumptions on historical experience and on various other factors that we believe to be relevant under the circumstances. Weakened economic conditions may increase the inherent uncertainty in the estimates and assumptions indicated above. Due to the inherent uncertainty involved in making estimates, 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 in the period they occur or prospectively if the revised estimate affects future periods. | |
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 utilize the highest level of inputs available according to 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; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; 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. | |
Transfers between levels in the fair value hierarchy are considered to occur at the beginning of the quarterly accounting period. There were no transfers between levels for the six months ended June 30, 2014 or 2013. | |
As of June 30, 2014 and December 31, 2013, the carrying amount of our cash and cash equivalents, trade accounts receivable, net of allowance for doubtful accounts, accounts payable and accrued liabilities were equal to or approximated fair value due to their short-term nature or proximity to current market rates. | |
Fair values of our current marketable investment securities are based on a variety of observable market inputs. For our investments in publicly traded equity securities, fair value ordinarily is determined based on a Level 1 measurement that reflects quoted prices for identical securities in active markets. Fair values of our investments in marketable debt securities generally are based on Level 2 measurements, as the markets for debt securities are less active. Trades of identical debt securities on or near the measurement date are considered a strong indication of fair value. Matrix pricing techniques that consider par value, coupon rate, credit quality, maturity and other relevant features also may be used to determine fair value of our investments in marketable debt securities. | |
Fair values for our publicly traded long-term debt are based on quoted market prices in less active markets and are categorized as Level 2 measurements. The fair values of our privately held debt are Level 2 measurements and are estimated to approximate their carrying amounts based on the proximity of their interest rates to current market rates. See Note 11 for the fair value of our long-term debt. As of June 30, 2014 and December 31, 2013, the fair values of our orbital incentive obligations, based on measurements categorized within Level 2 of the fair value hierarchy, approximated their carrying amounts of $89.0 million and $48.4 million, respectively. We use fair value measurements from time-to-time in connection with impairment testing and the assignment of purchase consideration to assets and liabilities of acquired companies that typically include significant unobservable inputs and are categorized within Level 3 of the fair value hierarchy. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). It outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” ASU 2014-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods and may be applied either retrospectively to prior periods or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. Management has not selected a transition method and is assessing the impact of adopting this new accounting standard on our financial statements and related disclosures. |
Hughes_Retail_Preferred_Tracki1
Hughes Retail Preferred Tracking Stock (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Hughes Retail Preferred Tracking Stock | ' | ||||||||||
Schedule of carrying amounts of net assets transferred from DISH Network to EchoStar and HSS | ' | ||||||||||
EchoStar(1) | HSS | Total | |||||||||
(In thousands) | |||||||||||
Cash | $ | — | $ | 11,404 | $ | 11,404 | |||||
Property and equipment, net | 349,243 | 82,837 | 432,080 | ||||||||
Current liabilities | (3,479 | ) | (3,076 | ) | (6,555 | ) | |||||
Noncurrent liabilities | (30,121 | ) | (8,713 | ) | (38,834 | ) | |||||
Transferred net assets | $ | 315,643 | $ | 82,452 | $ | 398,095 | |||||
(1) All of the net assets received by EchoStar as part of the Satellite and Tracking Stock Transaction were immediately transferred to HSS and are being used by our EchoStar Satellite Services segment. | |||||||||||
Schedule of net amounts credited to stockholders' equity | ' | ||||||||||
EchoStar | Noncontrolling | ||||||||||
Stockholders | Interest | Total | |||||||||
(In thousands) | |||||||||||
Transferred net assets | $ | 315,643 | $ | 82,452 | $ | 398,095 | |||||
Offering costs, net of tax | (2,302 | ) | (610 | ) | (2,912 | ) | |||||
Deferred income taxes | (114,525 | ) | (29,971 | ) | (144,496 | ) | |||||
Reallocation based on relative liquidation values | (35,300 | ) | 35,300 | — | |||||||
Net increase in stockholders’ equity | $ | 163,516 | $ | 87,171 | $ | 250,687 |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Earnings per Share | ' | |||||||||||||
Tabular disclosure of the effect of income (loss) on the entity's basic and diluted earnings per share | ' | |||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands, except per share amounts) | ||||||||||||||
Net income (loss) attributable to EchoStar | $ | 30,805 | $ | (9,759 | ) | $ | 42,859 | $ | (6,301 | ) | ||||
Net income (loss) attributable to EchoStar Tracking Stock | (2,989 | ) | — | (3,587 | ) | — | ||||||||
Net income (loss) attributable to EchoStar common stock | $ | 33,794 | $ | (9,759 | ) | $ | 46,446 | $ | (6,301 | ) | ||||
Weighted-average common shares outstanding : | ||||||||||||||
Class A and B common stock: | ||||||||||||||
Basic | 91,097 | 88,179 | 90,894 | 88,681 | ||||||||||
Dilutive impact of stock awards outstanding | 1,617 | — | 1,652 | — | ||||||||||
Diluted | 92,714 | 88,179 | 92,546 | 88,681 | ||||||||||
Earnings per share: | ||||||||||||||
Class A and B common stock: | ||||||||||||||
Basic | $ | 0.37 | $ | (0.11 | ) | $ | 0.51 | $ | (0.07 | ) | ||||
Diluted | $ | 0.36 | $ | (0.11 | ) | $ | 0.5 | $ | (0.07 | ) |
Investment_Securities_Tables
Investment Securities (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Investment Securities | ' | |||||||||||||||||||
Schedule of marketable investment securities, restricted cash and cash equivalents, and other investments | ' | |||||||||||||||||||
As of | ||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Marketable investment securities—current: | ||||||||||||||||||||
Corporate bonds | $ | 858,451 | $ | 833,791 | ||||||||||||||||
VRDNs | 31,095 | 34,705 | ||||||||||||||||||
Strategic equity securities | 32,715 | 33,613 | ||||||||||||||||||
Other | 58,042 | 84,424 | ||||||||||||||||||
Total marketable investment securities—current | 980,303 | 986,533 | ||||||||||||||||||
Restricted marketable investment securities (1) | 10,560 | 7,965 | ||||||||||||||||||
Total | 990,863 | 994,498 | ||||||||||||||||||
Restricted cash and cash equivalents (1) | 8,619 | 8,172 | ||||||||||||||||||
Other investments—noncurrent: | ||||||||||||||||||||
Cost method | 25,977 | 25,977 | ||||||||||||||||||
Equity method | 133,623 | 143,794 | ||||||||||||||||||
Total other investments—noncurrent | 159,600 | 169,771 | ||||||||||||||||||
Total marketable investment securities, restricted cash and cash equivalents, and other investments | $ | 1,159,082 | $ | 1,172,441 | ||||||||||||||||
(1) Restricted marketable investment securities and restricted cash and cash equivalents are included in “Restricted cash and marketable investment securities” in our Condensed Consolidated Balance Sheets. | ||||||||||||||||||||
Schedule of unrealized gains (losses) on marketable investment securities | ' | |||||||||||||||||||
Amortized | Unrealized | Estimated | ||||||||||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
Corporate bonds | $ | 858,406 | $ | 304 | $ | (259 | ) | $ | 858,451 | |||||||||||
VRDNs | 31,095 | — | — | 31,095 | ||||||||||||||||
Other (including restricted) | 68,583 | 20 | (1 | ) | 68,602 | |||||||||||||||
Equity securities - strategic | 17,904 | 14,811 | — | 32,715 | ||||||||||||||||
Total marketable investment securities | $ | 975,988 | $ | 15,135 | $ | (260 | ) | $ | 990,863 | |||||||||||
As of December 31, 2013 | ||||||||||||||||||||
Debt securities: | ||||||||||||||||||||
Corporate bonds | $ | 833,888 | $ | 227 | $ | (324 | ) | $ | 833,791 | |||||||||||
VRDNs | 34,705 | — | — | 34,705 | ||||||||||||||||
Other (including restricted) | 92,876 | 14 | (501 | ) | 92,389 | |||||||||||||||
Equity securities - strategic | 15,272 | 18,341 | — | 33,613 | ||||||||||||||||
Total marketable investment securities | $ | 976,741 | $ | 18,582 | $ | (825 | ) | $ | 994,498 | |||||||||||
Schedule of available-for-sale securities in continuous unrealized loss position by length of time and their fair value | ' | |||||||||||||||||||
As of | ||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | |||||||||||||||||
Value | Losses | Value | Losses | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Less than 12 months | $ | 477,201 | $ | (256 | ) | $ | 571,592 | $ | (825 | ) | ||||||||||
12 months or more | 12,041 | (4 | ) | — | — | |||||||||||||||
Total | $ | 489,242 | $ | (260 | ) | $ | 571,592 | $ | (825 | ) | ||||||||||
Schedule of fair value measurements | ' | |||||||||||||||||||
As of | ||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||
Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash equivalents (including restricted) | $ | 593,659 | $ | 7,864 | $ | 585,795 | $ | 548,714 | $ | 49,338 | $ | 499,376 | ||||||||
Debt securities: | ||||||||||||||||||||
Corporate bonds | $ | 858,451 | $ | — | $ | 858,451 | $ | 833,791 | $ | — | $ | 833,791 | ||||||||
VRDNs | 31,095 | — | 31,095 | 34,705 | — | 34,705 | ||||||||||||||
Other (including restricted) | 68,602 | — | 68,602 | 92,389 | — | 92,389 | ||||||||||||||
Equity securities - strategic | 32,715 | 32,715 | — | 33,613 | 33,613 | — | ||||||||||||||
Total marketable investment securities | $ | 990,863 | $ | 32,715 | $ | 958,148 | $ | 994,498 | $ | 33,613 | $ | 960,885 |
Trade_Accounts_Receivable_Tabl
Trade Accounts Receivable (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Trade Accounts Receivable | ' | |||||||
Schedule of trade accounts receivable | ' | |||||||
As of | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Trade accounts receivable | $ | 179,025 | $ | 164,900 | ||||
Contracts in process, net | 9,554 | 7,629 | ||||||
Total trade accounts receivable | 188,579 | 172,529 | ||||||
Allowance for doubtful accounts | (14,766 | ) | (13,237 | ) | ||||
Trade accounts receivable - DISH Network | 318,351 | 355,135 | ||||||
Total trade accounts receivable, net | $ | 492,164 | $ | 514,427 |
Inventory_Tables
Inventory (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventory | ' | |||||||
Schedule of inventory | ' | |||||||
As of | ||||||||
June 30, | December 31, | |||||||
2014 | 2013 | |||||||
(In thousands) | ||||||||
Finished goods | $ | 49,246 | $ | 50,357 | ||||
Raw materials | 6,203 | 8,658 | ||||||
Work-in-process | 8,509 | 7,069 | ||||||
Total inventory | $ | 63,958 | $ | 66,084 |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Property and Equipment | ' | |||||||||||||
Schedule of property and equipment | ' | |||||||||||||
Depreciable | As of | |||||||||||||
Life | June 30, | December 31, | ||||||||||||
(In Years) | 2014 | 2013 | ||||||||||||
(In thousands) | ||||||||||||||
Land | — | $ | 42,574 | $ | 42,850 | |||||||||
Buildings and improvements | Mar-40 | 380,758 | 377,208 | |||||||||||
Furniture, fixtures, equipment and other | 12-Jan | 1,192,990 | 1,157,325 | |||||||||||
Customer rental equipment | 4-Feb | 436,998 | 374,688 | |||||||||||
Satellites - owned | 15-Feb | 2,381,120 | 1,949,040 | |||||||||||
Satellites acquired under capital leases | 15-Oct | 935,104 | 935,104 | |||||||||||
Construction in progress | — | 361,716 | 210,051 | |||||||||||
Total property and equipment | 5,731,260 | 5,046,266 | ||||||||||||
Accumulated depreciation | (2,703,563 | ) | (2,499,889 | ) | ||||||||||
Property and equipment, net | $ | 3,027,697 | $ | 2,546,377 | ||||||||||
Schedule of construction in progress | ' | |||||||||||||
As of | ||||||||||||||
June 30, | December 31, | |||||||||||||
Segment | 2014 | 2013 | ||||||||||||
(In thousands) | ||||||||||||||
Progress amounts for satellite construction, including certain amounts prepaid under satellite service agreements and launch costs: | ||||||||||||||
EchoStar XIX | Other | $ | 223,981 | $ | 122,070 | |||||||||
TerreStar-2/EchoStar XXI | Other | 55,354 | 16,433 | |||||||||||
EchoStar XXIII | Other | 22,981 | 19,210 | |||||||||||
EUTELSAT 65W A | Hughes | 10,337 | — | |||||||||||
Other | Other/ESS | 4,440 | 4,950 | |||||||||||
Uplinking equipment | ETC/Hughes | 24,245 | 20,793 | |||||||||||
Other | ETC/Hughes/ESS | 20,378 | 26,595 | |||||||||||
Construction in progress | $ | 361,716 | $ | 210,051 | ||||||||||
Schedule of depreciation expense | ' | |||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Satellites | $ | 55,576 | $ | 46,529 | $ | 103,139 | $ | 93,073 | ||||||
Furniture, fixtures, equipment and other | 29,161 | 32,805 | 59,052 | 64,771 | ||||||||||
Customer rental equipment | 29,016 | 23,793 | 56,908 | 47,080 | ||||||||||
Buildings and improvements | 3,413 | 3,366 | 6,943 | 6,681 | ||||||||||
Total depreciation expense | $ | 117,166 | $ | 106,493 | $ | 226,042 | $ | 211,605 | ||||||
Schedule of satellites | ' | |||||||||||||
Nominal Degree | Depreciable | |||||||||||||
Launch | Orbital Location | Life | ||||||||||||
Satellites | Segment | Date | (Longitude) | (In Years) | ||||||||||
Owned: | ||||||||||||||
SPACEWAY 3 (5) | Hughes | August 2007 | 95 W | 12 | ||||||||||
EchoStar XVII | Hughes | July 2012 | 107 W | 15 | ||||||||||
EchoStar I (1)(2)(3) | ESS | December 1995 | 77 W | — | ||||||||||
EchoStar III (3) | ESS | October 1997 | 61.5 W | 12 | ||||||||||
EchoStar VI (3) | ESS | July 2000 | 96.2 W | 12 | ||||||||||
EchoStar VII (1)(2) | ESS | February 2002 | 119 W | 3 | ||||||||||
EchoStar VIII (1) | ESS | August 2002 | 77 W | 12 | ||||||||||
EchoStar XII (1)(6) | ESS | July 2003 | 61.5 W | 2 | ||||||||||
EchoStar IX (1) | ESS | August 2003 | 121 W | 12 | ||||||||||
EchoStar X (1)(2) | ESS | February 2006 | 110 W | 7 | ||||||||||
EchoStar XI (1)(2) | ESS | July 2008 | 110 W | 9 | ||||||||||
EchoStar XIV (1)(2) | ESS | March 2010 | 119 W | 11 | ||||||||||
EchoStar XVI (1) | ESS | November 2012 | 61.5 W | 15 | ||||||||||
EUTELSAT 10A (“W2A”) (7) | Other | April 2009 | 10 E | — | ||||||||||
Leased from Third Parties (4): | ||||||||||||||
AMC-15 | ESS | October 2004 | 105 W | 10 | ||||||||||
AMC-16 | ESS | December 2004 | 85 W | 10 | ||||||||||
Nimiq 5 (1) | ESS | September 2009 | 72.7 W | 15 | ||||||||||
QuetzSat-1 (1) | ESS | September 2011 | 77 W | 10 | ||||||||||
(1) See Note 16 for further discussion of our transactions with DISH Network. | ||||||||||||||
(2) Depreciable life represents the remaining useful life as of March 1, 2014, the effective date of our receipt of the satellites from DISH Network as part of the Satellite and Tracking Stock Transaction (See Note 2). | ||||||||||||||
(3) Fully depreciated assets. | ||||||||||||||
(4) These satellites are accounted for as capital leases and their launch dates represent dates that the satellites were placed into service. | ||||||||||||||
(5) Depreciable life represents the remaining useful life as of the date of the Hughes Acquisition (as defined below). | ||||||||||||||
(6) Depreciable life represents the remaining useful life as of June 30, 2013, the date EchoStar XII was impaired. | ||||||||||||||
(7) The Company acquired the S-band payload on this satellite, which prior to the acquisition in December 2013, experienced an anomaly at the time of the launch. As a result, the S-band payload is not fully operational. |
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||||||||
Schedule of regulatory authorizations with finite and indefinite useful lives | ' | |||||||||||||||||||||
As of | ||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Finite useful lives: | ||||||||||||||||||||||
Cost | $ | 117,238 | $ | 113,764 | ||||||||||||||||||
Accumulated amortization | (4,727 | ) | (1,521 | ) | ||||||||||||||||||
Net | 112,511 | 112,243 | ||||||||||||||||||||
Indefinite lives | 471,657 | 471,657 | ||||||||||||||||||||
Total regulatory authorizations, net | $ | 584,168 | $ | 583,900 | ||||||||||||||||||
Schedule of other intangible assets subject to amortization | ' | |||||||||||||||||||||
Weighted | As of | |||||||||||||||||||||
Average | June 30, 2014 | December 31, 2013 | ||||||||||||||||||||
Useful life | Accumulated | Carrying | Accumulated | Carrying | ||||||||||||||||||
(in Years) | Cost | Amortization | Amount | Cost | Amortization | Amount | ||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Customer relationships | 8 | $ | 293,932 | $ | (169,020 | ) | $ | 124,912 | $ | 293,932 | $ | (152,647 | ) | $ | 141,285 | |||||||
Contract-based | 10 | 255,366 | (221,674 | ) | 33,692 | 255,366 | (204,835 | ) | 50,531 | |||||||||||||
Technology-based | 7 | 126,272 | (92,257 | ) | 34,015 | 126,272 | (83,580 | ) | 42,692 | |||||||||||||
Trademark portfolio | 20 | 29,700 | (4,579 | ) | 25,121 | 29,700 | (3,836 | ) | 25,864 | |||||||||||||
Favorable leases | 4 | 4,707 | (3,628 | ) | 1,079 | 4,707 | (3,040 | ) | 1,667 | |||||||||||||
Total other intangible assets | $ | 709,977 | $ | (491,158 | ) | $ | 218,819 | $ | 709,977 | $ | (447,938 | ) | $ | 262,039 |
Debt_and_Capital_Lease_Obligat1
Debt and Capital Lease Obligations (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Debt and Capital Lease Obligations | ' | |||||||||||||||
Schedule of carrying amounts and fair values of the entity's debt | ' | |||||||||||||||
As of | ||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||
Interest | Carrying | Fair | Carrying | Fair | ||||||||||||
Rates | Amount | Value | Amount | Value | ||||||||||||
(In thousands) | ||||||||||||||||
6 1/2% Senior Secured Notes due 2019 | 6.50% | $ | 1,100,000 | $ | 1,226,500 | $ | 1,100,000 | $ | 1,193,500 | |||||||
7 5/8% Senior Notes due 2021 | 7.63% | 900,000 | 1,030,500 | 900,000 | 1,001,250 | |||||||||||
Other | 5.50% - 15.75% | 1,334 | 1,334 | 1,588 | 1,588 | |||||||||||
Subtotal | 2,001,334 | $ | 2,258,334 | 2,001,588 | $ | 2,196,338 | ||||||||||
Capital lease obligations (1) | 389,084 | 420,800 | ||||||||||||||
Total debt and capital lease obligations | 2,390,418 | 2,422,388 | ||||||||||||||
Less: Current portion | (51,080 | ) | (69,791 | ) | ||||||||||||
Long-term portion of debt and capital lease obligations | $ | 2,339,338 | $ | 2,352,597 | ||||||||||||
(1) Disclosure regarding the fair value of capital lease obligations is not required. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Schedule of stock-based compensation expense | ' | |||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Research and development expenses | $ | 583 | $ | 921 | $ | 1,175 | $ | 1,849 | ||||||
Selling, general and administrative expenses | 3,038 | 4,147 | 6,003 | 8,203 | ||||||||||
Total stock-based compensation | $ | 3,621 | $ | 5,068 | $ | 7,178 | $ | 10,052 | ||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting | ' | ||||||||||||||||
Schedule of revenue, EBITDA, and capital expenditures by operating segments | ' | ||||||||||||||||
EchoStar | All | ||||||||||||||||
EchoStar | Satellite | Other and | Consolidated | ||||||||||||||
Technologies | Hughes | Services | Eliminations | Total | |||||||||||||
(In thousands) | |||||||||||||||||
For the Three Months Ended June 30, 2014 | |||||||||||||||||
External revenue | $ | 415,754 | $ | 329,795 | $ | 127,742 | $ | 6,537 | $ | 879,828 | |||||||
Intersegment revenue | $ | 137 | $ | 463 | $ | 797 | $ | (1,397 | ) | $ | — | ||||||
Total revenue | $ | 415,891 | $ | 330,258 | $ | 128,539 | $ | 5,140 | $ | 879,828 | |||||||
EBITDA | $ | 42,268 | $ | 90,316 | $ | 112,228 | $ | (11,909 | ) | $ | 232,903 | ||||||
Capital expenditures (1) | $ | 13,516 | $ | 51,505 | $ | — | $ | 91,071 | $ | 156,092 | |||||||
For the Three Months Ended June 30, 2013 | |||||||||||||||||
External revenue | $ | 425,559 | $ | 313,748 | $ | 84,079 | $ | 6,617 | $ | 830,003 | |||||||
Intersegment revenue | $ | (12 | ) | $ | 1,200 | $ | 793 | $ | (1,981 | ) | $ | — | |||||
Total revenue | $ | 425,547 | $ | 314,948 | $ | 84,872 | $ | 4,636 | $ | 830,003 | |||||||
EBITDA | $ | 32,047 | $ | 73,394 | $ | 33,667 | $ | 10,085 | $ | 149,193 | |||||||
Capital expenditures (1) | $ | 15,341 | $ | 45,493 | $ | 60 | $ | 24,758 | $ | 85,652 | |||||||
For the Six Months Ended June 30, 2014 | |||||||||||||||||
External revenue | $ | 821,446 | $ | 644,166 | $ | 227,614 | $ | 12,625 | $ | 1,705,851 | |||||||
Intersegment revenue | $ | 238 | $ | 863 | $ | 1,746 | $ | (2,847 | ) | $ | — | ||||||
Total revenue | $ | 821,684 | $ | 645,029 | $ | 229,360 | $ | 9,778 | $ | 1,705,851 | |||||||
EBITDA | $ | 81,232 | $ | 172,255 | $ | 197,010 | $ | (25,711 | ) | $ | 424,786 | ||||||
Capital expenditures (1) | $ | 27,438 | $ | 97,477 | $ | 29 | $ | 144,773 | $ | 269,717 | |||||||
For the Six Months Ended June 30, 2013 | |||||||||||||||||
External revenue | $ | 852,332 | $ | 602,929 | $ | 157,425 | $ | 12,771 | $ | 1,625,457 | |||||||
Intersegment revenue | $ | 209 | $ | 1,418 | $ | 1,649 | $ | (3,276 | ) | $ | — | ||||||
Total revenue | $ | 852,541 | $ | 604,347 | $ | 159,074 | $ | 9,495 | $ | 1,625,457 | |||||||
EBITDA | $ | 61,972 | $ | 137,375 | $ | 98,473 | $ | 23,007 | $ | 320,827 | |||||||
Capital expenditures (1) | $ | 27,652 | $ | 89,833 | $ | 12,332 | $ | 28,455 | $ | 158,272 | |||||||
(1) Capital expenditures consist of purchases of property and equipment reported in our Condensed Consolidated Statements of Cash Flows and do not include satellites transferred in the Satellite and Tracking Stock Transaction or other noncash capital expenditures. | |||||||||||||||||
Schedule of reconciliation of total consolidated EBITDA to reported Income (loss) before income taxes | ' | ||||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
EBITDA | $ | 232,903 | $ | 149,193 | $ | 424,786 | $ | 320,827 | |||||||||
Interest income and expense, net | (42,540 | ) | (46,690 | ) | (85,986 | ) | (93,813 | ) | |||||||||
Depreciation and amortization | (140,647 | ) | (128,144 | ) | (273,873 | ) | (254,843 | ) | |||||||||
Net loss attributable to noncontrolling interest in HSS Tracking Stock | (1,619 | ) | — | (1,943 | ) | — | |||||||||||
Net income attributable to noncontrolling interests | 428 | 176 | 728 | 216 | |||||||||||||
Income (loss) before income taxes | $ | 48,525 | $ | (25,465 | ) | $ | 63,712 | $ | (27,613 | ) |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
NagraStar | ' | |||||||||||||
Related party transactions | ' | |||||||||||||
Schedule of related party transactions | ' | |||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Purchases from NagraStar | $ | 6,421 | $ | 3,799 | $ | 9,566 | $ | 8,192 | ||||||
As of | ||||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Due to NagraStar | $ | 831 | $ | 1,211 | ||||||||||
Commitments to purchase from NagraStar | $ | 6,337 | $ | 5,874 | ||||||||||
Dish Mexico | ' | |||||||||||||
Related party transactions | ' | |||||||||||||
Schedule of related party transactions | ' | |||||||||||||
For the Three Months | For the Six Months | |||||||||||||
Ended June 30, | Ended June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Digital set-top boxes and related accessories | $ | 17,006 | $ | 10,459 | $ | 25,405 | $ | 25,852 | ||||||
Satellite services | $ | 5,837 | $ | 6,180 | $ | 11,674 | $ | 10,967 | ||||||
Uplink services | $ | 1,510 | $ | 1,676 | $ | 3,215 | $ | 3,155 | ||||||
Other services | $ | — | $ | 18 | — | $ | 18 | |||||||
As of | ||||||||||||||
June 30, | December 31, | |||||||||||||
2014 | 2013 | |||||||||||||
(In thousands) | ||||||||||||||
Due from Dish Mexico | $ | 11,327 | $ | 3,506 | ||||||||||
Organization_and_Business_Acti1
Organization and Business Activities (Details) | 6 Months Ended | 0 Months Ended |
Jun. 30, 2014 | Mar. 02, 2014 | |
item | Hughes Retail Group | |
DISH Network | ||
Satellite and Tracking Stock Transaction | ||
Hughes Retail Preferred Tracking Stock | ||
Organization and Business Activities | ' | ' |
Number of business segments | 3 | ' |
Principal Business | ' | ' |
Percentage of economic interest held | ' | 80.00% |
Hughes_Retail_Preferred_Tracki2
Hughes Retail Preferred Tracking Stock (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 02, 2014 | Mar. 02, 2014 | Jun. 30, 2014 | Feb. 28, 2014 | Mar. 02, 2014 | Jun. 30, 2014 | Feb. 28, 2014 | Mar. 02, 2014 | Mar. 02, 2014 | Mar. 02, 2014 | Mar. 02, 2014 | Mar. 02, 2014 | Mar. 02, 2014 |
In Thousands, except Share data, unless otherwise specified | Hughes Retail Preferred Tracking Stock | Hughes Retail Preferred Tracking Stock | Hughes Retail Preferred Tracking Stock | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | Hughes Retail Group | Hughes Retail Group | Hughes Retail Group | Hughes Retail Group |
Hughes Satellite Systems Corporation ("HSSC") | EchoStar Corporation | Hughes Satellite Systems Corporation ("HSSC") | Hughes Retail Preferred Tracking Stock | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | DISH Network | DISH Network | DISH Network | |||
Hughes Satellite Systems Corporation ("HSSC") | EchoStar and HSSC | EchoStar and HSSC | Hughes Satellite Systems Corporation ("HSSC") | Hughes Retail Preferred Tracking Stock | Hughes Retail Preferred Tracking Stock | EchoStar Corporation | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | |||||||
item | item | EchoStar Corporation | Hughes Satellite Systems Corporation ("HSSC") | EchoStar Corporation | Hughes Satellite Systems Corporation ("HSSC") | Hughes Retail Preferred Tracking Stock | ||||||||||
Hughes Retail Group Tracking Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of owned satellites transferred | ' | ' | ' | ' | ' | ' | ' | 5 | 5 | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | ' | ' | $11,404 | ' | ' | $11,404 | ' | ' | ' | ' | ' | ' |
Number of shares issued during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,290,499 | 81.128 | ' | ' | ' | ' |
Percentage of economic interest held | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 51.89% | 28.11% | 80.00% |
Preferred stock, shares authorized (in shares) | 13,000,000 | ' | 300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, par value (in dollars per share) | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares issued (in shares) | 6,290,499 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of capital stock held | ' | ' | ' | 6.50% | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares outstanding (in shares) | 6,290,499 | 0 | ' | ' | ' | 81.128 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of one vote entitled to each share | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hughes_Retail_Preferred_Tracki3
Hughes Retail Preferred Tracking Stock (Details 2) (Satellite and Tracking Stock Transaction, USD $) | Feb. 28, 2014 |
In Thousands, unless otherwise specified | |
Carrying amount of net assets transferred from DISH Network | ' |
Transferred net assets | $398,095 |
DISH Network | ' |
Carrying amount of net assets transferred from DISH Network | ' |
Cash | 11,404 |
Property and equipment, net | 432,080 |
Current liabilities | -6,555 |
Noncurrent liabilities | -38,834 |
Transferred net assets | 398,095 |
DISH Network | EchoStar | ' |
Carrying amount of net assets transferred from DISH Network | ' |
Property and equipment, net | 349,243 |
Current liabilities | -3,479 |
Noncurrent liabilities | -30,121 |
Transferred net assets | 315,643 |
DISH Network | HSS | ' |
Carrying amount of net assets transferred from DISH Network | ' |
Cash | 11,404 |
Property and equipment, net | 82,837 |
Current liabilities | -3,076 |
Noncurrent liabilities | -8,713 |
Transferred net assets | $82,452 |
Hughes_Retail_Preferred_Tracki4
Hughes Retail Preferred Tracking Stock (Details 3) (Satellite and Tracking Stock Transaction, USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Feb. 28, 2014 |
Net amount credited to stockholders' equity | ' |
Transferred net assets | $398,095 |
Offering costs, net of tax | -2,912 |
Deferred income taxes | -144,496 |
Net increase in stockholders' equity | 250,687 |
EchoStar Stockholders | ' |
Net amount credited to stockholders' equity | ' |
Transferred net assets | 315,643 |
Offering costs, net of tax | -2,302 |
Deferred income taxes | -114,525 |
Reallocation based on relative liquidation values | -35,300 |
Net increase in stockholders' equity | 163,516 |
Noncontrolling Interest | ' |
Net amount credited to stockholders' equity | ' |
Transferred net assets | 82,452 |
Offering costs, net of tax | -610 |
Deferred income taxes | -29,971 |
Reallocation based on relative liquidation values | 35,300 |
Net increase in stockholders' equity | $87,171 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 6 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 02, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Hughes Retail Group | Level 2 | Level 2 | |||
DISH Network | |||||
Satellite and Tracking Stock Transaction | |||||
HSS | |||||
Principles of Consolidation | ' | ' | ' | ' | ' |
Percentage of economic interest held | ' | ' | 28.11% | ' | ' |
Amount of transfers between levels within the fair value hierarchy | $0 | $0 | ' | ' | ' |
Fair value measurements | ' | ' | ' | ' | ' |
Orbital incentive obligations | ' | ' | ' | $89 | $48.40 |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 02, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Earnings per Share | ' | ' | ' |
Allocation of net loss | ' | ($2,989) | ($3,587) |
Satellite and Tracking Stock Transaction | EchoStar Corporation | Hughes Retail Group | ' | ' | ' |
Earnings per Share | ' | ' | ' |
Percentage of economic interest held | 20.00% | ' | ' |
DISH Network | Satellite and Tracking Stock Transaction | Hughes Retail Group | Hughes Retail Preferred Tracking Stock | ' | ' | ' |
Earnings per Share | ' | ' | ' |
Percentage of economic interest held | 80.00% | ' | ' |
DISH Network | Satellite and Tracking Stock Transaction | EchoStar Corporation | Hughes Retail Group | ' | ' | ' |
Earnings per Share | ' | ' | ' |
Allocation of net loss | ' | ($2,989) | ($3,587) |
Percentage of economic interest held | 51.89% | ' | ' |
DISH Network | Satellite and Tracking Stock Transaction | Hughes Satellite Systems Corporation ("HSSC") | Hughes Retail Group | ' | ' | ' |
Earnings per Share | ' | ' | ' |
Percentage of economic interest held | 28.11% | ' | ' |
Earnings_per_Share_Details_2
Earnings per Share (Details 2) (Class A common stock) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Long-term performance based plans | ' | ' | ' | ' |
Dilutive securities excluded from computation of earnings per share | ' | ' | ' | ' |
Dilutive securities excluded from computation of earnings per share (in shares) | 0.7 | 0.7 | 0.7 | 0.7 |
Stock awards | ' | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share | ' | ' | ' | ' |
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 0.7 | 1.6 | 0.7 | 1.4 |
Earnings_per_Share_Details_3
Earnings per Share (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net income attributable to EchoStar | ' | ' | ' | ' |
Net income attributable to EchoStar common stock | $33,794 | ($9,759) | $46,446 | ($6,301) |
Net income (loss) attributable to EchoStar Tracking Stock | -2,989 | ' | -3,587 | ' |
Net income (loss) attributable to EchoStar | 30,805 | -9,759 | 42,859 | -6,301 |
Weighted-average common shares outstanding : | ' | ' | ' | ' |
Basic (in shares) | 91,097 | 88,179 | 90,894 | 88,681 |
Dilutive impact of stock awards outstanding (in shares) | 1,617 | ' | 1,652 | ' |
Diluted (in shares) | 92,714 | 88,179 | 92,546 | 88,681 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.37 | ($0.11) | $0.51 | ($0.07) |
Diluted (in dollars per share) | $0.36 | ($0.11) | $0.50 | ($0.07) |
Class A and B Common Stock | ' | ' | ' | ' |
Net income attributable to EchoStar | ' | ' | ' | ' |
Net income attributable to EchoStar common stock | $30,805 | ($9,759) | $42,859 | ($6,301) |
Weighted-average common shares outstanding : | ' | ' | ' | ' |
Basic (in shares) | 91,097 | 88,179 | 90,894 | 88,681 |
Dilutive impact of stock awards outstanding (in shares) | 1,617 | ' | 1,652 | ' |
Diluted (in shares) | 92,714 | 88,179 | 92,546 | 88,681 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.37 | ($0.11) | $0.51 | ($0.07) |
Diluted (in dollars per share) | $0.36 | ($0.11) | $0.50 | ($0.07) |
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) and Related Tax Effects (Details) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Other comprehensive income, tax (expense) benefit | ' | ' |
Cumulative foreign currency translation losses | $24.60 | $32.10 |
Tax effects on foreign currency translation adjustments | 0 | ' |
Tax effects on unrealized gains or losses on available-for-sale securities | $0 | ' |
Investment_Securities_Details
Investment Securities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Marketable investment securities, restricted cash and cash equivalents, and other investments | ' | ' |
Total marketable investment securities - current | $980,303 | $986,533 |
Restricted marketable investment securities | 10,560 | 7,965 |
Total | 990,863 | 994,498 |
Restricted cash and cash equivalents | 8,619 | 8,172 |
Other investments-noncurrent: | ' | ' |
Cost method | 25,977 | 25,977 |
Equity method | 133,623 | 143,794 |
Total other investments-noncurrent | 159,600 | 169,771 |
Total marketable investment securities, restricted cash and cash equivalents, and other investments | 1,159,082 | 1,172,441 |
Corporate Bonds | ' | ' |
Marketable investment securities, restricted cash and cash equivalents, and other investments | ' | ' |
Total marketable investment securities - current | 858,451 | 833,791 |
VRDNs | ' | ' |
Marketable investment securities, restricted cash and cash equivalents, and other investments | ' | ' |
Total marketable investment securities - current | 31,095 | 34,705 |
Strategic equity securities | ' | ' |
Marketable investment securities, restricted cash and cash equivalents, and other investments | ' | ' |
Total marketable investment securities - current | 32,715 | 33,613 |
Other | ' | ' |
Marketable investment securities, restricted cash and cash equivalents, and other investments | ' | ' |
Total marketable investment securities - current | $58,042 | $84,424 |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Unrealized Gains (Losses) on Marketable Investment Securities | ' | ' |
Amortized cost | $975,988 | $976,741 |
Unrealized Gains | 15,135 | 18,582 |
Unrealized Losses | -260 | -825 |
Total | 990,863 | 994,498 |
Corporate Bonds | ' | ' |
Unrealized Gains (Losses) on Marketable Investment Securities | ' | ' |
Amortized cost | 858,406 | 833,888 |
Unrealized Gains | 304 | 227 |
Unrealized Losses | -259 | -324 |
Estimated Fair Value | 858,451 | 833,791 |
VRDNs | ' | ' |
Unrealized Gains (Losses) on Marketable Investment Securities | ' | ' |
Amortized cost | 31,095 | 34,705 |
Estimated Fair Value | 31,095 | 34,705 |
Other (including restricted) | ' | ' |
Unrealized Gains (Losses) on Marketable Investment Securities | ' | ' |
Amortized cost | 68,583 | 92,876 |
Unrealized Gains | 20 | 14 |
Unrealized Losses | -1 | -501 |
Estimated Fair Value | 68,602 | 92,389 |
Equity securities - Strategic | ' | ' |
Unrealized Gains (Losses) on Marketable Investment Securities | ' | ' |
Amortized cost | 17,904 | 15,272 |
Unrealized Gains | 14,811 | 18,341 |
Estimated Fair Value | $32,715 | $33,613 |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Investment Securities | ' |
Debt securities with contractual maturities of one year or less | $756.50 |
Debt securities with contractual maturities exceeding one year | $201.60 |
Investment_Securities_Details_2
Investment Securities (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Realized gains (losses) on marketable investment securities | ' | ' | ' | ' | ' |
Realized minimal gains from the sales of available-for-sale marketable investment securities | ' | $18,000,000 | ' | $37,400,000 | ' |
Proceeds from sales of available-for-sale marketable investment securities | 4,800,000 | 53,900,000 | 5,400,000 | 95,300,000 | ' |
Fair value of marketable investment securities in a loss position | ' | ' | ' | ' | ' |
Less than 12 months | 477,201,000 | ' | 477,201,000 | ' | 571,592,000 |
12 months or more | 12,041,000 | ' | 12,041,000 | ' | ' |
Total | 489,242,000 | ' | 489,242,000 | ' | 571,592,000 |
Unrealized losses on marketable investment securities in a loss position | ' | ' | ' | ' | ' |
Less than 12 months | -256,000 | ' | -256,000 | ' | -825,000 |
12 months or more | -4,000 | ' | -4,000 | ' | ' |
Total | ($260,000) | ' | ($260,000) | ' | ($825,000) |
Investment_Securities_Details_3
Investment Securities (Details 5) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value of marketable securities | ' | ' |
Total | $990,863 | $994,498 |
Corporate Bonds | ' | ' |
Fair value of marketable securities | ' | ' |
Debt security | 858,451 | 833,791 |
VRDNs | ' | ' |
Fair value of marketable securities | ' | ' |
Debt security | 31,095 | 34,705 |
Other (including restricted) | ' | ' |
Fair value of marketable securities | ' | ' |
Debt security | 68,602 | 92,389 |
Fair value measurements on recurring basis | Total | ' | ' |
Fair value of marketable securities | ' | ' |
Cash equivalents (including restricted) | 593,659 | 548,714 |
Total | 990,863 | 994,498 |
Fair value measurements on recurring basis | Total | Corporate Bonds | ' | ' |
Fair value of marketable securities | ' | ' |
Debt security | 858,451 | 833,791 |
Fair value measurements on recurring basis | Total | VRDNs | ' | ' |
Fair value of marketable securities | ' | ' |
Debt security | 31,095 | 34,705 |
Fair value measurements on recurring basis | Total | Other (including restricted) | ' | ' |
Fair value of marketable securities | ' | ' |
Debt security | 68,602 | 92,389 |
Fair value measurements on recurring basis | Total | Equity securities - Strategic | ' | ' |
Fair value of marketable securities | ' | ' |
Equity security | 32,715 | 33,613 |
Fair value measurements on recurring basis | Level 1 | ' | ' |
Fair value of marketable securities | ' | ' |
Cash equivalents (including restricted) | 7,864 | 49,338 |
Total | 32,715 | 33,613 |
Fair value measurements on recurring basis | Level 1 | Equity securities - Strategic | ' | ' |
Fair value of marketable securities | ' | ' |
Equity security | 32,715 | 33,613 |
Fair value measurements on recurring basis | Level 2 | ' | ' |
Fair value of marketable securities | ' | ' |
Cash equivalents (including restricted) | 585,795 | 499,376 |
Total | 958,148 | 960,885 |
Fair value measurements on recurring basis | Level 2 | Corporate Bonds | ' | ' |
Fair value of marketable securities | ' | ' |
Debt security | 858,451 | 833,791 |
Fair value measurements on recurring basis | Level 2 | VRDNs | ' | ' |
Fair value of marketable securities | ' | ' |
Debt security | 31,095 | 34,705 |
Fair value measurements on recurring basis | Level 2 | Other (including restricted) | ' | ' |
Fair value of marketable securities | ' | ' |
Debt security | $68,602 | $92,389 |
Trade_Accounts_Receivable_Deta
Trade Accounts Receivable (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Trade Accounts Receivable | ' | ' |
Total trade accounts receivable | $188,579,000 | $172,529,000 |
Allowance for doubtful accounts | -14,766,000 | -13,237,000 |
Trade accounts receivable - DISH Network | 318,351,000 | 355,135,000 |
Total trade accounts receivable, net | 492,164,000 | 514,427,000 |
Progress billings offset against contracts in process | 13,000,000 | 2,600,000 |
Trade accounts receivables | ' | ' |
Trade Accounts Receivable | ' | ' |
Total trade accounts receivable | 179,025,000 | 164,900,000 |
Contracts in process, net | ' | ' |
Trade Accounts Receivable | ' | ' |
Total trade accounts receivable | $9,554,000 | $7,629,000 |
Inventory_Details
Inventory (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory | ' | ' |
Finished goods | $49,246 | $50,357 |
Raw materials | 6,203 | 8,658 |
Work-in-process | 8,509 | 7,069 |
Total inventory | $63,958 | $66,084 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 02, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | DISH Network | DISH Network | Land | Land | Buildings and improvements | Buildings and improvements | Buildings and improvements | Buildings and improvements | Furniture, fixtures, equipment and other | Furniture, fixtures, equipment and other | Furniture, fixtures, equipment and other | Furniture, fixtures, equipment and other | Customer rental equipment | Customer rental equipment | Customer rental equipment | Customer rental equipment | Satellites - owned | Satellites - owned | Satellites - owned | Satellites - owned | Satellites - owned | Satellites acquired under capital leases | Satellites acquired under capital leases | Satellites acquired under capital leases | Satellites acquired under capital leases | Construction in progress | Construction in progress | ||
Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | DISH Network | Minimum | Maximum | Minimum | Maximum | |||||||||||||||||
EchoStar and HSSC | EchoStar and HSSC | Satellite and Tracking Stock Transaction | |||||||||||||||||||||||||||
item | item | ||||||||||||||||||||||||||||
Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property and equipment | $5,731,260 | $5,046,266 | ' | ' | $42,574 | $42,850 | $380,758 | $377,208 | ' | ' | $1,192,990 | $1,157,325 | ' | ' | $436,998 | $374,688 | ' | ' | $2,381,120 | $1,949,040 | $432,100 | ' | ' | $935,104 | $935,104 | ' | ' | $361,716 | $210,051 |
Accumulated depreciation | -2,703,563 | -2,499,889 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -15,900 | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | $3,027,697 | $2,546,377 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciable Life | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '40 years | ' | ' | '1 year | '12 years | ' | ' | '2 years | '4 years | ' | ' | ' | '2 years | '15 years | ' | ' | '10 years | '15 years | ' | ' |
Number of owned satellites transferred | ' | ' | 5 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property_and_Equipment_Details1
Property and Equipment (Details 2) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property and equipment | ' | ' |
Construction in progress | $361,716 | $210,051 |
EchoStar XIX | ' | ' |
Property and equipment | ' | ' |
Construction in progress | 223,981 | 122,070 |
TerreStar-2/EchoStar XXI | ' | ' |
Property and equipment | ' | ' |
Construction in progress | 55,354 | 16,433 |
EchoStar XXIII | ' | ' |
Property and equipment | ' | ' |
Construction in progress | 22,981 | 19,210 |
EUTELSAT 65 West A | ' | ' |
Property and equipment | ' | ' |
Construction in progress | 10,337 | ' |
Satellite under construction: Other | ' | ' |
Property and equipment | ' | ' |
Construction in progress | 4,440 | 4,950 |
Uplinking equipment | ' | ' |
Property and equipment | ' | ' |
Construction in progress | 24,245 | 20,793 |
Construction in progress: Other | ' | ' |
Property and equipment | ' | ' |
Construction in progress | $20,378 | $26,595 |
Property_and_Equipment_Details2
Property and Equipment (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Depreciation expense | ' | ' | ' | ' |
Total depreciation expense | $117,166 | $106,493 | $226,042 | $211,605 |
Satellites | ' | ' | ' | ' |
Depreciation expense | ' | ' | ' | ' |
Total depreciation expense | 55,576 | 46,529 | 103,139 | 93,073 |
Furniture, fixtures, equipment and other | ' | ' | ' | ' |
Depreciation expense | ' | ' | ' | ' |
Total depreciation expense | 29,161 | 32,805 | 59,052 | 64,771 |
Customer rental equipment | ' | ' | ' | ' |
Depreciation expense | ' | ' | ' | ' |
Total depreciation expense | 29,016 | 23,793 | 56,908 | 47,080 |
Buildings and improvements | ' | ' | ' | ' |
Depreciation expense | ' | ' | ' | ' |
Total depreciation expense | $3,413 | $3,366 | $6,943 | $6,681 |
Property_and_Equipment_Details3
Property and Equipment (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 02, 2014 | Jun. 30, 2014 | 31-May-13 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | 31-May-13 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2010 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 30, 2014 |
DISH Network | DISH Network | DISH Network | Satellites | SPACEWAY 3 | EchoStar XVII | EchoStar III | EchoStar VI | EchoStar VII | EchoStar VIII | EchoStar VIII | EchoStar XII | EchoStar XII | EchoStar IX | EchoStar X | EchoStar X | EchoStar XI | EchoStar XIV | EchoStar XVI | AMC-15 | AMC-16 | Nimiq 5 | QuetzSat-1 | EUTELSAT 65 West A | |||||
Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | EchoStar XV capacity leased from Dish Network | mi | item | DISH Network | item | ||||||||||||||||||||||
EchoStar and HSSC | EchoStar and HSSC | item | ||||||||||||||||||||||||||
item | item | |||||||||||||||||||||||||||
Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of satellites utilized in geosynchronous orbit | ' | ' | ' | ' | ' | ' | ' | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length of satellites utilized in geosynchronous orbit above the equator (in miles) | ' | ' | ' | ' | ' | ' | ' | 22,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of satellites utilized under capital lease | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciable Life | ' | ' | ' | ' | ' | ' | ' | ' | '12 years | '15 years | '12 years | '12 years | '3 years | '12 years | ' | ' | '2 years | '12 years | ' | '7 years | '9 years | '11 years | '15 years | '10 years | '10 years | '15 years | '10 years | '15 years |
Number of patents infringed | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of owned satellites transferred | ' | ' | ' | ' | 5 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum notice period required for termination of lease agreement | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount | ' | ' | $3,027,697 | $2,546,377 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of solar array circuits affected | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of functional solar array circuits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charge | $34,664 | $34,664 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Regulatory authorizations | ' | ' | ' | ' | ' |
Total regulatory authorizations | $584,168,000 | ' | $584,168,000 | ' | $583,900,000 |
Amortization expense | 22,600,000 | 21,700,000 | 46,200,000 | 43,200,000 | ' |
Total regulatory authorizations | ' | ' | ' | ' | ' |
Regulatory authorizations | ' | ' | ' | ' | ' |
Total regulatory authorizations | 584,168,000 | ' | 584,168,000 | ' | 583,900,000 |
Indefinite-lived regulatory authorizations | ' | ' | ' | ' | ' |
Regulatory authorizations | ' | ' | ' | ' | ' |
Total regulatory authorizations | 471,657,000 | ' | 471,657,000 | ' | 471,657,000 |
Finite-lived regulatory authorizations | ' | ' | ' | ' | ' |
Regulatory authorizations | ' | ' | ' | ' | ' |
Cost | 117,238,000 | ' | 117,238,000 | ' | 113,764,000 |
Accumulated amortization | -4,727,000 | ' | -4,727,000 | ' | -1,521,000 |
Total regulatory authorizations | 112,511,000 | ' | 112,511,000 | ' | 112,243,000 |
Amortization expense | $1,600,000 | $0 | $3,100,000 | $0 | ' |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Other intangible assets | ' | ' | ' | ' | ' |
Cost | $709,977,000 | ' | $709,977,000 | ' | $709,977,000 |
Accumulated Amortization | -491,158,000 | ' | -491,158,000 | ' | -447,938,000 |
Carrying amount | 218,819,000 | ' | 218,819,000 | ' | 262,039,000 |
Amortization expense | 22,600,000 | 21,700,000 | 46,200,000 | 43,200,000 | ' |
Customer relationships | ' | ' | ' | ' | ' |
Other intangible assets | ' | ' | ' | ' | ' |
Cost | 293,932,000 | ' | 293,932,000 | ' | 293,932,000 |
Accumulated Amortization | -169,020,000 | ' | -169,020,000 | ' | -152,647,000 |
Carrying amount | 124,912,000 | ' | 124,912,000 | ' | 141,285,000 |
Weighted Average Useful life | ' | ' | '8 years | ' | ' |
Contract-based | ' | ' | ' | ' | ' |
Other intangible assets | ' | ' | ' | ' | ' |
Cost | 255,366,000 | ' | 255,366,000 | ' | 255,366,000 |
Accumulated Amortization | -221,674,000 | ' | -221,674,000 | ' | -204,835,000 |
Carrying amount | 33,692,000 | ' | 33,692,000 | ' | 50,531,000 |
Weighted Average Useful life | ' | ' | '10 years | ' | ' |
Technology-based | ' | ' | ' | ' | ' |
Other intangible assets | ' | ' | ' | ' | ' |
Cost | 126,272,000 | ' | 126,272,000 | ' | 126,272,000 |
Accumulated Amortization | -92,257,000 | ' | -92,257,000 | ' | -83,580,000 |
Carrying amount | 34,015,000 | ' | 34,015,000 | ' | 42,692,000 |
Weighted Average Useful life | ' | ' | '7 years | ' | ' |
Trademark portfolio | ' | ' | ' | ' | ' |
Other intangible assets | ' | ' | ' | ' | ' |
Cost | 29,700,000 | ' | 29,700,000 | ' | 29,700,000 |
Accumulated Amortization | -4,579,000 | ' | -4,579,000 | ' | -3,836,000 |
Carrying amount | 25,121,000 | ' | 25,121,000 | ' | 25,864,000 |
Weighted Average Useful life | ' | ' | '20 years | ' | ' |
Favorable leases | ' | ' | ' | ' | ' |
Other intangible assets | ' | ' | ' | ' | ' |
Cost | 4,707,000 | ' | 4,707,000 | ' | 4,707,000 |
Accumulated Amortization | -3,628,000 | ' | -3,628,000 | ' | -3,040,000 |
Carrying amount | $1,079,000 | ' | $1,079,000 | ' | $1,667,000 |
Weighted Average Useful life | ' | ' | '4 years | ' | ' |
Debt_and_Capital_Lease_Obligat2
Debt and Capital Lease Obligations (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt and Capital Lease Obligations | ' | ' |
Carrying Amount | $2,001,334 | $2,001,588 |
Fair Value | 2,258,334 | 2,196,338 |
Capital lease obligations | 389,084 | 420,800 |
Total debt and capital lease obligations | 2,390,418 | 2,422,388 |
Less: Current portion | -51,080 | -69,791 |
Long-term portion of debt and capital lease obligations | 2,339,338 | 2,352,597 |
6 1/2% Senior Secured Notes due 2019 | ' | ' |
Debt and Capital Lease Obligations | ' | ' |
Carrying Amount | 1,100,000 | 1,100,000 |
Fair Value | 1,226,500 | 1,193,500 |
Interest Rates (as a percent) | 6.50% | ' |
7 5/8% Senior Notes due 2021 | ' | ' |
Debt and Capital Lease Obligations | ' | ' |
Carrying Amount | 900,000 | 900,000 |
Fair Value | 1,030,500 | 1,001,250 |
Interest Rates (as a percent) | 7.63% | ' |
Other | ' | ' |
Debt and Capital Lease Obligations | ' | ' |
Carrying Amount | 1,334 | 1,588 |
Fair Value | $1,334 | $1,588 |
Other | Minimum | ' | ' |
Debt and Capital Lease Obligations | ' | ' |
Interest Rates (as a percent) | 5.50% | ' |
Other | Maximum | ' | ' |
Debt and Capital Lease Obligations | ' | ' |
Interest Rates (as a percent) | 15.75% | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Taxes | ' | ' | ' | ' |
Income tax benefit (expense) | ($18,911) | $15,882 | ($22,068) | $21,528 |
Effective income tax rate (as a percent) | ' | ' | 34.60% | 78.00% |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stock-Based Compensation | ' | ' | ' | ' |
Allocated share-based compensation expense | $3,621,000 | $5,068,000 | $7,178,000 | $10,052,000 |
Research and development expenses | ' | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' | ' |
Allocated share-based compensation expense | 583,000 | 921,000 | 1,175,000 | 1,849,000 |
Selling, general and administrative expenses | ' | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' | ' |
Allocated share-based compensation expense | 3,038,000 | 4,147,000 | 6,003,000 | 8,203,000 |
Stock options | ' | ' | ' | ' |
Stock option activity | ' | ' | ' | ' |
Stock options granted (in shares) | 25,000 | 725,000 | 215,000 | 725,000 |
Non-Performance Based Stock Awards | ' | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' | ' |
Unrecognized stock-based compensation cost, net of estimated forfeitures | $28,500,000 | ' | $28,500,000 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Satellite-related obligations, USD $) | Jun. 30, 2014 |
In Billions, unless otherwise specified | |
Satellite-related obligations | ' |
Commitments and Contingencies | ' |
Satellite-related obligations | $1.24 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details 2) | Oct. 02, 2013 | Jul. 31, 2009 | Mar. 31, 2011 | Dec. 31, 2011 | Jun. 30, 2014 |
Caltech | Technology Development and Licensing, LLC | Breach of fiduciary duties | Breach of fiduciary duties | Breach of fiduciary duties | |
item | item | ||||
Commitment and Contingencies | ' | ' | ' | ' | ' |
Number of indirect wholly-owned subsidiaries against which lawsuit was filed | 2 | ' | ' | ' | ' |
Stock option grants attempted (in shares) | ' | ' | 1,500,000 | ' | ' |
Stock option grants (in shares) | ' | ' | ' | 800,000 | ' |
Number of reexamination petitions pending before the United States Patents and Trademark Office | ' | 2 | ' | ' | ' |
Stock options outstanding (in shares) | ' | ' | ' | ' | 800,000 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
item | ||||
Segment Reporting | ' | ' | ' | ' |
Number of business segments | ' | ' | 3 | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | $879,828 | $830,003 | $1,705,851 | $1,625,457 |
EBITDA | 232,903 | 149,193 | 424,786 | 320,827 |
Capital expenditures | 156,092 | 85,652 | 269,717 | 158,272 |
Interest income and expense, net | -42,540 | -46,690 | -85,986 | -93,813 |
Depreciation and amortization | -140,647 | -128,144 | -273,873 | -254,843 |
Net loss attributable to noncontrolling interest in HSS Tracking Stock | -1,619 | ' | -1,943 | ' |
Net income attributable to noncontrolling interests | 428 | 176 | 728 | 216 |
Income (loss) before income taxes | 48,525 | -25,465 | 63,712 | -27,613 |
EchoStar Technologies Business | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | 415,754 | 425,559 | 821,446 | 852,332 |
Hughes Business | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | 329,795 | 313,748 | 644,166 | 602,929 |
EchoStar Satellite Services Business | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | 127,742 | 84,079 | 227,614 | 157,425 |
All Other and Eliminations | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | 6,537 | 6,617 | 12,625 | 12,771 |
Operating segments | EchoStar Technologies Business | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | 415,891 | 425,547 | 821,684 | 852,541 |
EBITDA | 42,268 | 32,047 | 81,232 | 61,972 |
Capital expenditures | 13,516 | 15,341 | 27,438 | 27,652 |
Operating segments | Hughes Business | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | 330,258 | 314,948 | 645,029 | 604,347 |
EBITDA | 90,316 | 73,394 | 172,255 | 137,375 |
Capital expenditures | 51,505 | 45,493 | 97,477 | 89,833 |
Operating segments | EchoStar Satellite Services Business | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | 128,539 | 84,872 | 229,360 | 159,074 |
EBITDA | 112,228 | 33,667 | 197,010 | 98,473 |
Capital expenditures | ' | 60 | 29 | 12,332 |
Intersegment Elimination | EchoStar Technologies Business | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | 137 | -12 | 238 | 209 |
Intersegment Elimination | Hughes Business | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | 463 | 1,200 | 863 | 1,418 |
Intersegment Elimination | EchoStar Satellite Services Business | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | 797 | 793 | 1,746 | 1,649 |
Intersegment Elimination | All Other and Eliminations | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | -1,397 | -1,981 | -2,847 | -3,276 |
All Other and Eliminations | All Other and Eliminations | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' |
Total revenue | 5,140 | 4,636 | 9,778 | 9,495 |
EBITDA | -11,909 | 10,085 | -25,711 | 23,007 |
Capital expenditures | $91,071 | $24,758 | $144,773 | $28,455 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 6 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 12 Months Ended | 6 Months Ended | 1 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||
Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Aug. 01, 2014 | Jun. 30, 2014 | Dec. 31, 2011 | Oct. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jul. 02, 2012 | Aug. 01, 2014 | Apr. 30, 2011 | Apr. 29, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | 31-May-10 | Jun. 30, 2014 | Dec. 31, 2012 | Jun. 30, 2014 | Mar. 02, 2014 | Feb. 28, 2014 | Mar. 02, 2014 | Mar. 02, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Nov. 30, 2013 | Jan. 31, 2010 | Jun. 30, 2014 | Feb. 28, 2010 | Jun. 30, 2014 | Feb. 28, 2010 | Jun. 30, 2014 | Mar. 09, 2012 | 31-May-13 | Jun. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2009 | Jun. 30, 2014 | Jan. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2012 | 31-May-12 | Dec. 31, 2009 | Dec. 31, 2008 | Jun. 30, 2014 | 31-May-14 | Feb. 29, 2008 | Dec. 31, 2009 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2010 | |
DISH Digital | EchoStar XVI | Patent Cross-License Agreements | Hughes Broadband Distribution Agreement | Hughes Broadband Distribution Agreement | DBSD North America Agreement | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | DISH Network | Telesat Canada | SES Latin America | Hughes Systique Corporation | Hughes Systique Corporation | Hughes Systique Corporation | Hughes Systique Corporation | NagraStar | NagraStar | NagraStar | NagraStar | NagraStar | Dish Mexico | Dish Mexico | Dish Mexico | Dish Mexico | Dish Mexico | Deluxe | Deluxe | Deluxe | Deluxe | Deluxe | DISH Broadband | ||||
Subsequent event | item | DISH Digital | DISH Digital | TiVo vs. Dish Network and EchoStar Corporation | TiVo vs. Dish Network and EchoStar Corporation | 2012 Receiver Agreement | Broadcast Agreement | Broadcast Agreement for Certain Sports Related Programming | EchoStar VIII capacity leased to Dish Network | EchoStar XVI | EchoStar XVI | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | Satellite and Tracking Stock Transaction | TT&C Agreement | Inverness Lease Agreement | Santa Fe Lease Agreement | Gilbert Lease Agreement | Product Support Agreement | DISH Online.com Services Agreement | DISH Online.com Services Agreement | DISH Online.com Services Agreement | DISH Remote Access Services Agreement | DISH Remote Access Services Agreement | SlingService Services Agreement | SlingService Services Agreement | DBSD North America Agreement | EchoStar XV capacity leased from Dish Network | Remanufactured Receiver Agreement | Tax Sharing Agreement | Tax Sharing Agreement | Set-Top Box Application Development Agreement | XiP Encryption Agreement | DISH Telesat Agreement | El Paso Lease Agreement | Professional Services Agreement | Professional Services Agreement | QuetzSat-1 Transponder | QuetzSat-1 Transponder | Service agreement to lease certain satellite capacity | Nimiq 5 Agreement | QuetzSat-1 Lease Agreement | HNS | HNS | HNS | RUS Service Implementation Agreement | ||||||||||||||||||||||||
Subsequent event | item | Hughes Retail Group | EchoStar and HSSC | EchoStar and HSSC | item | Other receivable | Noncurrent deferred tax liabilities | item | item | item | item | Ciel | item | item | Maximum | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hughes Retail Preferred Tracking Stock | item | item | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related party transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of economic interest held | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum required notice period for termination of agreement by related party | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | '60 days | '60 days | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | '60 days | ' | ' | '120 days | ' | '120 days | ' | '120 days | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement term | ' | ' | ' | ' | ' | ' | '5 years | ' | '1 year | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | '2 years | ' | '5 years | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | '10 years | '15 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement term from commencement of service date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional term of renewal option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of DBS transponders available to receive services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32 | ' | ' | ' | ' | ' | ' | 32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of DBS transponders expected to receive services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of DBS transponders currently receiving services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24 | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of DBS transponders currently receiving services subleased back from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Automatic renewal period | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '1 year | ' | '1 year | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required minimum notice for termination of agreement | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required minimum notice for termination of individual service | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required minimum notice period for termination of agreement by the reporting entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | '60 days | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of successive three year renewal options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grants receivable by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,100,000 |
Number of owned satellites transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities Assumed | 18,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,404,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of renewal option | ' | ' | ' | ' | '6 years | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum notice period required to extend the agreement term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of successive one year renewal options | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity interest in joint venture | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Voting interests acquired by related party (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount agreed to be funded under term loan facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount funded | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest in related party (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44.40% | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' |
Ownership interest acquired by related party (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67.00% | 90.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum aggregate payments required under cross license agreements | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum additional aggregate payments required under cross license agreements if options are exercised | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,421,000 | 3,799,000 | 9,566,000 | 8,192,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount payable to related party | ' | 19,789,000 | 55,743,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 831,000 | ' | 831,000 | ' | 1,211,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments to purchase from NagraStar | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,337,000 | ' | 6,337,000 | ' | 5,874,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal tax benefits reflected as a deferred tax asset for depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net amount of the allocated tax attributes receivable | ' | 90,356,000 | 89,811,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of the $300 million initial settlement agreement payment paid by EchoStar | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial settlement amount paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate of six annual installment amounts between 2012 and 2017 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement, number of annual installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated percentage of annual future payments payable by EchoStar | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Digital set-top boxes and related accessories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,006,000 | 10,459,000 | 25,405,000 | 25,852,000 | ' | ' | ' | ' | ' | ' | ' |
Sales of satellite services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,837,000 | 6,180,000 | 11,674,000 | 10,967,000 | ' | ' | ' | ' | ' | ' | ' |
Uplink services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,510,000 | 1,676,000 | 3,215,000 | 3,155,000 | ' | ' | ' | ' | ' | ' | ' |
Other services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000 | ' | 18,000 | ' | ' | ' | ' | ' | ' | ' |
Amount receivable from related party | ' | 318,351,000 | 355,135,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,327,000 | ' | 11,327,000 | ' | 3,506,000 | ' | ' | ' | ' | ' | ' |
Revenue recognized from equipment and services provided to related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000 | 500,000 | 1,700,000 | 900,000 | ' | ' |
Receivables from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000,000 | ' | $1,000,000 | ' | $1,100,000 | ' |